Understanding Nikes Marketing Channels Essay

Total Length: 2164 words ( 7 double-spaced pages)

Total Sources: 4

Page 1 of 7

Introduction



Nike is a world known company which deals and supplies footwear, accessories clothes and equipment to different clients. The company also offers services and marketing to many countries around the globe. It has more than 1400 opened stores in different countries (Kreng & Wang, 2013). Nike is also the biggest distributor of sports garments to many athletes. The National Basketball Association has signed a contract with Nike to be providing basketball jerseys to more than thirty teams.

Basic configurations, Flow of Products and Typical Participants



As a retailer, Nike’s management ensures that it has established a successful basic configuration of the firm. The basic arrangement of the company ensures that it has defined its goals and targets. In this case, it is important for every company to define their codes that can help improve the organization’s performance. Besides, Nike usually has a basic configuration on each of its stores by ensuring that their products are upgraded appropriately. The flow production of Nike ensures that there are new brands in the market after an interval of some time. In other words, when an item has been introduced in the market, it does not take long before a new item is introduced. It takes a short period for the company to market its product since it uses effective ways to advertise their services and products.

The Influential Channel Participants



Just like other companies, Nike has a specific strategy of how it uses different channels to distribute its products and services. Therefore, it uses three channels that help in the distribution of their goods to people in various global locations. Nike acts as a producer, which is considered to be among the three channels. With its production role, f the company distributes goods to other outlets and individuals. The second channel is the retailer who receives products from the company then they distribute it to local stores followed by teh consumers.



Besides the three channels, Nike also uses the selective distribution to channel its products. Based on the selective distribution, the company can be found in many places that match the needs of their targeted customers. Their various stores usually cater and serve the customers’ interests regarding the clothes and shoe design. Therefore, the retail stores are easily accessible for any client who wants to purchase any product from the Nike Company. From the selective distribution, Nike stores are not available in most places, and neither are they limited.

The Role of Marketing Channel



The producers and manufacturers are among the influential channel patterns that help distribute goods for the Nike Corporation. The producers and manufacturers try to avail the Nike products to different customers who are acknowledged as the consumers. In this case, the producers and manufacturers are responsible for distributing goods to consumers who are located in different places (Zentes, Morschett, Schramm-Klein, 2016). It is also the work of the producers and manufacturers to offer safety guidelines on the products produced. Hence, the product and manufacturer channel pattern are responsible for the above factors in the Nike Corporation.



In contrast, the retail intermediaries of Nike act as the connectors among the consumers, producers, and distributors. They help distribute the company’s products and services without taking full possession of the goods.

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They are considered to be the ‘go-betweens’ in any transaction which takes place between producers and distributors. The wholesaler intermediaries are also considered part of the channel patters of the Nike Corporation (Watson, Worm, Palmatier & Ganesan, 2015). Just like the retail intermediaries, the wholesalers also act as links that provide products to the distributors. Additionally, they also help the goods and services move between the retailers and producers. In other cases, the wholesale intermediaries can offer transport services to the consumers. They ensure that goods have reached on time at different destinations to be purchased by the consumers.

The Environmental Scanning of Nike Corporation



The environmental scanning of Nike comprises of the market target, distribution, social responsibility, and culture. Based on an internal assessment conducted in the organization, the targeted groups are both male and female individuals aged between 18 to 35 years. The groups is considered as the targeted group of the company since they are in their prime ages of being fashionable. The company ends up offering stylish shoes, clothes, and accessories to the clients. At times, customers can have their clothes customised under the same Nike brand. The company also has many models and endorsers who market and promote their products.



The CEO of Nike is a former athlete who used to compete in the long-distance run. Thus, this factor displays how the top management values their customers by ensuring that they offer quality products and services. The company also provides a friendly relationship between their workers and clients. They ensure that clients are provided with quality products that reach on time based on the customers’ preferences. Nike has also improved its image by funding many programs and small organizations. In return, the company’s social responsibility is placed at a high level due to its good image. The company has also been recognized at many local and international levels due to the good reputation.



The demographic changes can end up affecting the marketing operation of Nike Corporation. Demographic changes such as age and income can end up affecting the market strategy of the organization. The age segmentation appeals to various groups of people since they have different taste of design. Hence, Nike’s products are likely to appeal and attract young people who seem to be stylish and love designer clothes. The under 30s are considered focus more on their fashion statement and preferences. They always purchase designer clothes, latest phones, and technological equipment. Therefore, Nike considers the age factor when producing, marketing, and distributing its products.



Income is another factor that can result in marketing changes in Nike Corporation. Income is considered to affect the business operations of the organization. Individuals with high income are usually appealed with fashionable clothes. They direct most of their income on stylish high-end products. However, people with low income tend to be sensitive on what amount they spend on buying clothes (Zentes, Morschett, Schramm-Klein, 2016). Therefore, they always opt to purchase clothes….....

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References

Kreng, V. B., & Wang, B. J. (2013). An innovation diffusion of successive generations by system dynamics—An empirical study of Nike Golf Company. Technological Forecasting and Social Change, 80(1), 77-87.

Watson, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of marketing channels: trends and research directions. Journal of Retailing, 91(4), 546-568.

Zentes, J., Morschett, D., Schramm-Klein H. (2016). Strategic Retail Management: Text and International Cases. New York NY: Springer

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