PROMOTIONAL & ADVERTISING STRATEGIES 9
Promotional& Advertising Strategies
Promotionaland advertising strategies have become exceedingly significant tobusinesses since they help a business in attracting customers towardsa certain brand. Consumer-oriented promotional strategies have beenused by different businesses in ensuring that commodities or servicesbecome provided according to the unique needs of customers dependingon the different customer segments. These have helped businesses inensuring customer satisfaction, which is a critical element inenhancing revenues to the business. In this assignment, two companies(Nike and Adidas), which deals with sports apparel will be discussed.Marketing, pricing and consumer-oriented promotional strategies usedby these companies will be analyzed in the paper.
Thepromotional strategies that are used by Nike and Adidas are almostthe same. In their promotional strategies, the two companies haveensured that they utilize premium pricing strategy. In this case, thetwo companies charge a premium price for their products, which iscritical in maintaining competition in the sports apparel industry.Besides, the two companies use famous sportsmen from differentregions and feature them in commercials. These targets at makingcustomers associate with the sportswear of these two companies. Inaddition, the two companies use market segmentation in ensuring thatthey provide products that are in line with the needs of thecustomers. However, the two companies compares sin that Nike utilizesa vertical combination pricing technique such that they takeparticipants ownerships and engages in diverse channel levelfunctions in order to control prices. Furthermore, Nike distributesits products based on the number or level. High costs premiumapparels are given to certain distributors while products that arelowly priced are separated and sold at a discount at different retailstores.
Oneof the ways that a company like Nike can use marketing information indifferentiating itself in the marketplace and in gaining competitiveadvantage over the competitors entails using the market informationin separating amid the price ranges that customers are willing to payfor the sports apparel. Through obtaining this information, thecompany can produce sports apparel depending on the price thatcustomers are willing to pay. This implies that the sports apparelthat the company will produce will be in a position to go along withthe prices that customers propose. In this case, the company will becapable of producing and selling sports apparels that have differentprices in order to fit the customers’ needs. This way, the companywill be in a position to have a competitive advantage over its rivalssince it will be capable of offering the sports apparels at aconsiderable price, which will increase the customer base. Anotherway that the company can use the marketing information indifferentiating itself in the marketplace entails finding out thebest communication method that it can use in reaching its customers.Communication with customers is critical since it can help thecompany in obtaining feedbacks from customers, which can be utilizedin enhancing customer satisfaction (Kurtz,2012). Besides, through communication, customers can be in a positionto order and purchase the sports apparels at anytime, when they feelto do so. For example, the company can use the market information todecide whether communication through the company’s website iseffective. Such an effective communication tool can be used by thecompany in attaining a competitive advantage over the rivals in theapparel industry since the effective communication will help inkeeping customers close to the company operations.
Oneof the uses for customer-orientation promotional strategies isensuring that a quality product becomes developed, which appreciatesconsumers. Customer satisfaction emerges as one of the most criticalelements to any business since customer satisfaction ensures thatcustomers are retained in a business. Without customer satisfaction,it can be exceedingly difficult for customers to identify with acertain business since what most customers seek in a business issatisfaction. In case customers are not satisfied by the productsthat a given business provides, it is likely that customers will seekanother company where they can obtain satisfaction of the sameproducts (Hill & &Jones,2012). Developing a quality product that will appreciate the needs ofconsumers is critical for the company both short term and long runbecause, in the short run, it will help the company in winning thecustomers’ desires, which is critical in keeping them as part ofthe business. On the other hand, in the long run, customers will tendto identify with the company since they will have an understandingthat the company develops quality products. Therefore, in the longrun, customers will still identify with the company. Another use forthe customer-oriented promotional strategy is ensuring that a companyrespectively and promptly responds to customer queries andcomplaints. It is critical for a business to respond promptly tocustomer queries and complaints since it helps in showing customersthat the business cares about them this is crucial in ensuring thatcustomers remain loyal to the business. Responding to customerqueries and complaints promptly is of importance in the short andlong run. In the short run it helps in making customers satisfiedwith the products it offers, while in the long run, it helps inensuring customers identify with the business. Therefore, these arecritical in helping the business in the short and long run to buildcustomer base and have quality products.
Thereare different pricing objectives that a business dealing with thesports apparel may employ in its pricing strategy. Nikes emerges asthe leading company in the sports apparel in its pricing strategy,the company has incorporated different pricing objectives. Thepricing strategy that Nike uses entails premium pricing according tothe different segments in the market. One of the pricing objectivesemployed in this pricing strategy is that of maximizing short run andlong term profits. Rather than pricing its products exceedingly high,Nike settles on a premium price (Kaser &Oelkers,2008). Ensuring a premium price is critical as it ensures that mostof customers desiring to purchase the products of the company can doso comfortably. This implies that through the pricing strategy, thecompany is capable of making a high number of customers purchase theproducts. This is critical in maximizing the short term and long runprofits of the company. This emanates from the reasoning that, as thenumber of customers increase to purchase the products of the company,revenues increase leading to profit maximization. Thus, one of theprice objectives incorporated in the pricing strategy used by theNike Company. Besides, another price objective incorporated in thepricing strategy of the company entails increasing sales volume. Asthe price is set to be affordable to most of customers, it is likelythat more customers engage in purchasing the products of the company,which increases the sales volume of the company.
Othercompanies dealing with the sports apparels can take actions in anattempt to enhance their competitive advantage. One of the actionsthat other companies can embrace is changing their pricing strategy.The pricing strategy can be changed such that the companies setdifferent prices for the same product. For instance, the companiescan decide to have a low price for the less fortunate, a medium pricefor the middle income earners and a high price for individuals thatlove luxuries. Through such a consideration, the companies are likelyto gain competitive advantage since any customer will be in aposition to identify with them. Another action that other companiesdealing with sports apparels may take entails pricing their productsdepending on the different market segments. Through pricing theirproducts depending on the different market segments, the companiesare likely to gain competitive advantage because some segments mayidentify with the companies due to their prices.
Whenadvertising, it is crucial for a company to choose an effectiveadvertising medium, which is capable of appropriately advertising thecompany’s products, features, prices, and any other detail thatconsumers may desire to know. The most effective advertising mediumthat should be used by a company dealing with sports apparels is theinternet. The internet emerges as the most effective advertisingmedium because it is capable of reaching a lot of consumers of thesports apparel (Shimp,2010). Through using the internet, people that do not haveinformation concerning the company can access it regardless of theplace that the individual may be residing. This is because theinternet is almost everywhere in the globe. Besides, the internetemerges as the most effective advertisement medium because it ischeap and one can access information of the company at any giventime. Compared to other advertisement media, the internet emerges asa cheap medium because the cost of posting an advertisement that willreach a vast number is relatively low (Tellis,1997). On the other hand, it is possible to access the adverts of thecompany at any time provided one has an internet access. This impliesthat one can always connect to the internet to access any detailsthat he/she may require concerning the products sold by the sportsapparel companies.
Consumer-orientedpromotional strategies have been used by different businesses inensuring that commodities or services become provided according tothe unique needs of customers depending on the different customersegments. These have helped businesses in ensuring customersatisfaction, which is a critical element in enhancing revenues tothe business. In the sports apparel industry, different strategieshave been used by the companies operating in the industries. Ofimportance is the pricing strategy. The pricing strategy emerges as acritical aspect since it determines the number of consumers that canidentify with a company. The chief price objectives incorporated inthe pricing strategy of the leading company in the sports apparelinclude maximizing profits and enhancing the sales revenues. On theother hand, the internet emerges as the most effective advertisementmedium that can be used by a company dealing with sports apparel.This is because it is cheap, can reach a vast customers within ashort duration, and customers can access the advertisements at anytime.
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Kaser,K., & Oelkers, D. B. (2008). Sportsand entertainment marketing.Mason, Ohio: Thomson South-Western.
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Lamb,C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentialsof marketing.Mason, Ohio: South-Western Cengage Learning.
Shimp,T. A. (2010). Advertising,promotion, and other aspects of integrated marketing communications.Mason, Ohio: South-Western Cengage Learning.
Tellis,G. J. (1997). Advertisingand sales promotion strategy.Reading, Mass: Addison-Wesley.