lindah prof rewriting work

2017

Promotion and the Product Life Cycle

Nike has developed a product life-cycle and promotion product strategy for its sportswear apparel. The four stages of the product life-cycle are broadly explained. A table is included briefly identifying changes within the product marketing mix. Metrics are discussed for measuring marketing activities success or failure. A media print and non-print method are outlined. Finally, product promotion elements are addressed.

Product Life Cycle

Introduction

New product introduction is the first stage in product life-cycle. Introduced sportswear products will impose initial lower sales numbers since the product is new and unproven, costly consumer prices to cover research and development costs, limited revenue until sales increase, and minimal competitors until the product becomes popular. Nike will induct its new sportswear products domestic and global when the time is right for the targeted market and consumers. “A product mix consists of various product lines” (Kotler & Keller, 2016, p. 380). Nike will also stress the product promotion during this stage to increase customer awareness and interest.

Growth

The second stage in the product life-cycle is growth. Introduced products at this point are either catching on or not. Products that are successful see sales numbers constantly increase, consumer prices paid reduced slightly, return on investment is positively adding up, and competitors begin producing similar products. Nike realizes that when the growth stage is prosperous that the product is accepted and building its brand. During this stage, Nike expresses its product differentiation to enhance branding and create competitive advantage.

Maturity

The third stage of the product life-cycle is maturity. At this life-cycle stage the products are now hitting sales highs; consumer cost is reasonably low and affordable by many, profits have hit its plateau, and competitors that are competing have leveled out, and no one is conducting reverse engineering any longer. At this is the point, Nike reaps what it sows, proves customer value, signs up loyalist, and focuses on longevity. Nike is also back to the drawing board to improve or produce new through innovation.

Decline

The final stage of the product life-cycle yields constant reduced sales, customer costs for a product is super low, company revenue is on the downslope, and competitors stop competing and pull the plug on the product. Nike evaluates the product with scrutiny during this stage and decides whether or not to retain or pull from the shelf. Just because the product has declined does not necessarily means its service life is over. Loyalist and those that can now afford the product may require its demand in low rate production. “These models estimate repeat purchase according to the product's lifetime statistics. For other products, repeat purchase is motivated by the launch of versions of the product that had not previously been available in the market and improved as a result of technological progress” (Orbach & Fruchter, 2014, p. 38).

“There is no single “magic bullet” metric for measuring marketing effectiveness” (Brooks & Simkin, 2012. p. 494). With that said, it must also be understood that “Marketing without results is just noise; Data without action has no value” (Hollinden, 2017, p. 61). Some of the common but not limited metrics Nike uses to measure marketing activities are product sales, return on investment, customer satisfaction, consumer value, etc. Other ways of success or failure measurements Nike uses is customer surveys, industry standings, and the balanced scorecard. Nike completes the balanced scorecard because it is a performance metric tool that is useful for identifying winning concepts and losing shortfalls.

Media Methods

One media method Nike uses is print. Nike produces sportswear ads that are printed in various athletic-related and social magazines. These ads attempt to catch the attention and interest of readers and enthusiasts in Nike products. Usually, a coupon is offered for product purchases. Another media method Nike uses is non-print digital media. Nike website is open to the public to rate products and post responses. Nike tracks visitors and responders, and everyone is offered a percentage off for product purchase.

Product and Promotion

Push and Pull

Nike will use the push strategy to entice retailers to sell their products by offering them incentives for sales achieved. Nike’s pull strategy consists of advertising and branding to get consumers to shop in their factory stores.

Direct Marketing

Nike directly markets its sportswear apparel with a huge campaign focus revolved around the online shopper. Nike also uses print media to directly market its product brand, value and ways of purchase to consumers abroad without leaving work or home.

Positioning

Nike offers a huge branding product mix of sportswear appealing to any and every one. Nike has almost 1000 factory and retail outlet stores domestic and abroad and is simultaneously maximizing the online sales efforts. Product warehouses are strategically located to support in shop inventory and online orders.

Conclusion

Nike has now compiled its robust sportswear apparel product strategy. The product life-cycle and marketing mix stages are covered spelling how the products will be strategized from conception to retirement. Nike has also developed detailed metrics to measure and document its products successes and failures. Nike will adhere to lessons learned from the market industry and individual product results. Also, Nike had chosen its two media methods for promoting its products and believes this will provide the largest dissemination and brand awareness. Finally, Nike fully supports its product promotions using different but focused strategies.

References

Brooks, N., & Simkin, L. (2012). Judging marketing mix effectiveness. Marketing Intelligence & Planning, 30(5), 494-514. doi:10.1108/02634501211251025. Retrieved from The University of Phoenix Library.

Hollinden, C. M. (2017). Measuring marketing the right way. Accounting Today, 31(9), 61-62. Retrieved from The University of Phoenix Library.

Kotler, P. & Keller, K. L. (2016). Marketing Management (15th ed.). Retrieved from The University of Phoenix eBook Collection database.

Orbach, Y., & Fruchter, G. E. (2014). Predicting product life cycle patterns. Marketing Letters, 25(1), 37-52. doi:10.1007/s11002-013-9239-0. Retrieved from The University of Phoenix Library.