Professional Documents
Culture Documents
• Motivation
• Perception
• Learning
• Beliefs and Attitudes
Social factors
• Social factors also cast a significant influence on the consumer’s buying
behavior. Some of the primary social factors are family and roles and
status. For the social factor of family, a family member can influence the
other family member buying behavior. For example, the children of the
family want to have or want to buy the NIKE shoes, the father or mother
will try to buy for the children to fulfill the satisfy.
Pricing Strategies
• Value based priceing strategy of nike
This pricing stratergy of nike as they can know about its product`s value
amongst the customers and the company started to get profit and prices of its
merchandise started to rise
• Nike price leadership strategy
nike determine its product value and compare it to competitive prices and set
attractive prices for different market segments accoding to its market dominance
Premium Pricing strategy
• Nike applies the premium pricing strategy to make its product`s prices
higher than the prices of the compititors based on product quality.
Nike skimming procing strategy
normally nike shoes last for 3-6 months when the company sells those at
peak prices after that period there comes an activity called closeout where
nike reduces the prices gradually.
Introduction stage
When nike launchnew shoes
Advertise a lot
Set high prices from $150-$200 or may be more
With more advertisement they get more money
Growth stage
More customers buy the product
Price gradually increase
But customers still satisfied with quality
In this way company gets more income
Maturity stage
When nike shoes stay out for a while in shelves
They don’t sell like the initial stage of product
But they still brought by customers satisfaction
Decline stage
As shoes stay out for a while and new shoes are realesed these shoes
aren’t really bought anymore and the price will go really low to try to get
some money from them but most customers aren’t interested.
Product Market Expansion Grid
• The product market expansion grid, also called the ansoff matrix, is a
tool used to develop business growth strategies by examining the
relationship between new and existing products, new and
existing markets
Strategies for Growth and Downsizing
Nike’s secondary intensive growth strategy is market penetration. In this
strategy, the company grows by increasing sales revenues in existing
markets.
Example
• Emerging Markets
• Innovative Products
• Efficient Integration
Threats
• Increased competitive pressure
• Marketing Budget Pressure
• Currency Foreign Exchange Risks
Marketing Channels
• By selling products to wholesalers in the US and international markets
• By direct-to-consumer (or DTC) sales, which include in line and factory
retail outlets (see graph below) and e-commerce sales through
www.nike.com
• Sales to global brand divisions