Identify 3 or 4 Marketing Challenges Covered in This Subject and Address How These Challenges Can Be Met Using Principles Learned in This Subject

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1. Introduction This paper is based on Emily Ross and Angus Holland’s story about Nike Inc in their book, “100 Great Business and the Minds Behind Them”. The story, Nike – the art of selling air is analysed identifying marketing flaws that led to turbulent times in Nike’s history. Using principles learnt from the strategic marketing subject, suggestions are made as to how these challenges could have been avoided using strategic marketing principles. In the global village characterising the world today, one of the greatest challenges for companies is competing against rivals from all over the world for a reasonable share of the market enough to run profitable businesses. Marketing is one critical tool that companies can use to sustain a competitive advantage. There has been so much debate over the years regarding what marketing is. From the literature gone through, the following definition was adopted as the one that most appropriately defines marketing: The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand, by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. (Chartered Institute of Marketing cited in Gilligan & Wilson 2009). There is a strong emphasis on customer and competitor focus. 2. Nike – the legacy Nike is one of the world’s largest designers, marketers and distributors of athletic footwear, apparel, equipment and accessories for a variety of sports and fitness activities (MarketLine 2014). Headquartered in Beaverton, Oregon, the company employs about 48 000 people across the world (MarketLine 2014). Nike recorded revenues of 25.3million in the financial year ended May 2013 with an operating profit of about US$3.3million. The attractive financials discussed above are a stark contrast of Nike’s humble beginnings. The

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