It is final day! Many people are here already waiting for our professor. We are studying together to insure a good grade! It has been so much fun designing and working on the Nike Blog. I wish you guys will use the information I have posted to your advantage. It's going to stay on the Internet for a loooonnnngg time.
JUST DO IT!

posted from BlackBerry Curve.

Ch. 8- Segmenting and Targeting Markets

Market Segmentation, by definition, "is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups" it is definitely crucial for a business to target these groups because it helps decision makers accurately define marketing objectives and to better distribute the available resources.

Here I have severely severed and broken down the four basic criteria to have a useful and successful segmentation:
1. Substantiality : the segment must have enough potential buyers so there is more potential to have profits
2. Identifiability and Measurability : there needs to be enough data about the section that includes basics like how many or age ranges.
3. Accessibility : The target markets must be easy and available to contact
4. Responsiveness : one must know what their targets respond to. If you are trying to offer different price ranges to people who have one price level set, that would be irrelevant because they will not respond to different prices.



Segmentation Variables is when characteristics of individuals, groups, or organizations are used to divide a total market into segments. 

• Geography : by region of a country or the world, market size, market density, or climate.
• Demographics: with age, gender, income, ethnic, family life cycle

• Psychographic: personality, motives, lifestyles, geodemographics

• Benefits: the process of grouping customers into market segments according to the benefits they seek from the product
• Usage-Rate: divides a market by the amount of product bought or consumed.

Ch. 11 - Developing and Managing Products CONTINUED:new product development

I wanted to include this in my blog too because I think it was very interesting to read and it could be useful to aspiring business owners.
There are 7 steps in the New-Product Development Process.

1. New Product Strategy: links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
2. Idea Generation: This can come from a lot of sources, not only management, includes (customers, employees, distributers, competitors, vendors, research and development, and consultants)
3. Idea Screening: this eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some other reason.
4. Business Analysis: where preliminary figures for demand, cost, sales, and profitability are calculated.
5. Development: the stage in the product development process in which a prototype is developed and a marketing strategy is outlined. This can last a loooooooong time and/or be expensive.
6. Test Marketing: the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. This is a difficult task because you have to pick a location or people that best demonstrated the businesses target market. And it could be a huge problem if somehow the media get a hold of the concepts which can lead to competition reacting quickly.

Justin Timberlake. Thank You.

7. Commercialization: the decision to market a product. Many tasks are involve with this. like ordering production materials, training sales force, and advertising to potential customers.

Lets Give MKTG 3 a Round of Applause! For all of this great Information!
Click here to buy 336 Pages of Greatness

NO WAY.... NIKE WILL BE.......

THE OFFICIAL OUTFITTER FOR THE NFL!

once Reebok's contract expires Nike will supply all the profession teams with their slick and modern jerseys. I love how they are revolutionizing the jerseys into a "era" I can not wait to be sitting on the couch on a Sunday afternoon and seeing the cool mix matching of colors they use. Touchdown for Nike!

Link:another bloggers perspective

My Favorite Football Team. Look how cool the design on the shoulders look!

Nike, as the market share leader, will continue their successes with the jerseys and their brand will be further cemented into our heads! JUST DO IT!

Ch. 11 - Developing and Managing Products

New Products can be categorized in 6 different ways. It is not always just a brand new innovation that no one has seen before.
New-To-The-World Products
It is the products that create an entirely NEW market.

Apple's iPad revolutionized the technology sector by fusing their iPhone tech with their MacBook tech. This is something the world has never seen before. Unfortunately, my marketing teacher, Professor Evans will not be getting one of these for Christmas..... :( haha jk.

New Product Lines

A new product that a firm has not offered before and it enters a market that is in its maturity stage. 

So for example, when Nike Cologne was introduced in 1991. It was a new product they have never offered before and it was just widening their product mix.

The other four are: Additions to Existing Product Lines, Improvements or Revisions of Existing Products, Repositioned Products, and Lower-Priced Products.

According to a management consulting firm, Booz, Allen, & Hamilton, they concluded that "the companies most likely to succeed in developing and introducing new products are those that take the following actions:

• Make the long-term commitment needed to support innovation and new-product development.
• Use a company-specific approach, driven by corporate objectives and strategies, with a well-defined new-product strategy at its core
• Capitalize on experience to achieve and maintain competitive advantage
• Establish an environment- a management style, organizational structure, and degree of top management support- conducive to achieving company specific new-product and corporate objectives.

I wanted to share this you guys because recently I've been getting a lot of hits from people who are googling "succeed with marketing" or "managing advertising" So I'm sure this can help a lot people get some more insight on how to continue the development of their companies.

Ch. 21 - Customer Relationship Management

According to the MKTG 3 textbook, Customer Relationship Management (CRM) is a "company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups." which means that a company uses its marketing techniques to solely focus on specific groups instead of just planning a marketing strategy that targets a large mass without any certain direction.  I love the example that is used in the textbook. It helps demonstrate what CRM is.

Rifle Approach targets communicating with each INDIVIDUAL customer

Shotgun Approach  scatters messages to whole SPECTRUM of people with mass media

Basically it starts with a single customer. You gather information through many means and any information is helpful. This is vital because 80 percent of a company's revenue is generated by 20 percent of its customer. So every single contact or customer is important to the business. Knowing what they think and getting some kind of information about target markets, it is easier to put out a product that they will like.

Companies now a days have FACEBOOK, which has over half a BILLION users. There is so much information on there that could reveal a lot of things to businesses. 

Ch. 16 - Integrated Marketing Communications

Promotion Promotion Promotion! (no I didn't get a promotion...)

Promotional Strategy is an integral part of the marketing strategy for reaching the target market!

There are 4 keys to the promotional mix(strategy). Advertising, Public Relations, Sales Promotion, and Personal Selling. Hmmm... does Nike do this effectively....? Dumb question, I Know.. OF COURSE!

Advertising.

Advertising is most commonly used through "transistional media (mktg 3)" such as TV, radio, newspapers, magazines, books, direct mail, billboards. These modes are used because they are using advertising as a way to communicate with large amounts of people, to keep their brand fresh in their minds. Lets See how Nike effectively uses Advertisements. 

TV.

This TV advertisement is from Australia during the Sydney Olympics. By using athletes from different sports, it interests different people depending on what sport they follow or know. Talk about communicating to a large number of people!

BILLBOARD

This is in Tokyo... I'm preeeeeety sure a large amount of people are going to see it... dontcha think?

Public Relations.
Public Relations is used to create a positive public image to your desired target market. Since Nike has such a wide target as a whole, they use Public Relations effectively to promote the whole Nike brand, not just certain items or product lines.

To gain even more of a positive image, Nike holds "Nike Sparq Training Camps" at select areas around the nation where they have professional coaches and they have drills for people to do. At the end athletes get their SPARQ Rating. It is a measure of athleticness... and its FREE as long as you can get there. Also, with your rating, you can compare with other athletes around the nation. I NEEEEED to go to one of these! I consider myself a pretty athletic guy. In high school I played soccer track and cross country. I would have done Basketball or Football if I could.

Sales Promotion.
 This stimulates consumer purchasing and dealer effectiveness. I usually don't hear much about Nike sales promotions. However, I do love when Nike has contests on nike.com where you can win free Nike gear. A couple years ago, I won a free deck of Lebron James playing cards because of a Search and Win Game where you had a list of things to find in an animated Lebron James house. I googled nike sales promotions and I discovered various websites offering Nike coupons that can be very useful especially during this time of the year.
LINK: http://www.dealtaker.com/Nike-coupon-code-a2153-c.html

Personal Selling.
This is usually when there are sales people trying to sell you a good or service. The only time I know when Nike sales people help the usually customer is when we  ask for assistance in their retail store and then the employee tells us everything about the product. I assume that Nike has salespeople who market their brand on a larger scale, for example , the University of Oregon.

Example why it is IMPORTANT to TRADEMARK

BREAKING NEWS FROM IMPERIAL VALLEY NEWS...
(this is really good timing for my last blog post about trademarks and branding! muah ha ha)


The U.S. Immigration and Customs Enforcement seized "16,171 pieces of counterfeit merchandise, 3 DVD burners, and a 2006 Nissan Titan truck worth a total of $256,171. Additionally, 4,572 pieces of counterfeit merchandise worth $59,000 were abandoned during the operation and turned over to on-site trademark representatives."


Counterfeit trademarks included Ray Ban, Polo, and NIKE! This was at a Flee Market in New Orleans. I'm assuming that more flee markets around the nation will start to be investigated because fakes cost businesses like Nike "billions of dollars" 
LINK : http://imperialvalleynews.com/index.php?option=com_content&task=view&id=8898&Itemid=2


I Googled "fake nike" and these funny pictures popped up.

Los Angeles Lakers Meet Barack Obama!

President Obama and Kobe Bryant

This is AWESOME! My favorite team, my favorite player (Kobe) meeting the president once again at a Boys and Girls Club event. This is why soooooooo many either ENVY the Lakers or LOVE the Lakers. I'm a proud Laker Fan!
Check out the rest of the photo gallery of the Lakers appearance with the President at the Boys & Girls Club of Greater Washington. 
http://www.nba.com/lakers/photogallery/1011lakersmeetobama.html_1.html

"O" reveals her Favorite Things.

Billionaire and talk host queen, Oprah Winfrey, revealed on her show on November 19th, that Nike is on of her most favorite things!

Sarah Wasserman from schaeffersresearch.com revealed to us that since then, the shares of Nike have risen considerably. For example, "Free Run+ shoes were featured as one of Oprah's Favorite Things. NKE has been hot on the charts lately, too, surging to a fresh all-time high of $90.52 today. This technical feat continues a recent trend for NKE, as the shares have been rallying to record highs since October."

yeah thats right Oprah. WOOT WOOT! Put Your Hands Up in the AIR!

link: OPRAH PUMPS UP NIKE STOCK

Ch. 4 - The Marketing Environment

The Marketing Environment is broke up into many many different categories. The goal of marketers is to identify future market opportunities and threats by gathering environmental data.
One way to group the target market, is by demographic factors.
Tweens (ages from 8-14) 29 million consumers

Generation Y (born between 1979 - 1994) 60 million consumers

High School Musical Cast

Generation X (born between 1965 - 1978) 40 million consumers

Tia and Tamera mowry (sister, sister)

KOBE!

Baby Boomers (born between 1946 - 1964) 77 million consumers

George W. Bush, Barack Obama, Bill Clinton = Baby Boomer

Marketers also have to consider the rising number of ethnic markets. According to the MKTG3 text, "in 2008, Hispanics wielded more that $1 Trillion in spending power; African Americans' spending topped $921 billion; and Asian Americans' spending power soared to $526 billion. Currently Hispanics account for about 14 percent of the US population and it is speculated to increase to 25% percent in 2050. So with that knowledge, marketers know that there is a big load of money that is to be made by targeting the hispanics. For example, the increasing number of Latin American TV stations shown throughout the United States.