Introduction
The management decision facing Nike is whether the company should continue promoting its sportswear using product-based advertisements that it used to undertake or whether it should stick to the new mode of advertisement that is more focussed on product innovation. This new mode of marketing has forced Nike to stop using famous celebrities to market its brand but instead opt for consumer-focussed advertisements. Furthermore, the new approach is giving Reebok and Adidas a cutting edge over Nike since they are now focussing on the product-based advertisement which is proving to be a success in comparison to Nike’s new innovation-based advertising.
Analysis
More so, another management decision facing Nike is venturing into the international arena so as to continue enjoying market leadership and at the same time increase sales. Nike sales have to a large extent from the domestic arena which is the United States and venturing into the international arena may prove costly since the company risks losing its domestic consumer base.
The marketing research problem facing Nike has lacked enough consumer feedback since if there was enough feedback from consumers Nike would be able to determine what the consumers really want instead of second-guessing. For instance, a reason some consumers are becoming less enthralled with Nike products is their more than $100 price per product while the competitors are offering their products at lesser prices.
Thus, Nike is just focussing on changing the type of marketing as well as planning on venturing into the international market before solving the main problem which is price related. Thus, Nike should try and find out why the competitors are still using product-based marketing advertisements and yet they are still recording a success. The answer could lie in the cost of their products (Bradley, 2011).
Does the new marketing method that is based on innovativeness meet the consumers’ desire? Is the decision to venture into the international market prudent or can it harm the domestic market? These are some of the research questions that Nike marketing and research team should focus on before making a decision. Thus, the hypothesis from the above research questions can be that the new marketing method based on innovativeness will meet the consumers’ desire in the long run, and thus Nike should continue putting more effort to ensure its success. The other hypothesis is that venturing into an international market will not harm the domestic consumers, but will serve to promote the company’s international image and thus reinforce the domestic market.
The internet is an invaluable tool nowadays since it is easily accessible. Nike can use the internet to help bolster its market research by creating a means by which its consumers, as well as potential customers, are able to send them feedback. This feedback should be in terms of the durability of their products, the effectiveness of their marketing advertisements, the affordability of their products as well as the performance of the competitors’ products in the market (Young, 2010). Such a system can be achieved using social media or simply creating an email account where customers are able to freely interact with their marketing research team.
Conclusion
In conclusion, proper market research will ensure that the management makes the right decisions that are able to counter the effects of the competitors while at the same time ensuring that Nike maintains its market leadership position.
References
Bradley, N. (2011). Marketing Research Tools and Techniques. Oxford, UK: Oxford University Press.
Young, E. (2010). The Advertising Handbook. Seattle, WA: McGraw Hill.