P1: is unnecessary that Nike must change their

P1: describe how marketing techniques are
used to market products in two organizations.

 

 

For this essay, I will be discussing how market techniques
are used to market products in both of my organizations which are Nike and Burger
King.

 

Nike is a multinational corporation that specializes in
design of sports apparel. It was founded by Phil Knight and Bill Bowerman in
1964 and has been a crucial player in the sports industry.

 

Burger King is an international Fast Food establishment started
in 1953 by James Mclamore and David Edgerton. The fast food chain has over
15,000 locations worldwide, making it one of the largest Fast Food chains in
the world.

 

Nike & Burger King both use various marketing strategies
when marketing their products such as diversification, market penetration,
product development or market development. These strategies are more commonly
known as growth strategies. Growth strategies are any marketing strategy with
the purpose of building a larger market share.

 

Market Penetration:

 

Nike uses market penetration to achieve growth with their
current products in their existing market segment, with hopes of increasing
their market share. Nike would use this to market specific products, such as
the Air Jordan. The Air Jordans is a brand of basketball shoes produced by Nike,
it was first created for legendary basketball player, Michael Jordan.

 

The Air Jordans were introduced 1984 and have been a huge
success since. Nike would use market penetration when aiming to get a larger
market share with their Air Jordans. The reason for penetrating into new
markets is to increase customers and profits. To penetrate a market, Nike would
increase manufacturing and promotion on the product they wish to sell, allowing
them to appeal to a larger number of consumers. It is unnecessary that Nike
must change their product when penetrating a new market, instead the product is
either sold cheaper or further endorsed.

 

The Air Jordans were in immense demand due to the fact that
it was endorsed by Michael Jordan, it became available to the market but was
sold at extremely high prices. Soon, demand dropped, and Nike decided to use
the strategy, market penetration, to sell more. They dropped the prices and
immediately sales went right back up and profits increased.

 

Burger King would also use market penetration in a similar
manner, a lot of their products are heavily endorsed by celebrities in movies
which has immensely helped them grow their shares in the market and increase
profits. Burger King used Market penetration as a means of marketing the
Whopper. The whopper is a signature sandwich, introduced in 1957.

 

Their burgers were in heavy demand due to their immense
advertising and endorsements. Their main competitor at the time was McDonald’s
McDLT, which was also in rising demand, and they had to do something to be able
to remain profitable. To increase their sales and attract customers, the
Whopper reduced in price and was able to penetrate the competitive market.

Diversification

 

 

Nike uses diversification to achieve growth with newer
products in new markets. It is a form of expansion, as a new product line and
market are added. The sports market has a wide variety of interests and needs
that major corporations have to cater to. An example of this is Nike’s Tanjun
Shoes, these shoes were initially released to cater to a whole new market.

 

The shoes incorporate a more casual style and feel compared
to Nike’s lineup prior to its release. It was also made as premium wear, that
brought both casual wear and sports-wear closer to each other.

 

The reason behind diversifying product lines, is simply to
cater to a whole new market. By doing this, Nike are able to grow their
customer base, which upturns their overall profits too.

 

Burger king also uses diversification in a similar fashion
to help them achieve growth and increase their customer base. The fast food
market keeps evolving to cater to the consumer’s needs. It is considered one of
the most competitive markets due to its constant evolution.

 

Diversification is one of the most
suitable marketing techniques to gaining a larger customer base. When Burger
King announced their Veggie Royal they immediately saw a shift in the response
from consumers. Through the announcement of the Veggie Royal they were able to
provide options for the vegetarian consumers which saw a huge increase in their
consumer base as well as their profits.

 

Market Development:

 

Market development is used by Nike to target existing
products to new market segments or untapped markets. This marketing strategy
helps organizations significantly expand their market share. Businesses like
Nike split the market into 4 criteria; existing customers, competitor’s customers,
non-buying customers in their current segment, as well as new segments

 

These 4 criteria help Nike focus on the separate groups they
wish to cater to. To target existing customers, they provide a wider variety of
shoes according to customers’ needs and demands, this keeps existing customers
loyal to their business. To target competitor’s customers, Nike offer
promotions or discounts on products to improve their sales against companies like
Adidas. To target Non-Buying customers and segments, they improve their pricing
policies as a means to attract their untapped customers to their existing
products.

 

The strategy is also used by Burger King in a similar
manner. To target their existing customers Burger King would offer a different
set of menus, similar to Nike, this helps build customer loyalty, as customers
are given more variety to choose from. To target their competitor’s customers,
they offer discounted menus such as the Value Menu or similar products to
compete with competition, an example of this would be the BK fusion an ice
cream created to compete with McDonald’s Desert Menu, specifically their McFlurry.

To target Non-buying customers and New segments, they take part in a lot of
market research to understand lifestyle changes or trends to help cater to. An
example of this would be in the UAE, portions are preferred relatively smaller
than the large portions offered in places like the USA. Burger King had reduced
their portions and offered less patty or smaller buns in their burgers to cater
to the new segments or non-buying customers in the UAE.

 

 

                                                        Product
Development

 

Product development is the process or steps of creating a
new product, this includes conceptualization of the product, its design, as
well as the marketing steps. Nike are constantly developing products as it is
essential that they maintain their reach and consumer base. By constantly
developing new products, Nike are able to have a more loyal consumer base,
hence it is considered a crucial business process.

 

Product development also includes the process of improving
their existing products, Nike are constantly looking for ways to improve their
product line. Air Jordans are a pair of shoes that are constantly revamped and
improved for the target market. The Air Jordans are released almost yearly,
each with a new and improved look. From the Air Jordan 1 to the latest Air
Jordans, it is easy to notice that this product is being constantly remade to
fit the demands.

 

 Nike also use product
development to target untapped markets within the sectors they already operate
in, without having to come out with completely new products. It is a simpler
method of growing the consumer base, yet it allows Nike to spend less time on
developing a whole new product from scratch.

 

Burger King have only operated within the food sector, yet
they always develop new products or improve their existing products to help
cater to their consumer’s needs. The whopper has been recreated many times, and
is now a part of a wider variety as opposed to remaining solely a burger.