In addition, Nike products can also be sold cheaply and with its mass production benefits, Nike positioned The Promise and Perils of Globalization: the case of Nike 3 itself strategically enough to meet global demand. As stated by Hill, (2007) “Nike enhanced the productive capacity to meet the rising demand, hence; satisfying the customers’ needs.” The positive and negative impacts of this
PESTEL analysis is a model in marketing principles. It is used as an instrument by companies to track the environment they’re operating in or are planning to launch a new project or product. PESTEL stands for Political, Economical, Socio-Cultural, Technological, Environmental and Legal, which are going to be analyzed in this section. Political Factors The Chinese political framework represented by one-party communist dictatorship, creates an unbelievable engagement to the national strength.
This promotion tactic allows Oakley to sell their sunglasses for more because they are providing the customer exactly what they request and because the specific pair the consumer wants is not mass produced. Oakley also has premium placement on different retailer sites, but so do other high end sunglasses brands such as Ray-Bans. However, Oakley’s are recognized for their outstanding quality and are actually cheaper than Ray-Bans, which gives them a chance to capture more of the market share. Oakley also relies on word of mouth marketing from consumers who believe in the brand and feel that they are the best quality sunglasses on the market. Nike also utilizes the promotion tactic of being able to design and order a unique pair of tennis shoes that fits different people’s tastes online.
Consequently, Nike’s pricing is intended to be economical and competitive to the other sport gear retailers. The pricing is built upon many factors that have been taken into consideration before setting a selling price on the root of the high-class segment as target customers. Nike as a brand orders high premiums. Nike’s pricing strategy makes use of perpendicular amalgamation in pricing in which they target participants with different channel levels or take part in more than one type of channel level operations. This can govern costs and effect product
A person bought payed more to get a product with a brand name. Even though it was more expensive, it was worth it. “Is It Worth It”, by Scholastic Scope, examines the controversy of whether it is worth to pay more for brand names. Designer brands are worth purchasing because it makes a person feel where he or she belongs. First of all, wearing brand name labels makes a person feel like he or she belongs.
Before entering an unknown product horizon, the company will investigate its viability in the product category as well as measure its competitive advantage to other companies in the niche. Under Armour’s unique ability to measure these two important factors has allowed it to create a product base which consumers have high loyalty towards. The Under Armour brand has positioned itself in the high quality, high price, and best available in the market, category. It advertises itself as delivering higher customer value and is therefore capable of charging higher prices for their goods.
Basically in the long run the sales promotion is positive for top line performance but it is negative for bottom line performance and firm’s value. This proves the fact that impact of sales promotion on the value of the firm is not in the long run, but in the short run it has positive impact on the profitability of the firm. Consumer Promotion Consumer promotion is a category of sales promotion including free samples, wining contests, different price packs, and sweep stakes. Sales promotion is projected to increase the sales of final ultimate consumers of the product (Kotler and Armstrong, 2002).The kinds of sales promotion are based on some sort of benefit whereas some are very communicative in type (Kotler et al. 1999: Tellis 1998).
If the production or the delivery is faster than your competitors, customers will prefer you over your rivals. Next is the Theory of Cost, the cost-effectiveness of a product or service you render is a very important determining factor in the school of internet marketing (Chijoke, 2007b). People like affordable products, therefore as a business owner, your goods and services must be cheaper than your competitors. And lastly, in the Theory of Quality, customers will choose high-quality products even it's costly, hence if you are expecting for high sales, products and services must have a higher quality than the products of your rivals. With such factors be put into importance, reviews of customers posted online may lead to positive remarks and may encourage other prospects and social media users to try the product and trust the business, even without first-hand
The major customers are the ones who are status conscious may purchase higher priced goods for prestige. Designer labels and other luxury goods are used as strategies by these companies. Now, this creates the drive to buy goods even at higher rates. Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy.