Marketing is the administration course in charge of identifying, anticipating and satisfying customer wants successfully. (Own words)
• Smart water
• Breakfast Cereals
What is Marketing Techniques?
Marketing techniques are the tools used by the marketing division. The marketing division will set out to recognize the most suitable techniques to hire in order to make a profit.
Nike Branding Techniques
Nike has a feature on their website called Nike ID which allows the users to customise a shoe however they like for an additional fee nevertheless this is a great marketing technique as it could attract many people ages 10 and over as well as making them extra profit from the customise feature; furthermore, Nike has a satisfying website which people may be attracted to do as well as allow them to shop conveniently without leaving their homes.
On the other hand, Nike endorses through celebrities which some people may look up to, for example Kobe Bryant, Lebron James, Michael Jordan and many others, this is an effective way to promote a product as it could attract several new customers most of which are fans of the celebrity and some may even buy the products just to be like the celebrity therefore Nike seizes the opportunity to make profit.
Sony Branding Techniques
Sony is an electronics organisation which has many types of products that interest people, furthermore, the main product of Sony is the PlayStation 4 which has made over 10 million sales nevertheless the marketing techniques used to get this product into the hands of the customers are reward points, discounts etc.
What are reward points? Sony offers a Sony card or a PlayStation card; these are rewards card which allows customers to redeem points on gifts etc. but in order to get points people have to buy a Sony product.
On the other hand, the discount coupon program offers customers to buy Sony products such as a speaker, blue ray player, laptops etc. for either 25% to 50% less than the original price which then grabs then attention of many people and potential customers.
Another technique used by Sony is to have clean web pages, this attracts customers due to the attractive images of the products as well as including a convenient purchase where the customers does not need to get out of their home to purchase a products; Sony used the place section of the 4 P’s (product, place, promotion and price)
Nike Branding Limitations
The markets for trainers are very competitive as there are many other companies which Nike sees as threats, for example, Adidas, Fila, Puma etc. therefore Nike tries to be one step ahead of its competition to avoid losing money as well as be one of the top shoe brands.
Nike is unprotected to the international nature of trade as it buys and sells in many different types of currencies and so costs may not be stable over long periods of time and this could mean money being lost, which Nike claims a s a threat
Sony Branding Limitations
Sony’s branding limitations are that it involves a huge cost which can mean a loss of money if the branding techniques do not work furthermore Sony also has competition meaning it will have to spend even more than it should to make people aware of the Sony product.
4 Types of Effective Marketing
Viral Marketing – Viral marketing is an internet based technique, which includes websites, web pages or even ad pop ups of the organisation to endorse their product; this, in my opinion, is very effective due to the fact that the current society we live in involves shopping from the web to make our lives time efficient due to the fact there are some people who may be very busy therefore order from the web for the convenience.
Celebrity Marketing – Celebrity marketing is when a celebrity endorses a product although this may cost a huge sum of money it is also very effective as celebrity’s such as Michael Jordan, Rhianna etc. have a huge fan base which could lead on to many sales as the fans may look up to the celeb nevertheless some companies have found a cheaper alternative for celebrity endorsing by actually sending their product to the celeb for free and every time they wear or use the product, the organisation gets free publicity.
Mass Marketing – Mass marketing is a market tactic in which an organisation decides to ignore the market segment differences and appeal to the entire market with one offer or one method. This is an effective type of marketing as sometimes the suppliers may give out huge amounts of stock for a cheaper price rather than buying a few for the same price, this can help a business financially.
Relationship Marketing – Relationship marketing is when the company builds a relationship with customers instead of selling their product straight away. This is effective to a business like Nike and Sony as it could get customers to spend more money as they like the products more; nevertheless, Nike and Sony can do this by giving out discounts and offers which customers appreciate therefore building a relationship with the customer.
P2- “Describe the limitations and constraints of marketing”
Sales of Goods Act, 1979
The Sale of Goods Act 1979 requires goods to be exactly as they are described as well as being in satisfactory quality and fit for the purpose of its use. The term ‘fit for the purpose’ means that it should be useable for their everyday purpose as well as the reason they bought it, for example, if you searched online for computer parts such as, a graphics card or motherboard, you would want it to be compatible with your computer.
Consumer Protection from Unfair Trading Regulations, 2008
The Consumer Protection from Unfair Trading Regulations gives consumers security from unfair or confusing trading practices and it also bans confusing omissions and forceful sales techniques. The term unfair is defined when a commercial practice falls below the standards of skills and it’s also when it affects the consumers ability to make a right decision on whether or not to buy a specific product.
Consumer Credit Act 1974 and 2006
The consumer credit act controls credit card purchases but also gives you security when you enter into a loan etc. it also gives people the right for a cool off period, furthermore, this act covers the info clients should get before they enter into a credit agreement they also get the technique of calculating yearly percentage for the rates of interest and more.
Consumer Protection (Distance Selling) Regulations
Consumer protection is a group of laws designed to prevent firms that engage in fraud etc. nevertheless, consumer protection laws are a form of government regulation which aims to protect the right of the consumers. The consumer is defined as someone who buys goods for personal use or ownership rather than re-selling the good or using it in production or manufacturing of other products.
Data Protection Act 1998
Data Protection Act 1998 is an act of the UK parliament outlining the ways in which information about living people may be legally used and dealt with. The main intention of this act is to protect people against misused or abused information about them.
Codes of Advertising Practice and the ASA
It’s gives consumers the ability to file a complaint to the ASA about false advertisements, difficulty’s they might have on getting refunds. The limitations this might have on Nike is that potential customers may file complaints about the company’s product which can have negative affects when it comes to profit and some may want refunds which Nike might be unable to give as the product may be damaged etc.
Pressure groups can impact businesses massively, this is because the main purpose and goal of a pressure group is to change the way others may think of a business then leading to a drop in sales, less customers and more, this is usually caused when firms decide to use unethical methods as a cheaper solution i.e. testing products like makeup on animals, under paying factory workers etc. nevertheless the ways in which pressure groups can get their word out is, by protesting outside the headquarters of the business or in a largely populated area; Furthermore, the ways in which businesses can avoid this is by, paying employees a fair wage, using other methods to test their products and more, but this could cost a firm more money to change their methods so some firms may decide to take risks by doing nothing at all.
Acceptable language is a limitation to Nike because if Nike employees were to use inappropriate or racial slurs towards customers, it could most likely lead Nike to be sued which can cost them a lot in damage fees as well as the company being giving a bad name from media etc. which can decrease customers by a huge amount.
D1 – “Evaluate the effectiveness of the use of techniques in marketing products in one organisation”
Celebrity marketing also known as celebrity endorsement can really help a business gain profit and grow if executed correctly. Nike uses celebrities and athletes such as Michael Jordan, Cristiano Ronaldo, Kobe Bryant and many more to endorse its products as it can help the company hit the sales target, furthermore, firms also tend to give out free products to celebrities leading them to wear it and giving free publicity which companies like Nike can really benefit from. Celebrity marketing also leads Nike customers to believe that their products helps them, reach a high status and it can also lead many young consumers to believe that they acquired the ability to show off also contributing to the gain of more potential customers.
Relationship marketing is also a key technique used by businesses because it involves building relationships with customers for example giving out discounts and special offers; this can help a business out as the customers may potentially become repeat customers meaning more products would be bought resulting in a bigger profit.