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The following assignment is the second phase of a marketing plan created by the members Of Team C in the MKT/421 course. The team was responsible for holding discussions on the new product created in the first phase of the marketing process, which in their case, is a new medically prescribed Nike running shoe made by a specific branch of Nike, known as Nike Adjust.
The team was responsible for identifying the segmentation criteria that may affect he targeted market selection, as well as the identification of the target market. Furthermore, the team members were to describe the organizational buyers and consumers of their newly invented product, and the factors that may influence the target market’s purchasing decisions. This paper also includes discussion of the factors that can affect the marketing strategy chosen, the analysis of the current competitors, and the definition of the competitive background of the team’s product.
Identify the segmentation criteria that will affect your target market selection In a world of hi-tech everything, and more and more people becoming ctive and starting to change to a healthy life style, more and more people are being force to the “sidelines” due to foot and ankle injuries. Combine this with people who have chronic foot issues the Nike Adjust is the perfect solution to keep those people active and moving without pain. Knowing this we can look at what segmentation criteria exists to show it’s a viable market. To help with this we also have to look at the targeted market.
But let’s start with segmentation criteria that make this a viable product with in a market. To better understand this we need to understand what segmentation criteria s; it is a strategy in marketing which involves separating a large targeted market in to smaller grouping of consumers that have similar needs and requirements, then creating strategies that are focused on those consumers and target groups. Identification of target market So now that we have an understanding of what segmentation criteria is we really need to better understand target markets.
So to define what a target market is, we can say it is a large group Of consumers that a given company can define as costumers willing to purchase a particular product or service. As n example of a target market we could say 18 to 25 year old males are target for the National Foot Ball league. Or people living in Florida over the age of 65 are a target market for a particular sun block product for extra sensitive skin but market segmentation, maybe a particular race of females over the age of 65 as an example.
To bring this all together for a product like the Nike Adjust there are several potential target markets that Nike could focus on, which could be easily broken into segments, for example one segment could be the 20 to 40 year olds that are very active and have had injuries or chronic foot ssues that are looking for a way to stay active without pain. These individuals could be marketed to by Nike having endorsements from professional athletes whom may have had foot injuries.
Another way to target them would be to have advertisements during professional sporting events, or sponsoring marathons or other running events. Another segment of the larger targeted market maybe those over 40 or 50 years old that are not focused on fashion as much but more ease of use, and pure comfort of the product. And they are individuals that may not be focused on high intense exercise or focused athletic support. These individuals will be looking for a practical product that provides support in a concealed shoe that is easy to put on, and provides easy adjustments and changes.
The marketing for these consumers maybe more of a print advertising plan where adds are pulled in news or golf magazines, or T. V. spots during news or other programs which are specifically targeted to those individuals Describe the organizational buyers and consumers of your product or service and the factors that influence their purchasing decisions Since the targeted market for the Nike Adjust shoes will be those individuals with foot injuries or chronic foot pain, it ould be safe to assume the organizational buyers and consumers of this new product would be those who fall into these categories.
From an organizational buying standpoint, because the Nike Adjust shoes will be prescribed by doctors, medical clinics, and podiatrist offices will likely buy and carry some of the shoes. While healthcare plans may not yet cover the purchase of the Nike Adjust, it might often be easier for consumers (especially those who are elderly) to visit their podiatrist and receive their shoes while they are there. This will save the client time and possibly money by buying the hoes directly from the doctor’s office.
Athletic shoe stores would also be another organizational buyer of the Nike Adjust shoes. In order for consumers to purchase the Adjust, shoe stores must first offer and carry the shoes. Stores such as Footlocker, Champs, and Finish Line, for example, could contract with Nike to become exclusive carriers of the Nike Adjust shoe giving them the ability to offer the shoes to consumers who choose not to purchase directly from Nike or their doctor. Obviously certain factors will influence the purchasing decisions of both organizations and consumers.
Discuss how hese factors will affect your marketing strategy There will be several factors that influence the purchasing decisions of most any business or consumer in the market. One of the most important factors to be considered is the price. The price of the shoes may not have as big an impact on the athletic shoe stores or the doctors; however, price will be a big factor for the consumer who is going to purchase the shoes. For example, elderly individuals who may require the Nike Adjust shoe may not be able to buy the shoes as easily as say a wealthy businessman.
Nike will need to take this into consideration when eciding on a final selling price for the shoes. Nike may find it beneficial to offer some sort of discount to those individuals who decide to purchase their Adjust shoes directly from the manufacturer or the doctor’s office. This will give consumers more incentive to buy the shoes. Another factor that may come into play when making a purchasing decision is comfort and appeal. While it is true the Nike Adjust is made to help people with foot issues, this does not negate the fact that the younger generation is still looking for “style” while the older generation is looking for “comfort’.
Developers will also need to keep this in mind when manufacturing begins. Analyze current competitors and define the competitive landscape for your product or service Current competitors in orthopedic shoes are Aetrex, Dr. Comfort, Orthofeet, PG Lite, Drew Shoe and PW Minor. These companies have been specializing in orthopedic shoes for a long period of time and have a reputation of making quality shoes for people with podiatry issues. Nike is one of the top leaders in the footwear industry however medically they do not have any reputation handling podiatry issues.
Since Nike has a reputation of it caring more about he view of the company more than the quality of the product they may have issues regarding the view of their orthopedic shoe matching or exceeding the competitors quality. These companies reputation with their shoes have been strong with hardly any issue of accusations of unfair labor treatment and lack of focus on quality product. As this being a weakness of Nike and the issues the company has ran into in the past, the marketing would have to be consumer oriented showing the quality of the product.
The other competitors explain their material and quality in the product which is extremely important for orthopedic shoe selection. Nike needs to advertise the quality for these shoes and not a visually stimulated example of their shoe being good by showing a person running. Quality is extremely important in order to match or beat the competitors in the orthopedic industry. Conclusion/Summary To wrap up this phase of the assignment, the team discussed and researched several key marketing elements involved in the process of marketing a new product to the consumers.
One important aspect is the identification of the targeted market for the newly created running shoe from Nike Adjust, which in this instance would be individuals with foot and arch issues needing edical attention, as well as medically prescribed fitted footwear for orthopedic therapy, and or anyone looking for a show that will let them Stay active without pain, and also a targeted group of professional athletes whom may have had foot injuries.
The team discussed other ways to target the product by having advertisements during professional sporting events, or sponsoring marathons or other running events.