unit 9 d1 RESUB

UNIT 9 P1

Describe the promotional mix used in two selected organisation for a selected product/service.

My two businesses are Nike and Adidas and my two products are Air Jordan’s for Nike and Original Superstars for Adidas.

The promotional mix is the elements that make up a business’s marketing communications strategy. The 6 key things that make up the promotional mix are; personal selling, public relations, direct marketing, advertising, sponsorship. Businesses use the promotional mix to communicate with other businesses and there various target audiences. The promotional mix is similar to a cake mixture because without one ingredient the cake will flop and will not be successful; same as introducing a product, if you don’t think about say the price then therefore the product will flop and will be unsuccessful. Furthermore, all the basic ingredients are the same but if you vary the other ingredients and change them then a new product will be made and will be suitable for a new target audience. To be successful you need to think of what customers want and their needs. This is the first step to being successful and developing the promotional mix to sell a product/good/service. To apply the marketing activities, the business uses the marketing mix.

Advertising is a process of producing advertisements for commercial products or services. It is used to communicate with specific target markets and to persuade the target audience to buy a specific product or service. Also by advertising, it highlights the USP (unique selling point) which will make it stand out and make people want to buy it as it will be a new product or service they haven’t seen before therefore they will be intrigued and it will fit the gap in the market. Businesses use advertising to create awareness of the product, especially if it is a new product/service. For example, Nike advertises their air Jordan’s in relation to celebrities, by using Michael Jordan. This creates brand awareness because people will associate Michael Jordan will air Jordan’s and will want to buy them if Michael Jordan has them. On the other hand, Adidas advertise their products through athletes and their adverts relate to athletes and winning gold which would make the target audience think if we buy Adidas products we will win gold and be the best. Advertising is extremely essential and important and both businesses have their own teams to work on the advertising because it is so crucial to a business. When Adidas advertise their original Superstars they also use celebrities such as Rita Ora and David Beckham to again have the same effect as Nike do on the target audience.

Personal selling is when businesses use people in the work force to sell the product after meeting with the customer face to face using their product knowledge, appearance and attitude. Their aim is to inform and encourage customers to buy a certain product. It is used to manage relationships between the customers and the business. An example of personal selling is if you went into a coffee shop and a employee was handing out samples to get you to try them and enjoy them and the buy them. The employee will tell you what the sample is and how much it is a different it is usually on offer which is to encourage customers. Nike don’t use personal selling because they are significantly popular already so they do not need to spend time and money on a staff being their person seller. This is the same with Adidas as they are hugely well known and successful therefore they do not need to do personal selling. Also, both businesses advertise enough and have a big reputation personal selling isn’t necessary.

Sales promotion is promotions and discounts that are given to customers to attract customers to buy products that are on discounted prices. Deals such as buy one get one free or buy one get the other half price are used to gain repeat purchases and increase sales. Customers then begin to expect special promotions constantly however if a business always gives promotions they will lose sales as well as customers as some customers may not want to go back. Yet businesses need to make sure they do not give away too many promotions and special offers as this can bring the businesses brand down and their reputation. Nike have occasional sales on the air Jordan’s which are reduced in price by quite a lot. This increases sales as people think they are getting good value for their money because air Jordan’s are well known. Adidas have promotions like Nike as they promote the same products therefore their promotions are very similar.

Public relations are the practise of managing the spread of information between an individual or a business. It helps to build relationships with the public businesses that have control over the public relation. An example of this is offering open days to meet and greet their customers and changes their practises, procedures and the way they present themselves accordingly once they have met their customers and understand what they want. This helps to meet customer targets and reach the target audience you are aiming for by meeting their needs by communicating with them. An example of when Nike do this is when they ask their customers who have placed an order to answer a survey about Nike as a brand, the products and their online experience and then Nike use this to evaluate the results and see what  they need to change and what their customers like. Adidas do this in an extremely similar way, by emailing their customers about the latest promotions and deals but they also offer in store questions and ask customers if they would be interested in taking part in a short survey. Adidas use different methods of direct marketing whereas Nike mainly sticks to emailing their customers. This could be because Nike are already extremely successful and popular therefore they don’t need to experiment different ways of direct marketing.

Moreover, direct marketing is the business of selling products and services straight to the public. Examples of this are by emailing or telephone selling. Direct marketing is used in many business markets as it is an effective way of selling and increase profits and sales. It used to hold the image 9f being junk mail and they used to just get sent to peoples junk mail and nobody looked at them , however now a days businesses email specific groups of people about a promotion or offer those customers browse through or purchase. Businesses use a database which sieves the information of each target market segment and the products which are aimed at each target market. Then businesses can use this to monitor the responses as it will all be neatly in the same place according each target market.

Sponsorships are when people or businesses pay to be supported for a cause, event or image. An example of this is football shirts, Arsenal has the airline “fly emirates” to sponsor them and they have their brand placed right across their football shirts. This is to get noticed and to be associated with that certain football team. When fans see fly emirates across their teams shirts they feel like they should use fly emirates airlines because it relates to Arsenal. That is why people sponsor specific businesses or things because it gets them to be associated with that business therefore some are more expensive than others depending on how popular the business is, programme etc. Overall Sponsorship is an expensive form of advertising but it is one of the most effective ways as it reaches a wide audience and will get seen by a lot of people depending on what business you choose. Nike have a list on sponsorships but there first professional athlete endorser was tennis player Ilia Nastase. This was because he was a famous athlete so people associated Ilia with Nike which meant people thought they were going to play like him if they brought from Nike. Nike have had various famous athletes over the years e.g. Cristiano Ronaldo, Didier Drogba, Wayne Rooney, Carl Lewis, Oscar Pistorius. However, their most famous sponsorship has to be basketball player Michael Jordan in 1984 because it is proved that he had one of the biggest boosts to Nike’s publicity and sales because he is extremely well known and successful and Nikes target audience love him and think of him as a role model therefore this would make customers buy from Nike to be like Michael Jordan. He also brought out a range in collaboration with Nike which increased sales significantly. On the other hand, Adidas have also had their fair share of famous sponsorships such as, Kenny Perry, Justin Rose, Leo Messi, B.o.B, Dwight Howard, Katy Perry etc. In 1997 they acquired TaylorMade which combined gold professional celebrities who endorse Adidas. Adidas also supports events such as NBA and FIFA Cup which is really good for their business because this reaches a wide audience and hits the spot on their target audience. 

When a business identifies their target market then they can identify their objectives and aims of the business. A business needs objectives and aims to be set so that they can set their goals on something to aim for and to set direct campaigns. The objectives need to be clear, measurable and precise. Some examples off objectives a business could set include; increasing product knowledge, increasing brand awareness, clarify customer needs, improving brand name. Nike has three main aims and these are; to minimise environmental footprint, transform manufacturing and to unleash human potential. Adidas have different aims and they are creating a new strategy plan which is named ‘Creating the New” and is meant to take 7 years to succeed. The aim of it is to lead us into the future and create new technology which will stand out as the sporting goods industry is growing faster than most other industries. Their core competency is sport and they want to change lives through sport. Another aim is to carry on translating their competence in sports into street wear and fashion because sport is an attitude and a lifestyle. 

A corporate image is an image which is how the business presents them, it shows a business’s reputations and the ‘image’ is what the public is supposed to the see when the business is mentioned. Nike’s current slogan is “Just Do It” and their brand image is below. 

UNIT 9 P2
Explain the role of promotion within the marketing mix for a selected product or service.

Nike has campaigns to promote their new range of shoes, Nike air zoom structure 20.

The marketing mix consists of 4 elements such as; place, product, price, promotion. These 4 elements are adjusted to fit the needs of the customers whilst making profit and income. One element is no more important than another because they all work together to support the other elements. They all contribute towards the end product as well as the brand image and unique selling point in order to make the product fit into a gap in the market.

Nike has priced their products near the high end range of shoes, this is because they are good quality shoes and are made especially for a purpose. Pricing is so important when pricing a product. It represents the marketer’s assessment of the value customers see in the product or service and are willing to pay for a product of service. If Nike adjust their prices this will have a huge impact on the marketing strategy and will affect the demand and sales of the shoes. Because Nike is a popular and successful business who has a name for themselves then customers are willing to pay that price for the shoes because they know Nike is a good brand and product high quality shoes and they aren’t wasting their money. The cheaper priced shoes are perceived as lower quality shoes because they are worth less which Nike use to price their shoes.

Location is an important factor when considering where to place the new products. Nike have launched their new range online and as well as this they have launched them in store only in a few of their most popular stores because if they launched them in all their stores, they wouldn’t be as successful as they would be accessible everywhere and people wouldn’t buy them as soon as they came out. By only releasing them in certain stores this creates a competitive customer base as customers will fight to get them as soon as possible before they get sold out. Nike will only put a limited number of shoes available online and they will only be available to purchase from the official Nike store which makes them unique and exclusive which is what Nike always does to keep up their brand reputation.

The new range Nike has brought out was a new range of shoes which they haven’t brought out before so they have a unique factor to them however; they aren’t a new product all together. They would have taken a lot of testing, market research’s, interviews, surveys etc. to discuss what their customers and target audience would want to see and where there is a gap in the market including all their competitors.

The packaging is important because Nike have to keep up their reputation even down to things such as the packaging. Nike packages their shoes in special cardboard boxes which have Nikes slogan on them. Nike don’t use expensive packaging however, they need to ensure their boxes are stable and will hold their shoes in otherwise people wouldn’t buy from Nike as they wouldn’t wont to buy from a store where they don’t treat their products nice so customers wouldn’t want to buy them if they weren’t kept protected. The subtle yet effective slogan on the box is distinctive and people know that it is Nikes packaging which is what they want.

 

There is a huge importance in having well trained and knowledgeable staff as this encourages customers into the Nike store. If an employee has no idea about the new range when a customer asks them then the customer is going to feel like they don’t know what they are doing and then they won’t buy from Nike which is why it is extremely key to have the right staff. Customers notice staffs that are exceedingly good because they stand out and know what they’re talking about. Furthermore, if staffs are helpful this may result in a bonus for them or praise.

When making a new product, it’s all based on making the right product, selling it at the right place, at the same time and prompted in the right way which is hard to complete, which is why we use the Marketing mix which consists of 4 areas; product, price, place and promotion. Promotion is the marketing communication strategies involved with advertising a product. Products need to be able to benefit the customers otherwise they won’t want to buy them and most businesses offer a product range, for example, Coca Cola offer different ranges for different customer needs and wants. Coca Cola Light is black and is aimed at men whereas Coke Zero is aimed at women. All the different ranges and variations of the products are known as the product mix/range.

When making a new product or developing an already existing product there is various development stages that need to be made, there are generally 8 different stages. The first stage is the generation of the idea which is when the business/company thinks of an initial idea of a product/service. The second stage is the idea screening which is where they share their idea within their team ad discuss it and cancel it down between them. Thirdly, this is the concept testing stage where they draw sketches or make prototypes using computer software’s to see what the products will look like. Next they have business analysis which is where they forecast the products they have make prototypes of. Then they go onto the product development stage which is where the product have been invested in and been made. After that stage, this is the most important stage out of the 8 stages and this is when the product made is actually tested and any problems can be sorted and resolved. Then the product is ready to be launched and this is by commercialisation. Lastly, the final stage is when the product is monitored and evaluated and this is called product performance.

Product Quality is how well the quality of the product is and how it meets customer needs. It means it is fit for the purpose and it is the customer’s perception of a product. Aesthetics can influence perception of quality and it links to performance however, everyone’s expectations and opinions are different.

Product Features are extremely important as they need to have something that sets it apart from similar products that are already on the market. This is known as a USP (Unique Selling Point) and it allows them to compete in the business they are in. An example for this is Cadburys because they have a different range of products which they promote cheaply and effectively and target segments of the market to different target markets.

Quantity and timing of promotional activity is when you promote at the right place at the right time. For example Coca Cola have Christmas adverts designed especially for Christmas to get involved with the seasons and to interact with the audience. The launch dates need to be carefully considered e.g. Yeezy trainers are a good example of this because Kanye West only launches them very rarely like twice a year which is good because it builds promotional campaigns and brand awareness because everyone talks about it because it is so rare. Quantity depends on the business objective and how much they would need to invest in the business promotion so they can compete with their competitors and avoid failure of the product not selling.

Buying experience is important to encourage buying decision. Nike have a friendly team in store to encourage customers to buy and are always on hand to answer any enquires, problems or anything else the customers need. Staff need to be knowledgeable about the products they are selling which customers can see because this will increase the number of people who buy from Nike because the customers will praise Nike to their friends, family and anyone they talk to about how Nike staff were helpful and they know what they are talking about. No customers like buying from a store if the staffs are unfriendly and not helpful, they will just go to an alternative store and that store will lose out. Nike is extremely popular anyway therefore people all around the world shop in Nike yet they still keep up to date with adverts to encourage customers. Businesses are increasingly aware of the need to provide service and customer loyalty. 

Staffs need to be well trained and equipped with the right training and knowledge. They must act professionally to match the needs of the customers as they need to constantly be on hand to help any customers. If staffs aren’t trained properly they won’t be able to complete their job appropriately and this may result in them losing their job, Nike getting a bad reputation etc. Staffs are trained so that they can learn how to use a product, their benefits and how to overcome objections. The capability and efficiency of staff has significant effect on the services marketing and staffs need to be available and provide correct information for customers both in and out of the business, this includes when speaking on a telephone, emailing, faxing etc.

Nike tries to keep up their reputation and image because they are one of the most successful footwear businesses and this is achieved through a lot of various things. One of those things is by staff wearing uniforms because it shows they are all working together in a team which is a nice skill to have. Another way Nike keeps up their image is by having branding guidelines. Support training is needed for this to make sure they know exactly what you should and shouldn't include in the advertising and branding to make it sell. Moreover, staff greet customers as they walk in and out of the store asking questions like “Welcome to Nike (location) could I help you with anything?” and this makes the customer feel special and feel like their enquiries matter. Nike manage their staff by observing them every so often on the shop floor and in the team meetings and this therefore gives the manager ideas on where to reposition staff, give them rewards, praises, more training etc.

Nike think it is Important to create and maintain a positive image. Nike use technology to improve their services for customers to use. One example of a service Nike created is the feature to create an account on the Nike website, to sign in and have your previous orders be on their along with products you have saved and added to your basket. This is a huge benefit for customers as it makes paying online easier because all they need to do is sign in and their card details are already on their which is so useful and encourages customers to repeat purchase online. Another service Nike have set up is now they can track orders people have placed and see where your order is e.g. being delivered now or still at the factory.

The physical appearance of the store is a huge deal for customers and has a huge impact on customers because if it looks clean, tidy then people will want to buy from that store. Shop window displays present specific images of a product/service to customers and good shop windows stand out compared to others. A good shop window needs to be eye-catching and have colourful bright products in the window. Nike needs to get the brand across in the shop window and not just have products all over it. Some stores play background music in store to give a good vive to the shop and are used to encourage specific moods. Nike trains their staff to speak a certain way when greeting their customers. All of the above I have mentioned influence a customer’s decision to buy a product or service in Nike.

Each department within Nike will have their own team sector objectives and aims. The marketing team will focus on increasing Nike’s sales which can be turned into advertising campaigns. The finance team focus on the numbers and figures of the business. Other team objectives include; raising awareness of a product or service, creating a distinctive market presence e.g. USP, increasing market share like being competitive or increasing sales. Promotions should reflect buying behaviour of customers and businesses set up market researches to help direct their campaigns and get feedback from their target market to understand their customer needs and what their customers want. Equally, Nike carry out surveys, questionnaires and other types of research to gain feedback and opinions from customers as well as their staff because Nike care about their staffs opinions which make staff happy to work for Nike as they take their staffs opinions on board.

Personal selling is the more direct and bespoke, the more you need to be aware of the product or services benefit. Whereas, advertising is campaigns in journal or exhibitions from business to business or magazines or radio or TV for business to customer. Personal selling gets a lot of customer attention therefore this means more business for Nike which is always a benefit. Another benefit of why Nike uses personal selling is because the message is customised to Nike which makes the customers feel valued and like they can connect with the business. This can have potential for relationship between the customers and the employees.

Nike use different types of promotional offers, and one of these is ‘BOBOF’ which means ‘but one get one free’ and this is a promotional offer which is an offer on multiple products where if you buy one of these products, you can get another one for free. Extra free means you get more value for your money which is an incentive. Collect and claim is to consumer more of a product for a reward. Vouchers are codes that you are entitled to, to get a discount and this encourages people to repeat purchase as Nike. Nike emails their customers who subscribe to them about the latest sales and any deals and voucher codes they get e.g. 20%. Another promotion Nike does which really intrigues customers is that they send you a voucher code for 10% off on your birthday!

Segmentation is groups of people in a target market e.g. age, gender. When segmented the market can be targeted in a specific way to suit their customer’s needs. An example of this is that Nike caters shoes for men and then has separate shoes for women, although most of their shoes are unisex however they do differentiate some shoes just for men such as bright blue and black running shoes and some just for women such as multi-coloured running shoes.

Brands are a visual identifier which is e.g. text, logo, image which sets a product apart from the competition. Nike spends a lot of their money on developing their brand. Another business who spends a lot of money also developing and maintaining their brand is Apple. Nike market its products under its own brands, some examples of these are; Air Max, Nike Pro, Nike Golf, Air Jordan etc. Nike is an extremely influential and successful brand and people worldwide can differentiate the brand compared to others. By having a good brand and a popular one, this draws a customers in because people see it and they know exactly what brand is it, for example if people see an advert and then a tick at the bottom of the screen, people will know immediately what brand that IS, Nike.

Consumers are used to a product delivering a good service or outcome which they rely on and become attached to. For example, Bisto gravy, Fairy liquid as both of these have a homely appeal to them which customers like the feeling off. A homely appeal appeals to customers because it could either have a private personality like a self-perception or public personality which is how they want customers to see them or an attributed personality which is how others see them.

Nike give benefits to the owner and one of these is permit premium pricing which is when they charge higher prices for popular items. Secondly, aiding differentiation is when they try differentiating products from competition. Thirdly, allow cross promotion more than one product in the same advert.

UNIT 9 M1

Explain how promotion is integrated with the rest of the marketing mix in a selected organisation to achieve its marketing aims and objectives

My selected business is Nike. I will be assessing the marketing aims and objectives of Nike.

The first aim for Nike is to make sure they have a good income and make enough profit to be successful. This is probably the most important objective for any business especially Nike because they are so well-known, also if Nike don’t make a profit then this will eventually lead to the business going bankrupt. Nike has used the marketing mix to make sure they do not go bankrupt and have ensured they consider all the factors of the marketing mix. When Nike considers making a new product they have a lot to think about and they need to find a gap in the market so that their product sells. The first thing they would think about is the

Secondly, Nike strives to transform manufacturing. We are not only transforming what products we make, but also how we make them through new technology and sustainable labour innovation. We are delivering performance products with contract factories that invest in placing highly skilled, engaged and valued workers at the centre.

Awareness is the public and target market recognising what your product is and awareness of Nike as a brand is extremely high. The packaging of the Nike products increase awareness of the product because they have a distinctive packaging, which everyone can differentiate, compared to other brands packaging. It is a simple box made out of cardboard wrapped in black with a white Nike tick on the box which is simple however people know this is Nike immediately because it is straight to the point. Furthermore, the price affects the awareness of the product because if it is prices too high no one is going to buy it from Nike, they will go to other competitors and buy it there for cheaper but similar near same quality. Yet, if Nike charged too cheap then this could affect awareness as well because on one hand customers will be wary and think why is it so cheap the quality must be shit and would rather pay a bit more money for a better quality product that will last them longer. The other thing is that customers may be drawn to Nike if they lower their prices because it will be cheaper than their competitors and it is good quality so this will increase the sales because more people will go there even though their prices may be decreased a slight amount. Nike is quite an expensive brand compared to their competitors yet they have top, high quality products and some of their competitors don’t. The location/ place is very important when creating awareness of a product because if Nike have a store in the middle of nowhere they are not going to attract a lot of customers and sales because there is not enough business and people coming into the store and the cost of the store, maintenance, staff etc will cost more than the store will make so it isn’t worth having a store in the middle of a non-busy area because Nike will lose money and awareness of the products and brand would not be made. The busier the area the store is located in, the more customers and more money the store will get because this creates awareness of the products because customers will be aware that it is there also passers-by will look in the store window and consider going in or not. The benefit of more awareness of the product means that this will increase the sales which are more profit for Nike which is always a benefit. A good product creates awareness of the product by placing it in the right location, by pricing it right 

The packaging of a product creates distinctive market presence because it makes it noticeable. Being distinctive means customers will want to buy products from there because they are unique and if people see other people with the packaging then they will consider buying from there. On the other hand, the price of Nike creates a distinctive market presence by making their prices stand out to their competitors by increasing them, making it distinctive therefore this means that people will want to buy a product which has a different price than other products that are the same or similar. The place of Nike stores are chosen specifically to give Nike a special market presence compared to other stores such as; Adidas, Schuh, Office etc. These are Nikes challengers. Nike also creates a distinctive market presence by emailing their customers the latest offers and sales on to make awareness for the product to differentiate themselves. The branding of Nike is used to producing branding strategies which are unique to Nike and their products compared to their competitors. The features of the product Nike creates make them have a distinctive market presence by introducing new features and gadgets to entice existing customers as well as new ones that buy from Nikes competitors. They do this in order to gain more new customers because this is what Nike wants. The benefit of more market presence is to increase the sales and increase the brands popularity which increases the number of customers and people that know about the brand.

Market share is the part of a market which is managed by a particular company or product. The packaging of Nike increases market share by promoting the brand. This means that by making good packaging this will increase Nikes popularity. Packaging doesn’t massively increase market share however, gradually this can increase market share over a long period of time. The pricing of Nike increases market share because Nike is one of the most popular and high brand within the shoe market share therefore their pricing is good because this explains how they have such a high market share. The place of the Nikes stores creates a distinctive market share by ensuring they are near their other competitor’s stores because Nike is so popular if customers walk past they will tend to get drawn into Nike rather than their other competitors. Nikes features increase market share because they are special and limited to Nike which other brands don’t have which means the market share for Nike is more than other brands such as; Adidas, Puma, Fila etc.

UNIT 9 D1
Evaluate and justify the use of an appropriate promotional mix in relation to marketing objectives for the selected organisation

In this assignment I will be evaluating and justifying the use of an appropriate promotional mix in relation to marketing objectives for Nike. 

Nike hold a positive position within the industry, which can be reflected within their profit intake. Nike have an image for themselves which they constantly work on to improve because their image is extremely important and thats what their known for. By having a successful image, this allows them to create brand awareness and increase sales. People want to buy from a brand that is trusted and known about which is what Nike is. 

Nikes market share has increased over the years, which can be explained through the use of the promotional mix. Each factor within the promotional mix helps to achieve a particular operation.

Awareness is important for any business because it attracts customers and sales from the public. Nike use their promotional mix to create awareness through different ways such as; advertising, offers, emails, deals, talk of mouth etc. Nike want as many customers as possible because this means they will achieve the most profit they possibly can. Nike aim to have good quality in their products because this makes them stand out from their competitors as when customers are buying trainers and fitness gear, they want the best quality for the best price. One factor in the promotional mix is profit, which is the income Nike makes. Another factor is the location the products should be sold. This has to be chosen appropriately suiting the requirements for Nike's target audience in order to gain customers, brand awareness and profit. Those factors justify that the promotional mix for Nike is strong. Nike are extremely high up in the list of their competitors, which shows how successful Nike are. Due to Nike being high up compared to their competitors, customers will have trust in the business and will have loyalty to the business. Promotion needs to be used in Nike because it helps to spread awareness of the products as well as generating sales in a cheaper way yet more efficiently. This can be done by letters, adverts, billboards etc. The brand is so important for the business because it helps to ensure the business gains the right awareness and profit in order to succeed. The brand is something customers spot easily which means this is exceptionally key. If Nike didn't have the right image then they wouldn't attract the right customers which would affect their brand awareness and profit. Competitors are crucial when competing in a competitive market like Nike is, because the sport fitness industry is exceedingly competitive which means Nike has to stand out. 

The promotional mix has helped Nike to create their own market presence. They get their supplies from the USA which means they have the market presence of USA as well as the UK. Nike's main objectives are to gain a big enough profit in order to be victorious. Nike create unique products which stand out from their competitors, as well as there customer service which is capable. Due to their good customer service, this allows Nike to understand their customer needs and wants, which will help them in order to produce specific products which will suit their needs and wants. This will satisfy customers which will increase the number of customers who buy from Nike which may also expand the target audience. The market presence for Nike is growing due to the market constantly changing, which will help the overall business grow as more and more people will know and talk about Nike, spreading the word about it. The promotional mix factors are compatible which all link together in order in achieving Nikes marketing objectives. Nike have gained their market presence due to them being well known and successful however, they have platen of competitors with the market which means they must ensure their promotional mix is always considered when growing their business to keep their own present in the industry. The promotional mix really played a big part in the success of Nike.

Over the years, the market share has increased which can all justify the use of the promotional mix. Each factor in it will help contribute towards a particular aspect. Nike's aims are to increase market share by up to 50% by 2015, which was met due to Nike using the promotional mix factors. Nikes market share is mainly made up of the profit intake. Compared to Nikes competitors, they are in a very high position because of their market share performance rising in 2015. This helps rank the businesses within the industry and helps with positioning the business. The promotional mix helps to increase the market share by having a good business image as well as being in a good position in the sport fitness industry market share. Nike keeps up with their competitors because they always try to excel their competitors and lead on top because of their image and performance. 

Nike uses advertising in many different ways. One advantage of using advertising via TV is that it can be seen by a wide audience and a lot of people because TV advertisement is extremely popular and commonly used. Also, it means Nikes sales will increases because of the advert, which will allow them to have more money to spend it improving the business and use other promotional methods to promote their product. Additionally, advertising allows Nike to chose their specific target audience as they are able to chose a time or programme which their target audience will be watching in order to reach their target audience effectively. Nikes target audience are men and women who are actively fit, therefore Nike would choose a specific programme or time in which their target audience would watch TV and would see the advert. Another type of advertisement that is ass effective is billboards which is because they are on a large scale which means they can be seen by anyone e.g. drivers, walkers by, residents near by etc. Having billboards on main roads or busy roads are really effective because a lot of people will look at it because they will have a big image on it with bold colours and fonts which will make them stand out. 

Although advertising is effective, there are also disadvantages to advertising which is that TV advertising is an expensive method. It can cost around £1,000 for a few second advert which is a lot of money and many businesses cannot afford to advertise through TV because of the pricing. The timings Nike would want to have their advert could be expensive timings because the busier the time, the more expensive it is as more people watch TV, therefore everyone wants to advertise their business at this time. A disadvantage to using billboards is that they may not be able to highlight the message enough because its limited to what it can have on it as it needs to be big and stand out which limits the amount of information to be put on it which makes it hard to be effective. Nike would have to include images of there photos with their logo and possibly the name of the shoes otherwise people won't know what their called. However, people usually look at billboards whilst their walking or driving by and they probably won't have time to stop, look and read the whole billboard, it as has to be kept short, which is a disadvantage.