Principles of Marketing of Nike

Part A: Principles of Marketing

Political

In this report, the Principles of Marketing of Nike, we discuss the hidden backbone of the business where political considerations are most important. In the current political climate, many changes affect the way a company produces its goods or how much profit it makes. This may seem like a small thing to us, but the political climate ultimately determines the organization’s survival. Nike company offers one of the following:

• The United States, Nike’s ‘home country’, has laws that allow for the growth of a company. Two examples are low interest rates and well-established international tax agreements.
• Despite the fact that Nike creates and sells tangible goods, it is subject to tax and manufacturing changes.

A conducive political environment benefits business success. Political stable environments can promote a healthy economy. The rise of Nike may be influenced by political factors such as the following:

• The U.S. economy is strong enough to support Nike’s growth thanks to overseas tax agreements in favor of Nike.
• Nike’s global business involves exports and exports. Political conflicts in some lands may impede tax processes, resulting in a negative impact on performance.

Read more: Business Project of Nike

Sociocultural

Public relations are more sensitive than ever. Because modern organizations place a premium on social standing, it is important to consider the following:

• The worldwide growth of ‘health awareness’ has led to an increase in the number of people changing their lifestyle. Nike would be happy if these people bought a huge amount of sportswear, which is for sure.
• Despite this, Nike company has been criticized for its questionable manufacturing practices. Due to the proliferation of Nike sweatshops, even Wikipedia has provided the whole article for them.
• The social environment in which a business operates can affect its sales. The PESTEL survey can be used to identify social conditions that may affect a company’s sales.
• Consumers around the world are deeply concerned about their health. Changing one’s lifestyle has a direct impact on one’s health. Nike can market its brand to a wider audience of health-conscious consumers.
• Work-related stress is a common cause for people to engage in recreational activities. Nike can use this opportunity to improve their plans for the development of leisure products.

Technological

Companies have the ability to innovate in various ways due to technological advances. Technology can add value to companies like Nike in a variety of ways, from customer engagement to product design and more. The following are some of the technical aspects that contribute to it.

Things can explode or slow down faster than before because of communication. Using social media to grow their product has worked well for Nike, but it can be a double-edged sword if done wrong, as they have found.

As a result of technological advances, Nike can now use data-driven metrics, allowing it to improve identification and productivity while maximizing revenue.

Technology is essential to Nike to simplify their product development process. Nike’s PESTEL study shows how technological advances have helped the company grow:

• Nike can use data accessible from technological sources to create high scores that will help grow the company’s revenue.
• Nike has used social media platforms to improve its product value. Dealing with potential customers can also be done through social media. Excessive use of social media, on the other hand, can be dangerous.

Legal

While legal and political factors are sometimes merged in “PEST” analysis, they are treated as separate entities in a “PESTLE” study, which is the method that we are employing in this instance. Despite the fact that Nike is not subject to many regulatory limitations, we haven’t forgotten about the fundamental issue:

Nike, like most huge corporations, avoids paying considerable amounts of taxes. This is not something new to you. Although there hasn’t been much of a crackdown on this in recent years, it’s still something to be aware of and remember.

Nike’s dubious marketing methods, such as the use of fake discounts, may also result in legal repercussions for the corporation.

The legal issues that a firm is experiencing are always critical. Nike has detected the following potential legal issues as a result of an investigation into the PESTEL system:

• For example, the bogus discount offers made by Nike have harmed the company’s relationship with its long-term clients and caused them to abandon the brand.
• It is critical that the firm deal with the issue of tax avoidance as soon as possible after learning of it.