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Gibbs Arita Assignment Essay

I have read and understand Strayer University’s Academic Integrity Policy. I promise to conduct myself with integrity in the submission of all academic work to the University and will not give or receive unauthorized assistance for the completion of assignments, research papers, examinations or other work. I understand that violations of the Academic Integrity Policy will lead to disciplinary action against me, up to and including suspension or expulsion from the University. I understand that all students play a role in preserving the academic integrity of the University and have an obligation to report violations of the Academic Integrity Policy committed by other student. In addition, I Arita Gibbs certify that I am the author of this document and any assistance I received in preparing this report fully acknowledged. I have also cited in APA format for all sources that I obtained ideas, data, and words. Sources are properly credited according to the APA guidelines.

Arita Gibbs

Due Week 9/ Date: 03/06/14
Promotional and Advertising Strategies

Promotional and advertising strategies are important tools for businesses to stay on top. A company has to work hard every day to remain competitive. Most of their tactics include peeking the interest of consumers to buy a specific brand which is called a promotional strategy (Boone & Kurtz, 2013, p. 391). Promotional strategies also are put together to control the mix of daily activities, which the business benefits with market increase (Boone &Kurtz, 2013, p. 391). Advertising is another piece of the marketing process. It plays a major part in getting the word out regarding the product or service the business is selling (Lake, 2014). There are a few types of advertising such as, product advertising, cause advertising and institutional advertising (Boone & Kurtz, 2013, p. 398). Product advertising is design to involve ads with a message that differentiate the company’s merchandise or brand from competitors (Boone & Kurtz, 2013, p. 398).

An example would be a credit card from any well-known company. Cause advertising deals with issues regarding ways to influence public and government opinion (Boone &Kurtz, 2013 p. 398). Companies who are designed for profit and those organizations who are charitably operated believe this tool is a win-win for everyone (Kokemuller, 2014). Important issues today being discussed are that children and adults should have every necessity in life, which should not prevent them from learning, living or being hungry (Boone & Kurtz, 2013, p. 398). Institutional advertising is a marketing tool which is based on the image of the company. This tool also promotes the designs, values and beliefs, as well as the good deeds of the organization (Boone & Kurtz, 2013, p. 398). Le Bonheur Children’s hospital is an excellent example. The company marketing strategy shows how a person can contribute a small donation an in turn can save a child’s life who is suffering from an illness.

In assignment three, it states to compare and contrast the promotional strategies used by two different companies for a similar product. Next recommend two ways in which the company’s selected product could use marketing information to differentiate itself in the marketplace to gain an advantage over the company’s competitors. This paper will suggest two usages for consumer-oriented promotions that could assist a company in both
the short and long-term, as well as analyzing the strategic manner in which the leading company in the product group has made a pricing decision by using one or more of the four pricing objectives. In closing two suggestive actions of other companies within the same product group will be given in order to help them differentiate themselves and gain a competitive advantage. The most effective advertising medium will also be discussed (Strayer University, 2014, p. 17). The two companies chosen are Nike and Adidas.

Compare and Contrast the Promotional Strategies for Nike Inc. and Adidas Group

Nike has become one of the largest marketers for athletic shoes (Nike, 2014). The company has global shares worth more than 30 percent (Nike, 2014.). Nike has sold their products through thousands of other retail stores as well as their products to countries both domestically and overseas (Nike, 2014). The company has outlet stores. Almost all of their products are made by independent contractors mainly located out of the country, with Nike involved in the market strategy and growth (Nike, 2014). Not counting the large range of core athletic shoes and clothing advertised under the leading brand, the company also sells shoes under other brands such as, Converse, Chuck Taylor, All Star and Jack Purcell through solely owned businesses (Nike, 2014). There is so much more to Nike. The company has relied on creativity in their designs of their products and large amounts of promotion to fuel their growth in the United States and other foreign Countries (Nike, 2014).

Nike Inc. has a promotional strategy which thrives on an image, which has allowed the company to be one of the best (Nike, 2014). The company is known for their product icon “the swoosh”, which is different from other companies and their product slogan has been used in commercials for a very long time (Nike, 2014). Nike invests large amounts of money for commercials and product promotions (Nike, 2014). The company is motivated by customer agreements and sport teams. The company targets the college athletes to support the product and will also financially support team members that they will eventually endorse (Nike, 2014). Nike also uses their target techniques to include people who are well-known athletes and celebrity athletes (Nike, 2014).

This strategy is a success because once the manager of a sports team decides on which type of shoe made by Nike, he would like the student to have no choice other than to buy the shoe. The sports team can also buy the shoes in a large quantity and deliver it to the members of the team (Nike, 2014). Another marketing strategy of Nike is the creative design of a product objective or purpose meaning when a famous athlete promotes a certain brand of Nike shoe, the shoe will be associated with winning (Nike, 2014). The viewers have a mental effect from this type of correlation and the company builds a relationship with those consumers who are after the quality and utility of the items instead of the cost (Nike, 2014). With this idea, Nike is sure to reach a huge number of customers and clients who will purchase their products (Nike, 2014).

Adidas has been in business over 80 years (Adidas, 2014). The company is known has the world of sports on each level, and they are also known for supplying the state-of-the art sports shoes, clothing and accessories (Adidas, 2014). Today, Adidas is leading the globe in the sporting industry (Adidas, 2014). The company’s strategy is modest; join our passion to create new and different products, constantly supporting our brands and products to increase our economic position and economic performance (Adidas, 2014). Adidas main location is in Germany, but the company has manufacturing centers and departments developing all around the world (Adidas, 2014). Adidas believes the company addresses many of the customer’s needs by exploiting marketing prospects from a number of angles. Their pledge to product innovation which keeps their brand different from the competitors provides a solid stage for upcoming growth (Adidas, 2014).

There is no other brand with a well-known background and strong connection in sports than Adidas (Adidas, 2014). Adidas considers themselves has the best, and they are wherever the best will be such as, the Olympic Games, and anywhere else in the world where a game of sports will be played, observed, liked and celebrated (Adidas, 2014). The founder of Adidas is Adi Dassler (Adidas, 2014). His main objective for the company is not hard to understand, it is for all athletes to be at their best (Adidas, 2014). The key factor for all Adidas sporting products is to stay innovated, and the brand has five performance benefits, fast, strong, smart, cool, and more natural, which influences the important sporting events that focus on football, basketball, running, training, and outdoor (Adidas, 2014). The goal for adidas is to market the individual who is active and lives for sports (Adidas, 2014). Nike uses the high profile athletes, and Adidas is about performance and lifestyle. Both Nike and Adidas use athletics as a tool for marketing in a way to attract the consumer to purchase their products.

Recommended Ways to Market Information to Differentiate From the Competitors

In this competitive market business promotion is the key to differentiate from the competitors (Boone & Kurtz, 2013, p. 395). One way is for the business to apply the rule of positioning. Product positioning is a strategy used to put a product perception in the mind of the person who is buying the product (Boone & Kurtz, 2013, p. 395). Positioning normally involves the creative difference associated with a product or service and the competition (Acevedo, 2014). Companies are successful when using this marketing tool because it helps gain market control, which raises revenue for the company (Acevedo, 2014). Adidas has a plan to attract the serious runner. The company is coming out with the shoe price a little over a $100.00 called the energy boost (Riper, 2014). The energy boost will be sold at all the Adidas Stores and the many department stores (Acevedo, 2014).

The objective is to limit the advertising with no television involved. If this is a success the company believes it will have a retail rollback for a larger budget for advertising (Acevedo, 2014). The President of Adidas Patrick Nilsson believes if the company spends large amounts of money later then the company can have a wide range launch in retail when the time comes (Acevedo, 2014). Ultimately all of Adidas shoes, basketball, tennis, the whole nine yards will be linked to the boost technology (Acevedo, 2014). However, for now the company is pleased to know from a source in the apparel tracker states that the company has over 4% of the growth in the shoe market from two years ago (Acevedo, 2014). Nike uses their promotional strategy by using one of the company’s seven fundamental stages move (Nike, 2014).

(Nike, 2014).

Move is the stage which keeps the company different from the rest of their competitors (Nike, 2014). Nike will ship their products at any time, and by any occasion that the company needs in order to reach the thousands of associates and the millions of customers over the world whether it is by plane, ship, small or large truck or train (Nike, 2014). Nike is serious about how they provide transportation no matter how difficult the obstacle may be (Nike, 2014). With this move Nike market leader enjoys over 50% market share (Acevedo, 2014). Adidas however does a little better with their overall athletic shoe.

How Consumer-Orientated Promotions Can Help Nike and Adidas Short and Long-Term

Consumer-Orientated Promotions are a part of the four marketing mixes, and it is also known as the pull-strategy (Moorty, 2014). Both parts are an important one for every organization (Moorty, 2014). The goal is to persuade the new customer or long-term customer to try out and purchase the products being marketed (Boone & Kurtz, 2013, p. 404). Also a marketer’s role is to motivate customers who shop frequently at the same business. Sample products, discount coupons are just a few of the promotions that can boost impulsive shoppers to buy which increases sales for the company (Boone & Kurtz, 2013, p. 404). The President and CEO of Nike, Mark Parker states the company’s short-term consumer-orientated advertisings is simple (Nike, 2014). The company will continue to produce amazing products, offer professional services and provide a continuation of excellent customer experiences. With these results will indeed show the power of our strategy and growth (Nike, 2014).

Nike’s long-term consumer-orientated promotions are the vision that drives the sustainable growth (Nike, 2014). This balance is leveraged by an important advantage including the company’s reliability with the passionate connection to their customers; new and improve products with retail experience that lead the industry to be a stronger organization that also provides the opportunity to become a larger successful business (Nike, 2014). Nike has already set goals for growth to include the year 2015 (Kim, 2010). With a target set to at least $20 billion by that year the company has already outlined their revenue goals and initiatives and plans to reach this by using a customer-focus strategy (Kim, 2010).

As time permits the more aggressive promotional strategic goals set by the business will be shared with the consumers, invested communities as well as the sports and apparel industry (Nike, 2014). One example is how the company has set their design to improve the company, by launching a new business a few years ago called Nike Better World, an online stage to involve customers on how the business balanced individuals, economy and the world (Nike, 2014).

Adidas short-term consumer-orientated promotions are to continue to rely on their customer loyalty (Adidas, 2013). As with any organization it is innovation, which makes the deciding factor who wins and who loses. Adidas has been successful using the brand equity method which has allowed them to maintain the slogan of being the fittest company on earth (Adidas, 2013). In order for the company to maintain their long-term status and sustain growth, Adidas will continue to create newer and improvable market brands (Adidas, 2013). Overall Adidas started back four years ago planning their strategy to increase the brand’s perception in the customers viewpoint which had an expectation to deliver over 80% of growth for the company until 2015 (Adidas, 2013).

Some of the areas of improving consist of, the running and basketball areas, and combining the sports style with the Adidas NEO label (Adidas, 2013). However the company is keeping the original adidas because it has a long history with the energetic lifestyle customer (Adidas, 2013). The company will always be focused on the consumers wants, their level of fitness, their incentives and ambitions for doing activities in sports (Adidas, 2013). His or her individual way of living helps Adidas develop important products, services and experiences that construct a lifelong brand (Adidas, 2013).

Pricing and Competitive Advantage

In chapter 13 Promotions and Pricing Strategies there are four pricing objectives (Boone & Kurtz, 2013, p. 412). The four strategies are profitability, volume, prestige and meeting competition (Boone & Kurtz, 2013, p.412). Each objective has a responsibility to the person who is in business with making better pricing decision’s (Boone & Kurtz, 2013, p. 412). Organizations have their own style for using these objectives. Many businesses aim to increase the company’s revenue by setting higher prices (Boone & Kurtz, 2013, p. 412). Other companies may decrease their prices to bring in new clientele (Boone & Kurtz, 2013, p. 412). Nike is the leading company for their athletic shoes because of their higher price and leadership strategy (Nike, 2014). Businesses would define this as the prestige pricing strategy (Boone & Kurtz,2013, p. 413).

The company has been able to make this strategy successful because of their individuality in their brand and service (Nike, 2014). The name alone has been associated with many hero athletes for instance, Michael Jordan (Nike, 2014), This brilliant idea makes customers believe if Michael Jordan can buy a Nike shoe and become more successful than certainly another ordinary person can as well (Nike, 2014). This is why Nike customers do not mind paying a higher price because of the company’s image, value and customer service (Nike, 2014). Another pricing objective Nike uses is profitability. This is the most common factor used in a strategic plan for a business (Boone & Kurtz, 2013, p. 412).

Nike has a plan to continue to bring in more revenue and remain profitability in the growth of the company, maintain the company’s flowing cash generation which will help to preserve a strong financial statement until the year 2015 (Kim, 2010). The company believes the return on invested capital is more than 20%, and growing shares inside the set target calendar year payout should be in the ballpark of more than 20% by the fourth quarter (kim, 2010). Both companies have been in business for a while, and their products are known to satisfy the customer’s needs.

One suggestion that other shoe apparel companies can take in order to differentiate themselves and gain a competitive advantage is knowing how much the product is going to cost, quality, performance as well as the availability of the product, updated technology, good service, and strength and leadership (Hill, 2007). Second suggestion is to know the company’s relationship and making sure the organization can meet the need of the consumer in a way no one else will (Hill, 2007).

Determine the Most Effective Advertised Medium

Advertising Medium and cost are both key factors to the success of any organization (Boone & Kurtz, 2013, p. 399). This tool is how marketers are able to sell new and existing products and services to potential consumers (Boone &Kurtz, 2013, p. 399). There are many types of advertising, newspapers, direct mail, billboards, radio, internet, magazine, and television (Boone &Kurtz, 2013, p. 399). In this muti-media world, television is considered the largest ranking medium with over 40% of any other form of advertising (Boone & Kurtz, 2013, p. 399). Nike uses commercials and promotional products for their form of medium advertising (Nike, 2014). Within the past six months, the company has grossed over 40 percent of their margin (Stock, 2013). Nike is focused solely on bringing new and innovate creations to the market (Stock, 2013). Nike believes they have a good thing going. As of now the attention is on their Flyknit shoe (Stock, 2013).

This shoe has important types of fiber connected with fabric and leather and was marketed to catch the eye of the individuals who love to run, which came just in time for the Winter Olympics (Stock, 2013). Nike had to spending more for their advertising by trying to convince the customer that this $200 shoe was worth it (Stock, 2013). In order to do so, Nike had to bring out some famous athletes for instance; one of the athletes was LeBron James (Stock, 2013). By advertising LeBron in their ads the company was able to increase their profit margin, and acknowledged their game plan was a success not only by convincing customers to buy but using the ads as well (Stock, 2013).

Nike was also successful with their global orders (Wahba, 2013). It was the largest so far of their sales in merchandise which increased over 12 percent since April (Wahba, 2013). The company’s total revenue was huge even up to the second quarter (Wahba, 2013). The company made over $6 billion which was a total revenue of more than 7 per cent (Wahba, 2013). Nike was able to sell more goods at a higher price than any other competitor (Wahba, 2013). The company profited in advertising and promotion by 13 percent with their help in marketing and product launching for the Winter Olympics (Wahba, 2013).


Promotional and advertising strategies of an organization are a determining factor to whether the company will succeed or fail. This competitive market is a vicious one, and in order to stay on top the most successful business must continue to develop new innovated strategies. Nike and Adidas have been in business a long time; Nike has been the leader and Adidas has been the Opponent (Wahba, 2013). Both companies have excellent strategies, and some of their strategies have a close comparison. Nike has been able to remain on top because of the company’s promotions, advertising and marketing genius.

Acevedo, L. (2014). Product Positioning Strategies: eHow Inc. Retrieved from eHow Inc Web site:
http://www.ehow.com/way_5218154_product-positioning-strategies.html Adidas Corporation. (2014). Investors: Adidas Corporation. Retrieved from Adidas Corporation Web site: http://www.adidas-group.com/en/investors/strategy/global-brands-strategy/ Adidas Corporation. (2014). Our Group: Adidas Corporation. Retrieved from Adidas Corporation Web site: http://careers.adidas-group.com/our-group.aspx Boone, L. E., & Kurtz, D. L. (2013). Contemporary Business. Hoboken, NJ: John Wiley & Sons. Hill, T. (2014). How Do You Differentiate Yourself From Your Competitors: Ezine Articles Corporation. Retrieved from Ezine Articles Corporation Web site: http://ezinearticles.com/?How-Do-You-Differentiate-Yourself-From-Your-Competitors?&id=705221 Kim, J. (2010, May 6). Nike Introduces 2015 Global Growth Strategy: Sneaker News Corporation. Retrieved from Sneaker News Corporation Web site: http://sneakernews.com/2010/05/06/nike-introduces-2015-global-growth-strategy/ Kokenuller, N. (2014). What Is Selective Product Advertising: Chron Corporation . Retrieved from Chron Corporation Web site: http://smallbusiness.chron.com/selective-product-advertising-17454.html Lake, L. (2014). Marketing vs. Advertising: What’s the Difference: About.com Corporation. Retrieved from About.com Corporation Web site: http://marketing.about.com/cs/advertising/a/marketvsad.htm Moorty, S. (2014). Define Promotional Sales: eHow Inc. Retrieved from eHow Inc Web site: http://www.ehow.com/about_5401613_define-promotional-sales.html Nike, Inc. (2014). History & Heritage : Nike Inc. Retrieved from Nike, Inc Web site: http://nikeinc.com/pages/history-heritage Stock, K. (2013, December 20). Nike Ramps Up Prices—and Ad Spending—for Olympics: BloombergBusinessweek L.P. Retrieved from BloombergBusinessweek L.P.Web site: http://www.businessweek.com/articles/2013-12-20/nike-ramps-up-prices-and-ad-spending-for-olympics Wahba, P. (2013, December 19). Nike profit rises and advance orders jump: Reuters Corporation. Retrieved from Reuters Corporation Web site: http://www.reuters.com/article/2013/12/19/us-nike-results-idUSBRE9BI18R20131219

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