Market Evaluation-Science behind business

Did you ever think that science could take over an essential component of business? I am sure you are confused right now. I mean who can think science could help an entrepreneur to know whether his money got utilized or wasted?

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Ok, so let me get to the point now. Evaluation of all the marketing efforts made in business is the science of measuring what was the return on an investment made to capture maximum market segment. When you open a new business you decide your marketing mix, segment the market, target the customers that you want from that market segment and then position your brand or product in the targeted market. But, what after that?(Iacobucci, n.d.)

Then comes the step where marketing evaluation comes into the picture, and the marketing performance is quantified and compared.Market evaluation intends to balance companies’ assessment of growth prospects and planned strategies. It also analyses the various factors influencing targeted market such as its environment; the risks included technological backdrops and the competitors in that landscape.(Marketing MO, 2014)

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Nike, Inc. has been in the list of top 12 best marketing campaigns of all times (Kolowich, 2015). They started with the ‘Just Do It.” campaign which was the turning point for this company with a spent of over $300 million on overseas advertising alone and since then there has been no looking back.(Research, 2016)

Source: (Noel, 2008)

Financial Metrics

Between 1988 to 1998, Nike exceeded sales by $9.2 billion from $800 million in 1988. “Just Do It.” was straightforward and short, yet summarized all the feelings of people while exercising and that is felt among the people till today. Don’t want to wake up early for a walk? Just Do It. Don’t want to quit smoking? Just Do It. We all can relate to this jingle which drives us to let ourselves do something beyond bounds.Nike reported a profit after this campaign with an earning per share of $4.45 in the year 1989.Thus, rejuvenating sales by thousand percent for next decade.(Lee, 2000) (McGILL, 1989)

Behavioural Metrics

Nike ROI from this campaign was $1.25 billion having a market share of 25% in comparison to Reebok’s 24.2%. With the help of this campaign Nike’s shares increased from 18% to 43% in the domestic sports shoe sector, in ten years 1988 to 1998 sales hiked from $877 million to $9.2 billion. The ROI was also seen in other forms other than monetary, the purchase frequency for regular sneakers were so high even though they were not used for the actual purpose that they were made. Nike penetrated its product into a different market which was among women, athletes, and teenage consumers after a fabulous turnover in runners market segment.(Research, 2016)

Memory Metrics

This campaign gave a new image to the brand, where Reebok was focusing more on capturing the sneakers market Nike hit the bulls-eye by not focusing on the product rather concentrate on the person exercising in that product. The consumer was now aware that they were wearing a quality brand as many celebrities portrayed the brand in the ads. As the customer felt the sense of belonging there was a need for purchase created by this campaign.(Research, 2016)

Source: (Italy, 2013)

Physical Availability Metrics/Customer Profile Metrics

The brand was world renowned and available easily all across North America, parts of Europe, Japan, and China. The pricing was low as they wanted to attract the regular wear of the sneakers and that make them economical common man’s brand.(Encyclopedia.com, 2006)

When we speak about consumer profile, Nike targeted on runners, athletes initially but during this campaign they targeted teenagers and women between the age of eighteen to forty years.(Research, 2016)

Marketing Activity Metrics

Nike involved a lot of celebrities and ordinary people to inspire and motivate people to get into the routine of workouts. The ads were amusing and pleased the cynic inside us.The ads flashed the merchandise and the regime necessary, making people part of desirable society. The ads went viral as the brand was true to its message and could be identified even without Nike’s name being flashed.(Research, 2016)

References

Encyclopedia.com. (2006). NIKE Inc Facts, information, pictures | Encyclopedia.com articles about NIKE Inc. [online] Available at: http://www.encyclopedia.com/topic/NIKE_Inc.aspx [Accessed 19 May 2016].

Iacobucci, D. (n.d.). MM4.

Italy, R. (2013). Spot Nike 1988. [image] Available at: https://www.youtube.com/watch?v=p_xozTo6wrU [Accessed 19 May 2016].

Kolowich, L. (2015). 12 of the Best Marketing and Advertising Campaigns of All Time. [online] Blog.hubspot.com. Available at: http://blog.hubspot.com/blog/tabid/6307/bid/32763/The-10-Greatest-Marketing-Campaigns-of-All-Time.aspx#sm.000017b48fvvgmdwnph3cxzipiyv0 [Accessed 15 May 2016].

Lee, L. (2000). Can Nike Still Do It?. [online] Bloomberg.com. Available at: http://www.bloomberg.com/news/articles/1000-02-20/can-nike-still-do-it [Accessed 17 May 2016].

Marketing MO. (2014). Marketing Campaigns | Marketing MO. [online] Available at: http://www.marketingmo.com/strategic-planning/marketing-campaigns/ [Accessed 18 May 2016].

McGILL, D. (1989). Nike Is Bounding Past Reebok. [online] Nytimes.com. Available at: http://www.nytimes.com/1989/07/11/business/nike-is-bounding-past-reebok.html [Accessed 18 May 2016].

Noel, J. (2008). Nike Just Do It Commercial. Available at: https://www.youtube.com/watch?v=ENi1SvEFqsQ [Accessed 20 May 2016].

Research, M. (2016). Mini-case study Nike’s “Just Do It” Advertising Campaign – Center for Applied Research | Udocstore.nl. [online] Udocstore.nl. Available at: https://udocstore.nl/docs/b0c524/mini-case-study-nike-s-%2522just-do-it%2522-advertising-campaign-center-for-applied-research [Accessed 20 May 2016].

 

 

 

 

 

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