The main types of below-the-line advertising systems include direct mail campaigns, social media marketing, trade shows, catalogs, and targeted search engine marketing. According to Gummesson (2008) the 30Rs of relationship marketing are 30 identifiable relationships that encompass a mixture of relationships between organizations and other parties. Nike emphasis their employers from the brand management department to the retail staff to tell customers the story about Nike. 1.2 Transaction Marketing. They invariably end up thinking that it does not make sense because their business does not look like a Formula 1 racing car but looks like a cheap old car instead. As companies have limited resources, they cannot produce all possible products or services to all people, all of the time. Nikes marketing activities are mainly revolved around the sponsorship of athletes and athletes teams and using top sportsmen as brand endorser. For a globally operating B to C organization such as Nike, pseudo- personal relationships are an efficient way to manage customer relations at reasonable costs. Fig.1: company background, co-founder and chairman Phil Knight delineates Nike as a marketing orientated company and states that marketing their products is the companys core competency (Willigan, 1992). Thus, the idea behind market segmentation starts with a need that may not be met at all or not met satisfactorily by competitors.
In line with the mission statement, Nikes key target group are athletes. Mass marketing is indirect, impersonal and one-way (Gummesson, 20008) and therefore can be seen as a form of transaction marketing. Ende der Leseprobe aus 9 Seiten - nach oben eBook fr nur 1,99, sofort herunterladen. Format: PDF, ePUB und mobi fr PC, Kindle, Tablet, Handy (ohne DRM). Of course, there's no perfect marketing tool that works each and every time. These differ for B2C and B2B markets.
Segmenting a market implies the use of data based on differing customer, user, organizational and market characteristics. Involvement in a marketing sense is the relevance a person attaches to a certain product or brand, based on their needs, values and interests (Solomon, 2010). While TV and radio ads tend to be pricy, direct mailing and search engine marketing are far more economical. If a company can find a need that is not met but that it can meet, it may have stumbled upon innovation and therefore reap the benefits of being the first in a product class. Super Bowl television ad, which costs millions of dollars for mere seconds of airtime, but instantly reaches tens of millions of consumers on a global basis.
This marketing approach aims at creating an impression of a personal relationship between the customer and an organization and therefor is called pseudo-personal relationship (Gummesson, 2008). On the other hand, email and search engine marketing precisely track the links consumers click, in order to provide businesses with more exacting details. Nano relationships on the contrary exercise their influence on a lower level than the market and represent relationships inside an organization. Customer Relationships (R1).1 Ladder of Loyalty.2 Knowledge Relationship (R21).3 Electronic Relationships (R12).4.1 Viral Marketing. Will that company target retailers of new cars, retailers of used cars, organizations that need cars for transport of their staff or transport of goods, travel agencies, individuals who need a car for their personal transport or for taxi business? Due to the companys marketing activities and product innovations, Nike holds a strong market position in most of its product segments which are Clothing, footwear, sportswear and accessories (Datamonitor, 2011). Morgan and Hunt (1994) propose that relationship marketing includes all marketing activities that aim at establishing, developing and maintaining successful relational exchanges. And below-the-line methods can be more cheaply and easily scaled up or down. While this may often be the case, the main purpose of segmenting is to find the race (segment) the company can win with its car. Other than taking a simple buyer and seller approach, this model meet the requirements of relationship marketing by taking a constellation approach (Godson, 2011).
2.1 The Four Broad Partnerships of Relationship Marketing. Theoretical frameworks.1 The Four Broad Partnerships of Relationship Marketing.2 The 30Rs of Relationship Marketing. The 30Rs of relationship marketing model is applied to underpin the four partnership model. What Is Below-the-Line Advertising? For Nike, the classic market relationship relationships to customers and supplier and the mega respectively external relationships are the most crucial. The purpose of market segmentation is to cope with the economic reality of scarcity of resources. Below-the-line marketing fosters superior customer engagement, which is critical in todays modern business landscape. These segmentation bases include profile criteria (e.g. Let us suppose that after market research, the company finds out that there are various groups of potential customers who need cars for different reasons, but each group having a good number of similarities with regards with the need, want, expected.
The research has also found that the government policy consisting of elimination of vehicles called left hand has made imperative the acquisition of cars called right hand. New products are by nature in the introduction phase of the product life cycle. Relationship Marketing could be difficult to apply for low-risk, low involvement products, since in that area a relationship with the supplier can often hardly add a value to the customer. Nike has millions of customers and it can be argued whether it is possible to create a relationship with all of them (Gummesson, 2008). Arbeit zitieren, masters of Arts (Marketing) Jules Miller (Autor 2011, Market Segmentation and 4 Ps, Mnchen, Page:Imprint: grinverlagOHG, /document/180606). On the downside, statistically speaking, a significant percentage of those viewers may not typify a companys target consumer.
The most important stakeholder for most businesses is the customer. 3.1 Ladder of Loyalty The ladder of loyalty is a model used to evaluate customers levels of involvement with a company and its products and to delineate the transition from transaction marketing to relationship marketing (Godson, 2011). Advantages of Below-the-Line Advertising, lower costs are arguably the biggest advantage of below-the-line advertising. Moreover, a segment is worth targeting if a company can meet the segment needs and wants better than its competitors and still remain profitable. To illustrate market segmentation, let us suppose that there is a company based in Rwanda which would like to sell cars. Nike uses a mix of relationship and relationship marketing. Banks host mortgage seminars to answer questions about mortgages, interest rates, and home affordability with the goal of landing new loan customers. The mega relationships and nano relationships comprise non- market relationships that have in indirect effect on the efficiency of the market relationships.
Gaining marketing advantage in a competitive landscape has been one of the biggest challenges for businesses. Nikes aim should be to move customers up the ladder of loyalty. 2.2 The 30Rs of Relationship Marketing. Todays consumers can spot a fake endorsement in one glance. This statement underlines Nikes relationship marketing orientation.
Nike is an expert in brand building, the catch phrase Just do it has become more of an idiom than an advertising slogan (Willigan, 1992). The table below shows a selection of the 30Rs applied to Nike. 1.1 Relationship Marketing, according to Godson (2011 relationship marketing is a marketing approach that is based on networks, interactions and relationships. Gummesson (2008) defines relationship marketing as marketing that is based on interactions within networks of relationships. Above-the-line methods are ideal for general brand awareness, while below-the-line tactics are preferable for fostering direct relationships with potential customers. The return on investment (ROI) from a below-the-line campaign can be higher versus an above-the-line since below-the-line is less costly and more easily monitored. In most cases, below-the-line advertisers initially conduct extensive market research, in an effort to identify a target niche of buyers more likely to purchase the products. The research has found that due to the social level of most of educated Rwandans and foreigners who reside in Rwanda, many can afford a personal car at the present time. The current essay intends to highlight what market segmentation is and to analyze the importance of 4Ps-product, price, place and promotion- in gaining competitive advantage over competitors through the offer of products or services of greater value to consumers.