Target Market Strategy Presentation Michele L. Nichols MKT/230 April 21, 2012 Renee Steele Target marketing strategy involves dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments. Target marketing strategy consists of three separate steps. Marketers first divide the market into meaningful segments, then select segments, and finally design a unique marketing mix for each segment.

Nike Free Run+ 3 Women's Running Shoe “Just Do It” A barefoot-like ride Traction and underfoot protection Low-profile midsole doubles as an outsole Dramatically reduced weight. Multiple fashionable color choices The Nike Free Run+ 3 Women's Running Shoe offers a barefoot-like ride with the cushioning, traction and underfoot protection of a traditional shoe. Its low-profile midsole doubles as an outsole, dramatically reducing overall weight. Nike’s marketing strategy rests entirely upon a brand image which is favorable, and has evolved into a great multinational enterprise over time. The favorable brand image has been kept afloat due to the strong association with the Nike’s logo which is quite distinctive and the slogan “Just Do It” which has been used in advertisement for quite some time. The company is known to invest heavily in advertisements and brand promotion (Nike, n.d.).

Nike Free Run+ 3 Women's Running Shoe Market Segmentation Incomes Demographics Psychological Behaviors Segment Profile Target Strategies Market segmentation is the process that companies use to divide large markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. Not everyone is willing or able to drop $130 on a pair of running shoes, so income needs considered, as well as demographic, psychological, and behavioral differences (Solomon, Marshall, & Stuart, 2008). For example, most of the consumers of Nike’s products are athletes, therefore, female athletes are divided into one group, because they are more likely to buy running shoes designed and marketed by Nike (Nike, n.d.). However, more people have become health cautious, therefore, groups such as runners and walkers will also need reached.

Nike Free Run+ 3 Women's Running Shoe Consumer Demographics Active Females Athletes Runners and Walkers Professional and Non-professional Teenagers Senior Citizens Ages: 15-75 Foot sizes: 5-12 Worldwide availability All races and religions Household incomes: $20,000 + All Education levels Demographics are statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure. Demographics are vital to identify the best potential customers for a good or service. These objective characteristics are usually easy to identify, and then it is just a matter of tailoring messages and products to relevant groups (Solomon, Marshall, & Stuart, 2008). Since most of the consumers of Nike’s products are athletes, female athletes are more likely to buy a running shoe designed and marketed by Nike. However, other females are also likely to buy running shoes, therefore, targeting female athletes, and other active female groups, such as teenagers, and senior citizens, makes the most since (Nike, n.d.).

Nike Free Run+ 3 Women's Running Shoe Consumer Psychographics Conscious Personality Attitude Image Focus/Conscious Sociable Personalities Active/Healthy Lifestyles High Motivation Demographic information is useful, but it does not always provide enough information to divide consumers into meaningful segments. Although we can use demographic variables to discover, that the female college student segment use running shoes, we will not be able to tell whether certain college women prefer running shoes that express an image of fashion rather than athleticism. Therefore, we use psychographics and segment consumers in terms of psychological and behavioral similarities such as shared activities, interests, and opinions (Solomon, Marshall, & Stuart, 2008).

Nike Free Run+ 3 Women's Running Shoe Consumer Behaviors Willingness to try new products Open minded Health and fitness fanatics Health club members Educated in health/fitness Sporting Good Stores Online Purchases People may use the same product for different reasons, on different occasions, and in different amounts. So, in addition to demographics and psychographics, it is useful to study what consumers actually do with a product. Many companies do extensive research on consumer buying decision, to answer questions like what does consumer buy, where they buy, how they buy, how much they buy, when they buy and why do they buy a product (Solomon, Marshall, & Stuart, 2008). While some may use and buy running shoes for health and fitness reasons, others may buy and use running shoes to make a fashion statement.

Nike Free Run+ 3 Women's Running Shoe Segment Profile Athletic Females Age: 18-35 Middle to Upper Class Active lifestyle Outgoing and sociable Educated Well groomed Dominate personality All nationalities Frequent shopper Fashion and brand conscious This segment profile is a description of the “typical” customer. While the product targets all females age 15-75, the above segment profile list the most profitable customers.

Nike Free Run+ 3 Women's Running Shoe Target Strategy Sponsorship of the product by professional female athletic teams, celebrity female athletes, and college female athletic teams for commercials, magazines, and Internet ads. Designing of product destination Develop product intimacy Pricing Strategies Nike’s marketing strategy rests entirely upon a brand image which is favorable, and has evolved into a great multinational enterprise over time. The targeting strategies will include among others the sponsorship of the product by professional and college female athletic teams, and celebrity female athletes in commercials, magazines, and Internet ads. This strategy can be specifically successful because of its ability to reach a large number of female athletes. The second strategy is the designing of product destination, to associate success with the product. For example, when a female celebrity athlete sponsors a specific brand of athletic shoes, the brand will be associated with success. Finally, target the consumers who are likely to develop product intimacy; or those who care more about the utility and quality of the product than the price. This way, the pricing is not affected too much in a bid to accommodate a large number of consumers (Nike, n.d.).

References Solomon, M. R., Marshall, G. W., & Stuart, E. W. (2008). Marketing: Real people, real choices (5th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Retrieved from, Axia College, MKT/230 website April 17, 2012. Nike. (n.d.). Retrieved from http://www.nike.com/nikeos/p/nike/en_US/?&ref April 17, 2012. Windows 7 ClipArt (2010) Retrieved April 17, 2012.