The paper “ The Benefits and Costs of a Market Orientation for Nike" is a thoughtful example of a case study on marketing. Marketing is a broad concept in organizations that handles the identification, anticipation, and satisfaction of the needs of the clients in a profitable manner. A firm is market-oriented finds out the demands of its customers and thus allocates the necessary resources to achieve consumer satisfaction. There are three distinguishable features that market-oriented organizations depict. To begin with, they have shared value with their customers in the sense that they are concerned about the well-being of their clients by ensuring they provide products that are of superior quality to ensure their satisfaction.
That notwithstanding they implement a lean organizational structure that involves less bureaucracy to ensure the clients get the chance to interact with the organization satisfactorily (Pride et al. , 2015). Benefits for Nike Inc. In pursuit of achieving market orientation, Nike Inc. will have to produce products of superior quality for the needs and preferences of its customers to be satisfied. In that light, it will be recognized as a manufacturer of quality footwear products that professional athletes and other ordinary consumers will be pleased with.
Additionally, given the superiority of the products that Nike Inc. manufactures its clients will develop a sense of customer loyalty since they will want to utilize repeatedly Nike’ s products as they satisfy their needs in an optimal manner. It is from that point that consumers who have used the company’ s products will recommend other potential customers to try those goods given the exclusive experience that they have earned. The three aspects combined means that Nike will increase its overall volumes of sale since its products will be experiencing an additional demand that will, therefore, translate into increased revenues.
The product benefits of the goods that Nike Inc. is producing are the ones that are responsible for the overall revenues that the firm will receive since the superior quality products will increase the level of consumer satisfaction that, on the other hand, will lead to increased profits due to high sales volume (Pride et al. , 2015). By manufacturing goods of superior quality, Nike will be creating image benefits for itself since the products will be widely accepted across the market thus creating a positive image for the firm in the market.
Once the company has achieved a real perception in the market it will be easier for it to launch new products or rather a new line of goods in the same market as it will take advantage of the good public image that it had already created to push the new items in the market. Furthermore, relational benefits will be established as a result of Nike producing goods of superior quality since the consumers will want to be associated with the company due to the high satisfaction levels that they are experiencing and in that light customers will tend to be more connected with the firm thus boosting their relationship and hence enhancing loyalty to the products (“ Domestic Marketing” , 2014). Costs for Nike Inc. Nike Inc.
spends a considerable amount of money and time to conducts consumer research to identify the exact needs and preferences of its clients so that I can manufacture products that fit their needs. Additionally, the company employs professional staff to handle their customers; the experts are paid monthly wages that are part of the costs that the firm foots in order to ensure the needs of their clients are met satisfactorily.
Just like in any other market segment Nike Inc. faces stiff competition from other businesses like Addidas and Puma in the footwear market. Thus, the company spends a considerable amount of capital to advertise its products through various avenues to appeal to its target market and to obtain a competitive edge over its rivals (“ Microenvironment” , n. d.).
Quality comes at a cost. The superior quality that is associated with Nike’ s products does not emerge from anywhere the company employs considerable capital to ensure it manufactures the best quality products for its clients. In so doing it selects the best raw materials and incorporates qualified personnel in the manufacturing process to come up with superior goods that satisfy the demands and needs of its consumers (“ Marketing Mix” , n. d.).