CASE 2

Concept Application:

1. During the past few years, Nike has successfully entered the golfing market
with a line of clubs, bags, balls, footwear and apparel to men, women and
kids. Most visibly, Nike has enlisted the services of Tiger Wood to promote
its Golf Products. Prepare a brief marketing plan for Nike’s golfing
products line for the coming year. In preparing the plan, consider who Nike
is targeting and how it positions its golfing products in its target markets.
For more information, visit www.nikegolf.com

Considering that golf is a sport for rich people, so they can afford to use branded
athletic footwears, athletic apparel, bags and others. So Nike took the opportunity
to use this sport to promote their products. Nike’s products are designed to use
for sports and they focused on golf on their marketing.

Target Market
 Men and Women (kids and adults)
 Rich people
 Fashionable
 Sporty/ Athletic

SWOT Analysis
Strength
 Brand is strongly established in the market worldwide.
 Strong brand value.
 Excellent product quality.
 Model/Endorser

Weakness
 Costly
 Lot of established competitors in the market e.g. Adidas and Skechers
 Trademark imitation

Opportunities
 Innovative Products
 E-commerce platform maximization- direct to consumers strategy using
digital or online business subsequently closing physical stores.

Threats
 Price competition
 Growing competitors
2. Assume you are a marketing manager for an automobile company. You
have been charged with repositioning an SUV model that was once
identified as a “fuel guzzler”. The model has been redesigned with a
superefficient, nonpolluting hybrid engine. Which of the different types of
markets/publics would have the greatest impact on you establishing the
new “fuel efficient” positioning? Why did you say so? Make a simple plan.

Target Market

 Younger singles or couples

 well-educated
 moderate-to-high-income individuals
 Couples, or small families seeking practical, environmentally responsible
transportation.
 Commuters who are working from a short distance

Planned Value Positioning

Hybrid cars pollute less, will save money, reduce dependence on natural fuel
sources and more economical to operate. The push to develop green
technologies stems from the fact that the earth’s atmosphere is rapidly changing.
This change is largely due to human activity; industry, transportation, waste, and
everyday living.

Hybrid engine is powered by a combination of traditional gasoline power and the

addition of an electric motor. The combustion engine is used at high speeds for
long distances, such as the highway, and the electric engine at low speeds and
short distances, such as in urban areas.

Sales and Profit Goals for first 2 years

The company will aim to sell 10,000 cars in the first year, at a loss of not more
than 5 million. During the first year of operation, revenues will be used to cover
start-up cost such as marketing research, which the so called return of
investment and break-even. In the second year, the company will aim for sales of
20,000 cars and a profit of 8 million.

3. There’s an old saying that “two good marketing people can’t make up for
one bad technology decision.” Is it a certainty that a company will lose out
on new opportunities if it does not keep up with new technology? Explain
your position. Can you think of an industry where technology may not play
an important role?

 Yes, it is absolutely true that a company will lose out on new opportunities
if it does not keep up with new technology. Technological advancement
 nowadays are of great help to any business. Without investing on what is
trend or being left behind on what is fad make a business fall out.

Just like for the case of Nokia. In 1998, it became the world’s largest
mobile phone brand overtaking Motorola. However, due to
company’s failure to innovate and to keep up with software-based IOS
and Android operating system, Nokia have been left behind in the market.

4. Do you think that the “4 P’s” marketing mix framework does an adequate
job of describing marketer responsibilities in preparing and managing
marketing programs? Why? Do you see any issues with this framework in
relation to service products?

 Yes, 4 P’s marketing mix framework help marketers develop a marketing

strategy because it encompasses processes and elements that are
required to execute a successful business plan- Product, Price, Place and
Promotion. This model is useful in planning a new product launch,
evaluating an existing product, or optimizing sales of an existing product.
There are several marketing strategies like product innovation, pricing
approach, promotion planning etc. These business strategies helps a
brand succeed in the market.

One of the benefits of 4P plan include ease of conceptualization.

Companies use this strategy to identify opportunities to explore and risk to
avoid. It provides certainty that helps company execute plans with
confidence and enable a business to visualize the future.

 Yes, there are issues in the said framework in relation to service products.
However, these issues were later addressed during the 21 st century
wherein 3 Ps was added- People, Process and Physical Evidence.

Group Dynamics: FOCUS ON TECHNOLOGY

AT &T natural voice designs text-to-speech (T2S) software. These T2s software
engines convert written language into speech that sounds amazingly real. AT &T
has partnered with many companies to improve the customer value network and
increase sales. One of the partner companies that sells AT&T Natural Voices
directly to customers over the Internet is the Nextup. If you have not used or
experienced a T2S engine before, you can get a free demonstration at
http://www.netup.com/nvdemo.html. Just follow these simple directions:
a. Paste any sentence of less than 30 words into the demonstration space
provided,
b. Select a language
c. Select a voice
d. Click “go”.
Now, suppose you are a member of a new- product marketing team in a firm that
has developed T2S technology. You have been asked by the company CEO to
present some possible applications for the University undergraduate education
market.
1. In a small team, brainstorm at least three applications for the University
undergraduate education market

AT &T used partnering to build customer relationships which is very effective

marketing strategy.

2. The T2S engine that you demonstrated was developed by AT&T. Why, do
you think, did AT&T seek out a partner to co-market this product, rather
than marketing the product itself.

They seek-out a partner to co-market their product because they have goals- to
improve customer value network and to increase sales. They knew that they
cannot do it alone because they are just start-up. Going it alone will give you full
autonomy of your business, but a partner may allow you to expand more.

Starting up with a partner helps them spread risks of their investment if it doesn’t
work as planned. Since NextUp Technologies Text to Speech program is
specifically designed for people who have temporarily or permanently lost their
voice, they are already directing to one of their target markets- people with visual
and reading impairments.

Partnering also means new markets. When there are new markets, market
development are needed for the existing products and diversification are present
for new products. Being diversified helps to maximize return by investing in
different areas and market conditions.

3. Are there other companies with which AT&T could have partnered? Which
ones.

Yes, to the private and public universities. Studies suggest that text-to-speech
technology allows students to focus on the content rather than on the act of
reading, resulting in a better understanding of the material. Students more likely
to retain information presented in both audio and visual formats.