Sunday, October 27, 2013

Ch. 14 - Marketing Channels and Retailing

Nike Inc. products mostly deal with a selective distribution system of retailing. By choosing this system of retailing, Nike is screening dealers and retailers of their products and is eliminating all but a few in any single. They in lesser terms are making their products available to the few consumers in a given target market.Nike Inc. makes a majority of its money selling its products to retailers for them to sell in stores and online. Given this, it is highly unlikely that you are able to find Nike brand products in every retail location, but it is more likely that you as the consumer are able to find it in selected stores, websites and locations. To start, a consumer would probably go directly to a Nike store or the Nike website to purchase a Nike brand product, being that it is the store that is operated by Nike itself. Besides the Nike Inc. controlled outlets of retail, you are more likely to be able to find Nike brand products in stores such as Modell's, Foot Locker, Champs and other small and big sporting good stores/websites that sell athletic wear and shoes, but you are also able to find Nike brand products in department stores as well like Macy's, Sears and JCPenney, who carry a limited amount of Nike brand shoes and apparel. To add to that availability of these Nike products, all of the Nike products are sold at fixed prices, so as a consumer you will be paying the same price for the product as you would in any of the other retail outlets listed above.



Niketown NYC's interior design for the World Basketball Festival
Like any other athletic apparel and shoe producer, Nike's products sell mainly because of the vast innovation and use of form utility on the product, but also get a helping hand with the way the products are displayed in the retail stores too. As far as the form utility of the actual product, Nike's sneakers being environmentally designed and having numerous colorways and designs available makes it desirable and would make a customer want to purchase it. Its products appearance make their products very desirable to buy. Nike's "iD" process available online plays into form utility as well as it allows these customers to design their own shoes with the colors and factors they want as I stated in my previous blog post. Before Nike had launched, all running shoes were almost the same in weight and color and design, but once Nike came out with an innovated and improved running shoe, the rest was history, as Nike's shoes offer unique colorways, lighter body and quicker feel, and technologically advanced aspects to the sneaker, but also produce the sneakers with environmentally sound processes which is a huge plus. Nike being able to produce the best possible shoes with the best possible materials while keeping the environment unharmed is one of the biggest factors in their form utility. Nike knew what it wanted to do with its products and had ideas such as lighter and environmentally sound and just production processes, and put it all in place to create the Nike shoes they are known well for. The in store environment and design plays another huge role as when you enter stores that sell Nike products, the display they have of the products is top notch and really appeals to customers. In Niketown NYC, the store is broken into different rooms for different sports, and the walls and everything around it are designed with photos and art that help aide the atmosphere presented in that given part of the store. The use of manikins and other related display tools Nike stores are able to present a very distinct and well presented image of Nike clothing and shoes. Niketown NYC and my experience with shopping in there have always done a good job with the interior design of the store in terms of the form utility. Not only with that, but the Nike store retailers know their stuff well. Whenever I am shopping for a Nike product in these retailers, they are very much educated in the products and offer the customer top notch opinionated and informative stuff on a product or aspect of the Nike product I am looking to buy. I would characterize most of these retailers of Nike products as go getters, as they are always very attentive in stores and very knowledgeable and frenziedly to customers shopping Nike products, and truly resemble the Nike Inc. name proudly and to the highest standard of performance just as their apparel and sneakers are held to.



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