Athletic Footwear Industry - Focus NIKE - 6422 Words

1. Market segmentation is the selection of groups of people who will be most receptive to a product. The most frequent methods of segmenting include: Demographic variables such as: age, sex, race, income, occupation, education and household status. Psychographic variables such as: lifestyle, activities, personality and social class. Behavioural variables such as: product benefits and product use patterns. Geographic variables such as: climate, country or region and the size of the area in terms of people that live in it. Much segmentation involves a combination of these methods. Nike as a company used to be a very production focused company, that is, it focused on having a competitive advantage through inexpensive production and†¦show more content†¦There would then be a heavy marketing push towards that sport using its new superstar and would lead to more people taking up the sport and buying the footwear designed for it. Also a new feature designed and successfully marketed by Nike would result in a new market segment (past example - the Air cushion). Such features could be a new lace system or a new space age material that enhances performance. Such products would be ground breaking but they would also command a high price and therefore only elite athletes and the rich would be able to afford them. Another example of a new segment would be if for example a countrys economy rapidly improved and its citizens became increasingly able to afford Nike shoes. Although highly unlikely, this would create a whole new market for Nike to enter into. 3. Organizations in the footwear market aim to segment consumer groups to enable them to identify different types of consumer groups they are involved with. The main segment variables according to Kotler and Armstrong, 2001, are the geography, demography, psychography and behaviour of the customer. By establishing these variables and the finer details of these, Organizations, such as Nike, can manufacture goods to the consumers taste. Initially, the geography is taken into account- this particular variable covers what kind of country a customer is in, the countrys region, whether the customer lives in aShow MoreRelatedNike : The World s Largest Athletic Footwear1067 Words   |  5 PagesNIKE is the world’s largest athletic footwear and apparel that ranks in the top 20 of the World’s Most Valuable Brands 2015. It designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. The company was founded in 1964 and has its headquarter in Beaverton, Oregon. Apart from Nike brand, the company also entirely owned subsidiaries, which are Converse and Hurley International brand. 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