In the end there still needs to be the same message send to consumers in order to maintain a consisting brand image. 1.3 Company Background. Below-the-line advertising campaigns include direct mail campaigns, trade shows, catalogs, and targeted search engine marketing. Strong communication between head and regional office to local units is necessary for a smooth flow of processes in the company. Ende der Leseprobe aus 19 Seiten - nach oben eBook fr nur 14,99 Sofort herunterladen.
Local standards can be secured through production of products in the home market Spain and monitoring of the value chain. Mass marketing is indirect, impersonal and one-way (Gummesson, 20008) and therefore can be seen as a form of transaction marketing. The fact that a special slang term evolved for its die hard customers underpins Nikes strong brand. The table below shows a selection of the 30Rs applied to Nike. At the regiocentric orientation elements of polycentric and geocentric orientation are brought together16 Geocentric is the last strategic position, which indicates that the perfect allocation of resources is only possible through simultaneous use of standardization. Transaction marketing activities revolve mostly around the traditional 4Ps of marketing; Price, Place, Promotion and Product (Grnroos, 1994 whereas relationship marketing applies more newly concepts such as permission marketing. 231.4.2 Timing, in terms of timing Zara is tamed a follower, because of its long period of domestic market penetration (as said.1.). According to the four broad partnerships of relationship marketing model, there are four partnerships of an organization that form an important part of relationship marketing. This is followed by the main part, which examines the key aspects in the internationalization of Zara, namely: chronological and geographical sequence, role of culture, eprg scheme, entry strategies, timing and allocation, imgt model and the form of organization.
The company Zara is one of the biggest fashion retailers worldwide. Zara has a highly vertical integrated management system (see.5) in which every part of the supply chain is owned by the company, which adds greater complexity to the production and management process. The manager reports customers suggestions and requests products based on their shopping behavior, which allow an instant reaction to changing consumer demands. Zara was founded by Amancio Ortega Gaona in 1963 and is headquartered in A Coruna, Spain.5 Today Zara stores are located on every continent, with.213 stores in 93 countries.6 In addition to that Zara also sells their products in 39 online markets. Moreover the homepage states that its not about transactions, it's about connections (m). The last criteria of a geocentric orientated company can also be related to Zara management structure. Banks host mortgage seminars to answer questions about mortgages, interest rates, and home affordability with the goal of landing new loan customers. Instead of merely focusing their marketing activities on the acquisition of new customers, companies need to balance between customer retention and acquisition (Godson, 2011).
The parent company and foreign subsidiaries are not considered as independent entities, but as integrative parts of a global corporate network. The involvement with clothing is dependent on the degree to which the costumer uses clothing as a means of self-expression (Michaelidou, 2006). This added customer value can occur in the form of more trust to a company, a more customized service, a personal touch and the possibility to better answer customers expectations. On the other hand, email and search engine marketing precisely track the links consumers click, in order to provide businesses with more exacting details. New designs can be placed into stores within a week or two as a result of a fast fashion concept and manufacturing in Europe. While this may often be the case, the main purpose of segmenting is to find the race (segment) the company can win with its car. This used to be different but the firm learned from its own experience that it is better to recruit employees locally to gain better understanding of local market preferences. Own subsidiary is a common stock which is owned 100 by the parent company and only operates with its permission.18 Own subsidiary was chosen for most European markets and South American countries that were perceived risk and is Zaras most common entry form. Nike as a global brand is in the maturity phase of the product life cycle. The main types of below-the-line advertising systems include direct mail campaigns, social media marketing, trade shows, catalogs, and targeted search engine marketing.
Catalogues and postcard mailings are still popular and effective marketing tools. Advantages of Below-the-Line Advertising, lower costs are arguably the biggest advantage of below-the-line advertising. For a globally operating B to C organization such as Nike, pseudo- personal relationships are an efficient way to manage customer relations at reasonable costs. Its brands include Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home. Zara shows that its possible to create a global brand without trying to please every culture in every country.
Recommendations and Conclusions. Other than sportsmen, Nike targets the youth that have embraced the Hip Hop culture (Hopkins,?). In line with the previous, Kotler (2011) delineates relationship marketing as having multifarious relationships with marketing partners. Permission marketing was first introduced by Godin (1999) and means that the consumer gives his consent to receive marketing messages from companies. Introduction.1 Relationship Marketing.2 Transaction Marketing. Nikes aim should be to move customers up the ladder of loyalty.
While TV and radio ads tend to be pricy, direct mailing and search engine marketing are far more economical. According to m, a Nike head is a person that is very much dedicated to wearing Nike sneaker (m, 2012). The importance of the particular relationships varies between organizations and specific situations (Gummesson, 2008). Introduction, in this section the subject of relationship marketing is discussed and compared to transaction marketing. Demand unpredictability, which makes stock and supply management in fashion industry, complex and challenging.
It was found out that the fragility of left hand cars changed into right hand pushes buyers to want to acquire the vehicles manufactured in Europe that are originally right handed. A joint venture is a business agreement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. The company decided to first test their business model, acquire knowledge, built capacity and establish a competitive advantage before entering new markets. A look at the scope of duties of the different departments of Nike reveals that a central part of Nikes global marketing activities is telling a story about the Nike brand (m, 2012). In the same vein, companies will ensure that the elements of the marketing mix (product, price, place and promotion) are designed and manipulated to meet the needs and wants of the specific groups of customers. According to Gummesson (2008) the 30Rs of relationship marketing are 30 identifiable relationships that encompass a mixture of relationships between organizations and other parties. Im eBook lesen, market segmentation AND 4 Ps, introduction. Zara was founded in 1975, it became the flagship of Inditex. Therefore the retailers need to secure the best location, because the store location and atmosphere conveys brand image.
Important is the implication of multi establishment retailing. Below-the-Line Advertising, above-the-line advertising is designed to reach mass audiences. Customer Relationships (R1) The relationship between an organization and its customers is categorized as one of the three classic market relationships described by Gummesson. Prospects have the lowest level of loyalty and involvement towards a brand and partners have the highest level. Instead, companies often subscribe to multiple strategies. Figure 2 Subdivision of market entry forms Source: Schmid, Strategien der Internationalisierung, 2013,. What Is Below-the-Line Advertising? If a company is able to find a segment in which there is little or no competition, its bargaining power with its buyers will be greater.
Case in point: though there are multiple strategies for tracking the effectiveness of TV and radio ads, it's hard to gauge overall impact. Relationship marketing on the other hand focuses on customer retention and continuous customer contact. Zara is not designing and producing clothes and accessories for special demands of certain markets. 2.4 Strategies.4.1 Market Entry Forms, the company Zara decided on three different forms to enter the international market. Thus, the idea behind market segmentation starts with a need that may not be met at all or not met satisfactorily by competitors. These differ for B2C and B2B markets. A high level of customer service and commitment to meet the expectations of customers are also distinctive features of relationship marketing (Payne, 1995). After the company already experienced in international environment and gained knowledge about market expansion, the further market expansion was executed more rapidly to more distend countries and opening a larger number of stores.10 In 2017 stores Zara is considered.
Demographic, social-economic, geographic, etc. While planning the internationalization of a company into markets overseas the cultural aspects seems to be the most important part to consider. Rather than airing a national commercial during a hit network television show, a below-the-line campaign might instead focus on an in-store demonstration of a product, that consumers may wish to investigate in person. Moreover the ladder of loyalty helps to identify the different stages of the development of long term customer relationships (Payne, 1995). Super Bowl television ad, which costs millions of dollars for mere seconds of airtime, but instantly reaches tens of millions of consumers on a global basis. Morgan and Hunt (1994) propose that relationship marketing includes all marketing activities that aim at establishing, developing and maintaining successful relational exchanges. Due to the characteristics of a product, it is a lot more difficult to offer genuine personal touch compared with services (Godson, 2011 which signifies a challenge for Nike. Fig.1: company background, co-founder and chairman Phil Knight delineates Nike as a marketing orientated company and states that marketing their products is the companys core competency (Willigan, 1992). Godson (2011) points out that the main aim of relationship marketing is the development and maintenance of long term relationships with all stakeholders of a business.