Week 2- Discussion 1- Strategic Marketing

I recently bought Nike Air Force 1 Ultra Flyknit Men’s Shoes from Nikes online platform. What I loved about the shoes is that they have an all-new, ultra-breathable Nike Flyknit upper. The strategic crafting of the shoes makes me realize that I got shoes worth the money. The design is aesthetic and it has woven Flyknit yarns which allow high breathability, stretch, and support as it takes to the shape of your foot for a comfort, light feel. The shipping of the shoe was free thus not included in shoe’s price tag. With all these elements, I find the shoe worth its price of purchase.

After evaluating the company’s sale strategies I saw that Nike has tendencies of releasing its shoes in small quantities to hype the market before releasing the full stock. Nike, for the interesting part, does not price the shoes more expensively. Instead, it releases the stock at the initial price to tap the market created by the hype.

References

Harbaugh, J. (2015). The Sneaker Resale Market: Should Nike Maximize Its Profit? | Jeff Harbaugh & Associates. Jeffharbaugh.com. Retrieved 15 October 2016, from http://www.jeffharbaugh.com/the-sneaker-resale-market-should-nike-maximize-its-profit/

Nike,. (2016). Nike Air Force 1 Ultra Flyknit. Retrieved 15 October 2016, from http://store.nike.com/us/en_us/pd/air-force-1-ultra-flyknit-mens-shoe/pid-10941417/pgid-11044466

Response to Kelly Pratt

Hello Kelly, in most cases the main issue is whether what you get is equivalent to the price of the product. Is the product of high quality? Most importantly, you should always get improved or maintained quality products for a certain price range. Maintaining quality while keeping the price affordable helps the customer feel satisfied by the product’s functionality. You may guess how this affects quality. A customer feels more satisfied when he/she gets the best quality at a good price. What do you think should be done to facilitate getting a quality product at the best price possible?

Response to Lauren

Hi Lauren, I support your opinion that many companies use strategies to maximize profits. Most companies that differentiate themselves by providing top-quality products or services and then use their market power to ensure higher prices are more attractive to customers. While price alone does not guarantee profit, it gives companies the opportunity to maximize profit. The higher the price that companies charge for their products or services, the more the profit they expect. This strategy works only if companies have a target market in which customers are less price-sensitive, but more quality-conscious. Do you think it is appropriate for companies to hoard goods to maximize profits?