9. Market Segmentation and Target Marketing



  1. ^ **====

    Blue Ribbon Sports Targets Distance Runners

  2. ^


    The unique needs of distance runners

  3. ^ **====

    The Waffle Revolution

  4. ^ **====

    Launching and Expanding the Nike Brand

  5. ^ **====

    World Cup 2002


====[1] Blue Ribbon Sports Targets Distance Runners **
  • It was 1964. Phil Knight, a recent graduate of Stanford’s Graduate School of Business and a former University of Oregon runner with a 4:10 personal best in the mile, and the legendary Bill Bowerman, Knight’s former track coach at the University of Oregon, were passionate about distance running.
  • They believed that the German-made shoes that most competitive runners wore at the time were too expensive and not designed with distance runners’ needs in mind.
  • They saw an opportunity to design better running shoes in the United States, have them manufactured in Asia, and sell them in America at prices lower than the German shoes.

====[2] The unique needs of distance runners

Distance runners such as Knight and Bowerman had different footwear needs than other athletes.

To become conditioned enough to run a 26-mile marathon or even a one-mile or two-mile race at an intercollegiate track meet, distance runners ran several miles per day and sometimes more than 100 miles in a week.

Often, these miles were spent on rough trails, where rocks and other natural obstacles led to ankle sprains and other injuries, or along country roads, where the miles and miles of impact led sometimes to shin splints or even stress fractures of the bones in their legs and ankles.

Bowerman, a lifelong innovator who made shoes in his garage for his runners, believed that distance runners needed lighter and more flexible shoes, not heavy leather or stiff soles.

They needed shoes with better lateral stability, to protect against ankle sprains, and more cushioning, to help the runner’s body cope with miles and miles of repetitive impact.

[3] The Waffle Revolution
Though real success took several years to materialise, the story of Bowerman’s vision of a better shoe for distance runners is now entrepreneurial lore.

With his wife’s waffle iron and some latex, Bowerman invented the waffle outsole that would ultimately revolutionise the running shoe.

The lightweight, yet durable and stable sole set a new standard for shoe performance for distance runners.

Knight, the business person and visionary, had written in a class assignment at Stanford a plan for developing a business to sell American-designed, Asian-made shoes to distance runners.

Knight and Bowerman each chipped in $500 to form Blue Ribbon Sports and found a Japanese company, Onitsuka Tiger, to manufacture the shoes they designed.

For years, wherever there was running going on, Knight could be found selling his shoes out of the back of his station wagon.

By 1969, Knight was able to quit his day job as an accountant and devote all of his energies to the growing business, which then had 20 employees and several retail outlets.

[4] Launching and Expanding the Nike Brand
In 1972, Blue Ribbon Sports launched its Nike brand at the US Olympic trials after a dispute between Blue Ribbon and Tiger led to a breakup of their relationship.

In the 1972 Olympic marathon, four of the top seven finishers wore Nike shoes.

By 1974, after 10 years of dogged effort to build the company, the Nike shoe with Bowerman’s waffle sole was America’s best-selling training shoe, and the Nike brand was on its way to stardom.

In 1978, tennis great John McEnroe signed with the company, which had changed its name to Nike, Inc., and tennis shoes became a prominent part of the product line.

In 1985, a promising Chicago Bulls basketball rookie named Michael Jordan endorsed a line of Air Jordan shoes and apparel.

By 1986, Nike’s worldwide sales passed the billion-dollar mark and Nike had become the acknowledged technological leader in the footwear industry.

[5] World Cup 2002
Among Nike’s target markets by the turn of the millennium was football – soccer to Americans – the world’s most-played sport.

With World Cup 2002 scheduled in Korea and Japan, Nike’s product developers knew that extreme heat and humidity would call for uniforms that would help players compete at top speed and still keep their body temperature down.

Working for two years with the Korean team, Nike developed its new Cool Motion technology, a material with a ‘two-layer structure designed to maximize thermal comfort and ventilation,’ said Nike’s Creative Product Designer for Football, Craig Buglass.

The uniform’s inner layer pulled perspiration away from the skin and spread it over a wide area for quick evaporation.

Its water-repellent outer layer helped to keep the uniform dry under extreme humidity during intense aerobic activity.

Did the uniforms perform? Korea, never known as a football power, surprised many by winning third place.

Their relentless pressure and unending team speed impressed many observers. The high-tech uniforms surely didn’t hurt.

  1. client contact systems
  2. collector bias
  3. competitive advantage
  4. competitive intelligence
  5. computerised reorder system
  6. consumer behaviour
  7. data sources
  8. evidence based forecast
  9. experienced user
  10. internal records
  11. just in time
  12. logistical alliance
  13. market potential
  14. market segmentation
  15. market segments
  16. marketing program
  17. marketing research
  18. mass market
  19. mass market strategy
  20. michelin; us west;
  21. micro segmentation
  22. middleman
  23. modified rebuy
  24. multi-functional sales teams
  25. multilevel selling
  26. multiple buying
  27. multiple level relationships
  28. mutual trust
  29. narrow market segment
  30. narrow niche
  31. nationalisation of producers
  32. nerve center
  33. new task buy
  34. nine west group
  35. observation;direct observation' tanzania mobile;
  36. on-time delivery
  37. opportunity; research
  38. order handling
  39. organisation market
  40. organization marketing behaviour
  41. organizational behaviour
  42. organizational customers
  43. organizational demand
  44. organizational market
  45. organizational purchasing behaviour
  46. organizational purchasing process
  47. paperless exchange
  48. parity pricing
  49. personal selling
  50. personal use
  51. political risk
  52. potential market; penetrated market
  53. pre-delivery inspection
  54. pre-sale service
  55. prestige buyer
  56. pretender
  57. primary data
  58. procurement costs
  59. purchasing criteria
  60. qualitative data
  61. qualitative research
  62. quality assurance
  63. quality standards
  64. quantitative data
  65. quantitative research
  66. research objectives
  67. retention programme
  68. routine purchase
  69. sales forecast
  70. semantic differentiation scale
  71. sequence of information
  72. shared costs
  73. short term contracts
  74. social construction
  75. status oriented consumers
  76. stock availability
  77. straight rebuy
  78. supplier bargaining power
  79. supplier performance
  80. supplier reputation
  81. survey
  82. tabulation errors
  83. tanzania mobile
  84. target customers
  85. target market
  86. target marketing
  87. technical experts;
  88. test markets
  89. transaction cost
  90. trend forecasting
  91. trusting patron
  92. underlying consumer demand
  93. unethical demands
  94. unstated but implicit assumptions
  95. users
  96. value analysis
  97. value shopper
  98. vertical integration
  99. visceral thing that cannot be trained
  100. wild guess