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  • MBA Marketing Management Assignment with Adidas (GC01696)
MBA Marketing Management Assignment with Adidas

MBA Marketing Management Assignment with Adidas (GC01696)

  • Categories Sales & Marketing

Table of Contents

1.0 (a) Introduction.

1.0 (b) Company (Adidas) Overview.

Task 1: Assess the importance to Adidas of using both above-the-line and below-the-line communication.

Task 2: Explain how successful you feel the high-cost use of sponsorship has been to Adidas?

Task 3: Assess the usefulness of Adidas’ use of social media in its ‘Take the Stage’ campaign.

Task 4: Young people are a dominant market segment of Adidas’ target market

5.0 Conclusion.

6.0 Reference.

 1.0 (a) Introduction

Most of the aspects of a business organization depend on successful marketing strategies. In another word, a business’s success lies in its effective marketing campaigns. According to Lorette (2014), marketing is the process of introducing and promoting company products and/or services toward the target customers. Although a company can offer its products and services without marketing campaigns it will not be introduced to optional customers. In the same way, effective marketing strategies and marketing campaigns support organizations in gaining improved market shares, sales revenue and profits margin.

In this report, the reporter has assessed and evaluated several issues related to marketing strategies developed by a particular organization called Adidas. In the first section, the reporter has assessed the importance to Adidas of using both above-the-line and below-the-line communication. In the second section, the reporter has explained how successful the high-cost use of sponsorship has been to Adidas. In the third section, the reporter has assessed the usefulness of Adidas’ use of social media in its ‘Take the Stage’ campaign. In the fourth section, the reporter has justified the dominant market segment (young people) of Adidas’s target market. Finally, the reporter has concluded the overall marketing performance of Adidas.

1.0 (b) Company (Adidas) Overview

Adidas, which is now one of the leading and largest sports brands in the world, launched its journey in 1949 in Germany. It has been a very popular brand across the globe with its three particular stripes logos. It has a very vast range of products from clothing and sports and footwear to a huge collection of accessories including watches, bags, sports-related goods, eyewear, etc. Adidas consists of about 170 subsidiaries including CCM-Hockey, Adidas Golf, TaylorMade, Rockport, and Reebok. Adidas has now offered thousands of employment to the local peoples, where around 46,000. Adidas has been growing up slowly and steadily, wherein in 2014 its sales revenue was about £9 billion pounds. However, it is facing challenges in current competitive marketplaces and meeting customer changing needs and expectations. Therefore, it has been significant for Adidas to consider more deeply its marketing strategies and campaigns (Adidas Group, 2015).

Task 1: Assess the importance to Adidas of using both above-the-line and below-the-line communication.

1.1 Importance of below-the-line communication towards Adidas business

1.1.1 Concept of below-the-line communication

Kotler et al. (2014) define ‘the below-the-line communication or promotion as the forms of non-media promotion or communication, where there are no media advertisings. This means as Palmer (2012) notes, below-the-line communication is the communication or promotion of companies products and services without using any kind of media including TVs, the Internet, outdoor media like billboards, etc. The below-the-line promotion/communication is going to be more popular day after day in the marketing communication mix of business organizations including manufacturers, wholesalers and retailers (Kotler et al., 2014).

1.1.2 Tools of below-the-line communication

The key ‘below-the-line communication or promotional tools are public relations, sales promotion, personal selling, direct marketing and sponsorship. It is more to word-of-mouth communication when selling or market of particular products or services (Kotler et al., 2014).

1.1.3 Personal selling

1.1.3.1 Definition of personal selling

Personal selling refers to the verbal/oral communication with the target customers to market and offers particular products and services (Kotler et al., 2014). Smith (2013) states that personal selling can be considered as more than a mouth-to-mouth situation. This means marketers communicate to the potential customer segments to motivate them towards particular products and services.

1.1.3.2 Positive sides of personal selling

According to Kotler et al. (2014), personal selling start its journey by developing a relationship with potential customers and with an attempt to close the sale. The push strategy of personal selling used by sales forces encourages the potential customers to boost sales. The full strategy of personal selling used by the sales forces supports customers and increases customer retention and loyalty level through after-sale services (Blythe, 2013).

1.1.3.3 Negative sides of personal selling

Kotler et a. (2014) many customers nowadays are misunderstood regarding personal selling arguing that this selling process cheats and lies with buyers. In addition, some customers complain that the quality of the products and services sold through personal selling is poor, consequently they do not recommend others rather ask to avoid them. Furthermore, it is not possible for all marketers to be personal sellers. Palmer (2012) said staff turnover is also higher in personal selling than in others positions.

1.1.3.4 Importance of personal selling to  Adidas’s business

The analysis of the case study discloses that using personal selling techniques is beneficial for Adidas in several ways. Firstly, it is able to give full attention to the target customers through personal selling and meeting customers face-to-face. Secondly, Adidas is able to understand real customers buying behaviors and make sure of the buying process. Finally, it is able to provide available products and service information to the target customers and make a long-term relationship, which supports Adidas to gain improved customer retention and customer loyalty.

However, personal selling has some disadvantages in Adidas’s business. Firstly, employee turnover in the personal department of Adidas is high, consequently, Adidas needs to hire new people and train and develop them which is time-consuming and cost-effective. On the other way, the department faces difficulties in operation, for example, when the sales forces assigned for handling a specific group of customers leave of a sudden, it is difficult and takes time to train and adjust the new one.

1.1.3 Sales promotion

1.1.3.1 Definition of sales promotion

According to Kotler et al. (2012), sales promotion is the technique used to marketing efforts and supplement the advertising. Sales promotion uses several materials including special offers, contests, gifts, promotional discounts, coupons, etc to sell products and services.

1.1.3.2 Advantages of sales promotion

Hill and Sullivan (2010) state that sales promotion influence buying particular products and services in a win-win situation. In addition, it promotes sales and brand image. Further, it attracts more customers including new ones and improves customer loyalty……………………..

 

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