Mix marketing

Page 2: The marketing mix

For most organisations the marketing function is vital for survival. The Chartered Institute of Marketing defines marketing as:

‘Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.’

This definition outlines the key purposes of the marketing function. These are:

⦁ to compete in a competitive marketplace

⦁ to identify and anticipate consumer requirements and then satisfy these requirements

⦁ to make a profit.

As a market-orientated organisation adidas continuously identifies and reviews consumers’ needs to ensure its products meet these needs. It aims to exceed customer expectations by adapting its product portfolio to meet the changing needs of consumers. It is this focus on its customers, teamed with product and marketing innovation, that plays a key role in adidas’ success.

Every organisation must look at its marketing in relation to the marketing mix. The marketing mix, often referred to as the 4Ps, is a means of assessing how to balance the elements of the mix in order to meet customers’ needs. The elements include:

⦁ the right product

⦁ sold at the right price

⦁ in the right place

⦁ using the most suitable form of promotion.

No two businesses are identical, as such, every organisation must decide on its own balance of the 4Ps to suit its consumers’ needs. There are many internal and external factors that will influence an organisation’s marketing mix. Key factors include the size of the business, the markets it operates in and available resources.

Sports marketing

For a global organisation like adidas its marketing mix is tailored to specific markets. This is known as international marketing as it takes cultural and social differences into account when planning marketing activity. Sports marketing is a key focus for adidas’ marketing mix. The growing popularity of sports as entertainment has led to a huge increase in sports marketing. The founder of adidas was one of the first people to see the potential of this form of marketing when he sponsored the FIFA World Cup back in 1978. Sponsorship involves a business paying to be associated with another organisation, event or TV programme.

Like many new developments, the sports marketing function has changed dramatically since its introduction. Just consider Sony’s first ever Walkman in 1979 to today’s iPod. The same dramatic difference is evident in the sports marketing arena with sponsorship deals now worth tens of millions of pounds. Rather than simply trying to gain positive associations with particular sports, companies use sports marketing to drive the brand and increase sales.

Page 3: Marketing strategies

Within the marketing function of any organisation there will be key goals, or objectives, to be achieved. For example, increasing the market share by 3% or entering a new market overseas. To achieve these marketing objectives requires a plan that details the actions needed. These plans are referred to as marketing strategies. A key challenge for adidas’ marketing strategies is finding innovative ways to inspire and engage its 14-19 year old target audience.

Sponsorship

For adidas, London is a key focus for the sportswear market, for both performance sportswear and sports fashion. This market sets more trends than anywhere else in the country. London 2012 gave adidas a platform to target this audience but with a global reach. The sponsorship deal obtained by adidas was the broadest set of sportswear rights in Olympic history. It became the Official Sportswear Partner of the London Games and the exclusive licensee of all branded (adidas + London 2012) and event branded (London 2012 only) clothing. From these rights adidas set four key marketing objectives:

⦁ To ensure a clear association as Sportswear Partner of London 2012, Team GB and Paralympics GB.

⦁ To engage and excite the 14-19 year old audience in order to drive brand preference in the UK.

⦁ To deliver a Licensed Product Return on Investment (ROI) (branded and event branded licensee rights).

⦁ To become the most talked about sports brand in 2012.

A major aspect of this sponsorship deal was the athletes’ kit. The kit provided the opportunity to be innovative and excite the target audience whilst creating products to meet commercial sales targets. Market research undertaken by adidas showed the youth audience wanted something ‘untraditionally British’. Designer Stella McCartney fulfilled this brief with her deconstructed union flag design.

Preparations to equip the team started 2 ½ years before the Games were due to start. Over 550 athletes were fitted for over 680 items of kit. This meant the marketing activity for the campaign also started long before the Games in 2012. A photo booth shoot captured every athlete in their kit. These images were used to create excitement around the Team GB kit product launch.

Page 4: Promotion

All elements of the marketing mix are important. However, in increasingly competitive markets innovative methods of promotion can create a competitive advantage. Promotional activity is used to communicate with consumers about the brand and its products. As there were more than 50 London 2012 sponsors, adidas needed to ensure it communicated the right messages, at the right time, through the appropriate channels for its target audience. It aimed to create national support for Team GB through its ‘Take the Stage’ campaign.

The acronym AIDA is useful when planning promotional activity, promotion should aim to:

⦁ initiate awareness amongst consumers

⦁ generate interest for and desire to have the product

⦁ ensure action to purchase.

Above-the-line promotion

There are many different methods of promotion. Above-the-line promotion refers to traditional methods of advertising, such as, print adverts in magazines and newspapers, billboards or online and TV advertisements. This form of promotion

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