E-commerce Impact on Marketing Planning: A Case Study of Marks & Spencer
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This report critically evaluates the impact of e-commerce on marketing planning through a case study of Marks & Spencer. It covers the evaluation of macro environment, use of marketing planning tools, and the marketing mix for value generation.
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Table of Content INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 Evaluation of macro Environment froman e-commerceperspectiveandits impact on marketing planning......................................................................................................................3 Use of marketing planning tool to develop an integrated marketing plan for company.......4 Marketing MIXand justifythe selectionto assess the possible valuegenerationto implement marketing plan..........................................................................................................7 CONCLUSION...............................................................................................................................9 REFERNECSS...............................................................................................................................10
INTRODUCTION Each and every onlinestores wants toincrease their traffic and conversions. But even after theyputtogether a basis andnormal strategiesit can skill taught and challengingfor them to decide on which marketing tacticsthey shouldtry (Chaouk,Pagliari and Moxon., 2020). This is the reason they put together an overview of an effective marketing tactics and e commerceToolsalongwith the ideas to helpto implement each approaches.Electronic commerce will substantially lower the transaction cost. It eliminates many fixed costs of maintaining brick and mortar shops. This allows the companies to enjoy a much higher margin of profit. It provides quick delivery of goods with very little effort on part of the customer. This report willcover the case study of Marks & Spencercompany. On the basisOf Trade Journal Article on the M&Scompanythis report will criticallyevaluatethe impactof E- commerce has on marketing planing and potential value generation. MAIN BODY 1) Evaluation of macro Environment froman e-commerceperspectiveandits impact on marketing planning. Marks & spacerscompany have huge reputation in theUK market, and they stand on top retailers list of the UK (Datta,Ailawadi and Van Heerde., 2017).This company was established in !884andTill the end of 2019 company hasmore than 1400store location this company has also good hold on e- commerce market, and they sell all the grocery and food item on theOnline website.There aresome Macro factorson the prospective of e- commerce has huge impact on the companies marketing planning. PESTLE ANSLIS Political factors Political factor has huge impact on the companies market planning because on their E- commerce sidesGovernment hasset some ruleswhich should be followed by thecompany and HRmanagement of the Marks & spacerscompany has to follow all thegovernmental rules.Government has make some rules such as proper and shifty packing of the productso whole retail sector have to follow rules made by the government.. government has also put the limit on the specific products so every retailer in this industry have to sell those products on the limit price only, they cannot increase the prices of those products. For example Sugar prices are same at everywhere so every retailer have to follow same price per KG.
Economical factors Inflation and deflation in any country has also impact on the E- commercestores of the retailer industrybecauseprices of the product changes, andthey also have to adjust their p product prices This does not affect the single company but it affect on the whole idnustry.This also has impact on their marketing plan becausethey have to make strategies when provide prices decease and increase otherwise they can lose their customers loyalty. Social factors E- commerce sitesarebeneficial for thecommunitybecausepeople can order their product and food by ordering their product online and Marks & spacers company also provide offers which add value for eachcustomer, and they cantake some benefitssuch as sales, discount onproductswhich has good impact on the marketing planning gof the company because they can advertise their trending product on their own E- commerce sites.This is an social responsibility of the every retailer to add some value for their customersthrough their e- commerce site. For example – Charity could be help for the society Technology Technology plays most important role in theMarks & spacerscompany because internet is used in every store of the M&S Spencer which makes easy for the customers to pay their bill,shopping, they can compere prices of the productsetc. This all are benefitsfor the customers and companyalso can grow their businessand show their presence at the international level (Jindal and et.al., 2020).Technology has huge impact on the whole industry , every retailer are using the WE- commerce sites to take competitive advantages. Legal factor Every company can start their business on E- commerce websites, but they needsome permissions and feel someof thedocumentfor the security purpose.This also affect on the marketing planning of the company. Environmental factor Marks and Spencer promote themselves as a luxury brand, and due to this they are highly concerned about the environmental effect that the brand leaves behind (Khodyakova, Mitin and Khukhlaeva., 2018).They have promoted the concept of sustainable retail industry on multiple occasions and vows to be careful about their production processes. With the current climate
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crisis at hand this move from Marks and Spencer has been highly regarded and various other retail brands in the UK have followed suit. 2) Use of marketing planning tool to develop an integrated marketing plan for company SOSTAC Planning for This is the tool which is helpful for themarketing planning.There aresix stepsin these toolswhich are Situation, Objectives, Tactics, Action and control. Structure of this tool is made on the logic that build on the Dept situation analysiswhich helps to inform subsequent Decisions made about the companies strategy and their tacticsMarks & Spencer company Situation analysis ( SWOT Analysis & porter's five) Strength ď‚·Marks & Spencer company has strong e- commerce influence which is helping them to take competitive advantages, and they are able to achieve their objectives and their goals. ď‚·Attractive offer for the customers on their online website whichencourage them to buy their products Weakness ď‚·customer services ontheire- commerce sides needs an improvement and because of this they are losing their customers (Massingham and Pomering., 2017). ď‚·Poor financial performance of the company Opportunities ď‚·Marks & Spencercompany should investon thedigital marketing, so they can attract customers to buy their products. ď‚·Improvement in customer serviceson theirE - commerce site canhelp them to gain customer loyalty and their trust. Threats ď‚·competition in theonline market is also increasingwhich is becoming threat for the Marks & Spencer company. ď‚·Changing trend in the clothing space is a threat. Porter's five forces Threat of new entrants
New entrants in Retail brings innovation, new ways of doing things and put pressure on Marks And Spencer Group Plc through lower pricing strategy, reducingcosts, and providing new value propositions to the customers. Bargaining power of supplier Bargain power of the supplier has very High force on the company because supplier look for because there are very less row materiel powders are their in this industry. Bargaining power of buyers bargaining power of the buyers is very high for the company because customers have options to go with the other retailers so company have to bargain with the customers. Threat of substitute Almost every products in this industry is samebut innovation and development in the product of M&S can be beneficial for them. Revelry among the existing competition Competition in the retailer industry is very high and M&S company is also facing high competitive pressure from the other competitors on the basis of their product prices. Objectives To enhance sales of the company by 20 % till the end of 2021. To Increase profitability of the company by 15 % till the end of 2021. To expand business in a developing country Till the end of 2021 Strategy ( STP ) Segmentation M&S hassegmented the market demographically so that the customers of different age groups ,social class, ethnic groups and different gender can buy the company’s products. In order to do this company has MADE ITS BRANDS ,STORES, FOOD AND CLOTHIMG BY KEEPING IN MIND different market segments Targeting M&Swillbring their food producer on their e- commerce sitewhich is ready food products and this will be beneficial for the employees who have busy life, and they are not able tomake their food themselves(Nguyen., 2019).They can ready their meal in 2 minute because in a ready mealscustomers just have toput boil water andtheir mealwill be ready.It will help M&S to grow their business, and they can create traffic on their E- commerce side.
Positioning Marks and Spencer has positioned itself as a premium brand in the supermarket industry. As customers are willing to pay a premium price for the M&S brand, so they have set their prices higher because of this premium brand perception in the minds of customers. Tactics ( Marketing Mix) Product Marks and Spencer will alsobringnew product on theironlineshopping theirand also provide offers and discountto their customers, so they can satisfy their needs andtheir demand(Chaouk,Pagliari and Moxon., 2020).Ready meal product is one of them and m people will get delivery of their product in just 30 minute. Place Marks and Spencer will expand their marketmore in a India because they are getting good response from this market and peopleare happy with their product andonlineshopping willbe available by the Marks and Spencer for their customers. Price Company isusing competitive market strategies togain competitive advantages and providingtheir product to the customers in lower pricesrange. Customers caneasily buy product in discount from the e- commerce side of the Marks and Spencer company. Promotion Company will advertise their product on the social media platform because it is the best way to promote their products and this less expensive as compare to the TV advertisement and other marketing tool (Datta,Ailawadi and Van Heerde., 2017).Marks and Spencertarget the people according to their product use and increase traffic on their online website. Action ( Change management) Company will bring change at their workplaceand bring new Equipment which can be run through internet for example – Automaticbilling machinesandtoolsfor the customers which can allow them to make their shopping experience more better.Change management is important for the Marks & Spencer company becausethis will helpthem to increase their productivity, and they can high competitive advantages in the market where they are operating their business. To increase the flow of communication at the workplacecompanycan also
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make theircompanies structuresimple soemployees can communicate their problemswith their superiors and ell them about the problems they are facing at the companies' workplace. Control(Monitoring and controlling) Feedback Company will use feedback techniques to know how their marketing plan is performing. They will take review from the employees who are working in the M&Sto measure the performance of the campaign.This will help the Marks and Spencer company torecord and control the companies process. Feedback will provide them better suggestion and review about their strategies, and they can measure that theirstrategies are working according to the plan or not. If it not then they can change their strategies can achieve their business goals. 3) Marketing MIXand justifythe selectionto assess the possible valuegenerationto implement marketing plan Marketing Mix Product Marks and Spencer will alsobringnew product on theironlineshopping theirand also provide offers and discountto their customers, so they can satisfy their needs andtheir demand.Ready meal product is one of them and m people will get delivery of their product in just 30 minute. Price Company willuse competitive market strategies togain competitive advantages and providingtheir product to the customers in lower pricesrange. Customers caneasily buy product in discount from the e- commerce side of the Marks and Spencer company. Customers can save money on online shopping website(Saari., 2017). Customers will get some points for their shopping and that point can be used in their nextshoppingfrom their sides and save money. Place Marks and Spencer has stores in all over the globeandthey are also thing toexpand their businessmore in a India because they are getting good response from this market and people are happy with their product and online shopping willbe available by the Marks and Spencer for their customers.Company is selling varieties of clothing product which include
man's war, woman, children and adults. Customers also get the options to choose their size and colour of the clothes which helps to satisfy their customers. Promotion Company will advertise their product on the social media platform because it is the best way to promote their products and this less expensive as compare to the TV advertisement and other marketing tool (Weichbrod, Thompson and Norton., 2018). Marks and Spencer target the people according to their product use and increase traffic on their online website.Marketing g plan of the company will also includeSo marketing whichwill increase trafficon their websites, and they can make new customers who can buy their product from their website. Process To make processof their company smooth M&S will bring new equipment at their workplaceto increase their productivity and grow their business moreglobally and show their presence on the international level. People M&Swill providetraining totheir employees, so they canincrease their skillsand working efficacywhich will help M&S to take competitive advantagesinthe market.They will also focus on the group activities for the employees to create working environment for the employees and each employee can work as a team in a organization. This will also increase the efficiency of the work. Physical Evidence Marks & Spencerhavemore than 1450 stores in all over the world which shows their Physical presence, and they are looking for expansion in the Indian country, so we can say that Marks & Spencer has presence in retail industry. CONCLUSION AS per the report has beencover the case study of Marks & Spencercompany on the basis Of Trade Journal Article on the M&S company this report has been critically evaluated the impactofE- commerce has on marketing planingand potential value generation. It has been use SOSTAC plan to developed marketing plan for theMarks & Spencer company. In the end of this report has been concluded marketing mixof the Marks & Spencer company.
REFERNECSS Books and journal Chaouk, M., Pagliari, R. and Moxon, R., 2020. The impact of national macro-environment exogenous variableson airport efficiency.Journal of Air Transport Management.82. p.101740. Datta, H., Ailawadi, K. L. and Van Heerde, H. J., 2017. How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?.Journal of Marketing.81(3). pp.1-20. Jindal, P. and et.al., 2020. Marketing-Mix Response Across Retail Formats: The Role of Shopping Trip Types.Journal of Marketing.84(2). pp.114-132. Khodyakova,N.V.,Mitin,A.I.andKhukhlaeva,O.V.,2018.ProjectingPersonality Developing Pedagogical Systems in View of Students’ Educational Needs and Factors of Social and Cultural Macro-Environment.Psychology and Law.8(3). pp.240-253. Massingham, P. R. and Pomering, A. A., 2017. Introducing Knowledge Management to the Marketing Mix. Nguyen, H., 2019. Facebook marketing plan for a Digital Sales Company-Case Havain. Nguyen, V. Q. A., 2019. Digital Marketing Plan for an International Event. Case: Guinness Sauna event. Saari, M., 2017. Social Media Marketing Plan for Lakeside Cafe. Weichbrod, R. H., Thompson, G. A. H. and Norton, J. N., 2018. Environmental Factors: MacroenvironmentversusMicroenvironment--ManagementofAnimalCareandUse Programs in Research, Education, and Testing.