Macro Environmental Factors and Marketing Planning in E-Commerce

This report discusses the macro environmental factors that impact marketing planning in E-commerce. It focuses on Marks & Spencer and its marketing plan, including the implementation of the marketing mix. The report also highlights the importance of evaluating macro environmental factors for effective planning.

E Commerce Business
Management
(Assessment-2)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
a) Macro environmental factor from E-Commerce perspective and influence over marketing
planning..................................................................................................................................1
Marketing Plan.......................................................................................................................3
Consider the marketing mix and justify your selection to assess the possible value generation
following the implementation of your integrated marketing plan..........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
E-Commerce is a platform that allows the transmission of goods or services, fund and
data over an electronic network by connecting people throughout the world (Pickernell and et.
al., 2013). These business transactions mainly perform either as business to business, consumer
to consumer, business to consumer etc. For performing this project Marks & Spencer is taken
into consideration which is a larger multinational retail organisation headquartered in London. It
operates over both the channel i.e. e-commerce as well as brick & mortar stores in order to offer
its product or services throughout the world. This report is a continuation of assignment one
which is based on explanation of marketing processes, omni channels and current marketing
practices that Marks & Spencer perform. Now, this report focuses over critically evaluating the
macro environmental factor as per E-commerce perspectives. In addition to this it further
represent marketing plan of M&S and at last implementation of marketing plan while
considering justification regarding the marketing mix.
MAIN BODY
a) Macro environmental factor from E-Commerce perspective and influence over marketing
planning
E-commerce provide a platform to businesses for performing a exchange of good and
services to the customer in more effective and quicker manner with the help of internet. By
making use of E-Commerce platform it become easier for Marks & Spencer to attract larger
number of customers toward its services and provide them a medium to easily access the services
(Chaffey, Hemphill and Edmundson-Bird, 2015). But in order to effectively implementing and
performing the operations with Ocado to deliver fast food it is crucial to firstly perform macro
environmental evaluation in order to formulate effective marketing planning. Hence for
performing macro evaluation PESTLE analytical tool can be used which is mentioned below:
Political: - The threat for e-commerce business is relatively lower as compare to physical
businesses but still there are certain hurdles that M&S is required to consider that are being
imposed by government in term of certain standards like, changes in regulatory practices as well
as regulations it maintains (Salehi and et. al., 2012). Marks & Spencer is required to follow
certain rules that are related with the content it present, security measures and confidentiality to
maintain for the security of customer's confidential and personal information. As M&S has tied
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up with Ocado to deliver online food faster, government will support as it help in increasing the
job opportunity for employees (Chen and et. al., 2015).
Economic:- These factors have direct interaction with businesses which also influence
the business profit or revenue. The major challenges that majority of segments get experienced is
economical recession which highly affect the spending power of consumers and they started
approaching items that are reasonable. This also influence the use of E-commerce platform as it
require greater maintenance on regular basis (Wankmueller, 2015). But now UK started
recovering from recession period and online platform brings up several economical benefits to
Marks & Spencer. As by making effective utilisation of online platform, Marks & Spencer be
able to reduce its cost by minimising the error or wastage which leads to economic enhancement.
Despite of this E-commerce business also maintain the flow of foreign currency to country which
leads to economical development, hence being promoted by government (Segovia, Szczepaniak
and Niedzwiedzinski, 2013).
Social:- This involve the factors that have a huge influence over the demand and supply
of product or services due to change in taste and preferences of customers. The changes in trend
have a huge influence over the performance of business but e-commerce platform provide a
medium to directly interact with customers and determine their demand so that quick changes
can be accepted. This is advantageous factor for Marks & Spencer as had a tie up with Ocado in
order to provide food delivery services to its customers. By making use of online platform it not
only be able to reduce wastage but also be able to determine the demand of customers so that
product can be made available accordingly (Hasan,Morris and Probets, 2012).
Technological:- This factor involves up-gradation of technology, new launch, substitute
technology etc. These all are the factors which influence the business operations along with the
manner in which it make use of technology to perform operations or deliver product or services
(Qi and et, al., 2016). This is consider to be a major risk present in front of Marks & Spencer,
though it make use of advanced technology to make use of online platform and deliver high
quality services. But the major risk present in front of it is technological environment brings
changes frequently which in turn may affect the operations of company with the launch of new
technology (Teo, Taniguchi and Qureshi, 2012). Hence regular manipulation and up-gradation of
technology is major risk for M&S as it create several issues for current operations by making
technology obsolete, changing customer demand, market competition etc.
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These all are the factors which influence the performance of Marks & Spencer as these
are the immediate factors that may affect the manner in which operations are being performed.
Hence, it is crucial for Marks & Spencer to consider these factors while formulating marketing
plan so that policies can be formulated as per the requirement of government in a manner that
leads to maximum economic benefits. Despite of this it also helps M&S in determining the major
influence that technological as well as social factor may have over the operations so that it can be
managed with the help of proper planning (Laudon and Traver, 2016).
Marketing Plan
Executive Summary
Mark and Spencer is a leading British multinational retailer suited in Westminster,
London. In order to raise the brand recognition is coming years high standard quality food should
be served at nominal rate. Before it Mark and Spencer food was sold at premium price and was
preference on special occasion but now they are coming up with foods such as salmon, trifle, hot
cross buns and so on (Patil and Divekar, 2014). In order to gain huge profit organization is
commercializing the food through social media platform, campaigns, sponsorship etc. Moreover,
business is tying up with Ocado in order to deliver the food to the end users in the specified time.
By this M&S will be able to capture huge market ratio as well as goodwill can be raised in the
eyes of the customers.
Mission: The mission statement of Mark and Spencer is to serve quality food products to
the customers at nominal price. Employees of the organization are working day and night to
meet the set standards.
Vision: The vision statement is to be the leading food production firm among it's rivalry.
Both on- the job and off- the job training is provided to the customers in order to accomplish this
statement continuously over the years.
Situation
SWOT analysis:
Mark and Spencer AWOT analysis is illustrated as under:
Strengths Weaknesses
 Firm has strong cash flow
 Effective in tracking record of
 Business is not successful in integrating
with other culture.
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developing new food items in the
market.
 Requires huge investment for
implementing modern plant and
machinery. From the past few years
tremendous reduction in sales of food
items can be seen due to which it is
difficult to invest funds in it.
Opportunities Threats
 Opening of government green drive is
the biggest opportunity in order to
procure M&S food products.
 Increasing raw material is turning out to
be the biggest threat for M&S revenue
generation.
Objectives
Smart objectives:
 Mark and Spencer sales ratio decreased by 2.1 %. In order to raise the sales volume
special discount on food products are given for the first three month.
 To be in the 24th rank out of the list of 27 groceries organization is selling the food items
at nominal prices in order to attract large number of customer.
Strategies
STP:
Segmentation: Mark and Spencer is segmenting the food products as per the customers
requirements. They are providing quality food products for daily use as well as for special
occasion too. By this brand recognition can be done easily.
Targeting: All section of the people are the targeted customers who can easily purchase
the food item at nominal price. Firm is coming up with food product like, salmon, trifle, hot
cross buns and so on in order to meet the customers needs and preferences.
Positioning: Mark and Spencer want to position the food items in the mind of the
customers. So that it can be in their tip of the mouth. By this sales volume can be raised
tremendously and huge revenue can be gathered easily.
Tactics:
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Product: The food served to the customers of M&S should be according to their
expectation level so that they can be made satisfied. Food like, salmon, trifle, hot cross buns and
so on are new dishes which are offered to the customers which is available on normal days as
well. By this huge revenue can be gathered.
Price: The prices of the food trifle, hot cross buns etc. are nominal so that very section
of the people can purchase it and enjoy it. Modern tools are adopted due to which labour cost is
reduced. By this M&S is able to offer their food at nominal price so that they can raise the sales
ratio of the food.
Place: M&S food like, salmon, trifle, hot cross buns etc. are available on both online and
offline platform. Customers can easily order their food through online sites or else can visit the
near hotel or restaurant in order to full-fill their demand. As food are available on both platform
customer base can be raised for the food of M&S.
Promotion: Social media platform is used to promote their food. Customers are mostly
active on social sites so it is the best way to attract them towards their food. By this overall
productivity and profitability ratio is raised for M&S food.
Action Plan:
Marketing budget: Funds are the backbone of the business. Business can not be
operated effectively if it lacks behind in funds. In order to promote the product in the cut throat
competitive world it is essential to have sufficient cash amount. The marketing budget is
prepared below:
Basis Amount ($)
Catalogues 20000
Advertisement expenses 50000
Plant and machinery installation expenses 80000
Promotion activities 30000
Total 180000
Controlling and monitoring: M&S food is controlled and monitored so that their quality
can be mentioned and necessary improvements can be done. By this high standard food is
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served to the customers so that they do not switch to other brand to meet their satisfaction level.
By monitoring wastage of resource can be done and food can be offered in low price.
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Consider the marketing mix and justify your selection to assess the possible value generation
following the implementation of your integrated marketing plan.
As it has been analysed that consideration of marketing mix is very essential for the
organisation in order to offer the products and services in marketplace successfully. And also, it
has been evaluated that formulation of an effective marketing plan is required in order to bring
efficiency in the development of organisation. As per the above discussion various
recommendations can be given to M&S which is describing below:
 As in the previous stage, due to their premium pricing strategies they were not able to
attract various customers towards their products so it is recommended to the company
that they must give their emphasis on espousing economy pricing strategy so that they
can attain the customers attention on regular not only some specific occasions or parties.
 It also can depicts that while using economy pricing they must consider the quality factor
in their products so that customers trust and belief in the organisation can be maintained
so as to attain higher profitability and sustainability in marketplace.
 In the present scenario, M&S is giving their major focus on using tag lines and slogans
for promoting their products but in order to create more awareness in the customers they
requires to adopt social media concept as it will help them in attracting a range of
consumers towards their food product and also with the help of this they can get the
position of 24 from the list of 27 groceries.
 As M&S is using premium pricing strategy in the present scenario due to which they
were only targeting to those customers who belongs from the higher class family but if
they will give their emphasis on using economy prices then they can attract every type of
people which enables them to attain higher revenue and recognition in the marketplace.
 From the last years company was facing the issue of decreasing level of food items such
as salmon, trifle, hot cross buns etc. due to its lower level of investment in technologies.
So it is recommended to M&S, that they needs to make proper management in funds by
using proper financial mediums so as to easily invest appropriate funds in adopting new
technologies so that they will be able to meet the emerging needs and requirements of
customers and to get higher success.
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CONCLUSION
From above presented information it can be summarised that E-commerce platform plays
a crucial role in growth and success of a business as it provide a platform with the help of which
an organisation can directly interact with its customers or business partners and be able to
perform business transactions in most significant manner that yield maximum benefit to
organisation. But in order to make effective utilisation of E-commerce platform it is crucial for
an organisation to effectively evaluate the macro environmental factors so that risk and
opportunities can be determined prior to marketing planning. This information further contribute
toward formulating effective marketing or strategical plan so that operations can be performed in
effective manner while dealing with the challenges which may affect the performance as well as
sustainability of business at marketplace.
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REFERENCES
Books and Journals
Chaffey, D., Hemphill, T. and Edmundson-Bird, D., 2015. Digital business and e-commerce
management. Pearson UK.
Chen, J.V. and et. al., 2015. E-commerce web site loyalty: A cross cultural
comparison. Information Systems Frontiers, 17(6), pp.1283-1299.
Hasan, L., Morris, A. and Probets, S., 2012. A comparison of usability evaluation methods for
evaluating e-commerce websites. Behaviour & Information Technology, 31(7), pp.707-
737.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Patil, H. and Divekar, B.R., 2014. Inventory management challenges for B2C e-commerce
retailers. Procedia Economics and Finance, 11, pp.561-571.
Pickernell, D. and et. al., 2013. E-commerce trading activity and the SME sector: an FSB
perspective. Journal of Small Business and Enterprise Development, 20(4), pp.866-888.
Qi, L. and et, al., 2016. Structural balance theory-based e-commerce recommendation over big
rating data. IEEE Transactions on Big Data, 4(3), pp.301-312.
Salehi, F. and et. al., 2012. The impact of website information convenience on e-commerce
success of companies. Procedia-social and behavioral sciences, 57, pp.381-387.
Segovia, J., Szczepaniak, P.S. and Niedzwiedzinski, M. eds., 2013. E-commerce and Intelligent
Methods (Vol. 105). Physica.
Teo, J.S., Taniguchi, E. and Qureshi, A.G., 2012. Evaluating city logistics measure in e-
commerce with multiagent systems. Procedia-Social and Behavioral Sciences, 39,
pp.349-359.
Wankmueller, J.R., 2015. Methods and systems for using physical payment cards in secure E-
commerce transactions. U.S. Patent 8,965,811.
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