The Role of Marketing in Creating Value for Customers

This report discusses the role of marketing in creating value for customers and the influence of stakeholders on marketing activities. It explores concepts such as branding, Ansoff matrix strategies, and relationship marketing. The report focuses on Gucci, an Italian luxury fashion brand, and its marketing strategies.

GUCCI

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
THE ROLE OF MARKETING IN MAKING VALUE FOR CUSTOMERS................................3
Definition of marketing concept or societal marketing concept..................................................3
Advantages of marketing to customers........................................................................................4
Branding......................................................................................................................................4
Ansoff matrix strategies...............................................................................................................5
Relationship marketing................................................................................................................6
STAKEHOLDER ENGAGEMENT AND THEIR INFLUENCE ON THE ACTIVITIES OF
MARKETING.................................................................................................................................7
Definition of stakeholder.............................................................................................................7
Internal and external stakeholders...............................................................................................7
Way to communicate with stakeholders......................................................................................8
Impact of stakeholder on marketing activities.............................................................................9
Recommendations........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing function of a company plays an excellent role in creation of value of
customers. This function mostly give chance to a business or an organisation for effectively
promoting its products and services in the market. Without conducting different marketing
strategies no venture or business can achieve its different targets in the selected segment of
market. On the other hand, there are stakeholders also very essential for any business, because
these are the only people who provides a specific base to the business for effectively running its
business operations in the market place (Fan, 2019). This report discusses the great role of
marketing function in making value for customers in the context of Gucci company. Gucci is
basically an Italian brand that offers luxury fashion stuff, headquartered in Florence Italy. There
is engagement of stakeholder, and their influence on the activities marketing also has been
discussed in this report.
THE ROLE OF MARKETING IN MAKING VALUE FOR CUSTOMERS
Definition of marketing concept or societal marketing concept
Marketing is generally one of the main functions for Gucci as HRM, IT, Production. This
marketing is the only function that gives great opportunity to this company for effectively
promoting its brand in the market. Currently there are very high competition in the international
luxury fashion market, in which the marketing is the only function that gives opportunity Gucci
for gaining appropriate competitive advantage in the market. So that, without conducting
marketing function, this luxury fashion brand can’t suffer in the market. Existing marketing team
of company is very active in its existing job role, because this team mostly runs such marketing
campaigns in the market place that fully positively affected to the company’s sales ratio.
In this modern or dynamic world, top-level management of Gucci has given specific
orders o its marketing team for using different modern strategies of marketing, so that currently
marketing team of this company takes excellent advantages through the digital marketing
strategy (Ubaid, 2020). Basically, digital marketing strategy is one of the best examples of
modern marketing strategies, in which this strategy mainly supports to Gucci marketing team for
running its different marketing campaigns through various digital platforms. Through conducting

these all marketing campaigns, this luxury fashion brand is able to attract lots of new customers
towards its brand at the international level.
Advantages of marketing to customers
The marketing function is very beneficial for a company, but this is very beneficial for
different customers as well. Reason is, the marketing function of companies or ventures gives
them opportunity to know about the existing trends of the market. With the support of marketing
they enable to identify what stuff currently has provided by various companies. Regularly, there
are lots of new things coming in the market on daily basis which can give excellent satisfaction
to different customers in the market after consumption. In this situation, with the support of this
marketing function of companies, customers able to aware about what kind of products and
services are provided by these companies in the market.
There is marketing function enable to customers for get informed about prices and cost of
various services and products (Lucchiari and Mercurio, 2017). Basically, many times different
companies have shared their prices of products and services while conducting marketing
function. Marketing is very essential to different customers in the market in the terms of
purchasing an appropriate product or service. Reason is, by viewing different campaigns of
marketing, a customer can simply compare products and services of different companies by price
wise, quality wise, quantity wise etc. According to these factors, a customer literally takes lots of
advantages through marketing function of various businesses or ventures.
Branding
Branding is generally known as the market image of a company. It means, if any
company has very great market image, in this condition it has well reputed brand value as well.
Currently those companies or ventures are simply increasing their branding in the market which
provided excellent services to customers in various market segments. In this dynamic & modern
world, there are effective branding is everything for a company or venture, so that top-level
management in Gucci need to put its huge efforts for making effective branding of their
respective brand in the market. Currently marketing function plays very appropriate role for
Gucci for increasing their levels branding. Reason is, after having an effective branding, a
business can simply gain huge profit in the selected market segment.

Advantages of Branding
Branding is helpful for different businesses to represent its excellent image of business in
the market (Paulose, 2016). There are branding creates value for customers as well. Top-level
management of Gucci should always try to maintain an effectiveness within its brand, because
this attracts lots of new customers towards own brand. Of course, this luxury fashion company
already has an effective branding at the international level, so that upper management of this
company should try to takes different steps towards maintaining this effective branding in the
future as well. With the support of effective branding, this company is able to create great value
for customers. Currently lots of customers in the market really like to buy services and products
from this Italian luxury fashion brand.
Ansoff matrix strategies
Currently lots of companies in the market are taking many advantages through Ansoff
matrix strategies, so that existing management within Gucci also has required to consider these
all strategies of Ansoff matrix. This is very necessary to Gucci to follow the concept of these
strategies for gaining excellent profit margins at the international level. There are generally four
strategies has included in this Ansoff matrix, in which these all strategies have been discussed
below;
Market penetration: This is the first strategy in this matrix that can give opportunity to Gucci for
increasing its sales ratio by selling its existing products and services in the existing segments of
the market. While using this strategy, the company has not required to boost its marketing
function, because in the existing market, most people or customers has already aware about
various exiting brand (Ranfagni and Berti, 2019). In the case of Gucci, there are almost all
people aware about this brand where it operates, and this is the main that, this company can take
lots of advantages through market penetration strategy of the Ansoff matrix.
Product development: This is the next important strategy in the Ansoff matrix, in which upper
management of this company should be taken lots of advantages through this strategy as well.
Generally, product development strategy will give chance to this luxury fashion brand for
developing or launching a new service or product for the existing market segments. By following
this strategy, this company will be able to increase its market share in the existing segments of

market. In this situation, top-level management of this company has highly required to consider
his strategy also in its daily business operations.
Market development: Market development strategy under the Ansoff matrix will give
opportunity to Gucci for entering in the new segment of market by using existing product and
service. Currently the company has wide range of products and services, in which it has highly
required to launch these all products in the new segments of market. Basically, this strategy of
marketing will be given chance to this company for highly expanding its business operations in
the international luxury fashion market.
Diversification: This the last or final strategy in the Ansoff matrix, in which top-level
management at Gucci has highly required to take lots of advantages through this diversification
strategy as well (Ranfagni and Berti, 2019). This strategy mainly supports to different companies
or businesses for developing their products and services for launching them in the new segments
of market. Currently the Gucci has an effective research and development (R&D) team, so that
upper management of this company need to give order its R&D team for innovating and
developing new range of products for entering in the new market segments. This strategy of
matrix will definitely support to Gucci for increasing is per year revenue.
Relationship marketing
This is the next very important term of the marketing. Basically, by conducting
operations of relationship marketing, this company will be able to maintain an effective
relationship with its different customers in the market. Generally, there are lots of businesses in
the market puts their huge efforts to make effective relations with various customers and people
in the selected market segment, because after having effective relations with customers, this
company will be able to generate excellent profit margins in the market. Reason is, most
customers in the market like to buy products and services only from those companies which
maintains effective relations with different customers.
There are loyalty plays very excellent role in the terms of making effective relations in
the market. In this situation, the Gucci needs to be fully loyal with it’s all customers by offering
them quality products and services on appropriate prices. By doing this, Gucci can simply make
its excellent relationship with different customers in the market. Maintaining effective

relationship with customers in very essential to this company for gaining huge profit in this
highly competitive market. So that, Gucci’s marketing department has required to boost its
operations just because of making effective relations with various customers in the market
(Shoaib, 2016). By following relationship marketing, this luxury fashion brand will defiantly
gain huge profit in the selected segments of market.
STAKEHOLDER ENGAGEMENT AND THEIR INFLUENCE ON THE
ACTIVITIES OF MARKETING
Definition of stakeholder
Stakeholder of a company is mainly people who has somehow linked with company, in
which these people highly impact the marketing activities of that company. In this situation, top-
level management of Gucci should try to make an effective engagement within its different
stakeholder, because these are only people who creates a base for the company to systematically
conduct its various business operations in the selected market segments. Currently customers,
employees, leaders, government, suppliers, marketers, financial institutions are some major
stakeholder of this company, so that upper management of this company has highly required to
make some appropriate strategies towards maintaining an effective engagement and relationship
with its various stakeholder (Liu and Li, 2019). Reason is, without contribution of stakeholder,
this luxury fashion brand can’t survive in market place.
Internal and external stakeholders
Stakeholder of a company are mainly divided into two categories, first is internal
stakeholders and the second is external stakeholders, in which upper management of this
company has required to make effective engagement with these both types of stakeholders. There
are key stakeholders of these both internal and external categories have been discussed below;
Internal Stakeholders
Employees: An employee is one of the main internal stakeholders of Gucci, in which upper
management of this company should be taken some proper decisions towards promote effective
employee relationship with its different employees. Currently employees are the only stakeholder
that puts their huge efforts in the company’s daily business activities to achieve its different

targets on time in the place of market. Without contribution of this stakeholder, this company
can’t image its existence within market place (Ok, 2018). That’s why an employee is prime
stakeholder to Gucci.
Manager: The manager is another key stakeholder of this company, because a manager has
always hired by a company for perfectly managing its different business activities and
operations. A manager always works in the internal business environment of a company, so that
the manager at Gucci is the internal stakeholder of this company. The manager plays very
appropriate role in the all over growth of Gucci. Basically, this stakeholder puts its excellent
efforts in the terms of managing different activities of Gucci in very specific manner. That’s why
the manager is prime stakeholder of this company.
External Stakeholders
Shareholders: There are a shareholder is the prime external stakeholder of this luxury fashion
company, because it plays very appropriate role in the terms of providing potential funding to the
company (Lilja, 2019). Basically, this stakeholder is one of the most potential sources of
funding, so that Gucci try to make an effective relationship and engagement with its various
stakeholders.
Government: The government of a country is also a key external factor to the company, in which
existing management of Gucci responsible to take some a productive step towards maintaining
an effective engagement with this stakeholder, otherwise, company can’t simply operate its
different business operations in the market. Basically, currently Gucci operates within lots of
different countries, in which upper management of this company fully responsible to follow the
guidelines and different rules & regulations which has provided by the local government of
different counties where it has served.
Way to communicate with stakeholders
Currently Gucci uses a very specific way to systematically communicate with different
stakeholders (Laksowska-Rutkowska, 2016). Basically, the management of Gucci has very well
communication skill that helps to company for effectively communicate with different
stakeholder. It is very necessary to this company for always effectively communicating and
interacting with different customers, because with the support of effective communication, Gucci

will be able maintain an effective relationship and engagement with its various stakeholders.
Currently most stakeholders of this company have fully satisfied with the company’s
communication values, so this company is able to make effective engagement with various
stakeholders.
Impact of stakeholder on marketing activities
There are Gucci’s stakeholders highly affects its marketing activities in the business
environment (Diaz Soloaga and Garcia Guerrero, 2016). Basically, the marketing team of
company has always required to make and use different marketing strategies on the basis of
stakeholders’ nature and attributes. Without considering stakeholders while conducting
marketing strategies, this company can’t achieve appropriate outcomes from its marketing
function. This is the main reason that, these stakeholders highly affect marketing activities of this
Gucci. Suppose, currently customers are the key stakeholder of this company, so that customers’
demand and wants always impact to Gucci for running such marketing campaigns in the market
that can attracts lots of customers towards own brand for fulling their demands and wants.
Recommendations
Top-level management at Gucci has always required to maintain an effectiveness within
its business environment for putting very positive impression on different customers
(MAHMOUDIAN, 2019). The management should try to maintain effective relationship and
engagement with its various stakeholders, because these are the only people who enable to this
luxury brand to gain excellent profit in the market. On the other side, there are employees also
major stakeholder of company, so the management should make productive employee relations
as well for gaining excellent profit margins.
CONCLUSION
On the basis of above findings, it can be concluded that the marketing function is one of
the major functions for Gucci, because this function provides a specific path to company for
attracting lots of new customers towards its own brand. The company need to follow different
strategies of Ansoff strategies as well (Hackley and Hackley, 2017). On the other side, there are
various main stakeholders also has been discussed above in this report which highly affects
Gucci marketing activities, so marketing team should make its strategies accordingly.

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