Marketing Audit and Market Segmentation for Marks & Spencer

This document discusses the concept of marketing audit and market segmentation in the context of Marks & Spencer. It explains how marketing audit helps in aligning business goals and objectives. It also explores different types of market segmentation used by Marks & Spencer to target their customers. The document provides insights into the company's marketing strategy and its focus on customer needs and preferences.

Introducing to marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing audit of business current performance..................................................................3
Market segmentation that is useful to target the business within retail marketplace.............6
Buyer's behaviour to meeting requirements...........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing audit is defined as the aspect in which marketing plan, strategies and
objectives are included. This is a comprehensive aspect which is covering different areas and
factors of marketing (Nicoletti, 2019). Marketing audit is one of the crucial element in which a
business can attain goals and objectives in prominent manner. This is the system which involves
around micro and macro environment and operations so that performance of the organisation can
be aligned in direct manner. This report is associated with concept of marketing audit in the
context of Marks & Spencer which is headquartered in UK. The company is providing clothing
item, food products in accordance with affordable rates. In the report market segmentation is
going to be covered so as to acquire customers and their behaviour in appropriate manner.
Besides this the report is covering marketing strategy in which company is using them in order to
analyse consumer behaviour so that to lead the market in order to enhance overall market
performance.
MAIN BODY
Marketing audit of business current performance
Marketing audit is one of the systematic movement which is used by businesses in order
to analyse, interpret and evaluate marketing environment of the business so that business goals
and objectives can be aligned in appropriate manner. Marketing audit is one of the crucial aspect
in which various issues can be faced in systematic manner. Marketing audit is facing major
issues in which performance of the organisation can be enhanced and align with marketing goals.
For Marks and Spencer their marketing manager is conducting marketing audit in which internal
and external environment is being analysed in order to get higher success opportunities and
providing competitive edge as well (DJAKELI, 2018).
The mission of Marks and Spencer is related with providing appropriate quality to their
customer so that empathy and trust can be maintained by the organisation. Marks and Spencer is
wholly dedicated to managing innovation and quality within product and services. The objective
of Marks and Spencer is to enhance their profitability and to satisfy market demands in effective
and proficient manner. The company is performing PEST analysis in order to analyse market
condition and SWOT analysis for examining internal capacities in prominent manner.
PEST analysis of Marks and Spencer

Political factor: In UK European committee is having power to make decision in
effective manner along with they have free trade policies in which exchange regulations are
aligned with business objective of an organisation. For Marks and Spencer this is a easier task
that they offer business offerings in such a manner that cost advantage can be attained by them.
This is the major reason that high advantage is being attained by competitors in respect of cost
and market structure which intensifies overall industry competition (Larina and Lutsii, 2018).
Economic factor: These are the factors which are related with interest rate, inflation rate,
employment rate and many more other factors. Within this factors Marks and Spencer is having
power to attain market advantage and to provide focus on needs and demands of their customers
in equitable manner. This factor is providing negative implications as as in order to increase
quality cost in automatically increased which provide the company lesser coverage over market
Social factor: Within this customers and society is playing major role as taste and
preferences are being associated with this factor. In the current time customer requirements are
undertaken as the prior aspect in which each and every business is trying to deal with customers
in effective manner. For Marks and Spencer consumer perception is highly prior for them which
may affect their sales and profitability in positive or negative manner. In this aspect Marks and
Spencer may face various issues as in the industry of clothing trends are changing in frequent
manner. In the industry of retail new trends are being inhaled by the industry which is the major
reason of higher profitability within industry.
Technological factor: These are the factors which are related with using latest and
prominent technology in order to operate the business in most effective manner. For Marks and
Spencer marketing manager is having responsibility to provide latest insight to business in
relation to promotion and sales so that emerging technology can be used within business and
goals can be attained effectively. By using latest technology Marks and Spencer can grab
attention of their customer in prominent way so as to provide new insight to the business in short
span of time.
SWOT Analysis of Marks and Spencer
Strength Weaknesses
 The prominent strength of Marks and
Spencer is that the company is
associated with providing products with
 Marks and Spencer is facing higher
competition within industry of retail in
which the company is trying hard to

their own label due to which they are
maintaining quality at ultimate level.
Besides this the company is providing
their goods in prominent design along
with economic cost (Bondos, 2019).
 Another strength of Marks and Spencer
is that the company is having 80000
employees due to which the company is
able to attain profit and sales in
effective manner.
deal with gaining market share and
position as well.
 Company is facing probability of facing
losses due to lowered supply chain
management.
Opportunities Threats
 Marks and Spencer is having prominent
opportunity to develop online presence
so that to attract higher customer base
in minimal time period.
 The company is majorly focused over
attaining new market segment in which
higher revenues and market
prominence can be earned by them.
 Marks and Spencer is facing fierce
competition with their rivals due it
which they are requisite to compare
cost with various competitors.
 Policies of government is highly
fluctuating which is affecting sales and
probability of the industry.

With the above analysis this can be examined that marketing manager of Marks and
Spencer that position and marketing strategy of the company is trying to attain sustainability for
longer duration of time (Sushko and Kaznin, 2019). The company is keeping their focus on
managing digital media campaign so that to attain higher interest of customers. Customers are
trying to gain knowledge regarding global market so that to help Marks and Spencer in order to
provide aspects of trust and empathy. The company is facing issues related to meeting customer
demands as there are higher competitors existed within market. Besides this communication is
another aspect in which market advantage is being attained and in this manner demand is the
dimension which is exhibited by Marks and Spencer so as to align with business goals and
objectives. For Marks and Spencer their position is leading the market as the company is known
as second largest retailer due to which they are earning higher market share.

Illustration 1: source: Profit before tax of the Marks & Spencer group worldwide from 2014 to
2020
Market segmentation that is useful to target the business within retail marketplace
Market segmentation is defined as the process associated with marketing in which whole
the market is being divided into smaller parts in order to examine needs and preferences of
customers in easy manner. Under this customer are sharing varied preferences and needs which
can be enlightened by the organisation in easy manner. The segmentation is of four types
demographic, geographic, behavioural and psycho-graphic. This could be helpful in approaching
to customer in direct manner so that product and services offered by organisation can be reached
to their target customers. In the industry of retail, segmentation is playing crucial role in order to
attain profitable results and to provide profits to overall industry. For Marks and Spencer the
marketing manager is adopting ways for market research so that to perform market segmentation
in effective manner (Ilic, B, 2020). Within this customers are highly emphasised on gaining
quality products and in this manner sustainability is the major dimension that can be attained by
the organisation in short period of time. The basic of targeting customers are helpful in

enhancing overall growth. In the context of Marks and Spencer the company is adopting
Geographic and demographic segmentation so as to provide profitability to the business and to
give insight to the business as well.
 Geographic segmentation: This is defined as the market segmentation in which
businesses can segmented for customers on the basis of country, region, climate and
condition of weather. This is used as a marketing strategy in which people are targetted
so that they can get serviced and products in desired manner. In the context of Marks and
Spencer the company is using this market segmentation so that to attain brand focus of
their customers and to acquire prominent position in retail market. As the company is
concerned over expanding their business in European and Asian market so marketing
strategies are the basic which could be helpful for them to place their product and
services within market in appropriate manner (Malinowski and al et., 2018) Marks and
Spencer is supplying new and emerging products in their stores due to the reason they are
able to attract higher number of customers so that to inhale higher succession
opportunities. This strategy is able to contribute in meeting demands needs of individuals
and catering the same in effective manner. For country based segmentation, Marks and
Spencer is selling their products and services in such a way that customer preferences
can be tackled. In this aspect Marks and Spencer is focusing on dealing with purchasing
power of customers so that the same can be aligned with goals of the organisation. For
example customers in European market is focused over gaining higher quality in products
so this is imperative that manager of Marks and Spencer that they target their customer
in such a way that quality can be managed in effective way. Besides this in markets of
Asia the company is focused over managing prices of their products so as to enhance
affordability to them. Under this manager of Marks and Spencer is targetted over
population based segmentation so that to attain high brand focus of people. As this is
being observed that in Asian market population are prone to shop in a manner that
women are being focused in which higher profit can be earned by the organisation. For
Marks and Spencer the company is inclined in manufacturing women centric products
due to which this is easier for them to attain customer focus (Kanagarajan and
Ramkumar, 2019).

 Demographic segmentation: This is defined as the segmentation in which market is
being divided on the basis of race age, religion and income. This is the prominent step
which is used by business in order to attain higher quality within product and services so
that higher customers can be targetted. In this aspect Marks and Spencer is having power
to focus on market in the inclination of gender, age and economic standards. This is
helpful for Marks and Spencer to gain higher business insight through which every
segment of customers can be focused including men, women and kids. This is the best
way which can be used by Marks and Spencer in order to develop their brand image in
short span of time. In markets of retail, segmentation is a helpful aspect which could lead
the business to grab higher number of customer in early manner (Sciglimpaglia and
Raafat, 2020). Marks and Spencer is targetting their customer on the basis of age and this
is a major reason that the company is focused over keeping variety of clothing item in
their retail stores. In this manner the company can create higher market stability and
make their market survival long termed. As this is being observed that Marks and
Spencer is having diversified range of products in which they are selling clothing, food
items, financial services and home-ware products. These are the products which could
attract customers by which purchasing decisions can be made by them with positive
attitude. This is the major step for company in order to enhance brand image and in the
industry of retailing there is fierce competition so by segmentation the competition can be
dealt by Marks and Spencer in prominent manner. The targetted group for Marks and
Spencer is women from age group of 30-55. In the context of socio-economic basis the
company is offering their offerings in premium pricing so that to manage market position
in optimal manner. Prices of products are kept by using moderate pricing so that the same
can be afforded by people with middle class family background. In order to unleash the
same Marks and Spencer is moreover focused over maintaining and enhancing product
quality.
From the above detailed analysis this can be examined that market segmentation is
having two major base which is demographic and geographic. For Marks and Spencer this
knowledge is necessary as the company is focused over enhancing their international presence.
This could lead Marks and Spencer to intensify their market share and image as well so that
higher customer can be pitched and retained as well for longer duration of time.

Buyer's behaviour to meeting requirements
The major result of resolution of market segmentation is that whole the market get
divided into smaller segments in order to examine the most suited target audience in effective
manner. In order to get simultaneous business increment this is imperative that only target
customers can be emphasised in which efforts of the company can be utilised in prominent
manner. For Marks & Spencer as the company is using geographical segmentation and under
which two major aspects are undertaken (Knuth and et. al., 2019). Country based geographic
segmentation is defined as the approach which is helpful in adding value to overall organisation
and by this needs and demands of customers can be satisfied in direct manner. With the help of
country based geographical segmentation the company can add value to their brand and
recognise perception of
their customer in order to intensify market share and their business as well. This may help Marks
& Spencer to provide higher accessibility to their customers in which number of loyal customers
can be enhanced. Besides this, it may have direct positive implications towards enhancing value
of goodwill which may implicate in enhancing brand image in direct manner.
Population segmentation is one of the suitable concept in which Marks & Spencer can
acquire higher suitability for their products in order to understand needs and demands of
customers in effective manner. In recent time customers are inclined to attain innovation in the
products or services which they are willing to use. In terms of meeting market needs, Marks &
Spencer is highly active as they are trying to understand needs of their customers and align the
same with business objectives. The company is meeting suitable development opportunities in
which growth and sustainability can be received by the business and in this manner suitable
development opportunities are being inhaled by the business so as to enlighten marketing growth
as well. Besides this quality is the other issue which is required to be handled by the business in
which market growth is one of the major concern that is met by Marks & Spencer in order to
define their business objectives directly. By improving growth options existed in the market the
company is totally dealing with inhaling succession opportunities in prominent manner. On the
other hand market target is the another aspect which is required to be undertake so that higher
opportunities for succession can be attained by the business in long term time period. So this can
be said that segmentation based on population is helpful in acquiring higher market size in lesser
time period.

For marketing manager of Marks & Spencer this is imperative that they examine needs of
market segmentation and targetting in effective manner so that new business heights can be
received and forward movement can be given to the business as well (Mwita, 2020). In this
manner the company is focused over meeting requirements of their customers can be met and
profit can be earned by them in equitable manner. This is the major reason that the company is
highly focused over meeting requirements of their buyers. Demographic segmentation is adopted
by the company in order to target age and gender and understand needs of the same in effective
manner. The company is targetting to age group of 30-55 and in this major objective of the
company to enhance sales and profits can be attained in easy manner. The people with this age
group are highly prone to shop and use innovative products along with high fashionable clothing.
Consumers are behaving in active manner in order to shop so that they can enhance their livings
standard and enhance their market reach as well. In the context of gender based market
segmentation Marks & Spencer is targetting over women section in markets of Asia as the
market is having immense opportunities to grow. In order to influence buying behaviour of
customers Marks & Spencer is using promotional strategies and arranging various marketing
campaign and in this manner the company is getting support in relation to intensifying financial
condition and market capture as well (Gómez and Pérez, 2018). With the help of market
segmentation Marks & Spencer can attain higher growth opportunities and sustainability options
which may directly impact in intensifying revenue of the company.
CONCLUSION
From the above detailed report this can be summarised that marketing is one of the
essential concept which is helpful for the business to deal with their aims and objectives. This is
helpful in evaluation of current market position which is being enjoyed by an organisation and
the same can be enhanced in order to align business objectives with marketing movements.
Marketing is helpful in examining needs and demands of customers and various strategies can be
placed for attaining business objectives in direct manner. This is associated with marketing audit
as this is the concept which can be used by a business for dealing with their customers and
providing them insight of business in sufficient manner.

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