Introduction to Marketing in Mark & Spencer

Introduction to Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Marketing audit of Marks & Spencer..........................................................................................1
Research and market segmentation.............................................................................................5
Marketing strategies....................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is process of creating, communicating, delivering and exchanging or offering
goods and services to the consumers, clients, partners and society. It can be a activity of selling
and purchasing goods and services. Marketing is a process in which companies and firms
provide satisfaction to the consumers needs and desires by producing goods and services
according their demands. This assignment is based on Mark & Spencer, it is a British
multinational retailer company that specialises in selling clothing, home products and luxury
food products. This company founded in 1884 by Sir Michael Marks and Thomas Spencer. In
this report, the market research of M&S will be conducted by using various methods and
strategies such as SWOT analysis, PESTEL analysis and others.
TASK
Marketing audit of Marks & Spencer
Marketing is process of planning and executing the pricing, promotion and distribution of
ideas, goods and services. In Marks & Spencer, it can be a action or business of promoting and
selling products or services by doing market research and advertising. M&S is the largest retailer
company in the UK and sell clothing, footwear, gifts, home furnishing and food. The company
do market research to identify the needs of consumers so that it can provide produce products
according their needs and provide satisfaction to them (Anda and Temmen, 2014). The
marketing of Mark & Spencere ius as following:
SWOT analysis of M&S
SWOT analysis is framework that vis use by the companies to evaluate the competitive
position in the market by identifying strength, weakness, opportunities and threats of the
organisation. In context of Mark & Spencer, this analysis can be a tool that can be used by the
company to identify the strength of the company, weakness of the organisation and opportunities
or threats for the firm. The SWOT analysis of M&S is as following:
Strengths- M&S has many strength that help the company to achieve its growth and objectives.
 The company has clear brand image cause of its good quality and high-end value
products and services that create loyalty within consumers and increase sales and profit
(Armstrong, Kotler and Brennan, 2015).
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 Large number of stores and outlets is also a strength of the company because have
international customers so it established 900 stores all over the world.
Weaknesses
The weaknesses are basically refers to that areas where the business of the company
needs improvement.
 The first weakness of Mark & Spencer is that the company did not provide satisfaction to
its customers and this issues is related to the return policy as well as in store experience
(Barile, Pels and Saviano, 2012).
 Lack of customer satisfaction, the results are poor brand loyalty and increased brand
switching.
 One of the biggest weakness of M&S is poor scalability of supply chain. Poor financial
performance and frequent product recalls leads to loss in customer confidence are another
weakness of M&S.
Opportunities
This element refer to those avenues in the environment that surrounds the business on
which the company can expend its business and can capitalize to increase its returns. There are
various opportunities for the business of M&S and for its growth. They are as following:
 The company can make plan and strategies to invest in Indian markets.
 By using various online marketing channels and modes the organisations have
opportunities to expand the market at global level.
 Making improvement and simplifying their operating segment or reshipping their
clothing segment, M&S can grape the opportunity of increase business.
Threats
This factor is refers to those elements that affect the business of the company and create
barriers in the business of the firm. There are various threats for M&S, they are as following:
 Competition is a big threat for M&S. There are various competitors of Marks & Spencer
such as Uniqlo, Tommy Hilfiger, Zara and others.
 Changing trends and fashion in the clothing space.
PESTEL analysis
Political- This factor related to the political changes and fluctuations that affect the
business of M&S (Burgess, and Steenkamp, 2013). These changes can be impacted positively as
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support form or negatively as restriction. Higher cost structure has disadvantaged M&S in
international market because the company has flavoured through European country's free trade
agreements and have led to decreased sourcing costs. M&S operated free trade agreement in UK
and create motivation in other countries to invest in European market that affect the productivity
and sustainability of the company in positive form (Chaffey and Ellis-Chadwick, 2012).
Economical- This is related to the finance, budget, cost, funds and various pricing
strategies that affect the business of the company. M&S restricted and impacted by the discount
pricing of the competitors. The company have been affected by economic outlook and recently
closed a number of stores that impacted the economic growth and condition of the company
negatively.
Social- This factor is related the needs and demands of the consumers if the company
provide products and services according their consumers needs, the customers will be loyal for
the brand and purchase products again and again. The quality of the products also matter because
at present time customers are ready to pay for good quality products and services.
Technological- It refers to those factors that support the company and manage the brand
carefully. M&S use various technologies for run the business properly such as for promoting the
products, company use promotional technology and use various channels of promotion like TV,
radio, Facebook, Instagram, Twitter, social media and others. For treading and delivering the
products, M&S use online trade and using advertisement technology to attract consumers.
Environmental-
Legal-
Ansoff Matrix
This matrix is known as product and market expansion grid that is used by the companies
to analyse and plan their strategies for growth. There are strategies within this matrix that can be
used by M&S to expend it business and analyse risk.
Market penetration- This is a growth strategy where the company focus on the sales of
existing products in existing market. M&S can use this strategy in its business and increase the
sales of the products or attract more customers. M&S provide high quality products and cost of
that product are also high (Chandon, Laurent and Valette-Florence, 2016). The company can
achieve its objective if it can decrease the price of the products by using competitor pricing
strategy and use other various advertising or promotional channels that attract more customers .
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Product development- It is strategy where the main objective of the business is to
introduce new products in existing markets. M&S can make innovation and do little change in its
products according consumers needs and introduce hem in existing market. For example, M&S
make change in clothes according consumers needs and launch it in existing market (Anda and
Temmen, 2014).
Market development- This strategy is related to the business that seeks to sell its existing
products in to new markets. M&S can achieve its business growth by expanding its business in
various countries or new geographical markets. For expending business in new geographical
location, the company make new strategy according that location, for it the organisation do
market research and find out consumers need and use various promotional channels. So that
customers are aware with the products and company can increase its productivity and profit.
Diversification- It is more strategy because there are product and market both are new
and company have more danger related to use of the strategies. For example, M&S manufacture
a new product Herbal Shampoo in Nigeria, here company have no idea that which strategy must
be used by it to promote this new product in new market. So there are high risk related to the
sales of the new product (Armstrong, Harker and Brennan, 2015).
Source: Ansoff Matrix, (2019).
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Illustration: Ansoff Matrix

Research and market segmentation
Market segmentation is process of dividing a market of potential customers in to groups
or segments that are based on different characteristics. There are four types of segmentation
geographic, demographic, psycho-graphic and behavioural (Barile, Polese and Saviano, 2012).
The companies do market segmentation on the basis of customers interests, lifestyles,
age, gender etc.
Demographic segmentation- This segmentation divides the market on the basis of
demographic variables such as age gender, marital status, family size, income, religion, race,
occupation, nationality and others. The companies use it to get the right population in using their
products
Geographic segmentation- This type of market segmentation divides population on the
basis of geography and the company targeted its customer for its product according their culture
and values that are related with their geographical location.
Psycho-graphic segmentation- This market segmentation is related to the lifestyle of
people, their activities, interest and opinions etc. the company target customer on basis of their
attitude lifestyle and on the way of thinking or the kind of life that they want to live.
Behavioural segmentation- It divides the people and customers on the basis of their
behaviour, usage and decision making pattern etc. Behavioural segmentation is done by the
organisations on the basis of the consumers buying behaviour such as frequency, loyalty and
needed benefits etc.
Marks and Spencer
M&S is a largest retailer organisations that deals in large number of multiple products.
This company was founded in 1884 and currently has 979 stores across the UK including 615
that only sell food products. It operate its business in 40 nations and attaining strong brand image
in UK as well as global market. M&S use demographic segmentation to target the market in
order to its products and services. The company do the segmentation the basis of customers
lifestyle, gender, age group, attitude, behave etc. M&S has strong brand image cause of its good
quality of product and better strategies that are used by the company to provide satisfaction to its
international customers (Burgess and Steenkamp, 2013).
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Market segmentation
Market segmentation is process of dividing and targeting market groups to execute its
goods and services. The companies do segmentation on the basis of various factors and elements
such as lifestyle, gender, age and various others (Chaffey and Ellis-Chadwick, 2012).
Marks and Spencer divided market segmentation into two parts such as :
The company divided segmentation on the basis of income and age group of the people because
both of these factors are important for the growth of the company such as if company consider
the age factor of the customer and provide products according their needs that help in the growth
of the company. If company use good pricing strategies according the income of the customers
and provide product in that cost which is affordable for them, it help in increasing customer line
and attracting more consumers.
Market segmentation as per income group- In M&S, pricing is an important factor that
affect the market segmentation process of the company. The company chose income factor
because its operate its business internationally and income group can be a good elements that
attract the consumer in large number because M&S produces high price and good quality
products. The organisation produces various products in different price range according the
income groups such as high income, mid income and low income groups. In high income group,
M&S targeted high standard people or customer for its high price products such as alcohol, some
beauty products and fragrances etc. Mid income group consider the middle class families that
might not be afford the high expensive products. For this class of customer M&S produces
various products such as food products, beauty and skin products, gifts, clothes, home products
and various others. There are less number of product that are produces by M&S to low incomer
group and for this income group the company produce some food products. The company choose
income based market segmentation because it can get or attract large number of customer in
high or mid income group cause of its good quality of products that help it increase its sale and
profit or productivity.
Market segmentation as per age group- M&S is a well known and well established
company that produce products and services for all age groups like male female, adults, kind and
in clothing segments for various ages groups. Segmentation is an important and beneficial
strategy for the company to finding out and analyse the consumers preferences and needs
(Chandon, Laurent and Valette-Florence, 2016). For do this segmentation according the age
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based, the company can easily identifying the demands and desire of the consumers. In beauty
and skin products, the company produces various products for different age group such as baby
products for new born. For females the company produces various products such as hair care,
skin care, lotions, fragrances and various others. For males, fragrances, skin care, hair care and
others. In clothing, the company provide apparel according the age group of the consumers. It is
an important factor because this company operate its business in different countries and provide
products according their culture and trade. For example, in European countries, people prefer
trendy and fashionable clothes and formal wear but in India or Pakistan people prefer clothes
according their culture. M&S provide clothes according the culture and age of the consumer that
help in increasing the productivity and profit of the company (Fahy and Jobber, 2012).
Reasons of targeting two market segmentations
Demographic- The company used this market segmentation because its operate its
business globally and charged moderate pricing on their clothing products that able to attract
middle income group of people.
Psycho graphic- M&S produces large level of western clothes in its clothing products
because in European countries the demand of these clothes are high and help in increasing the
economy of the company or enhance productivity and earning profit.
Marketing strategies
Marketing refers to the process of selling and purchasing goods and services and for this
process, companies designed some strategies. Marketing strategy is the section of business plan
for researching people and turning them into customers of the products or services that the
business provides. M&S design various marketing strategies attract and influence the buying
behaviour of the new and existing customers. There are some marketing strategies, they are as
following:
Product description-It is related to the classification of the products according their
quality, price and features etc. M&S is a retail company that deal s in clothing, food and home
products and operate its business at global level. This company used this strategy and divided its
products and classified them according quality, price and features. By making innovation in its
products, the company attract a large number of consumers and provide products according their
needs and demands (Fine, 2017). By using various promotional techniques and strategies such as
advertisement through radio, newspaper, Facebook, Instagram, social media and others that help
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the company to increase sales, earn profit and attract more consumers. M&S, mainly targeted to
segment demographic and psycho graphic that help the company to get a large number of
customer cause of international business.
Brand image-It is related to the perception of the customer towards a particular brand.
Brand image can be an image and impression of the customers from about a individual and
particular brand. When consumer buy or purchase any product and service and if the product is
good and create positive impact of the customer mind, it create the brand image in the kind of the
customer (GUMMESSON, 2012). M&S produce good quality products and services or use
appropriate strategies such as pricing strategies, promotional strategies and others that create a
good brand image. The products of M&S provide satisfaction to the consumers so consumer
have positive perception toward it. Brand image is important to create loyalty within consumers.
Pricing strategy- It is related to setting price of the products and services so that
consumer can purchase products at suitable and appropriate cost. In M&S, it is an important
factor because sometimes loyalty of the consumers depend on it. The company use competitive
pricing strategy, penetration pricing and others cause of its international business. Setting the
effective pricing strategies, M&S have large number of customers and make sustainability in the
economic condition of the company.
Distribution strategies and objectives
M&S operate its business at global level and delivered various products and services to
their consumers by using different distribution ways, modes and strategies. There are some types
of distribution that are as follows:
Indirect distribution- In this process, company do not sell the product to the consumers.
It is channel of distribution in which the manufacturer directly sales the products to lower part of
chain. M&S can use it provide an effective service to its interactional customers.
Direct distribution-This distribution allows products to be sold directly to the customers.
By using this channel, M&S can provide products and services at that time when its customer
have need. For example, M&S opened and established various stores at global level so that they
can buy or purchase products when they need.
Intensive distribution-It is an strategic tool that can be used by manufacturer to make
strategies for identifying various information about target market (Krishna and Schwarz, 2014).
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M&S can use this channel as a tool for gathering information about the needs and demands of
the products and services at different market place.
Selective distribution- In this distribution channel, manufacturer wants to increase their revenue
by delivering products at good quality and services to their customers. M&S can use this channel
for providing better quality products and services according their needs (Manning, 2013).
4P's of Marks and Spencer
Product-M&S produces a large number of products and believes in eco-friendly goods
that are according to the consumers needs and demands. This company has a diversified portfolio
that includes women clothes, accessories, footwear and skin & beauty products etc. In Men is
produces footwear, formal wear, apparel and accessories etc. In kids, M&S produces girls
clothes, boys clothes etc. and various home and beauty products.
Price- The company relive in produce good quality products because they know now
these consumers are ready to pay for the good quality of products. In their pricing strategies they
use competitive, primary and penetration pricing etc.
Place-M&S operate is business globally more than 40 countries in all over world and
have more 900 stores. There are 84939 employees that are working with the company around the
world. Currently, the company has 979 stores across the UK including 615 that only sell food
products. It operate its business in 40 nations and attaining strong brand image in UK as well as
global market.
Promotion-M&S use various strategies for promotion such as advertising through radio,
newspaper, Facebook, Instagram, social media and others that help the company to increase
sales, earn profit and attract more consumers (Martin and Schouten, 2012).
CONCLUSION
In this report, it has been concluded that marketing audit is an important method to
analyse the size of the company and the business strategies that used by the company. IN this
report various strategies are explained such as SWOT analysis, PESTEL analysis, Ansoff matrix,
marketing research and various others that are helpful or required for the engagement of the
company and know about the satisfaction of the customers.
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REFERENCES
Books & Journals
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid introduction.
Renewable energy. 67. pp.119-127.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Barile, S., Pels, J., Polese, F. and Saviano, M., 2012. An introduction to the viable systems
approach and its contribution to marketing.
Burgess, S. M. and Steenkamp, J.B.E., 2013. introduction to the special issue on marketing in
emerging markets. International journal of research in marketing. 30(1). pp.1-3.
Chaffey, D. and Ellis-Chadwick, F., 2012. Digital marketing: strategy, implementation and
practice (Vol. 5). Harlow: Pearson.
Chandon, J. L., Laurent, G. and Valette-Florence, P., 2016. Pursuing the concept of luxury:
Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to
Innovation”. Journal of Business Research. 69(1). pp.299-303.
Fahy, J. and Jobber, D., 2012. Foundations of marketing.
Fine, S. H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12).
Routledge.
GUMMESSON, E. R., 2012. Internal marketing in the light of relationship marketing and
network organizations. In Internal marketing: Directions for management (pp. 45-60).
Routledge.
Krishna, A. and Schwarz, N., 2014. Sensory marketing, embodiment, and grounded cognition: A
review and introduction. Journal of consumer psychology. 24(2). pp.159-168.
Manning, P., 2013. Introduction. In Drugs and Popular Culture(pp. 10-13). Willan.
Martin, D. and Schouten, J., 2012. Sustainable marketing (Vol. 1). Boston: Prentice Hall.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Rowley, J., 2016. Information marketing. Routledge.
Online
Marketing Mix. 2019. [Online]. Available Through: <https://studiousguy.com/marketing-mix/>.
Ansoff Matrix. 2019. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newTMC_90.htm>.
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