Introduction to Marketing Assignment : Marks & Spencer

Introduction to marketing

Contents
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
Marketing audit of Marks & Spencer................................................................................................3
Research on market segmentation.....................................................................................................7
Marketing strategies..........................................................................................................................8
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

INTRODUCTION
Marketing is the compulsory part of the organisation which helps the company to
develop its strong brand image in the market. Irrespective of the firm size whether it is small,
medium or large company has to execute the marketing function in its business routine
(Introduction to Marketing, 2018). The marketing manager plays a dynamic role in the
execution of the marketing function like to decide the target market and customer for the
company products. So marketing manager found different alternatives which help the
company to expand its business and to operate the market for a wider action. The company
choses for this assignment is Marks & Spencer. In these case PESTLE, SWOT along with
Ansoff matrix to study the growth and opportuinities of Marks & Spencer in the market. This
report explained different segment on which basis company is divided their task to different
departments. This basis help the company to achieve their goals with efficiency and
effectiveness.
TASK
Marketing audit of Marks & Spencer
Marketing function help the company to explore out useful information from the
market and then transfer it to the management of the organisation. By this reliable
information Marks & Spencer execute effective decision that helps the company to make a
strong brand position in the market. As the company is already a well-known organisation of
the UK and offer various products to the company such as food, home décor items and
clothing etc. with a inferior quality in its products. Marks and Spencer stores are present
across all world (Ahrens, 2011) So it is very important for the organisation to conduct their
audits it is useful for the management to find their actual position in the market. With the
current position of the Marks and Spencer management make their decision as per the market
trends moves. So company achieve longer sustainability in such a dynamic environment. The
marketing audit of M&S is as follow:
SWOT analysis of Marks and Spencer(M&S):
With the implement of the SWOT company analysis their actual strength and
weakness with the upcoming opportunities and threats in future. The Marks & Spencer is
operating its business in the clothing industry where there a lot of competitors are previously
presented (SWOT Analysis, 2018). This competitors impact on the growth and sustainability of

Marks and Spencer. Therefore the top management of Marks and Spencer decided to execute
SWOT analysis in the company. So they can make amendments in their plans and policy to
increase their strength and reduce their weakness in the market (Bacik, Gavurova and
Fedorko, 2015).
Strength Weakness
 M&S is the giant retailer in the UK
market which offer various products
in its stores that start from food and
end with clothes sector. This large
variety of product help the company
to generate a strong base of the
customer.
 Marks and Spencer manufacture and
label their own brands such as North
cost & Per Una etc. which generate
more faith in the mind of the
customer and develop a transparent
perception for the Marks and Spencer
brand. So customer repeat brand
name in the mind of customer.
 There are more than 80,000
employees who are relate with Marks
and Spencer and perform their duty in
the office and store of the company.
 At present M&S are operating their
more than 900 store in the UK market
itself. Out of 900 the company
provide franchise in their 300 food
store which make the presence of the
company with a strong brand image.
 Marks and Spencer is more focused
its business in the UK, US and
Europe but the company face many
challenges in the Asia market and
unable to tackle them. This create a
barrier to enter company in the Asian
market.
 Company has not sufficient supply
chain to deliver their products
through online. As M&S tried to
develop a supply chain in the market
but failed to implement it the
organisation.
 The customer are not satisfy with the
company return policy and the staff
behaviour is also an issue at the time
when customer are visiting
company’s store. This result that
people started to switch on different
companies.
Opportunities Threats
 M&S has a chance to grab the Asian
market by providing ethnic and
 Company has to face tough
competition from different multi-

traditional wear to the individuals
who are living in China, India etc.
and other more developing countries.
 The company has a chance to
establish their stores in the rural
market of developed countries also.
This help company to increase their
customer base and branches also.
 In present era, many small firms
started their business to sale their
product with the online platform. So
M&S invest in Online platforms to
grab more customer base in the
market. like creating attractive and
user friendly website for customer.
national company such as Asda,
Tesco etc. This competitors create
threat for M&S which impact on the
sustainability of the business in the
market.
 Company has to face various
challenges from local and small
retailers which are present in the UK
market as well as in other countries
also. As the barrier create by this
small sized firm is the discounting
prices that they offer to customers.
PEST Analysis
Political- The changes that are implemented by the government of the country are
included in the political factor of the company. This government decision support or restrict
the business of the company. Marks and Spencer is the company of the British country where
there is a free agreement between UK and Europe to make their country tax free. As the
benefit of this free trade is that new companies are motivated to expand their business in
other market also. As the company is growing its business the employment is also generated
in that country. So it is beneficial for government to increase its business (Cabrera and
Williams, 2014)
Economical- Sale of the Marks and Spencer products depend on the economic of the
country like if there is inflation in the country. Consumer want to purchase quality goods as
they more buying power at that time. Like the current economic situation is better in the
developed country like US and UK. So Marks and Spencer need to focus on the clothing
business. As it help the company to attract younger generation because they spend their
income more on lifestyle and fashion.

Social- The person which are targeted by the company to sell their product are the
major factor to retain a business for a loner time. So whenever M&S launch a new product in
the society. It must check like their product does not leave a wrong impact in the society.
Like the UK consumer are loyal for a brand if they found inferior quality in the products of
the company which is a good sign for the company to sale their products to a brand loyal
customer. like M&S does not perform good in the Asia market because of satisfying the
customer need in the market (What is PEST Analysis, 2018)
Technological- In today era most of the companies are selling their products in the
market with the implementation of technology. As this technology help a business in the
market to gain more competitive advantage from their competitors. Like the online selling of
the Marks & Spencer products help the company to expand their business in all areas where
the potentialbuyers are present in the market.
Ansoff matrix:
Ansoff matrix help Marks and Spencer to complete and examine their goals in a
overall business including all the department and products. As the company is the largest
retailer in the UK and operated a largest number of store chain in the world. so it is essential
for the company to apply Ansoff matrix in its activities which is mention as below:
Market development- This strategy help the company to expand its business with the
same existing products into the new area of market segments. This is done by the Marks &
Spencer by exploring different developing countries where company has a chance to sale
their existing products in that market. As it is also a competitive advantage against the
company rivals (Desai, 2013)
Market penetration- In market penetration strategy, the company want to achieve their
growth with the similar products in their current segment with a motive of increasing the
market share for the company. Like company face a lack of variety in its clothing segment.
So company improve to change their strategy for cloth business.
Product development- The product development strategy help the business to
introduce new products in the existing current segment or market. For this case it is not eas
for the company as first the Marks and Spencer do research in market and then they introduce
the similar product that is the need and demand of the customer.

Diversification- Under the diversification strategy company match with their targets
by developing new market for the new strategy like they explore new variety of products and
then sale them into new areas of market. M&S diversify its business from food to beauty
products and then home appliances etc. this strategy help company to explore new market.
Research on market segmentation
Market segmentation is work as a approach to target customer and market in order to
accomplish the company goals. The segmentation is mainly related to match with potential
customer of the market. The segmentation based on the company decision of marketing mix
which include price, place, product and people. Research of market segmentation is as
follow:
Marks & Spencer
M&S apply the demographic segmentation in the business to order their products with
the specific market. The effective management of the company help M&S to operate its
business activities smoothly. The goal or aim of the marketing segmentation is manly
associated with the sale of products with a strategy that is able to beat the rivals of the
company (Dholakia, 2012).
The British international company is one of giant retail company in all over the world.
So in this case the multiple channel of company store and franchise are divided in different
markets. As it help the company to develop clothes for all sector like women, children and
men irrespective of their age. M&S want to achieve goal of its business and it also help the
company to retain and sustain their business for a longer period in the market.
The M&S is divided their segmentation into two parts such as:
The first is market segmentation as per the age of person: In this segmentation
company provide its products for all age of its customer. like in clothing business it is
essential to update with trends and provide product for all ages groups of customer. So the
customer is more comfortable to shop products for whole family under one roof.
Second one is the product specification: this strategy is developed to make products
for a niche market. This market says that consumer will buy those products which are
necessary for the company to establish their products for the specific consumers. Like the
company has developed a marketing infrastructure for some specific products such as winter

jackets and North cost product which are sale in market with the brand name of Marks and
Spencer (Engelen and Brettel, 2011).
Marketing strategies
Marketing refers to an activity of influencing the interest and buying behaviour of
customers by using various promotional tools such as print and digital media. It involves
various activities such as promotion, distribution and delivering products to the end users.
Every organisations such as Marks and Spencer invests lots of money in promoting their
brand with an objective of achieving huge customer strength and market presence. Marks and
Spencer adopts various marketing strategies to influence the buying behaviour of customers
which includes the following:
Market segmentation as per income group: Price plays a crucial factor which
either influences the buying behaviour of customers in positive or negative way. In the
context of M&S, the company adopts competitive pricing policy due to which middle income
group can easily afford to buy their product and services. It segments the market into four
categories which makes easy for the management to identify their actual needs and
preferences. Here are the four segmentation of market:
Demographic: Under this, the populace has been separated based on gender, age, pay
level and so on. It help the board of M&S to break down the needs and preferences of
targeted customers as per their attributes. For example, M&S focused middle income group
due to charging moderate costs (Hsu, 2011).
Geographic: Under this, the market has been isolated based on areas or locations
where the focused targeted customers are found. It help M&S to choose the areas where the
interest of their products are high so as to accomplish further extension of business. For
instance, M&S is basically focused on UK market because of selling western wear clothing
which are higher in demand.
Psycho-graphic: Under this, the populace has been separated based on way of life and
frame of mind of individuals. It makes simple for M&S to separate individuals based on their
way of life with the goal that items has been marketed in like manner. For instance, ethnic
and customary wear pieces of clothing are high in demand in India because of which M&S
can without much of a stretch grow its business through participating in selling requested
items in such country.

Behavioural: Under this, populace has been separated based on purchasing conduct, brand
dedication of targeted customers. This will help M&S to supply its items to such area which
are more in requested by individuals on regular basis. For instance, In UK clients who wear
western clothing on regular basis stay faithful with M&S (Jung and Soo, 2012)
.
Marks and Spencer targets Geographic and Psychographic segment due to following reasons:
 Geographic: M&S adopts competitive pricing policy on their clothing products which
can easily affordable by middle income group.
 Psychographic: In UK, USA western wear clothing products are more in demand
which increases the possibilities of increasing sales and revenue of an organisation
within limited time period.
Product description:
It refers to the description of attributes of products which are further communicate to
the targeted customers in order to influence their buying behaviour toward their products and
services. Marks and Spencer is multinational company which is engaged in wide range of
products such as clothing, home and expensive food products. It is popular for women wear
that holds more than 11% market share. The company always tried to bring innovation in
their offerings so as to compete with their existing rivals in more effective and efficient
manner. There are various modes through which the company communicates the information
about their products and services such as TV ads, Hoardings, hiring celebrities etc.
At present time, M&S started to engage in providing financial services in order to increase its
existing market share as well as profitability situation. It mainly targeted two segments which
includes Geographic and Psychographic. It makes middle and lower income group more
capable to buy their quality products through providing financial help to them (Kennedy and
Parsons, 2014).
Brand image: It may be defined as the position of brand currently stands for. It is a
perception or an image of company in customers’ mind which can bring them towards the
outlets of an organisation to buy their products and services. To achieve good brand image, it
gets maximum support from brand communicators such as packaging, advertising, word of

mouth publicity etc. M&S is currently having strong brand image due to providing quality
products and services to all age groups at an affordable prices.
Pricing objective strategy: It is considered as important strategy which can assist
company in retaining loyalty of its existing customers for longer period of time. For this, the
management of M&S should frame an effective pricing policy which makes customers more
capable to buy their products and services. It increases the customer base as well as revenue
of company.
Distribution strategies and objectives
Marks and Spencer is operating its business at global level with the help of an
effective distribution channels which assist them to reach their products and services to the
maximum number of people. To expand its market reach, it is important for the management
to analyse the distribution channels which are briefly explained as under:
Indirect distribution: Using such distribution channel, the company manufactures and sells
its wide range of products and services to the retailers which further sell it to the final
consumers after adding some margin on it. It increases the prices of products which
negatively affects the buying behaviour of customers (Nguyen and Simkin, 2012)
Direct distribution: By using distribution channel, Marks and Spencer delivers its
products and services to their targeted customers directly without involving any
intermediaries. It saves additional cost on products due to which the maximum number of
customers can easily afford to buy their products and services. It easily attracts new
customers with their actual prices and retain the loyalty of existing customers.
Intensive distribution: It is also considered as an important tool which is used by an
organisation engaging manufacturing sector such as Marks and Spencer. The marketing
manager of MS should gather information about the needs and demands of the customers
which will help them in producing same products in high quantity and lowering low
demanded products. It positively affects their profitability and market share across
worldwide.
Selective distribution: In this type of channel, the manufactures such as Marks and Spencer
increase their sales and revenue by providing products and services within a standard quality
and optimum prices. In M&S, the marketing manager conduct market research in order to

identify whether the company should focus on quality or reducing prices of products and
services. As it target middle and higher income group which prefers quality over price thus it
is important for an organisation to increase its quality of products and services instead of
focusing on lowering prices (Shaw, 2012)
4P’s of Marks and Spencer (M&S)
Product: Marks and Spencer is engaged in providing wide range of products such as
clothing, home and expensive food products with a standard quality and optimum prices. The
company believes in offering eco-friendly products and fair trade products which not only
maximise the satisfaction level of targeted customers but also protects environment from any
wastage.
Place: Marks and Spencer is operating its business in various nations which includes Egypt,
Spain, Qatar , China, Indian etc. It is multinational retail organisation which has attained
strong market presence in UK with having more than 900 stores out of which over 600 stores
only sells food products in the UK. It sells its wide range of products through its outlets
which gains maximum brand visibility and customers. At the end of 2017, the company had
over 84000 employees which are making continuously efforts in providing optimum services
to its customers (Marketing mix of Marks and Spencer, 2018)
Price: Marks and Spencer has adopted competitive pricing policy and offers discounts
and incentives to its customers during off seasons and festive seasons. At the end of 2017,
the company disclosed its net revenue and net income of 10.622 million and 1157 million
pounds respectively. It targets middle and higher income group due to which it maintains
pricing policy in order to retain its loyal customers.
Promotion: Marks and Spencer invests more in promoting its products and services
using various promotional tools such as print media, digital and visual medium. The company
placed advertisements in magazines, newspapers, TV channels, billboards etc. It also hires
known celebrities to promote their brand which makes huge impact on their sales and revenue
along with existing customer base. The hired personalities includes Myleene Klass, Antonio
Banderas, John Sergeant etc. It updates their official website with its new offerings along
with discounting and incentives offers.

CONCLUSION
It has been summarised from the above project report that it is essential for every
organisation whether operating at local, national and international level to conduct market
audit on specific time period so as to identify their actual market position at current time. It
requires maximum support from the marketing department to conduct PESTLE, SWOT
Analysis, Ans-off matrix etc. which assist in evaluating the influencing factors that can affect
their current marketing strategies. In addition with this, market segmentation and marketing
mix should also beneficial for an organisation to adopt in order to maintain loyalty of existing
customers.

REFERENCES
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Shaw, E. H., 2012. Marketing strategy: From the origin of the concept to the development of
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What is PEST Analysis?. 2018. [Online]. Available through:<https://www.visual-
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SWOT Analysis. 2018. [Online]. Available
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