Introduction to Marketing Assessment

This report analyzes the marketing strategy of Marks and Spencer, a leading British retailer, through a PESTLE and SWOT analysis. It evaluates the company's current marketing mix and proposes two sets of market segmentation criteria, geographic and demographic, for future growth.

Introduction to
Marketing
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing audit of the company..................................................................................................1
Evaluation of organisation's current marketing strategy and position in the market...................4
Proposal of two sets of market segmentation criteria which could be successfully targeted by
business........................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing assessment can be defined as the process of analysing different aspects of
business in which competition, risks, barriers, internal and external environment are analysed in
order to formulate strategies for future which can help to attain organisational goals. Top
management of organisation is responsible for appropriate execution of all activities which are
related to marketing functions so that large number of customers get aware of products that are
sold by company (Anda and Temmen, 2014). Main aim of this report is to analyse importance of
marketing strategy for business entities in order to achieve predetermined objectives.
Organisation which is selected for this report is Marks and Spencer which is one of the largest
British Retailer mainly established in Westminster, London, United Kingdom. It was founded by
Michael Marks and Thomas Spencer in year 1884.
This report covers various topics such as evaluation of organisation's current marketing
strategy and position in market. Along with this, proposal of two sets of market segmentation
criteria which can successfully targeted by company is also included in this report.
MAIN BODY
Marketing audit of the company
Marks and Spencer is one of the most successful organisations in world which are
operating business activities at global level.. The audit is as follows:
Marketing audit: The process in which systematic, comprehensive and detailed analysis
of an organisation is conducted which helps to get an insight into actual performance of business.
For this purpose, marketers and managers conduct internal as well as external analysis which
guides them to formulate strategic decisions for betterment of enterprise. Different types of tools
are used to conduct analysis such as PESTLE, SWOT etc. Both of them are analysed below:
External environment: The forces which are available outside the organisation and
leave negative impact upon operational efficiency are known as part of external environment.
While conducting market audit is vital to analyse it in order to get information regarding actual
status of company. PESTLE analysis is a tool which is used to analyse it. It consists six different
elements which are known as macro environmental factors and help to determine impact of all of
them on business's performance (PESTLE analysis, 2016). All of them are evaluated by
marketing department of Marks and Spencer and evaluation is as follows:
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Illustration 1: PESTLE analysis, 2016
§
(Source: PESTLE analysis, 2016)
 Political: Governmental, taxation, foreign trade policies etc. are political forces which
may leave negative impact upon business entities. Marks and Spencer comply with all the
rules imposed by government which helps it to conduct business activities appropriately.
In future, if it is not able to abide political requirements then legal authorities may take
strict action against which can leave adverse effect on organisation's performance.
 Economic: Different types of rates such as inflation, deflation, interest, exchange etc. are
economic factors which should be considered by companies in order to enhance
performance. Marks and Spencer take all of them in to consideration while formulating
different decisions such as pricing (Burns, Bush and Sinha, 2014). It helps it to meet
customer's requirements and increase profits. If managers of company will ignore such
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items, then it will become difficult for Marks and Spencer to sale products as fluctuation
in such elements results in changes in purchasing power of clients.
 Social: Customer's choice of products relay upon norms, customs, values, culture,
lifestyle, age, gender, income level etc. In order to meet their requirements, it is vital for
organisations to take all of them in to consideration while formulating strategies. Marks
and Spencer is an international organisation which focuses on all of them while
conducting marketing strategies all around the world. It results in increased sales and
profits as maximum number of customers get aware of its products.
 Technological: Such type of factors depends upon innovation and technology which
helps business entities to attract new customers. It includes automation, technological
changes, research and development activities etc. In order to manage brand in retail
sector, technology is must because clients focus on those enterprises which are using
latest trends to execute business operations. Marks and Spencer is mainly focused with
latest technology and use innovate techniques such as delivery at home, swipe machines
at cash counters etc. which helps it to grab attention of customers.
 Legal: Legal authorities impose various rules, regulations and legislation which are
required to be focused by organisations in order to execute business with no interference
of governmental bodies. Marks and Spencer comply with all policies of government such
as minimum wage to employees, health and safety at work, ethical consideration in
marketing activities etc. as it helps to operate business appropriately and effectively
(Ding, Eliashberg and Stremersch, 2016).
 Environmental: Elements such as climate, weather, environment protection laws etc. are
environmental factors which affects business entities negatively. Marks and Spencer
complies with all of them in order to fulfil all its requirements of corporate social
responsibility. All the products which are sold by company are totally environment
friendly and for supermarkets milk is sourced by assured dairy farms.
Internal environment: It is a technique which helps to analyse all such types of factors
that are available within business entity and may affect performance in future. With the help of it
managers and top level executives formulate effective decisions for future in order to achieve
organisational goals. For this purpose, SWOT analysis is considered as the most effective tool
which helps to determine strengths, weaknesses, opportunities and threats of company. All
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elements of this tool are analysed by employees of marketing department of Marks and Spencer
while conducting marketing audit. All of them are described below:
Strengths Weaknesses
 Recognition of all the products and
services of Marks and Spencer is very
high due to its effective marketing
which helps it to generate higher
profits.
 Product line of the company is very
wide in which different varieties are
offered to customers which helps to
attract prospects.
 Sales or revenues of Marks and Spencer
are decreasing continuously due to
ineffective marketing which has
resulted in closing of various stores of
the company all around the world.
 Supply chain scalability of Marks and
Spencer is very poor which has affected
its financial status and market image.
Opportunities Threats
 Marks and Spencer is planning to
expand its business in different regions
and use their culture to conduct
marketing activities in order to enhance
visibility of brand.
 It is also planning to reshape the
clothing segment and promote it on
online media to attract new customers.
 There is massive competition in retail
industry which can affect profitability
of Marks and Spencer in future.
 Marketing policies changes with time
and if these are not focused by Marks
and Spencer then it can leave negative
impact upon market share.
Evaluation of organisation's current marketing strategy and position in the market
Marketing strategy: It can be defined as a plan which is formulated by business entities
to promote or sale the products and services in the market. With the help of it all the goals and
objectives of organisation can be achieved which results in good market image. In order to
analyse marketing strategy of a company four different elements are evaluated (Giovanardi and
Lucarelli, 2018). All of them are product, price, place and promotion. In order to evaluate current
strategy of Marks and Spencer marketing mix could be analysed which are as follows:
 Product: Marks and Spencer is one of the largest retail sector companies which are
operating business all around the world. Different variants of products are sold by the
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company according to requirements of customers. It offers products to women, men and
children. In order to keep the clients satisfied organisations assures quality of all the
items which are sold by it. There are various supermarkets of this company where
grocery items are sold and to provide fresh and best quality products managers make sure
that goods are bought from assures suppliers or not. Home and furniture section of the
company also offered differ varieties of products including home accessories for home,
furniture for living, dining and bedroom. All the items sold by it are highly differentiated
from other companies which are operating business under retail sector (Hall, 2014).
 Price: In order to retain existing customers and attract prospects it is vital for companies
to set appropriate prices for all the products so that expectation of customers can be met.
Currently competitive pricing model is used by managers of company while setting
price for all the items sold by Marks and Spencer. It helps it to deal with competition and
enhance competitive advantage in the market. Some of the products are sold by Marks
and Spencer on high price as compare to competitors due to some of the specific features
of the item. An additional cost is charged by it when customers order items online due to
delivery charges. Setting appropriate price helps organisations to retain all its clients and
capture larger market share. In seasonal time dynamic pricing strategy is used by it in
which Marks and Spencer offer discounts to the clients (Smith and Wong, 2016).
 Place: Marks and Spencer is an international brand which is executing business at global
level. Marketers focus on the location where stores are opened by company in order to
make sure that it is easily accessible for clients or not. Products are sold by the company
through two channels online and offline. With the help of it, higher level of revenues is
generated by the company as for clients it is easy to reach at online website of a company
and get products delivered to their door step. Organisation is following Omni channel
distribution system in which it has integrated online and offline stores to facilitate
customers to access the products (Khojastehpour and Johns, 2014).
 Promotion: For all the organisations it is vital to conduct promotional activities in order
to aware maximum number of customers regarding the products which are sold by them.
It helps to attract new customers by providing them detailed information regarding all the
goods and services offered by company. Marks and Spencer takes part in such types of
procedures in order to attain organisational goals such as profit and sales maximisation.
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Different types of channels such as social media websites including YouTube, Facebook,
Instagram etc. are used to promote products. Other techniques such as personal selling,
sales promotion etc. are also used by the company in order to increase presence in retail
sector.
From all the above described elements current marketing strategy can be analysed which
helps to determine actual performance of the company. All these factors depict that marks and
Spencer is performing well in market and also planning to expand business in more locations to
capture larger market share. There are various competitors in the market such as Macy's Asda,
ALDI, Debenhams, John Lewis Partnership etc. which are operating business under same sector
and willing to acquire its share. In order to deal with such types of challenges organisation have
planned to restructure its clothing section and use more attractive technology at its stores which
cha help to enhance performance and attain organisational goals (Lees-Marshment, 2014).
Proposal of two sets of market segmentation criteria which could be successfully targeted by
business
The directors of Marks and Spencer have also asked to the employees of marketing
department to present a proposal of two sets of market segmentation which could be targeted by
the company in order to attain growth in future.
Market segmentation: The process which is used by organisations to divide whole
market in different sub parts is known as market segmentation. It helps business entities to target
different types of customers who are willing to buy such products which are sold by them. In
order to select best segment to introduce items in the market it is vital for enterprise to conduct
market research and gather information regarding needs, demands, preferences and requirements
of clients which can help to launch a products according to these elements (Moormanand Day,
2016). There are various types of segments which could be used by Marks and Spencer in order
to achieve growth in the market. All of them are described below:
 Geographic: When organisations divide market on the basis of geography such as city,
state, region, country etc. According to this segment market can also be divided on the
basis of rural, urban and sub urban. It suits best when company is planning to launch
products in a new location.
 Demographic: When business entities divide market on the basis of income, education,
gender, age, religion, family size etc. elements then it is known as demographic
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segmentation. With the help of it company can target clients in more specific manner
(Piercy, 2014).
 Psycho-graphic: This type of segment divide market on the basis of traits, attitudes,
lifestyle, interest and attitude of customers. It helps companies to engage in product
design and marketing in a focused manner.
 Behavioural: This type of market segment is based upon buying behaviour of customers.
With the help of it clients are divided on the basis of their knowledge and attitude
towards use of a products.
By analysing all the above described segments it has been proposed that Marks and
Spencer should focus on geographic and demographic segmentation and both of them could be
targeted by the company. Both of them can help to grow the business and enhance profitability
(Rowley, 2016).
Proposal
First set of market segment: Marks and Spencer can target geographic segmentation by
expanding its business in a new location. With the help of it, market share of company will be
enhanced which can result in increased profits and sales. For example, Marks and Spencer is not
operating in Latvia which is a country between Lithuania and Estonia. All products which are
sold by organisation all around world could also be offered to people which are living in Latvia.
In order to open new stores in a new country it is vital for Marks and Spencer to conduct market
research so that appropriate business strategies such as pricing, marketing etc. could be
formulated. It can help enterprise to enhance its visibility and attract large number of customers
towards it. When a new brand is launched in a country then customers do not give their attention
to it as they do not trust a new company (Seetanah. and Sannassee, 2015). As Marks and Spencer
is having good market image so this challenge will not affect it. For marketers it is very
important to formulate marketing and promotional strategies according to culture, values and
belief of Latvia in order to establish good image in mind of customers. If this segment is selected
by Marks and Spencer, then it can help to grow organisation and also lead it forward as market
share will be increased when new stores will be opened in new locations. Marks and Spencer is
focused with good quality products and set competitive pricing for its products. Hence, its
current marketing startegy help to attain competitive advantage for business and fulfil
requirements of customers as they will get good quality items.
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Second set of market segment: Another market segmentation which could be targeted
by Marks and Spencer is demographic in which clients are divided on the basis of their age,
gender, income level, education etc. In this type of segment Marks and Spencer can launch new
products such as gym wear for specific customer segment such as for the age of 16 to 25 as they
are mainly focused with their health (Wedel and Kannan, 2016). In order to launch new clothing
items in market it is very important for Marks and Spencer to analyse buying behaviour of
customers so that their requirements can be fulfilled and a positive image of company can be
established in their mind. With the help of demographic segment number of customers will be
increased as gym wears will be mainly focused with a specific age group of clients. If new
products for clients are launched in existing stores of Marks and Spencer, then it can help to
attain growth because revenues and profitability will be increased after this launch. With the help
of it business could also be taken forward because higher profits lead toward success. It will be
beneficial for Marks and Spencer as it can help to reach maximum number of clients (West, Ford
and Ibrahim, 2015). While formulating marting strategy marketers focus on the place where
products are sold and people always get attracted towards such companies which are easily
accessible. With the help of its current strategy Marks and Spencer will be able to meet
requirements of customers in demographic segments by helping them to reach at stores easily.
CONCLUSION
From the above project report it has been concluded that marketing assessment is a
procedure of analysing different types of elements which are focused by marketers and directors
of company in order to analyse effectiveness of marketing activities or not. In order to conduct
market audit, it is essential to conduct internal as well as external analysis with the help of
SWOT and PESTLE analysis. It guides directors to evaluate performance of company and take
effective decisions to enhance it. It is vital for an enterprise to formulate marketing strategy with
the help of four different elements such as product, price, place and promotion. While planning
to attain growth for business, directors are required to analyse different market segments and
then select best from them in order to move the business forward.
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REFERENCES
Books and 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.
Burns, A. C., Bush, R. F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
Ding, M., Eliashberg, J. and Stremersch, S., 2016. Innovation and marketing in the
pharmaceutical industry. SPRINGER-VERLAG NEW YORK.
Giovanardi, M. and Lucarelli, A., 2018. Sailing through marketing: A critical assessment of
spatiality in marketing literature. Journal of Business Research. 82. pp.149-159.
Hall, C. M., 2014. Tourism and social marketing. Routledge.
Khojastehpour, M. and Johns, R., 2014. Internationalization and relationship marketing: an
introduction. European Business Review. 26(3). pp.238-253.
Lees-Marshment, J., 2014. Political marketing: Principles and applications. Routledge.
Moorman, C. and Day, G. S., 2016. Organizing for marketing excellence. Journal of Marketing.
80(6). pp.6-35.
Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Rowley, J., 2016. Information marketing. Routledge.
Seetanah, B. and Sannassee, R. V., 2015. Marketing promotion financing and tourism
development: The case of Mauritius. Journal of Hospitality Marketing & Management.
24(2). pp.202-215.
Smith, L. C. and Wong, M. A. eds., 2016. Reference and Information Services: An Introduction:
An Introduction. ABC-CLIO.
Wedel, M. and Kannan, P. K., 2016. Marketing analytics for data-rich environments. Journal of
Marketing. 80(6). pp.97-121.
West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Online
PESTLE analysis. 2016. [Online]. Available through:
<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>
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