Introduction to Marketing

This assignment provides an introduction to marketing and discusses the importance of marketing in achieving a strong brand image and business expansion. It also includes a marketing audit of Marks & Spencer (M&S), research on market segmentation, and marketing strategies.

Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Marketing Audit of Marks & Spencer (M&S).......................................................................1
Research on market segmentation..........................................................................................5
Marketing Strategies...............................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an essential need of an organisation which supports maximum in achieving
strong brand image and expansion of business irrespective of the size whether small, medium or
large. Here, marketing manager play a vital role in conducting marketing analysis so as to
identify the market needs and preferences of targeted people which enable management of an
organisation to take further suitable actions to expand its business operations to a wider scale.
The present assignment report is briefly discussing the proper market research that enable Marks
& Spencer (M&S) to examine their growth and various marketing opportunities. To conduct
market research, PESTLE, SWOT analysis shall be conducted along with competitor’s matrix,
Boston consulting matrix and Ans-off matrix. The project also briefly explained the different
segments on the basis of which marketing plan and strategies has been formulated. All other
aspects required to conduct marketing audit are briefly summarised under this report.
(Introduction to Marketing, 2018).
TASK
Marketing Audit of Marks & Spencer (M&S)
Marketing is an essential part of business functions which brings reliable information
about market trends towards the management of an organisation which assist them to make an
effective decision in order to achieve strong brand position in market. M&S is known and well
established retailer organisation of UK which is engaged in providing multiple number of
products such as home products, clothing and luxury food products of standard quality. As it is
operating at large scale, it is very important for the management of an organisation to conduct its
market audit so as to identify their actual position in market (Bacik, Gavurova and Fedorko,
2015). It makes easy for management to develop their existing plans and policies according to
the current marketing trends so as to achieve strong sustainability. Here is the marketing audit of
M&S:
SWOT Analysis of Marks and Spencer (M&S):
SWOT analysis is conducted to identify the actual strengths and weaknesses of an
organisation along with the growth opportunities and threats. M&S is engaged in clothing market
where lots of competitors are available to damage their sustainability therefore it is more
important for the management of M&S to conduct SWOT analysis so that they can be able to
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make relevant changes in their existing plans and policies so as to achieve strong stability among
their rivals in market (SWOT Analysis, 2018).
Strengths Weaknesses
 M&S is one of the largest UK retailer
engaged in multiple number of products
such as home, wine, furniture, clothing
and many more products due to which
it has attained huge customer base.
 M&S has also their own label brands
such as Per Una, North Coast etc.
which makes customers more familiar
with the name Marks and Spencer and
also enhance brand recall.
 It has attained more than 80,000
employees who are employed in their
showrooms and offices around the
world.
 It has operated more than 300 full-line
stores, 910 stores in UK itself, 220
owned and 310 franchised simply food
stores which makes their strong
presence at local as well global market.
 It is primarily operated in UK, Europe
and US but failed to achieve strong
presence in Asia and Middle East due
to having clothing products in western
pattern and not traditional.
 Poor scalability of the supply chain as
the company tried to offer global access
to their merchandise through their
online stores but failed to scale up their
supply chain to all locations globally.
 Customers facing lots of issues related
with its returns policy as well as in-
store experience which adversely affect
their brand loyalty and increase brand
switching.
Opportunities Threats
 Should engaged in selling ethnic and
traditional wear which makes easy for
company to expand its business to Asia
where such types of clothing products
are more in demand.
 Required to introduce new market
segment through opening their
 Aldi, Asda, Tesco etc. are some tough
competitors which brings lots of threats
and challenges towards M&S that will
may damage their strong sustainability
in market.
 Small-sized retailers of UK are also
bring threat to company due to their
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branches at rural areas as well.
 It also needed to develop their websites
in order to provide an option to their
targeted people to buy company's brand
product without visiting at their outlets.
discounted prices.
PEST Analysis:
Illustration 1: What is PEST Analysis?
Source: What is PEST Analysis?. 2018
Political: It includes the fluctuations in political conditions of nation which may either
support or restrict company to achieve further growth and sustainability. M&S is mainly
operated in UK where free trade agreements and European integration has motivated new
markets and companies of other countries to invest in Europe which affects the sustainability and
profitability of M&S.
Economical: It is related with economic fluctuations of nation which can also either
affect the buying behaviour of targeted people in positive or negative manner. Current economic
situation in the UK is favourable with low-to-moderate interest rates which signs a healthy
economy. M&S need to concentrate more on clothing line as younger generation spends most of
their disposable incomes on clothing due to which their profitability has been increased (What is
PEST Analysis, 2018).
Social: It is related with the interest and behaviour of targeted people which can
influences the pre-determined decisions and plans made by the management of M&S. Customers
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in UK has the tendency of being loyal to one brand and quality of products which is good sign
for the profitability of company. In addition with this, expanding its business to Asia with
western clothing product brings failure for company due to having ethnic and tradition wear
more in demand in Asia.
Technological: It is related with technological advancements which supports an
organisation to achieve huge sustainability and profitability. The retail industry in UK has
witnessed radical technological changes such as use of internet as the basis of online shopping
store which widens the use of e-commerce in the industry. Therefore, online selling and
marketing help company in achieving strong brand image all over the world.
Ansoff Matrix:
Marks and Spencer (M&S) is required to examine their overall business portfolio through
using Ansoff Matrix. Since the company is one of the largest retailer organisation which is
operated at multiple number of nations such as UK, India etc. therefore in order to achieve
further growth and development, Ansoff matrix is more suitable to be applied by M&S which are
described as under:
Market Penetration: In this strategy, the company seeks to achieve growth with existing
products in current market segment with an aim of increasing its market share. M&S have lack
of variety in clothing thus if they can develop through decreasing prices of products and
increasing channel of promotion etc. then they will achieve competitiveness among their rivals.
Market Development: In this strategy, the company achieve growth by reaching its
existing products to new market segments. It can be done by M&S through expanding its
business operations to new countries and can also consider entering new segment like children's
wear and teenagers to be competitive. It can be done through opening stores in different nations
such as New Zealand where the western wear is more in demand.
Product Development: In this strategy, the firm achieve growth by introducing new
products to current market segments. It can be achieved by M&S by developing the per una
brand as it is already established brand. Entering into financial services and banking sector are
the suitable example of new product development (Baines, Fill and Page, 2013).
Diversification: In this strategy, the company achieve growth by diversifying into new
businesses by developing new products for new markets. M&S can also diversify in food, beauty
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products and home appliances and get into partnership with other retailers which makes easy to
expand its new product into new market segment.
Research on market segmentation
Market segmentation is an approach to target the market group in order to execute its
products and services. It mainly connected with analysing the possible group and potential
customers. All over analysis shall be done through considering the elements of marketing mix as
Price, Product, Place, People. These elements are more effective to consider in order to evaluate
product and services so as to examine the positioning among the competitors.
Marks and Spencer (M&S)
Marks and Spencer (M&S) primarily uses demographic segmentation to target in order to
market its products and services. M&S are having an effective management who are more
capable to manage and operating the business functions more smoothly. It can be done through
making an effective decisions and suitable strategies in order to build essentialist in marketing
options and determination of targeted customers. The aim of market segmentation mainly
associated with analysing the marketing plans and strategies for jey market segments related to
demand and Metric's Free market segmentation tools to analyse market size. This also help to
play demographic and Psycho graphic and environmental criterion in various forms to evolve
marking strategies (Baker, 2014).
M&S is one of the largest retailer organisation which deals in providing multiple number
of products in 40 nations through over 300 full-line stores, 910 stores in UK itself, 220 owned
and 310 franchised simply food stores. Its products are men and women garments, financial
services, food products, furniture and many more. UK is one of the developed nation where
small and medium sized organisation are operated at large. M&S is attaining strong brand image
in UK as well as at global market. It is achieved by company through adopting various new and
innovative ideas and approaches regarding marketing and sales. Through this, the company can
increases their sustainability and profitability (De Mooij, 2018).
Market Segmentation
It is the process of classification of a market or consumers in various groups such as their
income, needs along with their different characteristics. By using this, various organisations may
analyse their consumers needs and they will able to use their resources effectively. In addition to
these if organisation wants to launch a product in the market they will also categorised the
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market at various levels. M&S use this because they deals in various products marketed in
different nations which makes easy to analyse the needs and preferences of different segments.
M&S is divided market segmentation into two major parts such as:
Market segmentation as per age group: M&S is well-established retailer organisation
which offers products and services for every age groups such as kids, adults, women and
clothing segments for 30 plus age groups. Market segmentation is beneficial for an organisation
to analyse the information related with customer perspectives and preferences changes on
frequently basis. For this, Data based marketing is considered as an effective marketing
technique which is adopted by company subject to market segmentation. It may face challenges
and consequences related to various fields and sections. Through adopting the tactics of data
based marketing, the managers and accountants of M&S are able to bifurcate the product market
and penetration are mainly intended to deriving the plans for better classification (Engelen and
Brettel, 2011).
Product specification and specific market groups are considered as an important part of
generating income and analysing the financial plans. M&S is mainly focuses on maximising the
satisfaction level of its targeted people through offering quality products and services which
indirectly support them in establishing the customer market in more significant manner. Their
products and services covers all age groups and people to invest and grow structure in more
effective and specified manner.
Market segmentation as per income group: Price is one of crucial factor which can
affect the market segmentation of M&S. Charging high prices on products diminishes the buying
power of targeted people as the people have limited disposable income. Therefore, the
management have primarily focuses is to analyse the perception of people towards the pricing
policy of company and on the basis of which set an effective competitive pricing policies. It
includes four segmentation which are described as under:
Demographic: Under this, the population has been divided on the basis of gender, age,
income level etc. It assist management of M&S to analyse the preferences and needs of targeted
people according to their characteristics. For an instance, M&S targeted middle income group
due to charging moderate prices.
Geographic: Under this, the market has been divided on the basis of locations or regions
where the targeted people are located. It help M&S to decide the locations where the demand of
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their products are high in order to achieve further expansion of business. For example, M&S is
primarily targeted UK market due to selling western wear garments which are high in demand.
Psycho-graphic: Under this, the population has been divided on the basis of lifestyle,
standard of living and attitude of people. It makes easy for M&S to differentiate people on the
basis of their lifestyle so that products has been marketed accordingly. For example, ethnic and
traditional wear garments are high in demand in India due to which M&S can easily expand its
business through engaging in selling demanded products in such nation (Dholakia, 2012).
Behavioural: Under this, population has been divided on the basis of buying behaviour,
brand loyalty of targeted people. This will help M&S to supply its products to such area which
are more in demanded by people on regular basis. For example, In UK customers who wear
western garments on regular basis remain loyal with M&S.
Out of the above mentioned four segmentation, M&S is mainly targeted Geographic and
Psycho-graphic segment with an aim of increasing sales figure and revenue in clothing business.
Reasons of targeting such two market segmentation: Geographic: As M&S charged moderate price on their clothing products which an easily
attracts middle income group.
 Psycho-graphic: Western wear garments are always high in demand in UK, USA etc.,
due to which M&S adopted such segment in order to achieve huge sales figure and
revenues.
Marketing Strategies
Marketing refers to keep customers satisfy with the products and services offered and
promoted by company through using various activities such as promotion, distribution and
delivering of product to end user. For this, M&S are made several marketing strategies to
influence interest and buying behaviour of potential customers through awaking them about their
developed products and services. Following are the marketing strategies:
Product description:
It refers to the classification of products features, quality and price which is used to
market among targeted people. M&S is global retail company which primarily deals in three
segments such as clothing, home product and luxury food product. It is known for women wear
that captures 11% market share. It always tried to bring innovation in their products so as to
bring competitiveness among their rivals products (Gopaldas, 2015). M&S adopts various
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promotional tools and techniques in order to increase awareness about the characteristics of their
products and services towards targeted market. It includes TV advertisements, Hoardings, Hiring
celebrities etc.
At present times, M&S is started to deal in financial services with an objective of
capturing large market share as well as revenue. As M&S mainly targeted two segments such as
Geographic and Psycho-graphic therefore providing financial support to lower as well as middle
income group make them more capable to buy their brand cloths and luxurious food products. It
directly makes positive impact on their market share and profitability (Jung and Soo, 2012).
Brand image:
It simply defines what the brand currently stands for. Brand image is a perception in
customer's mind for particular brand existing in market. M&S maintained the position of their
produce in such an effective way that will not only attracts customers towards products but also
towards company image. This can be supported by brand communicators such as packaging,
advertising, word of mouth publicity and other various promotional tools. Brand image is
basically affected positively when the company successfully maximises the satisfaction level of
its customers through their quality products and services thus M&S has already attained good
brand image due to selling quality products to all age groups at an affordable prices.
Pricing Objective strategy: It is considered as an effective strategy which can either
easily attracts customers or can shift them to their rivals products. Setting an effective pricing
strategies strong the stability of company due to achieving huge customer base. M&S uses
effective pricing strategies due to which it has attained huge customer base and revenues
(Moutinho and Huarng, 2013).(Palmer, 2012)(Shaw, 2012)
Distribution strategies and objectives-
In MNC such as Marks and Spencer (M&S), various products and services are delivered
to their consumers with wide varieties at different places, so it is very important to analyse the
distribution channel. There are some types of distribution which are as follows:
Indirect distribution – It follows a way where manufacturer directly connects with lower
part of chain, when a product is manufactured it reaches to customer via retailers. By using this
tool M&S will be able to reach their product to their customer with effective service.
Direct distribution- In this channel, manufacturer wants to deliver service in proper way
to their customers without hiring any intermediaries. By using this channel M&S will capture
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their customers with giving proper service in time because they operates business at a huge level
in the market, it may be helpful for creating connection with their customers.
Intensive distribution- It is also an important tool which is used by the manufacturer to
make a strategy through analysing various information about target market. In M&S their
marketing manager has to gather information about demands of their products at various
marketplace that
will helps to producing products with quality and it will be provided to their customer in a proper
way.
Selective distribution – In this type of channel manufacturer wants to increase their
revenue with delivering product at proper quality and services to their customers. In M&S they
should determine the field where their product has huge demand , they can give their products
with quality at those places which will be helpful for increasing their revenue.
4P's of Marks and Spencer (M&S)
Product: Marks and Spencer is the most known brand in the world. It gives various
products with eco-friendly and fair priced goods for all groups such as male female and children.
In various category, they deals in selling beauty products, clothing products, furniture products,
food products, Daily use accessories etc.
Place: It has operated its stores in various countries such as India, china, turkey,
Malaysia. In UK there are 979 outlets of marks and Spencer. There are 84939 employees who
are working with organisation around the world by the report of previous year. In 1999 company
launches their online portal for selling its products and services due to which the M&S has
currently attained huge customer base.
Price- They are believing in giving best service to their customers including male, female
and children. They gives various offers to their customers such as cashback, coupon discount. It
will be beneficial for M&S as they believe in fair pricing policy so that their customer are loyal
and they achieve place in their customer's mind (Marketing mix of Marks and Spencer, 2018).
Promotion – They believes in fair marketing in the market, it gives positive results for
them. They adopt all the tools which are useful for promoting a product such as pamphlets,
hoardings, celebrity endorsement, TV advertisements etc.
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CONCLUSION
It has been concluded from the above project report that it is important for every
organisation irrespective of the size whether small, medium or large to conduct market audit on
specific period of time in order to analyse their actual market position at present time. For this
purpose, the management must required to conduct PESTLE, SWOT Analysis, Ans-off matrix
strategies. It also required to properly identify the market segmentations so as to identify and
fulfil the needs and requirements of selected market segments.
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REFERENCES
Books and Journals
Bacik, R., Gavurova, B. and Fedorko, I., 2015. The analysis of the impact of selected marketing
communication factors on the online consumer behavior. Journal of Applied Economic
Sciences. 10(7). pp.999-1004.
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Baker, M. J., 2014. Marketing strategy and management. Palgrave Macmillan.
Engelen, A. and Brettel, M., 2011. Assessing cross-cultural marketing theory and research.
Journal of Business Research. 64(5). pp.516-523.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Dholakia, N., 2012. Being critical in marketing studies: the imperative of macro perspectives.
Journal of Macromarketing. 32(2). pp.220-225.
Gopaldas, A., 2015. Creating firm, customer, and societal value: Toward a theory of positive
marketing. Journal of Business Research. 68(12). pp.2446-2451.
Jung, L. H. and Soo, K. M., 2012. The effect of brand experience on brand relationship quality.
Academy of Marketing Studies Journal. 16(1). p.87.
Moutinho, L. and Huarng, K. H., 2013. Quantitative modelling in marketing and management.
World Scientific.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Shaw, E. H., 2012. Marketing strategy: From the origin of the concept to the development of a
conceptual framework. Journal of Historical Research in Marketing. 4(1). pp.30-55.
Online
Introduction to Marketing. 2018. [Online]. Available
through:<https://study.com/academy/lesson/introduction-to-marketing-definition-and-
applications.html>.
What is PEST Analysis?. 2018. [Online]. Available through:<https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>.
Marketing mix of Marks and Spencer. 2018. [Online]. Available
through:<https://www.marketing91.com/marketing-mix-of-marks-and-spencer/.>.
SWOT Analysis. 2018. [Online]. Available
through:<https://research-methodology.net/theory/strategy/swot-analysis/>.
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