Introduction to Marketing

This document provides an introduction to marketing, focusing on the marketing audit of Marks and Spencer and the evaluation of their current marketing strategy. It also includes proposals for two sets of market segmentation criteria that can be targeted by the company. The document covers the external and internal environment analysis, marketing strategies such as social media marketing and relationship marketing, and the position of Marks and Spencer in the market.

Introduction to marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing audit of current business performance.......................................................................1
Evaluating current marketing strategy along with position of company in market.....................5
Proposal of two sets of market segmentation criteria..................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is one of business process that involves managing exchange relationships. It is
the combination of all those activities that are undertaken for promotions of purchasing along
with selling concrete items and immaterial services (Armstrong and Et. Al., 2018). It generally
comprises advertising, selling and providing goods to final consumers and other types of
businesses. For understanding introduction to marketing, Marks and Spencer is considered which
is leading British retailer having head-office at London, Unite Kingdom. It works for bringing
quality of clothing and home-ware, great value food and so on for customers residing around the
world. The present report involves marketing audit of existing business performance, evaluation
of enterprise marketing strategy along with position in market. Further, it includes proposal
related to two sets of market segmentation that can be targetted by company in successful
manner so to meet requirements of segments and moving business forward.
MAIN BODY
Marketing audit of current business performance
Organisational overview
Marks and Spencer is multinational retailer which perform operations for bringing great
value clothing, foods and many products. It was established by Thomas Spencer addition to
Michael Spencer in 1884 for serving activities in retail industry (Marks and Spencer, 2020.). It
has approx 1400 stores in more than 55 countries and around 50 international websites. Along
with this, the company provides wide types of financial services such as current account,
insurance, credit card facility and so on.
Marketing Audit
Marketing audit is described as a tool that is used for undertaking, reviewing and
examining marketing environment in comprehensive and systematic manner. In other words, it is
a evaluation technique which is undertaken for analysing, evaluating together with interpreting
internal and external marketing environment for ascertaining problem areas, opportunities and
plan of action with the purpose of enhancing business performance (Avraham and Ketter, 2016).
Through marketing audit, plans, objectives, tactics, current activities and strategies are reviewed
that provides insights about actual business performance in current scenario. For this purpose,
organisational members conducts internal addition to external analysis that further directs in
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formulating major strategical decisions for enterprise betterment. In association to Marks and
Spencer, marketing department conducts marketing audit by using tools associated with internal
environment audit and external environment audit (Tools to conduct marketing audit, 2020).
Marketing audit is as undertaken:
External environment: In this market auditing, all the external forces are considered that
are outside control of business concern. The type of marketing audit provides information about
elements that can leave impacts on organisational decisions and operational efficiency at great
extent. At the time of conducting external marketing audit, it is essential to analyse external
environment and its factors for getting insights for actual organisational status. One of the
effective tool for external marketing audit is PESTLE analysis. The analysis is mentioned as
framework which is majorly opted for the purpose of analysing and observing macro
environmental factors that can have profound influences of performance of entity. Marketing
department of chosen retailing entity have evaluated all elements of the PESTLE analysis that
are as follows:
Political factor: Factors which are concerned with the ways and the degree at which
government intervenes in working of particular industry or nation's economy are political factors
(Ballings, McCullough and Bharadwaj, 2018) . It majorly comprises environmental laws,
stability or instability of political authority, policies of government and foreign trade
programmes. As Marks and Spencer operates main functions in UK, where it is seen that the
political system are stable as well as fair. The managers of respective retailer performs
operations by complying with all imposed legislations by political parties that helps in
performing activities in appropriate and systematic manner. In upcoming duration, when the
company will not be able to work with political requirements then various strict actions may be
taken by political people that may influence organisational performance negatively.
Economic factor: Factors that determines performance of particular economy are
economic factors. Exchange rates, unemployment rates, economic growth, disposable consumer
income and changing business cycle are few economic factors which organisational members
considers while analysing current performance (Baines and Et. Al., 2017). UK has one of
globalised economy that helps administrators of Marks and Spencer to properly analyse all the
economic dimensions and then frame suitable determinations according to findings. With this,
decisions such as product and pricing are formulated for meeting choices and preferences of
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customers so to increase profit levels. Moreover, fluctuations on market affects buying power of
customers due to which productivity and profitability of Marks and Spencer are impacted
negatively as it becomes too difficult to sell organisational commodities in fluctuating market.
Social factor: the factor that represents demographic customs, nature, values and beliefs
of population are social factors. The population of UK are changing their preferences as per
available commodities (Dietrich, Rundle-Thiele and Kubacki, 2017). For meeting their demands
and choices, it is essential to consider all at the time managing committee of Marks and Spencer
formates strategies about product availability and many more. Being international company,
managers emphasises of demand of customers that resides at different locations and makes
offering accordingly that increases ales volume which impacts positively on current performance
of entity so to make availability of goods at all places.
Technological: Factors that are part of technological innovation addition to advancement
are technological factors which affects operations and position of company. Within UK,
technological factors changes rapidly and frequently (Deepak and Jeyakumar, 2019). Adoption
of technological changes, upgrading innovation level and technological awareness impacts
positively of increasing efficiency of company such as Marks and Spencer to perform
operational functions and achieving good position in market. The entity executes its key
operations by using latest and innovative technology including self swipe machines for
payments, delivery at home and many more for grabbing mass customer attention.
Legal factors: Factors that have some relation with political elements are legal factors. It
involves specific legislations, for example, antitrust laws, patent laws, consumer protection law
and safety laws. UK's government are majorly responsible to implement the laws and
organisation have to adhere them accurately. In relevance with Marks and Spencer, the managers
comply all policies, acts and legislations such as consumer protection laws, discrimination law,
ethical consideration in activities of marketing that are imposed by political parties that helps in
executing operational activities in set criteria that impacts positively on improving performance
of company.
Environmental factor: Factors that have emerged in recent relative years are
environmental factors (Dodson, 2016). In UK, all companies have to focus on environmental
factors while making plans for actions. Factors including environment offsets, ecological aspects
and climatic changes generally impacts performance of company in present scenario. Marks and
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Spencer managers focus on utilising scarce resources optimally, reducing carbon footprint targets
as well as implements all environmental laws in their manufacturing process that impacts
positively on fulfilling corporate social responsibilities. Moreover, the managers performs
activities for ensuring that the products sold by them are environment friendly addition to do not
harm people and environment.
Internal environment: Within this audit, all internal elements are considered that are
controlled by organisational authorities. It comprises those factors that influences performance of
internal operations (East and Et. Al., 2016). For conducting internal environment auditing,
SWOT analysis is suitable tool that marketing team of Marks and Spencer can choose. With this,
they will be able to evaluate opportunities, weaknesses, threats and strengths for assessing
performance of business together with developing plan of action to move forward. The analysed
elements are discussed underneath:
Strengths Weaknesses
 Chosen retailer has giant
recognition in UK's street or the
quality it has been providing in
market since its establishment.
 Product line of Marks and Spencer
is wide through which it offers
huge variants of valuable
commodities in market for
customer attraction prospectives.
 In context to supply chain scalability, it is
poor that impacts on business operation,
market image addition to performances.
 Customers of respective retailer often
exhibits low level of satisfaction due to
which they switches to other brands and it
results in poor loyalty towards brand
impacting business performance (Fill and
Turnbull, 2016).
Opportunities Threats
 The retailer by reshaping its
segments of clothings and food can
attain opportunity of improving its
performances in international
market (Folinas and Fotiadis,
2017).
 Managers of the entity are planning
 Stiff competition in retail sector is threat for
Marks and Spencer as it impacts on its
working within industry that affects
profitability for upcoming duration.
 Changes in clothing trends and food items
and when no focus is made on these by
managers of chosen retail business then it
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for adopting online platform so that
its online beingness can reinforce
its market position.
may hamper its current performances
through declining market shares and many
more.
Evaluating current marketing strategy along with position of company in market.
Marketing strategy
Marketing strategy is mentioned to the tactic that is designed for purpose of promoting
products along with making revenues. Business concerns formulates marketing strategy for
promotions of offerings in market. Through this, all determined objectives are achieved promptly
by institutions. Effective marketing strategy assist members of companies in identifying best
audiences and understanding their needs. Moreover, with the help of good marketing strategy, it
becomes easy to implement effective marketing methods. Marketing department of Marks and
Spencer uses various marketing strategies including business to business marketing and business
to customer marketing. Among the both, marketers of selected retailers implements activities
related to marketing commodities (Marketing strategies, 2019). Following are the evaluation of
few marketing strategies of Marks and Spencer:
Social media marketing: In present era, it is considered as effective marketing strategy
that is undertaken through social media platforms addition to websites fro promotional aspects.
In context to Marks and Spencer, marketing team uses social media platform such as Instagram,
Pinterest, YouTube and Facebook so to connect with huge customers for building the brand
image, driving website traffic along with increasing sales. Marketing products with the social
media marketing benefits the company in reaching to mass population, making direct
connections with potential client, creating organic and viral content, evaluating performance and
uncovering valuable insights. In contrary, the limitations of using this marketing strategy is that
various negative feedbacks are analysed, need huge investment for social media campaigns and
company have to wait for long time so to see outcomes.
Relationship marketing: The other marketing strategy in which major emphasis is on
customer building. In this marketing strategy, company majorly focuses to retain customer and
providing huge satisfaction levels to them despite of sales transactions (King, 2019). In present
scenario, one of difficult task for any company is to acquire new customers. For such purpose,
marketers of Marks and Spencer uses relationship marketing strategy for making long term
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relationships with huge market population despite of encourage sales of commodities. They
fosters customer loyalty for the brand through offering exemplary commodities and services.
Through this strategy, an entity is benefited as it enhances communication levels, customer
satisfaction, and creates positive experiences. At same time, few of its disadvantages are that for
making relationships huge time is required and with change sin value propositions, marketing
efforts are also to be change than becomes difficult for entity.
Transactional marketing: The other strategy of marketing which focuses towards point
of sale along with single transactions (Hastings and Stead, 2017). It is related to traditional
marketing approaches that are product, promotion, pricing and placement that emphasis for
increasing efficiency and individual sales volume despite of creating relationship with purchaser.
At Marks and Spencer, marketers follows transactional marketing strategy for increasing sales
transactions. Advantages to use this marketing strategy are that it benefits in clearing seasonal
merchandise and increases profits of entity. In contrary, it limits emotional attachments, reduced
profit margins and requires huge time and efforts for promoting products.
From above evaluated marketing strategies of Marks and Spencer, it can be said that
marketing strategies are required for gaining market shares, making relationships, increasing
sales transactions and many more. Through these strategies, Marks and Spencer has achieved top
position. The retailer has itself made effective position as premium brand with retailing and
supermarket industry. The entity has achieved around 10337 million GBP in last year through
which has achieved top position in UK's retailing sector. Moreover, it split 62.5% of food, 37.5%
of clothings and home and employs around 79 thousand people among which 71% are females.
Proposal of two sets of market segmentation criteria
The directorial team of Marks and Spencer have asked marketing department to prepare
sets of proposal related to two marketing segmentation sets that can be targeted for attaining
upcoming growth. For this, first market segmentation sets are analyses and then two proposals
are presented below:
Market segmentation: It is described to the activity in which marketers divides entire
market on different groups that have similar characteristics or as per some common choices
(Kolb, 2016). With this, entities are able to determine distinct customers types that are willing to
purchase its goods that are offered in market. For choosing best segment for the purpose of
introducing organisational valuables in market, marketers are required to conduct market
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research, collecting data about interest, choices and preferences that will assist in introducing
products as per the collected data or elements. Market segments are classified into diverse types
that can be targetted by Marks and Spencer for growing the business in the retail marketplace.
The segment types are discussed underneath:
Demographic segmentation: When the whole market is segregated in terms of income,
family size, education level and so on variable it is termed to demographic segmentation. This
segmentation form can be opted by marketers of chosen entity for catering specific commodities
to obvious needs of people in context to one demographic element (Layton, 2019).
Geographical segmentation: the other segmentation type in which market is segregated
as per predefined geographical borders. Elements of geographical segmentation includes
differences in values, choices and demands vary within cities, regions and nations. It can be used
when Marks and Spencer is planning to introduce commodities in new geographical area.
Psycho-graphic segmentation: In this segmentation, dividation of market is done
accordance with traits, conscious, lifestyle, interest and opinions of customers. Selected retailer
can target the segment so to move forward by building effective strategy.
Behavioural segmentation: The segmentation type that majorly emphasis on particular
reactions along with how customers makes decision and gets involve in buying processes
(Lumsdon, 2016). Through this, segmentation are done as per buying pattern such as brand
loyalty, purchasing behaviour and usage frequency.
According to above analysis, it is proposed to directors of Marks and Spencer to
emphasis towards demographic along with geographic segmentation and both could be targeted
by marketers as they will assist in achieving business growth and moving business forward. The
proposals for two market segmentation set criteria are provides below:
Proposals:
First set: Geographic segmentation: It is proposed to Marks and Spencer to target
geographical segmentation through business expansion in new area of location. Through this,
organisational market shares will be increased that will further lead in enhancement of level of
sales and revenues. As Marks and Spencer in present scenario is not working in Latvia nation so
expanding the legs in this country will be biggest opportunity for moving business forward.
Opening new store at new location area is not easy as it needs huge research about customer
behaviour and preferences for the products in order to formulate best marketing and business
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strategies for product, price and many more aspects. When an enterprise introduces new product
in different country no customer gives attention on it because of lack of trust for new company
and its product. Being a top positioned retailed, Marks and Spencer have made good image and
because of it, this challenge will not impact too much on it. For marketers of the retailer, it is
essential to frame marketing strategies by considering variables of culture, belief and interest of
Latvia nation so to make good image in population mindset. When marketers will select this
segmentation type then they will achieve success for expanding business through opening new
store in the new nation (Terech, 2018) . Its current marketing strategies will also play import role
in attaining competing benefits and meeting choices of targetted population through delivering
quality commodities.
Second set: Demographic segmentation is other market segmentation criteria which can
be emphasised by Marks and Spencer to target people as per education level, age factor, income
level and many more. Within the segment, directors of the retailers could introduce new product
that is Gym essentials for particular segment of people that is population between 16 to 30 years
of age as they emphasis more on their health and fitness aspects. For introducing the new
clothing product, marketers of chosen retailer needs to determine customer buying behaviour for
fulfilling demands and establishing positive image in targeted audience eyes. When the company
will select this segmentation type then it will increase its customer base. With this, the business
of supermarket can be moved forward success through making more profits and maximising
customer base. Moreover, the segment will benefit the company to reach huge population and
satisfy their all needs for Gym essentials. At the time of devising suitable marketing strategy,
marketers focus towards aspects related to place for selling the new product and favourable price
of product that suits customer purchase behaviour (Vietoris, 2017). By using its current
marketing strategies and business position, marks and Spencer could meet all customer
requirements in demographic segment through providing them guidances to reach stores and
influencing them to implement purchase decision that will help in growing business at successful
heights within retail marketplace.
CONCLUSION
The above report concludes that marketing is mentioned to discipline that includes
actions for drawing attention of customers together with creating networks with them. It helps
companies in transferring and exchange of goods, raising and maintaining living standards of
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society, creating employment, making decisions, generating revenues, sourcing new ideas and
developing economy. For market auditing, tools such as PESTLE analysis as well as SWOT
analysis are used for getting insights about current performance of company. Current marketing
strategy that is opted by companies includes relationship marketing, transactional marketing and
social media marketing strategy for achieving top positions through increasing satisfaction of
customer base by making relationships and influencing sales transactions. Market segmentation
set that can help in growing business forward are demographic segmentation and geographical
segmentation in the pertaining sector.
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REFERENCES
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Ballings, M., McCullough, H. and Bharadwaj, N., 2018. Cause marketing and customer
profitability. Journal of the Academy of Marketing Science. 46(2). pp.234-251.
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Dietrich, T., Rundle-Thiele, S. and Kubacki, K., 2017. Segmentation in social marketing.
Springer Singapore:.
Dodson, I., 2016. The art of digital marketing: the definitive guide to creating strategic,
targeted, and measurable online campaigns. John Wiley & Sons.
East, R. and Et. Al., 2016. Consumer behaviour: Applications in marketing. Sage.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Folinas, D. and Fotiadis, T., 2017. Marketing and Supply Chain Management: A Systemic
Approach. Routledge.
Hastings, G. and Stead, M., 2017. Social marketing. Taylor & Francis.
King, W. R. ed., 2019. Marketing scientific and technical information. Routledge.
Kolb, B. M., 2016. Marketing strategy for creative and cultural industries. Routledge.
Layton, R., 2019. Marketing Systems–Looking Backward, Sizing Up and Thinking Ahead.
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Lumsdon, L., 2016. Marketing for tourism. Springer.
Terech, A., 2018. An Introduction to Marketing and Branding. Generations. 42(1). pp.45-49.
Vietoris, V., 2017. Introduction to sensory marketing. In Sensory and aroma marketing (p. 160).
Wageningen Academic Publishers.
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Marketing strategies. 2019. [Online]. Available through: <https://www.yodiz.com/blog/8-types-
of-marketing-strategies-and-definition/>
Marks and Spencer. 2020. [Online]. Available through:
<https://corporate.marksandspencer.com/contact/headquarters>
Tools to conduct marketing audit. 2020. [Online]. Available through:
<https://www.sitepoint.com/tools-for-conducting-a-marketing-audit/>