Introduction to Marketing Assignment | Marks and Spencer

Introduction to
Marketing
Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Marketing Audit.....................................................................................................................1
Market Segmentation..............................................................................................................6
Buying Behaviour...................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Marketing is determine as a business procedure which is related to developing
relationship and fulfilling customers need and demand. For business management marketing is
one of the main concept which help an organisation in promoting its business in effective
manner. The main aim to marketing to determine demand and supply of users so that company
create good and services in effective manner (Anda and Temmen, 2014). Organization chosen
for given project work is Marks & Spencer that is established in 1884 by Michael Marks and
Thomas Spencer. Its headquarter is situated at London, United State and it is operating its
enterprise at global level. Topics that are included in this report are marketing audit which
analysis business current performance and market position as well as it will also include set of
market segmentation which help company in succession of their business. Along with this it will
also include analysis of customers buying behaviour and marketing strategy in order to meet
requirement of service users.
MAIN BODY
Marketing Audit
Marketing Audit is define as a method which provide review of marketing plan,
strategies, objective, current activities and many more of a company. This will help management
of a firm in developing strategies that is connected with goods and services according to
requirement of customers. There are various functions of marketing audit i.e. task surroundings
accounting, selling administration scrutiny, marketing scheme scrutinize, marketing system
audit, marketing function audit, market productivity audit and macro environment audit. Through
these a company able to develop proper strategies as well as plans that helps to attainment of
advanced profitableness and industry part (Baker, 2016). There are various type of method and
approaches which are used by an organisation in order to conduct marketing audit such as
marketing mix, porters five force, porters generic model and so on. The respective organisation
is performing marketing audit in order to know as well as understand current business
performance, marketing strategy position, for which they adopt several model which are explain
below:-
Marketing Mix:
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Marketing mix is consider as foundation model for a business that is used by a enterprise
for conducting and attain their marketing objective at company's target market. It is based on
major four level of decision making products, price, place and promotion. It is generally adoptive
by respective organisation for promoting their business in effectual and proper way so that more
and more service users get attracted as well as encouraged to purchase offerings. In respect of
Marks and Spencer they adopt marketing mix in order to investigation their market and so that
they can design their products and services accordingly that helps in attracting users at vast ratio.
Analysis of which is given below:-
 Product: It is define as tangible goods or intangible service which is provided by
company in order to meet requirement of their potential service users. For this
management if a firm conduct proper market analysis so that they develop proper
products or services according to requirement of customers (Buhler and Nufer, 2012).
There are several type of products offer by Marks and Spencer which are generally eco-
friendly. They offer apparels, accessories, footwear, lingeries and so on for men and
women as well as respective company also offer school uniform, dresses, shorts,
swimwear, pyjamas, boots, shoes for kids. Along with this respective company also offer
beauty and home products like skincare, make-up, hair care, toiletries, bed, cooking wear,
travel bags, luggage, artificial flower and many more. They also deal in wine, food and
furniture section which include products like sofa, footstools, table, red wine, rose wine,
cake, fruits, cold meat and so on.
 Price: It is define as actual amount which is paid by service users for end product
provided by company. Price selected by a company is based on economy condition of
customers so that potential as well as target customers afford products in effective way.
The respective organisation offer their products and services for upper as well as upper
middle class peoples or society (Marketing mix of Marks and Spencer, 2019). They set
their product price according to diverse range, quality and convenience. The respective
company has its in house brand apparels for all sectors i.e. men, women and kinds which
means it is of high quality so that their price is based between medium to high range.
 Place: It is also consider as placement of products and services so that customers can
easily grab offerings. This is generally related with key elements of distribution of
products and services. Place decided by a company must be easily reachable by
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customers and it contain all good that are required by customers. The respective
organisation operate their business operations and function at international level which
include Spain, Qatar, Morocco, Ireland, Kabul, Canada, France, Belgium and many more.
Its headquarter is situated at City of Westminster in London, United Kingdom. Marks
and Spencer sell their good and services at their outlets or stores as well as their stores are
also decorative and attractive.
 Promotion: It is define as method that is adoptive by a organization for communicate
with potential service users. This will include several activities such as sales promotion,
advertising, special offers, discount, public relation and many more (Bühler and Nufer,
2015). Through this company able to enhance awareness of product and service at
potential marketplace. In respect of Marks and Spencer they adopt various method in
order to conduct promotional and advertising activities such as they do advertisement
through magazines, radio, newspaper, digital media, visual media and many more. Along
with this they also do online or social promotional activities through Instagram,
Facebook, blogs, twitter and so on.
Porters five force model:
This model is developed by M. Porter in year 1979 which include major five key
competitive forces that will impact on the industry. This will also help in determining industry
structure as well as competition level at a particular industry. It is generally adopted by an
organisation in order to analysis industry structure and competition. Management of Marks and
Spencer adopt this method so that they can conduct industry analysis in effective manner,
explanation of theory is given below:-
 Bargaining Power of buyer: It refers to the situation when bargaining power of buyer
will impact on business operations and functions of a company (Burgess and Steenkamp,
2013). This is so because customers attracted toward those products which are based on
new trends and offer at low cost. In respect of Marks and Spencer they are operating its
business at clothing industry and there are numbers of company which are operating at
similar industry and which offer same kind of products at low price. So in respect of
respective company bargaining power of buyer is high. This is so because there are
several other clothing companies like TESCO,Next, John Lewis and so on which offer
same range of product at multiple retail store.
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 Bargaining Power of suppliers: It is define as power of supplier when they can demand
more money for low quality of products and services. The Marks and Spencer has its own
brand house and their mostly products are produce or manufacture at their own
workplace (Chaffey and Ellis, 2019). Due to which in case of respective company
bargaining power of suppliers is low. Along with this there are several products or raw
material which respective company import from their suppliers. In this case they develop
as well as maintain effective relationship with suppliers so that they can provide them
raw materials at effective or low price.
 Threat of substitutes products: It is define as factor or situation at which companies
offer similar kind of products and services in a particular marketplace. Marks and
Spencer is operating its business in clothing retail industry and at this sector there are
various other companies which are offering some kind of cloths, footwear, accessories,
furniture and so on. For example TESCO, ASDA, Sainsbury and many more. So in this
situation threat of substitute for Marks and Spencer is high because other company can
easily copy their design and offer it at low price.
 Threat of new entry: In retail market entry of new business is difficult because it
incurred high entry barriers as it will required huge investment. It is also challenging for
new entry companies to become effective player like Marks and Spencer in respective
marketplace (Chandon, Laurent and Valette, 2016). This is so because respective
company is one of the famous retail store which is operating its business at international
level. They also offer quality products as well as they also gain huge competitive
advancement by offering discount, offers and so on. This shows that at respective stage
threat of new entry is low for Marks and Spencer because it is not possible for new
company to establish their business like respective organisation.
 Industry rivalry: In retail sector competition is high and there are several supermarkets
or retail company which offer clothing, foods, fashionable products. In respect of Marks
and Spencer are operating its business at retail industry and there are several other
companies which are operating in same sectors such as Next Plc, ASDA, TESCO,
Sainsbury and many more (Strategies of Marks and Spencer, 2019). Moreover these
companies also offer same kinds of products and service range like Marks and Spencer so
here competitive rivalry is high. Due to which they need to introduce discounts as well as
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offer on regular basis because this will help them in attracting potential and target service
users.
Current Performance of Marks and Spencer:
For every company it is essential to analysis its current performance so that they can
develop strategies and plans in effective manner. For which a company can adopt various
methods and approaches. In respect of Marks and Spencer they adopt SWOT analysis so that
they can determine their current performance at particular marketplace:-
Strengths Weaknesses
 The respective company is operating its
business at worldwide level due to
which their customers base is also high.
 It is one of the powerful brand in retail
sector which is operating in approx 40
countries (Marks and Spencer SWOT
Analysis, Competitors & USP, 2019).
 Customers are loyal towards respective
company and they consider products of
Marks and Spencer as value for money.
 The respective company is facing
strong competitions which means they
have very limited market shares.
 The respective company is operating its
business at wide market so that they
have to take care that no one should
misuse their brand name and image.
Opportunities Threats
 Marks and Spencer can introduce their
new product range in marketplace so
that they attract more customers.
 The respective company can simplify
their operating model which help in
conducting work in effective manner.
 Marks and Spencer is operating at
international market due to which they
face huge competition. Such as ASDA,
Next Plc, TESCO and many more
(Engelland, 2014).
 Marks and Spencer is operating at
clothing and fashionable wear industry
and their trends are changing on
continuous basis.
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By SWOT analysis management of Marks and Spencer able to analysis their current
market position as well as performance which help them in developing proper decision and plans
which help in growing business in effective manner.
Market Segmentation
Market segmentation is define as a process which is adopted by a company in order to
divide market having potential customers into segments or group on the basis of diverse
characteristics. Along with this it is consider as combination of customers who are sharing
similar traits such a need, location, interest and taste. This will help an organization in
developing products and services accordingly so that customers get attracted and encouraged to
purchase them (Iacobucci, 2013). There are major five type of market segmentation which can be
adopted by a company i.e. demographic, behavioural, geographic, psycho graphic and benefit
segmentation. By identifying effective segmentation an organisation can develop products and
services according to its potential customer which help in enhancing market and sales. In respect
of Marks and Spencer, they adopt major type of market segmentation so that they design and
develop products accordingly and effectively, which are explain below:-
 Demographic: It is define as one of the most simple and widest type of segmentation
which is used by a company in order to determine their potential customers for their
offerings. This will include several factors of market segmentation i.e. age, family size,
religion, gender, income, occupation, nationality and race. Clothing and retail companies
generally adopt this market segmentation because they design their products according to
age, gender and income (Kotler and et.al., 2017). In respect of Marks and Spencer they
offer their products according to women, men and kids as well as they also design those
products according to their age. Such as respective company design swimming suit for
kids, men and women of all age group as well as same like this they design and
manufacture products according to age and gender. Moreover they also consider income
of their potential customers while develop products and according to this they offer
offerings for middle as well as high income group peoples.
 Psycho graphic: It is define as market segmentation which include factors like activities
of customers, their lifestyle, interest and opinions. It is generally consider quite similar
from behavioural segmentation but it will also consider psychological aspect of buying
behaviour of customers (Smith, 2012). Here psychological aspect include several
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elements like lifestyle of customers, their social standing, activities, opinion and interest
which will help a company in develop products accordingly and effectively. In respect of
Marks and Spencer they develop their products according to their customers lifestyle and
latest trends. They also conduct regular analysis which help them in identifying its
potential customers interest, social standard and opinions and then they design as well as
develop products accordingly (Malhotra and Malhotra, 2012). This will also help
respective company in order to offer products and services according to their potential
customers requirement and interest.
These are major two segments on which Marks and Spencer develop their products and
services so that they can offer appropriately according to customers requirement and interest.
Buying Behaviour
Customers buying behaviour is consider as decision making process of an individual
when they are buying or using a particular product and services. In a market there are various
which impact on buying behaviour of a company and which which must be consider by an
organisation while they are develop or designing products and services for their potential service
users. In respect of Marks and Spencer they analysis that there are several factors or elements
which an individual or customers consider when they are buying a particular products, from
which some major of them are explain below:-
 Lifestyle: According to this factor an individual purchase products and services
according to their lifestyle. Such as if an individual is a professional they will purchase
profession or formal cloths as well as if a person is belongs to traditional family then they
will more prefer traditional cloths (Molenaar, 2013). So it is necessary for Marks and
Spencer to consider this factor which designing their cloth, footwear and other products
because this will help them in developing products according to lifestyle of customers.
 Culture: Culture from which an individual belongs impact on their buying behaviour
because they need to dress up and act according in order to involve with them effectively.
Such as individual belongs from western culture prefer more products which are modern
and attractive whereas if a person is from professional culture they will prefer more
formal and professional things or items (Proctor, 2014). So it is necessary for Marks and
Spencer to develop their offerings like cloths, footwear, home decorative item and other
products by considering culture where they are operating.
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 Income: It is essential for a company to develop their products and services according to
average income range of their potential customers. This is so because if they not do so
and develop luxury products offer at high price to low income group peoples, in this they
will not able to attract customers as well as encourage them to purchase products and
services. So it is necessary for Marks and Spencer to design as well as develop products
according to income or economic condition of their potential and target customers so that
they can afford products easily and effectively.
 Quality: It is one of the major factors which impact on buying behaviour of a customers
because if a customer is paying high amount they consider or demand for high quality
products and services (Palmer, 2012). So it is essential for Marks and Spencer to develop
their all products of high quality so that they customers get satisfied and get encouraged
to purchase it effectively.
These are some major factors which are consider by an individual when they are
purchasing products from Marks and Spencer. Along with this respective company also consider
these factors when they are developing products and services for their potential service users.
CONCLUSION
By analysing above discussed point it can be summarised that for every organisation
marketing is necessary because through it they able to get various benefits such as they able to
know customers need and requirement. Along with this it will also help in developing products
and services according to services users as well as marketing also help in promoting business in
effective manner. Through which customers get attracted as well as get encouraged to buy
products. For developing appropriate marketing strategies an organisation need to conduct
several activities such as marketing audit, market segmentation, identify buying behaviour of
customers and so on. Through this they able to identify company's current requirement, market
position, potential customers and many more. For this an organization can adopt various
approaches and methods such as marketing mix, porters five force and others which help in
analysis market and customers requirements in effective manner.
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