This report by Desklib's Marketing Department provides an analysis of the marketing strategy of Marks and Spencer, including a marketing audit, STP analysis, and marketing mix. It also includes market segmentation criteria and the behaviour of buyers.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Marketing Audit.....................................................................................................................1 Marketing Strategy.................................................................................................................4 Marketing Mix........................................................................................................................5 STP Analysis..........................................................................................................................6 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Marketing is basically the process of designing and maintaining an environment in which individuals working together in groups efficiently accomplish selected aims and objectives. In this report, the organisation chosen is Marks and Spencer, which is a British multinational company headquartered in London, United kingdom. In this report, it involves the understanding and knowledge of thevarious areas of marketing and the relationship among them and its applicationintheinternationalorganisations.Moreover,itcomprisesofthemarket understanding and their operations for the services and goods across the global environment. In addition to that it comprises of the deeper understanding about the relationship amongthe customers and the organisations with the application of the development of the important marketing tactics and tools within the changing environment. The present report includes two sets of market segmentation criteria which involve the 30 plus individuals and Kids. In addition to that, it comprises of the suitable research and understanding of the behaviour of buyer. MAIN BODY Marketing Audit In context to organisation, the marketing audit basically depicts as the interpretation of the systematic analysis of the marketing of the business and involves the various activities which are carried in the marketing department. In context to marketing audit, it comprises of the various factors such as market, competitors and distributors etc(Gupta, R. and Bedia, D.D., 2021). SWOT Analysis Strengths In context to Marks and Spencer, the organisation has numerous stores and are available across the world. The organisationis a leading retailerorganisation and enjoy a large base of customers and has created a renowned brand image which is easy to recognise. 1
The organisation offers a wide range of trendy, knownand designer products and also sells it online. Weakness The organisation is facing a tough competition from various other international brands. The organisation has a very limited availability of the marketing stock and the company has availing brands at very higher prices which results in limited market share(Jobber, D. and Ellis-Chadwick, F., 2019). Opportunities In context to organisation, its online presence is one of the bolster in the market position. The company has expanded its operations with the help of investing in more countries. Threats: Duetotheinternationalpresence,thecompanygetsexposedtovariouspolicies implementedbythegovernmentofdifferentnationsandresultedinaffectedby government policies change. The organisation is highly threatened due to the international popular retail brands availability as the other organisations are becoming a hurdle for the expansion of the business operations and increasing tough competition in the marketplace. PESTEL analysis Political Factors In context to organisation, the country’s government free trade strategy has been affected due to the company raising their profit margins and reducing the sourcing costs. The organisation is majorly influenced due to the government alternation and also being affected due to the taxation policies(Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021). 2
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Economic Factors In context to organisation, it uses good quality raw materials and also offers service and products at low or discounted rates. In context to economic factors, it comprises of the factors such as foreign exchange rates, interest rates, inflation rates and economic growth. The organisation has aligned their marketing strategy with the products. Social Factors In context to organisation, the company wants to expand its brand for the purpose to keep up with the changing trends in the market place. In context to company, the purchases of the consumers are highly affected due to personal, cultural, social and personal changes. Technological Factors In context to organisation, the company has announced Technology Transformation Programme which will allow the company to become the first digital business and offering and enhancing large customer experience. In context to organisation, the company has also focused on the creation of the new technology operating model which helps the organisation in exploiting new technology that involves the adoption of the industry agile methods(Shah, S.A., Azhar, S.M. and Bhutto, N.A., 2019). Legal Factors In contextto legislations, they are ever changing when it comes tovarious countries and in reference to organisation, the company is conducting various sessions for the objective to keep themselves updated with the present legislations and laws. Environmental Factors In context to environmental factors, there are various issues in relation to the current climate conditions which are being promoted on constant manner on the newspaper, television and magazines. In context to organisation, it has established their own Green Policy. 3
Marketing Strategy In context to Marketing Strategy, it is a organisation game plan for the objective to reach the end users and also making them customers of their services or products. In reference to marketing strategy, it comprises of the data on target customer demographics, value proposition, high level elements and key brand messaging. In context to organisation, the marketing strategy helps in analysing the brand with the marketing mix tool which comprises of the 4Ps that includes Product, Price, Place and Promotion(Ibrahim, E.B. and Harrison, T., 2020).It involves the several strategies in relation to the marketing which involves pricing approach, product innovation, planning promotion etc. In addition to that the marketing strategy helps the organisation to position itself competitively in the market and also achieving its objectives and goals. Product Strategy:In context to Marks and Spencer, the organisation is considered to be the top retail chain brand and the product portfolio covers all the age group for the kids, women and men. In addition to that, the organisation offers products which comprises of clothing, footwear, bags and accessories. Price Strategy:In context to organisation, the company has its own house brand and are priced between the medium to higher category due to premium quality. The company follows a competitive pricing strategy. Place and Distribution Strategy In context to organisation, the company is a international brand which has its stores operating among 50 countries and has its presence in almost other countries such as Finland, Turkey, France, Hungary, Spain etc. In addition to that, the company has got its own website from where the consumers can buy products(Ayertey, S. and Howell, K., 2019). 4
Advertising and Promotion Strategy:In context to organisation, the company chooses its marketing strategy in a careful manner also aligns it with the advertisement campaign. The organisation also focuses on sharinga common message through communication medium. In addition to that, the company uses its website for the purpose to promote its clothing and other products. Marketing Mix In context to organisation, the company is a public limited organisation of the British Origin. Products: In relation to company, the organisation believes in offering fair trade products and eco friendly goods and there diversified product portfolio also comprises of the apparels, accessories, lingerie, footwear, nightwear, formal wear and much more. Place: In context to the organisation, the organisation has spread its presence in the international market that comprises of the various places such as France, Egypt, Morocco, Spain, Jordan, Kabul, Austria, Germany etc. The organisation has established overseas offices in places such as Turkey, Sri Lanka,Italy, India, Malaysia and Thailand. Moreover, the company sells its products through various outlets for the purpose to gain the customers and increasing visibility of the consumers. The organisation focuses on tastefully decorating for the purpose to offer smooth ambience(Ofori, D., 2021). Price: In context to organisation, the company has its own brand for apparels and caters to upper middle and upper class section of the society. The company has also kept the prices between medium to high range and offers premium quality. In addition to that, the organisation has adopted a dynamic pricing policy and also provides discounts and incentives to its consumers during the seasonal time, off seasons and festive season. With the right pricing strategies, the organisation will be able to clear its old stock and the incentives will help in large sales figures (Bernon, M., 2018). 5
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Promotion: In reference to the organisation, the company believes in full on marketing policy and has aligned with various possible tools. In addition to that, the company has adopted below the line and above the line strategies for the purpose to make its presence felt. The organisation has chosen its promotional campaigns in a careful manner and has placed ads in hoardings, magazines, television, radio etc. The organisation has also focused on promoting their products with the help of celebrity endorsements and has a in store strategy which supports in promotion of the products through its outlets. Moreover, the company has a loyalty program that focuses on adding points in the account of customer and is totally based on the shopping amount done by the consumers. In addition to that, the organisation believes in charitable works and always participates in various several events. Incontext to organisation, the company is focusing on two sets of the market segmentation which is 30 years plus age group and children which will helps in successfully targeted by the business. Market Segmentation: In context to organisation, the market segment is a sub set of the market which is made up of the organizations and people sharing one or more characteristics. In reference to organisation, the market segmentation allows the organisation to treat similar consumers in same way while differentiating with various consumer groups. Incontext to organisation, the company uses demographic segmentation for the purpose to select target markets for its products. The company targets its customers into various groups through occupation, age, income and social class. The company targets the 30 plus age group with executive occupation and high income. STP Analysis In context to organisation, the STP Analysis plays a really important role in the behaviour pattern oftheconsumers.Theframeworkassiststhecompanytohavedeepunderstandingand developing the product and relating with the customers. With the help of Positioning and Targeting , the organisation will be able to have a deeper understanding about the current business situation. Each factor of the STP helps in describing the profit measures which are taken into consideration and also helps the organisation in finding the consumers and new market. 6
Segmentation: In reference to the organisation, the company divides the market in few segments. The process of segmentation allows the company to maintain sustainability in the organisation. The company divides the audience on the basis of parameters as per the various demographics such as age, education, gender and on the basis of the geographically by state, country and region. With the help of behaviour pattern, it helps in determining the retention on their products. Inaddition to that, it helps in understanding the consumes according to the company for the purposetocarryoutimportantsteps.Moreover,thecompanyneedtoimprovethrough concentrating on the satisfaction factor of consumers(Lavorata, L. and Sparks, L. eds., 2018). Target: In context to organisation, the company is running a ethical business structureand is maintaining some market oriented target in their organisation for the purpose to maintain the sustainability in the company. As per the potentiality and size, the company needs to set a annual target for the purpose to gain profits. When it comes to targeting, Money plays a very important role and it is important to set budget for the purpose to carry out quick decisions. It is important for the organisation to set up the target which is easily accessible to them. Positioning:The marketing mix supports the companyto position their products and business structure in a proper way. The four Ps involves Product, price, promotion and place. In addition to that, the organisation need to focus on the four elements for the purpose to seek improvement. In addition to that, the need to plan their products in accordance to the needs of the customers and as the company deals with the food and clothing business, the company need to focus on the choices of the customer and according to the organisation needs as per the pricing lists. With reference to the Mark and Spencer, the market segmentation has been done on the basis of the demographics which include people by their age which contains the people who are above the age of 30,with their high income and occupation. The company also offers products for the children to increase its market share. Therefore, an organisations segmented its market on the basis of two sets which include the children and the 30 plus age group people.The behaviour of the customers affect the business of an organisation because the needs of the people get change according to the changing environment.Thus, an organisation have to study the 7
behaviour of the customers in order to determine the market for their products so that it can provideproductsaccordingtotheirrequirements.Thecustomersbehaviourassistthe organisation to decide what type of products should be offered to increase its sale. The products are offered by an organisation after knowing the demand in the market because the customers wantsnewanduniqueproductswhichshouldbelessexpensiveandhavegood quality(Sathiyamoorthi and et.al, 2021). Therefore, a business concern needs toobserve its products line so that it can provide its customers new and unique products which help in increasing its market share dan enhance the profitability. The customers behaviour affect the strategies of the products and pricing. Mark and Spencer provides its customers premium quality products that helps in satisfying the wants of the customers and get loyalty of them. The target market of the Mark and Spencer is 30 plus age group people which include man and women both and also tragedy the children so that it can enhance its business. The target market assists the organisation in connecting directly with the specific audience. It enables a business concern to attract the potential customers of a specific group and crest brand awareness them which assist the customers in identifying the brand of an entity. Mark and Spencer targetted the market of children and average age group where the size of the segment is considered as large in older to reach to the growth potential. It increases the profitability of the business which can create value for the customers(Qin and et.al, 2021). Thus, the company can make the loyal customers through providing them best services by satisfying their needs. However, the target market can be affected by the behaviour of the customers because the products are determine by the customers whether they are obsolete. Thus, it is essential for a business concern to identify the group of people to whom the company want to target and understand their need in order to provide them products accordingly. Mark and Spencer must understand the lifestyle of the customers and their ages group as well so that the products are provided with specific features to the group. This assist the company in making the brand awarenessfor the products of a company. This assists them in improving the products and services as well by focusing on the specific segment. In context to Mark and Spencer, positioning helps the company in attracting the customers through developing an effective strategy so that the brand can be perceived by the customers(Guo,Wu and Gui, 2021). The company have its own website where the customers can easily get the products and also an organisation uses the social media platform such as 8
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Facebook, Instagram etc. to engage with the customers. This help the company in creating the positive image of the brand among the customers and increase themarket share. The sales and profits of an organisation can be increased throughoffering products to the segmented target audience. The effective campaigns are also organised by the company in order to attract the group of the customers and enable to make the effective decisions. The behaviour of customers can affect the marketing strategies of an organization so the company research on the internet about the shifting of the demand of the customers so that it can bring the strong tool for marketingthathelpingettingthegoodpositioninthemarketandovercomethe competition(Muneeswari and et.al, 2021). The company also make the sale forecasting to know how much sale can be made in future for the product so that it can make products according to the demand. Therefore, the company get the good positioning in the market and impact the behaviour of the customer by providing them good quality products on the premium process to access the market. This will enable the company to gain the competitive advantage. Thus, STP analysis help the business in growing because it allow the company to increase its brand image by defining the target market of the customers. It enables a business to reach out to the specific segment market and also identify the gaps in the market(van der Ploeg and et.al, 2021). It helpsinknowingthe behaviourof theircustomersand assistin avoidingthe unnecessary expenditure that are made during the promotion of the brand. It enable itself to make development according to the changing needs of the customers. CONCLUSION From the above discussion it has been concluded that marketing plays an important role to create the awareness for the brand which help in growing the sales of the business. It enhance the reputation and increase the profitability of the business and develop the market segment. It assist in optimal utilisation of the resources and provide the various employment opportunities. Thus the report has discussed about the strength and opportunities of an organisation and the environmental factors. The marketing mix and strategies also discussed in order to know the segment, target market and position. 9
REFERENCES Books and Journals Gupta,R.andBedia,D.D.,2021.FOODRETAILMARKETINGORGANISEDOR UNORGANISED(Vol. 1). Academic Guru Publishing House. Jobber, D. and Ellis-Chadwick, F., 2019.EBOOK: Principles and Practice of Marketing, 9e. McGraw Hill. Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021.Marketing strategy. Cengage Learning. Shah, S.A., Azhar,S.M.andBhutto,N.A.,2019. Halalmarketing:a marketingstrategy perspective.Journal of Islamic Marketing. Ibrahim, E.B. and Harrison, T., 2020. The impact of internal, external, and competitor factors on marketing strategy performance.Journal of Strategic Marketing,28(7), pp.639-658. Ayertey, S. and Howell, K., 2019. Service failure and recovery strategy in computer-mediated marketingenvironments(CMMEs).InLeveragingcomputer-mediatedmarketing environments(pp. 173-192). IGI Global. Ofori, D., 2021. Opportunities and Challenges of Green Marketing. InGreen Marketing in Emerging Markets(pp. 251-276). Palgrave Macmillan, Cham. Bernon, M., 2018. Sustainable supply chains: Marks & Spencer’s Plan A.The Business & Management Collection. Lavorata, L. and Sparks, L. eds., 2018.Food retailing and sustainable development: European perspectives. Emerald Group Publishing. Sathiyamoorthi and et.al, 2021. Experimental study of spray analysis for Palmarosa biodiesel‐ diesel blends in a constant volume chamber.Environmental Progress & Sustainable Energy,40(6), p.e13696. Qin and et.al, 2021. Evaluating environmental impact of STP effluents on receiving water in Beijing by the joint use of chemical analysis and biomonitoring.Science of The Total Environment,752, p.141942. Guo, Y., Wu, Y. and Gui, W., 2021. Stability of discrete-time systems under restricted switching vialogicdynamicalgeneratorandSTP-basedmergenceofhybridstates.IEEE Transactions on Automatic Control. Muneeswari and et.al,2021. Genomic characterization of Enterobacter xiangfangensis STP-3: Applicationtorealtimepetroleumoilsludgebioremediation.Microbiological Research,253, p.126882. van der Ploeg and et.al, 2021. Characterization of high-grade serous ovarian carcinoma by measuring functional signal transduction pathway activity. 10
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