Marketing Essentials: Role of Marketing Department and Interrelationship with Other Functional Units
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This document discusses the concept of marketing, the role of marketing department in H&M, and its interrelationship with other functional units. It also compares the marketing mix strategies of H&M with its competitors. Additionally, it provides a basic marketing plan for H&M.
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Table of Contents INTRODUCTION..........................................................................................................................4 MAIN BODY...................................................................................................................................4 L O 1...............................................................................................................................................4 Concept of marketing...................................................................................................................4 Overview of marketing processes................................................................................................5 Key roles and duties of marketing department in context of marketing department...................5 Interrelationship of marketing department with other functional units.......................................6 Relation with information technology department-.....................................................................8 Critical analysis of the interrelationship between different departments.....................................8 L O 2................................................................................................................................................9 Compare the ways in which company and competitors apply marketing mix............................9 Different tactics used by companies to achieve objectives........................................................12 L O 3..............................................................................................................................................12 Basic marketing plan for the company......................................................................................12 CONCLUSION.............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Marketing refers to the activity , processes, set of institutions for developing, delivering, communicating and exchanging the product or service that have value for partners, customer’s, clients, society at large (Kerin and Hartley, 2015). The essentials of marketing are distribution planning, promotion, inventory management etc. The Report is based on H & M company. It belongs to retail industry. It was founded in year 1947 by Erling Persson. Headquarter of the firm is located in Sweden. It offers wide range of products such as accessories, clothing items etc. Currently, it is offering products at approximately 4,9,58 locations in the world. The firm is also having significant online presence and currently, it is serving nearly 33 countries. The Report will outline the role of marketing and its interrelationship with other functional units. Further, it will describe ways in which companies uses marketing mix and basic marketing plan for the company. MAIN BODY L O 1 Concept of marketing. Itreferstotheprocess,activityorsetofinstitutionsfordelivering,developing, communicating and exchanging the goods or services which is valuable for the buyers. It can also be defined as activities performed by firm that is related with buying and selling goods or services (Kerin and Hartley, 2015). Current and future trends. There are various current and future trends in marketing function such as - Relationship marketing : It focuses on customer satisfaction and retention rather than the number of sales made by organization. It is different from other types of marketing because it is extended beyond messages developed for promotion of goods or services. Industrial marketing : Under this type of marketing business offer its products to other organizations to resell it later on or to use them for developing complex items or to improve their quality for reselling them. Revolution in technology is the major reason behind these marketing trends (Zhang and et.al, 2016).
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Overview of marketing processes. The process of marketing consists of different types of elements such as planning of marketing mix, strategic marketing analysis, implementation of marketing and controlling the marketing process. There are various components of marketing mix such as product, price, place, promotion, process, physical evidence and people etc. Key roles and duties of marketing department in context of marketing department. Marketing department of H&M performs various types of roles and responsibilities. These are described below - Development of marketing strategies - One of the most important role of senior member of marketing department is to develop plan of action for promoting goods or services. They helps in developing marketing mix which is an important tool to determine what products or service H&M should offer to target customer’s. For example –strategy of the firm may be developed for increasing market share of the business. Designing and developing products - It refers to the development of products with different characteristics that offers new benefits to the clients. Marketing department of H&M is responsible for modifying existing goods or to develop new products to satisfy the needs of customer’s. Firm whose goods are designed attractivelyis ableto gain competitiveadvantage over competitors(Karjaluoto, Ulkuniemi and Mustonen, 2015). Branding - It can be defined as the practice of marketing like name, design or symbol that differentiates the product of company from other goods. There are various types of brands like service brand, individual brand, group brand etc. Marketing manager of H&M plays an important role in branding of items that helps to secure better market position as compared with other firms. Determining best distribution channel - The term distribution means the activities through which company offers its products to the customer’s with the help of different channels. Marketing department of H&M plays a major role in determining the locations at which products are to be offered to ultimate buyers. It also assist firm to determine the channels through which product will reach to the customer’s\.
Packaging and labelling - It is used by businesses to influence the buyers for purchasing the product. Packaging is used for transmitting information and providing convenience to buyers. Marketing department helps in developing Attractive packaging of products helps to influence customer’s to purchase the items. Interrelationship of marketing department with other functional units. TheroleanddutiesofmarketingdepartmentofH&Marerelatedwithwider organizational context in different ways. These are as follows - Relation with production department - The function of production department is to produce goods or services on the basis of need and demands of clients. Marketing department of H&M provides relevant information regarding demands of customer’s that helps production department to develop products to satisfy their demands. Moreover, marketing manager also performs survey that assist in collecting information regarding the things are not liked by customer’s. This helps production manager to modify and innovate products and improving the features, benefits and quality of items. Further, Figure1:Relationship between marketing and other departments. 2018 Source : (Relationship between marketing and other departments, 2018)
department of marketing function also help production department in determining the locations at which products will be offered to target segment of buyers (Appiah-Adu and Amoako, 2016). Relation with human resource department - The department of human resource performs variety of functions such as looking at different aspects of employment, managing human resource, administration of benefits for employees. It also performs functions like conducting training and development programmes etc. The marketing manager of H&M company is required to perform its functions in collaboration with human resource department. Interrelationship between department of human resource and marketing department is essential to ensure that employees that are workinginmarketing department have necessary skills and abilities. The collaboration is important to communicate the brand of the firm to employees. Relation with finance department - Finance department is a major part of the business that helps to manage funds. It is responsible to perform various functions like planning, auditing, organizing, controlling the funds of the company. It also helps to prepare the financial statements of firm. Marketing manager works in collaboration with finance department to ensure that adequate funds is availablefor performingdifferentactivitiesof marketingsuch asadvertising,promotion, distribution etc. The manager of marketing department concentrates on improving the volume of sales and market share of the firm. Whereas, finance manager focuses on covering the cost of production, paying back investment, increasing cash inflow etc (Okonkwo, 2016). Relation with information technology department- For marketing department, information technology department provides the facilities of databasedevelopment,marketingautomation,dataanalysis,websitedevelopmentetc. Technology is very helpful in developing marketing plans and programmes for promoting the products and services(Karjaluoto, Ulkuniemi and Mustonen, 2015). Relation with research and development department- Research and development department cannot function with the information regarding taste and preference of customers, environmental opportunities, challenges and threats. This information is provided by marketing department to research and development department. Marketing division also provides the outlet for commercialization of the product.
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Critical analysis of the interrelationship between different departments. There are different elements of function of marketing like place, promotion, product, price etc. All these elements plays a major role in promoting the marketing of the brand. Another three elements that are process, physical evidence and people are also important for achieving the goals of company (Karray, 2015). Therearevariousadvantagesofrelationshipofmarketingfunctionwithother departments of H&M such as it helps to improve the quality of products and services that helps to satisfy demands of buyers. Further, there are some limitations like there may be chances of lack of cooperation and coordination between different departments. L O 2 Compare the ways in which company and competitors apply marketing mix. Marketing mix - BasisH &MZARA ProductIt offers products like clothing for children, men, women etc. in different countries across the globe. The product concept of thecompanyisEDLP (everyday low price product). Itisoneofthetopapparel brands. The range of products offeredbyH&Minvolves basicjumpers,pants,fashion shirts, jackets, shoes, t – shirts etc(PanigrahiandSharma, 2019). Thecompanyisalsocalled Coca cola of the fashion. It offers goods for men, children andwomen.Suchasshoes, accessories, T-shirts, trousers, jeans etc. It is one of the stop solutionforeverytypeof buyer. It has launched nearly 10,000newdesignsper annum.Itbelievesin sustainable development. PriceThe products of the company are available cheap rate and are affordable for every category ofcustomer.H&Musesthe Thecompanyfollows premium pricing strategy for offering the items to ultimate buyers.Underthisstrategy,
costofproductionfor determining final selling price oftheproduct.Underthis, either a percentage of total cost ofmanufacturingorfixed amount is added as the profit to thetotalcostofitemto calculate selling price. companykeepthepriceof products or services higher as comparedwithsimilar productsofferedbyother firms.Thisstrategyisalso calledskimpricing(Haug, 2018). PlaceYear 2016 seems to be eventful year for the company as it has added427newstoresto existinglineofstores.Itis followinganomni-channel strategy as it is having physical storesaswellasonline channels.Ithasunique portfolioof4300storesfor offeringproductsto customer’s. Itisaverticallyintegrated retailing firm as it develops, manufacturesanddistributes the goods itself. It is present in nearly30countriessuchas India, UK etc. More than 90% of the stores are owned by the company.Therefore, clients getsameenvironmentwhen they enter in the stores. PromotionCompanyhasintegrated physicalanddigitalfor improved sales and marketing. Thishasbeendonefor providing better experience to thecustomer’s.Digitization strategy involves online buying and returns in stores. It also uses digital services for better The marketing policy of Zara isZeroinvestmentin marketing.Thecompany majorlyfocuseson wordof mouth advertising more than any other company does. The reachofcompanytosocial mediaplatformsisquite exceptional.Therearemore
marketing. It also uses social media platforms for promoting theproducts.Suchas Instagram, Facebook etc. than 2.5 million followers on Facebookandapproximately 1.5millionfollowerson Instagram(Mayrhoferand Roederer, 2016). Physical evidenceCompanyoffersitsproducts withthehelpofattractive packaging.Moreover,the interior design and layout of the retail layouts at different locations is very attractive that helpstoinfluencebuyersto buytheproducts.Attractive packaging of the items helps to protect the items. Physical evidence refers to the things that are easily visible to buyersoftheorganization. Company uses attractive print advertising and catalogues etc. thatworksasaphysical evidence. Layout and furniture of the stores are very attractive thathelpstoinfluence customer’stopurchasethe goods.Further,company provides all the details on the website. PeopleHumanresourceofthe organization is one of the main resource that support business to offer its products or services tothecustomer’s.Human resource department of H&M recruitsskilledandtalented workforce for developing and selling the clothing and other items at various locations. The sales force of the firm is responsible for the success of marketingprocessesand activities of the company. The manager of Zara plays a major roleinformulatingthe effectivestrategiesfor marketingfunctionwiththe helpofdifferenttechniques and tools. ProcessThetermprocesscanbe definedastheprocedure Therearedifferenttypesof directandindirectactivities
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adopted by the firm to keep its buyers happy with the help of convenient purchasing of items throughofflineaswellas online channels. Company has adopted the policy of directly purchasingtheinputsfrom suppliersandofferingthe productsdirectlytoretail customer’s. thatareperformedbythe company that assist the firm to offerbettershopping experiencetothebuyers.It also developed the process of selling goods through online channelsfordeliveringthe items to ultimate buyers. On the basis of products ordered areshippedtocustomer’s from the company. Different tactics used by companies to achieve objectives. The term tactics can be defined as the actions that are used by the organization to achieve a particular objective. H&M company - One of the major tactic adopted by the business is that it offers the products at affordable price and at cheap rate so that, every category of customer’s can buy the products of the company. Customer’s can conveniently interact, browse and order the products and services at any time and anywhere. Zara - The major tactic adopted by the company is that it continuously develops new products and services for the customer’s. Business delight their buyers with of the minute clothing. L O 3 Basic marketing plan for the company. Marketing plan : It can be defined as the document that defines the strategy related with advertising the products or services of the business. It helps organization to reach target market. It describes the activities of business that are involved in achieving particular marketing objectives within a particular period. Vision -
The vision statement of company is to bring a change towards a renewable fashion industry while being an equal company. Mission - The mission statement of the firm is to bring a positive change and to improve the standard of living by investing in innovative ideas, people and communities. Objectives - To reduce the cost of operations by 10% till year 2020. To increase the sales of product by 15% till year 2021. SWOT analysis –It refers to the tool that helps business to identify and evaluate strengths and weaknesses of the business and threats and opportunities that are present in external environment (Samson and Sheela, 2016). Strengths - One of the major strength is that it offers a wide range of items under different categories such as shoes, accessories, apparels etc. It has unique identity for all the brands such as COS, Monki, H&M etc (Mierzejewska, 2017). Weaknesses - One of the major limitation of the company is that it is dependent upon third party suppliers for its goods. The affordable pricing of the products affects the quality of clothes and other items of the company. Opportunities - It has opportunity to focus on expansion of the business for expanding the base of clients across the globe Threats - Major threat from evolving fashion trends that is quick changes as trends keep on changing quickly. Segmentation - It refers to dividing the whole market into different segments on the basis of similar characteristics (Camilleri, 2018). H&M will use demographic and psycho-graphic segmentation to reach target segment of customer’s.
Targeting - The next step after segmentation is targeting. It refers to choosing a particular segment to whom company will offer its products or services. Company will target people that belongs to age group between 20-45 years age. Target market for clothing and accessories will be women. Positioning - It refers to the marketing strategy in which company aims to develop a brand that occupies distinct position as compared to competitive brands in the minds of buyers. It will create brand image in the minds of buyers with the help of different strategies related with price, product, promotion etc. Marketing Mix : It is defined as the actions, tactics that are adopted by business for promoting the product or brand in the market. It involves 7P's of marketing. These are as follows - Product - The company will launch a new chain of stores which is known as Collection of Style. This new chain will have same brand of the company. It is one of the upgraded version of the current stores through which firm is offering its products to target segment of customer’s. Price - Firm will offer the items through new chain at low price as compared with competitors. This will allow buyers to buy the items according to their budget. The company has adopted low cost strategy that helps to maintain cost of items as low as possible. Place - Firm has launched the new chain of stores that is Collection of Stores initially in UK. After the success of new chain in UK it will then launch in other countries also. Products will be directly offered to customer’s there will be no involvement of distributors. Promotion - The marketing department of the organization will use different types of tools and techniques for effective marketing of products that will be offered through Collection of Style. Firm will promote the items through social media platforms such as Facebook, Instagram etc. Budget - ExpensesAmount(£) Social media500
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Salary and wages1000 Print advertising500 Total2000 Monitoring and controlling - The marketing manager of H&M company will use different tools and techniques for effectivelymonitoringandcontrollingtheperformanceofmarketingplan.Systemsof monitoring will be built so that, efforts of the company will not be wasted. Tracking code will be put in the website of company to monitor sales. CONCLUSION The above Report has outlined that marketing is an important function that helps business to promote the sales of products and services in the market. Relationship marketing and industrial marketing are the major trends that are prevailing in the industry. Further, it has been concluded that marketing department of H&M helps in developing productsor services, developing strategies for effective marketing, branding of the goods, selecting best channel of distributing goods to clients etc. The way of marketing products and services of H&M company is different from Zara on the basis of product, price, place, promotion, physical evidence, people and process etc. Further, it has been concluded that there are various tools and techniques that assist the marketing manager of the company to monitor and control the marketing plan. Further, it has been analysed that company has segmented the market on the basis of psycho-graphic and demographic factors. It has targeted people belongingto age group between 20-45 years age. Moreover, the Report has explained that one of the major weakness of firm is that it offers products at affordable prices that affects the quality of goods. REFERENCES Books and Journals - Appiah-Adu, K. and Amoako, G.K., 2016. The execution of marketing strategies in a developing economy: A case study of selected market leaders.African Journal of Economic and Management Studies.7(1). pp.9-29.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. InTravel Marketing, tourism economics and the airline product(pp. 69-83). Springer, Cham. Haug, A., 2018. The design management task of aligning product design with production and marketing processes.The International Journal of Design Management and Professional Practice.12(2). pp.15-28. Karjaluoto, H., Ulkuniemi, P. and Mustonen, N., 2015. The role of digital channels in industrial marketing communications.Journal of Business & Industrial Marketing. Karray, S., 2015. Cooperative promotions in the distribution channel.Omega.51.pp.49-58. Kerin, R. and Hartley, S., 2015.Marketing: the core. McGraw-Hill. Kerin, R. and Hartley, S., 2015.Marketing: the core. McGraw-Hill. Kose, U. and Sert, S., 2017. Improving content marketing processes with the approaches by artificial intelligence.arXiv preprint arXiv:1704.02114. Mayrhofer, U. and Roederer, C., 2016.Zara: The international success of fast-moving fashion [Zara: Le succès international de la fast-moving fashion](No. hal-01316137). Mierzejewska, J., 2017.Analysis and evaluation of marketing strategies for clothing companies on the example of Zara and H&M(Doctoral dissertation, Katedra Procesów Zarządzania). Okonkwo, U., 2016.Luxury fashion branding: trends, tactics, techniques. Springer. Panigrahi, A. and Sharma, D., 2019. Compliance with packaging and labelling rules for tobacco products marketed in slum areas of Bhubaneswar, India.Tobacco control.28(e1). pp.e13-e15. Samson, M.S. and Sheela, M.V.P., 2016. GLOBAL MARKETS AND THE EVOLVING MARKETING 4P’S.RESPONSIBLE MARKETING FOR SUSTAINABLE BUSINESS.100. Zhang, J.Z., and et.al, 2016. Dynamic relationship marketing.Journal of Marketing.80(5). pp.53-75. Online - SWOTanalysis.2017.OnlineAvailableThrough: <https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis> Relationship between marketing and other departments. 2018. Online Available Through : <https://santoriniinfo.info/relationship-between-and/relationship-between-marketing- department-and-other-departments.php>