Marketing Research Essentials and Principles

This assignment is about exploring marketing research essentials and principles. It requires students to find suitable references for an essay on marketing research, including books, articles, and online resources. The task also involves identifying the main concepts and ideas related to marketing research, such as marketing theory, customer behavior, market analysis, and social media marketing. Students need to demonstrate their understanding of these concepts through a well-structured summary.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management of information..................................................................................................1
P2 Different Organisational functional areas..............................................................................4
P3 How marketing mix are applied on different organisation as compared to ZARA...............9
P4 Marketing Plan for Zara:- ...................................................................................................11
CONCLUSION AND RECOMMENDATION:-..........................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In this competitive world, marketing is the thing which is a back bone of any firm.
Marketing help company to sell their product and service to large market and information about
goods and services are provided to million of people through marketing and although it is a
complex and contradict process as well. The first Zara store was opened in 1975 by Amancio
Ortega at downtown A Coruna, Galica, Spain (Babin and Zikmund, 2015). Firstly, Ortega
opened the store naming 'Zorba' inspiring by the classic film ''Zorba the Greek'', but later he
come to know about the bar which was two blocks away having the same name, they rearranged
the characters as ''ZARA''. Within very short span of time this small store has developed itself
into a large firm. The company started its international expansion in 1988 with the help of Porto,
Portugal. Later in 1989 and 1990 they entered United states and France respectively. Later in
September 2010, Online boutique was launched by ZARA. In 2015, in the list of the best global
brands ZARA was ranked 30 among the best leading brands all over the world(Baker and Saren,
2016).
Zara is having more than 2100 stores world-wide and fifty-third position at worlds most
valuable brands. The organisation is having 152,854 numbers of employees in 2015 and very
rapidly growing in clothing and fashion industry. The report will discuss about various function
of marketing and in different context as well. Apart from this it will also discuss about marketing
mix and its plan which will help in making higher profit and attainment of goal and objective in
effective way.
TASK 1
P1 Marketing function
Information management is the providing of relevant information to decision makers of
the organisation or to others. The information includes both physical and electronic informations.
Management of information Support these guiding principles which includes-Every possible
information should must be shared which helps in exploitation of corporate knowledge. The
keeping and deposit of information is very crucial (Brady, 2014). The management of
information is done with the help of many systems which is generally a software designed for to
assist manage information. Marketing basically works on its seven functions and all these
function information is managed by an organisation which help them to run company
accordingly.
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 Marketing information management (MIS):- This is the management of the processes
and methods which are used to collect or gather information about the organisation and
then analysing it according to the companies needs. The finding of reports which is
relating to ZARA marketing products and the services provided by them toward their
customers(Campbell and Martin, 2015). The management of information helps ZARA to
determine their customers demand and attitude toward the company, preference of
products they are willing to be provided by the firm. MIM is very useful to test products
features, determination of growth potential and size of market. This information helps the
organisation to its sale and profit.
 Distribution (Channel Management):-It is set combined group of activities and business
to business firm operations to introduce their product to market with the help of channel
partners as much efficiently and effectively they can(Forshier, 2012). ZARA is
promoting their products through both offline and online channels. The distribution
includes:-
 Sale forecasting:- It is estimation of the future sale which is company going to make,
and provides insight to the company for its cash flow, resources and workforce
management.
 Channel marketing management:- These are the techniques used by the organisation
to promote its products to wider range of customer base. Using these channels ZARA
can promote its clothing and other products, marketing channels are those which are
necessary for the transformation of ownership of goods to the point of consumption
from the point of production(Griffin and Ebert, 2010).
 The management of the Inventory is the oversight of stock items.
 Incentive program management are partially used for the motivation of employees
and in the sale to attract the customers.
 These also help the organisation for its Financial and risk management, to manage
data integrity and recognition of revenues. Product or service management:- Product management is the techniques which help the
organisation to check and involves function such as obtaining raw materials, developing
them and then maintenance or improvement of those products and services. It is the
process of changing and creating new information about offering company's catalogue
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Zara is having special quality check team which ensure that every Zara product is
maintaining the name of the brand and providing customer satisfaction(Hair, 2015). Zara
products and service management team maintains their online catalogue as according to
trending lists. Pricing:-Pricing is assignment of the value customers see in the product and the value
customers are willing to pay for that product. The Brand price and the rate of products
offering by Zara is much higher than other local brands because of their product quality
and specific fashion catalogue which encourage their customers to pay the offered rates
by the company. The wrong pricing of the products can also negatively influence the sale
and cash flow of the company(Jackson, 2011). Later the company manages its
efficiencies and make changes accordingly in its pricing. Zara had reduced its cost for
manufacturing which helps the organisation to reduce the prices of its products, offering
of such low price for very good quality of product Zara has become the first choice of
many of the customers and help the organisation to make such a good profit. Promotion:-Promotion is the publicity of the products and brands offering by the
company, with the help of advertisement and other promotional activities. The promotion
are done by using Catchy Tag-lines which are attractive and draining the focus of
customers towards that products. Zara is also promoting their products using social
media, use of social media for the promotion is very effective these days from there
companies can directly attract customers to their catalogue and increases their sale.
Finding of promotional partner and promoting through them could be very helpful for
Zara. By appointing Brand Ambassador, selecting those who are trending and most
loving by the people for the promotion of products will definitely result in profit to Zara.
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 Selling:- Selling is the term of marketing products between the seller and buyer where
money is exchanged for that products(Kongstvedt, 2012). Zara is mainly selling products
such he clothes, shoes and other fashion accessories for women, men and kids as well.
Mainly the products of Zara are selling on their thousands of stores in over more than 15
countries. The organisation is also selling their products online different online stores and
on social media. The selling of products by its manufactures or by the retailer to the
customers is selling which includes exchange of money for that particular product as
according to its value in the market.
 Financing:- For business activities, the act of funds providing is Financing. It provides
companies to purchase products from the market which are out of their present reach for
their business. It helps in making profit rate higher even if currently company is not able
to make such profit. Basically there are two types of financing:- Debt and Equity, which
is in debt the amount is paid back to the financier with some extra amount as an interest.
Whereas, in Equity the amount is given to the company on behalf of ownership to the
stakeholders(Jones and Rowley, 2011). Zara is also using Equity type of financing and
had sold its shares at very good rate which is making very good profit to their stockholder
as well as their company too.
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Illustration 1: Marketing and selling
(Source:- Marketing v/s Selling, 2017)

Market research:
This is one of the major function which is related with the collecting various information related
to the product and services. There are different data related to competitors, market trends,
customer changing needs etc. must be required to perform in the future. Zara one of the leading
company in the fashionable clothing needs such information in order to attain competitive
position in the market.
Supply chain: This is another significant function which related with the acquisition of goods
and services from suppliers, start production and delivering to the end customer. Zara having
more than 2100 stores across the world and need timely delivery of goods at the right time. The
cited firm having an integrated supply chain system and it helps to update their stock level and
provide competitive edge in the market.
Marketing planning: Each and every company is having its own objectives which can be
related with the short term or long term. For instance, Zara current market share is approx. 5
percent now company wants to increase their markets share by 8 percent in the next 4 years. For
such objectives they required to design an effective marketing plan and meet their set target in a
given period of time.
P2 Different Organisational functional areas.
Every organisation is built up different groups of function, which together coordinates
with each other and works and provides support for the welfare of the organisation. Functional
department support specific purpose for the achievement of objective with in organisation. The
information need are the group or an individual who desires to obtain information for the
satisfaction of needs (Lipsman and et.al., 2012). There are some most common function areas of
an organisation which are discussed below:-
 Sales:- This is the terms which is used for, the dealing with customers and generating of
order through them. That is sales are type of promotion which is done to force of
encourage customers to buy the product selling by the company. These techniques are
generally used to generate sale which varies within an organisation, but some of the most
common are Internet by the use of this technique Zara would be able to promote its
products to more customers, By the use of telephones, selling of products promoting with
the use of telephone is very common in this Sales agents can tell their customers every
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possible single details about the products and their services, By the door to door sale of
their products or by direct sales through representatives in the market (Lovelock, 2011).
 Purchase:- For the management of purchase every department has appointed their
purchasing department. The work of this department in an organisation is to manage
products selling and production rate at most preferable ratio which can make the highest
profit to the company. This department monitors the rate or amount of stock required for
buying and selling accordingly. The purchasing department also manages and responsible
for to buy consumable products which help to run an organisation. Zara is a global
fashion icon, to run such big organisation the company has to appoint different managing
teams with different budgets to work properly.
 Manufacturing:- In an organisation there is department which manufactures products as
according to need and rate of selling of those products. The work of this department is to
convert the raw material into productive good which can help the organisation to make
profit. The manufacturing department of Zara is having very high automated distribution
centres which are known as Cubes. This cube is around 5 million square ft. which is
contains 11 underground and over factories spreading in within over 16 km of area. Zara
is a company which changes its clothing designs around every two weeks on an average,
continuously manufacturing new product's designs as compared to other competitors who
changes their products design around after every 2-3 weeks. Zara is very much distinct
about their quality and uniqueness which is the main key behind the success of the
company (Malhotra, 2015).
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 Marketing:- The marketing department promotes and advertise the products of the
company. It may be merged with sale function and helps in getting good profit by the
increase in sale to the company. Zara is a retail industry, rather than advertising or any
other traditional method of promotion Zara is focusing on Expansion. The main
marketing objectives of Zara are to increase in customer equity, providing increaseed
purchase frequency among the customers having '' Plus size'', by continuous growth by
extending fashion brand of Zara, the most focus marketing plan is to increase the
awareness about their brand and providing favourable attitude towards their customers.
 Finance:- Within every organisation or department the main function of finance
department is to ensure the financial stability in an organisation and steady flow of cash
which is very important to maintain to support day to day transitions (Marshall and
Johnston, 2011). Zara finance management team works very efficiently and providing
proper budgets to save extra expanses on manufacturing and other possible works. The
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Illustration 2: Zara Distribution Cube Structure
(Source:- Zara clothing company supply chain, 2016)

finance department basically deals with the management of Bookkeeping and payables,
monitoring financial reporting and controls, Take care about and do function to manage
taxes and controls, in the analysis of strategic and financial planning, it also manages the
Treasury and working capital, provides capital budgeting, Take care and manages
different risks and works for the development of different corporates and their strategies.
 Human resource:- Human resources broadly provides support to the employees working
in an organisation. Their primary function is to take care about the working of an
organisation in positive and productive direction ensuring the welfare of every single
employee relating to organisation. The work of human resource management team is
giving advice and guidance to employees about their work, and motivates them to work
according to take company in positive direction. Which increases the productivity and
profit rate of an organisation maintaining the work-environment. Human resource
management team at Zara is maintaining the proper structure to organise running of the
company (Papasolomou and Melanthiou, 2012). By perusing proper training activities at
Zara to their employees about their works and roles towards the organisation. At Zara
policy of compensation are very useful which encourages existing workforce to works in
a company and attracts more qualified employees for to work in Zara.
 Administration:- The administration department deals with the paper works which is
important to run an organisation or a business. The administration department coordinates
with finance department to manage financial information about the company. This
department also coordinates with sales and purchasing department to maintaining the
relation with suppliers and the customers. Overall, administration department works to
coordinate with human resource, accounting, billing, finance, health and safety and all the
other department in an organisation and takes decision. It works in this form such as
Firstly planning then organizing of the process after that staffing which contains filling of
jobs position in company with right person and at right time, it involves determining and
screening of people, After staffing the directing comes which contains directing of people
and loading them to achieve set goals by the organisation, followed by Controlling which
evaluates all the areas and potential from the organisation plans, it includes management
of information and establishment of corrective actions and then at last the work of
administration is budgeting.
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P3 How marketing mix are applied on different organisation as compared to ZARA
Marketing mix is a set of techniques or actions which refers to the set of action used by
the company for the promotion of its production or the brand itself in the market. Marketing mix
generally works on 4Ps which makes typically mix of the marketing, These 4Ps are Price,
Product, Promotion, and Place. Nowadays with the increase in marketing techniques three more
Ps are added in the criteria of marketing mix which are Packaging, Positioning and People or
politics (Shaw, 2016). Marketing is the mixed element in the different quantities of an
organisation which finally delivers to one basic formulation which help the organisation to work
according to that and make profits.
The 4ps of marketing mix according to their foundation of ideas:-
 Product:- Products are the materiel or items which are produced to satisfy the customer
need or to fulfil the demand of certain group. Products can be real or other intangible
thing, Company or marketers must continuously expand their products mix by updating
according to trends and modifying the depth of the products list.
While, developing products company should keep in mind about the need of client, that is what
type of products and services they want from the company and the use of that products for the
customers (Shukla, 2015).
Asos is one the leading online fashion brands and selling their products world-wide. The
products selling by Asos is mainly for Adults and not having variety for kids and others the
quality and rate of Asos is also not good as Zara is offering to their customers.
Whereas, Zara is one of the leading brand in Fashion and clothing retail industry, the
products and clothes selling in the market by Zara are very much different on comparing to
quality and unique design of the products offering by Zara. The product quality is one of the
biggest reason behind such great success of Zara.
 Price:- Price is one of the most important marketing mix it is basically the amount which
is paid by the customers to use or buy the products and services offered by the company.
It can act as the most crucial way to determine the firm's profit making and its survival in
the market. Price adjustment has very big impact on marketing strategies and also affect
the growth and product sale in the market.
Pricing helps to shape the perception about the product in customer's mind, low prices usually
put the image that the products are inferior or of low quality as compared to other products in the
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market. Similarly, if the products is having higher prices than its actual quality or as compared to
other same products in the market, customers will value their money over those products.
Organisation should be sure and examine the other competitors pricing and price their products
accordingly and continuously update those prices. Pricing of products basically done on the basis
of the amount which is spent to produce the product, analysing how much amount the customers
are ready to pay for that product and adjusting the amount of profit rate according to market
situations (Thomas, 2011).
Pricing of the products offering by Asos is slightly lesser than the price Zara is offering for their
products which makes their image in the mind of some customers that the quality of Asos
products are inferior as compared to Zara.
Prices of the products offering by Zara are quite higher, as compared to their other competitors
but, because of their bigger brand name and better quality customers are ready to pay the amount
company is asking for their products. Zara mainly put their focus on low costing in
manufacturing of their products which also gives them liability to increase or decrease the price
rate of their products as according to market conditions as compared to other brands in the
market.
 Place:- The placement or distribution of product to the potential buyers which is easily
accessible. This comes by analysing the targets of company and the demand of the
market. Understanding and analysing the demand and the market situation the positioning
of products and distributing channels at most efficient place. Distribution of products and
its strategies includes Intensive distribution, Exclusive distribution, Selective distribution
and Franchising (Tripathi, 2013). The place of distribution and product stock is decided
on the basis of all these distribution strategies.
Company should focus on these strategies while distributing their products such as, the place
where clients or customers are willing for company's products and services, deciding the place
where customers usually used to prefer their buying such as shopping malls, regular shops,
supermarket, Online store or any other.
Zara is selling their products in almost every possible source they can, potential
customers can buy their products from every offline as well as, online sources such as their own
website or by using other shopping engines. Zara is also offering their products from offline
source as well and this allows them to contact their customers directly and sell variety of
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products very easily. Unlike different organisation such as Asos and others fashion industries
which are selling their products only through Online sources which is binding them only to
online markets (Wiid and Diggines, 2010).
 Promotion:- Promotion is the marketing strategy through which any organisation can
boost up its sale and let other potential come to know about their products and services.
Promotion is unit of various elements such as Sales Organisation, Public relation,
Advertising, Sales promotion and others. Promotion through Advertisement typically
covers different methods such as radio commercials, print media, television
advertisement, online advertisement and other sources. Zara should focus on its making
of relation with public and promoting their services with the help of different ways of
advertisement and maintain their public relation which includes press releases,
sponsorship deals, conferences, events, exhibitions and seminars.
All the marketing mix elements influences each other. If these mixes are managed and
handled well then they can provide great success to Zara. These marketing mix requires lots of
market research, understanding and consultation with lot of people to create perfect plans and
organise them accordingly for the success of the company.
Comparing, to other companies marketing strategies and their promotional strategies,
Zara is expending very little amount as the company believes in maintaining relation with their
customers through their product quality, this also allows the company to save their investment on
promotion and use that budget in different development policies (Campbell and Martin, 2015).
Zara marketing mix as compare with H&M
Marketing
mix
Zara H&M
Product It is one of the most luxury brand
in the fashion industry. They offer
a wide range of men, women,
child wears clothing with the high
quality helps to provide
competitive advantage.
On the other hand, H&M also provide
fashionable clothing but the product
range is quite limited.
Price Zara product price is quite higher The price of H&M product is lower
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as compare to other business
organizations.
which helps to increase their sales in the
market.
Place Zara having various stores approx.
2000+ and its will helps to gain
competitive advantage.
H&M also have good number of stores
but their operation is focused on the
European market.
Promotion Zara spending large amount of
capital on the marketing campaign
and other promotional tools.
Whereas, H&M are using social media
and other platform which are quite cost
effective as compare to Zara.
P4 Marketing Plan for Zara: -
There are many competitors of Zara, and to compete such a better planning is required.
Although plan has to be made in systematic process which help to know the marketing function.
Moreover, effective planning help company to retain their existing customer with attracting
many more prospect customer towards their product and services. Planning of ZARA is as:
Company overview: ZARA is highly known brand and it is mainly famous for it's
fashion brand. It has approximately 6500 outlets and serving people in around 100 countries of
world. Although firm provides its product on less prices and make company to earn higher
profits and attract many other customer as well.
Objectives: Zara objective is to become the first choice of customer in terms of cloths.
Therefore to provide product and services at reasonable prices so that they can higher profits and
customer can get satisfied. Organisation try to attract new customer towards them by creating
and bringing innovation in their product and services in proper manner.
Situation analysis: while making an implementation of the plan it is required by firm to
look for the internal and external analysis as because they bring a great impact on company. The
analysis of internal and external factor are as follows:
Internal analysis: Zara needs to know their strength so that they can make a better
decision and with analysing internal a performance measurement can be done in right prospect as
well. Decline in working criteria can be improved as well and risk can be minimised.
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External analysis: The Zara company has to know the external factors and their impact on
working criteria of firm and become hurdle in developing their industry as well. Making research
and solving with information make them to attain their goal and objective in right prospect.
Strategies: Strategies are those which has to be made in right contrast, so that company
can follows them and can attain their objective and aim. Strategies are made after having
research of market and using information available to them in proper manner and making their
firm to perform in better way so that they can compete in market and provide satisfaction to
customers.
Budget: Zara has to make a budget which make them to divide their financial part into
various department and activities. This concept is the base of any activity without this a company
cannot work in effective way. The planning for budget is as follows:
Marketing budget
Particulars
1st
year
2nd
year
3rd
year 4th year 5th year
Initial capital 50000 2500 6000 7000 5000
Finance 19000 20000 11000 17000
Total 50000 21500 26000 18000 22000
Marketing
expenditures
Publicity 2000 10000 7000 4000 7000
Sales publicity 1000 2000 6000 5000 1000
Direct
marketing 6000 2000 2900 3000 1700
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Internet
marketing 3000 1600 5000 7000 6000
Social media 1900 6000 12000 13000 4000
printing 1200 1400 1000 900 6000
Events 9000 15000 9000 2200 3000
Total 24100 38000 42900 35100 28700
Control: It is required firm to have their control on each and every task so that it can be
completed on time and in correct format as well. Control help to make every task and activity to
have use of employees an organisation effort in lower manner. Zara with control on their
working can higher profits and attainment of their goal and objective can be there in proper way.
SWOT analysis of Zara:
Strength Zara is having larger number of store with 2000 in different
countries.
The cited firm having an integrated supply chain which can
provide competitive advantage.
The product range of Zara is quite attractive and they launch new
product on regular basis.
Weakness There is various fashionable brand which having negative growth
ion their business.
In the last few years’ company not perform well due to slowdown
in the global economy.
Opportunity There is various emerging market such as India and China which
can provide a competitive position in the market.
Threats There are new players are coming in this sectors which also affect
their market share.
 Marketing objectives of Zara:- As from last few years the market is continuously
changing its concepts, many of the other companies are selling their products at very
large profit, whereas, Zara in this situation is providing their products at very low
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comparative prices which is attracting more customers towards their brand. Overall main
objective of Zara is to providing of High quality products at very reasonable prices and
selling them in their own stores by continuous updating in the stock and providing
fashionable prices. Zara is following the concept of offering 58% of men's clothing, 22%
of women's and 20% of children clothing (Papasolomou and Melanthiou, , 2012).
 Segmenting, targeting and positioning for Zara's Marketing strategies: - Zara is offering
and using Sociology, Geographic and Psycho-graphic mix of strategies segmentation to
serve needs of customers. To make their products availability in the market Zara is using
selective targeting strategies because of their limited stores. To satisfy the changing
fashion need of the customers Zara is using Usage-based positioning strategies to
highlight customer's centric approaches. Zara knows the demand of their customers and
proving latest and updated trends to their targeted customers (Brady, 2014).
 In order to achieve these objectives a company can use following strategies
Product development In this approach Zara required to develop a new
fashionable product before achieve the life cycle of their
existing product.
Market expansion This is one of the most appropriate strategy where a
company can increase its market share. UK market one of
the competitive which reducing the Zara profitability. In
this situation, cited enterprise can expand in business in to
other Asian countries to maintain their position in the
market.
 Zara should focus on little more promotion of their brand, organisation should set a
budget for to promote their brand with the help of advertisements and other sources of
publication. Company can increase its stoke capacity for women's and kids as well to
increase their brand's popularity. In order to achieve effective implementation company
should maintain their Market penetration strategies, focus on its market development that
is trying to enhance their brand value, focusing on the demands of the customers and
having the strength to accept challenges in the market, Zara should modify its
Diversification strategies.
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CONCLUSION AND RECOMMENDATION:-
The above report has summarized about the adopted strategies of ZARA which is a
renowned leading Fashion and clothing retail industry, giving information about the marketing
mixes and marketing strategies of Zara comparing it with the other companies strategies, this
report has thereby analysed about the effectiveness and contending nature of Zara with other
companies in the market. This report contains explanation about the role of marketing and also
throwing light on different functional areas in business of Zara and other contending
organisations, and at the end providing a marketing plan with controlling measures.
Furthermore, on concluding the overall report it is recommended to Zara to maintain their
promotional strategies and increases their promotion activities with the help of advertisements
and other as compared to their other contenders in the market the promotion of Zara toward its
product and Brand is very low they should focus on promoting of their brand. Organisation
should also focus to make accurate sale forecasting and improve their channel Marketing
management. Zara should also manage its 4ps of marketing mix which are Products, Place, Price
and promotion with continuously updating these mixes with change in time. Company should
focus on its efficiencies and try to minimise the cost for production of clothes and other products
which will help them to change their pricing accordingly when needed unlike other organisation
and makes them huge profit at time of low business in the market.
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