Marketing Strategy Budget Allocation

This assignment requires careful planning of a £1,000,000 marketing budget for an unspecified company. The primary focus should be on creating an effective marketing strategy that includes both traditional and digital marketing channels, with a strong emphasis on internet and social media marketing due to their current relevance and efficiency. The task involves allocating funds towards various marketing activities, considering the long-term effects of strategic decisions, while also referencing relevant books, journals, or online resources for guidance.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
LO 1........................................................................................................................................2
LO.2. ....................................................................................................................................14
P3. Ways through which Marks and Spencer use elements of marketing mix (7Ps)...........14
LO 3......................................................................................................................................17
P4. Develop and evaluate a marketing plan.........................................................................17
CONCLUSION .............................................................................................................................19
REFERENCES .............................................................................................................................21

INTRODUCTION
Marketing plays a very crucial role in success of any organisation. Kotler says that,
“Marketing is an advertising process through which groups and individuals obtain whatever they
need and want through creating and exchanging products and value with others”. The present
study is based on Marks and Spencer (M&S) company which has higher presence across the
world in retail industry. The function is all about how product of a company is marketed in the
market for its sales. It involves key features like promoting a product and launching it in the
industry. This helps to achieve satisfaction level of customers and their needs along with making
them happy. It is very essential for building M&S company's reputation in its relevant sector. For
a company to be successful it is very essential to have better customer seller relationship.
Because the customers are everything for an entity and helps to operate in the market. It is seen
that making new customers is difficult as compared to retention of old customers. Main function
of marketing is to maintain organisation's reputation, dealing with bad press, product selling,
making customers loyal etc. Marketing is required everywhere and it changes whole scenario of
an organisation. M&S is the large firm of retail industry within the world. M&S provides retail
items and services like grocery, toys, food products, clothing etc. to the worldwide customers.
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LO 1
2

3

4

5

6

7

8

9

10

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12

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LO.2.
P3. Ways through which Marks and Spencer use elements of marketing mix (7Ps)
Marketing mix is an important tool to advertising any product of a company in ongoing
market. It can be seen that using these elements of marketing mix a great help is taken by the
entity. Further, various elements considered in market mix are stated below:
1. Product : A product or service is what any company does to gather sales. Every organisation
or firm produces a product which generates profits for them (Morgan, 2012). M&S company
using marketing which is the basic requirement to boost up sales and can be seen that it leads for
making huge profits. The quality of product plays a major role. Companies focus on improving
product all time. Product when compared with other competitive firm then it has to be better than
the rival companies. It needs to be taken care at the time of competition (Bloch, 2011). Tesco
deals in wide variety of products including clothing, financial services, food, electronics, etc. The
marketing mix of Tesco product line caters to every possible needs of its customers. The
company also provides a wide variety of choice in its product line say for example international
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cuisines in it food line. From the above comparison it can be noted that Tesco is focused in
diversifying its product line while M&S company is focused on enhancing the quality of its
products.
2. Price : Second P indicate to the Price which has to be altered according to current conditions
of market. Continuous examining of product has to be done to see ongoing prices and what all
changes are to be made in it. Some times price need to be lowered and another time it needs to be
higher like quality, appropriateness etc. (Ataman and et.al., 2010). Pricing factor is up to mark
and it is very much required in market. Terms and conditions of government also lead to make
changes in the prices. In marketing plan prepared for the Marks and Spencer, if price derives in
higher level then customers will not attract in the more numbers. Tesco aims at reducing and
cutting down the price of its products without compromising with its qualities for this it also uses
measures like economies of scale. Here low price strategy of Tesco is gaining a point in
comparison to M&S company.
3. Promotion : It is really important in order to make sales of product through marketing in the
industry. Even a small change in way of promotion of any product can result dramatic changes.
M&S company is using offline and online like internet as well as social media to promote its
products and services. Tesco's main objective is to maximise its profits by reducing costs and so
its all advertisement and promotions are focused on a single thing, that is its low prices. This
type of promotional activities attracts more and more customers as consumers always shifts to
low price products.
4. Place : Place of marketing mix determines a lot about profits that the Marks and Spencer will
be made in the future accounting periods within retail segment. It is also true that a sudden
change in place can increase change or fluctuate in the revenue or sales. Various companies use
different selling techniques for example some sell directly by sending their salesperson to meet
client personally, some prefer telemarketing, some may do it by mail or catalogue etc. the
company which is selected has its own way or channel of generating profit (Berthon, 2012).
Products to be sold needs according to place and requirements of the customers. A product meant
for urban areas won't be feasible and appropriate if sold in village or rural areas. Likewise, many
other retail chains, Tesco also has two main channels of distribution i.e. online and offline. Its
offline channel comprises six different types of stores namely Tesco express, Tesco extra, Tesco
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metro, Tesco Compact, Tesco Home-plus and Tesco superstores across 11 countries. In
comparison, Tesco's products are easily approachable then M&S company products.
5. Process : Process is also a very essential for any organisation. It mainly includes packaging of
products. Small changes in way a product is being packed can lead to great response from
customers. Packaging refers to way any product is looking to customers, what attracts customers
most. Products and services of Marks and Spencer are packed with attractive cover which helps
in gaining attention of customers. They use all sorts of attractive colours to attract more number
of purchasers and consumers. Other than colours their packaging is of utmost quality which
keeps retail products durable for long time. (Fifield, 2012). The process of Tesco focuses on
keeping its customers happy by providing products in its stores online as well as offline.
6. Physical Evidence : It should be thought over how a product can be positioned in the minds
of customers. In this, the M&S stands in market and create positive perceptions for the people or
local community about it. Further, it is really important since it will tell community everything
about the goods and services and everything falls under the respective items. Sometimes
products may be excellence, quality engineering, ultimate comfort for the people which helps to
the entity to raise its revenue. Further, a habit of creating higher and effectual positioning must
should be done by the firm. M&S has positioned its products for all kinds and level of people
like young, children, adult and old age (Varadarajan, 2010.). Tesco uses logo's, colours, labels
and equipments as the evidence of the proof to its customers. Tesco has over 6500 stores which
also acts a physical evidence for the concerned organisation.
7. People : People means customers, who are important assets for company. Every single thing is
done for clients within the firm as they are significant for it up to the higher extent. Marks and
Spencer has focused itself on improving retail products and services for people who are their
regular customers. It can be seen that they are providing exciting offers for registration of
services throughout year. It is for customers every day that change in prices, new products are
made, marketed, sold over and hence changes are made. The most important strategy opted by
M&S is, 'take right people on bus, and wrong people off bus'. After hiring of employees is done,
second step that comes is to 'get right people in right seats or designation within company. This
is a great technique and way for attracting people, which is totally relevant for cited firm like
M&S. Potential of an employee must be taken into consideration and must be designated
accordingly by the management (Kim, 2012). On the other hand currently more than 400000
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employees are employed in Tesco and it also has a great number of customer assistance.
Effectiveness of any organisation can be judged by its customers and employees and to gain the
loyalty of its customers Tesco is using programs such as buy as you earn, colleague privilege
card, etc.
LO 3
P4. Develop and evaluate a marketing plan.
Marks and Spencer is a large company in providing retail goods, items and services up to
the purchasers and consumers. The company has approximate 82,907 employees and which are
very successful in doing the best possible sales for the entity in retail industry. For improving
business marketing plan along evaluation is stated below:
1. Assessing current situation of company : For taking any further action related to business
company's current situation has to be known. Present or existing market conditions tell what
things are required by organisation or what things need to be neglected (Hollensen, 2015). The
company should also know about competitor's product and services because through this a great
help can be taken. M&S is performing good in current situation but needs to improve in its
marketing techniques which helps to enhance revenue at the end of year. The company must be
focused on current situations and systematic analysis of market, in which area company perform
well and where improvement required. This strategy helps to Marks and Spencer for generating
more revenue from the market and improve product quality according to the customer's needs
and wants.
2. Target audience should be known : It is seen that target audience needs to be assessed and
identified which are like customers conservative, innovative, leaders, followers, aggressive,
traditional etc. Along with this, purchasing power of customers, how many products and services
of retail they purchase, these types of aspects fall in target audience which needed to know. After
determining their aspects and requirements a huge help can be made since it will help to target
product according to audience. M&S company's main and basic customers are of the all level as
well as age of the people or community. So, key focus here is to attract more customers to buy
their products. M&S entity has centred on children, old age people, youngsters etc. as they can
also refer to their products. Determining target audience can helps in reducing amount of work to
be done because segmentation makes it clear where company needs to put their efforts (Slater
and et.al., 2010). The company has knows about the target customers and their choice and wants,
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then produce product according to their requirement. Marks and Spencer marketing department
must be focused on promotional activity in terms of retaining existing customers and attracting
new customers with the helps of advertisement and promotion of their products.
3. Marketing goals should be known : Marks and Spencer must set their marketing goals as
well as objectives and then work over achieving it. Here, the company is set to be on number one
position as this is a common strategy and goal of any company. The cited firm should provide
products of utmost quality up to the customers. M&S entity has main goal is to increase their
sales and generate more amount of revenues. In the present era, level of competition is cut throat
and firms are dying to win over another company. Goals should be attainable, measurable,
appropriate, specific etc. and purchase should not to just achieve it. (Varadarajan, 2010). Already
listed or agreed goals can help to the firm in order to focus attention for achieving it. Further,
meet with the objectives are important because it supports to meet achieve big goals or aims.
Small goals or purposes can be achieved within a certain time limit whereas big aims need more
time and a proper planning for meeting with them (Morgan, 2012). Based on market analysis and
set objectives each marketing plan will achieve through effective work on both of them.
Achieving revenue growth the company must be focuses on market expansion and product
development. Rising the earning Marks and Spencer focuses on quality products, availability of
products, to obtain good value money and care about customers.
4. Market communication strategies should be made : Communication is foremost important
since it is most basic way of doing marketing. Without proper communication a product can't be
marketed and entity cannot aware to the community in proper ways. Basic marketing goals of
Marks and Spencer organisation are to aware huge number of customers towards it and enhance
their purchasing capacity. Apart from this, it has another objective behind marketing is to
increase market share in retail industry. The company like Marks and Spencer should focus on
providing discount on their products or services of retail and communicating trough social media
and internet. Further, it uses social media which is the best way to marketing a product.
Advertising is one way to promote goods and services as well as most of time it is seen that
customers are attracted through these advertisements only. M&S enterprise is doing
communication through social media, mobile phones by sending SMS and calls, on Radio by
giving jingles, TV ads, newspaper ads, Magazines ads, ads during a movie etc. These are some
of the best ways to communicate with customers because these are in trend and easy to
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understand by customers (Create a Marketing Plan. 2015). The company also spends large
amount of money for the promotion of their product and service into market. Through
Television, print media and poster have been the main media tools of convey their massage to
the customers and promotes their products. The company also tries to every retail shop stocking
their products.
5. Budget of marketing must be planned : Budget is everything because any project or activity
requires money or capital to finish work. Without this a project can't be complete in the working
environment. It is seen that by proper utilisation of budget a big difference can be made in sales
and performance of the M&S. Here, management of M&S has decided to spend amount around
10 lacs for marketing purposes. This money will be involved for shops to be installed in trade
fair and exhibitions. Another step would be making of banners and pamphlets. Around 2 lacs
will be invested in installation of shop and paying rent for about 7 days. Rest money can be used
to produce good packaging of books because it brings a good image of company. Rest money
will be used to fight competition with other competitors and market of retail sector (Perreault Jr
and et.al., 2013). Marketing budget are planned to support to the marketing strategies as they
require large expenditure. In Marks and Spencer marketing budget are planned and divided after
analysis. Budget will prepare and present by the marketing executives in front of the finance
team.
Budget of M&S for marketing is stated below:
Particulars Amount
Marketing through trade fair and exhibitions 450000
Preparing banners and pamphlets 100000
Installation of shops and rent of it 200000
Packaging of retail products and services 100000
Marketing through social media 150000
Total budget amount 1000000
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CONCLUSION
Marketing is a very crucial part for each and every company of various industries and
plays as a backbone for the firm. In today's world marketing, with the help of internet and social
media is in trend. It is also easier and efficient to marketing the products through internet. At the
current era internet present everywhere wand used with the fast rate. A product produced in UK
can be marketed in a country at same time when it is advertised in other countries. Further, due
to marketing sales of the company increases. Marketing is a process which is never ending and
must be taken seriously by companies to stay in market and enhance its profitability.
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REFERENCES
Books and Journals
Ataman, M. B., and et. al, 2010. The long-term effect of marketing strategy on brand sales.
Journal of Marketing Research. 47(5). pp. 866-882.
Berthon, P. R., and et. al, 2012. Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). pp. 261-271.
Bloch, P. H., 2011. Product design and marketing: Reflections after fifteen years. Journal of
Product Innovation Management. 28(3). pp. 378-380.
Fifield, P., 2012. Marketing strategy. Routledge.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Kim, K. H. and et.al., 2012. Effective employment brand equity through sustainable competitive
advantage, marketing strategy, and corporate image. Journal of Business Research.
65(11) .pp. 1612-1617.
Morgan, N. A. and et.al., 2012. Export marketing strategy implementation, export marketing
capabilities, and export venture performance. Journal of the Academy of Marketing
Science. 40(2). pp.271-289.
Perreault Jr, W. D. and et.al., 2013. BASIC MARKETING: A Marketing Strategy Planning
Approach.
Slater, S. F. and et.al., 2010. Factors influencing the relative importance of marketing strategy
creativity and marketing strategy implementation effectiveness. Industrial Marketing
Management. (4). pp. 551-559.
Varadarajan, R., 2010. Strategic marketing and marketing strategy: domain, definition,
fundamental issues and foundational premises. Journal of the Academy of Marketing
Science. 38(2). pp. 119-140.
Online
Create a Marketing Plan. 2015. [Online]. Available Through:
<https://www.entrepreneur.com/article/241953> [Accessed on 6th July 2017].
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