Comparison of 7P's Marketing Mix: Marks and Spencer, McDonald's, Starbucks

This article compares the 7P's marketing mix of Marks and Spencer, McDonald's, and Starbucks. It discusses the products, pricing, place, promotion, people, process, and physical presence of each company.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and Responsibilities.....................................................................................................1
P2 Interrelationship of marketing and other functional units......................................................4
TASK 2............................................................................................................................................6
P3 Comparison of different organisation using 7P's marketing mix...........................................6
TASK 3..........................................................................................................................................10
P4 Produce and evaluate a basic marketing plan for an organisation.......................................10
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Marketing refers to actions taken by organisations to promote goods and increase buying
and selling. It includes selling, advertising and delivering products or services to end users or
other customers of company. Marketing is an essential process as all activities are performed by
companies to draw attention of buyers towards their goods and build long term relationships with
them. In other words, marketing is to match company's products according to the needs or
requirements of people(Akbar and et. al., 2017). Marketing can be done through different means
like blog marketing, print marketing,video marketing which are basically advertisements, social
media marketing and other various medium are present in market for marketing activities.
This report is focused on marketing, its different concepts and marketing mix strategies,
how they are made and their implication in operation of organisation. In first section, through
Marks and Spencer explanation of marketing processes, roles and responsibilities of marketing
function,their interrelationships with other functional units present in company is given. Then in
next part, marketing mix plans of Marks and Spence is compared with McDonald's and
Starbucks. At the end, a marketing plan of new product launched by Marks and Spencer is
provided with proper intellect and suggestions.
TASK 1
P1 Roles and Responsibilities
Marketing- It is a process of attracting potential buyers for products or services of
organisations. It includes many small process like selling, promoting and distributing of goods.
Importance of marketing- It is a very important process which takes place in every
company for smooth running of business and its functions.
Some marketing concepts are explained below:
Production Concept- this concept is based on phenomena that company can increase as ti
decrease costs of goods, also it emphasize on thinking that entity's can save costs or lower it
down with mass production.
Selling Concept- It concentrate on actual sales, selling goods within every possible
scenario without considering quality of products and customer needs. It highlights that
consumers will buy products if company sell them aggressively(Pike, 2016).
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Marketing Concept- Company's who follow marketing concept put consumers first in
organisation, all actions are taken in accordance with buyers. Objectives of business is to
understand requirements of end users.
Societal Concept- It focuses on satisfying needs of target consumers and to deliver best
products to them as compared to their rivals. Its a new concept and also thinks about
improvements of society and well being of society(Baker and Magnini, 2016).
Product Concept- This phenomena works on assumption that buyers prefer goods with
greater quality and prices, availability of products doesn't impacts their decision for purchasing.
Therefore, entity's develop goods with greater quality and which are normally expensive when
comes out in market.
Marketing process is as follows:
Situational Analysis- This analysis is done to explore market opportunities, to know
about the abilities of company and surroundings. Tools like PESTEL, SWOT and 5 C analysis
are used for situational analysis.
Marketing Strategy- Plans are made in relation with opportunities explored by
organisation to pursue. This analysis is done through STP (Segmentation, Targeting and
Positioning).
Designing Marketing Tactics- After strategies are made tactical detailed decisions are
taken to obtain desired results from chosen marketing mix. It involves 7P's Product, Price, Place,
Promotion, People, Process and Physical presence(Pike, 2015).
Implementation and Control- Last but not the least, marketing plans are implemented and
outcomes are being monitored, so that if required any changes can be done according to the
market.
Various roles and responsibilities every marketing function has to perform are as follows:
Roles Distribution channel- Marketing unit has this role to decide where to arrange raw
material to produce finished goods required by buyers and how to provide them.
Distribution is very easy but due to increasing interconnected market situations it is
becoming very difficult for organisations to select best available option for provide their
products and services to consumers. Therefore, this role is performed by marketing team
to analysis and render best distribution channel to company.
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 Financing- Money is the most importing resource which every company needs for its
operations to begin and function properly. This is marketing employees role to provide
best possible financial aid to entity, searching for funds from different investment
schemes or loans to fund the operations of company. Marks and Spencer's marketing staff
also have to do some research for bringing cost effective financing opportunities for the
company(Baker and Saren, 2016). This will help them to work efficiently, delivering best
to their customers and other interested parties. Deep market research- Its about gathering or collecting information about targeted
market of organisation, knowing the customer and their wants is most basic data every
company needs to operate. Marketing departments another role is gain knowledge about
the market they are doing business in to understand requirements of market plus of
buyers. Marks and Spencer's marketing team will also conduct research activity in
relation to their customers, formulate plans or strategies accordingly for obtaining
effective and efficient results.
 Promotional channel- Advertisement is necessary for company's to introduce their
products or services in market or for provision of knowledge about goods. And this
comes under promotions, where organisations choose different ways to promote their
products in marketplace targeting various consumers. Marks and Spencer is top fashion
brand, therefore they use unique promotional strategies to attract more consumers and to
keep existing buyers stick to them. This role is also performed by marketing staff to give
tailor-made promotional plan to sales department for better sales of goods.
Responsibilities Searching for new marketing tools: Marketing teams responsibility is to keep the
organisation updated with all new trends, strategies and tools. As market is changing
everyday, various new tools are also being introduced in market and as marketers
marketing employees hold this obligation to bring those to company(Piñeiro-Otero and
Martínez-Rolán, 2016). Innovate- Customers are really important for all company, so keeping them satisfied and
happy is main objectives of them. Surprising consumers and providing goods beyond
their expectations by bringing new innovative products and services is must. Marks and
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Spencer deals in fashion industry which makes is more important for them to be
innovative according to taste and preferences of buyers. Brand value- A brand is how organisations are represented in marketplace and for
building brand value marketing team is responsibility. They holds responsibilities of
developing effective brand image and ideas which best conveys the message of brand to
public. Ensuring good picture being presented in market and more and more people are
connecting with the brand plus choosing their brand before other competitors present in
market(Dessain, 2016).
 Monitor competition- Position of entity in relation to market environment plus
competitors is important to be analysed and monitored. This is another responsibility
performed by marketing staff to study market and company's position in market
regularly. This is done to learn more about the competitors, what they do best and adopt
some of its qualities if helpful in improving organisation operations.
Marks and Spencer is a clothing brand and needs very effective promotional plus
marketing strategies. Employees working in marketing team has some roles and responsibilities
they need to perform for company so that predetermined goals can be achieved. These roles and
responsibilities are some necessary jobs every personnel has to do for contributing their part in
organisation and its operations and which is also expected by them looking at their abilities.
P2 Interrelationship of marketing and other functional units
An important task every company faces is to interrelate plans of different departments
with each other in order to attain objectives of organisation. For accomplishment of unified plans
of various functions its necessary that those plans are formulated in co-ordination from the very
beginning(Puddle, 2015). Therefore, some interrelationships between marketing and other
functional units are explained below in relation with Marks and Spencer.
Marketing and HR
Role of HR department is to bring best potential or talents workforce to company and
therefore, they perform all activities related to manpower like, hiring employees, training them,
resolving all their issues and managing personnel. Marketing members of Marks and Spencer's
should work together with HR team for developing job description, screening process of
candidates etc. to have best team which can perform all marketing tasks allocated to them in
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efficient manner. The more efficient personnel is present in marketing team the more it will
benefit company in its operations and achieving desired goals.
Marketing and Production
Here, relationship works in both directions, in some way production needs marketing
staff to perform few tasks for them. On the other hand some times marketing needs production
team to be helpful in completing their actions. Interdependency of both the departments is visible
at time of development of new product, proper information about market is required by
production team to for creating or innovation. This data is provided by marketing team as its
their role to conduct market research for entity's and for their betterment. Plus marketing staff
also needs all subject matter related to product for formulating marketing and promotional
strategies(Eng, 2017).
Marketing and Finance
Another necessary relationship is seen in marketing and finance department, they are
linked with each other for performing many different activities for the company. Many or the
marketing jobs applies financial knowledge and funds like, budgeting, planning for marketing of
products or services, branding etc. therefore, both these function work in line with one another.
Their relationship is not limited to just getting financial aid or providing strategic plans, its more
then that. They hold dual relationship which works both ways for attaining objectives or goals in
an effective and efficient manner.
Marketing and R&D
One of the most essential role of marketing team is to conduct research activities for
organisations, so their efforts are connected to that of research and development department.
Ignorance shown by entity's in linking plans of these two departments has costed a huge amount
and many failures. Major tie-up in marketing and R&D teams actions takes place while
developing new products and services. Every phase of development of fresh goods needs close
link up between marketing and R&D teams as they both adds their value for producing best
product or service(Rancati, Gordini and Capatina, 2016).
According, to the changing market situation Marks and Spencer also have to bring
change as its a fashion brand. If any industry have the most dynamic environment that is clothing
industry because choices of people are changing every day and they want something new and
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beyond their expectations. Therefore, its necessary for various functions present in operational
structure of Marks and Spencer to formulate plans and strategies in with co-ordination and to
work with one another. Company will only works efficiently and effectively plus in accordance
with aggressively changing surroundings when its functions are co-ordinated well with each
other providing great results to organisation.
Why Marks and Spencer should hire me for position of Marketing manager?
Marks and Spencer can appoint me for marketing managers post as I have good
knowledge in marketing field. As I have shown my skills and knowledge earlier in my interview
about marketing, different concepts used in it, process of marketing, interrelationship of
marketing department with other functional units and critical analysis about how important these
interrelationships are for Marks and Spencer's operations(Rudden, 2016). Also I can bring
improvement organisation and its workings as I'm experienced enough with appropriate practical
experience in marketing(Lane, 2016). I have performed all activities which is needed by
marketing managers plus with my knowledge and effective use of available resources in
organisation I can bring better results and improve Marks and Spencer's position in market place.
TASK 2
P3 Comparison of different organisation using 7P's marketing mix
Marks and Spencer is a British multinational retailer, founded in 1884 by Michael Marks
and Thomas Spencer and headquartered in London, UK. It servers to many segments of
population worldwide and servers various clothing goods like women's clothes, uniforms etc. it
basically deals in fashion clothings.
McDonald's is an American fast food company founded in 1940 by Richard and Maurice
McDonald's. It has its headquarters in Chicago, U.S., McDonald's serves worldwide to
consumers with its range of good quality food and traded on NYSE, TYO plus BMV.
Starbucks is also an American coffee house chain founded by Jerry Baldwin, Zev Siegi
and Gordon Bowker in 1971. It also serves to worldwide consumers like other two companies
and headquartered in U.S.
7P's Marks and Spencer Starbucks McDonald's
Product M&S product range
covers all genders and
Starbucks offers vast
range of coffee and food
McDonald's is one of the
leading fast food restaurant
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age groups, men,
women, kids etc. M&S
offers goods including
clothes, footwear, bags
and accessories. They
also offer food,
furnitures and gifts in
some areas of its world
wide customers.
options to the public. Its
main products are cakes,
cookies, pastries, various
kind of coffees and it is
famous for its roasted
plus richly brewed coffee.
worldwide. Initially it use to
sell breakfast, burger, fries
etc. but now with changing
atmosphere it has made
drastic changes in its menu
added many new food items
and rinks.
Price Competitive pricing
policy is adopted by
M&S for sale of its
goods and also because
of premium quality
products it offers.
Company follow
dynamic pricing strategy
during some specific
season, offering
discounts and new
schemes(Larson and
Draper, 2015)
It uses premium pricing
policy for its products
making it obvious for its
customers that good
quality products holds
high costs. Therefore, it
uses single pricing
strategy and that is
premium pricing.
Company has many pricing
techniques which it can use
to sell its products. The
restaurants decides prices
with demand based
methodology but sometime
their prices vary a little bit
due to some tiny reasons.
Also, McDonald's do not
impose their prices on
franchisees they set their
own pricing strategies.
Place It is an international
multinational retailer
operating its business
worldwide covering
most segments of
society. It also render
online ordering and
delivery services for
Starbucks has its cafes
open in different countries
around the globe. It has
almost 24000 stores in
approx 70 countries
which is a huge number.
McDonald's has different
distribution channels for
different places in which
their restaurants are located.
Like in some countries they
offer home delivery and in
other they do not. So they
have unique distribution
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certain goods in selected
regions.
channel for several places.
Promotion M&S make its
promotional strategies
very carefully by taking
care of every small
change happened in
market and make great
use of technology in
promotion activities.
It uses number of
promotional schemes to
promote its foods and
drinks in order to attract
more consumers. It has
scheme named “Starbucks
Rewards” which is a
great way to keep
customers stick with it for
longer period of time.
Also they perform many
CSR activities which is
another great mechanism
used by it.
For promotion tactic
McDonald's use
advertisements. It uses many
techniques of sales
promotion for better sales
and to improve its position
in this competitive
atmosphere. They make use
of all social media and print
media to promote itself and
attract more buyers.
Process M&S has its stores
available in malls in sub
urban areas and much
more organized then
stores of competitors. It
has different section for
men, women and kid
plus divided according to
parts like clothing,
furniture and gifts. Also
online purchase option is
there too which makes
its process organizes and
manageable.
Every store of Starbucks
has a proper process for
its functions(Larson and
Draper, 2017). Those
defined processes are
made for effective
functioning of business
and is followed very
strictly by everyone (top,
middle and lower level of
employees).
McDonald's perform number
of actions to make sales and
to reach to its consumers.
One of its process is that it
uses transparent food
preparation system, its
customers can see how their
food is being prepared. This
also act as an advantage for
company as it creates
goodwill for it and attract
more public.
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People According to its store
size present in different
locations M&S has
around 83000 number of
staff and pays utmost
attention to them. They
use competitive payment
policy for decreasing
their Employee turnover
ratio, retaining its skilled
workers(Steven, 2016).
It has huge workforce and
plan to appoint more
people around world for
its cafes. Starbucks is
famous for development
of its staff, they provide
good training to its
workforce for serving top-
quality food or drinks to
its customers and offer
best services
It has great skilled plus
experienced staff and almost
97000 employees are
working for it in UK.
McDonald's spend huge
amount of money in training
and developing better skill in
its staff. This practice keeps
personnel happy and
satisfied which helps in
retaining more employees.
Physical
Evidence
It has made its presence
in worldwide, opened
many stores in various
areas. All these stores is
great source of making
physical presence. It
sells vast range of goods
increasing its goodwill
and customers base
which leads to mouth
publicity also resulting
in giving evidence of its
presence.
Its physical environment
is not restricted to brand,
logo, store designs etc. it
has much more then that.
New ideas and creativity
levels of its designers is
allowing them to put great
impact on peoples mind
and in market too.
This is last element in
marketing mix which refers
to physical environment of
organisation(Malhotra,
2015). It has great impacts
on McDonald's and its
customers and ensures
consumer loyalty towards
the brand and builds higher
level of trust in public.
Summary
Product- It is an item that a company offers to public for satisfying their needs or wants.
Price- This refers to the pricing strategy used by organisation for attracting buyers and
selling it products in market.
Place- Here, product distribution channel is discussed, its a very important aspect of
marketing mix in relation to company.
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Promotion- Used for boosting brand position in marketplace, these are also different
strategies used by organisation to promote its goods or services.
Process- These are the systems or processes company make and perform for smooth
function of its operations and business.
People- Employees of entity's are talked here, their skills and talents are related or not
and if they are adding any value to company.
Physical Evidence- It relates to business its goods and services offered and activities
performed by and are those actions are leaving any remark on public and in marketplace or not.
TASK 3
P4 Produce and evaluate a basic marketing plan for an organisation
Marketing plan is the systematic and structured plan with he help of which operations are
performed in appropriate manner and it is easy for managers to communicate about systematic
way to complete the task. Marks and Spencer is launching “Baby Perfume” in order to diversify
their business operations(Mueller and et. al., 2015). It is important to understand and analyse
internal capabilities and external market components with the help of which performance of
organisation improves. Marketing plan for launching “Baby Perfume” is as under-
Situation Analysis of Marks and Spencer’s
In order to analyse situation of M&S, PESTLE and SWOT analysis will be done.
SWOT ANALYSIS
Strength Weakness
Marks and Spencer have good brand image in
industry, so it is easy to market new product
“Baby Perfume”.
Organisation does not have good financial
position, so they can not market their product
in effective and relevant manner.
Opportunities Threats
There is no organisation which is providing
baby perfume, so possibilities of growth and
success rate of this product will be more.
People are more skin conscious for their baby,
so there are possibilities that they are not ready
to purchase perfume for their baby because
children have perfume and other products.
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PESTLE ANALYSIS
This is the study which provides information about external market. PESTLE analysis for
baby perfume product is as under-
Political factor- In political factor, there is study of government norms and policies.
There is high tax rate of beauty products, so sales might get affected.
Economic factor- There is instability in UK economy, so people does not invest their
disposable income so there will negative impact on sales of baby perfume offered by Marks and
Spencer.
Social factor- Social factor of UK is diversified because of unequal income distribution
due to which sales of new product might be not that much.
Technological factor- Technology is changing frequently, hence for launching new
products there must be use of latest machine which requires cost for proper launching.
Legal Factor- There are many legal norms and laws which has to be followed such as
patent, copyright, etc. Hence there is requirement of expertise who have knowledge about latest
and relevant laws(Okumus and Cetin, 2018).
Environmental factors- Marks and Spencer will use new and technology which helps in
conducting operations. There is use of machines which gives less emission and affects
environment.
SMART TARGETS
SMART objectives for launching new product are-
 To enhance profits of overall kids section by 10% because of this perfume. To get sales of £ 500 within 6 months with this product.
MARKETING MIX
Marketing mix for launching new product is as under-
Product- Marks and Spencer is launching Baby Perfume for maintaining fragrance in
children.
Price- Pricing strategy of this product is price skimming because in this initially price of
baby perfume will be low but when demand of product will increase then it gets high.
Place- Place for launching this product is Europe because most of the people are
innovative and ready to avail in products.
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Promotion- Promotion of this product will be done with live demonstrating at stores and
social media platform.
People- Employees plays crucial role in launching this product because they interact with
consumers and make them agreed for launching it.
Process- Process of launching baby perfume is through offline sources i.e. available at
store.
Physical evidence- Physical evidence for baby perfume is picture of baby on the
container of perfume.
MARKETING BUDGET
Marketing budget is the set target which is used for launching and marketing new
product. Budget for this product is-
Particulars Amount (£)
Manufacturing 80
Marketing 14
Warehouse 16
Transportation 20
Total 120£
Marketing Analysis
In order to analyse market, there is use of STP approach with the help of which mangers
came to know about ways through which new product has to be launched(Pappas, 2017).
Segmentation Targeting Positioning
Consumers are segmented for
baby perfume on the basis
demographical because parents
who have small children will
prefers to avail this product.
Targeted consumers are baby
between infant to 10 years.
In order to position baby
perfume in market, managers
of Marks and Spencer will use
social media advertisements
because most of the people use
this platform and it is easy way
to communicate and approach
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them.
Activities you need to complete
Activities
you need to
complete
Timespan Outcomes Any Further action that you need to take.
Meetings
with sales
team
Every 4 days Get updated
report about
market and
its situation
If any issue arises related action can be taken
Training
employees
2 days Educate
employees
and develop
more skills
Motivate staff to support company and
product they are launching
Promotional
activities
1 day Spreading
awareness
or informing
public about
new product
Create better plans or strategies if old ones are
not effective
Control and Monitoring
Control techniques Monitoring techniques
Competitor Analysis is needed to done to
see functions of rivals and how they
perform their activities so be one step
ahead of them. Also this will enable
company to know if similar product or any
substitute is present in market or
not(Perreault, 2018).
For analysing competitors company can
conduct research and gather all related
information available in market and
monitors situation.
Customer Analysis can be performed to
select targets and to see if they are able to
or willing to invest in fresh innovation of
company. Through this company can be
aware about the behaviour of consumers
and their reactions.
For monitoring consumers company can use
various tools to know more about them like
conducting door to door surveys or
interviewing them.
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Customer Feedback are also a control
activity to understand market, if they are
satisfied with product and small
modification can be done if required
A feedback is very useful way of
monitoring customers and their behaviour.
Company can send emails to existing
customers attached with a feedback form
and make a kind request from them to fill
those forms with their honest reviews and
send it back on their official mail id.
CONCLUSION
In above report various things is discussed about marketing and different outcomes are
being seen. This report starts with the basic concept of marketing and a PDF format is used to
explain about marketing, a brief introduction about its unique components and process is given.
Then 7P's marketing mix analysis is used as it is tool containing different elements to study
various aspect related to an organisation and comparison between three different companies is
also done to gain better understanding. At the end a detailed marketing plan is made for
launching fresh product that is a baby perfume to see how market function and how marketing
helps entity to make that product a success.
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