Marketing Function and 7Ps of Zara

This assignment involves a comprehensive analysis of the marketing function, including its roles and responsibilities. It also delves into the 7Ps of marketing mix, specifically for Zara and H&M, providing a comparison between the two companies. Additionally, it presents a budget plan for Zara company, highlighting various costs and sales growth percentages.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Roles and responsibilities marketing function.......................................................................3
P2 Interrelationship of marketing with the functional units........................................................4
LO2..................................................................................................................................................6
P3 Comparison Of Marketing Mix Of Two Organisation..........................................................6
LO3................................................................................................................................................10
P4 Evaluate basic marketing plan.............................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is method of promoting and selling the products and services by using
advertisement tools on order to increase their sales and revenue. Further, the report will highlight
about the roles and responsibilities of marketing function and along with it will outline about the
interrelationship among the marketing and other functional units. Eventually the report will
frame about the marketing plan of Zara (Feng, Morgan and Rego, 2015).
LO1
P1 Roles and responsibilities marketing function
The marketing department of Zara plays an essential role in advertising about the
enterprise and achieving the objectives of a company. Further, it acts as main body of the
organisation, coordinating and generating all products representing the company. Moreover, the
responsibility of marketing department of company is to attain out to potentialities, customers,
traders or the community, at the same time as creating a picture that presents the organization in
advantageous manner.
Further, the key role of marketing is that it is the important thing to attaining the primary
objective of the company which will be to earn earnings or to gain a few other intention.
Moreover, the responsibility of marketing will not only create awareness among customers but
can also extensively help with elevating budget and assured donations (Homburg and et.al.,
2015).
Nevertheless, in Zara the role of advertising and marketing department is to recognize
consumer needs and the responsibility of marketing department of company is to understand the
needs and wants of the consumers which are to be fulfilled, or even assist plan the precise goods
and offerings to satisfy this desires. Therefore, proper from the layout method, to the distribution
method, promotions and many others up to the after- sales provider are roles and responsibilities
of marketing.
Moreover, economic development of a country may be very closely associated with
advertising and marketing, thus, marketing department of Zara plays a valuable role within the
economy. Further, within the economy the responsibility of marketing is that it motivates
companies and different producers to produce goods in keeping with the requirements of the
consumer, and these units off a chain of activities (Felix, Rauschnabel and Hinsch,2017).

However, the marketing department of Zara also plays an important role to triumph over
the barriers for entering a new marketplace. Therefore, the responsibility of marketing
department is to keep the demand for and supply of products in test through ensuring easy
manufacturing and distribution of goods which helps the company to hold the production and
intake stability out and the price stays stable in the long run. Hence, marketing is an irreplaceable
component of the organisation which plays an important role in connecting the manufacturing
department with the consumption factor and the responsibility of the marketing department is to
earn higher income within the economy and enhance more savings and investments.
Further, the marketing department of Zara plays an importing role in the price element as
it generates the revenue for the company and the responsibility of marketing department of
company relevant to price component is that it helps the company in setting honest prices,
integrating the changes that are required and approaching the appropriate strategy.
However, marketers of Zara are skilled specialists who play a key function in influencing
degree, timing and composing of demand for products and services of the company
(Mierzejewska, 2017). Even so, sometimes demand may lead to declining stage, or no demand or
abnormal demand, excessive demand etc. Therefore, marketing department of the company plays
an important role in dealing with those varied demand of customers and the responsibility of
marketing demand relevant to competition is that they have form strategies and introduce new
methods so that they can respond to the changes in demand of the company.
Moreover, the competition is the most rising factor in today's marketplace. Thus, it plays
an important role in fulfilling the customers requirements and evaluating the strategies of
competitors in order to improve their products and services and the responsibility of marketing
department within the competitive environment is to provide superior products and services to
customers, higher quality products which will assist Zara to capture higher market share and can
lead over the rival company.
P2 Interrelationship of marketing with the functional units
The marketing function of Zara does not operate alone and links with the other
department of the company like human resource department, finance department, IT department,
production department, research and development department etc.
Human Resource Department And Marketing Department

Human resource department is the feature that operates within the Zara that helps in
various activities like recruitment and selection, training and development of personnels. Further,
other associated purposeful obligations of HR department of company include nicely-being,
worker motivation, fitness and protection, performance management, and of route the function
holds know-how regarding the legitimate aspects of human resources.
However, the HR department will help the marketing department of the Zara to recruit
an advertising assistant and play an important role for extending out the activity, candidate
profile, a process description, and advertising the task. Further, the responsibility of marketing
department is to assist to score and check application forms, and could organise the interviews
with the help of human resource department. Further, they'll offer to help at interview and could
help the marketing department of Zara to create their job advertisement (Wang, 2018).
Finance Department And Marketing Department
All advertising and marketing plans of Zara consist of a major monetary measurement.
Further, evaluation of price and earnings for product and services expressed in financial gadgets
or percent of sales, budgets needed to enforce strategies and marketing plans are all vital role of
the marketing department within the finance department. However, Budgeting and profitability
evaluation are also key components of advertising making plans and manage, which implies
economic equipment. Further, the various advertising choices of company should be regarded as
investment selections. Moreover, the responsibility of marketing department while introducing
brand new product is to evaluate the monetary gadgets and criteria that are to be used in the
funding. Hence, this type of assessment of advertising selections have to not be restricted to new
products and need to consist of decisions on advertising and marketing, merchandising, charge
and distribution.
Marketing And Research & Development
The research & development (R&D) department of Zara is related very closely to the
advertising and product improvement efforts of the company. Further, if the marketing
department of the company ignores the connection among R & D and advertising then it will
lead to loss to market share and customer base. However, the major role of marketing department
of Zara within the R&D is to revolve around the new product improvement efforts of the
company like introducing new styles of apparels and providing new technologies which will be

convenient for the customer to go for shopping to every of the new product development levels,
from concept era to the very last product development stage, requires close interaction between
advertising and R&D. Further, even the product layout stage, which historically has been viewed
as the only domain of R&D, can gain from advertising research inputs at the product capabilities
maximum favoured by using diverse goal marketplace segments and the customers trade off
among diverse product capabilities (Mayrhofer and Roederer,2016).
Further, the major responsibility of advertising department of Zara within R&D
department is to recognize the ability contribution of each other as marketing department studies
can not often locate revolutionary new product ideas but can provide the understanding of
customers unsolved issues and needs, examine their reactions to product principles, and help the
engineers of research and development department for evaluation of new product ideas which in
turn help the marketing department to advertise products in order to create awareness among the
customers regarding new products and services with the help of research and development
department.
LO2
P3 Comparison Of Marketing Mix Of Two Organisation
7P's OF MARKETING MIX ZARA H&M
PRODUCT Zara is one of the main
luxurious style brand operating
worldwide. Further, it provides
products for boys, girls and
kids which are inclusive of
jeans, pants, tops, skirts,
knitted clothes, T-shirts,
footwear, baggage and add-ons
and some of these are the
product strategy inside the
advertising blend of Zara.
Moreover, Zara considers the
concept of sustainable
H&M is a wearable retail
enterprise and offers trendy
style apparel for guys, girls
and kids. Further, H&M offers
variety of apparels which
includes the entirety from
designer clothes to normal
fundamentals and yoga put on.
Moreover, it also provides
various products for women
and girls like footwear,
baggage, accessories, cosmetic
and ready made clothes etc.

improvement and is bound up
to reduce the manufacturing of
waste and it recycles its
hangers and safety tags.
However, Zara offer their
merchandise in paper or
biodegradable plastic bags and
makes use of ecological
material like natural cotton in
the production of a number of
their object and thus, these
merchandise have a
completely unique and
wonderful label which can be
recognised by the customers
without problems (Jones and
Jenkins,2018).
However, the company also
provide Denim, style
collections and accessories for
ladies and men of music or
pop celebrities. The logo is
hooked up with tune and
popular culture.
PRICE Zara’s provide products
according to the trending style
with low price. Further, Zara
presents the latest apparels at
much decrease charges in all
its global shops as compared to
other competing global
manufacturers like H&M.
Therefore, Zara follows low
pricing strategy as the
company doesn’t spend
significant amount of money
on commercials and raw
materials and it follows low
H&M provide their products at
higher cost with premium
prices as compared to ZARA.
Further, they target millennials
by framing higher cost
structure with good quality
products which leads to
increase in their sales.

cost structure compared to its
competition like H&M.
PROMOTION Zara rarely spends any money
on advertising and marketing
activities and it's miles well-
known for being press
diffident. However, the owner
of Zara never involve himself
in any press interviews.
Moreover, Zara’s
advertisements are not seen on
TV. Further, Zara’s specific
selling proposition is its brief
processing time, a large form
of patterns and cheaper pricing
and it is predicated on word of
mouth merchandising and
social media rather than
luxurious advertising and
marketing system. Zara’s
social media reach is quite
superb that is it has 2.5 million
fans on Facebook and 15
million fans on Instagram.
H&M uses wide range of
marketing tools to advertise its
products like the company
used Television by providing
ads on different TV channels
at regular intervals , further,
H&M posses their own you
tube channels where they
advertise about their new
products and further, they
provide promo codes and
discounts coupons as a
promotion stunts during the
end of season sale.
PLACE Zara has widespread attain
with shops in 88 international
locations, with over 6500
retailers. Zara additionally
sells through its online shop.
Further, the shops of Zara are
H&M sells its products via its
distinctive shops placed in
predominant towns throughout
the globe that contains around
4135 shops. Further, in some
nations because of regulatory

located in classy locations and
are broad and modern in
appearance with partition
mirrors and outstanding
lightings. Further, their stores
are planned by using Zara’s
decoration group.
norms, H&M offers its
merchandise via franchising
companions and it also offers
its products via on line shops
from in which the purchaser
can select from the list of to be
had merchandise and buy them
through online system.
PROCESS Zara follows just in time
strategy to process their
products and keep huge
quantity of merchandise in
their warehouse to meet
excessive demand on time.
H&m follows customer
relationship management
strategy by training their
employees in order to produce
products to fulfil the needs and
wants customers (Reibstein,
2015).
PEOPLE Zara has employees that are
highly skilled and posses
professional designers in order
to design the products
according the ongoing trendy
fashion.
H&M have employees from
different cultural backgrounds
posses special knowledge and
are motivated to provide new
designs regarding the product
development process.
PHYSICAL EVIDENCE Zara provides high quality
products and they are made
from eco friendly materials
that do not harm the
environment. Further, stores
are highly spacious and are
located worldwide (Srihari,
Yong , Patil and Wong, 2015).
H&M store are also located
internationally with pleasant
surroundings and humble
personnels. Further, they are
expanding their stores in
different countries by proving
their existing products.

LO3
P4 Evaluate basic marketing plan
Aim: To be the leading company in fashion industry and to provide trendy clothes by using
organic material at higher quality with the lowest cost structure.
Objective:
 The objectives of Zara is to provide customer with higher choices in clothes at affordable
price and to increase customer base by 50% in 3 months.
 Another objective of Zara is to increase its sales by 30% in 3 months.
Executive summary:
This marketing plan will include the aim and objective of Zara which is an international
clothing brand and along with it will frame about the external and internal environment of the
company which will be inclusive of pestle and swot analysis. Moreover, the marketing plan will
outline about the budget and monitory evaluation of the company which will b inclusive of sales
analysis and cost beneficial (Išoraitė, 2016).
Pestle analysis of Zara:
Political: The political factors of Zara will include government tax policies, labour rate,
and new regulations that will affect the working of the company.
Economical: These factors will include changes in inflation rate, economic growth,
interest rates etc. that will impact the revenue of the company.
Social : These factors encompasses of changes of trends in the society and changing
lifestyle of people will impact the trends of the company.
Technological: These factor will highlight about the advancement in technology that will
indirectly impact the operations of the company.
Legal: These factors are inclusive of legal policies that company have to follow while
carrying out the business operations.
Environmental: These factors will include sustainable activities that are to be adopted by
the company in order to capture huge customer base.
SWOT analysis of Zara:
Strength : Zara follows efficient cost leadership strategy along with effective distribution
techniques.

Weaknesses: Zara spends less on advertising tools which will be the major weakness of
the company.
Opportunities: market penetration and utilization of online marketplace is the major
opportunity for the company.
Threats: The company can be threatened by the global competitors like H&M etc. which
deals in same products and services (Bahadir, Bharadwaj and Srivastava,2015).
Budget:
Particulars Initial
investment
1st year 2nd year
Product millennials millennials
numbre of
consumers
3000 3600
average selling
cost of product
190 225
Total revenue
(cash inflows)
570000 810000
Operating
expenses
packaging 150 200
advertisement 200 250
machinery 3000 0 1600
equipment 1000 500 0
salaries 1000 1200
Total operating
expenses (cash
outflows)
4000 1850 3250

Net cash flow -4000 568150 806750
Capital invested 200000
Opening balance
of cash
200000 196000 764150
Closing balance
of cash
196000 764150 1570900
STP (Segmentation, Targeting And Positioning) :
Segmentation: The company will company their western clothes from traditional and
clothing and further, they will introduce new products once in a week and expand their
operations keeping in mind the neds and wants of customers. Further, segmentation will include
four major components namely; demographic variables, behavioural variable, geographic
variables wherein, demographic variable the company will target highly educated and
professional people, whereas in behavioural variable the company will focus on brand
consciousness and fashion trend pursuer and in geographic parameter the company will focus on
north and south differences and provide products accordingly, further, they will also focus on
climate differences in north and south regions and then produce their according to demand.
Targeting: The company will target all the customer from medium to high class people
who want to buy trendy and glamorous products (Baker, 2016).
Positioning: Zara will provide high quality trendy products in accordance with the latest
trend at lower price.
4 P's of marketing mix :
Product: Zara produces clothes, shoes, cosmetics and accessories for men, women and
kids at higher quality with lower cost structure.
Price:Zara provide its products and services at lower prices so that it can be afforded by
everyone.
Place: Zara is present in 30 countries and is planning to expand in 1 more countries and
expanding their operations worldwide.

Promotion: Zara plans to provide its products through online marketing tools like social
media platforms and online shops.
Monitory & Evaluation :
Cost beneficial analysis
Components cost
Events $50,000
Marketing $35000
social media $5000
Labour $45000
Total $1, 40,000
Sales analysis of 3 months
Sales growth Cost
International 50.00%
National 20.00%
Regional 30.00%
Total 100.00%
CONCLUSION
This report briefly summarises about the roles and responsibilities of the marketing
function. Further, the assignment have framed about the 7P's of marketing mix of Zara and H&M
and along with it have commented on the budget plan of Zara company.

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