Marketing Management: SWOT, STP, Marketing Mix and Recommendations for Marks and Spencer
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This report provides an analysis of marketing management, SWOT analysis, STP matrix, marketing mix and recommendations for Marks and Spencer. It includes segmentation, targeting, and positioning strategies, as well as product, price, place, and promotion recommendations.
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Table of Contents INTRODUCTION.............................................................................................................................3 SWOT analysis of the organisation...............................................................................................3 STP analysis of the organisation...................................................................................................6 Marketing mix of the organisation................................................................................................7 Recommendation to the organisation............................................................................................9 CONCLUSION...............................................................................................................................10 REFERENCES.................................................................................................................................12
INTRODUCTION Marketing management is an art and science to choose the target market and growing customers thorough the creating, delivering and the communicating superior customer value. It is a process of the things done in an effective and organised manner. Marketing is a business function which control composition and level of demand within the market. It mainly deals with the creating and maintaining demands for the services and goods of the organisation. Main aim if the marketing management is to operate the marketing activities efficiently. It make the process of exchange of good and services very smoothly and efficiently transfer the ownership of goods group seller to the buyer. It is the way of finding opportunities that are profitable and create these opportunities to satisfy the customers. Marketing management helps to attract the new customers and enhance sale of a company by different strategies to make sure that it attract maximum customers and increase the profit ability. It is consumer oriented. It comprise of functions of the planning, organising, directing coordinating and the controlling. The marketing management is helps to identify opportunities in the market and comes up with an appropriate strategies to explore these opportunities profitably. The organisation chose in this report isMarks and Spencer,established in 1884 and its headquarter is situated in London, UK. It is a British leading retailer company that provide the service of clothing, great value food and home ware products to their customers.This report will include about marketing management, SWOT analysis, STP matrix, marketing mix and recommendation of these issues(Barboza Sánchez and Urtecho Paz, 2021). SWOT analysis of the organisation It is an essential tool for a business to analysis and understand health of an organisation as it allows the decision makers to determine where the organisation is stand and where they need an improvement. It include four factors which are given below: Strength-These are those things which the organisation perform well. It describe that what a business excels at and what thing separate it from the competition in the market such as a strong brand position, loyal customer base, unique technology and other etc (Cassidy, Grimsey and Blackley, 2020).
Weakness-These are those factors which stop the organisation to perform their optimum level. These are those area, where a business require to improve to compete in the market. It include a weak brand, high level of debt, higher than average turnover etc. Opportunity-Thesearethefavourableexternalfactorswhichgiveacompetitive advantage to the organisation such as increasing market shares and sales, export a company's product into a new market and other etc. Threats-It refers to those factors which have the potential of to harm the organisations. It include threats such as drought into a wheat producing company, destroy the crop yield, increasing competition etc( Cassidy, Grimsey and Blackley, 2020). Importance of SWOT analysis. SWOT analysis helps to an organisation to get visibility about their current status and make enable them to measure and understand the overall business performance. It allows a business to analyse their strength that in turn can assist them a better penetrate in the market in order to meet their business objectives. It helps a business to get visibility about their weaknesses and the potential areas of an improvement. These informations helps them to plan future roadblocks and ensure a long term growth of the business( Chu, 2017). By leveraging SWOT analysis, an organisation can make the strategic plan to meet their desired objectives and also adopt the changing market conditions. It is helpful for a business to understand and a better identify the external and internal factors with their positive and negative effects on an organisation. This information helps the business to take appropriate actions in the dynamic market for maintaining momentum. StrengthWeakness
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Marks and Spencer is one of the most popularandpowerfulbrandinthe market with a top of mind recall. It has a great workforce globally as it hire well skilled and trained employees. They have over approximately 80000 workerswithintheworld.These employeesdesigntheproductsina quality and efficient manner. It offer a large variety of the products to theircustomers.Itmadeagood relationship with the local farmers to bringthefreshandgoodquality productstoservesthemtotheir customers(PURNOMO, 2021) M &S has to face a strong competition with other popular retail brand in the market, due to this it has only limited market share. It heavily relies on the manual operation that is very time consuming and costly. Itdoesnotinvestso muchinlatest technology due to which it has to face many difficulties as compare to their rivals. In general public, there is a perception that M&S do not offer the clothes for today'syoungerandteenagers.They provide services to only older peoples. Due to this, the customers turn towards other retailer.(Sánchez Ramos, 2020). OpportunitiesThreats M&Shastheopportunitytoexpand their brand in to the India and China that helpthemtoenhanceincreasetheir loyal customer base. Byusinglatesttechnologyande- commerce like eBay or Amazon, it can give a tough competition to their rivals. It will help them to improve their brand quality and save the manufacturing cost (Solanki,Daniewiczand Newman ,2020). Itcanfollowtheprocessofmarket segmentation to divide their customers Marks and Spencer is a global retailer, due to this they have to follow rules and regulationofothercountriesand exposed to the different political facts. Misuse of their brand for fake limitation productscancreateabighurdlefor M&S.Sotheyneedtoprotecttheir brandsfromillegaluses(Toscano Rafael, 2020). Their poor supply chain is a threat for theM&S. It create the situation of no- availabilityoftheproductsdueto which, it continuously declining their
in a group on similar basis. It will lead to a large number of customers base and also generate revenue for the company. salesasitcouldnotmeetthe requirement of customer's demand for clothing and food items. STP analysis of the organisation TheSTP (Segmentation,Targetingand Positioning)modelisthefamiliarstrategic approach in the modern marketing. This model is mostly applied by the organisation in practice for an efficient streamlined communication practice. It focuses on the commercial effectiveness, choosing the valuable segment for any business and develop a marketing mix and the product positioning plan of action for each segment. STP model is very useful at the time of creating the marketing communications plans(Mogollón Terrones and Suarez Castillo, 2020).It helps to the marketer or a business to prioritize the proposition and develop or deliver personalizedthe relevant messages to different audience. In this, the STP model is applied on theMarks and Spencer which are given below: Segmentation-In this method, an organisation divide the extensive market opportunity in more detailed segments through analytics or research. In this, the customers are divide on their similarities. The segment is done on the basis ofDemographic:-It involve the age, gender, marital status, income, education and other etc.Psycho graphic:-It include the personality, values, attitude, lifestyle and interest.Geographic:-It include theregions, country,neighbourhoods and citiesBehavioural:-Nature of the purchase, usage level, brand loyalty, use of distribution channels and other etc.Marks and Spencer segment the market on the basis of demographic as it divide customers based on the Cost conscious group. It segment customers according to their age, social class, income and occupation. They segment the market on the basis of few components such as which have good income and high profession as well according their occupation(Coetzee and Middelmann, 2020). Targeting-In this, a business select the right segments for targeting and plan the related marketing activities. Main objective of the targeting is to research the every segment's business opportunities with that aligns which is related to their goals. It target market on the basis ofDifference-The measurable difference should exist between the segments. Criteria size-Market size must be large that is enough to justify the segmentation.
Accessible-Every segments should be accessible and able to receive the company's marketing message.Marks and Spencer target their customer on the basis of upper class and the upper middle class. It target customers with 30 plus age group and high income with executive occupation of targeted audience. They provide service and manufacture product to consider the targeted audience. They made clothe for the middle age peoples and fulfiltheir demands. They focuses on those customers which contain large area and through what the company can earn more profit margin( Cruzado Zafra, 2020). Positioning-It is the last element of STP model. It is about to create products and marketing strategies to fit a segment that is created by the business. It is very essential a it help the organisation to know position offering to a chosen segment in order to get success with their marketing strategy. To figure out the company's positioning they can use two tools one is USP( unique selling point) and other is Positioning map.Marks and Spencer positioning itself as high quality within reach. It has positioned itself as a premium brand into the supermarket industry. It provide a good quality goods and services as compare to the other competitors(Dhande and Khandare, 2021). Marketing mix of the organisation In this, there are 4 Ps of marketing that are key factors which are involved in the marketing of a product and services. These factors are constrained by the external or internal factors in overall business environment. These four element are undertaken by an organisation to identifies some key factors for their organisation including a customer want from the company, how their services fails or meet those demands,, how their services and products are perceived the global area and how they interact with its customers. These 4P's are applied on theMarks and Spencer which are given below: Product-It is a good or services that is offered by a company to its customers. The product fulfil l demands of an existing customer. It should be compelling to satisfy customer's demand and create new demands. A marketer should understand the life cycle of the products and need to plan to deal with the product at every stage of their life cycle. Marks and Spencer offers fair trade products and eco- friendly goods to their customers. They diversified their product on the basis of women, men, kids, beauty products, furniture, food and home ware products. M&S provide good quality products and they
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cater different types of consumers which is very helpful for them(Giacomarra and et. al 2021). Price-It is that cost which is paid by the customers for a product. A business should link the real product's price and the perceived value. They must consider the supply cost, competitor's price and seasonal discounts. Often, a business raise their product's price to give it the appearance of being luxury. A marketer need to determine the cost and discounts appropriately. Marks and Spencer adopt value for money pricing policy as it diversify their product's range and good quality of products. It is a premium retail supermarket as their many products are priced between the range of medium to high. M&S has adopted the dynamic pricing policy and offers discount during off seasons, seasonal time to their customers(Hàn, and Hương, 2020). Place-It is related to the place in which an organisation decide that where it should sell their products and how to deliver a product within the market. It refers to the placing of a product in the certain stores and placement of the products on a particular store's display The motive of a business is always to get the products in front of they customers that are most likely to purchase them. Different types of products also partially dictates that how much a business can charge for it. Marks and Spencer spread their presence in the global market including Finland, Morocco, Ireland, Kabul, France, Spain,Qatar and other etc. it has around 1000 stores across the 40 countries. It also launched their online shopping store and provide the facility of home delivery to their customers(Jankowski, 2021.Khaba and Bhar, 2017). Promotion-Itincludethepromotionof productthoroughtheadvertising,PR and promotional strategy. Main aim of the product's promotion is to reveal the customers that why they should buy it and why they should pay for it. The marketers tend to tie placement elements and promotion together in order to reach their target audience. This strategy include the online and offline methods.Marks and Spencer does several sales promotion with the purpose of increasing sales as it believe in full on the marketing policy with each and every possible tool. They adopted both below the line and above the line marketing strategies to make their presence felt. In this digital age the promotion and place factors are as much online as they are offline. Their ads are placed in newspaper, television, radio and other etc( KURNIA, 2021).
Recommendation to the organisation On the basis of above issue there some recommendation in context ofMarks and Spencer to improve their strategies and taking competitive advantages. It M&S should expand their business in other countries with reflecting the original quality and price of their products. They can also introduce a new market segments that will offer them ore profit with increased customer base. They need to improve their franchising in the international market to capture more market share in the other countries. It is recommended for them to focus on customer's choice or demand rather than focusing on being product oriented(Kusuma, Nurdyansyah, and Fahyuni, 2020). M&S is a old organisation and the younger are not ware about it. For this, they should put hoardings in streets to attract younger customers. It should target the younger generation's customers during their global expansion. Marks and Spencer should go for style rather than the fashion because fashion comes and goes but the true style always lasts. In order to become competitive, it is essential for the M&S to change their strategies . It needs to develop core competencies that helps them to fight the competition globally. It require to undertake new digital and latest technical opportunities to survive in the market and compete with their rivals(LIand ZHONG, 2020). When it develop their market then they should contact with more supplier and work with them to run the supply chain effectively. They should consider the purchasing supplies from the overseas to save their cost as as to it provide customer product at less price. M&S must avoid temptation for getting dragged down on the price and make sure that it stands out on a quality standard. By this, they can shown that what they achieved with quality and stylish products. So, they should focus on quality not the price. Marks and Spencer does not invest so much in technology, due to this it remain behind from their competitors.It should invest in latest innovative technologyto enhance productive of products with maintaining quality. They can develop their websites as maximum peoples can visit there and get information about their product and services. This strategy will minimize their cost and save their valuable time. It should focus on the growth of their online stores because e- commerce retailing is future of shopping as customers are getting busy in online shopping to avoid the crowed places.
Marks and Spencer should obtain the customers feedbacks and opinions to keep up with current fashion trends in clothings line alsoresearch in food and the home appliance sectors. It will help them to get information that what the customer wants and what the company needs to improve(Mishra, 2020). To sustain their strategics sustain for a long term, they should examine their core competences that include the inhabitability and value to customers as the consumers so not get the value for money as the rivals are offering products at cheaper prices. CONCLUSION From the above report it is concluded that, marketing managementis very essential top attract more customers with high profit margin. It include all those activities which are helpful for a business organisation to grow their business. In this report, theMarks and Spencer is chosen to applying all the strategies.The SWOT analysis is very essential for a business to identifies its strength to minimize their weakness to reduce their lacking points. It also helps to determine opportunities that the business can uses for their growth and eliminate threats that impact their functions adversely.The another tool is STP analysis as it make enable the organisation to segment their customers on the basis of their personality, age, income etc. they can target tehir chosen market effectively that will be profitable to them and easy to fulfil their demands. It positioning M&S as premium brand. To operate a business successfully marketing mix is very essential as it define the company's product, price, channel of distribution and channel of communication to reach the target audience. After determine all these issues, the recommendation is given to the respective company to overcome these issues by adopting new strategies and change in their functioning method. So, it is very essential for a business organisation to adopt all these approaches in order to run their business effectively and efficiently.
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Sánchez Ramos, B.F., 2020. El marketing mix y las ventas en la empresa Thais Corporation SAC, Lima, 2020. Solanki, K., Daniewicz, S.R. and Newman Jr, J.C., 2020. Finite element analysis of plasticity- induced fatigue crack closure: an overview.Engineering Fracture Mechanics. 71(2). pp.149-171. Toscano Rafael, N.Y., 2020. Marketing mix y posicionamiento de la marca Reynaldo Los Olivos, Lima, 2020.