Analyzing STP Strategy, Marketing Mix, and Relationship Marketing Tactics of Zara

This report analyzes Zara's STP strategy, marketing mix, and relationship marketing tactics. It discusses how segmentation, targeting, and positioning are currently applied by Zara. It examines the 4Ps of Zara's marketing mix and assesses their relationship marketing strategy with an emphasis on their current tactics. Recommendations are provided to improve Zara's marketing strategy.

Business ventures

Table of Contents
INTRODUCTION .....................................................................................................................3
MAIN BODY ............................................................................................................................3
Analyse their STP strategy, providing and insight into how segmentation, targeting and
positioning are currently applied by your chosen organisation.............................................3
Examine their marketing mix, focusing on the 4Ps that your chosen organisation is
currently applying..................................................................................................................5
Assess their relationship marketing strategy with an emphasis on their current tactics. ......6
Provide recommendations on how your chosen organisation can improve its marketing
strategy. .................................................................................................................................7
CONCLUSION .........................................................................................................................8
REFERENCES ..........................................................................................................................9
Books and journals ...............................................................................................................9

INTRODUCTION
Marketing management can be defined as a function of manager within the
organisation which is related to managing the marketing activity and performing these
activities in order to establish relationship between customer and market (Kotler, Keller, Ang,
Tan, and Leong, 2018). Marketing management is effective strategy which can be used by
Organisation in order to achieve the objective and perform the function in an appropriate
manner. In context of the current report the chosen organisation is Zara. Zara is operating
with fashion industry where it provides number of clothes and accessory under this industry.
Zara is operating with adequate amount of stores where organisation is also working at global
level. In context of the current report there is discussion about STP approach which is used
by Organisation in order to identify the market. There is also a discussion about the
marketing mix where the main focus is paid on the four P's of marketing according to the
current situation of Zara. Along with this, there is also a discussion about the relationship
between marketing strategies and current tactics which are followed by ZARA as well as
some recommendations to improve its marketing strategy.
MAIN BODY
Analyse their STP strategy, providing and insight into how segmentation, targeting and
positioning are currently applied by your chosen organisation.
STP approach
STP approach can be defined as a systematic language is followed by Organisation in
order to implement its strategies within the market in relation to marketing. There are three
types of main strategies which are followed by organisation which include segmentation,
targeting and positioning of products and services. Zara is also using SDP approach in order
to achieve its marketing objective as well as dividing the market according to the needs and
requirement of organisation. In current business environment, Zara is operating with
appropriate system where it is providing functions to achieve its objectives in fashion
industry (Kotler, 2003). Under this, organisation is performing various functions which are
discussed below:
Segmentation: segmentation can be defined as a function which is performed by Zara
in order to meet its objective and achieve its target in an appropriate manner. Segmentation
can be defined as a process within organisation which is related to dividing the market
according to the needs and requirement of organisation into some small and valuable
segments. Under this process organisation used to focus on commercial effectiveness and
selecting the valuable segments so that business can develop its marketing mix and position
its product in an appropriate segment. In context of Zara, it is operating in business
environment of UK as well as global world where organisation use appropriate marketing
strategy and personal in order to implement it within the market. in relation to the current
time organisation is providing its segments in different approaches which are discussed as:

 Demographic: demographic segmentation is that kind of segmentation under which
Zara use age gender income education and various other demographic sections to
target and segment the customer in an appropriate way. Under this strategy, Zara can
use to target the age group of 8 to 60 where organisation used to divide the according
to appropriate segment. organisation also used to target the customer according to
their income where for divide its market according to middle lower and higher class
income group where it provide low level products luxury goods as well as other kind
of goods to segment customer accordingly.
 Psychographic: psychographic segmentation refers to that kind of segmentation
which is related to performing the function of organisation and including this function
in an appropriate manner. That is the segmentation organisation used to involve
lifestyle attitude choice risk aviation personality leadership various other factors
which are directly related to performance and help in segmenting the market
accordingly. In context of Zara, organisation used to divide the market on personality
and emotion basis where it gather data and help psychographic profiles to identify the
customer. In order to collect the data organisation use interviews, surveys and
customer data. (Doyle, and Stern, 2006). All these are useful to Organisation in
improving its function as well as achieving its objective according to the needs and
requirement.
Organisation uses both of this segmentation in order to segment the market according
to the needs and requirements as well as perform the function in an appropriate way. This is
helpful to Zara in achieving its objective and performing the function according to the needs
and requirements.
Targeting: Targeting is 2nd function under this approach which is related to
performing appropriate system and use this system in order to achieve the objectives. At this
system organisation needs to evaluate various potential and commercial attractiveness for the
each and every segment to target the customer and achieve its objectives in an appropriate
manner. In context of Zara, organisation is also using appropriate system which helps in
managing the targets as well as achieving its objective by targeting the customer within these
segments. There are five factors which are considered as an important part of targeting which
are followed by Zara to achieve the objectives and performance function in an appropriate
manner.
 Criteria size: the market must be large enough to justify the segmenting system is the
first criteria and the target marketing system. In order to target the segmented
customers organisation use appropriate system where organisation identify the criteria
and size of segment and implement the product and targeting strategy in an
appropriate way. Targeted area is a small then organisation will use small marketing
where if organisation uses a larger system that it will create a situation of improper
use of resources.
 Difference also act as a factor which is considered by the organisation by using the
targeting function where it used to measure differences which must be exist between
different segments so that organisation can easily identify this functions and
implement its product according to the differences between different segments. Zara
is performing its function at global level where it is required by organisation to use
them and perform the function in an appropriate way. This is impactful for firm to
manage this function and use them according to the needs and requirement.

Positioning: Positioning is the last step in the process of this approach where it
includes positioning of the product according to the needs and requirement of the
organisation as well as benefits avail under the step of targeting. Under this system
organisation has to position its product according to the needs and requirement as well as
utilising the resources in an appropriate way.(Doyle, and Stern, 2006). In context of Zara
organisation is using functional positioning system where it has to identify the feature and
sets which expected according to the user experience. Under this organisation is focusing on
the aspect and the value proposition that speak to meeting and fulfilling the customer needs
and requirements. This is helpful to this error in implementing its current product as well as
achieves better results of this approach.
From the above mentioned information it can be evaluated the desire is using an
appropriate system to identify its current resources and implement its function according to
the needs and requirements. This is helpful to the organisation achieve its results and
performing the function according to the organisational structure
Examine their marketing mix, focusing on the 4Ps that your chosen organisation is currently
applying.
Marketing mix can be defined as system of marketing which include different
principles which has to be followed by Organisation in order to manage the marketing
activity and achieve its objectives in an appropriate manner.. (Hollensen, 2019). here are a
number of functions which has to perform by Organisation in order to achieve its marketing
objective. These functions are related to management of marketing activities and using these
activities according to the needs and requirement. There are number of marketing principles
which are followed by Zara. All these marketing principles are discussed below:
Zara product strategy: Product strategy and marketing mix can be defined as
functions which are related to the products and services offered by organisation to the
customer in order to satisfy the needs and requirements. (Homburg, and Krohmer,
2003.)Zara is one of the leading fashion brand within the world where it is offer offering
number of products range to the general individual which include men's women's and
children's wear. In the current business environment organisation is providing products like
jeans trouser tops skirts and t-shirts shoes bags and many other. All these are provided under
wide range from luxury to normal. Zara is using an innovative function with is helpful to the
organisation in achieving its objective as well as performing the function according to needs
and requirements. Zara is a global performing organisation where innovation is helpful to
managing the effective product line.
Zara pricing strategy: Pricing strategy of pricing mix can be define as a part of
marketing program which is related to providing information about the pricing policy which
is adopted by the organisation for selling the products and services within market. In context
of the business environment using appropriate pricing policy where it provide different price
range to the customer in order to provide them satisfaction regarding prices of organisation.
(Doyle, and Stern, 2006). Zara used to offer products from lower range to luxury range. This
is helpful to the organisation in attracting all income group individuals as well as analysing

the situation within the market and taking decisions according to it. This is also helpful
advertising function as well as identifying the current requirements of organisation so that it
can perform according to these organisational requirements.
Zara place and distribution strategy: These distribution strategies are important
part of marketing principles which is helpful to the organisation in managing an appropriate
distribution channel and perform its function according to it. In context of Zara it is
performing its function at appropriate level which help the organisation in managing this
function in achieving its business objectives. It is analysed that has reached within the market
where it is operating its store in 88 countries with over 6,500 outlets. Zara is a global
performing organisation where organisation use appropriate distribution strategy which
helped company in integrating its function at global level. Dismiss supply chain helps in
achieving a competitive advantage over its competitors and performing its business in a
unique model to bring new products and fashion to the market. This is also helpful in
achieving objectives and managing the headquarters according to the needs and requirements
so that it can become a hub of manufacturing and using appropriate functions.
Zara promotional mix: Promotional mix is an important part of marketing principles
which has to be developed by the organisation in order to promoting the products and
services within the market and selling them to the customer in an appropriate way. Product
mix is a useful system to the organisation which helps in improving its function and
achieving the objectives in accordance with the current business situation. In context of Zara
organisation logo for advertising. Evil owner of organisation doesn't used to give press
interviews like to its competitors. Organisation is using improper promotional mix where
there is no such kind of flashy campaigns. Organisation used to sell the products and services
within the market on the basis of it Goodwill where the social media reach of organisation is
also low. Zara is also not using to put the logo on its product which makes it unique in
promotional mix.
These are the marketing mix which is followed by Zara in order to achieve its
objective. It is essential for organisations evaluate the current market position and perform
the function in an appropriate manner. This is useful to Zara in achieving its objective as well
as managing the function according to the objectives so that it can easily market the product.
This will also manage appropriate function and will promote the organisational function
Assess their relationship marketing strategy with an emphasis on their current tactics.
Relationship marketing can be defined as in system which is related to identifying
attracting maintaining and improving the relationship with customers. (Hutt, and Speh,
2003).Good text of Zara organisation is using appropriate concept of relationship marketing
which is helpful to the firm in managing the functions in achieving objectives in the current
time. In context of Zara there are following markets which are used by the organisation in
order to meet the requirement of customer relationships. Some of these are discussed below.
Internal market: This include that kind of market under the consumer demand which
is owned by employees and needed in order to perform the functions of internal organisation

to maintain the customer relationships. This function is evidence that employee can co-
operate and work in a way that their lives the company vision and mission.
Influence market: Market information is important where it involve the government
bodies regulatory and various other capital ventures. Have direct influence in the
organisational system to formulate relationship with the customer where they provide
potential to the organisation in order to achieve the objectives in certain way.
Supplier market: Supplier market is also plays which are helpful in establishing
customer relationship where organisation used to manage its function with the suppliers
which provide assistance to the organisation in identifying potential customers and using
them according to the requirement of organisational profitability.
In order to meet the requirements of customer relationship, Zara use appropriate
system where it identify the factors which impact the organisation and used to manage them
according to the current business environment so that it can take effective decision and
achieve its objectives with current time. ((Keegan, 2017).Marketing is important function for
organisation as it is helpful to Zara in analysing the current situation as well as maintaining
relations with the customer so that it can follow its current objectives. Manager within Zara is
ensuring an appropriate function so that it can easily achieve the objectives by combining
them with the organisational performance and using this function according to the needs and
requirements. This is also useful to the firm in achieving its objective and performing the
function. There are number of objectives which are involved in the functioning and will
benefit to the firm. Customer relationship management will also use various systems which
help in analysing the requirements and performing the function in an appropriate way.
Provide recommendations on how your chosen organisation can improve its marketing
strategy.
It can be analysed from the above mentioned information that Zara is performing its function
at global level where it is using the marketing strategies in order to achieve the objectives and
performing the function of effective marketing management. In accordance with this, there
are some functions which has to be performed the organisation and a related to achieving its
objective. There are some recommendations which can be followed in order to improve the
business strategy of Zara.
 The first recommendation to Zara is that organisation is performing its function at
global level where it is needed to use the promotional activities so that it can easily
improve its function as well as attract number of customers.
 One more recommendation to improve the marketing strategy of organisation is
related to using appropriate tools of digital media. This is because digital marketing
help the organisation in covering a larger area as well as performing its function
according to the requirements.
 It is also recommended to Zara that there is continuous changes within the trends of
fashion industry which can impact on organisational performance as well as lead to
decrease the market ratio of organisation. In order to achieve the objectives and

implementation of battery strategies organisation should follow appropriate trends and
analyse these trends according to firm for changes in business strategy.
CONCLUSION
It can be concluded from that can be concluded from the above mention information
there are various function which are related to organisation and are helpful to the farmer
achieving its objectives. These are useful to the form in managing the functions as well as
performing appropriate marketing strategies so that it can achieve the objectives and use them
according to the needs and requirement of organisation. It is also analysed that customer
relationship is important part which is helpful to the organisation in analysing the current
market and maintaining effective relationships to increase the objectives and performing the
function in an appropriate way.

REFERENCES
Books and journals
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing
management: an Asian perspective. Pearson.
Kotler, P., 2003. A framework for marketing management. Pearson Education India.
Doyle, P. and Stern, P., 2006. Marketing management and strategy. Pearson Education.
Homburg, C. and Krohmer, H., 2003. Marketingmanagement. Wiesbaden: Gabler.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Hutt, M.D. and Speh, T.W., 2003. & Edition: Business Marketing Management. South-
Western Publishing Company.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Meffert, H. and Bolz, J., 1994. Internationales Marketing-Management. Stuttgart, Berlin,
Köln: Kohlhammer.
Gilbert, D., 1999. Retail marketing management. Financial Times Management.
Kotler, P., 2009. Marketing management: A south Asian perspective. Pearson Education
India.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Nelson Education.