Marketing

Introduction
to
Marketing
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Marketing Audit.....................................................................................................................3
Market Segmentation..............................................................................................................6
Market Research.....................................................................................................................7
Buyer Behaviour.....................................................................................................................9
Recommendations................................................................................................................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12
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INTRODUCTION
Marketing is considered as activities or practices which an organization conduct in order
to promote its buying or selling of goods and services. There are several factors which include in
marketing such as advertising, merchandising and delivering of products and services to
potential or targeted customers or business (Chaffey and Ellis-Chadwick, 2019). Organization
selected for this report is Marks and Spencer, it is a public limited firm conducting its business
operation in retail industry. It is founded by Michael Marks and Thomas Spencer in year 1884
and its head office is located at London, United Kingdom. They offer wide range of food, cloths
and home décor products at worldwide level. This report include different models for
understanding marketing audit, market segment and market research. Along with this, report also
describe model for evaluating buyer behaviour as well as it will also include recommendations
on the basis of evaluation.
MAIN BODY
Marketing Audit
Marketing audit is considered as comprehensive, analysis, systematic, evaluation and
interpretation of business marketing environment that include both internal as well as external.
The purpose of conducting marketing audit is to analyse areas, related to problems and
opportunities in order to develop plan of action for enhancing company's marketing performance.
There are major six components of marketing audit i.e. environment, system, strategy,
productivity, organisation and function (Chandon, Laurent and Valette-Florence, 2016). For
conducting marketing audit properly a firm can adopt different model, in respect of Marks and
Spencer they can conduct SWOT analysis and Porter five force model, which explanation is
given below:-
SWOT Analysis
By this Marks and Spencer able to conduct marketing audit of the internal business
environment of marketplace.
Strengths Weaknesses Clear brand image: Marks and Spencer
developed itself as a high end brand
 Customers satisfaction: Sometime
potential customers of Marks and
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which offer premium products to
targeted customers. This will help them
in developing clear branding that what
customers will get at store. Private labels: At the store of Marks
and Spencer respective company sell
premium brand such as Vero Moda,
Louis Vuitton, Versace. Moreover they
also sell their own private labels such
as Per Una, Autograph, Indigo
Collection ans so on. Innovation: From more than 150 years
Marks and Spencer has been in race
primarily as they offer innovative
products (SWOT analysis of Marks &
Spencer, 2019). At respective company
innovation is synonymous as creativity
and communication. Multichannel presence: The respective
company operate their business through
different models i.e. online stores,
franchising options and brick and
mortar. They have 300 full line stores,
220 owned and 310 franchises (food
store).
Spencer exhibit low satisfaction level.
That are related to return policy and
store experience. This will result in
decrease in brand loyalty as well as
increase in brand switch.
 Supply chain scalability: It is one of
the main weakness of Marks and
Spencer that related to scalability of
supply chain. This will impact on the
delivering services or products to
customers on time.
 Inability to penetrate in foreign
market: Respective company is
operating in United Kingdom, Europe
and United State. They also opened
stores at Middle east and Asia but they
get unsuccessful in these market.
Opportunities Threats Introduce new segment: Marks and
Spencer can come up with new
segment such as ethnic and traditional.
This is so because it show a lot of
 Competition: Marks and Spencer is
operating at multinational level due to
which they face huge competition at
marketplace. Such as ZARA, Gap,
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commitment to the retailers (Cornwell
and Kwak, 2015). Adopt new technology: Marks and
Spencer can practices different pricing
strategy by adopting new technology.
This will help company in maintaining
loyalty of customers by providing great
services as well as lure new audiences.
Tommy Hilfiger, United Colors of
Benetton.
Porter Five Force Model
Through this Marks and Spencer able to do marketing audit related to analysing
competitors market or external environment. Threat of new entrants: It force determine how simply another company can enter into
the industry. If particular industry is profitable and entrance barriers is low then threat
will be high and visa versa (Dietrich, Rundle-Thiele and Kubacki, 2017). In respect of
Marks and Spencer, threat of new entrance is high because at retail sector there is
comparatively low barriers due to which new firm can easily enter or exit. Threat of substitutes: Respective force is threatening when potential audiences can easily
find substitute products in less price and of better quality. In respect of Marks and
Spencer threat of substitute is high because there are numbers of other companies who
offer similarity variety of products and services. Such as ZARA, ALDI, TESCO and
many more. Industry rivalry: This force help in analysing how competitive as well as profitable a
particular industry is. If there is high barriers then industry rivalry will be less and if
barriers is low then rivalry will be high (Fill and Turnbull, 2016). In respect of Marks and
Spencer, industry rivalry will be high because at respective industry there are various
companies offer offer similar variety of products and services. Such as GAP, TESCO,
ALDI, ZARA and so on. Bargaining power of suppliers: Strong bargaining power permit supplier to sell low
quality products or services at high prices. This will generally take place when there is
few supplier but huge number of buyers. In respect of Marks and Spenser, bargaining
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power of suppliers is high because there are very less supplier who offer premium quality
raw material which respective company use for their production process.
 Bargaining power of buyers: This force show power of buyer as if bargaining power is
high then they can demand for high quality products at low price (Fritz, Sohn and
Seegebarth, 2017). In respect of Marks and Spencer, bargaining power of buyer is high
because there is numbers of other firm who offer similarly variety of products and
services such as TESCO, GAP, ZARA and many more.
Market Segmentation
Market segmentation of considered as procedures of dividing market of potential
audience or customers into different group, segment or section based on specific characteristics.
By conducting market segmentation company able to identify their target audiences which help
them in developing products and services according to need, demand and preference. There are
different types of market segmentation such as Geographic Segmentation, Demographic
Segmentation, Firmo graphic Segmentation, Behavioural Segmentation and Psycho graphic
Segmentation (Yasmin, Tasneem and Fatema, 2015). In respect of Marks and Spencer they are
operating at international level and they offer wide variety of cloths, home décor and food
products. According to which they conduct their market segment on different basis, main two
segments of Marks and Spencer are given below:- Demographic segmentation: It is defined as market segmentation approach which is
based on several variables. Such as gender, income, age, educational qualification,
religion, socio economic status, family life cycle and many more. There are some benefits
gain by a company when they adopt respective market segmentation such as they can
access information, data and statistics easily. Along with this it is easy to categorise as
well as identify (Harker and et. al., 2015). In respect of Marks and Spencer, they conduct
their market segmentation of the basis of gender, age group and other factors, then
accordingly they develop their products and services. Such as Marks and Spencer Per
Una range is introduced in order to attract young female customers or shopper. Along
with this respective company bifurcate their offering on the basis of gender i.e. men,
women and kids as well as they also have different sections of offering such as lingeries,
beauty, home, furniture, food, flower and so on.
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 Psycho graphic segmentation: This segmentation is used for the marketing research as a
variety of market segmentation, according to which customers are divided into different
groups based on psycho graphic segmentation. This will include factors like belief,
lifestyle, interest, value, attitude, motivations, priorities and many more. By adopting this
segmentation of market an organisation able to gain numbers of benefits such as they able
to increase loyalty of customers as they thing firm is taking interest in their personal
priorities or need (Keegan, 2017). In respect of Marks and Spencer, they also conduct
market segmentation on the basis of psycho graphic segmentation according to which
they offer stylish, creative and attractive clothing option according to lifestyle of targeted
audiences. Along with this, respective company they also take care or consider interest
of their customers as that will help them in developing their products and services
accordingly in successful manner.
These are main two market segmentations of Marks and Spencer according to which they
offer wide range of clothing, food and home décor products.
Market Research
Market research is considered as systematic efforts of gathering information or data
related to target customers or market. It is considered as one of the essential division of business
strategy. It is also determined as tool which is used by a company in order to maintain
competitiveness over challenger or competitors at the marketplace (Kotler and et. al., 2017). In
order to conduct market research Marks and Spencer may adopt 7 P's as that help them in
gathering information about the market in effective as well as appropriate manner. Along with
this it will also help them in developing effective decision according to need, requirement and
preference of customers as well as market. Explanation of 7 P's in respect of Marks and Spencer
are given below:- Products: It is element of factor which a company offer to their targeted customers in
order to fulfil their need, demand and requirement. For a firm it is essential to offer
quality products as that will help in attracting customers as well as retaining for long
time. In respect of Marks and Spencer they wide range of clothing, home décor,
accessories, footwear, beauty and food products for men, women and kids. Price: It is considered as factor which is use to represent value of products or services for
money. For a company it is essential to set price of the products or services on basis of
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their quality and quantity as that help them in attracting more and more customers and
retaining them for long time (Marketing mix of Marks and Spencer, 2019). Marks and
Spencer adopt dynamic pricing policy as well as at the time of off season, festive and
season they offer products at discounted pricing. Place: This is consider as factor which show location from which customers can
purchase particular company products and services effectively. It can be at high street, e-
commerce or online shop, mail order, shopping mall and many others. In respect of
Marks and Spencer, they operate at international market including locations like Jordan,
Canada, France, Kabul, Finland, Morocco, India, China and many more. Promotion: This factor include activities related to advertising, sales, promotion,
personal selling and many more (Lovelock and Patterson, 2015). Through this a firm able
to aware potential customers about their products and services in effective as well as
successful manner. In context of Marks and Spencer they adopt various different channel
for conducting promotion such as place ads in newspaper, magazines, television, radio,
social media, billboards, hoardings and many more. Process: This will consider practices related to providing services to the customers
starting from manufacturing till customers pay for that or purchase particular product
successfully. In respect of Marks and Spencer have different process for online and store
services. In online process they consider easy layout of products or offerings for which
they develop groups according to categorise (Perreault, 2018). They also design online
application in order to conduct whole process quickly and effective. In addition to this,
store process consider factors like clear sections of foods, cafe, clothing, home décor,
furniture and many others. People: An organisation are dependent on peoples who help them in running their
business effectively so that they can attain their desire goal as well as target. This will
include employees of front line, sales, director and other members. In context of Marks
and Spencer there are approx 86000 employees are working at worldwide level which
help them in attaining their target successfully (Marketing Strategy, 2020). These peoples
plays main role in attracting new audiences as well as retaining old one.
 Physical evidence: At every industry almost every service include some physical
evidence or element which attract customers and convince them to pay for that services.
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In respect of Marks and Spencer, they develop as well as maintain attractive interior of
their store which help them in attracting customers and convincing them to pay for their
services. Along with this, respective company also have attractive and user friendly
online site which pull down customers to purchase their products.
By conducting market analysis or research through 7 P's factors i.e. product, price, place,
promotion, physical evidence, process and people Marks and Spencer able to gather proper
information related of market. Along with this, it will also help them in developing proper
decision through which they can attain their desire goal as well as target properly or successfully.
Buyer Behaviour
The most important key for a successful business is buyers behaviour. It is very difficult
to deliver products and services to market area without understanding behaviour of customers.
Solution to connect and reach to a customer and influencing their purchasing decision is to first
understand their behaviour (Séraphin and Gowreesunkar, 2017). It can be define as various
methods and processes use by customers to purchase products as well as service. Thus, in order
to enhance productivity of enterprise and to fulfil the requirements of customers, it is important
for Marks and Spenser to understand behaviours of their target customers. It basically reveals
that how customers interact with various brands. Adversing, promotions, web design, product
launches of organisation are majorly influenced by behaviour of buyers. In order to understand
behaviour of customers, it is important to consider how decisions are made and various dynamics
that surround as well as influence purchasing aspect. The process of customer buying process
consist of recognising of problems, evaluation of alternatives, information research and final
decision for purchasing (Williams, 2017). Behaviour of customers is most important as it is a
driving force behind overall purchase process of products.
Analysing behaviour of buyers help companies to enhance revenue and eliminate costs. It
is also an important factor for competitors analysis. Companies are able to discover the attributes
regarding consumer value most when it comes to comparing two brands. Thus, it is very
essential for Marks and Spenser to understand its buyers so that they could satisfy the need of
their target customers as it helps in to analyse unfilled demands as well as needs of customers. It
requires scanning conditions and trends which are operating in marketing area , lifestyles of
consumers, growing influences as well as income levels. Buyers behaviour are generally action
of individuals take in respect to use and buy products. Marketers of respective organisation must
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understand the behaviour of their buyers such as how lowering and raising the price of a product
will influence perception of buyers of a product and create a fluctuation in sales of the
organisation. Decision making process of buyers plays a vital role in understanding behaviours
of various individuals (Terech, 2018). Such decision making process are majorly influenced by
social, cultural, individual as well as psychological aspects. It consists of various steps. Cultural
behaviours of customers include a range of guidances, values, attitudes along with symbols
which are created to shape behaviour of human. Culture is basically environmentally oriented.
Buyers behaviour is also influenced by personal characteristics which are specific to each
and every individual such as personality and gender. Characteristics of individuals are usually
stable over the course of life. It impacts on how an individual is responding to the situation.
Thus, it is important for an organisation to develop some effective strategies in order to
understand different behaviours of buyers in order to increase profitability and to develop a
strong base of customers (West, Ford and Ibrahim, 2015). Marketers of Marks and Spenser are
need to understand behaviour of customers and their decision making process to buy a product so
that it could enhance their productivity.
Recommendations
By analysing all the above mentioned theories or model, there are some
recommendations which can be provided to Marks and Spencer so that they can operate their
business in more effective manner. From which some recommendations are given below:- Come up with new product range: According to this, Marks and Spencer can come up
with new products and services for their customers such as ethnics or traditional wear.
This is so because that will help them in attract more audiences who like that types of
products as well as it will also aid respective company to expand their business in
traditional country or market.
 Expand business into China Market: Marks and Spencer can expand their business at
China market with new products range. This is so because in past they not able to be
successful in respective market. So they need to design clothing according to the tradition
as well as culture of China.
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CONCLUSION
By analysing above discussed point it can be determine or summarise that, for every
company marketing is essential as it help them in understanding customers, developing products
or services accordingly, promoting offering and delivering offering effectively to targeted
customers. For developing effective marketing strategy they need to conduct numbers of
evaluations such as Marketing Audit, Market Segmentation, Market Research and Buyer
Behaviour. In order to conduct these analysis or evaluation in effective manner firm may adopt
numbers of model such as for marketing audit company can apply SWOT analysis as that help in
evaluating internal environment as well as they may also conduct Porter's five force model for
analysing competitive market. Along with this, firm also need to identify their market segment
because it is of different types such as Geographic Segmentation, Demographic Segmentation,
Firmo graphic Segmentation, Behavioural Segmentation and Psycho graphic Segmentation.
Company management also need to conduct market research for that they conduct 7 P's because
that will help them in gathering information or data. They also need to conduct evaluation of
buyers behaviour as that will help them in conducting effective decision according to situation as
well as interest of customers.
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REFRENCES
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Springer Singapore:.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Fritz, W., Sohn, S. and Seegebarth, B., 2017. Broadening the perspective on mobile marketing:
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Harker, M. and et. al., 2015. Marketing: An Introduction.
Keegan, W. J., 2017. Global marketing management. Pearson India.
Kotler, P. and et. al., 2017. Marketing for hospitality and tourism.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
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destinations with a negative image?. Worldwide Hospitality and Tourism Themes.
Terech, A., 2018. An Introduction to Marketing and Branding. Generations. 42(1). pp.45-49.
West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Williams, C. B., 2017. Introduction: Social media, political marketing and the 2016 US election.
Yasmin, A., Tasneem, S. and Fatema, K., 2015. Effectiveness of digital marketing in the
challenging age: An empirical study. International Journal of Management Science and
Business Administration. 1(5). pp.69-80.
Online
Marketing mix of Marks and Spencer. 2019. [Online]. Available
through:<https://www.marketing91.com/marketing-mix-of-marks-and-spencer/>.
Marketing Strategy. 2020. [Online]. Available
through:<https://prezi.com/1pyhwpe5q2po/marketing-strategy/>.
SWOT analysis of Marks & Spencer. 2019. [Online]. Available
through:<https://www.marketing91.com/swot-analysis-of-marks-spencer/>.
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