Marketing Strategy of Marks & Spencer: STP Analysis, Marketing Mix, and Relationship Marketing

This report analyzes the marketing strategy of Marks & Spencer, a British multinational retailer. It includes an STP analysis, examining the segmentation, targeting, and positioning strategies used by the company. The report also explores the marketing mix of Marks & Spencer, focusing on product, price, place, and promotion. Additionally, it assesses the relationship marketing strategy employed by Marks & Spencer to enhance customer loyalty and engagement. Recommendations for improving the marketing strategy are provided.

Marketing Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
STP analysis of Marks & Spencer..............................................................................................3
Marketing mix of Marks & Spencer...........................................................................................5
Assessment of relationship marketing strategy used by Marks and Spencer..............................7
Recommendations on improvement in marketing strategy.........................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Marketing strategy is defined as a long term approach and can be used by businesses
which is associated with understanding needs and demands of customers. This approach is
majorly used in order to attain competitive edge within marketplace and to prepare an overall
game plan which can be followed throughout the procedure of marketing (Armstrong and et. al.,
2018). Marketing strategy is related with creation of value proposition in which various
initiatives are rolled out which are helping the organisation in amplifying their brand image in
the market. This report is prepared order to understand concepts of marketing strategy in the
background of Marks & Spencer. Marks & Spencer is a British multinational retailer
headquartered in London, UK. The company is dealing in fashionable clothing, home décor and
food products. Marks & Spencer is having a vast market size in which they are using prominent
marketing strategy for retaining their customers. This report is consisting of STP analysis in the
context of Marks & Spencer and marketing mix. In the last part of report various suggestions has
been given by which marketing strategy can be improved.
MAIN BODY
STP analysis of Marks & Spencer
STP analysis is acronym of segmentation, targetting and positioning, this is a strategic
approach of modern marketing in which various models and practices are applied in order to
understand inclination of customers and to prioritise proposition by which relevant messages can
be delivered to customers. This is an audience based approach in which tactical decision are
being taken by businesses in order to define their target audience and ways in which the same
can be retained. In the context of Marks & Spencer STP analysis is used by them in order to deal
with behaviour of customer and to cop up with external marketing factors.
In UK there are huge retailer existed which are rivals for Marks & Spencer such as
ZARA, H&M and many more. These are external factors for Marks & Spencer and the company
is managing this scenario in a very systematic way so as to build prominent public relation.
Marks & Spencer is trying to reinvent their brand in such a manner that long term growth can be
inhaled by them and manufacturing capacity can be increased (Morris, Beresford and Hirst,
2018). For this concern STP analysis is being performed by them in order to stay adhered to their

objectives and obtain competitive advantage. In this respect, STP analysis for Marks & Spencer
is shown as under:
Segmentation
Segmentation is defined as the process in which overall market is being divided into
smaller parts on the basis of heterogeneous characteristic (Bae and Zamrudi, 201)(. This analysis
is helpful for a business to decide their focus area in which they can pitch their potential
customers and understand their needs and demands in optimal manner and the same can be
fulfilled by modifying business offerings. Segmentation is of four types such as Demographic,
geographic, psycho-graphic and behavioural.
Demographic segmentation: Under this whole population is being divided on the basis
of age, gender, income, eduction and other factors. In the context of Marks & Spencer the
company is targetting over age element in order to capture higher customers. On the other hand
income element is also undertaken by Marks & Spencer as pricing strategy used by Marks &
Spencer is premium so accordingly segmentation is performed by them.
Geographic segmentation: This segmentation is based on country, region, city or any
other geographic area. When a business is willing to expand their business then this
segmentation is undertaken by them in order to select their preferred market and unleash the
same. In context of Marks & Spencer the company is a multinational organisation which is
existed in each and every corner of the world so in this aspect Marks & Spencer is trying to
segment their market on the basis of city.
Psycho-graphic segmentation: This type of segmentation is based on values and
lifestyle. As Marks & Spencer is a premium brand which is wholly dependent on lifestyle of
people so in this case the company is focused on encouraging values and lifestyle in such a way
that high inclination of customer can be seen over their brand which enable them to make
positive decision over buying (Perreault, 2018).
Behavioural segmentation: This is based on behavioural traits of population such as
taste, quality, fashion and many other factors. In this context Marks & Spencer is focused on
quality products and higher durability in their products. On the other hand market identity of
Marks & Spencer is known as highly fashionable brand which enable them to attain prominence
over varied segment of overall market.
Targetting

Targetting is defined as breaking whole population into smaller segment so that whole
focus of marketing strategies can be emphasised on that particular audience. By this any
deviation can be avoided and customer can be concentrated in effective manner. In the context of
Marks & Spencer targetting is significant to them in order to directly communicate with their
potential customer and to maximise effectiveness of proposed marketing plans. Similarly with
the help of Marks & Spencer is intensifying brand loyalty of their existing customer and this
manner they are moving ahead with their existing rivals. In the current time Marks & Spencer is
using targetting strategies in ethical manner which enable them to make distinct identity along
with high market prominence (Boudet and et. al., 2020).
Positioning
Positioning is defined as the place at which a particular brand has occupied in the minds
of customers. This is known as the manner at which product is being differentiated from their
competitors. Positioning is an essential aspect which decides succession of a business and
provide them a distinct identity in respect of existing competitors. In the context of Marks &
Spencer is reinforcing their position as a brand which provides quality products along with
ethical practices. On the other hand in order to respond to needs and demands of customers
Marks & Spencer is focused over determining changing needs of their customer through which
they have attained prominent position in the minds of all age grouped people.
Marketing mix of Marks & Spencer
Marketing mix is defined as the model which revolves around four major aspects of an
organisation called product, price, place, promotion (Roberts and et. al., 2016). Marketing mix is
defined as a set of tools in which marketing objectives are required to be attained by businesses
within target market. In context of Marks & Spencer, their marketing mix is elaborated as under:
Product: Marks & Spencer is dealing in trendy women's wear, packaged food items, highly
fashionable accessories and so on. On the other hand, company is associated with re-shoring in
order to meet demands of their customers in appropriate manner. Marks & Spencer is known for
high quality and fashionable clothing in which almost all sector of cloths are included. The
company is delivering high quality and reliability products to their customer. The major focus of
Marks & Spencer is to manage consistency in their products which enable them to capture more
customer and sustainability as well within marketplace.

Price: Marks & Spencer is premium brand and the company is focused over using premium
pricing in order to emphasis over a particular segment of people. Marks & Spencer is providing
high quality clothing to their customer and in lieu of this prices charged by them seems to be
reasonable. On the other hand as the brand is dealing in upper class of customers they are
emphasised on continuously enhance quality and market prominence. In order to tackle with
their rivals, Marks & Spencer is using competitive prices which gives them additional edge over
rival and enable the company to deal with market conditions in appropriate manner.
Place: Marks & Spencer is an established chain which was founded in 1884. Marks & Spencer is
running more than 959 stores across UK and 615 stores are exclusively selling food items. Over
the world Marks & Spencer is having their operations at about 1463 locations. On the other hand
Marks & Spencer is having a very strong online presence in which they have started varied
collaborations with online retailers such as Amazon and many more. Besides this Marks &
Spencer is having their own website which enable their customers to place order in a very easy
manner (Govindan and et. al., 2019).
Promotion: Promotion is defined as the channels through which efforts can be initiated in order
to enhance sales. Marks & Spencer is having eminent position at global periphery which provide
separate edge to the company in order to deal with faced problems. Four methods are used by
Marks & Spencer in the process of promotion:
Advertising: Marks & Spencer is using refreshed advertising campaign for every season
and this is impacting overall sales in positive manner. Marks & Spencer have initiated various
celebrity endorsement which lead them to grab attention of large population.
Public relations: Under this aspect Marks & Spencer is trying to enhance their public
relationships and for this they are continuously taking feedbacks from their customer which is
helping the organisation to finding out their loop areas and areas for further development.
Besides this as Marks & Spencer is using ethical practices within business process, this made
them to retain their customers and make effective public relations.
Direct and online marketing: Marks & Spencer is having prominent position at social
media as the company is focused over using emerging trends of promotion such as YouTube,
Facebook and many more.

Sales promotion: This tool is being used by Marks & Spencer in prominent manner,
under this discounts are given to customer in order to attract them to make purchase. For
example: within food sector Marks & Spencer have provided an offer to get free takeaways.
Assessment of relationship marketing strategy used by Marks and Spencer
Relationship marketing is defined as the approaches by which customer loyalty and
engagement can be enhanced. These are designed in order to enhance direct communication with
customer and to gain various information related to their needs and demands in optimal manner.
This strategy is regarded as an open communication within customer in order to promote internal
communication and to enhance customer retention (Kotabe and Helsen, 2020). In the terms of
Marks & Spencer the company is highly emphasised on providing value to their customer and in
this manner they are trying to establish prominent and effective marketing channels so as to
tackle their customer in effective manner and intensify their involvement as well. Here are some
relationship strategy along with their benefits which are used by Marks & Spencer:
Providing privileges to loyal customers: Marks & Spencer is treating their loyal
customer in a very distinct manner. In this context the company is hosting various events in order
to grab attention of their customers. On the other hand these events are helpful for the company
in making eminent relationship with their customer along with retaining them for longer
duration. Loyalty program is run by Marks & Spencer so under this management is trying to
encourage their loyal customers so that they can feel their value towards Marks & Spencer and
take effective and positive decision regarding buying process. The prominent objective of Marks
& Spencer is to make effective relationship with their customer in this manner the company is
trying to meet expectations of their customer in most effective manner (Sotnikova, 2016)(Witek-
Hajduk and Napiórkowska, 2016).
Creation of brand and customer advocacy: Under this aspect Marks & Spencer is trying
to meet customer advocacy in such a manner that high benefits can be rendered to them in most
influential manner. This is an element which leads to exhibit changes in business culture and by
this manner customer centric marketing techniques can be prepared. Under this Marks &
Spencer is cultivating interactions in such a manner that customer generosity is being attained
by them. For this process continuous feedbacks are collected by which requisite areas for
modifications can be examined and in this way higher customer focus is planned to receive by
Marks & Spencer .

Rewards to customers: Under this Marks & Spencer is sending rewards and thank you
mail to their customer so as to make them feel valued and to attain stronger market position.
Rewards leads to have mouth publicity which is highly beneficial for brand like Marks &
Spencer as the company is not very much involved in promotion and advertising so in this way
the company can grab attention of their customer in effective manner. Similarly, Marks &
Spencer is thanking their customer by sending mails in which a surprise git card is included. This
strategy is enhancing customer footfall for Marks & Spencer which enable them to each out to
their goals and objectives in early manner (Mahoney and Tang, 2016).
Promotional mails: Relationship marketing is associated with providing information to
customer in direct manner so in this context direct mails are being sent by managerial authority
to customer in order to establish direct communication. This is helping Marks & Spencer to
foster stronger connection with their customers through which needs and demands can be
satisfied. For customer these strategies are developing potential by which prominent decisions
can be taken by customers. This is an easy approach which is utilised by Marks & Spencer in the
process of their marketing positioning.
These are the methods which are used by Marks & Spencer in the process of
understanding their customer and their needs or demands as well. These methods are helping
Marks & Spencer to attain competitive edge in market by which prominence can be established
by organisation over their customers. On the other hand customer involvement is an another
aspect which is required by every business so as to attain sustainability and profitability so by
taking assistance of relationship marketing customers are involved as in context of Marks &
Spencer which helps the company to grow and develop in short run.
Recommendations on improvement in marketing strategy
Marks & Spencer is highly proactive in taking various decision by which the company is
trying to exhibit prominent effects through which positive outputs can be attained. In this regard
there are some suggestions which are given to Marks & Spencer in order to enhance their
marketing strategies, they are elaborated as under:
 In the current time reviews over social media are playing essential role in handling
customers in better way along with achieving high customer. In this context Marks &
Spencer is required to enhance their online presence along with obtaining positive

feedbacks. This way Marks & Spencer can eliminate any negative publicity which is
faced by them over social media.
 Marks & Spencer is a premium brand which is not affordable by every class of people, in
this regard Marks & Spencer can start pitching all class of people so as to enhance their
customer footfall. This is helpful for the organisation to deal with all their competitors in
more effective manner which lead them to attain separate competitive edge as well.
 Besides this Marks & Spencer can organise various sales promotion events in which
various discounted acts. This leads the company to pitch more customer in more
significant manner (Minasyan and et. al., 2018).
 On the other hand customer service is the another aspect which is required to be included
by Marks & Spencer in their marketing strategies under which after sale services are
required to be enhanced by Marks & Spencer in order to deal with market challenges in
more specific manner.
 Marks & Spencer is not investing huge amount of money over promotional programs, so
within this is recommended that they invest some more amount of money over
promotional programs in order to make their potential customer aware about quality of
food and cloths given by Marks & Spencer. This is helping Marks & Spencer to pitch
more customers in specific manner by which market image of the company can be
enhanced.
These are some recommendations which may be helpful fort Marks & Spencer to
enhance their marketing strategy and to deal with their goals and objectives in sufficient manner.
With the help of these suggestion Marks & Spencer can deal with their rivals in intense manner
which leads the company to attain competitive edge and market prominence as well.
CONCLUSION
From the above report this can be concluded that marketing strategy is one of the
prominent tool which can be used by businesses in order to deal with their marketing objectives.
In this regard businesses are using various robust policies those are enlightened for business
objectives and to make effective market position. On the other hand with the help of marketing
mix various elements can be undertaken in such a way that all these elements lead in attainment
of goals and objectives in appropriate manner. Besides this marketing plan is defined as a written
document which includes all the plans and outlines to be used by businesses so as to deal with

their rivals and to obtain better market position as well. Marketing plan is helpful to deal with
marketing objectives in a way by which adherence towards plans and tactics can be made and
market effectiveness can be accomplished as well. In the context of multinational businesses
there main objective is to deal with varied taste and preferences of their customers and for this
diversified strategies are used by them so as to maintain effective market position and to remain
in the market with high sustainability and profitability as well.

REFERENCES
books and journals
Armstrong and et. al., 2018. Marketing: an introduction. Pearson UK.
Bae, I.H. and Zamrudi, M.F.Y., 2018. CHALLENGE OF SOCIAL MEDIA MARKETING &
EFFECTIVE STRATEGIES TO ENGAGE MORE CUSTOMERS: SELECTED
RETAILER CASE STUDY. International Journal of Business & Society. 19(3).
Boudet and et. al., 2020. How marketing leaders can both manage the coronavirus crisis and plan
for the future. McKinsey (April 8), https://www. mckinsey.
com/business-functions/marketing-and-sales/our-insights/how-marketing-leaders-can-
both-manage-the-coronavirus-crisis-and-plan-for-the-future.
Govindan and et. al., 2019. Marketing issues for remanufactured products. Journal of Cleaner
Production, 227, pp.890-899.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Mahoney, L.M. and Tang, T., 2016. Strategic social media: From marketing to social change.
John Wiley & Sons.
Minasyan and et. al., 2018. Marketing plan for information support & consulting and public
awareness programs of Armenia Optical Business Center
Morris, C., Beresford, P. and Hirst, C., 2018. Impact of food retailer branding on expectation
generation and liking. Journal of Sensory Studies. 33(2). p.e12322.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Roberts and et. al., 2016. Integrated Marketing Communications Plan.
Sotnikova, A., 2016. The application of digital marketing strategies to increase profits of the
organization.
Witek-Hajduk, M.K. and Napiórkowska, A., 2016. A framework of manufacturer-retailer
cooperation and co-opetition: a perspective of six consumer durables manufacturers.
Organizacja i Zarządzanie: kwartalnik naukowy.