Marketing Strategies for Effective Business Operations

The provided assignment content discusses the marketing strategies of Argos, a dominant retail company in UK and Ireland, as well as its environmental factors such as PEST analysis (Political, Economic, Social, Technological). It also touches on market orientation, marketing capabilities, and firm performance. Furthermore, it provides examples of illustrations to help illustrate key concepts such as PEST and SWOT analysis, Product, Price and communication mix.

MARKETING
PLANNING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Reviewing changing perspective in marketing planning..................................................1
1.2 Evaluating organization capability for planning future activities....................................2
1.3 Techniques for organizational auditing............................................................................2
1.4 Carrying out organizational auditing and analyzing external factors...............................3
2.1 Barriers to marketing planning.........................................................................................5
2.2 Solutions for overcoming the barriers..............................................................................5
TASK 2............................................................................................................................................6
3.1 Marketing plan for a new service.....................................................................................6
3.2 Marketing planning is essential in strategic planning process.........................................6
3.3 Examining techniques for new product development......................................................7
3.4 Recommendations for pricing policy distribution and communication mix....................7
4.1 Ethical issues which affects marketing activities.............................................................9
4.3 Consumers ethics affecting marketing planning..............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
ILLUSTRATION INDEX
Illustration 1: PEST and SWOT analysis........................................................................................3
Illustration 2: Product, Price and communication mix....................................................................8
INDEX OF TABLES
Table 1: Gantt chart.........................................................................................................................7

INTRODUCTION
Marketing planning constituting marketing plan is a type of business document which is
made for the purpose of describing current market position of a business organization and its
marketing strategy for time period covered under the business plan. It is developed by
organization for systematic functioning of business operations in order to achieve goals and
objectives (Hollensen, 2015). Further, marketing also helps in transfer and exchange of gods and
services with the help of different intermediaries. Moreover, the core importance of marketing is
that it creates employment for the individuals as role of marketing has been spread within this
decade or so. In order to understand marketing planning in a definite manner, organization
undertaken for the present study is Argos Company which is a retailer organization having its
operation only in UK and Ireland and it is a subsidiary of Home Retail Group. This present
report focuses on reviewing the changing perspective in marketing planning. Further, this report
will have emphasis on organization auditing for analyzing the internal and external factors. This
report will further access on main barriers of marketing planning.
TASK 1
1.1 Reviewing changing perspective in marketing planning Situational analysis- This plays an important role for Argos as sometimes organization
own plan can lead themselves into a big problem. Being a trusted retail organization in
UK, Argos has to fulfill their customers’ demands by identifying their necessities and
wants. Further, this shows that cited company have to determine the market demand,
customer's taste and their competitor’s strength and weakness (Huang and Sarigöllü,
2012). By analyzing all the above factors, mentioned retail company can now compare
their own position in the market place. Further, mentioned company can conduct SWOT,
PESTEL, Porter Five Force model in order to see the stability and competence of the
cited organization. This will certain help Argos to give tough competition to their major
competitors like Tesco, Asda, Sainsbury and company can get competitive advantage
with it. Marketing mix element- Marketing mix elements consists of product, price, place,
promotion. Apart from these elements, Argos also focuses on excellent features of
products and service, packaging and building goodwill. These all elements attract
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consumers towards organization products. However, price of the product plays a specific
role as organization focuses on developing best of the products to their customers at a
reasonable price. Furthermore, organization stores are at convenient place and they are
easily accessible by customers for shopping.
 Market-led strategy- Market-led is a strategy where Argos identifies the needs and wants
of consumers and these needs helps mentioned organization to develop and serve
products and services to customers. This process is only possible when aforesaid
company do a specific market research.
1.2 Evaluating organization capability for planning future activities
Organization capability is considered as ability of company which is generally verbalized
in the form of human resource, physical and material resources like machines land as well as
building, financial resource as well as different intellectual resources. Argos is considered as one
of the recognized brand in UK in retail sector. Corporate is trying their best to give their top
competitors a stiff competition by increasing the size of products (Dibb and Carrigan, 2013).
Further, mentioned company is focusing on a marketing plan which shows clear stated objectives
for coming years. Organization is successful because of their prior concentration on a specific
country as Argos having its existence only in UK and Ireland. Cited company can successfully
implement their all the major resources especially the human, financial and physical and material
resources for getting a competitive advantage as this will help Argos to increase more of the
revenue and productivity.
Furthermore, organization has a wide range of products which are categorized in different
segments which satisfies individual’s needs up to a great extent. Argos also has many owned and
exclusive brands which gives customers lot of confidence when they buy some product from
aforesaid company. Moreover, organization is considered as number one in some product
categories. Along with their retail outlets, Argos has approx. 900 million websites and app visits
by their potential customers. Mentioned company also constitutes more than 53000 products
which automatically attracts consumers towards their products.
1.3 Techniques for organizational auditing
There are various ways of organizational auditing which Argos can implement in order to
increase their products size as well as revenue and profit with developing their product Portfolio
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(Aaker, 2008). Argos can do SWOT analysis in order to carry internal analysis of business
organization. With the help of SWOT analysis, mentioned organization will come to know that
what are the positive elements in them and also what they lack in as compared to their
competitors. Moreover, mentioned company strength is there strength of stores in UK as Argos
have almost 800 stores in UK. Further, company also seeks there strength in providing online
services to the consumers for their comfort and relaxation. However, with all such capabilities
cited company have some drawbacks which can affect their brand image and turnover.
Controversies like Sunday working affecting the performance of individuals working in the retail
stores. Further, with such a stiff competitive, cited organziation si not able to increase their
market share. Companies threats can affect the revenue and they have to overcome in quick time
period. These are generally related to the international expansion of different brand which will
also give tough competition. Further, major changes made by the UK government in the retail
industry in terms of policies and regulations.
Further, Argos can conduct a PESTLE analysis in order to scan the external environment
for improving their productivity and it will help Argos in a significant manner. This analysis will
help corporate to know what are the factors affecting growth and profit majorly. Further, these
are the factors majorly affects Argos plan and strategy and significantly these factors have
negative impact on organization growth and revenue.
Moreover, competitors analysis will help mentioned company to know their major
competitors. This analysis will broadly help Argos to know competitors objectives along with
their strength and weakness. Further, for better productivity and revenue organization can also
implement value chain method to develop a valuable product (Proctor, 2014).
1.4 Carrying out organizational auditing and analyzing external factors
Macro environment analysis helps business organization to scan the environment in order
to set their new policies as per the norms and regulations of UK body. These factors can increase
or decrease the need of product and create entirely new product needs. Macro environmental
analysis for Argos is stated below: Political- These factors having a great impact on mentioned companies products as
government is trying their best to give consumers protection by various act, rules and
regulations. Further, in order to ave them from eating disorder, government checks each
and every food substitutes which tends to consume more time in order to reach towards
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customers (Vaaland, Heide and Grønhaug, 2008). Argos have to function their business
activities by considering the Food Safety Act 1990 and must produce only those goods
which are essential and protect the human health. Economic- Sometimes Argos faces economic changes which literally decreases the
demand affects corporate revenue as well as the profit. Cited company also faces some
restrictions in relation to various rules and regulations in tax policies, purchase of raw
material from suppliers and different aspects. Social- Argos usually develops products by considering the needs and demands of their
potential customers. Argos cannot force customer's to choose their products, the only
thing which company can do is the effective advertisement which can attract the minds of
individuals towards that product or service. Furthermore, organization faces problems
because of customer’s perception, different lifestyles, income level of individuals etc.
 Technological- Organization can improve their functional activities and profits by
establishing new and updated technologies. Further, with effective design of the website
and publishing their new products with the help of SEO can attract the customers which
can increase the brand image and revenue of the company.
Illustration 1: PEST and SWOT analysis
(Source: SWOT Analysis Vs PEST Analysis and When to Use Them. 2012)
Micro environmental analysis for Argos is done with the help of SWOT:
Strength:
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 Quality of products- Organization have more than 53000 products which are categorized
in home appliances, electronics, baby care, food products, beauty and personal care,
clothing etc. These products satisfy customers need and wants on daily basis.
Organization further has well developed goodwill and positive image in the eyes of UK
customers.
 Innovative label- Argos has a large range of products and these products will be
increasing in coming time period (Jüttner, Christopher and Baker, 2007). Mentioned
company has their major focus on satisfying customer's needs and also to develop a loyal
customer base. Modern packaging and design can attract individuals towards their
products.
Weakness: Long working hours- Organization in order to satisfy their customer needs works on
Sunday as well. This make employees annoyed as they are not able to maintain their
personal and professional life.
 Worldwide presence- Argos currently having their operations in UK and Ireland only.
Organization has to look forward and set their retail outlets in other countries as well to
increase more of their revenue and productivity.
Opportunities: Expansion- Argos has to expand their business ventures throughout the world like their
other competitors Tesco, Asda, Walmart, etc.
 Revenue- mentioned Company having more than 25% of sales through online. With all
new features and segments organization can increase it in a well definite manner
(Martínez and et.al., 2010).
Threats:
 Competition- Existing giant competition in retail sector will give tough competition to
Argos.
 Rules and regulations- Change in government policies might affect the operational
activities of mentioned company.
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2.1 Barriers to marketing planning
Organization has to overcome these barriers in an effectual manner and prepare their
plans and policies by considering these elements only as it does not impact the business
environment. Organizational culture- Organizational culture at times affects the functioning of
organization as employees comes from different geographical areas and they have their
own language to communicate. Sometimes it acts as an obstacle because it leads to
miscommunication. Further, not taking feedback from customers can lead to a barrier in
coming time period. Ethical issues- Consequences get arise within Argos when some employee's comes in
favor and some against of a specific plan. Further, when plan is implemented those who
were in favor of the plan gets more priority and benefits as they have only suggested this.
This will also increase salary and other benefits which circumstantially act as a barrier
within mentioned company.
 Leadership skills- Leaders are the one who develops the gap between employers and
employees within company (Van Kleef, van Trijp and Luning, 2005). In organization,
leaders who do not have capability to approach their employees will not be able to collect
relative suggestions and innovative ideas which will lead towards decline in organization
growth.
 Isolating marketing functions- To perform operations effectively, Argos needs its teams
to operate and work in a unified group as it includes working towards common business
goals, sharing information about the business, customers and markets, etc.
2.2 Solutions for overcoming the barriers
Argos can overcome these barriers so explained above by having a proper market
analysis of their products which will further help them to understand segmentation, targeting and
positioning strategy (Constantinides, 2006). Further, for having a proper communication skills,
HR manager of Argos can conduct a training and development session in order to have effectual
communication both with employee's as well as with customers. Further, Argos have to look
over all the major functions within organization such as operational, financial, sales and
marketing in order to generate more of the revenue and productivity.
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Further, in order to overcome the problem, cited company can implement some above
mentioned points in order to increase their productivity and revenue for getting stiff competition.
Implementing effective leadership sklls will lead individuals to work with more of the dedication
and concentration.
On the contrary, Tesco also faces identical barrier but being a reputed retailer around the
globe, they have efficient and effective techniques to overcome them. Organization focuses on
analyzing cultural and market situation along with the customers’ demands. Organization further
has effective leaders who guide employee's and divide all the task and responsibilities in a fluent
manner (Strauss, Frost and Ansary, 2009). Organization further focuses on low price products as
more and more customers get attracted towards it and this is the only reason of Tesco's revenue
and profits.
TASK 2
3.1 Marketing plan for a new service
Effective planning is a crucial aspect of any marketing plan because it assures that a
profitable supermarket realizes its marketing goals for present and future time period.
Representative of Argos have a new service plan for mentioned company as they have to expand
their retail business in Dubai. For this, approx. £500,000 investment is required from Dragons by
the cited company. For this organization have a marketing plan: Target market- Argos will open their retail store at a convenient place where mentioned
company will be the center of attraction. Further, organization has a wide range of
products in different categories which will satisfy the needs of all potential customers.
 Marketing strategy- Argos focus is to deliver quality of products at a reasonable cost and
also within specific time period (Modesto Veludo-de-Oliveira, Akemi Ikeda and Cortez
Campomar, 2006). The main motto to open a retail store in Dubai is to give customers a
brand new experience as they do not have to even go out to buy a product and
significantly it will reach to their place. The product will be delivered within 2-3 hours of
the purchase. This guarantee is taken by the Chief Executive of Argos.
3.2 Marketing planning is essential in strategic planning process
Marketing plan is a written document that details necessary actions to achieve one or
more marketing objectives. It can be for a product or service, a brand, or a product line. Further,
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these marketing plans cover from one to five years. Strategic planning process is undertaken by
Argos in order to provide a plan to achieve specific goals and objectives of organization with the
help of their talented employees. Further, strategic planning for Argos identifies all the internal
and external strength and opportunities in order to prepare strategies and tactics. Objective of a
strategic planning process is to set and develop a new way for organization and create its shape
and structure so that the products and services which Argos is producing helps them to achieve
their corporate objective (Morgan, Vorhies and Mason, 2009).
On the other hand, marketing planning have to assess on developing a suitable plan for
the mentioned company which helps them in achieving those goals. Further, marketing planning
has a key role to play for strategic planning because it is the priority of every department in
Argos to understand and manage important links between environment and business.
3.3 Examining techniques for new product development
Argos has opted following techniques in order to attract Dragons minds towards their
new concept.
 Product development Schedule- Aforesaid Company in order to attract the mind of
Dragons explained their product development concept. Under this method, Argos first
designs the structure for their project and establishment. Further, they will take initiative
to run selected products at an initial level. This is because organization has to identify
the distance and the traffic in Dubai. After the initiation, test will be conducted by having
a dummy example. Further, if they got succeed organization will start having full
development of the business there (Zwijze-Koning and De Jong, 2005). Within a specific
time period organization will be able to study the concept and they will start having their
production process there. Organization in the starting period will sell only those products
which consumers needs in significant manner and after that they will start growing their
business.
Activity Month 1 Month 2 Month 3 Month 4
Implementing Idea
Identifying resources
Setting up business
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Developing Product
Table 1: Gantt chart
3.4 Recommendations for pricing policy distribution and communication mix
In order to settle retail business in Dubai, organization will focus on to have customer’s
attraction towards their products. For this, pricing strategy for Argos will be based on following
elements. Skimming pricing policy- This pricing policy will help Argos to recover all the expenses
which is incurred while setting a business in Dubai. This policy has a drawback as price
of the products are high and they will not be able to attract more of the customer's.
 Penetration pricing strategy- Mentioned Company can implement this strategy where
price of the products will be low with a significant low profit margin. For starting period,
mentioned company will be able to increase sale with relative low profit margin (Arena
and Azzone, 2009).
Illustration 2: Product, Price and communication mix
(Source: Dior Communication Strategy. 2013)
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Further, distribution policy will have its own significance as aforesaid company will be at
its initial stage in Dubai. Therefore, Argos will only focus on intense distribution policy, this is a
policy where customers will get product at organization retail store only.
Moreover, to communicate with their customers in Dubai, mentioned company have to
opt various communication policies. These are: Advertisement- Argos has to advertise their new establishment of retail in Dubai's
national newspaper. This will lead to more of the customer's attraction. Further, cited
company can advertise on radio channels, banners, hoardings, etc.
 Social media- Argos can promote their new venture with the help of social media as
corporate have its official Facebook page which has millions of likes. Further, updates on
Twitter, Instagram will make significant difference again (Mohaghegh, Kazemi and
Mosleh, 2009).
4.1 Ethical issues which affects marketing activities
Ethical issues are those which can affect the marketing activities for mentioned company.
If Argos makes false advertisement relating to their products and services, then they will not be
able to make potential customer base and also loose the existing ones. For Argos, negative
advertisement might affect their sales, productivity and profits. This highlights the disadvantage
of the Argos services and customer will see the bad effect of it (Aaker, 2008).
However, Marks and Spencer (M&S) is a popular brand for retail and clothing sector in
the UK. With increase in complexity and trust of customers, M&S not operating any false
activities in their organization as they know this will harm their goodwill in a significant way.
Further, there are various incidents and cases of commercial frauds are pending in UK Courts.
Further, children are attracted towards fast food products which at times lead to obesity
and digestion problem. Walmart by considering all these facts into consideration checks each and
every product in order to see any side effect of it. This is the only reason why Walmart is
considered as a king of retail sector around the globe.
However, in order to solve all these ethical issues in their firm, Argos have to take some
necessary steps. Argos having a dominating position in UK and Ireland but now it is the time for
them to explore their business globally. Cited company has to make some potential customers in
order to increase their sale for starting months (Huang and Sarigöllü, 2012). Home delivery of
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the product need to be specific and also should be delivered at particular time. Being a Muslim
culture in Dubai, mentioned company should not follow any type of advertisement which affects
their lifestyles or thinking. This will have a major impact on individuals living in Dubai and
Argos will lose their set market. Further, they have to classify their products by marking symbols
for vegetarian and non-vegetarians as there are some individuals who do not eat non-veg.
Mentioned company can further implement the tactics used by the other retailers in order to
expand their market share and goodwill.
4.3 Consumers ethics affecting marketing planning
Customers are the king of market place and they are generally the backbone of marketing
plan in retail sector. Argos focusing on delivering products to customer's home as they do not
need to travel a single step and they can either order it by online or by calling to retail
organization. Customers should must not take this service as a advantage and must not play any
pranks to service provider. By telling them wrong address for delivering the product will be
hectic for organization and this will increase functional and operational cost for organization
(Morgan, Vorhies and Mason, 2009).
Another example for this can be in electronics sector, as customers gets warranty for the
phone which they have purchased, they should not take advantage of this service by damaging
the phone of their own and blaming electronic organization for the mishappening. Consumers
have to understand this point and do not take any illegal advantage of facilities provided by the
company. Individuals will be affected if organizations and government started taking strict
actions against them.
CONCLUSION
From the above report it is clearly stated that Argos is a dominant leader of retail market
in UK and Ireland and now trying to mark its presence in other countries as well. Further this
report shows that mentioned company have a large product size and are differentiated in different
categories which satisfies customers’ needs and wants in a positive way. Moreover, this report is
also evident of different ethical practices opted by Argos in order to increase their customer base
and market base without affecting the environment.
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REFERENCES
Journals and Books
Aaker, D. A., 2008. Strategic market management. John Wiley & Sons.
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effectiveness. International Journal of Auditing. 13(1). pp. 43-60.
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Journal of marketing management. 22(3-4). pp. 407-438.
Dibb, S. and Carrigan, M., 2013. Social marketing transformed: Kotler, Polonsky and Hastings
reflect on social marketing in a period of social change. European Journal of Marketing.
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Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand
equity, and the marketing mix. Journal of Business Research. 65(1. pp. 92-99.
Jüttner, U., Christopher, M. and Baker, S., 2007. Demand chain management-integrating
marketing and supply chain management. Industrial marketing management. 36(3. pp.
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Martínez, M. A. and et.al., 2010. A personal data audit method through requirements
engineering.Computer Standards & Interfaces. 32(4. pp. 166-178.
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Mohaghegh, Z., Kazemi, R. and Mosleh, A., 2009. Incorporating organizational factors into
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technique formalization. Reliability Engineering & System Safety. 94(5). pp. 1000-1018.
Morgan, N. A., Vorhies, D. W. and Mason, C. H., 2009. Market orientation, marketing
capabilities, and firm performance. Strategic Management Journal. 30(8). pp. 909-920.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.
Smart, D. T. and Conant, J. S., 2011. Entrepreneurial orientation, distinctive marketing
competencies and organizational performance. Journal of Applied Business Research
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Strauss, J., Frost, R. and Ansary, A. I., 2009. E-marketing. Pearson Prentice Hall.
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Vaaland, T. I., Heide, M. and Grønhaug, K., 2008. Corporate social responsibility: investigating
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Van Kleef, E., van Trijp, H. C. and Luning, P., 2005. Consumer research in the early stages of
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Zwijze-Koning, K. H. and De Jong, M. D., 2005. Auditing information structures in
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Organizational Research Methods. 8(4). pp. 429-453.
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