An Analysis of Marketing Orientation in Primark

This assignment explores the marketing strategies of Primark, a retail company that uses both Business-to-Business (B2B) and Business-to-Customer (B2C) models to provide quality products to its customers. The study highlights the differences between domestic and international marketing, with international marketing offering unlimited scope for business expansion. Additionally, it emphasizes the importance of marketing orientation in achieving competitive advantages and reducing competition levels.

Marketing Principles
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Table of Contents
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
1.1 Elements of the marketing process............................................................................................4
1.2 Benefits and costs of a marketing orientation for Primark .......................................................4
2.1 Macro and micro environmental factors which influence marketing decisions........................5
2.2 Segmentation criteria to be used for products in different market ............................................6
2.3 Targeting strategy for launching new clothing style for female................................................6
2.5 New positioning for launching new clothing style for female...................................................7
2.4 Impacts of buyer behaviour on marketing activities in different buying situations..................7
3.1 Development of the products to sustain competitive advantages .............................................7
3.2 Distribution arrangement for giving customer convenience .....................................................8
3.3 Pricing strategy as per the market conditions ...........................................................................8
3.4 Integration of promotional activities to achieve marketing objectives......................................9
3.5 Analysis of additional marketing mix elements in the context of Primark ...............................9
TASK 2...............................................................................................................................................10
4.1 Planning of marketing mixes for two different segments........................................................10
4.2 Differences in marketing products and services to businesses rather than consumers............10
4.3 Difference between domestic and international marketing .....................................................11
CONCLUSION...................................................................................................................................11
References..........................................................................................................................................12
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Index of Tables
Table 1: Micro environmental factors .................................................................................................5
Table 2: Macro environmental factors .................................................................................................5
Table 3: Planning of marketing mixes for two different segments.....................................................10
Table 4: Difference between domestic and international marketing .................................................11
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INTRODUCTION
Marketing is a technique adopting by every type of organization for promoting the goods
and services in the market for the target customers in more effective manner. It has also helped in
identifying the needs and expectations of the services users (Principles of Marketing. 2012). The
following study has based on the marketing principles and to understand its importance in the
industry, Primark has taken into the consideration. The aspects which will cover under the following
study are elements of the marketing process, micro and macro environmental factors on decision
making process, development of new products, effective distribution of the goods and services and
many other things.
TASK 1
1.1 Elements of the marketing process
The elements of the marketing process for Primark are as follows.
Analysis of environment and market: Here, the different strategic tools have used to analysed the
environment and current market position of Primark. The techniques which can be used for the
analysis are SWOT, PESTEL, Porters Five Force Model etc (Butler, 2014).
Identification of target market: Now, the target market of Primark has identified which can be
local or national or international. It helps in targeting the market segment of the company where it
has run the various business operations.
Setting objectives of marketing: Under this stage, the long and short term objectives with the
perspective of Primark brand image has set. These objectives are closely related to the business
strategy such as increase the presence in the international market, enhance brand values, increase
the number of product lines etc (D'Esopo and Almquist, 2007).
Handling with marketing mix elements: In this element, Primark has required to deal with every
marketing mix components which helped in knowing the customers demands and needs.
Reflection, control and revision: The following element has used by Primark in cyclic manner for
the assessment and knowing the effectiveness of the marketing strategies. With the help of this, the
company can bring the improvements in the existing strategies as per the changes in the external
and internal environment (Grinstein, 2008).
1.2 Benefits and costs of a marketing orientation for Primark
With the help of the marketing orientation, Primark has developed the new services and
products according to the identified the needs and expectations of the customer (Avlonitis, 2011).
The benefits and costs of this method for the company is as follows.
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Benefits
Customer centric: Marketing orientation helps Primark to develop the new goods as per the
expectations of the services users. The features of the goods in such way so that new modifications
can be made without affecting the sales (Ivy, 2008).
Competitive advantages: By adopting the marketing orientation approach, Primark can take the
competitive advantages. Along with this, it has also helped in increased the market share as well as
raise as a retail market leader in the near future.
Costs
Less product differentiation: By spending the more time with the customer and market research, it
has affected the core competences of Primark. The result of this is, the competitors will increase the
supply of the products to meet the increase demand. It will decrease the market share of the firm
and affect brand image (Jevons, 2000).
Lack of predictability: Marketing orientation methods has required the extra and preplanning for
modifications or development of new products. But it is impossible in the case of predict the
customers expectations and demand which will not good for Primark (Keyes, 2009).
2.1 Macro and micro environmental factors which influence marketing decisions
The macro and micro environmental factors which influenced marketing decisions of
Primark are as follows.
Table 1: Micro environmental factors
Micro environmental factors Description
Customer's Services users has made the direct effects on Primark business
operation. As per the changes in the customer preferences and
demand, the company can take the several decisions to meet the
different gaps (Knight, 2003).
Suppliers Primark has purchased the cloths from the different suppliers. In
this context, the changes in any of the vendor expectations, it will
affect the decision of company to do or not to do business with
him (Paul, 2008).
Table 2: Macro environmental factors
Macro environmental factors Description
Political and Legal The stable political and legal factors of UK has affect the decision
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making process of Primark in terms of adopting the health and
safety act, paying tax, secure employees right etc.
Environment The changes in the environment such as flood, climate, disasters
etc may affect the operations of Primark in negative manner. Due
to this, the various decisions will modified as per the situations
(Brooksbank, 2000).
Economic The unemployment ratio, inflation rate, exchange rate of currency
etc in the present time of UK may affect Primark decision making
strategies in negative or positive manner.
Social The changes in the customer expectations and his desires are
modified according to the time. These changes has influenced the
marketing decision of Primark at the time of performing the
various business operations (Charles, 2007).
2.2 Segmentation criteria to be used for products in different market
Primark has offered the numerous products to the services users such as clothing for new
born, kids, menswear and womenswear, beauty products, homeware, footwear etc. The most
important thing about the company is selling the goods at the low cost in the market which are
having the good quality. Primark has performed its operations in the different nations across the
world. In this context, it can used two segmentation criteria for the product: demographic and
geographic segmentation (Segmentation. 2010). In geographic segmentation, there are various
stores located in UK which help the company to operate the business by using limited resources.
The benefits will be from the following segmentation to Primark is development of efficient system
that increase distribution of the goods to the customers in minimum time. On the other hand, in
demographic segmentation, firm has divided its product range according to the age, sex, family
structure, income group and occupation (Segmentation. 2010). Therefore, from the above stated
statements, it has been clear that Primark has used demographic and geographic segmentation
criteria for the products in the different market.
2.3 Targeting strategy for launching new clothing style for female
Primark is planning to introduced the new fashion style in clothing for the females. The
reason behind introducing this range is the females under this age are very confident towards their
style. As per their perception, their cloths are the way to express themselves in more effective
manner (Chatzipanagiotou, 2010). This is the reason they are always shopping from those stores
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whom are providing them fashionable and good quality products. For launching the new product in
the market, the target market will be 18-35 years old females. The reason of selecting this target
market is it has meet the customer demand as per their expectations and increase the growth aspects
of Primark in the future. The targeting strategy of the company is differentiated because it has
developed a difference between specific and all other market segments. During launching the new
product in the market for female, company should available the new fashion range in the all stores
with the wide range and attractive colours and styles (Chand, 2015).
2.5 New positioning for launching new clothing style for female
Positioning of the product is more important because in the market place, it will compete
with the competitors goods which are similar in the nature and characteristics. It is a central element
of the marketing strategy which define the success and effectiveness of the plan, the case of
Primark, the company can set new positioning of the new products in the customer's mind by
adopting the demographic and psychological criteria (Singh, 2003). As per the nature of the
operation and kinds of the product, it can be suggested to the management of the organization that
they should use product-user approach. Under this positioning strategy, the marketing department of
Primark would develop some methods which help in create the good image of the new product in
the target customer mind. With the help, of this, the company will easily attract the attention of
large number of service users and meed the demand of the market in appropriate way (Butler,
2014).
2.4 Impacts of buyer behaviour on marketing activities in different buying situations
The buying behaviour of the consumers has changed with the situation and perception
regarding the product or service. From the perspective of marketing, there are two types of buying
situation: straight rebuy and modified rebuy. The same thing has applied for Primark Company
because the customer preferences and selection has varied as per the present situation (D'Esopo and
Almquist, 2007).
In the case of straight buy condition, because of only one positive buying behaviour of the
services users, the company has not required to made the modifications in the product as well as
marketing activities. In this regards, it has not required for the firm to pay too much attention
because in this situation, the consumers will buy particular goods from the company. On the other
hand, in modified rebuy, the services users are frequently changes their frequency and quantity of
the buying of products (Grinstein, 2008). Due to this, it has essential for the organization to bring
the changes in the marketing activity and pay attention on those reasons which influenced the
changes of customers preferences.
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3.1 Development of the products to sustain competitive advantages
To gain the competitive advantages in the market place, it has essential for every company to
bring the new innovation in the product range which should be unique from the competitors goods.
In the case of Primark, the steps of development of new products to gain sustainable competitive
advantages are as follows.
Generation of ideas
The first stage has related to the generation of idea which has got after the analysis of the
current market trends and customer demand. In this context, the SWOT, PESTEL, interviews,
brainstorming etc can be used (Jevons, 2000).
Development of concept and testing
Here, a prototype has prepared for testing the performance and quality of the product. The
development of the new commodity has prepared according to the service users requirements. For
testing, some samples has sent to the market where the perceptions and suggestions regarding the
new products has collected by Primark Company (Knight, 2003).
Market strategy and development
After testing and all activities, the nest step is developing of market strategy and its
implementation for launching the new product in the market. The segmentation, positioning and
targeting and pricing strategy has also decided by the firm itself (Paul, 2008).
3.2 Distribution arrangement for giving customer convenience
The right selection of distribution channel for giving customer convenience is most
important for every company because it has helped in meet the demand of the consumers within
minimum time. In the case of launching of new product in the market, Primark has to adopt both e-
commerce and store method. Both distribution methods are effective and give the convenience to
the service users (Chatzipanagiotou, 2010). With the help of e-commerce method, company will sell
the new products through online and deliver the orders directly to the client home. It will save the
time of the users as well as promote the products in the market more effective manner.
On the other side, by available the new commodity in the various stores at the different
locations in UK. These stores should be near to the living areas of the services users so that they
can buy the product from the stores in easily. The following method is called intensive distribution
method and it support Primark product because they are low in price but good quality (D'Esopo and
Almquist, 2007).
3.3 Pricing strategy as per the market conditions
The pricing strategy of a company should be in such way so that it support the objectives of
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the business and according the present market conditions. The new product pricing of Primark
goods has required the effective pricing strategy which can attract the customers. There are some
suitable pricing strategies for Primark which support the different market conditions and that are as
follows.
Price penetration
The following strategy has used in that condition when the product has consumed on the
regular bases. In the case of Primark, the new fashion series cloths for the females have purchased
on the weekly basis. So at the initial level, the pricing of the new products should be low to gain the
market share and after some time, the pricing should be increased (Miletsky, 2009).
Price skimming
Here, Primark can set the high prices of new range of products at the starting level and then
decrease them so that it can be available to all the target segment. The benefits of this is making the
profit with low speed (Ivy, 2008).
3.4 Integration of promotional activities to achieve marketing objectives
Promotional activities helps in increase the awareness in the community about new and
existing products and services. Along with this, it has also helped in influenced the customers to buy
the commodities (Butler, 2014). In the case of Primark, company has given both traditional and
modern media sources as an promotional tactics in the UK. For gain the high attention of the
services users, firm has also used then social media marketing where the different pages have
created. These links are following by the customers and here they get the complete information
about the new offers, lunching of new services etc within a minimum duration (D'Esopo and
Almquist, 2007). To increase the awareness in the target market about the products and services of
company is the short term objectives of Primark. The above stated promotional strategy has directly
support the marketing objectives of the company. Apart from this, another marketing objectives of
the organization is increase the sales which is long term objectives. This objectives has linked with
promotional activity of firm because Primark has initiated the various offers by Primark as a
promotional purpose which has increased the sales (Grinstein, 2008).
3.5 Analysis of additional marketing mix elements in the context of Primark
The additional elements of marketing mix are people, physical evidence and process. The
analysis of these additional marketing mix elements in the context of Primark are as follows.
People: These are very important element of marketing mix because when Primark has delivered
the product to the users, some services have also delivered. So it is important for the company to
hire and invest the money in defining the correct people to deliver the services (Martin, 2014).
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Physical evidence: The location of the delivery of the product has an important aspect of Primark
because of giving the convenience to the service users. The effective, attractive and comfort
services location has made the positive impact on customer mind.
Process: The process include in the development and deliver the services has required the special
attention. In the context of Primark, the company should define the process of delivery the product
to the services users so that they can ensure the day of getting the goods. It has provide the unique
experience to the consumers which increased their loyalty towards the company (Martin, 2014).
TASK 2
4.1 Planning of marketing mixes for two different segments
Table 3: Planning of marketing mixes for two different segments
Segmentation
Criteria/Marketing Mix
Demographic Criteria Geographic Criteria
Product New range of fashion styles in
clothing
New range of fashion styles in
clothing
Place Selected outlets Different department Stores
Price High price Competitive pricing
Promotion Traditional methods of marketing
and advertising (Jevons, 2000)
Social Media and Internet
Marketing
Process Buying less from local traders Buying surplus from local traders
People Experts in using traditional tools of
marketing
Employees with sufficient
knowledge about social media
and internet marketing (Keyes,
2009)
Physical Evidence Compelling design used by the
department store itself.
Attractive designs available in
the different stores.
4.2 Differences in marketing products and services to businesses rather than consumers
Primark has used both Business to Business (B2B) and Business-to- customer(B2C) models
to provide quality products to the services users. For gaining the competitive advantages and
decrease the competition level in the marketplace, the different collaboration and tied up has done
by the company (Knight, 2003). With the help of B2B model, it will provide the opportunities to
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more improve the quality of products. By using digital marketing and building the good business
networks with the other small organizations, Primark will able to reduce the delivery time of the
services at the customer doors. On the other hand, in B2C, it has helped in established the direct
communication with the services users to know their problems and preferences in more effective
manner. It has also assist in implementation of the different business strategies for enhancing the
services of company (Paul, 2008).
4.3 Difference between domestic and international marketing
Table 4: Difference between domestic and international marketing
Domestic marketing International marketing
Limited opportunity of growth, unsupportive
political and economic environment.
It provides unlimited scope of opportunities to
expand the business at the international level.
Mainly used segmentation and targeting
techniques for marketing.
Easy to use direct and online marketing for
promotion of goods.
Limited use of resources and technology
(Brooksbank, 2000).
Opportunities for using the new techniques and
greater availability of the resources.
Limited market entry barriers which not affect
too much performance of the company.
High market entry barriers which affect too
much performance of the company.
Effective use of price skimming and
psychological pricing.
Effective use of competitive pricing at
international level (Charles, 2007).
E.g: Primark can attract domestic customers via
geography, demographic and offline distribution
method.
Eg: Primark can expand its business
international via use of e-commerce.
CONCLUSION
From the above study it can be concluded that marketing orientation has both benefits and
disadvantage for Primark. With the help of demographic and geographic segmentation, the new
product has easily launched. By adopting the price skimming and price penetration method, the
market share and profits ratio has increased by the firm. The new development of the products
helped in getting the competitive advantages in the market place.
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