PESTLE Analysis in Social Marketing

The provided content consists of various texts on marketing, including books, articles, and online resources. The texts cover topics such as social marketing, entrepreneurship marketing, marketing principles, hospitality marketing, pharmaceutical marketing, and sports marketing. They also explore the application of marketing principles in different contexts, such as health and nutrition, climate change public engagement, and primary school education. Additionally, the content includes references to PESTLE analysis and its factors, highlighting the importance of understanding the macro environment in marketing. Overall, the texts offer fresh perspectives on the future of marketing and its need for reform.

Marketing Principles

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Various elements of marketing process................................................................................1
1.2 Benefits and costs of marketing orientation..........................................................................2
2.1 Analysing macro and micro environment using appropriate tools and techniques..............2
2.2 Segmentation criteria for products in different markets.......................................................5
2.3 Choosing a target strategy for selected product....................................................................6
2.4 Impact of buyer behaviour on different marketing activities in different buying situations 6
2.5 Positioning options for selected product/service...................................................................7
3.1 Development of product to sustain competitive advantage..................................................7
3.2 Distribution Strategy.............................................................................................................7
3.3 Pricing strategy......................................................................................................................8
3.4 Promotional activity..............................................................................................................8
3.5 Additional elements of extended marketing mix..................................................................8
TASK 2............................................................................................................................................9
4.1 Marketing Mix for two different segments...........................................................................9
4.2 Differences in marketing products and services to businesses rather than consumers.........9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: PESTLE analysis.......................................................................................................4
Illustration 2: Factors of macro environment...................................................................................5
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INTRODUCTION
Marketing principle is a process which is helpful in understanding the needs and wants of
the customers and developing product or services which would satisfy them. There are four
elements which are involved in marketing principles. These elements are very helpful in carrying
out market research which helps in knowing the customers requirements (Jobber and Ellis-
Chadwick, 2012). These process is very important for the firm, as it helpful in competing
effectively with the competitors. It helps in knowing preference and strategies which can be
adopted to attract customers and in competing effectively. Mainly elements like product, place,
price and promotion are used in marketing principles. Present report is about Marks & Spencer
British retail which is headquartered at London. This report covers, understanding the process
and concept of marketing. Further, it covers understanding the concept of segmentation,
targeting and positioning. Lastly, it covers the use of marketing mix in different context.
TASK 1
1.1 Various elements of marketing process
In the marketing process there are mainly four elements involved which are helpful in
achieving the goals of attracting more and more customers. Marketing process of M&S is
described as below:
Scanning the environment: There are few tools which M&S uses in order to scan the
environment. Tools like PESTLE analysis, value chain and SWOT analysis (Sheth and Sisodia,
2015). These types of tools are very helpful in knowing the ways through which the firm can
achieve their desired goals and objectives.
Marketing strategy: According to this process mainly three types of strategies are used which
are targeting, positioning and segmenting. According to segmentation customers are divided
different age groups or gender vice. Targeting means to target to specific category and
positioning is referred to design the brand image.
Tactics of marketing: This is very important in determining the factors which affects the
demand. In this context there are mainly 7Ps used which are product, price, place, promotion,
people, process and physical evidence.
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Controlling and monitoring: This starts with the development of sales, marketing and financial
goals of M&S which should controllable (French, 2010). These are one of the main functions
which M&S has to perform in order to run effectively.
1.2 Benefits and costs of marketing orientation
M&S isa market oriented organization which offers it s customers home products, luxury
food and clothing. Which make changes according to their customer's needs and wants. In this
context there are many cost benefits which provided by this firm, which are as follows:
Main aim of M&S is to provide their customers with quality products and services. In this
respect, they conduct various surveys and researches which are helpful in understanding the
wants and needs of the customers (Nwankwo and Gbadamosi, 2010). The firm spend highly on
these types of research and surveys but the outcome through this process is very effective in
knowing the trends and customers requirements. In addition to this, is also helpful in adopting
strategies which will help the firm in improving their performance level. Firms get highly
benefited by providing the products and services according to the customers wants. With the
increase in customers base it also increases the cost of production. For example, organization
choose to provide product warranties according to customers demand. This will cost the firm by
hiring of maintenance staffs.
2.1 Analysing macro and micro environment using appropriate tools and techniques
Marketing environment of M&S is divided into micro and macro environment. These
factors highly influence the marketing strategies of the retail industry. Following are the factors
which affects the micro and macro environment:
Macro environment: In order to know the factors of macro environment, M&S do PESTLE
analysis. Following are PESTLE of M&S:
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Political factor: It is referred to the policies and regulations which are imposed by the
government. These policies are regulations has to be followed by the all the organization
(Deshpande and Rundle-Thiele, 2011). Government trade agreements and tax policies are best
examples of policies and regulations which have a great impact on the decision making of M&S.
Economic factors: It is related with the economic scenario which avail in the country like
monetary policies, employment rate, fiscal policies, cost of raw materials, etc. all the
determinants should be considered in developing effective marketing plan (What is PESTLE
analysis?, 2015).
Social factors: It is related with the culture of the retail industry in which the business operates.
It includes the population distribution, lifestyle, educational level, wealth distribution,
demographic area, etc. M&S has to analyse all these elements before it develops a marketing
plan.
Technological factor: It is refereed to use of improved and updated technology which will help
in attracting customers. The use of technology has helped M&S in attracting customers and in
promoting their products and services effectively (Parker and et.al., 2011).
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Illustration 1: PESTLE analysis
(Source: What is PESTLE analysis?, 2010)

Legal factors: It includes law related to employment laws, customers protection act, international
trade regulations, national trade regulations, etc. these types law highly influence M&S.
Environmental factors: There are many rules which has to be followed by the firm. Rules like
recycling procedures and waste management which organization has to do in order to become an
environmental friendly (Armstrong, Adam, Denize and Kotler, 2014).
Micro environment: These factors affect highly on the firm. In addition to this, all the factors
which come under this environment are controllable:
Competitors: All the firm focus on attracting more and more customers. This achieved by
adopting different type of strategies. M&S should develop new strategies which would help in
attracting customers and in competing effectively.
Customers: Customers are highly affected by the strategies which the firm adopts and the
providing the products and services which would satisfy them (Bowie and Buttle, 2011). This is
possible only when organizations understands the requirement of the customers.
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Illustration 2: Factors of macro environment
(Source: Marketing micro environment, 2012)

Suppliers: They are the one who provide raw materials to the firm. It is very important for the
firm to maintain good relationship with them so that they can deliver the products and services
on time. M&S should identify key suppliers who would provide them all the required materials
on the given time (Smith, 2014).
Public: These are the group of individuals who would affect highly on M&S in order to achieve
its business goals. These factors include media houses, customers protection groups,
environmentalists, etc.
Intermediaries: These are group who are helpful in delivering the services and products to the
ultimate customers (Marketing micro environment, 2012). They are helpful in marketing
activities like distribution, sale of products and services, promotional activities, etc.
intermediaries involved are retailers, distributors, wholesalers, etc.
2.2 Segmentation criteria for products in different markets
Segmentation is an organizational activity for marketing which is helpful in dividing the
target market into subsets which is done on the basis of demand and need of the consumers
(Allyson Dooley Jones and Iverson, 2012). M&S is going to develop new energy drink called
Active Plus, for which the segmentation can be done in the following way:
Demographic Segmentation: This mainly based on factors like age, gender, race, income,
education, religion, etc. For this particular product M&S will target for all the age groups. But
the main focus will be on children from 8-12 and youth for the age group of 13-35. This type of
segmentation are very helpful in preparing the marketing plan which for the new product
developed by M&S.
Psycho graphic Segmentation: This segmentation is helpful in making division of target market
which is based on characteristics of the target market like their attitude, lifestyle, values and
beliefs. It is very helpful in developing a focused approach in development of product. Energy
drink is developed keeping in mind that most of the young people focus on keeping themselves
fit for which they workout or people perform of work because of which they get tired. This
energy drink will help them in filling them with energy(Dibb, Simkin, Pride and Ferrell, 2012).
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2.3 Choosing a target strategy for selected product
Targeting can be determined as the process of selling the product to the selected
customers who will be potential and through which they can earn profit gained for the new
product. Following are the targeting strategies of M&S for its new product:
Concentrated targeting: In is refereed to targeting a segment which is simple and which can be
implicated which the help of marketing strategies in order to provide the target great
profitability. M&S can formulate two distinct marketing plans among which one is children and
youth in order to positioning it for the new energy drink (Dann, 2010).
Differentiated Targeting: It is to develop promotional message which will be helpful in in
attracting targeted customers and other different marketing mix are used in order to achieve their
goals and objectives. M&S will adopt multi target strategy as they are going to focus on children
of age group form 10- 13 and youth for the age group form 13- to 35.
2.4 Impact of buyer behaviour on different marketing activities in different buying situations
Buying behaviour of the customer's significantly impact the marketing activities of the
organization in many situations. Following are the impact of buyer behaviour on different
marketing activities in different buying situations:
Quality of the product: Most of the customers buy the only when they ensure that the product is
provided in high quality. The quality of the product have a significant impact on the satisfaction
level of the customers (Glassman and Braun, 2010). For example, if the quality given by the new
product do not satisfy the customer, then they will not prefer the product more and it will have an
negative impact on the product and the firm.
Pricing: It is one of the main factors which affects the buying decision of the customers. The
customer will only buy the product only when he/she fells that the product is affordable or when
the price is what it should be. There will be customer who buy the product when there are
discount offers.
Through promotional activities: Promotion plays a vital role in attracting customers. It has the
power to attract customers towards the product or make them to at least use the product once. For
example, when the customer see that the product is being promoted by their favourite celebrity
then will purchase the product (Lee and Kotler, 2011).
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2.5 Positioning options for selected product/service
Positioning of a product is very helpful marketing tactic which a firm can use for making
distinct position of the brand among the minds of the customers. In order to create unique brand
image for the new product M&S needs to develop an effective positioning strategy. Following
are key points in order to do it:
Organization should make research of the target customers in order to know the need of the
product. It will help in developing the product according to the needs and requirement of the
target customers (Pride and et.al., 2012). Based on this research, the firm can develop a
marketing plan. Firm should focus on developing something which should be different for its
competitors it will be helpful in attracting more and more customer's attention. In addition to
this, the firm should focus on developing promotional strategies through which the target
audience will get to know regarding the new energy drink. Promotional activities includes
developing public relations, advertising and sales interactive marketing, social media marketing,
etc.
3.1 Development of product to sustain competitive advantage
There are many firms which provides its customers with energy drinks. For competing
effectively and in attracting the targeted audience that is children and youth. This energy drink
will be very helpful at the time when one gets extremely tired, till will boost up the person and it
can be used as a fast pick me up during the afternoon times (Shank and Lyberger, 2014). In
addition to this, it will be helpful in increasing maintaining the fitness. Moreover, Active Plus
will be helpful as it provides Guarana, Taurine, Ginseng, Vitamin B, caffeine, etc. which are
very helpful in energizing the users. Further, it will available to the customers in different
flavours which will be helpful in attracting customers. Thus, by covering all these points the
product will be able to attract its customer and will be able to sustain competitive advantage.
3.2 Distribution Strategy
It is very important of M&S to make available the product easily to the customers. When
customers will be able to reach the product easily then it will be beneficial of the firm. Mostly
customers prefer the product which will be easily available. In today's world use of internet has
been rapidly increasing, in this context the firm should sell the product online (Sferle, Gârdan,
Gudei and Geangu, 2012). There are many branches of M&S, they should make available their
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product in all the branches. In addition to this, they should sell the product on all the retail stores.
This will be helpful in making the product available of the customers easily.
3.3 Pricing strategy
In marketing mix it is the most important element. Through this the customers buying
behaviour changes. Customers will only buy the product when it is at affordable price. Price
creates a perception regarding the quality of the product among the customers (Corner and
Randall, 2011). The product will be sold for £4.10 as the product is new and it will take time to
develop trust among the customers. Slowly when the product will get families with the product
then the prices will be increased. All the flavoured energy drink of the new product will be sold
in same price.
3.4 Promotional activity
Promotional strategy is considered as the most important element as it is the source
through which the customers will get to know about the product. According to the target
audience that is children and youth. Mostly every one use social sites. Advertisement will be
given on social sites which will be the most effective tool in attraction and in increasing the
awareness regarding the product (Jobber and Ellis-Chadwick, 2012). In this context, the young
teenagers belonging to high class rich people, they get influenced by television advertisement
which is a good source of promotion by M&S. In addition to this radio, newspaper and
magazines can be used in order to attract the customer's.
3.5 Additional elements of extended marketing mix
There are three more elements which are involved in the 4Ps. Following are the other
elements:
Physical evidence: Since the M&S has come up with energy drink 'Active Plus' it is required for
the firm to develop physical evidence in such a way that they could attract customers.
Process: The services provided by the retailer should be excellent so that people get to know
every detail about their product (Sheth and Sisodia, 2015).
People: As the firm is developing energy drink so it is important that they have employees who
have complete knowledge regarding the product so that queries could be solved of the customers.
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TASK 2
4.1 Marketing Mix for two different segments
Marketing mix of Energy drink Active Plus:
PRODUCTS Different types of flavoured energy drinks can
be developed like chocolate, vanilla and
strawberry. It will be helpful in increasing
maintaining the fitness. Active Plus will be
helpful in providing Guarana, Taurine,
Ginseng, Vitamin B, caffeine, etc.
PRICE Competitive price: £4.10
PLACE Online stores, different branches of M&S and
other physical outlets.
PROMOTION Various social sites, Television, magazines,
radio.
4.2 Differences in marketing products and services to businesses rather than consumers
Following are the differences in marketing of products and services in both business to
business and business to customer transactions:
Business to business Business to customer
Meaning The products and services of M&S
are marketed to other businesses.
M&S's goods and services are provided
directly to the customers.
Cost M&S's cost of sale is expensive and
higher.
In B2B, cost of sale is lower.
Focus In this marketing technique, they
focus on the features of product.
Focus on the benefits of product.
Product Whole-selling Retailing
Place Business approaches through
websites, authorized agents,
Through online shopping and physical
stores are also available.
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headquarters.
Promotion Through trade discounts and sales
promotion.
Through online promotion, sale
discounts or advertisements Promotion
through advertisements,
Consignment Consignment large in size. Small
Approach This follows systematic approach
which means that they give
presentations and after that,
quotations are made.
Organization's directly approaches to the
customers.
Price Prices varies form C2C. Consumers pay the same price as other
customers.
Use They buy services and products to
use in companies.
Customers buy services and products
for their personal uses.
Decision Decision making process is more
complex.
Decision making process is easygoing.
4.3 Difference between domestic marketing and international marketing
Basis Domestic market International market
Meaning It concerns with those activities in
which transfer of services and goods
are traded within the home country.
This refers to those activities which
includes transfer of goods and services
from one country to another.
Scope Scope is limited. It has endless scope and opportunities.
Barriers In this market there no barriers. There are many barriers like difference
in culture, language, currency and
traditions.
Role of politics In this political factors are less
important.
In this market political factors plays
vital role.
Risk Marketing is less risky in this. It is more complex and risky.
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Financial
resources
They require lesser financial
resources.
They require large financial resources.
Payment In this mode of payment is normally
letter of credit.
Cash payment and plastic cards are the
mode of payment.
Transport cost They are low as compare to
international market expenses.
They are the major expenses.
Government
interference
The regulation and laws are not
much applicable in domestic market.
In this exchange takes place under
government regulations.
Market It deals with a single market. It deals with several markets of
different countries.
CONCLUSION
From this report, it can be articulated that following marketing principles is very necessary if the
firm want to create a brand in the market. It is helpful in understanding the customers needs and
wants and accordingly new product or strategies can be developed. In addition to this,
promotional activities are very essential so that customer get to know about the product and in
attracting customer's.
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REFERENCES
Books and Journals
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing(No. 7th).
McGraw-Hill Higher Education.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.
French, J., 2010. Social marketing and public health: Theory and practice. Oxford University
Press.
Nwankwo, S. and Gbadamosi, T. eds., 2010. Entrepreneurship marketing: principles and
practice of SME marketing. Routledge.
Deshpande, S. and Rundle-Thiele, S., 2011. Segmenting and targeting American university
students to promote responsible alcohol use: A case for applying social marketing
principles. Health marketing quarterly. 28(4). pp.287-303.
Parker, S. and et.al., 2011. Formative assessment using social marketing principles to identify
health and nutrition perspectives of Native American women living within the Chickasaw
Nation boundaries in Oklahoma. Journal of nutrition education and behavior. 43(1).
pp.55-62.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Bowie, D. and Buttle, F., 2011. Hospitality marketing: principles and practice. Routledge.
Smith, M.C., 2014. Principles of pharmaceutical marketing. Routledge.
Allyson Dooley, J., C. Jones, S. and Iverson, D., 2012. Web 2.0: an assessment of social
marketing principles. Journal of Social Marketing. 2(3). pp.207-221.
Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., 2012. Marketing: Concepts and Strategies.
Cengage.
Dann, S., 2010. Redefining social marketing with contemporary commercial marketing
definitions. Journal of Business Research. 63(2). pp.147-153.
Glassman, T.J. and Braun, R.E., 2010. Confusion surrounding social marketing strategies and
social norm theory: To prevent high-risk drinking among college students. Social
Marketing Quarterl. 16(2), pp.94-103.
Lee, N.R. and Kotler, P., 2011. Social marketing: Influencing behaviors for good. Sage.
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Pride, W.M. and et.al., 2012. Marketing Principles: Asia Pacific Edition. Cengage Learning.
Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
Sferle, S., Gârdan, D.A., Gudei, S.C. and Geangu, I.P., 2012. Implementation of marketing
principles–A necessity in primary school education. Contemporary Readings in Law and
Social Justice. 6(2). pp.764-773.
Corner, A. and Randall, A., 2011. Selling climate change? The limitations of social marketing as
a strategy for climate change public engagement. Global Environmental Change. 21(3),
pp.1005-1014.
Online
Marketing micro environment. 2012. [Online]. Available through:
<http://www.slideshare.net/17somya/marketing-micro-environment>. [Accessed on 11th
December 2015].
What is PESTLE analysis?, 2015. [Online]. Available through: <http://www.focus-on-
training.co.uk/business-analysis-resources/what-is-pestle-analysis/>. [Accessed on 11th
December 2015].
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