Current Marketing Strategy and Market Segmentation Analysis of Marks and Spencer

This report analyzes the current marketing strategy of Marks and Spencer, including product mix, price mix, promotion mix, and place mix strategies. It also discusses the market segmentation analysis and suitable market research for the company. The report further explores the impact of buyer behavior on the marketing strategy and justifies the chosen marketing strategy. The subject of the report is marketing, and the course code is not mentioned. The report is relevant to college and university students studying marketing or business.

Introduction to marketing

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Current marketing strategy of Marks and Spencer and position in the market:..........................3
Understanding how chosen customer groups will grow business within retail marketplace:.....5
Market segmentation analysis and suitable market research ......................................................6
Analysing the buyer behaviour and justifying the marketing strategy........................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is one of the most important pillar of every business organization that provide
support to business operation, this is key activity that not only used as promotion of product and
service but marketing is performed to keep greater footprint in business world. Marketing is
process of reaching target audience and selling them product and service, certain promotional
activity is being crafted according to the product. This study is based on Marks and Spencer; this
is one of the finest clothing retail brand in the UK who have wide range of product dealing in
almost every international market (Bala and Verma, 2018). This report will discuss current
marketing performance of company and current marketing strategy. Later this report will discuss
position of marketing strategy of Marks and Spencer in target market. Later this report will
discuss two sets of market segment criteria which can be targeted successfully. At last this report
will discuss customer group and how this impact business growth mainly in retail marketplace.
MAIN BODY
Current marketing strategy of Marks and Spencer and position in the market:
Marks and Spencer is one of the largest clothing retail brand that have brand image and
reputation in the market, this company provide the finest clothing to almost every customer
segment including elite group with stable income (Blut, Teller and Floh, 2018). Marketing of
Marks and Spencer allow them to cover every important area. For example, target customer,
target market and other element. Marks and Spencer focus on marketing mix, these are:
Product mix strategy: Product mix is one of the most important element in the marketing
process, almost every business organization focus on keeping marketing strategy effective by
focusing on product mix. Marks and Spencer have wide range of product which keep them ahead
of competition, current marketing strategy of this organization completely depend on product
range of the firm. For example; Sustainable product or clothing is current marketing strategy in
which Marks and Spencer cover current market trend. Consumer demanding sustainable clothing
in affordable price range which mean Marks and Spencer have included product related to
sustainability (Lim, 2021).
To meet the goal of current sustainable marketing of Marks and Spencer, this company
focus on collaborating with sustainable supplier who are ready to provide eco friendly raw
material to manufacture eco friendly product. Marks and Spencer know sustainability is one of
the emerging trend after COVID-19 impact, they drive their marketing under sustainability topic

to attract more customer. They started this marketing process by focusing on either modifying
product or brining something new related to sustainability so that consumer become potential to
the firm. Marks and Spencer also spend their budget and finance on product packaging which
allow them to attract potential consumer.
Price mix strategy: This is another important element of marketing mix where business try to
play with price to attract customer and make their marketing effective. Price is one of the most
common factor of marketing which have ability to attract customer from different target market,
pricing strategy is element in which company adopt one pricing strategy (Rust, 2020). Pricing
does matter when it comes to marketing, this is one of the best way to attract consumer. Current
pricing strategy of Marks and Spencer is dynamic which include both penetrating pricing and
skimming pricing allowing firm to reduce or change price according to market demand.
Keeping price dynamic provide competitive advantage to the Marks and Spencer and
allow them to attract consumer, they introduce new concept in clothing area by keeping price
low to attract consumer. With sustainable clothing, pricing is also sustainability which simply
means even sustainable cloths are available in affordable price range. The Marks and Spencer
have brought major changes in marketing process, pricing strategy of firm was changed after
COVID-19 impact because spending capacity of consumer is low and their purchasing power
was also impacted. Marks and Spencer have kept pricing dynamic because they believe, there is
instability in market where trend keep changing and influence price.
Promotion mix strategy: This is most important element of marketing mix which allow firm to
promote their product and service, promotion mix simply means firm will focus on using
promotional tools and platform to reach as many audiences as possible. Marketing strategy
completely depend upon promotional mix in which tools and platforms are been used by the
company. Marks and Spencer currently focusing on digital marketing strategy to cover current
trend and consumer needs in the market. Current marketing strategy of Marks and Spencer
completely depend upon digital marketing in which they try to create marketing campaign.
Recently, Marks and Spencer introduced new product line based on sustainability, and
they promoted under sustainable marketing campaign where they highlighted each and every
benefit of adopting sustainability at every point of lifestyle. Marks and Spencer heavily relay on
social media marketing in which they try to reach as many audiences as possible, this company

have brand image all over the world which allow them to become attractive and even
competitive in highly competitive market.
Place mix strategy: Place does matter when it comes to marketing, every business organization
know that if their product are not perfectly placed in the market then there will be no sales. Place
is area in which company sell their product for example; store or shop, this is important element
because firm need place to show their product (Thabit and Raewf, 2018). Current marketing
strategy of Marks and Spencer depend digital place in which firm try to take order online and
focus on digital transaction.
It is very clear that place mix allow firm to position themselves in the market, Marks and
Spencer's stores can be seen in crowded area. For example; Malls, shopping centre, corner area,
street and near international destination in which consumer flow can be seen. Every organization
want their product to reach target audience, positioning strategy of business need to be effective
enough. Marks and Spencer know how to position themselves in the market by considering place
mix of marketing mix.
Understanding how chosen customer groups will grow business within retail marketplace:
Every business want continuous growth in the market which allow them to enjoy success,
it is very clear that business growth depend on certain factor include right customer group and
right targeting process (Li and et.al., 2021). Customer group does matter when it comes to
positioning a brand in the market, firm might adopt certain marketing strategies after reviewing
customer group and their demand. Marks and Spencer is one of those companies who focus on
selecting right customer group to target and to sell their product, this business organization
consider some important element related to customer group, these are:
Age factor: Age factor is one of the most common but important factor which drive grow in the
business, this element of customer group is important because of firm do not know about target
age group then they can not segment their product accordingly. It is very clear every product is
design according to age group, a car manufacturing business will target age group between 30 to
45 because they believe this is age where consumer has sufficient budget to spend on
transportation, and they also carry experience and personal want to have a car. Marks and
Spencer know that age factor is important, most of their customer group are divided according to
age group of 45 to above because they believe their product are design in such a way they it meet
the demand of this age group.

Socio economic factor: This is another important customer group area in which company focus
on social and economical factor, this simply means occupation level, occupation status and
income level of the customer. Socio economical factor is important when it comes to marketing,
business need to consider income level and occupation level before reaching target customer,
customer group is segmented into socio-economic elements. Marks and Spencer is one of those
companies who target their audience according to income level occupation level allowing them
to be clear and get business growth. For example; Marks and Spencer target elite customer who
have income and spending capacity whereas they also target according to occupation level which
denote purchasing power of customer.
Taste and preference: Taste and preference of every customer group is different, here customer
demand those products and service which meet the expectation. Every business organization
know marketing depend on taste and preference of customer, current trend in market allow firm
to become effective. This element of customer group impact firm's marketing performance
because business need to make marketing strategy according to the taste and preference. For
example; Marks and Spencer target age group of 45 which means they know the taste and
preference of that particular customer group (Tang and Peng, 2019). Covering every important
part become essential when it comes to boosting business growth. The Marks and Spencer design
their product in such a manner that it meets the demand of target customer in the market, this
company know how to segmented their customer group according to taste and preference.
Market segmentation analysis and suitable market research
Market segment criteria usually entails homogeneity among the market area where the
major highlights are segment’s key uniqueness, requirement and common marketing tactics.
Reaction from the segment to marketing strategies is predictable (Taleizadeh, Rabiei and Noori‐
Daryan, 2019). Generally basic market segments attributes concern with interest, lifestyle and
other demographic aspects. It is found that among all segments demographic is the most chosen
one by the businesses as it involves common criteria and since information can be easily
collected that makes firm to easily target their market to grab audience’s attention. M&S is one
of the leading and giant multinational firm that mean they concerns with every segment and also
offers the services to their customer in every market segment.
Demographic segment: In this segment it involves the criteria like age, gender, income level,
ethnicity, cultural aspects on which the consumer are divided. For M&S they divide their

consumer on the basis of gender, age, income level and provide them their offerings in order to
expand their market share in this segment.
Geographic segment: It consists of the geographical location where the customers are divided
on the basis of region from which they belong. M&S is multinational company which means that
they have potential customer base in every country, region (Osei and et.al 2021). In this segment
they target their consumer according to their geographical location.
Psychographic segment: This involves the personality, emotions which are influenced by the
behaviour. It is also associated with the purchasing choice that highlights attitude, risk aversion
and other factors. M&S uses this segment to provide special offerings to their target consumer
with aim to meet all their requirements.
Behavioural segment: In this it entails the purchasing nature, brand loyalty, advantages sought,
distribution channels etc. M&S also divides their consumers on the basis of their behaviour and
ensures to provide the products to their consumer which completely satisfies them.
Therefore, it is recommended that company should proceed to use the demographic and
geographical segmentation for increasing their revenues. With the demographic they can deliver
customised products to their consumer and by using geographical segment they can easily
proceed with adding the regional aspect in their product that will satisfy the requirements of the
consumers in particular locations.
Targeting: (differentiated marketing): This marketing strategy provide the clarity, it also
considers as the segmented marketing strategy that encompasses isolation of the number which is
usually two of the primary target market segment that are estimated to provide greater value to
organisation. once the firm has decided to targets the segment then they proceed to make
separate strategy to address every market segment requirement (Proebsting, 2022). As for the
M&S with this approach they don’t just churn out the goods which are similar and have no
rareness, but instead they can easily deliver the products based on consumer demand in every
segment, it will help in acquiring greater market share and to generate more revenues for the
business.
Positioning: It is the most important aspects which the organisation ensures to positioned their
products in the market which can easily grab the attention of the customers. For M&S they need
to proceed with their marketing mix aspects in order to drive attention for their brand (Lukac,

Doerflinger and Pulignano, 2019). As company deals with the clothing and food for that they
need to focus on their consumer choices and make their products according to their demands and
also to set the unique pricing which will attract the consumer towards it.
It is found that company’s target consumers are of age 45 and 50 plus where the company
has categorised into the different groups that are occasional, core and top. This retailer firm is
also finding the other range of options like to work with other third party brands which are
wholesalers, strategic acquisition in order to increase their market share and makes their firm to
produce more desirable results.
Analysing the buyer behaviour and justifying the marketing strategy
Consumer behaviour refers to the study of buyers who are present in the market, in this all
activities are linked with the purchase. Buyer behaviour involves emotions, their attitude towards
the particular products and services (Wu and et.al 2018). Marketing strategy for any organisation
plays a significant role as it helps the firm to promote their items at greater extent and to make
their products in front of consumers to gain their attention. Mark and Spencer company is one of
the leading British retailer, they deal with varieties of products and services which they offer
worldwide. For the company they provide better and qualitative products to their consumers
which meets all their demands. Buyer behaviour have major influence over the firm, as their
behaviour is influenced by the social, psychological and other cultural factors. Therefore, it is
important for the firm to deliver the goods that do not offend their cultural and other values
instead meet all their requirements (Saleem, Eagle and Low, 2018). It is found that usually
buyers categorised in an extended decision making, limited, habitual and variety seeking
consumer behaviour. In extended category customer generally buys a product instead the
expensive product. For an example customer always look into the information and other factors
before taking decision to make purchase. Whereas limited decision making when the buyers
generally interacts with the limited decision making. It means there is a limiting availability of
the products in the market. Therefore, in such case M&S can begin to provide the product which
consists of the uniqueness and other aspects that cannot be replaced, it will make their customer
to be loyal with the firm and buys their product instead of buying from their rivalries.
Current strategy which the M&S follows is brand strategy which helps them to be more
relevant to the customers. Company can proceed to use the cost leadership, differentiation and
focus strategy as a marketing strategy through which they can be able to satisfy their target

consumers by providing them qualitative products and services (Taylor-West, Saker and
Champion, 2020). By using cost leadership strategy, they will be able to gain the competitive
benefits, main objective of this strategy is that to preserve the leadership in market through the
effective value chain management. This strategy will also enable the mark and spencer to
enhance their market share by targeting the consumers that are of middle class as it makes the
huge difference in overall customer market mix. Other advantage which they get from it as they
can easily achieve the brand recognition, increasing customer base.
M&S can also proceed to use the differentiation strategy; it will allow them to expand
their customer base by analysing the things which makes the products more unique. Through this
strategy they can easily differentiate their products as by involving innovation within it. for an
example company can easily extend their product line as by making innovation to make product
more health conscious, thus it will help them to attract the attention of customers. Moreover,
company can also be able to implement the focus strategy, as it will enable them to more
concentrates on their resources to expand it narrowly within the targeted segment. Thus company
can begin to adopt this strategy as to offer the products at best value and of low or affordable
cost. It will allow them to serve in a niche market segment.
Call to action can also be a better marketing strategy for the firm, for an instance business
generally offers their product by linking it with special offers and often provides discount over it
to get larger audience’s attention. But it is not enough, thus M&S also need to be more careful
regarding their call to action as to provide brief information about their next launch, and provide
information what they will offer as a service, thus it will help in engaging customer with it. with
this strategy there is a less probability of risk.
CONCLUSION
From the above report it is concluded that marketing strategies and tactics plays a crucial
role for the promotion of organisational products and services. Following have illustrated the
range of discussion over the organisational marketing strategy where the focus is on specified
firm. It included the discussion over the marketing audit of company’s current business
performance, it further included the description about the firm’s current marketing strategy and
its position in the market where it covers the marketing mix 4p’s analysis of the firm. Moving
further report have illustrated the discussion over the organisational market segmentation where
it included the segmentation, targeting and positioning analysis of the firm, it discussed how firm

divides their customer on the basis of the demographic, behavioural, geographical segments.
Further it discussed the targeting strategy where it highlighted the differentiated strategy which
the firm utilised. It also highlighted the description about market research for firm, report lastly
concluded with the discussion over buyer behaviour and also included the justification over the
marketing strategy.

REFERENCES
Books and journals
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customer group preference. Research in Engineering Design, 32(4), pp.469-488.
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Marketing, 29(5), pp.453-469.
Lukac, M., Doerflinger, N. and Pulignano, V., 2019. Developing a cross-national comparative
framework for studying labour market segmentation: Measurement equivalence with
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Management, 89, pp.102-104.
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conscious consumers’ behavioral intentions: Evidence from an emerging
economy. Journal of cleaner production. 193. pp.14-27.
Taleizadeh, A.A., Rabiei, N. and Noori‐Daryan, M., 2019. Coordination of a two‐echelon supply
chain in presence of market segmentation, credit payment, and quantity discount
policies. International Transactions in Operational Research. 26(4). pp.1576-1605.
Tang, Y. and Peng, Z., 2019. A customer group mining method based on cluster analysis.
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Singapore.
Taylor-West, P., Saker, J. and Champion, D., 2020. Market segmentation strategies for complex
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Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
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