This document provides an overview of the principles and practices of marketing, with a focus on the promotional mix strategies of Debenhams. It explores different marketing models used by the company and discusses their effectiveness. The document also includes a company overview of Debenhams and its various brands.
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Principles and Practices of Marketing
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Company overview.....................................................................................................................1 Promotional Mix.........................................................................................................................2 TASK 2............................................................................................................................................6 AIDA Model of Marketing.........................................................................................................6 AIDA Model in Context with Debenhams..................................................................................7 Evaluation of effectiveness........................................................................................................8 Pull and Push Strategies of Marketing........................................................................................8 Pull and Push Strategies in Debenhams......................................................................................8 Evaluation of Effectiveness.........................................................................................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Marketing refers to the process of promoting organisation's products and services to large target market. There are various promotional activities that are undertaken by firms in order to communicate and interact with target audience related to product and its benefits. Main purpose of marketing is to attract potential and retain loyal customers. There are four basic principle of marketing such as price, place, promotion and place (PRINCIPLES OF MARKETING,2020). While practising marketing function management require to consider all these principle in order to formulate effective strategy. Debenhams is a British Multinational company which deals in variety of product portfolio that involves fashionable clothing, gifts and toys, beauty products, home-ware so on. Company owns various brands and also numerous department stores. This reportcontainsdetailinformationregardingpromotionalmixstrategiesofDebenhams. Moreover, it exhibits different marketing models that are used by following firms. TASK 1 Company overview. Debenhams is one of flourish and leading fashion retailer brand placed in UK. It is a British multinational organisation operates wide range of department stores within London, Ireland as well as Denmark and have other franchise outlets in different countries. Debenhams was established in 18thcentury with single outlet in streets of United Kingdom and spread as well as grown up-to 200+ locations across overseas. Company deals in variety range of fashionable clothing , home-ware items, personal care, furniture so on. Debenhams has its headquarters in Regent's Place, London in addition to this firm owns Danish department store chain along with Magasin Du Nord and also subsidiary in Ireland. Company serves various range of product portfolio including fashionable western clothing, shoes, toys, accessories, cosmetics, electricals, households, quality furniture items. Debenhams is a private owned limited organisation and work with around 27800+ employees. Company has its own several brands such as Wallis, Phase Eight, Kley, Levis, Vero Moda, Faith, Carvela, Skechers, Oasis, Vila, Fitflop and more. In 1993, company presents its first brand under name “Designers at Debenhams” in which various designers contributed their work and provide wide range of fashionable products. In 2010, firm launched four fresh designers into its fashion series. In 2014, firm introduced trial of sports direct 1
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concessions in its Harrow and south seas stores so that if it get successful in market then it would be enlarged in further stores. Later, in same year it launched brand of Costa Coffee in addition with Mothercare within other outlets. Moreover, in 2016 company declared that its focal point would be food, beauty products and gifts too other-than clothing. Although, company regulates its retail online stores in UK and Ireland along with mobile enabled applications as well as websites that allows buyers to shop or purchase online product range and scan barcodes product in offline stores. Furthermore, company offers lucrative deals to customers also it provide facilities such as store cards, credit card services. It provide service of insurance products under its brand name by other financial institutions. Also, in order to retail its loyal and potential customers Debenhams organizes loyalty card programme, Beauty Club in which consumers can create as well as redeem points with procurement of health and beauty products. At present, firm owns and regulates approx 240 physical stores in United Kingdom, Ireland, Denmark. Outlets in Denmark trade of selling and purchasing undertake under name of Magasin du Nord brand and in Ireland under name of Debnehams Ireland. During 1970s, majority of all original trading names of different stores were replaced by name of “Debenhams” and at present all department outlets trade under “Debenhams”. Company has its international franchises among various different countries. Vision statement of organisation is “ to be one of the world's leading multinational and international brand”. Mission statement of firm is “to make shopping sociable, fun loving for consumers by providing unique, differentiated and exclusive combination of own brand and concession”. Promotional Mix Promotional mix it one of the element of Marketing mix strategy which ensures promotion of organisational products and services to target market. Promotional mix describes combination of various different promotional activities or tools undertaken by management of business in order to generate, sustain and expand demand for products and services. Moreover, it is a process of stimulating or trigger the number of buyers willingness to pursue or use new product proposed by company(Fletcher and et.al., 2017). It mainly emphasis on spreading and creating awareness regarding brand and its goods. Several tools that are being used by companies are known as promotion mix strategy. In order to achieve best marketing results, firm utilise its budgets by allocating them effectively in different components of promotional mix strategy. This particular mix is comprises of various activities which includes advertising, personal selling, 2
public relations, direct marketing,sales promotion, corporate image, sponsorship, product placement, digital marketing etc(Lim,2016). these tools are basically focuses on target audience and used to communicate about product features to target market in order to achieve organisational goals and profits. Debenhams is one of largest and well established international organisation which has its own various brands under which it sell and produce products ton target customers. Company always try to be at pioneer stage in order to serve its products and services for that it conduct various promotional activities. Through these activities company enables to attracts and retain its loyal as well as potential customer base. These tools helps firm to communicate and interact withlarge audience as well as clients effectively and efficiently. Also, display a distinct position of company's brand as compare to its competitors. Some of promotional activities that Debenhams used is are explained below (Debenhams Company Integrated Marketing Communications,2020). Advertising:it is one of the common and popular tool of promotional mix that is undertaken by every organisation(Lee, 2016). Advertising refers to any one-way or impersonal paid communication which specify name of company that make use of this tool. It describes any paid form of non-personal presentation as well as promotion of products through identified sponsor. With help of advertising tool marketer try to establish a pull strategy in order to instigate customers to buy or try out particular product at once for a while. It enables firm to provide relevant and complete information regarding product and serviceswith help of attractive graphics, audio visual sound for purpose of affecting customer's purchase decision. In context with Debenhams, company advertise its product thorough various advertisement campaigns and events including all accessible media channels such as television, print (newspaper, magazines), online , mobile ads so on. Company main aim of doing such campaign is to integrate sales and promotional activities together in store, websites, Kiosks, international franchise stores, mobilecampaignsetc.In2011,companyintroduceditsexclusiveMother'sDay campaign that was telecast on TV. Sole purpose behind launching such event is to target all possible customers of different shapes, sizes. This campaign featured those models who were disabled, petite, tall, skinny, black in order to convey message that all women are beautiful in their own way. Moreover, in order to target its older age customers 3
company launched a print campaign in addition to this firm also launched its first iPhone application with purpose of entering in mobile marketing. Public relations:it refers to process of providing information regarding organisation product or services which is undertaken by third party in an indirect manner. It is also known as publicity that can be attain by presenting an essential news story indirectly in media or by press releases as well as corporate parties. These promotional activities are useful in building a positive and healthy public image of organisation that supports introduction of new products/services, boost up sales(Nwankwo, 2015). Further, it enables firm to evaluate public perception towards company's goals and products.In context with Debenhams, company make use of social media, reporting through financial and social audit along with CSR activities in order to enhance and sustain healthy public relations. Debenhams has enlarge its presence in social media platform such as Facebook, Twitter, Instagram with purpose of maintaining a positive public image through these websites. This enables firm to interact with its potential customer regarding its upcoming events,products,activitiesandalsounderstandtheirneedsandrequirements. Furthermore, organisation shares its financial and governance disclosure every year in order to convey its really and relevant information to its customers. Company also take various initiative in order to preserve ethical supply chain,consider all environmental 4
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safety standards as well as responsively act towards welfare of society. Moreover, it provides Corporate social relations report to display social attempts taken by company. Also,inorderto preserveitspublicrelationsandimageorganisationdonatesin fundraisers and always be active in participating social awareness events. SalesPromotion:thisanotherelementofpromotionalmix.Itcontainsvarious promotional techniques that helps in boosting up sales for firm which is generally based up on short terms goals(Rundle-Thiele, 2015). It is media or non-media marketing tool that are used for pre-determined time in order to raise buyers demandand enhance product accessibility. This tool includes coupons, product samples, rebates, trade shows, exhibitions etc. it is an important component of promotion for retail organisation. In case of Debenhams, company largely incorporated in sales campaigns for both online and offline stores. In order to boost up company sales, it offers customer loyalty schemes in terms of Plus Card. In addition to this, company also introduced in-between season sale that is unique practice for firm as sale provided during festive occasion or end of season. Although, in order to raise sales company indulge in various events like Half the Price sale in all physical stores in UK, Edition Pop-up Stores , Free Coffee with Foursquare so on. All these events are especially done for raising customers sales and data base. Along with sales promoting events, Debenhams also maintain standard of personal selling. Recently, firm has launched Debenhams Direct service that facilitate customers to buy products online from selected UK department stores. This enables firm to enhance its customer experience and convenience. 5
Direct Marketing:this particular promotional tool allows business firms as well as non profit organisation to interact directly to consumers through mobile messaging, email, interactive consumer websites, online display ads, catalogue distributions so on(Bush, Bell and Middlewood, 2019). In context with Debenhams, company do its direct marketing activities through e-mail marketing in order to facilitate customer direct buying opportunities and promote its product online so that they can purchase products from department stores online by using Debenhams Direct. This email marketing permits companytodirectlyreachoutitscustomer.Moreover,withhelpofcustomer management program it enablesfirm to collect relevant data related to customers which allows direct marketing to consumers. Internet Marketing:Digital or Internet marketing refers to various activities which are used for promoting or marketing of products with help of digital technology. It mainly concern with display advertising on social media sites, mobile applications, online portals for purpose to promote organisation's products at large extent(Firat and Dholakia, 2015). In context of Debenhams, company make use digital marketing which includes its online stores www.debenhams.com and its presence on social media such as Twitter, Instagram, Facebook so on. This provide access to customer to directly connect with online store of company. Also, these activities enhance its public image and increase its sales. Sponsorship:this particular promotional tool is used for creating positive publicity through sponsoring any event, contest, TV commercial. In other words, it refers to an act which provide financial support to a campaign, activity, person or organisation. It is a fee paid activity. In case of Debenhams, company do sponsors various events and campaign programs in order to increase its brand presence within market and promote its products at large extent. Company has sponsored various campaigns such as Red magazine's fashion supplement and Neighbours on Channel 5 as TV SponsorshipChautard and Collin-Lachaud,2019). TASK 2 AIDA Model of Marketing. AIDA model is an abbreviation which represents four elements such as Attention, Interest, Desire and Action. This particular model is being used in marketing function that justify 6
the various phases by which customer perform process of buying a product. This model generally describes stages that arises by the time when customer begins to being aware about product or brand through to when they tries product and finally decide to purchase same. This model justify how an advertisement message instigates and mobilize buyers in that particular brand choice(Dietrich, 2017). It includes four stages that are explained below: Attention:this stage states that in order to promote any product or service it is required that particular product should be able to garb attention of consumer. Also, marketing team of organisation require to know how to attract attention of consumers through which promotional strategy. Interest: After garbing attention, next step is to maintain and raise customer's interest level towards products. In such stage, buyers are aware and show interest through learning regarding product benefits and how it enhance their lifestyle. Desire:after arousing consumer interest regarding product, next step of this model suggest that company require to formulate strategy to instigate consumers to desire it or buy it. It refers to conversion of mind set from 'I like it' to 'I want it'. Action:last step of this model states that after arousing customer desire firm ultimate goal is to motivate customer to take initiative and purchase that product(Hutchinson and et. al., 2015). 7
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AIDA Model in Context with Debenhams. Debenhams Christmas Ad Campaigns During Christmas time, Debenhams promote its wide range of products and services through Christmas advertisement campaigns in order to attract large customer base towards department stores. Attention:at this stage, debenhams display or present its product range through TV commercial, billboards, hoardings, banners, pop message on social media in order to create a long lasting influence on customer's minds. Interest:in order to keep the customer's interest level high and retained. Debenhams display and reflects benefits, offers that customer get after doing purchase from its department stores.These benefits can be exhibits through TV commercials and digital marketing. Desire:in such stage, Debenhams maintains effective personnel staff at its department stores in order to stimulate consumer willingness to purchase so that they definitely shop form its outlets. At this stage, staff attend its potential buyer and highlights outstanding features of its products which they won't get in other stores. Action:in such stage, to trigger out customer decision regarding purchase Dedenhams staff tries to provide various offers like home delivery services, exchange offers, referral discount etc. so that customer take buying decision on spot(Wood, 2019). Evaluation of effectiveness ThesecampaignsareveryeffectiveandefficientforDebenhamsasitraiseits productivity and profitability. Moreover, company can make use of brand ambassadors and celebrity faces in order to attain more attention from its customers so that it create trust as well as loyalty. In stage of interest, company can make use of live chats and display its products at large extent on social media so that every time customer look after its products ads whenever they sign in. Also, in stores staff should provide demonstration of some specific products and solve all queries on spot. All these actions will increase its customer base and brand image in market as well as it raise its revenue and profits. Pull and Push Strategies of Marketing. Pull Strategies also known as pull promotional strategy which enables an organisation to increase or expand demand for its product and services as well as draws attention of customers 8
towards its product. Main aim of this strategy is to instigate more and more customers to purchase that particular good. Also, it used to make a consumer active in order to search a product(Lerman and Mejia, 2019). Through this strategies organisation directly sell its products to end users. This strategy includes social media networks, word of mouth, media coverage, sales promotion, advertising so on. Push strategy refers to those course of activities which are used by firm when they attempt to take their products to target customers. This strategy is used when consumers are not showing interest towards or actively seeking a product. Push marketing is adopted through displaying advertisement, cold emailing, and placing product information directly in front of buyers so that it increase brand awareness and its sale. Pull and Push Strategies in Debenhams. Pull Strategies:in order to attract large number of customers toward its brands and department stores Debenhams can make use of this strategy so that consumers can automatically come inoutlets and make purchase decision. In such case, Debenhams makeuseofvariouspromotionaltoolssuchaseffectiveadvertisement,media promotions, sales promotion techniques in order to generate brand loyalty and retaining potential customers. Debenhams peruse these strategy in order to spread awareness about its product and to attain long term sales goals. Also, company make use customer relationship management which exhibits that it understand and take care about what exactly they want. Push Strategies:in order to create demand among those customers who are unaware about or less interested in its products as well as brand. Debenhams timely introduce various innovative packaging designs on occasions so that people get attract towards its brand and stores. Also, company make use direct selling and promoting to customers within its department outlets. Moreover, it organises various campaigns, events and trade shows to convince suppliers as well as customers(Tontuș, 2018). Evaluation of Effectiveness. In order to judge effectiveness of above model, company can make use of KPI (Key performance indicators) on basis of its sales analysis. In case of pull and push strategies, company measure how much customers are get influenced through its advertisements, social media account etc. company also evaluate through google analytical services by which it can 9
understand its position according online trends and can modify its products accordingly. In order to improve these strategies effectiveness company can make use of multiple marketing tactics which includes search engine optimisation, search engine marketing, social media advertising so on so that it impact more effectively on customer's purchase decisions. 10
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CONCLUSION From above research report it can be concluded that marketing is an essential aspect for businessorganisation.Marketingfunctionshasnumber of principlesthatare exercisein practising various promotional tools in order to promote organisation's products on larger scale. There are numerous promotional techniques that are carried out by company with purpose of presenting and promoting regarding products features, price, benefits so on. Each tool has its own strength and weakness that required to be consider by firm in order to select suitable one. These techniques helps in spreading brand awareness and maintaining positive public relations. Moreover, there are different marketing model or theories that are undertaken by firm to attract more and more customer base. 11
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