Essential Role of Marketing for Business Success

The assignment highlights the importance of marketing in the success and development of all organizations. It explains how marketing enables businesses to introduce their goods and services to customers, and how different models such as SOSTAC, situational analysis, 3P's of marketing mix, and internet marketing are used to achieve this goal. The document also references various books and journals that support the importance of marketing in business.

Principle and practice of
marketing

Table of Contents
INTRODUCTION ..........................................................................................................................1
CONCLUSION: ..............................................................................................................................8
REFRENCES...................................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
Marketing is a process which is adopted by companies to create and maintain value for
their customers and build strong relationship with customers to attain value for their products
from customers (Aubin, Luquiens and Berlin, 2014). Moreover, marketing is business actions for
promoting and selling of services and goods. It also deals with overall market research,
advertisement, promotion and market distribution. River Island is one of the leading high street
fashion brand which was set up in 1948 by Bernard Lewis. It was operated from a small shop in
London traded as Lewis Separates. This report mainly emphasis on SOSTAC model and
marketing strategy adopted by River Island. In addition, this report covers macro environment of
River Island which includes all the political, economical, social, technology, legal and ethical
factors. Moreover, this reports deals with 3 P's that is price, product and places that is in context
to River Island. All the evaluation needs that is to be undertaken along with the marketing
strategy adopted by River Island are discussed in this report.
Concept of Marketing:
Marketing deals with managing profitable customer relationship, attracting new
customers and retaining existing or current customers. River Island uses different marketing
strategies and tactics to identify, develop and maintain good relationship with customers to
enhance values for both customers and marketers. River Island has planned marketing process
which that implement to build good relationship with their customers. Firstly, they try to
understand the market place along with customer needs and wants so that they can produce those
fashion cloths that are in demand by their customers (Clow, 2013). Secondly, they construct a
marketing program design that helps to deliver superior values and create profitable relationship
with customer delight. At last, River Island finally capture value from their customer in order to
generate profits and customer quality.
River Island is high street fashion brand whose headquarter is situated at London, United
Kingdom. It is private company that is owned by Lewis family and current CEO is Ben Lewis. It
has overall revenue turnover about 92.58 crores GBP (December 2014). River Island emphasis
on their customer needs, wants and demands to target those market place where they can build
profitable relationship with customers. There is around 250 shops in 13 different countries that
includes United Kingdom, Singapore, Russia, Poland, Spain, America etc. River Island focuses
on youth, the age group ranges between 15-30 years to provide them best affordable and stylish
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clothes that is designed by house designers. River Island offers affordable apparels, jewellery
and accessories for both men and women. There is no advertisement directly displayed on
television but they do advisement in other ways. River Island uses online websites, billboards,
leaflets, transport lorries and fashion shows to advertise their products in the market. The main
top competitors of River Island are Topman, Newlook, Boohoo and Toms. River Island adopts
number of marketing methods to attract their customers, they has their own website that enables
their customers to order clothes online and with home delivery (Ennew, Waite and Waite, 2013).
They offer reasonable prices and their stores are spreaded worldwide so that customers can easily
access the products.
SOSTAC Model covering each element for River Island
SOSTAC Model is developed by PR Smith in 1990's in order to analyses and develop
effective marketing planning and practices. This model is straight forward and systematic
approach that is adopted by River Island to build up marketing planning and strategy structure
that covers and ensures all the relevant factors that is crucial for marketing (SOSTAC marketing
planning model, 2016). This model allows to avoids to go into expensive and excessive analysis
for marketing planning and practices. SOSTAC model is an acronym that covers six basic
elements of marketing planning and practices. This elements are situation, objectives, strategy,
tactics, actions and control. All this basic elements are further discussed below in detail :
Situation :- This element of SOSTAC model deals with the situation analysis that where
the organization stands in the market. It focuses on effective marketing mix, competitive
advantages along with the best segment with right type of customers. Situation analysis allows
to focus on appropriate channels for communication and distribution (Jobber and Ellis-
Chadwick, 2012). PEST Analysis is introduce as one of the main analysis of situation in
international market. With the help of this model, company easily identify laws and regulations
of country. It will also help in analyzing economic, social and technological factor and its impact
on business operations.
Marco environment analyses using PEST for River Island
PEST analysis describes an overall framework of macro-environmental factors that is
used in the environmental components for strategic planning and management (Lefebvre, 2012).
This analysis provides a framework that enables organization to investigate the external
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environment that may directly or indirectly effect the organization. PEST analysis helps to
identify ideas that may help in developing promoting principles.
Political: Politics plays an important role in business, as a result it helps to maintain
balance between system of management and free markets. Political factors includes the
governments rules and regulations, tax policies, economic policies and trade traffics. In context
with River Island, they manufacture clothes in different parts of the world. The main issues that
is faced by the River Island is the complications with the wars. Wars creates problems for
shipping from one manufacturing countries to those another countries where stores of River
Island is situated. River Island has maximum selling on their online websites, so if any policies
is changed or upgraded the international marketing issues may appear regarding to shipping. The
tax rate has raised in 2011 from 17.5% to 20%, due to which River Island faces problem
regarding selling their products (Mayer, Borges and Simske, 2018). Moreover, if River Island
decided to produce their clothes in United Kingdom to avoid wars complication with other
countries, they will face issues regarding pricing as manufacturing cost will increase
automatically.
Economical: Increase in the rate of economy may effect the company's merchandise and
services. Moreover, it may also effect the buying power of the supplier or shoppers. Economics
factors includes the interest rates, exchange rates, embody rates and economic process patterns.
Constant value of currency affects the selling rate, tourist visiting UK will do less shopping from
there as it value of money over there is more expensive. In case, price for shipping abroad
increase it will be difficult for River Island to run their online shopping business.
Social: Social factors includes assessing the mentality of the people and suppliers
worldwide. Social factors includes population demographics, changing lifestyle trends,
educational levels, dressing styles and distribution of income (McHugh and Krukonis, 2013).
River island has no role models due to which it becomes easy for customers to forget about the
brand so it important to have model face so that customers can remember about the brand and
selling of cloths increases automatically.
Technology: Technology plays an important role to facilitate a product and services in
the market. River Island uses advance online technology to sell their designed cloths worldwide.
In case, internet server would crash many challenges and issues may occur regarding selling will
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be faced by River Island. This issues may lead to decrease in the sales of cloths across various
countries.
Objectives: This element emphasis and concerned with business mission and objectives.
This element focus on overall marketing objectives and business development. The smart test is
applied for objectives to conform that business objectives are measurable and practical. In
context with River Island, their main objective and mission is provide latest new looks designed
cloths to their customers at affordable rate.
SMART Objective:
 To introduce new clothing line within 3 months of time period to increase market share
by 10%
 To reduce the costing of clothing products by 5% within next 2 months of time period.
 To increase the number of outlets by 10% in UK within the time period of 6 month
Strategy: This element of SOSTAC model deals with three main targets including
segmentation, targeting marketplace and positioning. In context with River Island, they identify
the most profitable current customer who are youth age range between 15-30 and creates profiles
on this segments. They target on these segments and try to develop their customer growth and
increase their customer loyalty and retention. River Island Use 3P's of marketing which is more
essential and effective for the to fulfill their SMART objectives easily.
Tactics: This element is concerned about how to implement planned business strategy to
gain competitive advantages. It deals with the communication tools used by the organization,
what messages should be delivered to customers and analyses necessary resources (Lang and et.
al., 2012). In context with River Island, in order to communicate they run award winning online
store. 3P's of marketing mix help and beneficial for the River Island to introduce their product,
price and place to the international clients. 3P's of marketing mix is help an enterprise to
accomplish their Smart objectives and maintain long lasting position at international
marketplace.
Price, product and place of River Island: It is a part of marketing mix which is essential
and important for the company to promote their products or services at marketplace and to the
customers. It will help an enterprise to maximise customer base and maintain long run
sustainability at marketplace.River Island is specialise in marketing or selling of designer clothes
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to the customers at affordable price. Product, price and place of the organisation are determined
as under:
Product: It is a first and main part of the Marketing mix which depict the product offered
by company. In regards of River Island, they offers trendy products with glamorous river islands
touch. They also produce key tendency from designer platform which they interpret into their
unique or new design without ripping them off. Company mainly specialise in marketing of
clothes, shoes, boots, bags, purses, accessories, jewellery, sunglasses, gifts, cosmetics and many
other. All these are main products for the company which shows business is a well-established
and popular brand name in across the globe (Moriarty and et. al., 2014). In order to produce
information about product features, company using different channels of promotion such as TV
adds, Brochures, Billboards and also advertisement in shop and on their website. In order to
achieve Smart objective, company introduce clothes variety to children's, men and women. It
will help them to maximise their market share and achieve better results within predetermined
time period.
Price: Price of a specific product is mainly the amount of money that a pays by customer
for to enjoy it. It is also a very essential and significant element of marketing mix as it
determines the profit and sale of company. In order to adjusting product price has a large effect
on the all marketing strategy and highly impacting the demand and sales of the product. In
respect of, River Island, company set their prices of product is highly depending on their rivals
actual range for the kind of goods. Company is following Skimming strategy in order attract
large number of clients. When they launch new product, price remains high but with passage of
time demand arises and manager reduces the product price. It is important and beneficial for the
organisation to maintain long run sustainability at large scale. For example: When company did
collaboration and cooperation with a designer the clothing price from that accumulation was
higher. For retaining long run sustainability at international marketplace, River Island provide
their products at reasonable price which help in attaining Smart objectives within predetermined
time period.
Place: Distribution or placement is a very essential element of the marketing mix. In this
company have to distribute and position their product or service in a location that is reachable to
potential customers (Russell-Bennett, Wood and Previte, 2013). This comes with a detail
understanding about target market or audience. Know them insight out and company will find
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the most effective positioning and channels of distribution that speak with their market in a direct
manner. In respect of River Island, stores of the company are located primarily in the shopping
centre area and in mall. An organisation also have an effective online outlet and they marketing
via both Nelly.com and ASOS.com. Business entity have approx 350 shops across, Asia, Ireland,
UK, Middle east and Europe. For example: Company wants to increase their outlets by 10% so
in this they need to establish their products or services at cloudy place where large number of
people are already existing. Thus, it will assist River Island in improvement of its future growth
and development.
Therefore, above 3P's of marketing mix is more essential and significant for the
company to expand their business operations and activities at international marketplace. It will
also essential and effective for the organization to achieve their SMART objectives in given time
duration. It will also beneficial for the organization to attract large number of customers and
achieve better results within predetermined time duration. Thus, it is essential for the
organization to have a strong market mix to make profit and accomplish the brand's goals and
objectives within predetermined time duration.
Action: This element of SOSTAC deals with action planning that who is going to
perform specific tasks regarding to marketing, advertisement and promotion. This element also
deals with allocation of resources for planning and taking further action in the future. In context
with River Island, they has talented mentally creative and innovative staff members who helps to
develop and design best designed cloths for their customers. For advertisement they used
billboards, leaflets and fashion shows to display products to their customers. Action plan
includes different points which are determined as under:
 Company wants to expand their business operations at international level through
introducing their product, price and place in a systematic manner. In order to achieve
their Smart objective River Island should focus on variety and price of clothes.
 River Island expand their 3P's of marketing mix in International marketplace. In this they
require to develop an effective strategy or policy that help them to retain long run
sustainability at global level.
 In order to expand their business operation through product, price and place in
internationally, business need some resources such as accurate amount of finding, human
resource and many other. All these are help in developing product at international level
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with affordable price and attractive location. Thus, it benefited to the River Island to
maximize customer base and increase their sales and profitability within predetermined
time period.
 Key performance Indicator is refer as a measurable value that shows how effectively a
River Island is accomplish their business and SMART objectives. With the help of this
company easily evaluate their success and growth at reaching targets. It will also help an
enterprise to achieve better results and outcomes at international level by introducing
their quality products at global level.
 In order to increase performance and productivity at international level River Island
provide better quality and variety in their clothing line to the international clients at
affordable price. Beside this, firm also use different channels of promotions to advertise
their products which help them to attract large number of customers easily.
Control: It is a last step of SOSTAC model in which River Island try to improve their
performance and achieve SMART objectives easily. As per the above all steps, it can be
concluded that company successfully develop their 3P's of marketing mix at international level.
But in this company face some issue regarding promotions, source of fund and many other.
These are hinder on business operations and performance internationally. Therefore in order to
overcome and control this, company should try to use different channels of communication and
analysis appropriate source of fund. It will help them in future growth and development of
company at global level.
Implementation of current marketing strategy in an international market:
River Island company operates in retail sector for clothing sector. River Island company
is using internet market which is important and significant for growth and development in
existing market. As managers of company are thinking to launch their brand in Asian countries
to expand business at global level. So it is important to make changes according to international
market in product and services. There is requirement of marketing strategies to enhance brand in
Asian Countries.
SOSTAC model is work as a marketing strategy which is essential and useful for the
River Island to expand their business in Asian Countries. With the help of this model, company
is able to identify political, economic, social and technological factor of country. Accurate
awareness about PEST analysis is more significant for River Island to retain long run
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sustainability in globally. This model also support in determining the basic requirement of
customers about 3P's of marketing mix including product, price and place. It will also help in
achieving SMART objective and determining the actual position of international market. Along
with this, a detailed action plan is set up to accomplish business objectives. Tactics is also
essential for the River Island because it describe the strategy and implement plan in depth.
CONCLUSION:
From the above mentioned information, it can be concluded that marketing is more
essential part for the success and development of all organisation. With the help of this, business
can easily introduce their goods and services to the customers. There are different models and
strategy are used by company to expand their business operations and maintain long run
sustainability at marketplace. As they used SOSTAC model, Situational analysis, 3P's of
marketing mix and internet marketing. All these are useful and valuable for an enterprise to
enlarge their operations and activities within predetermined time duration.
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REFRENCES
Books and Journals:
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McGraw-Hill Higher Education.
Lang, D. J. and et. al., 2012. Transdisciplinary research in sustainability science: practice,
principles, and challenges. Sustainability science. 7(1). pp.25-43.
Lefebvre, R. C., 2012. Transformative social marketing: co-creating the social marketing
discipline and brand. Journal of Social Marketing. (2). pp.118-129.
Mayer, J., Borges, P. V. and Simske, S. J., 2018. Introduction. In Fundamentals and Applications
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McHugh, M. and Krukonis, V., 2013. Supercritical fluid extraction: principles and practice.
Moriarty, S. and et. al., 2014. Advertising: Principles and practice. Pearson Australia.
Russell-Bennett, R., Wood, M. and Previte, J., 2013. Fresh ideas: services thinking for social
marketing. Journal of Social Marketing. 3(3). pp.223-238.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
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Online
SOSTAC marketing planning model. 2016. [Online]. Available through:
<https://www.smartinsights.com/digital-marketing-strategy/sostac-model/>
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