Principle and Practice of Marketing PDF

Principle and practice of
marketing

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