Strategic Use of Social Media for Small Business

The assignment provided is related to strategic marketing communications and the use of social media for small businesses. It involves analyzing case studies, such as Selfridges, and applying theoretical concepts, like Porter's Generic Competitive Strategies, to understand the implications of Facebook marketing for organizations. The document also includes a literature review on mobile marketing, its value for consumers and retailers, and online promotional strategies.

PRINCIPLES AND PRACTICES OF
MARKETING

TABLE OF CONTENT
INTRODUCTION...................................................................................................1
MAIN BODY...........................................................................................................1
OVERVIEW OF ORGANIZATION.....................................................................1
TASK 1.....................................................................................................................3
TASK 2.....................................................................................................................9
Marketing theories.......................................................................................................................9
AIDA model................................................................................................................................9
Pull and Push marketing strategy..............................................................................................10
CONCLUSION......................................................................................................13
REFERENCES......................................................................................................14

INTRODUCTION
Principles and practices of marketing play a vital role in creating awareness about business
products and services. The principle of marketing of organization are based on 4 P’s that is
product, place, price and promotion whereas practices of marketing are based on promotion and
selling attribute of firm. The assessment will outline promotion tools used by Selfridges a
departmental store and company of UK. The innovation and marketing strategy of business are
consumer centric and therefore the firm has strong control over its online and offline shoppers.
The study will be supported by academic literature which will comprise detail analysis of
customer relationship management, porter generic strategy, promotion mix, digital promotional
tools, etc. Thus, the report will outline 3 marketing theories which are used Selfridges to
marketing and promotion.
MAIN BODY
OVERVIEW OF ORGANIZATION
Selfridges is a high end department store and company which is part of fashion retail
industry and has wide range of latest designer collection of all genders. The firm has professional
network across UK and is voted as best department store across country. Selfridges store sells a
wide selection of high end items, such as clothing, jewellery and technology. The company is not
limited to apparels but deals in variety of beauty and gift products like eyeshadow palettes,
exclusive range of makeup kits, toys and article for family.
However, in 2017 the net worth of Selfridges was approximately 331.2 million pounds.
Presently 300 employees are working with an organisation on shop floor and same number of
workforce is at its branded retail concessions. The firm has 300 stores where in all the focus of
management in on delivering one kind of experience to all its buyers. In addition, to boost sales
and increase consumer base the company offers its high products online across the globe.
The firm is highly focused on concept and visual merchandising like Primark denim department
is not set in discrete are and just walk away separates two studios. This is the best strategy which
encourages everyone to be part of Selfridges but the firm has drawn line between its services and
which are yet to be offered. Prices of denims are an offer in Primark Selfridges for impulse
purchases. This is the marketing strategy of company which confuses shoppers to buy either one
pair or two of different brand but at low price.
1

Figure 1: Promotion Sales
(Source: Selfridges Discount Codes November 2018, 2018)
The annual profits of Selfridges were 152 million pound when its gross sales increased by
5 % that is 1.4 billion pound (Revenue of Selfridges Retail Limited worldwide from fiscal year
2011 to 2017* (in million GBP), 2017). The noticeable increase in sales and turnover of
company is because of increasing sales of high end products where the company initiates to
launch its designer item and exclusive range for limited period of time with the motive of
managing profits. Apart from this, the company focuses on increases staff for every store in
order to manage customer query like sales associate of retail store are responsible for handing
visitors. This is done by company to demonstrate value of shoppers to company. Apart from this,
the managements of Selfridges offer reward schemes and loyalty card discounts which aid in
protecting interest of purchased and motivates them to buy again.
2

Figure 2: Selfridges discount voucher
(Source: Conference Venue Special Offers, 2018)
The major focus of Selfridges is on continuous marketing and promotion where the organisation
makes use of different promotional tool that is digital marketing, billboard, personal selling, sales
promotion, television, radio and customer relationship management. The shared values and
perspective of company promotes value for money concept. Further, the departmental store also
focuses on post sales services where shoppers are free to share their feedback or complaints in
case of any problems of issue with product (Challagalla, Murtha and Jaworski, 2014). Thus, it
can be said that the best part of Selfridges is ambience of store the company has segregated
section for different commodities and the segmentation is done with walk ways space which
helps customer in easily tracking and exploring all the products in one visit. It also present clear
view of different section and departments of stores that is beauty, gifts, designer and many more.
TASK 1
According to Mulhern, 2013, marketing plays crucial role of business as it helps the company in
creating awareness about its products and services. It is the best approach to reach consumer and
encourage them to buy certain commodity. The author discussed about most used marketing
strategy that is promotional mix where the firm is able to introduce its products with specific
price. This helps in gaining attaining of segments shoppers. Further, with the help of this strategy
management is able to derive best promotional tool which can be effective for offering particular
3

product like, discount, schemes or just advertising. However, Burchell, Rettie and Patel, 2013,
has stated about 4 P’s of promotional mix that is sales promotion, advertising, personal selling
and public relations. It is combination of different methods of promotion which are used by
company to blend its ales. For example, Selfridges make use of personal selling where the focus
of store associates of retailer in on analysing unique clothing needs of buyers with the help of
which designers of store are able to make customized dresses which helps in attaining success
over personal selling promotional approach. On the other hand, departmental store focuses on
sells promotion in which the organisation offers specific discounts for limited period of time with
the motive of boosting sales.
Figure 3: Window display of Selfridges
(Source: Window Displays at Selfridges in London, 2011)
Marketing and promotional strategies
Baker, 2016, articulated that apart from promotional strategy it is important for the company
to incorporate basing enhancement strategies to gain consumer attention and to demonstrate them
their value for store. Like there are various fashion retail stores who have assistance staff who
helps shoppers while shopping like showing them clothes according to their buying preferences,
helping them for look of the apparel or pricing. Further, ambience of department store plays
vital role in attracting shoppers because it is the physical evidence which demonstrate company’s
efforts to make services valuable. Likewise, atmosphere, sales associate, music and windows at
4

correct location are another marketing strategy which helps in gaining buyers attention and
promoting sales.
Figure 4: Porter’s Market Positioning Strategy
(Source: Porter's Generic Competitive Strategies (ways of competing), 2016)
According to Hendrix, 2014, Porter’s generic strategies is the model which is used by
business to attain competitive advantage and to attain cost effectiveness. The firms use this
model to attain cost leadership as it helps the organisation in differentiating products and its
prices according to consumer requirements. For example, Selfridges uses this to stimulate
demand for gaining market share by offering products at relatively low prices. On other hand,
there is customer relationship management where the focus of companies is on making use of
different strategies and technologies to interact with buyers. Direct communication with buyers
helps the company in managing their queries easily and in addition helps in managing products
innovation according to interaction with buyers. It is analysed the most companies make use of
this strategy because it helps the business in consumer retention and driving growth of sales. For
example, Selfridges focuses on CRM by connecting with shoppers via social media platforms.
This promotes easy communication and helps in understands need of international buyers.
Likewise, it is the most approachable way of a marketing and interacting with shoppers because
5

it not limited to one country and helps the company in easily connecting with its online
purchasers.
According to Kitchen and Burgmann, 2015, segmenting, targeting and positioning is
another strategical approach which helps the company in understanding buyers needs and
dividing them accordingly. Like, in segmenting firm is able to divide shoppers according to their
demographic psychographic and behavioural characteristics. Further every segmented shopper is
targeted according their listed need and buying abilities. This helps the business in simplifying
needs of shoppers and market accordingly. This is most effective approach because it assists in
maintaining cost effectiveness of marketing strategies by posting shoppers according to
segmentation and targeting. For example, Selfridges segments customer according to their
behaviours and demographic characteristic and basically targets middle and upper middle class
people who own ability to buy designer, exclusive and customized products.
Bernhardt, Mays and Hall, 2012, has discussed about promotional techniques which are
organised and updated by firm but are in easy reach of buyers and lack regular concern of
organisation. Advertising is the promotional tool which helps the company in reaching maximum
customer at one time and assist in gaining attention without much efforts. For example, fashion
retailer develops an advertisement about their certain product with particular scheme like,
discount or promotional offers. However, it is the advertisement strategy where the firm is able
to create awareness and gain attention of potential shoppers.
6

Figure 5: Public relation event
(Source: BANG! Selfridges Manchester Trafford Big Beauty Bang, 2015)
Promotional technique which are away from store
Likewise, Ramsaran-Fowdar and Fowdar, 2013, has discussed about billboard, and radio
where the firm launches promotional flyer or key message regarding product or services. This
helps in making people aware about new launches and discounts which is directly proportional to
increase in sales and consumer base. Further, the author discussed about digital promotion which
is advanced technique of modern era and is used by majority of firm. Search engine optimization
is a golden key for an organisation as it helps the business in improving traffic e on their social
media platforms, official websites and online retailers. In this it becomes easy for the business to
encourage shoppers across the globe to try and buy product of specific brand. However, when
promoting products digital, it is necessary for the organisation to focus on schemes, key message
and content which is used when promoting. In addition, digital promotion is successful when the
customers are easily able to communicate with company as it helps them in trusting brand and its
services.
Digital promotion
7

Apparently, Bernhardt, Mays and Hall, 2012, articulated key components of digital
promotion where content is the king and therefore it should make sense during marketing.
Further, key words play a vital role in attracting buyers for which it is important for the company
to make use of simple language and specific words which attracts buyers. For example, when
making use of digital promotional mix focus of Selfridges, a fashion departmental store is on
content where the marketing team of organisation make use of original and relevant information
and incorporating it into adding unified form. In addition, key words focus is non avoiding
repetition and integrating use of words like, discounts, time limit, sale, scheme, etc.
On the other hand, Nimako and Ntim, 2013, outline the needs of relevant link on during
digital promotion because it makes easier for the buyers to visit web page of the company.
Making promotion user friendly is another promotional mix approach which helps the business
attaining success over sales and personal selling. There is numerous leading firm like,
Debenhams, Marks and spencer, etc. who have enables their site access to different engines. This
is another effective marketing strategy where company’s do not have to launch promotional
campaign to attract shoppers. The social media websites already launch add of new product and
schemes of firm shared on their web page. This is applicable when the particular firm is involved
in sponsoring or paid partnering.
In accordance with this, it is analysed that the most interesting concept followed by
Selfridges is connecting with poetical purchased on Facebook and Instagram with the help of
page promotion. In this the company shared one image of launch or certain product to encourage
consumer interaction on that specific post. It is done by company for managing firstly customer
relationship and getting review and feedback of different people across globe. Hence, it can be
said that this promotional strategy is good for enterprise because it aids in gaining review of
purchasers which assist in determining need and particular are which require improvement.
Newspaper and company’s Account
Apparently, as per the views of Ström, Vendel and Bredican, 2014, analysis of companies’
performance also lays an important role for which it is necessary for the business to keep a
regular track over newspaper, companies performance, rivalries magazine, etc. This helps the
management in developing understanding about market image of company and also helps in
evaluating need of improvement. Control over performance of companies and competitors is the
basic tool which helps the business in analysing promotional and marketing techniques use by
8

similar firm of industry. Hence, it is important for the company to track performance with the
help of magazines, business articles, new paper to keep track over organismal performance
which can be hindered by external marketing forces.
TASK 2
Marketing theories
Implementing use of marketing theories plays a crucial role in managing progress and
relevancy of marketing and promotional practices of firm. It is effecti8ve approach used by firms
across the globe which helps in influencing consumer decision making process by creating
awareness by studying individual needs and wants. There are three marketing theories which are
being implemented by Selfridges to enhance its customer relation and to boost sales. Practices
and principle of marketing can be effective practices with the use of theories which enables
different approaches of connecting and communicating with customers.
AIDA model
This the marketing model used by fashion retailer to promote its products and increase
sales. The use of model is based on 4 stages which are discussed below:
Figure 6: AIDA model
(Source: AIDA Model, 2018)
9

Attention: In this motive of company is to attract potential buyers where the company focuses
on different tactics such as use of images themes, water background, layouts and typography in
order to make advertisement eye catching (Hassan, Nadzim and Shiratuddin, 2015). In this
Selfridges focuses on involving celebrities and famous personalities to gain interest of shoppers.
Further, the best part of attention phase is use of music and jingles which helps the firm I keep
customer connected for long period.
Interests: This phase promotes interaction where consumer are allowed to involved in
promotional and marketing campaign of company by sharing their views over products or
company. Further, in this Selfridges aim at connecting with shoppers via gifts and voucher
coupon.
Desire: In this the main motive of company is on making product or launch desirable like
should attract visitors and views. For example, Selfridges make use of 3 D flyers at prime
location with the help of which the consumers feel attracted. Moreover, in this the company
offers unique schemes like discounts for first five visitors, etc.
Action: In this Selfridges quickly act on consumer query or complain which is the best
strategy to gain trust. For example, if the shopper has invested firm for limited offer then it is
important for the company to provide instant helps with discounted products to maintain
effectiveness of risk and cost.
The use of AIDA model is effective for retailer as it helps the company in environmental
marketing where the firm do not have to look forward to regular promotion to attract shoppers.
In this launching one effective campaign acts market booster and therefore it is termed as long
term marketing theory. Attention phase of model is termed as cognitive stage because in this
enterprise is able to communicate with customers. Further, interest and desire are part of
affective stage where management aim at connecting with people with the help of promotional
techniques (Pappas, 2016). Last, that is action I behavioural stage which indicates response of
company towards purchaser. Thus, it is important for the business to focus on effective and
responsible marketing in order to interact and connect with buyers.
Pull and Push marketing strategy
It is the marketing theory or strategies which promotes direct communication of company
and buyers. In accordance with this strategy it is important for the organization to directly upon
10

consumer visit or response. This marketing approach is based on logistic services and therefore it
is important for the company to have sustainability in its supply chain management.
Pull strategy: In this Selfridges is able to understand buyer’s response to products of
retailer. It denotes buyers actively seeking out your product and sellers placing orders for stock
due to direct purchaser demand (Burchell, Rettie and Patel, 2013). In this focus of department
and company is on implanting use of different social media advertising strategy, mass media
promotion, discounts, sales promotion, word of mouth. These are few common approaches
which are regularly adopted by clothing retailer to gain attention of shoppers and for customer
relationship management.
This strategy of leaded by customers and drives consumer into outlets by incorporating
knowledge and behavioural insights of customers. However, Selfridges gears this approach by
specific visit of shopper to outlet of company for buying commodity. The tactics used while
using this approach are advertising, viral marketing, social media, blogging and e mail
marketing.
Figure 7:Pull and Push marketing strategy
(Source: Push and Pull Marketing Promotional Strategies, 2014)
11

Push Strategy: It is a leaded by brand where focus of organisation is on providing retailer
appropriate tool in order to gain incentive from selling products. This strategy helps the company
in analysing effective promotional strategy which can helps the business in gaining profits by
maximizing consumer interest. In this the Selfridges is geared to sell more and more product
within time constraints. It is the most effective marketing strategy because it is related to
maximizing sales and is related to earnings of business by serving consumer satisfaction.
In this approach trade of business products encourages demand of retailer. Further, it also
promotes direct and face to face marketing (Baker, 2016). For example, Selfridges focuses on
sustainability in supply chain management in order to support efficient supply and flow of goods
and services. In addition, retailer aim at attractive designing and packaging to increase sales.
Push strategies use by organisation are, managing changes in services according to competitor
and video demonstrate in in order flaunt designs of products.
Above\ below the line marketing theory
These are two different concepts and offers different types of marketing and promotional
approach to company. However, the motive of companies is on making use of both the
approaches a sit helps in two types of interaction with purchased which is offers effective market
practising approach. Content specific to position audience, targeted advertising, campaigns are
the best part of line marketing theory.
Above the line: It is a marketing and communication tool where company deploys use of
different advertising tools that is, bill board, television, radio. These are the promotional
techniques which helps the firm in on g term marketing with the help of one launch and specific
key content (Mulhern, 2013). For example, in above the line marketing practice of Selfridges are
done according to seasons where the firm launches new and attractive product to gain attention
of buyers for limited time period. However, it can be said that this advertising is going to be
deployed around a wider target audience.
Below the line: This is direct interaction of company with its buyers where the focus of
management is on immediate forcing and influencing purchaser buying decision. It is of short
duration where the customer is directly connecting with shopper at sales moment. In this
marketing communication is done by company with the help of sales associate who assist
consumers with buying in store. Sale stage of Selfridges are responsible for influencing buying
decision of purchaser. For example, sales associates of retailer are trained to assist purchaser
12

with different choices, unique style and best suitable product for their requirement. It helps in
easy management of visitors and motivates people to buy.
Marketing activities and communication of BTL approach are proficient and cost-
effective means for focusing on a target audience and particular gathering. In this staff of outlet
are able to share instant discounts to buyers which is most influencing way of buyers buying
decision and act as marketing communication. Thus, it can be said that one the spot and short
term interaction with shoppers is the best way of practicing marketing principles.
Hence, form the entire discussion over three different types of marketing theories it can be
outline that motive of Selfridges is on promotion of brand to increase sales for which the firm
enables use of different promotional tool which can helps in attracting large number of buyers
across the globe (Challagalla, Murtha and Jaworski, 2014). In accordance with it is articulated
that marketing principles and practices of company are not limited to domestic level but are
focused on creating influence on worldwide buyers.
CONCLUSION
The assessment summarized about marketing principles and practices incorporated by
Selfridges for promotion and communication with customers. Selfridges is retail departmental
store and company which offers wide range of designer products such as, beauty, apparel, gifts,
accessories, etc. The study is based on academic literature where views of different authors are
outlined for different promotion tools such as, social media advertising, newspaper, media
billboards, television, promotion mix, STP, etc. Thus, it concluded by outlining three marketing
theories which are used by Selfridges to managing effectiveness in marketing communication.
13

REFERENCES
Books and Journals
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Bernhardt, J.M., Mays, D. and Hall, A.K., 2012. Social marketing at the right place and right
time with new media. Journal of Social Marketing. 2(2). pp.130-137.
Bernhardt, J.M., Mays, D. and Hall, A.K., 2012. Social marketing at the right place and right
time with new media. Journal of Social Marketing. 2(2). pp.130-137.
Burchell, K., Rettie, R. and Patel, K., 2013. Marketing social norms: social marketing and the
‘social norm approach’. Journal of Consumer Behaviour. 12(1). pp.1-9.
Challagalla, G., Murtha, B.R. and Jaworski, B., 2014. Marketing doctrine: A principles-based
approach to guiding marketing decision making in firms. Journal of Marketing. 78(4).
pp.4-20.
Hassan, S., Nadzim, S.Z.A. and Shiratuddin, N., 2015. Strategic use of social media for small
business based on the AIDA model. Procedia-Social and Behavioral Sciences. 172.
pp.262-269.
Hendrix, P.E., 2014. How digital technologies are enabling consumers and transforming the
practice of marketing. Journal of Marketing Theory and Practice. 22(2). pp.149-150.
Kitchen, P.J. and Burgmann, I., 2015. Integrated marketing communication: making it work at a
strategic level. Journal of Business Strategy. 36(4). pp.34-39.
Mulhern, F., 2013. Integrated marketing communications: From media channels to digital
connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36).
Routledge.
Nimako, S.G. and Ntim, B.A., 2013. Construct specification and misspecification within the
application of push-pull-mooring theory of switching behaviour. Journal of Business and
Management Sciences. 1(5). pp.83-95.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
behaviour. Journal of Retailing and Consumer Services. 29. pp.92-103.
Ramsaran-Fowdar, R.R. and Fowdar, S., 2013. The implications of Facebook marketing for
organizations. Contemporary Management Research. 9(1).
14

Ström, R., Vendel, M. and Bredican, J., 2014. Mobile marketing: A literature review on its value
for consumers and retailers. Journal of Retailing and Consumer Services. 21(6). pp.1001-
1012.
Online
AIDA Model. 2018. [Online]. Available through:
https://www.businesstopia.net/communication/aida-model.
BANG! Selfridges Manchester Trafford Big Beauty Bang. 2015. [Online]. Available through:
<http://www.fashionrambler.com/2012/05/bang-selfridges-manchester-trafford-
big.html>.
Conference Venue Special Offers. 2018. [Online]. Available through: <
https://www.cavendishvenues.co.uk/special-offers/selfridges-voucher/ >.
Porter's Generic Competitive Strategies (ways of competing). 2016. [Online]. Available through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/>.
Push and Pull Marketing Promotional Strategies. 2014. [Online]. Available through:
<http://declusteredmarketing.com/push-and-pull-marketing-promotional-strategies/>.
Revenue of Selfridges Retail Limited worldwide from fiscal year 2011 to 2017* (in million GBP).
2017. [Online]. Available through: <
https://www.statista.com/statistics/861908/selfridges-retail-limited-revenue-worldwide/
>.
Selfridges Discount Codes November 2018. 2018. [Online]. Available through:<
https://www.ozcodes.com.au/store/selfridges/>.
Window Displays at Selfridges in London. 2011. [Online]. Available through: http://gg-a-
paris.blogspot.com/2011/05/window-displays-at-selfridges-in-london.html
15