Marketing Mix in TK Maxx Assignment

TK Maxx STRATEGIC OR MARKETING
ANALYSIS

CONTENTS
INTRODUCTION...................................................................................................................................1
TASK – 1(A)...........................................................................................................................................1
Purpose of stages of marketing including role of marketing mix........................................................1
Role of marketing in creating value to the customers.........................................................................3
Stakeholder engagement and their influence on the marketing activities of the firm.........................4
TASK – 1(B) (REFLECTIVE WRITING)..............................................................................................5
REFERENCES........................................................................................................................................7

INTRODUCTION
In last few decades the world of business has changed dramatically. If this alteration
will going to take place, it will become difficult to imagine the picture of future. There is
rising level of competition between the businesses and thus, firms are offering better services
and products to the customers. They are also making efforts to market their products
effectively better than their rivalries (Kotler, 2013). The current research study is segregated
into two parts wherein the first part is essay that with understanding the processes and stages
of marketing and will evaluate the role of marketing mix in the organization TK Maxx. It is a
famous European off price retailer dealing with more variety of stores and quality brands.
Emphasis will also be done on role of marketing in creating value for customers and
stakeholder’s engagement & its influence on the firm. The second part is the personal
reflection on the tactical communication tools being used in the project.
TASK – 1(A)
Purpose of stages of marketing including role of marketing mix
Contemplating in relation with the TK Maxx, it is one of the best off price retailer in
the US and UK and is the subsidiary of TJX companies. They have around 260 stores all
around United Kingdom including Germany, Ireland and Poland. The company has brought a
relatively new concept in the market. Because of this, they does not have any direct
competitors as well. Each and everything within the firm whether it is its marketing strategy
and other business tactics, is quite different and unique (TK Maxx, 2018). Consequently, it
can be said that the heart of the firm’s success greatly lies in the business model of providing
higher level of designer labels for up to sixty percent less from the actual prices. Under the
marketing concept, TK Maxx has significantly found a way to discover the unfulfilled needs
and wants of the customers and has brought that products and services into the market that
contends their needs effectively. The process of carrying out this is being modelled in a
sequence of steps i.e. analysing the situation for determining the opportunities in the market,
formulating the strategy for value preposition, making tactical decisions and finally,
execution of the plan and monitoring of the outcomes (Farooq, 2015).
Throwing light about the very first stage of marketing process i.e. situational analysis,
TK Maxx significantly carries out thorough analysis of itself and evaluation of the external
environment as well. The firm is greatly affected by the tax system, policies of the UK
government, tariffs restrictions and political stability. Further, because of the global
slowdown the sales of the firm has also reduced a lot. Even the people are now becoming
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sophisticated and thus, are crazy about the fashionable clothes. TK Maxx also makes sure that
their stores are neat and clean and make efforts to recycle the waste as well. Furthermore, the
major strength of the company is affordable price as well as quality product. However,
because of the recession the sales of the firm is seasonal (Suzanne, 2007).
Further, in order to determine the effectiveness of the marketing strategy, it is vital to
throw light on market segmentation, targeting and positioning strategy of the firm. TK Maxx
has divided its market based on demographic segmentation. They want to aim consumers
with low incomes with significant interest in designer as well as luxurious goods. In addition
to this, the firm also makes use of differential marketing for targeting diverse customer
segments i.e. men, women and kids. They also have different department that targets
youngsters and teenagers. From the given points can be said that TK Maxx positioned itself
as the leading discount retailer of excellent quality branded goods in the markets of UK
(Atkinson, 2016). After this, the firm also make many tactical decisions for controllable
parameters of marketing mix i.e. product development, pricing decisions, distribution
contracts and ultimately, promotional campaign development. Marketing mix plays a crucial
role in the marketing of brand. It helps in making the world go round the firm. Furthermore,
the elements of the marketing mix helps the company in determining the needs and wants of
the potential customers. The products of TK Maxx are put onto the shop floor at full price as
they receives deliveries daily. Additionally, the products are at the maturity stage which
means the firm earns higher profits as well (Gundlach and Wilkie, 2010). The pricing strategy
of the firm is influenced by various factors. The firm keeps the prices at such a level that its
purchasing costs and marketing costs are covered from the amount of revenue received from
sales. It is here necessary to discuss the distribution strategy of TK Maxx, they follow an
opportunistic buying system in which they make purchase from different people such as
retailers, wholesaler and producers and get excess discounted and unwanted branded products
(Fill, 2012). Finally, the firm makes use of advertising, public relation and personal selling
for promoting their products and services such as television, social media, campaign, door to
door marketing etc.
The last step in the process of marketing being adopted by the company is
implementation and control. At this stage, firm has significantly developed marketing plan
and the results are being monitored and controlled by the marketing team. As per the
demands and needs of the customers the marketing mix elements of the firm is altered and
adjusted. Continuous adaptation is being done for accomplishing the desires of the firm
consistently over longer period of time effectively. Given the above factors, it can be
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concluded that marketing mix and the whole marketing process plays the most crucial role in
the success and growth of TK Maxx (Carson and Cromie, 2009).
Role of marketing in creating value to the customers
During the 1993, the were waves of criticism against marketing and following that
wave, the Chartered Institute of Marketing in the UK decided to carry out research in
marketing for establishing the things European companies takes into account as the key issue
being faced by them and in what ways they can respond towards it. In simple words, the role
of marketing in creating the value to the customers was researched effectively. The study
revealed that there are many challenges that the firm especially TK Maxx needs to overcome
and must develop effective marketing strategies (Mahajan, 2016). The author “Malcolm
McDonald” has formulated 12 guidelines for the development of effective marketing
strategies. TK Maxx considers these guidelines effectively. The very first guideline suggested
by the author is comprehending the sources of competitive advantage such as customer
orientation, flexible organization and technical expertise for the small firms and on the other
hand, economies of scale, share experiences and coverage for large companies (McDonald,
2004). The next guideline is comprehending the differentiation. Under this, TK Maxx offers
superior and unique products and services to customers at discount rates. Further, a strong
brand name is also connected with the products they sale in the market. The third
recommendation is understanding the environment. the firm analysis its external business
forces such as political, economic, social and environmental and other industry factors such
as suppliers, customers, its behaviour, channels and market segmentation. The fourth one is
analysing the competitors, TK Maxx carries out effective study for evaluating its potential
competitors, substitute products and profitability of the rivalries. In addition to this, next it is
also vital for the firm to comprehend their internal strengths and weaknesses and external
threats and opportunities (Saunders and Wong, 2003). Moreover, the dynamics of the
products and market evaluation is also needs to be understood for creating value to the
customers.
The marketing strategies of TK Maxx has clear strategic priorities as well as
objectives and they stick to them always. The firm also encompasses professional marketing
skills which implies formal training in some of the concepts of marketing such as market
research, gap analysis, portfolio management, product life cycle management etc. (TK Maxx,
2018) Another important guideline being followed by the company is that understand the
customers orientation. In each and every function of the firm customers orientation is being
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developed. This implies that they clearly know that they are in the market to serve the
customers and their own narrow functional interests. Last but not the least, the final success
factor of TK Maxx is leadership. The leaders of the firm makes sure that doom and gloom
does not pervade in their thinking. They lead their whole team strongly as well as effectively
(Parasuraman, 2008). They even does not accept poor performance in the most critical
positions. From the give points, it can be seen that firstly the products and services being
offered by TK Maxx is of excellent quality. Secondly, the operations are very efficient too
and are state of the art. The leadership within the firm is creative and more focus is being
given on the personnel of the firm. Furthermore, the firm makes use of professional
marketing and continuous monitor its environment, competitors, own performance against the
customer driven standards that each and every one with in the firm has to deliver. The
discussion is quite convincing as it clearly states the role of marketing in creating in value to
the customers (Carson and Cromie, 2009).
Stakeholder engagement and their influence on the marketing activities of the firm
In order to determine the impact of stakeholder engagement on the marketing
activities of TK Maxx, it would be necessary to throw some light on stakeholder engagement
within the firm. It is being acknowledged as the most important part in the success of any
project and programme of the company. There are many stakeholders of the firm such as
customers, communities, employees, suppliers, contractors, producers, media, regulators and
many more. All these stakeholders are quite different and bring upon varied perspectives as
well as expertise (Frooman, 2009). They too carry put their operations in diverse culture as
well as environments. Further, they all have different opinions and beliefs in regards with the
results. Stakeholder engagement is being referred as the process through which the firm
involves people who can be affected by the decisions being undertaken by the company. To
engage with its important stakeholders, TK Maxx develops partnership in which they have
shared accountability as well as responsibility. They have joint learning and decision making.
The firm also regularly consults with its stakeholders and asks significant questions to them.
They even broadcast information to all the first tire and two tire stakeholders of the
organization through using different channels such as letters, emails and leaflets. Finally,
stakeholders of TK Maxx are also engaged through listening to their needs as well as value
(Kotler, 2013). This helps in increasing the connection and relationship between the
stakeholders and the company. Further, the stakeholders of the firm signals them about the
kind of marketing activity to be approved or not be approved by them. For instance, the
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customers of the firm gives signal about the liking of the products of the firm through
continuously purchasing the firm’s products (Gundlach and Wilkie, 2010). If there is negative
word of mouth or any complain about the firm, they will not purchase the product and will
have negative impact on the functioning of the company. In addition to this, there are many
external stakeholders of TK Maxx which engaged in the action like proxy votes, letter
writing, campaigns and protests for demanding that the firm must make use of certain
principles or products or operational change. The above point is quite valuable as on the basis
of these actions of the stakeholders, the firm is required to change its present marketing
activities as well practices. Thus, from the above research it can be concluded that there
exists inter-relationship between marketing activities and multiple stakeholders of the
company as well as on its relative performance results. There are many stakeholder’s activity
as discussed above possess a power to influence or potentially shape the firm’s marketing
strategy for the stakeholder orientation (Day, 2014).
Stakeholder engagement plays a crucial role in marketing activities of the organization. They
influence the marketing initiatives of TK Maxx in their design, execution and analysis. The
marketing activities of the firm carries out the action that helps in bringing out the product in
the market. It is important for the firm to engage internal and external stakeholders as part of
their marketing strategy. They are considered as an essential component to the final results of
any marketing action. TK Maxx engages themselves in utilitarian, mixed as well as symbolic
exchanges with different types of stakeholders. All these stakeholders positively or negatively
influence the
TASK – 1(B) (REFLECTIVE WRITING)
The current essay being written above is a reflective account on the progress being
made by me at the time of ongoing management training programme which I have embarked
upon. The areas being intended to improve in my learning through this essay was key
communication skills, transferable skills and overall personal development. The areas of
future development will also be determined related to my personal as well as professional
development. During my essay I think I have developed self-discipline which is considered as
the most vital aspects for effective learning. I have gradually developed my communication
skills and teamwork learning. Communication plays a very significant role in the success and
failure of any project. It is being referred as an art or technique of making use of words
effectively for imparting knowledge and ideas to others. Four communication tools were
being used by me in the current essay writing such as publication, digital or online, media and
events. There were many magazines, journals, articles and newspapers related to marketing
process and strategies being used by TK Maxx being published from time to time. In addition
to this, concerning the digital or online tools, I have used blog post for extracting information
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about the current project topic. The internal blog of the company helped in enhancing my
knowledge about the marketing strategy and process being adopted by the firm. Furthermore,
it was proved to be a permanent archived of knowledge for me as information articles
uploaded and published on an internal blog of TK Maxx stays there unless and until it is
deleted. In addition to this, I have also acquired knowledge through online media and social
media sources such as Facebook, twitter, YouTube, LinkedIn and many other news channels.
Lastly, there are many events and conferences that tale place every year in varied locations. I
have grabbed information related to my topic from this source as well.
On reflection I can say that all these communication tools being used by me helped in
creating awareness and generating interest towards the current project. These tools have also
supported me all throughout the coursework and in the recent project. Because of these tools,
I felt confident and assured in regards with my knowledge and familiarity of the current
research essay topic. To conclude I can say that I have critically demonstrated the ways
through my learning was evolved from beginner to advanced learner. I have made certain
plans to continue my personal as well as professional development by continuously involving
in several learning activities. Other than this, I will also make efforts regularly to acquire
more knowledge regarding facing professional issues such as decision making, stress
management and time management. Consequently, I desire to see learning as integral
component of me. I will continue to learn new skills from my everyday lifelong experience.
This reflective practice will not only going to make improvement in the quality of my writing
it will also going to augment my knowledge base, personal and professional development
thereby supporting me to close the gap amid the theory and practice.
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REFERENCES
Books and journals
Frooman, J. (1999). Stakeholder
influence strategies. Academy of
Management Review, 24(2), 191–
205
“stakeholder” was omitted from the American marketing associa-
Atkinson, D., 2016. Conceiving a marketing strategy in the era of dynamic capabilities.
Economic and Social Development: Book of Proceedings.
bright for stakeholder marketing. Journal of Public Policy &
Carson, D. and Cromie, S., 2009. Marketing planning in small enterprises: a model and some
empirical evidence. Journal of Marketing Management, 5(1), pp.33-49.
Day, G. S. (1994). The capabilities of market-driven organizations.
Day, G.S., 2014. The capabilities of market-driven organizations. Journal of Marketing,
58(4), pp.37–52.
Fill, C., 2012. Marketing Communications; Contexts, Strategies and Applications. 3rded.
Harlow, Prentice Hall, Financial Times.
Frooman, J., 2009. Stakeholder influence strategies. Academy of Management Review,
24(2), pp.191–205.
Gundlach, G. T., & Wilkie, W. L. (2010). Stakeholder marketing: Why
Gundlach, G.T. and Wilkie, W.L., 2010. Stakeholder marketing: Why stakeholder was
omitted from the American marketing association’s official 2007 definition of
marketing and why the future is bright for stakeholder marketing. Journal of Public
Policy &Marketing, 29(1), pp.89–92.
Journal of Marketing, 58(4), 37–52
Kotler, P., 2013. Marketing Management. 11thed. New Jersey: Prentice Hall.
Marketing, 29(1), 89–92
McDonald, M., 2004. Marketing-the challenge of change. Chartered Institute of Marketing
Study.
Parasuraman, A., 2008. Customer Service in Business-to-Business Markets: An Agenda for
Research. The Journal of Business and Industrial Marketing, 13(4), pp.309-321.
Saunders, J. and Wong, V., 2003. Business orientations and corporate success. Journal
Strategic marketing, 1(l), pp.20-40.
Suzanne, V., 2007. Password to Marketers’ Meeting: Digital. The Wall Street Journal.
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tion’s official 2007 definition of marketing and why the future is
Online references
Farooq, U., 2015. Marketing Process and the Steps involved in Marketing Process. [Online].
Available through: <http://www.businessstudynotes.com/marketing/principle-of-
marketing/explain-the-marketing-process-in-detail/>. [Accessed on 26thAugust 2019].
Mahajan, G., 2016. What is Customer Value and How Can You Create It? [Online].
Available through: <http://customerthink.com/what-is-customer-value-and-how-can-
you-create-it/>. [Accessed on 25thAugust 2019].
TK Maxx. 2018. [Online]. Available through: <https://www.tkmaxx.com/uk/en/>. [Accessed
on 24thAugust 2019].
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