Role of Marketing in Zara: A Strategic Analysis

Role of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2 (A)......................................................................................................................................1
Comparison of the ways in which marketing mix is used by the organisations..........................1
TASK 2 (B)......................................................................................................................................4
Formulation of strategic management plan by using marketing mix..........................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the process of establishing a positive and attractive image of business in the
mind of customers so that all the requirements of them could be fulfilled and success could be
achieved in business. Major role of it is to enhance awareness of products and services among
targeted market (BAČÍK, ŠTEFKO and GBUROVÁ, 2014). In order to meet long term business
goals it is very important for all the entities to make sure that effective strategies are formulated
to perform operational activities in systematic manner. This report is based upon Zara which is
one of largest apparel companies around the world. It was founded by Amancio Ortega and
Rosalia Mera in year 1974. This assignment covers various topics such as Role of marketing and
relation of it with other functional units. Apart from this, the way in which marketing mix
elements are used to meet objectives and formulation of strategic marketing plan is also covered
in this assignment.
MAIN BODY
TASK 1
Covered in PPT
TASK 2 (A)
Comparison of the ways in which marketing mix is used by the organisations
Marketing mix: It is a marketing framework which is used by entities for the purpose of
achieving business objectives such as large number of customers, higher sales etc. There are
seven different elements of it. These are product, price, place, promotion, people, process and
physical evidence (Boschettiand Massaron, 2015). Zara is also focused with the application of
them so that it can achieve all its long term goals and objectives. Comparison of Zara with Gucci
on the basis of applicability of all the elements of it is as follows:
Marketing mix
elements
Zara Gucci
Product Zara is using product mix and
providing all the categories of
trending clothes. Any new style,
There are various types of items
which are sold by Gucci in the
market for the purpose of
1

new trend in market is covered by
organization Every new style
trendy clothes are available on
their stores within no time frame.
It is not following any
outsourcing strategy.
attracting large number of
customers. These are leather
goods, shoes, ready to wear,
watches and jewellery.
Price Price is an element which is part
of a profit. Price will decide what
amount of profit will be achieved
and what optimized price should
be taken so that profit is also
optimized and price is according
to the market rate. Zara follows
competitive strategy and its
pricing is low comparatively with
their competitors (Bryson and
Daniels, 2015).
In order to remain competitive in
the market it is very important for
the organisations to set
appropriate prices. The pricing
strategy which is focused by
Gucci is Premium pricing as its
targeted clients are from upper
class. Another reason for adopting
this policy is high quality of all
the products which are sold by the
organisation.
Place Zara invests all the financial
resources in various location with
attractive stores. It helps the
organisation to be easily
accessible for all the clients who
are visiting the stores.
Gucci is highly focused with the
establishment of the stores in
relaxing environment which helps
to create good relationship with
customers. The major places
which are used by it for the stores
are malls where targeted
customers can reach easily.
Promotion Promoting the brand is an
essential element in marketing. If
customers are not aware of
products, new outlets etc. then all
other functions may get wasted.
In order to retain all the clients it
is very important for all the
organisations to make sure that
they are promoting the products.
Gucci is highly focused with
2