Strategic Marketing Management: CW2

This report covers critical review of macro, micro and internal environment of Mark & Spenser, segmentation, targeting and positioning strategies, growth and marketing objectives, and marketing mix of 4P's.

STRATEGIC MARKETING
MANAGEMENT: CW2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
Critical review of macro, micro and internal environment of company......................................3
SECTION 2 .....................................................................................................................................4
Segmentation, Targeting and Positioning....................................................................................4
Strategies for growth and marketing objectives...........................................................................6
SECTION 4 .....................................................................................................................................9
Marketing mix of 4P's..................................................................................................................9
SECTION 4 ...................................................................................................................................11
Budget, implementation and control..........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategical marketing management defined as term that differentiates an entity from its
competitors by capitalising on its strength and offers constant better value to customers than
rivalries. This helps the enterprise to accomplish objectives by utilising scare resources in
appropriate manner.
The present report is based on business activities of Mark & Spenser and this British
multinational retailer that headquartered within Westminster, London. It is engaged in selling
clothing, food commodities etc.
Furthermore, study will cover Marketing environment with use of PEST, Porter's five
forces model and SWOT analysis to demonstrate significant understanding of environment.
Also, Porter's Generic strategies will be used to identifies areas for risk and growth. Lastly,
process of Budget implementation and control will be undertaken to estimate the cost for
marketing activities.
MAIN BODY
SECTION 1
Critical review of macro, micro and internal environment of company.
PESTLE is defined as tool that used by marketers to analyse and monitor external
working conditions that have wide impact on organisational working. Therefore, these are
outlined as-:
Political- It is inclusive of those components that are made, run and changed legal authorities
(Srdjevic, Bajcetic and Srdjevic, 2018). Free trade policies have been massive political
advancement for chosen enterprise. Due to the issue of Brexit, the many polices will not be
applied to firm. Thus, Chegini and Mahmood, (2020) stated that Brexit may lead to heighten the
production cost for quoted enterprise. Chosen firm will have to face strict outcomes and this can
affect working condition in negative aspect.
Economic- The determinants of economic components directly affect working and also have
long term consequences. Rise in price of inflation rate can the affects the firms product and
services. Thus, these components are inclusive of inflation rate, interest rate and economic
patterns of growth etc. It has been found out that majority of population within UK prefers local
retail store rather than chosen firm premium products. Thus, Kotler and Andreasen, Startegic
Marketing for Non-Profit Organisations, (2019) stated that main strategy of firm is to transform

chosen firm into international, multi channel retailer and this reduce the dependency on UK
economic cycle.
Social- The changes in taste and preferences of customers highly impacts the working of
enterprise. Thus, culture, age, income distribution are major environment concern. Also, trends
in social factors impact demand of firms products and working conditions of firm within market.
Therefore, Ahmed, Bahoo and Qureshi, (2020) stated that the new and trendy retail chains pop
up each year and this highly impacts the reputation of enterprise. Due to this, it has become the
less trendy brand for younger consumers.
Technological- In this competitive era, the adaption of technological advancement is changing
retail stores. The evolution of technologies has helped entities and streamlined the operational
working (Tan, Chua and Chew, 2018). Mark & Spenser has started to use self checkout stores
and also planned towards to adopt the usage of Artificial Intelligence in future. Consumer these
days are more technical focused and prefers online shopping rather than in-store purchase. This
form of adoption of technical advancement can assist the brand to build stronger presence among
the current generation.
SWOT Analysis-
It aids to identify the external and internal working of the enterprise. These are outlined
as-:
Strength-:
 Powerful retail brand.
 High quality.
 This entity has online growth.
Weakness-:
 Price too far for middle class people.
 Need to change their strategic
approach.
Opportunities-:
 Expansion within the other countries.
 New customer segmentation.
Threats-:
 Suppliers
 Competitors may have cheaper
supplier.

SECTION 2
Segmentation, Targeting and Positioning
STP analysis of an enterprise plays the crucial role to gain competitive advancement.
This helps the entity to understand the customers and develop commodities that customer’s can
relate. With help of undertaking the STP, the entity finds out new market and consumers. These
are defined in following manner as-:
Segmentation- As per the market the organisation Mark & Spenser will divide the market within
the few segments. Henceforth, segmentation assist the enterprise in order to maintain the
sustainability within the business. Therefore, quoted enterprise has divided the audience in few
parameters. Thus, two phases of segmentation are defined as-:
 Behavioural segmentation- It is defined as segmentation that can be done on the basis of
purchasing habits of customers in manner of usage frequency, brand loyalty and benefits
needed etc. The premium customers of Quoted enterprise are their regular customers.
Henceforth, they are the customers who plays vital role to remain profitable in the
business as they have more power to pay and collect more commodities and services.
Additionally, loyal customer will assist the companies to enhance the sales ( Sembiring
and Krisna, 2019).
 Demographic segmentation- This is approach that divides the consumers within the
gender, education, region, state and geographically by country. As per this, women are
targeted by the firm as Mark and Spenser. This satisfies the each market segment of each
group. Additionally, this can be segmented into several market and assist the enterprise
by targetting its consumers more accurately.
 Geographic segmentation- It is defined as one of the common strategy that serve the
customer of the particular area. This segment target the potential customers with help of
country, state, region, city and even neighbourhood. Additionally, the main geographic
segment within UK of chosen enterprise is as 337 stores in 41 internation territories.
Target- They need to maintain some market oriented target in terms to maintain the
sustainability within the enterprise. However, the firm should loot to target online customer by
segmenting them on the basis of preferences and selection of clothing and food products. In
addition to this, chosen enterprise needs to develop its social media campaigns with help of
ensuring online target customers on the platform as Facebook, Twitter, Instagram that aids to

provide the necessary and valuable information about the existing and new commodities of
enterprise.
Positioning- The management of the chosen enterprise in their social media campaign needs to
look over to implement the price positioning plan of action to launch electric commodities within
market of UK. It is the positioning that can allow the firm to target their both kind of high
income and price sensitive commodities that are more concerned about the cost of electronic
commodities (Henriksson and Kubiak, 2019). However, 4C's plays crucial role in order to have
successful positioning and this is outlines as-:
 Compelling- The chosen enterprise needs to take the steps to analyse the needs and
wants of customers to gain the competitive advancement. By identifying needs the entity
can able to position its product and services effectively.
 Clarity- It is the principle that defined the product and services to the enterprise. Herein,
the entity needs to understand the needs of market and this also aids to gain competitive
advancement.
 Credibility- Mark & Spenser needs to undertake the activities of enterprise as per
company's values. Mission and identity. This will aids to gain the trust of people over
enterprise.
 Contrasting- This terms shows the competitors of the brand. In order to be competitive
within the market the entity needs to produce the commodities that aids to make them
different from rivalries in market.
SECTION 3
Strategies for growth and marketing objectives
BCG Matrix- This is termed out as strategic management tool and this helps in analysing the
position within the market with use of strategic business unit. Therefore, these are outlined as-:
 Star- It indicates the high market share and effective growth. This is the firm that has
start in product and service portfolio (Prianjani, Sutopo and Pujiyanto, 2019). In 2013,
M&S.com website supported by new e-commerce distribution centre and this has shown
great potential for growth. Henceforth, the objective to bring innovative product and
services must be full-fill by firm to enable entity to become future cash cow.
 Questions marks- At this stage, this has been stated that local food strategic business
unit is defined as question mark for chosen enterprise. As per the recent trends the

customer are more focussing towards the local commodities. Thus, Mark and spender has
low share in this and to cope up with it the entity needs to invest in research and
development to come up with innovative features.
 Cash cows- Mark and Spenser has good sized cash cows such as food and lingerie. These
are the products that are considered as to backbone to enterprise. In addition to this, the
business unit has market share of 30% within its category. Also, people are currently
moving towards international chain. This changes led to decline within growth rate of
market. However, the recommended plan of action of chosen entity is to invest enough to
keep strategic business unit under the operations. Also, supplier management services
unit is a cash cow within BCG matrix of chosen firm. Therefore, the market share of
chosen enterprise is high but the all market is declining due to as firm manages their
supplier themselves rather than outsourcing it. Henceforth, the recommended plan of
action for chosen entity is to stop further investment in business and keep operating
business functions successfully.
 Dog- The M&S has identified the premium price clothing within dog category. It has low
share under the mature or declining market. In addition to this, quoted entity needs to
offer strong consideration to diversify its product line as there is continue drain on
resources without the desired level of returns.
Ansoff growth matrix strategy- This is defined as strategic planning tool and this provides the
framework to devise the plan of action for future growth. Henceforth, these are outlined as-
 Market penetration- It is term that primarily put the major consideration over growing
existing commodities within existing markets to enhance market share. However, Market
and Spenser can able to penetrate the market with help of engaging under the more
aggressive promotional campaigns and sales promotion and to adopt the competitive
pricing strategy. Therefore, the introduction of the free overnight shipping on the selected
items that purchased by M&S.com is one of the effective way under which e-commerce
market can be penetrated.
 Product development- In this, the new commodities bring to the existing market by
brining modification in it. This can be done by full-filling the marketing objective of
implementing technological process (Ahmed, Bahoo and Qureshi, 2020). Therefore, the

introduction of catering service for special events such as wedding, parties and
conference can be undertake as the example of product development at M&S.
 Market development- It is inclusive of selling the existing commodities to new market.
In addition to this, product development termed out as one of growth strategies used by
the quoted enterprise. Thus, entity needs to develop its commodities as per the changes in
fashion. It helps the entity to grow rapidly and expanding the business activities at global
level.
 Diversification- With the help of adopting the diversification strategy the entity can able
to develop commodities for new market. This can be assistive in term to cope up with
core competence of organisation. However, emergence of economies such as Russia and
various countries like western offers the opportunities for innovative products to be
marketed for enterprise.
Strategic decision making for marketers-
Year 1 SMART objectives Reason
 To improve customer
assistance service
within 5 months.
 Enhance market share
and customer
satisfaction by 15%
within 5 months.
 Introduce new and
innovative
commodities within 7
months to enhance
sales by 15%.
 Enhance clothing line
profit by 5% in 1 year.
It plays crucial role and
effective part of current
strategic plan in terms to
improve the efficiency as well
as image of company with help
of CSR.
Enhancing clothing line
profitability is crucial against
direct competitors but also
indirect ones too. It aids to
offer higher market share and
new segment for clothings
range.
Year 2 Enhance non food share of
sector by 10% by year 3.
The more focus will be given
in the non food section of

chosen firm as currently they
are loosing market share.
Year 3 Expansion at global level It is need to be done in terms
to expand business activities
within international market.
Contingency plan
Year 4 Change target market
Revert to original plan
There is new age group
making the trends as they have
more disposable income. This
is the 25 to 34 age group.
Year 5 Focus more on the food
sectors.
In order to enhance the market
share the entity needs to put
their major focus on the food
segment.
SECTION 4
Marketing mix of 4P's
This is defined as set of actions and tactics that uses by firm to promote its product and
services in the market. Henceforth, these are outlined as-:
Product- Mark and Spenser has put the major focus on Eco-friendly commodities and fair traded
products that has worked wholeheartedly towards accomplishing it. This is the entity that deals
in commodities of men and Women apparel, accessories, footwear, accessories etc. Therefore,
they also deals in products as beauty, home, furniture and flowers etc. In order to enhance the
growth, this firm is looking over to use techniques that can aids to produce the commodities that
assist to enhance market share (Kotler and Andreasen, Startegic Marketing for Non-Profit
Organisations, 2019). In order to attract the customer, the firm will use organic ingredients in
their product so this can aids to attract the customer’s.
Place- This quoted entity has spread its presence in international market places such as Egypt,
Spain, Finland, France and Austria etc. M&S sells its product via outlet and these are
strategically chosen in terms to gain maximum brand visibility and customer’s. It is entity that

has also made its online shopping store to enhance purchase and also provide home delivery
facility to offer better services to customer’s.
Price- This is the enterprise that has its own brand for the apparels. This caters the needs of the
both upper and middle class section of the society. Henceforth, commodities of this enterprise
perceived as value for money due to its diversified range, high quality products and convenience.
It is entity that provide the premium quality product but the price range of commodities is
between the medium to high range. Additionally, strong competition defined as limited market
share and this enhance its mass market consumption. Also, the firm has adopted the competitive
pricing strategy for their commodities.
Promotion- It is entity that has adopted the strategies as above the line and below the line to
make its its presence felt. This firms uses to promote its product and services with help of
campaign. Therefore, Ads are placed in magazines, radio, television digital, media all helps to
aware the customer about the product and services.

SECTION 4
Budget, implementation and control
Budget- In order to accomplish the set objective of business enterprise, the managerial
authorities needs to assume the budget to carry out marketing activities. These as are-
Implementation- The authorities of M&S needs to carry out the process of implementation of
strategies to undertake the future course of actions. To bring development in commodities the
effective technical advancement must be use so that existing commodities can be modified
properly. In order to undertake the controlling activities, the entity can find out the comparison
between actual and planned performance, if there is any deviation then controlling measures
must be taken (Chegini and Mahmood, 2020). Thus, Key performance indicator can be use in
order to evaluate the success in basis of profit, rate of return, repetitive purchase etc. Henceforth,
the entity can evaluate the success on the basis of platform such as social media, web traffic etc.

CONCLUSION
Hereby, it can be summarized that strategic marketing termed out as to develop customer
centred plan of action that aids top enhance ultimate profitability to entity. The present report has
covered business activities of Mark and Spenser, UK. Therefore, study has covered internal and
external marketing environment to analyse the market, STP analysis will be conducted to assess
the effectiveness of organisation. Also, BSG and Ansoff matrix has been defined to identify the
areas of risk and growth within enterprise.

REFERENCES
Books and journals
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Academia Edu.
Chegini, N. and Mahmood, S., 2020. Journal of Asian Business Strategy. Journal of Asian
Business Strategy. 10(1). pp.39-60.
Kotler, P. and Andreasen, R.A., Startegic Marketing for Non-Profit Organisations,
2019. Prencite-Hall, New Jersey, USA.
Ahmed, F.A.R.H.A.N., Bahoo, S.A.L.M.A.N. and Qureshi, M.A., 2020. Meta-analysis on
American Presidential Election-2016 and American Stock Market. Estudios de Economia
Aplicada. 38(1). pp.1-7.
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Renewable Energy Technology Services. International Journal of Energy Economics and
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Henriksson, C. and Kubiak, K., 2019. The unknown brand of the Swedish Armed Forces: a case
study of how the SAF's brand image coheres to its brand identity and how it might
influence its employer attractiveness.
Prianjani, D., Sutopo, W., Hisjam, M. and Pujiyanto, E., 2019, April. Sustainable supply chain
planning for swap battery system: Case study electric motorcycle applications in
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p. 012081). IOP Publishing.