The Evolution of Marketing Strategy

This assignment focuses on the concept of marketing strategy, analyzing its historical development and key components. It requires students to research and discuss various marketing approaches, including traditional and digital methods, highlighting their influence on business success. The assignment emphasizes understanding the ever-changing nature of marketing in a globalized world.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1 How management manages information system...................................................................1
P2 Different organisational function...........................................................................................3
P3 - Marketing mix applied by different organisations to attain business objectives................6
P4 –Marketing plan of Zara .......................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is one who delivers value to satisfy the needs and wants of customers or target
market. It is a process or creating relationship in between company and consumers. marketing is
identifying, satisfying customers requirements. This helps in increasing sales of organisation and
to earn profit by satisfying needs, wants and preferences. Its a activity of creating,
communicating, delivering products and services to customers for value satisfaction. The project
report is based on ZARA. This is a Spanish company and it is serving customers in form of
clothing and accessories, it is a retailer based in Arteixo, Galicia. Firm was founded by Amencio
Ortega in year approx(1975). ZARA is having 2169 stores around the globe . Its an international
brand serving in many another countries (Asaduzzaman, Hossain, and Rahman, 2014). Large
amount of employees are working with ZARA. The culture system opted by company is of
HANDY”S criteria, in which four classes is involved they are (power, role, task and person).
Firm is vertically integrated as it has significant control over several parts of production and
distribution steps. The project report will discuss about what marketing functions used by firm,
differential organisational functions, marketing mix to compare with other retail stores and a
marketing plan to achieve their objectives.
TASK
P1 How management manages information system
Management information system is a procedure of gathering data and information from
different sources and present that in a correct format. Nowadays, ZARA is dependent on
technology to collect information or data to manage themselves in comparison with competitors.
Thus information is required by the company to take many important decisions related to market
or they can make strategies as well. Information is required by managers to improve areas where
it is needed (Fırat, 2013). ZARA manages the information in a creative manner, as they use data
in knowing market scenario of UK. There are many competitors of company to make them out of
market but firm Is stable in competition and working enormously great.
Thus marketing function uses information of market in their own way to make the company
unique from others and to stable firm in competition, function of marketing are as follows:
Distribution: Information is required by distribution channel so that they can provide
product ans service on time and on right place. ZARA is using the data of information in
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distribution, they view distribution channel and uses the best distribution channel so that their
products can reach place safely and timely. Distribution is a function or marketing as distribution
too plays a effective role in market, just because of this component products are available on
retail shops easily.
Product: ZARA is having a unique products in clothing criteria, they produce those
times which are required by people to wear. Company uses information of market that what are
the needs and preferences are of customers, and manufacture according to those. This helps in
increasing sales and earning profit in higher range (Peter and Donnelly,, 2011). Satisfying
customers get attracted for shopping next time too. Product are available for everyone like
(children, adults, men, women etc.).
Pricing: Company has a great quality of products. Customers are rationale they spent
money on those items which satisfy their needs and wants in higher manner. ZARA has low
pricing in comparison with his competitors, this helps firm to attract as many consumers. quality
products with medium prices always attracts customers to buy that product. Prices plays an
effective role in increasing or declining sales. Information of market helps in deciding the prices
of items and services. Pricing should be low with comparison to its competitors.
Promotion: Company has a great promotion technique, they attract customers towards
their showroom through advertisement of their items. Such technique helps firm to rise in a great
manner. Through promotion a company can provide his information about the products or any of
services in a clear way (Brassington and Pettitt, 2013). Promotion does help in covering larger
market in effective way. Information about their product can be easily provided to population.
Firm mainly uses promotion when they are introducing a new product or service in market or
want to communicate something unique about product or place.
Selling: ZARA is having a great selling of their items, entity is having a great
perspectives to increase the sale of their products, a quality service always required by every
customers. Information about product helps them to make decisions according to requirement in
changing of any item or service. Having knowledge about market helps in increasing sales
according to requirement, selling process if different from others department it includes
communication directly with customers and to influence them to buy the products.
Financing: if company has a information about the market, then it helps in making
decisions by finance department of ZARA. Firm always thinks to lower the cost and increase the
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sales and profit in huge manner. Market knowledge helps in specifying the finance department to
use finance at particular place and time. Without finance none a function of marketing will work
in right way. Finance is required by every company to make themselves stable in market.
Marketing information management: Thus ZARA always look for the information
available in market and manages that in right manner (Nguyen and et. al, 2012). Management
helps to divide the data according to departments so that they can work in perfect manner.
Coordination among departments in a firm makes you to perform in better manner. Market is
now changing rapidly so it is required by entity to get information about everything in a great
way.
Somehow ZARA is a big brand in UK and this company is performing many different
function according to requirement. Information available to firm helps him to work in better
manner. The firm is using data in perfect way that's why they are making new strategies to
overcome the problems occurred. Entity is having a objective to provide the quality products to
consumers at right price and availability of items on timely basis.
P2 Different organisational function
In a company there are different organisational functions which helps the company to
make themselves stable in market area with there competitors. ZARA has different
organisational function which leads them to work accordingly, company has a great brand
recognition by people (Gertner, 2011). Function should work appropriately, with coordination
among each and every department in organisation so that company can attain its desired goals
and objectives. The different organisational functions are as follows:
Research and Development: Every company success is depended on the quality of
research made. It is required for company to get information about the market in right manner. If
a research is not in correct way than the company has to face a lot problems. Getting information
about market helps them to work according to research. This function works for every
department and provide information to them so that they can work in right manner. Even it helps
in developing the coordination in between departments.
Administration: This function works at middle level in company and it is involved in
bringing the work in complete way. Administration set ups the meetings and makes accounting
and much more (Lehmann and et. al, 2016). Their role in organisation is less but they help the
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firm to run in a smoother way. This is something speaking, engage in a common function so that
firm can meet their objectives and goals. Somewhere this function is required in every company
so that each entity can attain its set work criteria.
Customer service: ZARA is engaged in providing customer service, and they believe in
satisfying the customers. Company knows that a customer can make a firm and can wind up the
whole entity in few days. It is required by organisation to provide quality services with their
products and items, services received by consumers helps the entity to attract those customers
more than a times. Having a good ambience in retail store and people with great communication
with consumers (Peter and Donnelly, 2011). Its really hard to keep each individual happy
whosoever visiting the store for shopping and its a responsibility of staff to take care of their
needs and wants for items and make them happy.
Distribution: Every company has its distribution channel and ZARA has the same they
use those who provide items on time and smoother manner. Distribution channel should be work
according to requirement of companies. Its a responsibility to deliver the products and services
on time at right place too. Company has a great value and recognition in between customers just
because of availability of those items on time and with quality (Xiao-zhong, 2012). Distribution
is also a important function of company as entity depends on them, for availability of items by
them.
Finance: This is the most important function of organisation just because without finance
a company cannot perform any of the task easily. Every department needs some finance to
perform their duties and in correct manner. This function helps to minimize the cost of
production and earn higher profits with the selling the products. Financing department
somewhere creates a coordination among the different departments. If ZARA wants to do a
campaign than they needs finance to promote themselves with public. As every company wants
finance to perform their every task and work on time. Finance make availability of resources on
time top produce items.
Human resource: In ZARA a good amount of employees are working properly, just
because human resource in every firm they make them to get recognized in between people.
Person who are working with them has a good communication skills and they make every
individual comfortable in shopping(Fox and Wareham, 2012). Somewhere human resource is
playing a key role in the development of organisation. Human resource helps in maintaining
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record and solution to workers and reduces the conflicts in firm. They manage create supervise
policies and regulations which is required for each employee to have knowledge of its
appropriate working.
Information Technology: ZARA works on technology nowadays, they provide
advertisement over internet. This function of organisation helps the organisation to always get in
touch with its customers in right form. Technology is on boom presently every company is using
technology to make their firm recognizable by each individual (Natarajan, and et. al, 2013).
Technology is something on which every firm depended in great basis. Technology helps the
entity to explore the market and attract most customers towards there brand,
Marketing: This function of organisation is greatly taken care by them, through
marketing a company can increase their selling and can earn profits. ZARA's marketing team has
a unique style of promoting themselves in between people of country. This has to be done in
such a way where a individual can get attract towards the product or company. ZARA itself a
brand, marketing mainly helps in introducing new products or to provide information about
product or service. This can be done ion different ways and company chooses the marketing style
according to their requirement or objectives.
Sales: It is very much required by company to have sales in great manner. More sales
leads to more profit, but making sales is a very tough job just because, the product should satisfy
needs and wants of individual in right way. Less the sales makes less profits or sometimes wind-
up of retail store. All other function plays their role in effective manner to increase sales of item.
Most of the company is dependent on sale of their products and ZARA is having some thoughts.
To increase sales it is important to satisfy customers and provide quality product and retail store
should be convenient to customers to catch retail store.
Production: Increase in expenses leads to more costly the items is, if low expenses than
sales is on higher notes. Production should be done on accurate basis with having knowledge or
customers requirement. It is something done by human resources, so it is required for companies
to be in coordination with them (Ogunmokun, and Tang, 2012). They are those person who are
busy in creating new items for the ultimate consumers. As senior level should make coordination
with lower level where production of products and services is taking place.
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The function of organisation plays a different role at their own places, working
effectively by each and every department with coordination brings a firm on higher level.
Different functions of organisation has there own roles and responsibilities which has to be done
in efficient manner to achieve their goals and objectives.
P3. Marketing mix applied by different organisations to attain business objectives
Marketing mix of any organisation describes strategy adopted by an enterprise in the
market to make their brand highly recognizable (Jones and Rowley, 2011). It is one of the tool
used by marketing experts to describe brand offerings. The marketing mix analyses company's
brand/product which usually include 7P's (Product, Price, Place, Promotion, People, Processes,
Physical evidence). The comparison of marketing mix i.e. 7 P's of Zara and Unilever can be
shown the following table-
S.No. Marketing Mix Zara Unilever
1 Product Zara is the one of the highly
recognizable brand in the world of
fashion market. Zara is the brand
which is known for its latest styles,
offers variety of products for men,
women and children. All these are
the product strategy of Zara
company. It is product that is being
given to customers for price paid by
them. The product should fit the
consumer needs. Retention of
existing customers and attracting new
ones are the main motive of any
business organisation. It launches
1000 new designs in an year.
Consumers have ample of choices to
get best suited products.
Unilever is one of the biggest
brand offering around 400
brands in market. It broadens
product mix and thus, expands
consumer goods over the years.
They provide products in 4
major categories i.e. Foods,
refreshment, personal care and
home care. The company has
tremendous strength in the
FMCG industry and thus,
successful brand in the market
today. The product mix of
Unilever is highly diversified,
such diversification strategy is
the outcome of acquisition of
various brands.
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2 Price Pricing strategy followed by an
enterprise perform key role. Common
strategy can be market penetration, to
attract lower class people or, it can
premium pricing policy. Zara usually
keep their prices less. They sell their
products at lesser prices as compare
to various other international brands.
They also follow penetration pricing
policy to attract customer from
medium and lower class. Zara has
less cost structure in comparison with
other international products. Thus,
their budget for cost of production is
less and company have more profit
margins.
It also follows penetration
strategy to attract customers and
provide them best quality at
reasonable price. Unilever
conduct intense research for
fixing their prices to get edge
over competitors in the FMCG
industry. Unilever has wide
range of products and prices of
them varies according to
consumer demand and market
conditions.
3 Place Zara has presence in around 100
countries and over 6500 outlets. This
all covers marketing mix place and
distribution policy of the brand. They
also sell through online. Customers
can buy products from their websites.
Zara supply chain always make them
ahead of their competitors. Company
continuously engaged in bringing
new innovative styles and products in
the market.
Unilever is present in around 200
countries. The company has
huge distribution chain consist of
thousands of distributors along
with million of retailers to make
their product reach to the
customers. The existing
customers of Unilever are more,
retention of same is possible
with best distribution strategy.
The company also have
advantage of global
manufacturing and distribution
to bring their cost down and
provide best products at
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reasonable price.
4 Promotion Advertising, personal selling, plays a
key role in promotion of brand and
make them recognizable in the
market. Zara usually spend less
money on advertising of its products.
It does not involve in any campaign
too. Zara product's USP is lesser
price with best quality. Thus,
organisation hesitate to spend money
on promotional activities unlike its
competitors present in the market. It
relies more on positive word of
mouth of customers and social media
for making their brand popular. One
of the interesting point is that they
does not put their logo on their
products. The social media presence
provide value to the company.
By considering competition
prevailing in the industry where
company operates, they need to
increase their promotional
activities. Unilever spend more
money as compare to other brand
in promoting their product,
however company is less
focusing on social media
promotion. They promote their
products through ads, personal
and direct selling. Also they have
wider range of products and
focusing on promotion of each
product is difficult. They also
use digital campaign as a part of
promotional activities.
5 People Every company is dependent on their
people to give them best results.
Human resources management is
essential for company i.e. keeping
right people at the appropriate place.
People are essential part of branding.
Zara people plays a key role in their
success. Their speed of service is
excellent and company also spent
most of their time in training and
developing staffs.
It is largest company of having
around 10000 employees
working and management of
those people matters most. The
staff should have best
interpersonal skills, and
reasonable knowledge of the
product while delivering it to
consumers.
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6 Processes Process that organisation use to
deliver product or service matters the
most. The delivery of service should
define company's image in the mind
of customers. Zara have different
process of purchasing, process of
production and delivery process.
Company spent more time in making
these processes better than those of
their competitors.
Unilever also work more on
providing best delivery services
to their customers. Company has
a wide range of products so that
continuous monitoring of
processes should be there to
make business functioning
smoother and effective.
7 Physical
evidence
Physical evidence strategy used by
Zara as the customers can experience
best service. Zara customers makes
judgement as how they experience
while buying their brands.
Environment at which products are
delivered are best, as organisation use
interior building and great
atmosphere.
Physical evidence of of utmost
importance for any company. It
is for what consumer is paying
price for.
Thus, these are marketing strategy applied by few organisations like Zara and Unilever to make
an impact and create their brands highly recognizable.
P4 –Marketing plan of Zara
If the company needs to attain its goals, proper planning will be required. A marketing
plan is a systematic process of deciding in advance what company needs to do in its marketing
function. Every organisation needs to build such marketing strategy that will retain their loyal
customers and attract new customers towards company's product (Fazlollahtabar, and et. al,
2012). Effective planning is the life blood of any firm. The marketing plan of Zara, one of the
fast fashion brand can be described as follows-
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Company overview – Zara is one of the highly recognizable fast fashion brand. Zara is
the brand which is known for its latest styles, offers variety of products for men, women and
children. It has around 6500 outlets and presence in around 100 countries. Company also sell its
products online and has a large number of customers worldwide. Zara company provide its
products at a reasonable price thus, more customers get attracted towards them. Desire of
designable clothes is fulfilled by Zara.
Objectives – Zara has used best marketing strategy to differentiate their products from
the other brands. They made customers loyal towards their brands by adopting innovative and
creative technological process and bringing in new style of products to benefit ultimate
customers.
Vision – Attainment of leadership through unmatched quality in the fashion world
is the vision of the enterprise. The company is engaged in achieving the same through its various
effective functions.
Mission – Mission defines for what company is working for. Zara mission is to enhance
customer satisfaction by providing best suited products and services.
SWOT Analysis - The strength, weakness, opportunity, threats of Zara, fast fashion
brand help company to make best marketing strategy, to attain organisational goals.
Strength- The Main strength of Zara is, it has presence in around 100 countries. It has
enormous amount of loyal customers. The company always engaged in creating innovative
brands to satisfy customers needs.
Weaknesses- for promotion of brand, company focuses more on the social media as
compare to advertisements. Company should have to build some new strategy which involves
more promotional activities to attract more customers towards their brands.
Opportunity- There are more opportunities for Zara as they can expand their business in
more countries and gain customers loyalty. Online scope need to be taken care of. There are
segments where business can enter and make good profits.
Threats- there are lots of competition for business. Also dynamic environment needs to
be tackle. The industry of fashion is vast, making a recognizable identity is not easier.
Thus, company can make suitable strategy of marketing for targeting proper segment and
gain an edge over its rivals. This helps in attainment of goals and objectives for the firm.
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Porter's five forces model- Porter's five forces model can be an important part of
marketing strategy. There are five forces that impact business organisation. They can be Threat
of new entrants, Buyer's power, Suppliers power, Threat of substitutes, Competitive rivalry.
Threat of new entrants – Uniqueness will definitely attracts new customers. New
entrants will always create hazard for the business. Loyal customers are getting new products at
lesser price so they will switch to some other brand.
Buyer's power – If buyer's are more, definitely company will never going to negotiate
their prices. However if consumers are limited they have to decrease their product price
accordingly. There are loyal customers of Zara which are not going to switch to some other
brand in case of price change.
Supplier's power – getting raw materials at the reasonable price with best quality is the
need of manufacturing process. If suppliers are less, they have no option rather than buying from
them. However they can try out some new suppliers also.
Threat of substitutes – Zara is recognizable in the fashion industry. If a competitors
bring some new innovative product, it will definitely hamper growth of Zara. Thus, substitutes
products creating threat to business organisation.
Competitive rivalry – presence of rivals in the industry needs to be considered. Zara does
not invest more amount on promotional activities. Rivals strategy also impact our business. What
's the USP of brand and how quickly it is attracting customers decide your position in market.
Budget – Zara company is spending lesser money in the promotion of their products. The
following budget for the next 2 years to be spend in advertisement, direct selling and social
media is needed to attract more customers.
S.NO. Promotional activities 1st year 2nd year
1 Advertisement 10000 20000
2 Direct selling 5000 7000
3 Social media 10000 5000
The money spend in advertisement will be around 10000 $. If company get new customers , then
promotional activities needs to make customers loyal.
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CONCLUSION
By the above report, it has been concluded that for the effective functioning of any
business organisation, there should be linkage between various department. Coordination and
cooperation always plays a key role in making business organisation highly recognizable.
Finance, IT, Human resources, production and distribution function all play similar role of
making business ahead of its competitors. For formulating any business plan, Strength,
Weakness, Opportunity, Threats(SWOT), PESTEL and budget analysis and all other various
models needs to taken care of. Zara is one of fast fashion brand which provide quality products at
a reasonable price. The company has around 6500 outlets with presence in around 100 countries.
Zara is the brand which is known for its latest styles, offers variety of products for men, women
and children. The company spent lesser amount in promotional activities. Advertisement aspect
is important for any firm. If company spend more on advertisement, definitely it will attract more
customers and help organisation to accomplish its goals and objectives.
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marketing essentials. 2017. [online]. Available through
<https://www.entrepreneur.com/article/286545> .
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