Strategic Marketing Report: M&S - Corporate Strategy and Marketing

This report delves into the realm of strategic marketing, focusing on its application within the retail giant, Marks and Spencer (M&S). The introduction sets the stage by highlighting the significance of strategic marketing in today's dynamic markets and its role in enhancing productivity and profitability. The report then explores the relationship between corporate and marketing strategies, emphasizing the need for alignment between top-level corporate objectives and departmental marketing initiatives. The analysis extends to evaluating internal and external environments, employing tools such as SWOT, McKinsey's 7S framework, and PEST analysis to assess M&S's strengths, weaknesses, opportunities, and threats. The report further examines the development of marketing strategies, including the identification of business goals, market research, customer profiling, and the utilization of the 7 Ps of marketing. Finally, it analyzes various marketing communication strategies and their execution, providing a comprehensive overview of strategic marketing principles within the context of a leading retail company.

STRATEGIC
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
1.1 Assessment of role of strategic marketing........................................................................3
1.2 Analysing the relationship between corporate strategy and marketing strategy..............4
1.3 Analysis of how marketing strategy is developed............................................................5
LO2 .................................................................................................................................................6
2.1Evaluating approaches to internal environmental analysis...............................................6
2.2 Evaluating approaches to external environmental analysis..............................................7
2.3 Explaining how internal and external analysis are integrated..........................................8
LO3..................................................................................................................................................9
3.1 Analysing decisions and choices to be made at corporate level.......................................9
3.2 Assessment of how these decisions affect marketing at business unit and functional level
..............................................................................................................................................10
3.3 Analysing approaches to competitive positioning of organisation.................................10
LO4................................................................................................................................................11
4.1 Identification of range of strategies which contributes to competitive strategies..........11
4.2 Analysis of marketing communication strategies...........................................................12
4.3 Analysing marketing strategies, their application and execution ..................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic marketing requires high level of skills, critical consciousness of the current
issues and challenges and capability to react towards fast changing markets. Business
organisation makes use of strategic marketing for developing plans to reach and satisfy their
customers by increasing productivity, performance and profitability. Usually, organisation make
written strategic marketing plan which depicts what kind of programs are going to be used for
marketing within a time limit and how they are going to be executed (Smith, 2011). It also helps
the business enterprises to become more innovative and penetrate the markets through a better
way. Firm can consider ways such as newsletters, podcasts, and mails in their strategic
marketing planning. In simple terms, it is means that through this the companies differentiates
themselves from their rival firms by capitalising strengths for providing constantly better value
to the customers against its rivals (Nijssen and Frambach, 2013). The present study is focusing
on assessing the role of strategic marketing in Marks and Spencer Company which is one of the
leading multinational retail firms in UK. The report is going to highlight relationship between
corporate strategy and marketing strategy. Along with this, it will also cover the approaches for
internal analysis of the company and integration of internal and external analysis.
LO1
1.1 Assessment of role of strategic marketing
Strategic marketing plays an essential role in the retail company Marks and Spencer
because it helps in accomplishing goals through utilisation of scarce resources in an effective
manner. Allocating and utilising scarce resources effectively helps the cited organisation to
increase its sales and competitiveness. This supports the firm in increasing its abilities and
effectiveness as compared to its competitor. Strategic marketing affirms that correct materials are
selected for producing of goods and services in the company (Quinton and Fennemore, 2013). It
also assures that production is done according to the needs of customers. If the cited firm
understands how to make an integrated marketing strategy, then it will support its individual
decision in terms of particular marketing tactics. The overall importance of strategic marketing in
the stated retail company is highlighted in the below headings: Helps in determination of optimal prices: One of the important components of strategic
marketing is to set right price for products and services on the basis of their market

research. If the firm realises that its customers desire for high end goods, then its pricing
strategies may need to sell products at the prices which make a high end sensed value. Aids with marketing communication: The market research will support the organisation
in developing its brand or image which it desires to establish. In absence of market
research and a strategic marketing plan, the company can react to requests which do not
get along with its brand identity which it has made on the basis of its efforts put in
product development (Michael, 2016).
 Streamlines development of product: Strategic marketing helps the mentioned firm in
developing products and services which has best possibilities of making profit. This is
due to the fact that strategic marketing begins with research of market which considers
optimal target customer, activities of rivals and current trends.
1.2 Analysing the relationship between corporate strategy and marketing strategy
Corporate strategies and marketing strategies often coexists or flap over each other,
opposite to the popular beliefs, the key attention of marketing consists of strategic plan's features
of development, pricing and distributing product and services. Both these terms differs when
corporate strategy does not focus on development of product or services and sales. Rather it
focuses more on initiatives of profitability. The top management of Marks and Spencer have to
keep closer eye on their marketing department for determining if corporate strategies they desire
to take further align with its marketing strategies or not (Line and Runyan, 2014). For instance, a
corporate cost containment strategy which involves use of cheap material for making products
which can harm its brand which depends on supporting its prices, brand strategies and
distribution.
Corporate strategies and marketing strategies both are equally essential for the stated
retail company. The firm is made up of several departments like finance, human resources,
information technology etc. so, all departments have to perform collaboratively for
accomplishing targets of the corporate strategy. Therefore, corporate strategy should not neglect
strategic goals of departments or desires and preferences of customers. They must be aligned
with strategies of the departments. Same is for the marketing strategies also. For instance, the
cited organisation can make plans to reduce cost through corporate strategy. For this motive, it
cannot compromise on quality of its offerings by making use of cheap raw material and
unskilful labour. So, it can be concluded that corporate strategies must be given due importance

to current strategies of different departments in its future planning. Both the strategies have to be
aligned for success of the whole company (Aspara Hietanen and Tikkanen, 2010). The cited
organisation cannot choose one strategy over the other or it cannot ignore any one of them
completely.
1.3 Analysis of how marketing strategy is developed
Well developed marketing strategy helps the cited firm to recognise its business goals
and create powerful reputation for its products and services. Development of marketing strategy
which consists of elements detailed below will support the firm in making most of its investment
and improvement in sales results. Identification of business goals: For developing marketing strategy, the cited organisation
has to identify business goals so that it can further define a combo of marketing goals for
supporting them. While setting business goals, it is critical to be focused for effective
measurement of the results against what was being set for achieving (Weerawardena and
Mavondo,2011). State marketing goals: Now the stated organisation has to define set of particular
marketing goals on the basis of business goals. It will inspire the firm and help to make
benchmarks for success. Market research: Conducting research is vital part of marketing strategy. The firms
requires to collect information on market like its size, growth, social trends etc. Developing profile of potential customers: Now it has to take use of market research for
developing a profile of customers which it is targeting and then it has to identify their
needs. Developing profile of competitors: As part of marketing strategy the company has to also
make a profile of its rivals by identification of their products, supply chains, pricing and
tactics for marketing (Musibau Oluyinka and Long, 2011). Create strategies for supporting marketing goals: Now the company has to make a list of
its target market and make strategies for attracting and retaining them. Use 7 Ps of marketing: Then the organisation has to identify tactical marketing mix iwht
the use of 7 Ps of marketing. If it takes the correct combination of marketing, its
marketing strategy has more chances of becoming successful.

 Test ideas: While making decisions regarding tactics, the firm can conduct some online
research, test ideas and approaches on its customers and employees and revise what
works for it.
LO2
2.1Evaluating approaches to internal environmental analysis
For evaluating internal environment, Marks and Spencer can adopt approaches such as SWOT
analysis. This analysis will be helpful for the firm to do a quick revision of is strategic situations
and evaluate is there is a suitable match between internal resources, external environment and
values. With this, McKinsey's model can also be taken in use to do internal analysis which
includes independent factors that are categorised in soft and hard components.
 Explaining internal environment: An internal environment comprises of components
within the organisation. This includes current employees, management, corporate culture
that states behaviour of employees. However, some of these elements impact the entire
firm, others influence only management.
 Approach for internal environmental analysis:: One of the approach to for studying the
internal environment is McKinsey 7s framework. The model consists of seven
independent variables that are classified as either hard or soft elements. Hard elements
are strategy, structure, and systems. They are easy to define or identify and management
has a direct impact on them. On the other hand, soft elements like shared values, skills,
style and staff are very difficult to define and are less tangible. They are more affected by
culture but both of them are equally important for Marks and Spencer to become
successful.
 Strengths and weaknesses of McKinsey 7s Model: The benefits of this framework
includes its effectiveness for diagnosing and understanding the organisation. It serves as a
guide for bringing changes in organisation. Another advantage of the framework is that it
is a set of rational as well as emotional constituents. But the key weakness of this model
is that it neglects the differences. Many firms which applied this model have failed.
 Importance of McKinsey 7s Model: This model is very essential for understanding the
gaps which appears in the cited retail company that creates imbalance. It also facilitate

the organisation in knowing system change and the impacts on the entire organisation. It
is important for aligning departments and processes while acquisition or mergers.
2.2 Evaluating approaches to external environmental analysis
For the purpose of evaluating external environment, there are approaches such as PEST analysis,
Porter's five forces model. Porter's five force model is a tool which analyses competition level in
an industry and developing business strategies. The cited company has to consider the five forces
which are threat of new entry, threat of substitutes, buying power of customers, bargaining
power of suppliers, and industry rivalry.
 Explaining external environment:The external environment includes the factors outside
the organisation which influences the functioning of the firm. Some of the external
components can be manipulated by firm marketing, whereas others need adjustments to
be made by the company.
 Approach for external environmental analysis:For analysing the external environment of
Mark and Spencer PEST analysis is being conducted which is used for assessing four
external forces which are related with situations happening business. PEST is acronym
for Political, Economic, Social and Technological factors. This analysis will help the
cited retail company in determining how these forces will influence the performance and
activities in long run. It is used in collaboration with other types of analysis tools such as
SWOT analysis and Porter's Five Forces for providing a clear understanding of
conditions and connected internal and external forces.
 Strengths and weaknesses of PEST analysis:The advantages of this analytical tools are
that it gives a simple and easy to be used for analysing external environment forces. It
helps in reducing the influence and effects of prospective threats to the cited retail firm.
The tool assists and promotes development of strategic thinking in the company. But it
has some demerits too such as the firm can oversimplify the data and information
collected which is taken in use for decision-making. The procedure are to be done on a
regular basis for its effectiveness and most of the times firm may hesitate in making this
investment.
 Importance of PEST analysis: The outcomes by doing PEST analysis can help the
managers of the mentioned organisation to conduct a SWOT analysis. The political,

economic, social and technological forces which are identified in the analysis can be
classified as the opportunities or threats in the SWOT analysis.
2.3 Explaining how internal and external analysis are integrated
By using combination of external and internal analysis, Mark and Spencer will be capable
to generate strategies in pursuant of competitive benefits. Through understanding how internal
and external factors align, the cited organisation can take them together in an idealistic manner in
which their strengths can acquire opportunities while dealing with threats and correcting
weaknesses. By executing strategies which considers both the internal and external
environmental factors, the firm is likely to receive competitive advantages and make
improvements in its capability to adapt. This is termed as profit yielding strategic thinking. The
strategic development needs the cited retail enterprise to know the opportunities and threats of
the external environment and benchmark them against the strengths and weaknesses of its
internal environment. The integration of internal and external environmental forces in pursuant
of competitive advantages is a continuous procedure. Therefore, strategic management is the
procedure of regularly evaluating both the environmental factors for assuring that the firm gains
an incomparable position in the competition in that for generating value for he stakeholders and
customers. The execution of strategies which considers both the internal and external
environment sooner or later accomplishes dynamic abilities for the firm. For example, Marks
and Spencer has a strength of information technology used for communicating with its loyal
customers. So when PEST analysis is conducted by the firm, the changes in technological field
in terms of new technology and advancement introduced, it will become an opportunity for the
firm to grab it quickly.

LO3
3.1 Analysing decisions and choices to be made at corporate level
Decisions and choices are ongoing process which includes development of different strategies to
attain the goals and principles which are based on examined outcomes. These includes all the
decisions and choices made by managers of different levels (Rundh, 2011). The board of Mark
Spencer is responsible to take following decisions :
 Protection and enhancement of the brand, its ethics and business principles.
 Administration of the business on daily bases in response to the market with costing and
promotional plans.
 Monitoring of processing and controlling of the group's business etc.
 Set the vision for the company, develop its group strategies and design standards and
improve performance of the company.
 To develop, dispose, and attain assets and entities of the organisation (Ogunmokun and
Tang, 2012). To mark the opportunities and improve the competitiveness of the company
to sustain in the market.
 Review of human resource management strategies which involves employee advantages,
promotions, bonuses etc.
 Analysing succession efforts and leadership in the organisational group etc.
Mark and Spencer have developed cultures that attracted sales staff of high quality. The
company offered cultural expertise which helped it to gain sustainable advantage. Also, global
market growth of the company contributed in its success. Mark and Spencer focused on core
expertise, values, principles rather than diversification to a great extent. The company did not

analyse what its competitors were offering and continued successfully to provide efficient basic
essentials to its customers.
The Chief Executive of M&S has planned to convert the company to an international
retailer. Another strategy of M&S is to increase profits by targeting it to the markets of India and
China in order to turn it to global brand. Also, it is focussing on the strategy of marketing mix.
3.2 Assessment of how these decisions affect marketing at business unit and functional level
The above described decisions are important for operational management which is made
on the basis of particular division of company such as Mark and Spencer. The firm has to make
several decisions for its different functional departments such as human resources, finance,
marketing etc. Functional strategies includes some key considerations such as development of
products. For instance, the company has to make decisions regarding selling of their products
and services to its consumers (Kashmiri and Mahajan, 2014). On the other hand, functional
strategies in cited retail organisation are a part of its wide strategic planning. It is majorly in
terms of market driven venture such as Marks and Spencer in which marketing strategies are
designed at functional level which heavily impacts its other important action plans.
For taking a specific strategy for marketing, it needs to determine needs of customers and
assumption which results in providing benefits in the market. These advantages can be different
in terms of goodwill, location, staffing and other amenities etc. For identification of primary
strategies for marketing, the marketers of the mentioned retail company has to prefer the real
preferences and needs of its customers and then pass this information and details to the
operational department. It is generally to create and develop such products and services at
affordable cost which leads to fulfilment of their incurred costs by together acquiring broad
range of consumers (Egan and Thomas, 2010). For this purpose, its advertising department has to
create strategies for promoting its offerings which must be present with full assistance of
customer services. Therefore, it can be asserted that strategies of marketing are directly related to
other corporate strategies and so it impacts it in a significant manner.
3.3 Analysing approaches to competitive positioning of organisation
Competitive positioning is a means for defining the path in which Marks and Spencer
will try to differentiate its products and services from its competitors. It is significantly
influenced by the vital structure of positioning in market which is further impacted by the market
profile i.e. the size, scope of growth and number of rival firms etc. For this purpose, Porter's Five

forces model is an appropriate approach which will assist the mentioned retail firm to suitably
position itself in market by approaching its five main components which are threat of new entry,
threat of substitute products, bargaining power of suppliers, bargaining power of customers,
industry rivalry (Felzensztein Brodt and Gimmon, 2014). It will help the firm in recognising any
type of threat of new entries, competitive rivalry, power of supplier, power of buyers, and threats
of substitutes. It is a simple and easy tool for understanding where does power lie in business
situation. It helps to understand strength of present competitive position as well as strength of the
position the cited firm desires to achieve. For taking use of this analytical tool the stated
company has to see each forces and then pen down the observations. It can also prefer
brainstorming of the relevant forces for its market or situation and then look against the variables
which are described in above lines. After that it has to mark the major factors and summarise the
size and scale of the forces (Hajli, 2015). This model was designed in response to the SWOT
analysis which can be applied in diverse range of issues. It can be for aiding the organisation in
generating more profits of supporting government for stabilising industries.
LO4
4.1 Identification of range of strategies which contributes to competitive strategies
Competitive advantages play a vital role in strategic marketing in which it states features
of a business which supports to perform outstanding in the market. In this discourse, there is
Porter's Generic Strategies which have four key elements which are discussed here: Cost leadership: With this type of strategy the Mark and Spencer can set out to be a low
cost producer in the retails industry. The sources of cost benefits are different and rely of
industry's structure. This might consist of economies of scale, technology, access to raw
materials and other factors (KelleR Parameswaran and Jacob, 2011). The company has to
be internal strong with strength such as- skills in creation of products for effective
manufacturing, high level of specialisation in manufacturing process engineering,
effective channels of distribution, Differentiation strategy: In this type of strategy, the cited company desires to become
unique in the industry in which it is operating with some dimensions which are highly
valuable for the buyers. For making this strategy as success, the firm requires to conduct
good research, innovation and development, highly competent and creative product

development team, powerful sales team having capability to successfully convey the
detected strengths of the product. The risks involved with this type of strategy comprises
of imitation by rival firms and changes in tastes, preferences, desires, wants of customers.
In addition to this, the cited company can pursue focus strategies which can make it even
greater differentiation in its market segments.
 Focus strategy: By following this strategy, the cited organisation focuses on specific
niche markets and through understanding dynamics of its market and unique wants of its
customers, developing unique and low cost products for market. As the firm offer
customers in its market uniquely good, it leads to building strong brand loyalty amongst
its consumers (Foxall, 2014). This strategy has two sub-divisions, they are: Cost focus
strategy and Differentiation focus strategy.
It is not necessary that these generic strategies are compatible with each other. If the cited
company tries to get benefits of all these strategies, in this trial it cannot accomplish any benefit
at all.
4.2 Analysis of marketing communication strategies
Marketing communication aids in developing brand awareness that refers to customer
translating information of products into perceptions regarding features of the product and its
position in the market. Marketing communication strategy means the plan for the business in
terms of information of product diffusion and development of brand awareness (Artemia, 2013).
If Marks and Spencer desires to make the most of its marketing budget, below are the strategies
to reach and involve consumers in an effective manner:
 Content marketing: Content marketing includes many types such as news, videos,
ebooks, case studies, image galleries, blog posts, infographics, webinars etc. The basic
concept in this strategy is that it gives useful information to prospective consumers even
they may not wish to buy the products offered by the cited company.
 Using videos for driving involvement: As the YouTube and other video sites, this
strategy can be natural if the firm has developed its video. It will be an excellent method
for increasing sales. Video has a human face on the brand and products and services of
the cited retail company (Moutinho and Southern, 2010). Just a one or two minute video
can describe the benefits of the products and services quicker than a person can read on
the website of the organisation.