Marketing Assessment: M&S Audit, Segmentation, Research & Strategy

This report presents a comprehensive marketing assessment of Marks & Spencer (M&S), a UK-based multinational retailer. It includes a marketing audit utilizing SWOT, PEST, and Porter's Five Forces to analyze the company's current performance and market position. The report proposes two market segmentation strategies based on age and location, using the STP model, and discusses market research methods to understand customer growth within the retail market. Furthermore, it explores the concept of buying behavior and justifies a chosen marketing strategy tailored to the suggested segments. The analysis covers M&S's strengths, weaknesses, opportunities, and threats, along with political, economic, social, and technological factors affecting its operations, and concludes with recommendations for enhancing the company's marketing effectiveness.

Introduction to
marketing assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing audit of current performance of Marks & Spencer....................................................3
Proposal of two sets of market segmentation..............................................................................7
Market research............................................................................................................................8
Buying behaviour.........................................................................................................................9
Justification of chosen marketing strategy...................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The process of marketing involves the business activities that are undertaken by an
organisation in order to promote the selling or buying goods and services. It is considered as an
activity, set of institutions as well as processes to create, communicate, exchange and deliver
offerings that have value for potential market share. In this report, Marks & Spencer is taken into
consideration as an organisation for demonstrating different aspects of this report. Within this
existing portfolio, there will be a marketing audit of the current performance of the business and
an evaluation of existing marketing strategies and position of the organisation in the market (Bar-
Zeev and et.al, 2022). Moreover, there will be a proposal of two sets of market segmentation
criteria that could be successfully targeted by organisation. This report also involves a market
research in order to explain the ways in which customer groups will grow the business within
retail market place. Furthermore, there will be an explanation on the concept of buying behaviour
including with a research for justifying chosen marketing strategy in order to meet requirements
of suggested segments.
MAIN BODY
Marketing audit of current performance of Marks & Spencer
The process of marketing audit is considered as the comprehensive assessment of all the
perspectives of the operations of marketing within an organisation. It involves systematic
evaluation of plans, goals and objectives, strategies, business activities, marketing employees
along with the organisational structure. The concept of marketing audit facilitates the
organisation in analysing the overall promotional environment of the business.
In this report, Marks & Spencer is taken into consideration which is a UK-based
multinational retailer headquartered in London, England. The company deals in selling clothes,
food product as well as home products (Caranante and Williams, 2018). In order to analyse the
promotional environment of the respective organisation, various kinds of models and
frameworks are going to be used. The description of different models is given as below:
SWOT Analysis:
This tool helps the organisation in analysing its internal strengths and weaknesses along
with the external opportunities as well as threats that impacts the performance of business. In
order to analyse the internal environment of organisation, this tool is used by the companies.

SWOT analysis of Marks & Spencer would help in understanding the current position of
business that is described as follows:
Strengths Weaknesses
Updated technology: The company is using
highly updated and developed technologies
that facilitate it in developing as well as
innovating products and services of
organisation such as food, clothes, etc. It also
assists managers of Marks & Spencer in
reducing the cost of business as well as saving
their time (Carlson and et.al, 2019). By selling
innovative products that are made from
updated technologies, the respective
organisation gaining competitive advantages
over its rivalries in the market such as
Debenhams, Lawson, etc.
Brand value: Marks & Spencer is a well-
known brand that facilitates in offering the
quality of products to its market share. Brand
value of the company assists in attracting a lot
of customers and therefore, increases the sales
of respective organisation.
Higher costs: The business operations of the
respective company is highly depended on the
manpower in various processes. Because of
that, the costs of business goes higher and is
also consuming more time. It becomes the
major weakness for Marks & Spencer and
hence, hampers the profitability as well as
productivity level of organisation.
Reduction in sales: After the pandemic
situation of COVID-19, the volume of sales of
the company in some of the stores got
shrunken because of the non-availability of
products s well as poor system of supply chain.
During that time, the respective organisation
was unable to fulfil the demands and
requirements of its potential customers by
supplying the products as per the perceptions
and taste of market share. This resulted in
adversely influenced the brand image within
the market place.
Opportunities Threats
Segmentation of markets: For Marks &
Spencer, market segmentation is the great
opportunity for business in order to expand its
market and operations that facilitates in
earning as well as maximising profitability
level within organisation. Respective company
Changing trends: Nowadays, the fashion
industry is taking changes frequently which
can be a threat for the respective organisation
(da Gama, 2019). As taste as well as
preferences of customer base are changing in a
rapid way and also they need some new taste in

should introduce new market segments like
furniture that will help the business in
increasing the number of customers and
business operations.
E-commerce stores: Nowadays, market share
is more concerned about its lifestyles and
generally avoid crowded areas. It is the
opportunity for respective company to focus on
sub-markets and offer services to them with the
help of online mode where it is not physically
available in order to sell its products.
clothings having unique designs and patterns
that make their appearance differentiated
among friends and relatives.
High level of competition: Marks & Spencer
has various competitors such as Debenhams,
Lawson, Morrisons, Asda and many more.
Therefore, it will be crucial for respective
organisation for gaining competitive
advantages over its rivalries in the market
place (Denault, 2018). In order to do this, the
company should use effective marketing
strategies that would facilitate the business in
achieving goals and objectives in an effective
manner.
PEST Analysis:
With the help of this model, an organisation can analyse the influence of macro-
environmental factors that impacts the performance of an industry. Managers of Marks &
Spencer use this framework to analyse trade dynamics that will further facilitate them in their
business growth. PEST Analysis of Marks & Spencer is explained as under:
 Political factors: These factors include trade restrictions, taxation policy, tariffs and
many more. Brexit is the major political factor for Marks & Spencer and in context to this
factor, decisions taken by United Kingdom to leave European Union influences the
business operations of organisation because now company has to face trade regulations
that are imposed by European Union while trading at Europe.
 Economic factors: Such factors involve employment rate, inflation rate, growth rate and
many more (Guseva, Tyuneeva and Faysi, 2022). The economy of UK is market-oriented
and stable and Marks & Spencer is primarily operated in this country. Organisation has
strong brand image within the markets of the country and also has numerous customers.
But economic lockdown in 2020 impacted operations of business adversely as during that

time the sales of the company got decreased and company had to suffer a large amount of
losses.
 Social factors: Such kinds of factors are useful within the business in order to design a
better strategic plan according to the trending and changing patterns of market share.
Marks & Spencer focusses on clothing of people who are above the age of teenagers but
now the market rends have been changed within the market at a rapid rate. Youth is
preferring to purchase those clothes that fashionable and trendy with the help of knowing
and understanding the customers perceptions.
 Technological factors: In recent times, highly updated as well as latest technologies are
used within the organisations that positively impacts business operations of company
(Kilbourne and Thyroff, 2020). Marks & Spencer is using highly technically developed
machines that facilitates the business in making more food of superior quality and
fashionable clothes within a shorter period of time as well as on less cost. This help the
company in capturing more of its customers and thereby increasing profitability level
within organisation.
Porter's Five Forces:
This framework facilitates an organisation in analysing the level of competition within
the industry in order to gain competitive advantages over the competitors in the market. This
model facilitates Marks & Spencer in identifying and analysing the structure of the organisation
that helps company in ascertaining its business strategies. Porter's Five forces model of Marks &
Spencer is given as follows:
 Competitive rivalry: It is said to be a number of rivalries as well as their capability in
order to compete within marketplace. Marks & Spencer has a large number of
competitors such as Lawson, Morrisons, Debenhams, etc. and it is a high threat for the
organisation in order to increase profits and sales ratio.
 Threat of new entrant: It is defined to the entry of new organisations within existing
markets (Labanauskaitė, Fiore and Stašys, 2020). Low switching cost enables new
entrants to get enter into market and compete with established brands. Marks & Spencer
has high operational effectiveness which is typically lack in new entrants so there is low
threat of new entrants for Marks & Spencer.

 Bargaining power of buyers: This force involves number of buyers within market place
and significance of each customer to the organisation. It is easy for customers to shift
from products of Marks & Spencer to other rival brands having low cost of switching. In
times of global lockdown, Marks & Spencer had high threat of bargaining power of
customers as market share wants those products that are useful to them and are of less
cost.
 Bargaining power of suppliers: This type of force involves strengths as well as size of
supplier and the cost which is incurred by an organisation in switching. There are various
suppliers in retail industry who provide products to Marks & Spencer and similar
companies. During COVID-19 pandemic situation, suppliers in retail industry were not in
a position to supply goods in full swing (Matthes and Ball, 2019). There is moderate
threat of bargaining power of suppliers for Marks & Spencer and it results in low
switching cost of suppliers.
 Threat of substitute products: There are various organisations in retail industry who are
offering similar and substitute products in the market. Buyers do not want to buy those
substitute products in normal times but during pandemic situation of COVID-19, Marks
& Spencer along with its competitors have come up with unique and innovative products
which becomes high threat of substitution for the company.
Proposal of two sets of market segmentation
The model of STP is used by the organisations for making an analysis of market in order
to target the market segment. This tool helps in examining the products and services or the way
in which organisation can communicate benefits of using its goods to potential market segments.
STP Model for Marks & Spencer is discussed as under:
Segmentation: This stage is concerned with the process of marketing that involves identification
and selection of specific market segment consisting of customer groups those are having same
needs. Marks & Spencer wants to conduct market segments on the basis of age group and the
location (Molitor and Dintsios, 2021). It has made an analysis of the needs of western garments
by customers and therefore it has prepared a list of buyers that wears western clothes on the basis
of age group and location through market research and then established different segments of
such buyers for the positioning of clothes. Marks & Spencer also puts European nations because
of intense demand of western clothes.

Targeting: It is considered as the process through which an organisation recognises its target
market and then advertise its products to them through various modes such as digital marketing,
online and offline advertising, etc. Marks & Spencer targeted those countries of Europe where its
stores are already selling its products and selected consumer age group of 18 to 30 years. The
company classified these segments into two groups in which first section is of low price and
another is of high price.
Positioning: This is the last stage of the STP model which consists of setting brand image in the
minds of its segmented buyers. At this stage, organisation frames different business strategies
such as marketing strategies, promotional strategies and many more in order to inform
segmented buyers regarding benefits and features of products of company. Marks & Spencer
select the buyer segment of 18 to 30 years age group and buyers of different price sections as
well as informing segmented buyers regarding the changes in new brands of company and
existing clothes, different sales schemes, changing trends, etc (Puşcaşu, 2018). Company can
also make the changes in its websites and can add low price section within the website to capture
those buyers who access low price. Under this promotional campaign, Marks & Spencer can use
different techniques of the marketing such as television marketing, social media marketing,
digital marketing and fashion shows.
Market research
The process of market research is concerned with determining the viability of a new
product or service through conducting a research directly with the prospective customers. This
concept allows organisations in order to define the target market as well as get ideas and other
feedbacks from buyers regarding their perceptions in products and services. Marks& Spencer
uses the process of market research because it gives significant information to the managers of
the company regarding the market and the business landscape. Market research also help the
respective company in discovering the process through which the organisation is perceived by
the targeted audience that it wants to reach or capture.
This section gives the explanation regarding the ways in which customer groups will
grow the business within retail market place (Riswanto and et.al, 2019). In the above study, it is
analysed that the market is targeted into two segments in which the first customer group is Age
group and the second customer group is Location. Age is a significant element to consider at the
time of analysing the market share. The products and services of the organisation are more likely

to appeal to the specific age groups. In this present study, the age group of 18 to 30 years is
targeted as the company is offering its western clothes for this age group. It is offering trending
and fashionable clothes to the youths that makes them differentiated among their relatives and
friends. This strategy would facilitate the company in capturing customers of the respective age
groups as young generation is interested in buying trendy and fashionable clothes. Location is
another customer-group that would help the business in achieving its growth through selling
products at those markets in which the company is already having its stores. These customer-
groups helped the company in achieving its business growth and success.
Buying behaviour
Buying behaviour of a consumer is said to be the process of taking decisions and the
behaviour or actions of the market share that are involved in buying and making use of the
products of an organisation (Streissl, Egsmose and Tarazona, 2018). It is defined as the study of
the processes of selecting, buying, suing and expressing ideas, good as well as services by the
individuals, groups or companies in order to satisfy the needs and requirements of the potential
customers. There are four main kinds of buying behaviours of the consumers and these are
variety-seeking behaviour, complex buying behaviour, habitual buying behaviour and
dissonance-reducing buying behaviour. Understanding the concept of buying behaviour is crucial
for every organisation as it can get and understand the expectations of the market share. This
process also facilitates in understanding what makes a consumer to purchase the products of the
particular company. This is very essential for an organisation in order to assess the kind of
products that are liked by the customer base so that they can release it to the market place. By
making a better understanding of how the buyers think, decide and feel, a business can easily
ascertain the way and methods to offer or sell its products and services to the potential market
share. Marks & Spencer is using the demographic segmentation in order to recognise the needs
of its targeted audience. The respective organisation targets its market share by income, age,
social class, gender, etc. as the buyers change their wants as well as needs at anytime. This
process helps the respective company in extending the volume of its sales as well as profitability
and productivity within the business.
Justification of chosen marketing strategy
Marketing strategy is defined as the overall game plan of a business which is framed to
reach out to the potential customers within the market. Such strategies are significant within the

business because it facilitates in developing the goods as well as services with the help of the
best profit making potential. Within any organisation, marketing strategy plays a crucial role in
stating those areas that are influenced by growth of business and thereby assists in designing an
organisational plan in order to meet the needs and wants of the consumers. From above
discussion, it is justified that managers of Marks & Spencer should use promotional strategies of
digital marketing, television advertising, fashion shows that would help the company in
capturing more of its customers. These promotional strategies would also provide assistance to
the managers of the organisation in achieving the success and growth of business (Xia, 2018).
With the help of fashion shows, the respective organisation can discover its products to its
potential customers and along with it, the company can also describe the features and benefits
that are associated with the products. This would assist Marks & Spencer in gaining competitive
advantages over the rivalries in the market. By advertising the products of organisation on
television, the company can capture more customers towards the brand as with the help of
television advertising, the company can promote its products in a very presentable manner in
such a way that customers can easily get attracted towards it. In this way, the respective
organisation can maximise the level of profitability and enhance the efficiency of the business.
CONCLUSION
From above explanation of the report, it has been concluded that the concept of
marketing helps the company in achieving its success in an effective manner by designing
various strategies. This process facilitates the business in meeting its organisational goals and
objectives in such a way that it can fully utilised its resources. Marks & Spencer has been taken
into consideration in order to demonstrate various prospects of this report. Within this existing
study, a marketing audit on the respective organisation has been conducted through various
models and frameworks such as Swot analysis, Pest analysis, Porter's five forces and many more.
Moreover, there has been an explanation regarding proposal of two sets of market segmentation
and along with it, there has been also a market research on the the organisation's STP model.
This report has also included the concept and understanding of buying behaviour of consumers.
Furthermore, there has also been a justification of chosen marketing strategy for the respective
business for its growth and success.

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