Marketing Essentials Report: Startup Business Marketing Strategy

This report, titled "Marketing Essentials 1," provides a comprehensive analysis of marketing strategies for a startup business, specifically Prezzie Shopping, which focuses on customized clothing and gift items. The report begins with an overview of the business idea, highlighting the growing demand for personalized products and the influence of current trends in the UK market. It then explores the role of marketing within the organization, evaluating key marketing functions such as market research, product development, advertising campaigns, pricing, and distribution channels, along with their interconnections with other departments. Section 2 delves into the marketing planning process, emphasizing the significance of a robust marketing strategy for startup success, including setting SMART objectives and designing an effective marketing mix. The report also includes a comparison with the online fashion brand Farfetch. Section 3 focuses on evaluating the target market through an STP strategy, designing a market implementation plan for the first advertising campaign, designing a promotional budget, and evaluating techniques to monitor the effectiveness of the marketing plan. The report concludes with a summary of the key findings and recommendations for Prezzie Shopping's marketing efforts.

MARKETING ESSENTIALS
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Contents
INTRODUCTION:.........................................................................................................3
SECTION 1:..................................................................................................................3
BUSINESS IDEA OVERVIEW AND ANALYSIS OF CURRENT TRENDS
INFLUENCED IDEA..................................................................................................3
ROLE OF MARKETING IN ORGANIZATION...........................................................4
EVALUATION OF MARKETING FUNCTIONS IN ORGANIZATION AND
INTERCONNECTION WITH OTHER DEPARTMENTS...........................................4
SECTION 2...................................................................................................................6
EVALUATION OF MARKETING PLANNING PROCESS AND SIGNIFICANCE OF
MARKETING STRATEGY TO SUCCESS OF STARTUP BUSINESS....................6
CONSTRUCTION OF SMART MARKETING OBJECTIVES FOR BUSINESS.......6
DESIGNING OF MARKETING MIX AND COMPARISON WITH FARFETCH
ONLINE FASHION BRAND......................................................................................7
SECTION 3...................................................................................................................8
EVALUATION OF TARGET MARKET BY PRODUCING STP STRATEGY............8
DESIGNING OF MARKET IMPLEMENTATION PLAN FOR FIRST ADVERTISING
CAMPAIGN...............................................................................................................8
DESIGNING OF PROMOTIONAL BUDGET............................................................9
EVALUATION OF TECHNIQUES TO MONITOR THE EFFECTIVENESS OF
MARKETING PLAN...................................................................................................9
CONCLUSION:...........................................................................................................10
REFERENCES:..........................................................................................................10
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INTRODUCTION
Marketing is an essential part of a business organization; marketing consists of
components like advertising, promotion, and other kinds of promotional activities that
enhance sales in the business(Blythe and Martin 2019). The key marketing concepts
are used in this study to establish a marketing strategy for new companies and the
company's smarter goals are discussed in the report to gain the attention of potential
investors in the start-up in retailing of Customised clothes and gift items. In order to
track the feasibility of the business model, the report will also evaluate the
effectiveness of project implementation techniques. The essential promotional
activities that need to be done by the firm are also explained in the report.
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SECTION 1
BUSINESS IDEA OVERVIEW AND ANALYSIS OF CURRENT TRENDS
INFLUENCED IDEA
OVERVIEW OF BUSINESS IDEA: The idea of the business or startup is to provide
customised clothes and gift materials to the customers. The customised clothes
include a name printed on it, pictures on the tee available in sizes and also providing
customised gifts like pictures printed on cups, cushions, greeting cards, love letters
or any kind of other gifts item. Such kinds of shops are not easily available in the UK
and most importantly the need for customised goods is increasing in the market
(Primo et al. 2020).
The initial idea of the business was to launch some products which have rare
existence in the markets of UK, this came out to be the best plan to run a startup and
people needed customised tee's for the whole family or for husband-wife but it was
difficult to make it happen in an easy way that's why the owners started doing this
and by providing goods in comfortable prices and ease to purchase or make things
of their choice it will create a good brand image of the product as well as of the
organization (Primo et al. 2020).
Prezzie shopping started their business in a short venture that provides the goods
and stuff to the local population of that area. They are planning to expand their
business in many forms but it requires funding as well as the company is trying to
start a business in an online platform or digital marketing as well (Primo et al. 2020).
EVALUATION OF CURRENT TREND INFLUENCED THE IDEA
In the UK the demands of customised goods are increasing day by day, people want
to gift their loved ones the things which remind them or their personal memories
that's why this thing influenced the owners of Prezzie to start a business which can
fill the void in this sector (Sung, and Woo, 2019).
In social factor of macro environment demand for personalised products for personal
use as well as for gift has increased. This means that individuals and customers are
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willing to have products that are exclusively available for them only. This includes
their name and pictures on products.
This also gets affected by technological factor in macro environment. Technology
have simplified the process of creating personalised and customised products for
customers and this is why technology is one of the element to influence this business
idea.
Eco-friendly items- This is another macro environment trend influencing the
business idea. This means that people have become very conscious towards
environment and this has led to increase in demand of personalised and customised
products. There are ways in which eco-friendly products can be created by
businesses that are customised and personalised as per requirements of customers.
The fashion and gifts are never out of trend, if we talk about fashion then the fashion
styles play a pivotal role in culture and that they have the ability to bring members
with varying styles together to admire their own uniqueness. Fashion is the
willingness for society to help preserve social prestige within society and make you
know like you are standing out from the crowd. Customised t-shirts and dresses are
very attractive nowadays since they represent a different individuality of the
community, or their family friends, and lovers as well. Wearing matching outfits is a
common thing which is fun for most of the peoples (Sung, and Woo, 2019).
ROLE OF MARKETING IN ORGANIZATION
Marketing plays a key role in the entrepreneurial venture and is responsible for
openly acknowledging, eagerly awaiting and pleasing stakeholders by serving their
preferences cost-effectively.Marketing has a wide approach to meeting the key need
and targets of the organization. It requires strategic planning in such a way that it
creates a mutual relationship or understanding between the customers and product
(Primo et al. 2020).
Marketing is an essential portion that is covered by an organization for the
promotional, advertising and increasing the satisfaction of the customers in many
ways, mostly it makes the organization aware of the needs and demands of the
customers and their expectations as well. The marketing department of an
organization makes a plan or effective strategies that help in the product
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development and in completing the goals and objectives of the organization (Primo
et al. 2020).
EVALUATION OF MARKETING FUNCTIONS IN ORGANIZATION AND
INTERCONNECTION WITH OTHER DEPARTMENTS
There are several functions of marketing which involves some strategies and
methods
MARKET RESEARCH
Market research is any suite of techniques used to gather information to help define
the target market of a business. This can be used by Prezzie as an effective
approach to design better products, enhance user segment, and build a brand
strategy that generates quality leads and boosts sales volume. As Prezzie deals with
the manufacturing of customised products and clothes this helps in knowing the
current trend and brand value of the product (Kim, 2019).
PRODUCT DEVELOPMENT
Product development probably refers to all the other steps responsible for taking a
product towards market release and beyond from idea or concept. Product creation
involves the whole journey of a product since Prezzie is part of the fashion industry
that makes unique products that require certain approaches to establish the perfect
product for clients (Kim, 2019).
DEVELOPMENT OF ADVERTISING CAMPAIGN
In order to attract the targeted customer in a suitable way, companies use their
innovation when conducting market research and effective advertisement. This
involves social media campaigning, marketing by marketers, company articles in
business magazines as well as on various digital platforms (Kim, 2019).
PRICING
Pricing is an important segment in the success of any product or organization, if a
newly launched brand or company provides some products in a small amount in high
quality then this will have all the attention of the customers and enhance the brand
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name and company’s growth as well. The pricing is the most important factor to keep
in mind before the launch ho a product (Sampaio, et al. 2019).
DISTRIBUTION CHANNELS
The distribution channel is a system of network of the companies or third parties by
which a good or service travels until the final buyer or the final customer is reached.
Wholesalers, distributors, retailers, and even the Internet would provide distribution
channels. In a retail business, this plays a very important role. A network that has
been created by the organizations for enhancement of their products and serviceis
called distribution channel (Sampaio, et al. 2019).
INTERRELATION OF MARKETING WITH OTHER DEPARTMENTS
The fashion retail marketing department is responsible for advertising the goods and
services offered by the company and exploring unique ways to boost customer
satisfaction with the business and maximize the business actions and increase the
company's profitability. Marketing executives and associate members of staff
manage the marketing team. The marketing team is responsible for the management
of the market researches and launching the product in the market and its impact on
the business (Sampaio, et al. 2019).
Marketing with the HR department
The marketing department works for a team in the organization, the team includes
some talented members who workin coordination with the marketing department, the
HR department works to interconnect the company's strategies and core branding
with the employees. The HR department assures that the best employees within the
business are employed who really are efficient and useful in promoting the products
to the end-users, while marketing distributes the target market to the employees
(Feng, et al. 2018).
Marketing with finance departments
Finance department deals with the budget allotment for the different activities in the
organization, for the distribution of equal budget in the organization it is important for
them to have the exact distribution of capital in order to calculate the number of
profits generated by the organization, the marketing department works to ensure that
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the marketing efforts are under the budget allocated by the company in coordination
with the finance department. The marketing department focuses on increasing the
number of sales, while the finance department focuses on increasing free cash flow
and retaining business accounts (Feng, et al. 2018).
Marketing with the production department
The marketing department is concerned closely with the production department to
ensure that effective manufacturing is designed to address actual and future
consumer demands, and the high quality and type of goods that are generated in the
organization can also satisfy the volume of orders produced by marketing within the
time schedule required for delivery. The marketing department is required to look
closely on the production units and making sure about how the products are being
made in the organization in order to make a suitable marketing plan for the product
(Feng, et al. 2018).
SECTION 2
EVALUATION OF MARKETING PLANNING PROCESS AND SIGNIFICANCE OF
MARKETING STRATEGY TO SUCCESS OF STARTUP BUSINESS
The building up of an organization and its working depends upon an effective
marketing plan and strategies, strategic planning is a long term process designed to
make an organization growing for a long period of time. A marketing plan includes
some proper techniques of the advertisement and promotion of the products
(Tardan, et al. 2017).
EVALUATION OF MARKETING PLANNING PROCESS
The evaluation of market planning includes some steps:
Setting mission- This is first step in marketing planning and this involves developing
mission for organization. Mission outlines what organization wants to achieve and
also involve how they are likely to achieve desired outcome.
Corporate objectives- This is concerned with setting objectives for organization.
This involves setting objectives for a certain time that organization will achieve in that
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time (Opresnik, 2018). Objectives are time bound measurable outcomes that are
developed to achieve overall mission and vision of organization.
Marketing audit- This is concerned with audit of marketing environment of
organization. This helps in determination of strategies that are likely to succeed in
market where company operates. In addition to this, marketing audit can be done
through Pestle Analysis and analysis of different trends in market and analyzing
strategies of competitors.
Swot Analysis- This is a step in marketing planning that includes identifying and
analyzing strengths, weaknesses, opportunities and threats in organization.
Strengths and weaknesses are internal factors and elements of organization
whereas opportunities and threats are predicted on the basis of external environment
of the organization linking it with internal environment. This helps in identifying
elements that can be used and benefit for marketing of organization.
Marketing Objectives and Strategies- This step involves developing marketing
objectives (Biroscak and et.al., 2018). This means identifying and developing desired
outcomes through marketing activities of organization. Once marketing objectives
have been developed it is followed by developing strategies through which
organization can achieve its objectives.
Marketing Mix- Marketing mix includes setting different strategies of marketing
through different elements of marketing. These elements include product, price,
place, promotion, people, physical evidence and processes. On the basis of these
factors and elements strategies are developed for marketing.
Marketing Budget- This is a very important step of marketing planning in which
organisation develops marketing budget. In addition to this, detailed budget includes
allocation of financial resources and budget for all activities and actions in marketing
of the organisation.
Detailed action plan- This is a detailed action plan regarding marketing activities
and their implementation by organisation (THIS, 2020). This is very important step
that outlines how planning will be implemented and organisation and coordination of
different activities of marketing.
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SIGNIFICANCE OF MARKETING STRATEGY IN STARTUP SUCCESS
The marketing is an essential step that can be used for making a startup successful
is marketing strategy (Tardan, et al. 2017).
As the plan for a startup in the fashion industry requires a proper strategy or goal like
a person who is starting the organization requires having a proper plan regarding the
growth and development of the organization. The aim is required to be set like in the
upcoming 10 years what growth rate does the company is going to possess. The
fashion industry is growing day by day and an estimation rate that was examined in
the year 2017 was that the industry had a growth rate of 5.46 per cent. The gift
market in the UK has 8.6% growth rate, as the cards are widely used there for
Christmas, Valentine's Day, Easter, and other occasions like New Year cards etc.
the digital marketing processes are most common nowadays because they help the
business to earn almost double, if the startup is active on online as well as on offline
platform then the profit percentage increases rapidly (Tardan, et al. 2017).
CONSTRUCTION OF SMART MARKETING OBJECTIVES FOR BUSINESS
The marketing objectives are incomplete without using the SMART process in the
organization; the smart processes include Specific, measurable, achievable,
relevant, and time (Strengers, et al. 2017)
SPECIFIC
The Prezzie shopping store wants to create a great brand value and image in the
fashion as well as in the gifting market to provide customised gifts and clothes to the
customers and the local residents of UK for being a leader in the market and gain
profits in the organization (Strengers, et al. 2017)
MEASURABLE
This step measures or calculates the growth of the organization, in the way of
achieving its goals and objectives. It also measures the percentage of efforts
required to meet the objectives of the organization.
As Prezzie is a new startup in the fashion industry that’s why it is required to sell
about 20% of its products as the first lot of the customised t-shirts or dresses and
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secondly 40% of the gifting items in the first three months of the year (Strengers, et
al. 2017)
ACHIEVABLE
The objectives that are designed are needed to be ensured as they are achievable
or they can be achieved by using some specific methods and techniques in order to
meet the goals and objectives of the organization. The objectives required can be
achieved by using some steps or some organized steps. The Prezzie will focus on
achieving the targets before time in order to enhance sales (Sconyers, 2017).
RELEVANT
The basic aim of the organization Prezzie is to enhance their shares in the market by
about 30% in the next 2.5 years by using specific techniques and strategies for this
purpose (Sconyers, 2017).
TIME
The organization aims of increasing a boost in the sales by about 10% by the end of
the year with the new product that this offers such as customised gifts and clothes
(Sconyers, 2017).
 Increasing market share of Prezzie by 30% by 2022
 Creating sale of clothes and gift products in a ratio of 20% and 40% by 2021
because gift products are more profitable Prezzie aims at developing its
presence in gift market to create strong foundation for organisation
 Increasing sale of clothing and gift products by 10% by 2021
DESIGNING OF MARKETING MIX AND COMPARISON WITH FARFETCH
ONLINE FASHION BRAND
The marketing mix is a way to make the growth rate high in the organization by using
the effective strategies of the 7P’s of marketing. The marketing mix includes the
contribution of several techniques and observations that are made to unlock the
excessive growth in the organization (Moayeri, et al 2018).
PRODUCT
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Product refers to the sales of the high-quality items that are manufactured by the
organization, like for the Prezziethe products are the clothes or customised clothes
and the customised gifts that this provides to the customers.
Farfetched does not make their own products they sell it from other boutiques and
brands, though it is a big firm that has ventures in the UK but ships the products to
about 190 countries worldwide. But the products are not manufactured by this
company (Han, 2020).
PRICE
The Prezzieis a new startup in the fashion industry that’s why the pricing strategy of
this organization is designed for attracting the customers towards the product and
business. The pricing is based on the target market and the needs and demands of
the customers (Han, 2020).
Farftechuses the price penetration strategy in the organization in this strategy the
organization sets lower prices than the competitors in order to win the shares of the
market.
PLACE
The startupPrezzie is focusing on segmentation of the local residents of UKas of now
and because the grouping is done according to this that’s why the place is the UK
and the nearby cities (Han, 2020).
Farftechcompanyis selling the products in about 190 other countries that are the
business positions have a great exposure here in this firm
PROMOTIONAL ACTIVITIES
Prezzie uses social media platforms or other offline platforms for its promotions, and
advertisements or television commercials etc. for this purpose of marketing of the
product. Also uses discounts and gifting the customers etc. for gaining the
customer's attention(Han, 2020).
Farftech uses strategies like direct selling and high profile advertising etc. the
company focuses on pushing the product to the extent in order to let more people
know about it.
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