Marks & Spencer's Marketing Strategies: A Case Study

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Marketing Essentials
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Table of Contents
Introduction....................................................................................................................................................3
L01.................................................................................................................................................................3
Explain the role of marketing and how it interrelates with other functional units of an organisation......3
How roles and responsibilities of marketing relate to the wider organisational context...........................6
Lo2.................................................................................................................................................................7
Compare ways in which organisations use elements of the marketing mix (7 PS) to achieve overall
objectives...................................................................................................................................................7
LO3..............................................................................................................................................................12
Develop and evaluate a basic marketing plan.........................................................................................12
Conclusion...................................................................................................................................................22
References....................................................................................................................................................22
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Introduction
Marketing is the main function of all the business organisations because it involves all the activities
started with product manufacturing to its distribution. Without a marketing function, no business can
survive in the market (Zikmund and Babin, 2012). Marks & Spencer is a UK based retailer organisation
and set up in 1884 by Michael marks and having a close partnership with Thomas Spencer. This
organisation has 1,382 stores across the world including 468 stores in the Middle East and Eurasia. The
company is offering their clothing, household products, and luxury food products both in the department
store and online store (M&S, 2019).
This report is going to include the role of marketing and its relationship with the other functional units of
an organisation. This report will also include the discussion on 7ps of marketing and how these are useful
in achieving business goals and development of a marketing plan for an organisation will get analysed.
L01
Roles of marketing and its interrelationship with other functional units of an organisation
Marketing
It includes a management process through which product and services move from its original destination
to the customer destination (Baker, 2016). The marketing department of an organisation is responsible for
manufacturing and after that successful distribution of the goods and services in the market. A company's
survival depends upon how effectively they put their marketing efforts. (Lamb, et.al, 2011).
Concept of marketing
Marketing concepts are divided into 5 categories and these concepts define successful efforts of the
marketing to achieve present and future growth in the market (Lancaster and Massingham, 2010). The 5
marketing concepts are production, selling, product, marketing concept and social marketing concept.
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Production concept
According to this concept, the customer focuses on those products which are easily available in good
quantity at a low price rate and this concept gives attention to the more production.
Product concept
According to this concept, consumers choose those products which have good value and quality. This
concept state that consumers will purchase those products which are beneficial to them (Hollensen, 2010)
Selling concept
This concept defines that consumer focuses on those products which are sold through using good
promotion strategies and aggressively promoted in the market(Baker, 2016).
Marketing concept
This concept includes the identification of needs and demands of the product and supply of the product
according to their demand. This concept places customer satisfaction at the top priority and creates the
branding of the business in the market (Baker, 2016).
The societal marketing concept
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This concept focuses on the well- being of the customers and society as a whole the company identifies
social needs of the customers and satisfy them in a great manner it also includes social and ethical
consideration in marketing practices (Baker, 2016).
Roles and responsibilities of a marketing function
Relationship between customers and the organisation
Marketing focuses on the promotion of the products and services among the customers and marketing
shapes the image of the organisation in the mind of the customers and gives confidence about their
products and services. It establishes a relationship with the customers by identifying their need and
creates products to satisfy their needs (Jobber, et.al, 2012).
Increase in revenue and profit
Marketing is responsible for generating revenue and profit for the organisation. Marketing function
focuses on selling and advertising of the products and services. It helps in the promotion of the products
so that purchases can be done by the customers. Effective marketing strategies help in generating more
revenue for the M&S Company and increased revenue brings out profit for the organisation (Comstock,
et.al, 2010).
Branding of the organisation
The marketing function helps in creating a brand image in the market through effective branding
strategies, active participation in public activities, interaction with the customers through feedback
collection and advertising of the products and services (Gök and Hacioglu, 2010). Every product
development and launch starts with the marketing and an end with the marketing where marketing
identifies the customer needs and try to satisfy their needs. Marks & Spencer organisation is adopting
effective branding strategies to create customer awareness about their products and services.
Customer loyalty and customer retention
For establishing a successful business customer loyalty and customer retention is very important because
it enables repeat purchases of the customers (Gök and Hacioglu, 2010). Marketing function plays a great
role in maintaining customer loyalty and customer retention for the marks & spencer organisation.
Marketing function does not only help in the retention of old customers it also helps in bringing the new
customer for selling the products.
Some other Roles of the marketing
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Meet consumer needs and wants
The marketing department of Marks & Spencer helps in identifying needs and wants of their customers
and develop their marketing strategy accordingly to satisfy the need and desires of the customers.
Ensures organisations survival, growth and reputation
Survival of a business depends upon customer retention and its market share. Marketing function helps in
achieving the objective of mark & spencer organisation because it is customer centric and satisfies
customer's need beyond their expectations.
Widens market
The marketing department of marks & Spencer uses different mass communication tools such as
promotion, sales, event marketing, and advertising through digital media to promote their products in a
wide geographical area. Revolution of digital technology has made marketing more interactive.
Face competition
Marketing function helps in monitoring the market closely which is helpful in maintaining the balance of
consumer's expectations and competitors offer. The marketing department of Marks & Spencer is
adopting effective marketing strategies to win over their competitors.
roles and responsibilities of marketing relate to the wider organisational context
The roles and responsibilities of the marketing function closely relate with the other organisational units
in the organisation because the other departments like human resource, finance and production affect the
marketing functions in a great manner which will discuss as follows:
Finance department
The finance department helps in raising fund for the promotion and advertising of the products as well as
for research and distribution cost the marketing department is depending upon the availability of the
adequate budget which is facilitated by the finance department (Dibb and Simkin, 2013). The finance
department of Marks & Spencer makes effective coordination with the marketing department for
smoothing functioning of the organisation
Relationship with the human resource department
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All businesses require a qualified talent pool for marketing and selling of the product and services and
this facility provided by the HR department of the company. The HR department of marks & Spencer
helps out in bringing new talent for effective marketing of the products in the market.
Relation with the production department
The marketing department of marks & Spencer coordinates with the production department to ensure the
on the timely delivery of the products to the customers. The marketing department is also responsible for
providing quality services and experiences by collaborating with the production department Hunter,
(K.E., et.al, 2013).
Thus, all these departments are linked with each other for making effective marketing strategies and
providing good products and services to the customers. The marketing department establishes good
relationships with other functional units through effective collaboration and cooperation which results in
the effective functioning of the overall organisation (Morgan, 2012). The marketing department of marks
& Spencer coordinates with the other department unit to operate all the marketing related functions
effectively and to ensure a healthy relationship among the organisation.
Lo2
Comparison of ways in which organisations use elements of the marketing mix (7 PS) to
achieve overall objectives
Marketing mix
The marketing mix includes those tools and instruments which are used by an organisation to influence
the demand for their products and services (Luan and Sudhir, 2010). These tools are helpful in knowing
the requirement of the target market and directs towards the ways to fulfil these requirements which help
in generate more profit for marks & spencer organisation (Magrath and McCormick, 2013). The brand
value of the company can be enhanced through use effective marketing mix elements and these results in
generating more profit for the marks & spencer organisation. The marketing mix elements for mark &
spencer organisation are as follows (Marketing mix, 2019).
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Products
The products can be termed as offers presented by an organisation in order to sell it to the customers who
help in satisfying customer's need as well as achieving organisational objectives. It develops the
relationship between buyer and seller. The value of a product represents its brand value. The marks &
spencer organisation is focusing on selling high-quality fashion and design products and different own
branding as well as homeware products (K.E., et.al, 2013). The marks & spencer organisation uses more
natural sources and raw material in designing their products. It also focuses on reducing wastage through
reuse of old clothing and other products (Marketing mix, 2019).
Price
Price is an important element of the marketing mix which defines the value of a product and service in
monetary terms. An effective price strategy is helpful in attracting more customers towards the
purchasing of the products(Magrath and McCormick, 2013). The marks & spencer organisation designs
its pricing strategies according to the customer group choice and ability to pay for quality designs and
products. According to the M&S cheap price and discount go against brand reputation. The marks &
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spencer organisation provides discounts on their products during the offseason and festive season. Many
types of discount offers are available in their retail stores(Marketing mix, 2019).
Place
The place can be termed as the establishment of distribution centres in the market place to serve a wide
range of target customers of that area so that customers can make purchases from there. The mark &
spencer organisation has 343 full-line stores and outlets for selling their products in different areas. The
company is also using its own website for selling their products online. The marks & spencer organisation
downsizing the large space stores and moving towards web-based and online stores and also saving
operating cost as well as a control operating cost for the benefits of the organisation (Marketing mix,
2019).
Promotion
Promotion of products and services includes those techniques which are used to promoting the products
and services using different tools. The marks & spencer organisation uses advertisement through
newspaper, magazine and TV for distributing information regarding their products among the customers
which increases customer awareness about the products and services offered by the organisation. The
company is using different electronic media like sparks and web-based promotion technique like their
website marks & spencer .com for promoting their products and services utilizing the digital platform
(Marketing mix, 2019).
People
People are a most beneficial element of the marketing mix because people who are working with the
organisation are responsible to carry out the different marketing functions and selection of most
appropriate people for marketing is necessary to serve a target market effectively. the marks & spencer
organisation focuses on continuous employee development and training as well as a committed
workforce(Marketing mix, 2019).
Process
The process of an organisation has a great impact on the results and outcomes of the marketing function.
An organisation needs to use an effective process to operate all the marketing related functions effectively
for attainment the goals of the organisation(Magrath and McCormick, 2013). The process of marks &
spencer organisation includes traditional point of sale tills, a self-service kiosk, coffee areas and snack
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bars, physical evidence etc. today the company uses IT based fast services and help desk centres for
consumers as well as smartphone access for shopping (Marketing mix, 2019).
Physical evidence
This is another important element of the marketing mix which is given by the seller to the buyer that
represents the transaction and appearance of the product which a customer wants to purchase. The marks
& spencer organisation uses web-based shopping platform as physical evidence of the products and
services (Marketing mix, 2019).
Hence, managing the balance between these marketing elements is necessary for any organisation. The
company is required to put many factors while deciding for perfect marketing mix elements. The
marketing mix elements are important for achieving the marketing objectives of an organisation. The
marketing planning of mark & spencer organisation is totally depending upon the marketing mix
elements. For making an effective marketing plan the company needs products to sell than pricing should
be determined by the organisation according to their set goals. The promotion mix is helping in providing
information regarding the products among the customers so that they can take a purchase decision. For
making the purchase of any product the customer needs to a distribution centre and for that purpose marks
& Spencer has different retail stores. The people, process and physical evidence also play an important
role in effective marketing planning and that helps in achieving marketing goals and objectives.
elements of
the marketing
mix(Fahy and
Jobber, 2015).
Marks & Spencer Farfetch
product This company is providing designing and
high-quality clothing for men's and women's
as well as different homeware products
This company is also providing
different types of clothing for people
through using online fashion store
price This company mainly focusing on customer
group choice and their income level to pay
quality designs and products and determines
the price of its products accordingly
This company is providing qualitative
product at a low price and shipping
price is also very low that is the reason
the company is getting high exposure
promotion This company is using different electronic
media and online website as well as different
advertisement techniques like newspaper
This company is using their online
website and different social media for
promoting their products
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magazine
place This company has a wide distribution
network such as 343 full-line stores and
outlets for selling their products
This company is providing access to
1000 brands in 40 countries using its
online fashion store.
people The company has qualified staff in their
store to ensure the effective functioning of
marketing of the products
This company also has good
employees, logistic partners and
suppliers who ensure the availability of
the product in the market
process The process that company involves is more
efficient it focuses on self-service in its
distribution centre and also uses a web-based
process for purchasing of the products
This company enable the online process
of making purchasing of the product
and have own stores in different areas.
Physical
evidence
This company provides physical evidence
through web-based technology that includes
its website
Physical evidence presented through its
website
LO3
Develop and evaluate a basic marketing plan
A marketing plan is essential for a business to know the present conditions and future opportunities
available in the market (Wood, 2011). A well- defined marketing plan is a report which defines how a
company utilizing its marketing mix elements to achieve marketing objectives. The marketing plan can be
considered as an outline for the marketing activity (Westwood, 2013). The marketing plan helps in to
identify the strength and weakness of the firm as well as creating an effective marketing strategy ( Ferrell
and Hartline, 2012). The marketing plan for the mark & spencer organisation will help in to know what
tools are to be used and how the resources will be utilized in the marketing process to achieve marketing
objectives of the organisation. Development of a marketing plan involves the following steps:
i. Situational analysis
The situational analysis includes the current marketing condition of the company which helps in to
determine the current position of the company, its sales and its competitors in the market. The analysis of
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these factors will help in to know the current share of the company in the market and how other factors
affect it (Davis, et.al, 2011)
a) Company overview
Marks & Spencer is a UK's multinational retailer company with 1382 stores in all over the world. This
retailer is offering clothing, household items and other luxury food products both at distribution centres
and online stores. Stores of M&S are generating revenue of £5.2 billion and £4.0 billion in the selling
clothing and food products. It is serving 33 million customers in the market. It is considered a market
leader in the UK in the selling of men's wear and women's wear. The current market share of department
stores estimated is 7.6 % and discount fashion retailer market share is 7 % in 2018 but M & S losing its
market shares for two decades (Marks & Spencer, 2019).
b) Sales trends
The sales of the company’s product were falling down in the year of 2018. Food products sales were
down 2.9% and clothing and home products sales down by 1.1%. The company’s sales were getting down
due to the pressure of the competitors in the market (BBC, 2019).
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