Marketing Essentials Report

This report provides a comprehensive analysis of marketing essentials, focusing on the roles and responsibilities of the marketing function within H&M, and its relation to the wider organizational context. It explores the application of the marketing mix by H&M and Zara to achieve business objectives. The report also includes a detailed marketing plan for H&M using the 7Ps framework, covering situation analysis, objectives, strategies, resource allocation, monitoring, and budget. The analysis includes a comparison of H&M and Zara's marketing strategies, highlighting the importance of marketing in achieving business success and maintaining a competitive edge.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Explaining the key roles and responsibilities of marketing function....................................1
P2) Way in which roles and responsibilities of marketing relate to the wider organizational
context..........................................................................................................................................2
M1) Roles and responsibilities of marketing in context of marketing environment...................3
M2) Significance of interrelationships between marketing and other functional units within
H&M............................................................................................................................................4
D1) Key elements of marketing function and way in which they interrelate with other
functional units within H&M.......................................................................................................4
TASK 2............................................................................................................................................5
P3 & M3) Different marketing mix to the marketing planning process to achieve business
objectives by H&M and Zara......................................................................................................5
TASK 3............................................................................................................................................8
P4, M4 & D2 Producing and evaluating the basic marketing plan for H&M using 7Ps to attain
overall marketing objectives........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the present era, marketing plays the most important role in making a firm successfully
as it is the biggest reason behind making a customer satisfied and thus, earning higher revenues.
Several activities are there that are essential in marketing and help the business to run in a
smooth manner with sustainability (Dibb and Simkin, 2013). In the present report, as per the
given case study, Hennes and Mauritz (H&M) has been chosen which is running its operations in
an economically, socially and environmentally sustainable manner. Here, there will be discussion
on the key roles and responsibilities of marketing function in relation to H&M and its
organizational context. Apart from that, ways in which H&M and Zara apply the marketing mix
to the marketing planning process to achieve business objectives will be highlighted. In addition
to this, a basic marketing plan for H&M will be produced and evaluated.
TASK 1
P1) Explaining the key roles and responsibilities of marketing function
In relation to H&M, various key roles and responsibilities that marketing function has
with respect to its business are:
Market research – First and foremost responsibility of marketing department is to
conduct effective market research by which better understanding about the target customers can
be gained as well as various available opportunities for the growth and development of business
can be grabbed. Along with that, if marketing department would perform the market research in
an effectual manner, strengths and weaknesses of competitors can be understood and accordingly
H&M can take suitable initiatives (McDaniel, Lamb and Hair, 2012).
Product development – Most important role of marketing department is to develop the
products in such a way that customer’s demands can be effectually met and market share can be
increased as well. Marketing department is having an important role to improve existing products
and enhance the sales of company as well as in providing information related to actual needs and
preferences of customers. In accordance with that, H&M sets the prices of products and prepares
suitable plans in order to launch a new product in the market.
Strategy – In marketing department of H&M, senior managers are the responsible people
for formulating the marketing strategies in line with overall goals and objectives of the
organization. These strategies can be formulated with an aim to increase share in a particular
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market or to launch a new product as well as for entering in a new sector (Babin and Zikmund,
2015). However, before planning the campaigns, marketing department needs to communicate
the same senior management team of company.
Innovation – To sustain and survive in the long run, it is highly significant for H&M to
keep on bringing innovation in the firm so that changes can be done as per the changing needs
and expectations of customers and they can be made satisfied to the utmost level. However, for
innovation, it is important for company to adopt advanced and latest techniques in business.
P2) Way in which roles and responsibilities of marketing relate to the wider organizational
context
To the wider organizational context of H&M, various roles and responsibilities are there
that marketing department of firm needs to perform. Some of them are stated as below:
Increased scope of business – With the help of conducting effective market research,
H&M can search for various opportunities existing in different markets and accordingly, it can
make efforts to grab them. Through this, one of the objectives of organization, that is, increased
scope of business, will be achieved. Along with that, company will gain the advantage of
enhanced market share and customer base (Lamb, Hair and McDaniel, 2011). Also, the market
share and profits will get increased by which H&M will gain a competitive edge over others.
Optimum use of resources – Company is offering fashion and quality at the best price and
thus, it is making an optimum use of resources by which it is gaining the advantage of saving
cost of business. In this, marketing department plays a crucial role as it performs activities in
such a way that maximum profits can be earned by using the minimum resources, that is, in an
optimum manner, in activities like promotion and distribution.
Rise in loyalty of brand – One of the major objectives of H&M is to make the customers
loyal towards brand so that they can be retained in the long run. For the same, marketing
department needs to perform all its activities in a fair and ethical manner so that customers can
be made satisfied (Malhotra, Birks and Wills, 2013). Firm is already charging the reasonable
price from customers for their offered quality of products which is helping in keeping them
satisfied that is the key to win their loyalty.
Enhanced satisfaction level of customers – As per the organization’s main goal, main
emphasis of marketing functions will be on increasing the satisfaction level of customers. It is
because; the firm believes it to be the best suitable manner through which customer’s satisfaction
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level can be maintained and with the same, company will achieve higher growth and success.
This is the reason, H&M is offering products at lower price that is affordable for all customer
segments. However, in order to run in the long run, upgrading the quality of products is
important for firm.
M1) Roles and responsibilities of marketing in context of marketing environment
To deal with the marketing environment effectually is necessary for a firm as it is
dynamic in nature and if proper strategies would not be implemented on time, then it would lead
the business to face severe losses (Jones and Rowley, 2011). In context of marketing
environment of H&M, roles and responsibilities of marketing are stated as below:
Listening to customer needs – In order to establish a successful marketing strategy, firm
is required to get in touch or become closer to the clients so that their needs can be listened and
met in an effectual manner. To receive customer feedback, marketing department of H&M is
responsible to plan necessary means by which true and fair response of clients can be gained.
These means can be like sales team, customer support or the social networks (Lipsman and et.al.,
2012).
Tracking the trends and monitoring competition – Apart from that, without tracking the
latest trends of market and assessing the existing competition, establishing marketing strategy
would be of no use for firm as the results gained will not be fruitful. Thus, identifying the
strategies being used by competitors is important on the basis of which suitable actions will be
taken by the management in order to capture higher market share as well as customer base.
Defining strategic marketing plans – As per the marketing environment of H&M, the
most cost-effective strategies will be those that firm will plan for longer span of time
(Papasolomou and Melanthiou, 2012). For the same, marketing department needs to draft a
document in which it will have to mention the actions that would be undertaken along with the
strengths of company, level of existing competition in market as well as trends prevailing among
target customers. However, these strategic plans must be formulated in relation with the
company and all departmental goals.
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M2) Significance of interrelationships between marketing and other functional units within
H&M
There is a strong interrelationship between marketing and other functional units of H&M
as it is important for the firm to have proper coordination in between all the departments.
Significance of this interrelationship in between all departments can be understood by the
following ways:
Finance – It is important that financial information about existing and new products will
be included in the marketing plans that can only be gained from finance department. Therefore,
on the basis of marketing, appropriate investment decisions can be taken by H&M. Also, sales
forecast can be done through applying proper marketing strategies (Gertner, 2011).
Production – Through marketing, production or operational department of cited
organization can take decisions based on making estimation about number and types of products
and services that firm needs to produce and offer to the target market. On the other hand,
marketing strategies also influence the demand of goods and services with respect to their level
or timing.
R&D – Marketing highly helps the R&D department by giving ideas about the new
products and services that H&M can implement to grab more market share as well as the
customer base. With the help of marketing research, the kind of products or services that are in
demand of the customers can be easily known and firm can take the advantage of same (Fotis,
Buhalis and Rossides, 2011).
Sales – It is the department which plays a vital role in cultivating relationships with
clients and marketing helps in offering the input by which more profits can be gained with
increased satisfaction level of customers.
D1) Key elements of marketing function and way in which they interrelate with other functional
units within H&M
The key elements of marketing function in H&M are research, strategy, planning and
tactics which makes it effective enough for leading a business to achieve success with gaining a
competitive edge over other rivalry firms present in the market.These key aspects are:
Research – Marketing department is required to perform market research in order to
assess the needs and expectations of target customers from company. In order to conduct the
research, firm needs to determine the message and medium that should be adopted to
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communicate the same to customers (Liang and Turban, 2011). Through the information
collected, analysis is done and accordingly, actions are taken by the organization.
Strategy – Once the required and relevant information is gathered, company comes at the
position analyze that where its product is standing with respect to the strengths and weaknesses it
possess. On this basis, strategy is formulated in a way that firm will be able to face and beat the
competition as well as become successful in the market.
Planning – Then comes the planning phase where company plans about the goals and
objectives that it wants to achieve within a stipulated period of time. Mainly, sales forecasting,
communication strategy and financial planning are included in the marketing plan where many
benchmarks are also set with which the actual performance of strategic planning is measured
(Mihart, 2012).
Tactics – One more key element of marketing function is tactics that firm uses mainly to
attract the customers, increase level of sales and beat competition. With reference to H&M, these
tactics are used for providing better value to the target customers so that they can be retained for
longer span of time and firm will stay in the competition with high sustainability.
TASK 2
P3 & M3) Different marketing mix to the marketing planning process to achieve business
objectives by H&M and Zara
For attaining the business objectives effectually, firm uses marketing mix in the
marketing planning process in such a manner that organization will gain higher success and
growth in the marketplace. In order to understand the same, marketing mix of two firms, that is,
H&M and Zara (the biggest competitor of H&M in fashion industry) is given as below: Product – H&M is offering products with reasonable quality as the prices of same are
also lower in comparison to others. H&M is providing a wide range of cloths and
accessories that in line with the latest trends of catwalk (Gertner, 2011). The main
product concept of H&M is EDLP, that is, every day low price. The firm is offering
products like cosmetics, lingerie, sportswear and home department and fulfilling the
expectations of customers. However, on the other hand, Zara offers more fashionable
designs in its cloths along with high quality. In comparison to H&M, quality offered by
Zara in products to ultimate customers is better and thus, people are more satisfied with
this brand. Also, company is having high goodwill in the market with a large customer
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base. So, it can be said that to stay in the competition for longer duration and attain
business objectives of marketing planning process, to keep on innovating the product and
bringing modifications in them is necessary for both the firms. Price – H&M is charging a very cheap and cost based amount from customers for the
products and services offered as in return the value and quality given to them is also not
very high but satisfactory to target people (Essentials of Marketing, 2017). However, in
order to run business for longer span of time, it is important for company to enhance the
quality of products. But, for the same, prices will also be needed to increase so that high
value in return to the customers can be provided. On the contrary, Zara is also charging a
fair and affordable price from customers for the products and services it offers. Although,
the prices charged by Zara are more than H&M, but still, it is successful in capturing
higher market share. In comparison to Zara, H&M is having a large customer base as it
targets all kinds of people so that everyone can be able to purchase the products. With
setting a suitable price for all products and services offered, business objectives of
marketing planning process can be effectually achieved by H&M and Zara. Place – H&M is famous for having its stores and departments in well-known and popular
shopping streets. Along with that, company is having its online presence as well through
which it solves the grievances of customers if any they have with the products and
services of organization. Also, firm gives different access to customers to buy products so
that convenience can be provided to them with respect to interaction with company,
browsing as well as ordering the offered items anytime and anywhere. On the other hand,
Zara is also having an effective distribution system by which it is offering customers the
products and services with providing utmost convenience (MARKETING THEORIES –
THE MARKETING MIX – FROM 4 P’S TO 7 P’S, 2017). With the help of effective
distribution system, company is expanding and increasing its scope at a rapid pace. Thus,
it can be said that through having effectual systems of making products available to
ultimate customers, both the firms can attain the business objectives of marketing
planning process. Promotion – For promoting the products, H&M gives due consideration and spends a lot
of time like on direct marketing or outdoor advertising that are important parts of its
marketing campaign. Apart from that, company also uses press and famous blogger that
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involves some celebrities of the world as well who carry out the advertising message. In
addition to this, there are some other ways too by which H&M does promotion of its
products like video and print advertisement. Further, as per the present scenario, to beat
competition and perform business in line with the latest technologies, company is using
e-marketing as well by which it is gaining the advantage of attracting large customer base
at low cost and within short duration of time (Dibb and Simkin, 2013). On the contrary,
Zara does not give much focus on promotion because of which people actually do not
known about all its offerings and thus, customer base of the firm is not so large. But, to
attain the business objectives of marketing planning process, it is important for the firm
to do promotion of products and services effectively. People – It is important for both the firms to give due consideration on needs and
expectations of employees working in the organization as without them, attaining
marketing planning targets are not at all possible. As H&M is planning to expand by
entering in new markets, keeping employees satisfied is important for them. In case of
Zara also, it is significant to keep the workforce happy. For the same, healthy and
positive working environment can be provided to them along with various benefits. Process – H&M is using such a process by which at lower cost, maximum profits can be
gained. However, for improving the quality of products, it is important for organization to
improve the processes so that high value can be provided to customers (McDaniel, Lamb
and Hair, 2012). Zara is having a very effective and efficient processing by which it is
providing high quality products to customers in a cost effective manner. Physical evidence – In order to keep employees happy and satisfied as well as to make
the processing smooth in firm, it is the responsibility of management to offer suitable
working environment to workforce with all facilities which they need to perform the firm
in effectually. Therefore, both; H&M and Zara need to consider infrastructure of
company with offering all basic facilities to employees so that they can accomplish their
tasks on time and in the desired manner.
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TASK 3
P4, M4 & D2 Producing and evaluating the basic marketing plan for H&M using 7Ps to attain
overall marketing objectives
In today’ scenario, with increase in the level of competition in market place, it has
become high important for H&M to keep the customers satisfied so that they can be retained and
would not switch over to other rivalry companies. For the same, an effective marketing plan is
required using 7Ps so that marketing objectives of organization can be effectually attained
(Babin and Zikmund, 2015). Thus, H&M can plan to bring some herbal cosmetics that will be of
very high quality and good for the skin of customers. It will help in grabbing the attention of new
customers and retaining existing ones.
Situation analysis – For making situation analysis, H&M will be required to conduct
SWOT analysis under which it will come to know about the strengths, weaknesses, opportunities
and threats of business. Through this, firm will be able to assess its current as well as future
position in market.
Strengths – Major strength of H&M is that it is delivering fast fashion to women, men,
teenagers as well as children at low prices in comparison to all its competitors. It is providing
products from modern basics to high fashion to the target segment and gaining advantage of
increased customer base and higher profits.
Weaknesses – Main weakness of H&M is that it is having negative publicity as people
perceive that the quality offered in products is not up to the mark and thus, its prices are low.
Therefore, in order to deal with this weakness, company can enhance the quality of products by
use of advanced technologies (Lamb, Hair and McDaniel, 2011).
Opportunities – By offering new products like herbal cosmetics, firm can expand in new
market areas and grab the attention of customers who are conscious about their skin and health
and use only herbal products. Also, through bringing innovation or creating modification in the
existing products, company enhance its market share, profits as well as customer base.
Threats – Major competitors of H&M are like Zara and Burberry who are giving tough
competition to the organization. Also, international and national retailers of fashion products are
also proving to be a big threat for organization (Malhotra, Birks and Wills, 2013). People in
target market who are health and skin conscious prefer only high quality products which is a
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threat for H&M and thus, to retain them, it is significant to launch herbal cosmetics in the
market.
Objectives:
 To make the customers aware with knowledge of products offered by H&M by 20% till
August, 2017
 To enhance the level of sale up to 25% till 2018
 To grab the market share up to 15% till the end of December, 2017
Strategies:
Following strategies can be used by H&M for targeting the customers:
Market development – As per this strategy, firm can plan to enter into new market
segments by offering a new product that is, herbal cosmetics, for health and skin conscious
people.
Market penetration – In this strategy, firm can bring some modification in its existing
products and promote the same with using suitable promotional tools and techniques in the
existing markets only.
Promotional activity – For promoting the products, H&M is using direct marketing,
outdoor advertising, press and famous blogger as well as video and print media. As per today’s
technological world, e-marketing is being used by company to promoting its products to a large
number of people within a short period of time (Jones and Rowley, 2011).
Allocation of resources – For all the marketing activities, it is necessary that resources
will be allocated to all departments as per their necessity so that no hindrance would occur in the
execution of marketing plan.
Monitoring and controlling – When the strategy is being implemented, H&M will be
required to monitor and control the execution that whether the plan working as per decided
standards or not. In case of any deviations would be found, on immediate basis, corrective
actions will be taken by the marketing team.
Budget
EXPENSES AMOUNT
Conducting market research £5000
Promoting activities performed under
marketing of products
£3500
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Other expenses £3000
CONCLUSION
It can be articulated from the above report that marketing plays a significant role in the
survival of an organization. Thus, in order to gain a competitive edge over others, it is highly
important for the firm to perform marketing activities in an effectual manner. It has been
assessed from the report that if H&M wants to stay in the market for longer duration, to do
marketing with due consideration is crucial. Without performing activities of marketing in an
effective manner, it would not be possible for organization to grow and beat the competition. As
H&M is having a lot of competitors in clothing and cosmetics retail sector, it is vital to offer
differentiation and innovation in products and sustain for longer span of time.
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