Marketing Essentials Report: Zara SA Marketing Strategies Analysis

This report provides a comprehensive analysis of Zara SA's marketing strategies, examining key elements such as marketing functions, their roles, and interrelationships with other functional units within the organization. It delves into the application of the 7Ps marketing mix, comparing Zara SA's approach with that of competitors like Marks & Spencer. The report evaluates various tactics employed by Zara SA to achieve its business objectives, including product development, pricing strategies, and promotional campaigns. Furthermore, it explores the significance of interdepartmental coordination and communication within the marketing department and its impact on overall organizational goals. The report also covers the role of marketing in relation to the marketing environment including customers, competitors, suppliers and the general public. The report is designed to help students learn about marketing essentials by providing a real-world case study of Zara SA's marketing practices.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY A...................................................................................................................................4
Marketing functions and their roles and responsibilities............................................................4
Interrelationship of marketing department with other functional units......................................6
Critical evaluation of key elements of marketing functions and their interrelationship with
other functional units...................................................................................................................7
ACTIVITY B...................................................................................................................................7
Comparison of ways in which 7Ps are applied by different companies.....................................7
Evaluation of different tactics used by Zara SA to achieve business objectives......................10
ACTIVITY C.................................................................................................................................11
Covered in PPT.........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing includes all the activities that are done by a company for the promotion of its
products or services in the marketplace so as to attract potential customers and induce the
process of buying in them. It includes maintaining relations with the customers so that they can
be made loyal towards the company and can help in building the client base (Alqahtani and
Gupta, 2017). Advertising, selling and delivery of the products or services to the customers
forms part of marketing. Effective marketing can give a competitive advantage to the companies
and they can lead in their respective industries. This project is based on Zara SA which is a
Spanish apparel retailer based in Arteixo in Galicia. The company deals in high quality fashion
products and deals in clothing, accessories, shoes, swimwear, beauty products and perfumes. The
key roles and responsibilities of marketing function are explained along with their interrelation
with the other marketing functions. Marketing-mix is explained along with their application in
various companies. A marketing plan will also be made which will help in allocation of
resources and formulating a growth plan.
ACTIVITY A
Marketing functions and their roles and responsibilities
Marketing a process through which companies try to develop interest of customers in the
products and services that are offered by them. It helps in generating strategies for increasing
sales, developing business communication that will lead to business development. Strong
customer relationships can be formed by creating value for their customers and for the business
itself.

Marketing concept is the strategy used by companies to fulfil the needs of customers,
increase their sales, maximize profits and have a competitive advantage over other firms (Baker,
2016). There are five marketing concepts which are discussed below :
 Production Concept : This concept states that consumers prefer products that are widely
available and highly affordable for which Zara SA should increase its production and
distribution efficiency.
 Product Concept : It says that consumers favour products that are good in quality,
performance and have innovative features for which Zara SA should focus on timely
improving its products.
 Selling Concept : Customers are only attracted to buy the products if they are extensively
advertised or promoted. Zara SA can use this concept for increasing sales through heavy
promotion.
 Marketing Concept : This concept focuses on increasing sales by analysing the needs and
wants of customers and satisfying them by their products and services. Zara SA can
create value for customers by this concept.
 Social Marketing Concept : This concept focus on improving the well-being of customers
and society by delivering them value products and services. A sustainable marketing
strategy can be adopted by Zara SA for society welfare.
Roles and responsibilities of marketing department of an organisation helps in
achieving the marketing objectives (Choi and Kim, 2015). The marketing department identifies
the target customers and analyse their needs and wants so that products and services can be
offered that satisfy the customers. In Zara SA, following are the roles and responsibilities of
marketing department : Conducting market research : For identifying the target market and the needs and wants
of the customers. Market research also helps in identifying internal and external factors
that can effect Zara SA and its functions. It is done to gain a competitive advantage over
its rivalries. Developing product : This is done to provide customers with better products by
improving already existing products or by introducing new and innovative products
which increase value for customers (Festa and et. al., 2016). It helps Zara SA in new
product launch and determine prices.

 Advertising and promotional campaigning : It helps in promoting the products and
services of Zara SA by creating awareness among customers and converting prospects
into customers. Applying customer-centric approach : This is done so that demands of customers can be
evaluated and products that are needed by customers can be provided for achieving
customer satisfaction and making them loyal towards Zara SA.
 Making Zara SA competitive : This is done so as to analyse the preferences of customers,
target markets of competitors and the products offered by them. This helps Zara SA in
providing better products than its competitors.
Roles and responsibilities of marketing in relation to marketing environment
Marketing helps Zara SA in analysing the actual needs and wants of the customers that
needs to be catered so that value can be created for them and better customer relations can be
made. Apart from building customer relations, it helps Zara SA in surviving the competitive
environment by formulating strategies that can help it in expanding its market and growing in the
market. It also helps in positioning the products and interacting with customers by the way of
feedback collection (Girshick and et. al., 2015). For customers marketing helps in creating
awareness about products that are available in the market. It also helps in informing them about
discounts and offers that are available on different kinds of products so that a better comparison
can be made before selecting a suitable product or service. For competitors it helps in developing
strategies so as to remain competitive in the market by keeping a track of innovations that are
being introduced by their rivalries. For suppliers it helps in estimating the type of products that
are in demand and pricing them according to their availability in the market. For general public it
helps in uplifting the living standards of people by making available various types of products at
different prices. It also helps in generating employment for marketing personnel.
Interrelationship of marketing department with other functional units
Every organisation has many functional departments who integrate and interrelate with
each other so that the goals and objectives of Zara SA can be achieved on time. Coordination
among their functions is important to reach to a common result. Interrelationship between marketing and Operation/Production departments : Market
research helps in identification of actual demands of customers that needs to be satisfied.
Production department depends on marketing department so those items can be

manufactured which are in demand in accordance with the quality and design
specifications given by customers (Heimbach and et. al., 2017). The quantity in which
these are to be manufactured also depend on demand of customers which has to be met
by delivering them the products on time. Marketing department depends on production
department to run their marketing campaign and ensure the availability of products at
right time, at right place and for right people. Interrelationship between marketing and finance department : Finance department
helps in generating budget for marketing department to run their campaigns for
promotion of products in the market, for conducting market research and distributing the
products to make them available at all the stores of Zara SA. Marketing department on
the other hand helps finance department in generating revenues through increased sales
due to expansion in the market share and increasing the customer base.
 Interrelationship between marketing and sales department : Marketing department
helps sales department in achieving its sales targets through increased sales by attracting
more customers towards Zara SA products by advertising, promotional campaigns etc.
Increase in sales helps in increasing profits and generating revenue for the company
which helps in allocating a large amount of budget for marketing department to
successfully carrying out its marketing campaigns (Larson and Draper, 2015). Both the
departments help each other in achieving their individual and organisational objectives
of increasing sales and thus profitability increases.
Significance of interrelation between marketing and other functional units
Coordination and interrelationship between all the functional units of an organisation are
important for achieving its goals and objectives within time and stipulated budget. All the
departments individually and collectively contribute towards organisational profits which help in
its growth and development in the competitive environment. Marketing and financial
departments works together to manage the finances and cash flow in the company by attracting
customers and increasing sales (Mahatma and et. al., 2016). Marketing and sales department
work together to expand market share and increase sales by attracting more customers through
advertising campaigns. Marketing and production department help in manufacturing of products
that are in demand and making them available to the right people at right time and on right place
so that sales can be increased.

Critical evaluation of key elements of marketing functions and their interrelationship with other
functional units
Interrelationship between marketing functions and other functional units can have both
negative and positive impact in the organisation. Interrelationships can help in building harmony
among all the functional units of the company which can help in achieving common goals on
time as the tasks of all the departments can be completed on time. inter-department
communication increases which help in building a friendly working environment in the company
and better cooperation and coordination of work by managers in their departments. However, if
one department is unable to achieve its target, it causes all the departments that are interrelated to
non-completion in their respective targets. Interrelationship may also cause confusion in between
the objectives that are to be achieved by the departments.
ACTIVITY B
Comparison of ways in which 7Ps are applied by different companies
Marketing mix is the combination of sets of actions or tactics that are used by a company
to influence customers to buy their products or services. It consists of 7Ps that forms the vital
elements of market-mix and helps in making strategic managerial decisions for efficient
marketing of products and services (Pike, 2015). It helps in new product development and
increasing the product portfolio by guiding the management in taking appropriate decisions. The
organisations can strengthen their competitiveness and adaptability by appropriately applying the
market-mix to their products and services. A comparison of ways in which market-mix is applied
by Zara SA and other similar company are as follows :
Basis Definition Zara SA Marks and Spencer
Product These are the tangible
items that are produced to
satisfy the demands of
customers. These can be
made according to
customer specifications
(Purvis, 2015).
Zara SA deals in high
quality fashion clothing,
accessories, shoes,
swimwear, beauty
products, perfumes etc. It is
the world's largest apparel
retailer and manages up to
20 clothing collections a
Marks & Spencer Group
plc is an international
retailer and specialises in
selling high quality
clothing, home products
and food products. It is
headquartered in
Westminster, London UK.

year.
Place It is the location or area
where products are to be
made available so that the
customers can make
purchases from such
places.
The products of Zara SA
are made available through
its stores that are located at
various locations in the
city. It is a multinational
brand and has many stores
through which the products
can be purchased.
The products are available
through its stores that are
located at multiple
locations all across the
globe. Its products can also
be ordered through online
portals such as Amazon.
Price It is the perceived value
of the products or
services by customers
and the amount of money
they are ready to pay for
purchasing these products
(Pyo, 2015).
Zara mostly follows
premium pricing strategy
through which they aim at
targeting a specific group
of customers who can
afford the premium price.
The pricing is made
possible by optimizing
development and training
costs.
The company adopts a
competitive pricing policy
to increase is mass market
consumption and remain
competitive in the market.
The company keeps its
prices between medium to
high range.
Promotion It is the way of attracting
customers towards the
products and services
provided by the company
(Rowley, 2017).
The company relies heavily
on word of mouth
advertising. Its key
marketing strategy is based
on differentiation and
affordability.
The company promotes its
products through various
sources such as
newspapers, radio, ;print
media, digitally etc. The
brand also relies on
celebrity endorsements to
market its products.
People These are the employees
working in the company
who are responsible for
The employees are well
trained who are able to give
their customers better after
The employees are well
versed and experts in their
departments and are able to

making available the
products to the customers
and building customer
relations.
purchase services like
thanksgiving, updating the
customers about new offers
etc. which helps in building
strong relations with
customers.
provide better customer
services by assisting them
in stores and creating a
friendly environment for
them so that they enjoy
shopping.
Process It is the mechanism that
is designed to benefit
customers so that they
can have a good shopping
experience (Seringhaus,
2015).
The display of products for
the customers in the stores
with their prices mentioned
on the tags helps the
customers in evaluating the
product and making final
purchases.
The support teams and
assisting staff that are
present on the stores help
the customers in their
shopping.
Physical
evidence
These are the visual
aspects of the services or
products that are
provided to the customers
The Zara stores shows
physical evidence of the
company and the
transaction receipts that are
given after completing
purchases.
The carry bags, gifts and
transaction bills they give
to their customers provides
a physical evidence of
completion of purchases.
Evaluation of different tactics used by Zara SA to achieve business objectives
Tactics are the steps or actions which are short term and are used for achieving certain
goals of the company. Companies use various tactics so as to remain competitive in the market.
Zara SA uses various types of tactics that helps it in remaining the leading apparel retailer in the
market. Some of theses tactics are discussed below :
STP : Segmentation, Targeting and Positioning is an important marketing concept that is
used by Zara SA which helps it in segmenting the market, then selecting the target market and
finally implementing the positioning strategies (Solinger, 2018). It guides the company in
development and implementation of an appropriate marketing-mix.

 Market segmentation : The process through which the market is divided into smaller
groups with similar product needs and preferences so that out of a large market only that
segment is selected where there are potential buyers of the products and services.
 Targeting : It is the selection of a market segment where the marketing efforts of the
company are to be focused so as to influence the customers in making purchase
decisions. The target customers are pursued to buy the company's products by extensive
marketing campaigns and advertising in the selected segment.
 Positioning : It means creating a positive attitude among the customers towards the
company products by emphasising on the key features and benefits that they provide to
the customers in comparison to its competitors.
Zara SA can also use Ansoff's Matrix for determining the marketing strategy that used so
as to achieve its business objectives. Ansoff Matrix for Zara SA is discussed below :
 Marketing penetration strategy : This strategy is used when same products are offered in
same market. Zara encourages its current customers to make more purchases from its
brand. As it has a strong brand image it can use this strategy to further increase its market
and thus improving its profitability (Stead and Hastings, 2018).
 Market development strategy : This strategy is used when same products are offered in
new markets. This is done by Zara by identifying potential customers in new markets and
then positioning its timeless, unique and classic products in the new markets.
 Product development strategy : This strategy is used when new products are introduced in
the existing markets. Zara develops new features quickly as it has a fast development
process from concept to the point of final sale. This helps in providing customers with
affordable and unique products which can help in increasing the market share of the
company.
 Diversification strategy : This strategy is used when new products are to be introduced in
new markets. It provides growth opportunities to Zara as the industry of fashion is highly
attractive and the company has a good mix of business strengths (Marketing Plan, 2019).

ACTIVITY C
Covered in PPT
CONCLUSION
From the above report it can be concluded that marketing forms an essential element for
achieving organisational objectives. Through marketing functions of companies sales can be
increased by attracting a large number of customers towards their products and services. All the
functional departments of an organisation are interrelated and coordinates together to achieve the
organisational goals and objectives. The 7Ps are the marketing-mix that helps the companies in
formulating appropriate strategies and marketing plans to expand the market share and influence
a large base of customers. Competitive advantage can be gained through tactics such as
segmentation, targeting and positioning of products so that the organisation can grow and
develop in the highly competitive market.
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