Marketing Principles Report

This marketing report provides a comprehensive analysis of Marks & Spencer's marketing strategies. It covers various elements of the marketing process, including situation analysis, marketing audit, and plan development. The report evaluates the benefits and costs of a marketing orientation, analyzes macro and micro factors influencing marketing decisions, and proposes segmentation criteria for different markets. It also examines buyer behavior, proposes a new positioning strategy, and details the extended marketing mix. A comparison of B2B and B2C marketing, as well as domestic and international marketing, is included. The report concludes with a discussion of how Marks & Spencer can sustain a competitive advantage through product development and distribution strategies. The website offers past papers and solved assignments to help students understand these concepts.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining elements of marketing process.......................................................................1
1.2 Evaluation of benefits and costs of a marketing orientation............................................2
2.1 Analyzing macro and micro factors influencing marketing decisions.............................3
2.2 Proposing segmentation criteria used for products in different markets..........................5
2.3 Choosing a target strategy for given product...................................................................7
2.4 Demonstrating buyer behavior affecting marketing activities.........................................7
2.5 Proposing new positioning strategy for the product.........................................................8
3.1Products development to sustain competitive advantage..................................................8
3.2 Distribution strategy for consumer convenience............................................................10
3.3 Selecting the pricing tactic as per the marketing condition............................................10
3.4 Attaining marketing objective through promotional activity.........................................11
3.5 Extended marketing mix.................................................................................................11
TASK 2..........................................................................................................................................11
4.1 Recommending marketing mix for two different segment in consumer market............11
4.2 Comparison between B2B and B2C...............................................................................12
4.3 Difference between domestic and international marketing............................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing helps the businesses in enhancing the sales within the market by promoting
products and services in order to create wide level of recognition for it. Globalization has created
a definite impact on the growth prospects of enterprises by expanding the reach of business and
attracting new consumers for maximizing the revenue of the company (Breton and Martín,
2011). Present report creates an in-depth analysis of various marketing principles of Marks and
Spencer in order to analyze its competitive position and implement various tools and techniques
for enhancing organizational growth. The study will create a detailed industry analysis and
develop marketing measures and campaigns to enhance the popularity of products of M&S in the
market globally.
TASK 1
1.1 Elements of marketing process
According to Dibb and Carrigan (2013) marketing is a social process which creates
market demand and attain the same by developing or exchanging the products of value with
others. The concept of marketing is to generate market sales by creating value for products
within the economy. Marks and Spencer has developed a well-managed market position within
the market by creating valuable and quality products and services to its consumers (Chaharbaghi
and Lynch, 2010). The company has developed a high street market position which has helped it
in establishing its global brand image.
Various elements of marketing process for Marks and Spencer are as follows: Situation analysis: This is one of the most crucial factor for analyzing the effectiveness f
the company and developing effective impact on the overall growth and development.
Marks and Spencer examine the present situation for the economy and then evaluate the
internal and external business environment in order to evaluate the gap between where
the company presently is and where it wants to be. Marketing audit: This involves the systematic, critical and impartial reviews of overall
marketing operations of the company. This element of marketing process analyses the
overall impact of the company on demand generation within the economy. Marketing
audit seeks effective policies and procedures for the company to determine effctive
solution to the set problem.
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 Developing Plan: After the market audit the company focuses on developing an effective
plan to analyze the marketing needs and implement effective measures for the same
(Dziri, 2013). M&S develops the plan to overcome the challenges faced by the company
within the market and create effective impact of the same on the overall growth of the
organization. Marketing strategy: This is a conceptual and crucial part of marketing process. The
company analyses the trends and demand within the market and develop marketing
strategies which has the capacity to attract maximum consumers for the company
(Element of marketing process, 2015.). Implementation and control: The most crucial element of marketing strategy is effective
implementation and control of the process. The proper evaluation of the process helps in
analyzing the factors which may restrict the growth of company thus company keeps a
proper check on the overall implementation of the process. Explaining the various elements of the marketing
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1.2 Benefits and costs of a marketing orientation
Market orientation is the culture where companies has a core focus on meeting consumer
needs by developing products and services as per the demands and customizing them to attaining
high level of consumer satisfaction. This process is generates high demand for the companies
however the cost is enhanced at the same time. This concept helps in creating an effective impact
on developing organization for enhancing its market value and generating effective sale.
The marketing orientation is an effective concept high has helped the companies in
developing competitive image within the market. Marks and Spencer has adopted this measures
in order to gain high consumer loyalty and competitive edge within the market (Garoufallou and
et.al., 2013). The process and research measures of the company helps in meeting consumer
needs and demand efficiently. Moreover this measures has helped the company in developing
consumer retention as well. Constant improvement of products and services has helped the
company in enhancing product range and quality as well. This measures helped in winning
consumer trust thus creating competitive edge within the market.
Product orientation is highly focused measures which demands high investment by the
company in terms of time and cost. Strong marketing research and powerful market intelligence
to respond accurately to the needs demands high investments for Marks and Spencer. This is an
effective measure for global growth and development however this concept restricts product
differentiation as major time of the company is spent in developing interaction and
communication with consumers (Kalafatis, 2002). Moreover, retail segment have to face the risk
of immediate change in trends and demands due to intense market concept. Thus, this is yet
another factor which causes effective cost to the company
2.1 Macro and micro factors influencing marketing decisions
Micro and macro factor analysis of the company is one of the crucial factor which helps
in developing an effective impact on the growth and development of the organization. The micro
and macro factor analysis of the company can be carried out as follows:
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The macro analysis of the Marks and Spencer is as follows: Political factors: These factors deal with government policies and regulation which helps
in developing the business opportunities or enhancing market competition within the
economy. M&S has low impact of political factors on day to day business activities
however marketing measures demand demands proper analysis of the same as this helps
the company in developing effective brand image. Economic factors: The economic factor deals with market population, GDP of the
company, population rate, inflation etc. These factors are keenly observed by M&S in
order to create analyzed the market efficiently before developing market measures
(Tamilia, 2007). Social factors: It helps in analyzing the trends and demands within the market. M&S
evaluate the same in order to analyze the changing needs and preferences of employees
for developing organizational growth.
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Ill
ustration 1: Macro analysis
(Source: Gibb, Simkin and Wilson, 2008)

 Technological factors: IT helps in enhancing quality and winning consumer choices.
M&S has adopted advanced technology to reach maximum consumers and implement
effective measures of growth within the market. Environmental factors: The impact of organizational operations on environment safety is
keenly observed by the consumers. M&S has developed environmental friendly strategies
to promote products and win consumer loyalty (Winston, 2012).
 Legal factors: M&S operates within the legal and regulatory framework which helps the
company in creating an effective brand image within the market.
Micro analysis of the company helps in analyzing the internal factors which helps in developing
an effective brand image by developing competitive edge through strong internal operations.
Micro analysis of M&S has been carried out henceforth
STRENGTH
 M&S has developed a strong and high
street brand image
 The company has developed an
influential and positive organizational
culture
 High consumer loyalty
WEAKNESSES
 Falling sales
 Limited market expansion
 Limited promotional measures
OPPORTUNITIES
 Market development measures
 product expansion
 high Promotional activities
THREATS
 Fierce market competition
 Falling market demand
2.2 Segmentation criteria used for products in different markets
Market segmentation is one of the crucial task of enhancing sales within the market. It is
the process of dividing vast market into definite small segments in order to create efficient
impact on the growth and development process of the company. Marks and Spencer is a global
business unit which has developed high market demand in multiple locations. The segmentation
strategy adopted by the company is:
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Marks and Spencer has adopted the following measures in order to attain high market
sales within global economy. The measures adopted by M&S are: Geographical: M&S has adopted this measures in order to target the diverse location of
the business and consumers from different parts of the world. The company has adopted
the localized strategy of branding which helps in developing target market as per the
culture and demand of the region. Demographic: this strategy of segmentation divide the market on the basis of age,
gender, occupation, income etc. this has helped the company in efficiently analyzing the
needs and demands of consumers thus creating high growth prospects (Dibb, Simkin and
Wilson, 2008).
 Psychographic: M&S position its products to meet the psychographic needs and
demands of the consumers. The high quality and premium product prices help in
targeting high income social group. This has also helped the consumer in developing a
positive attitude for the products and services offered by the company.
2.3 Target strategy for given product
Targeting is an effective measures which helps the company in seeking the potential
consumers within the market and focus on them to develop marketing strategies and enhancing
communication measures to develop market sales. The company is currently focusing on
developing new product within the market to enhance the product portfolio and developing high
market demand for the same. Marks and Spencer has developed the product concept of healthy
salads to enhance the sales for food segment of the company. The product will focus on
segmenting the market on the above mentioned measures. The targeting strategy for the given
product is discussed henceforth.
In order to promote the current product in the global market the company will adopt
undifferentiated targeting strategy (Agle, 2008). This strategy will focus on the mass market as
the product concept and demand is effective for the overall market. The company will develop
aggregate promotional measures in order to analyze the impact of product on target market. The
strategy will focus on generating high market sales by mass targeting. The product concept of
healthy food will generate high market demand and the brand image of the company will help in
developing trust and loyalty within the consumers. Moreover, this strategy will focus on offering
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the same product to entire market initially to promote product concept and generate effective
market demand.
2.4 Buyer behavior affecting marketing activities
Buyer behavior plays a significant role in determining the impact of product promotions
and generating high sales within the market. The concept of buyer behavior deals with analyzing
the impact of factors which influences customer behavior towards set products and services.
Major factors influencing buyer behavior are: Psychological: The perception, personality and social influence has high impact on
buying behavior of an individual. M&S will focus of developing a positive psychological
influence on the population in order to create a positive impact of the product on
personality and attitude of the buyer which will help in enhancing sales for the product
(Aljukhadar and Senecal, 2011). M&S analyses these factors to create an effective impact
on consumer needs within the market. Social: Influence from the family, friends and social groups helps in developing the buyer
behavior for a product and service. M&S will thus focus on developing the promotional
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Illustration 2: Buyers behavior

measures to develop positive influence for the product thus developing high market
potential for the product. This measures helps the company in enhancing consumer
perspective for the products and services within the market to develop high measures fro
sales.
 Personal: Demographic factors such as age, gender, occupation, health etc. have a vast
impression on buying decisions of people. The healthy salad section of the company will
create advertisement to influence the social factors of buyers which will help in favoring
the sales of the company. These are the factors which the company uses in order to
analyze and develop the individual buyer need which creates an low yet effective impact
on the sale of the company.
2.5 New positioning strategy for the product
Product positioning is a process of developing the impression of brand image and name
in the minds of buyers to enhance brand loyalty and demand for the product. This helps in
enhancing brand image by increasing product recognition (Cohen, 2005). M&S will implement
the positioning strategy in order to generate high sales within the market to target overall market.
The product promotion will clearly define the usability and benefits of the product in order to
attract maximum audience. The factors which will help in the same are discussed henceforth. Clarity: The positioning strategy of the company will be clear and well defined which
will help in minimizing the risk of confusion and distracting within the market for the
product. It will focus on defining health benefits in delicious food options. Consistency: M&S will be consistent with its positioning strategy in order to attain wide
demand in due course of time. Credibility: M&S has developed a premium brand image within the market. It will use it
ensuring the quality of products for generating market demand for the new product.
 Competitiveness: unique product identification through attractive packaging, logo and
tag-line will help in developing a permanent image which will enhance the
competitiveness of the company to generate high market sales.
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3.1 Development to sustain competitive advantage
Illustration 3: Ansoff's Matrix
This is an effective growth strategy for the company in order to develop high and effective
measures to enhance the business operations. For the given product ie healthy food
category the company has adopted product development strategy. This measure has
helped the company in enhancing the growth measures within the market by enhancing
product range and consumer choices.
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Product of the company has high and effective potential to develop high market sale to
enhance competitive edge within the market. This helps the company in developing wide and
effective market share. Marks and Spence will focus on creating an effective impact n he growth
and development of product concept by efficiently defining various levels of products to enhance
benefits and usability of the product within the market (Cravens and Piercy, 2008).
Healthy salad segment of the company will focus on attaining all the levels of the product
by enhancing core benefit by delivering quality products in affordable and competitive price.
Product packaging, presentation, variety and promotion will help in attaining the next level of
product development. Finally, the services and credibility of the company will help in meeting
the outermost layer of product development which will help the company in sales maximization
and competitiveness of the product by creating efficient market demand. This will help the
company in attaining an edge within the market thus sustaining growth and profitability.
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Illustration 4: Product development
(Source: Adner and Levinthal, 2004)

3.2 Strategy for consumer convenience
The distribution strategies that the company will adopt in order to gain high market sales
and enhance market competition are: Intensive distribution: This strategy focuses on developing high market sales by
enhancing the availability of the product efficiently within the market. The company will
develop intensive distribution by enhancing supply chain to maximize the product sales.
This will enhance the consumers in preferring the product highly in the competitive
market (Wilson, 2010). Selective distribution: This distribution strategy will focus on developing product
availability by focusing on the regions generating high market demand. The exclusive
stores of the company will help in developing sales by displaying the products and
generating market sales. This efficiently helps in promoting the products and services by
creating the positive perception in the minds of the buyers.
 Exclusive distribution: This distribution strategy will help the healthy salad product of
Marks and Spencer in creating exclusive promotion by developing stalls and market
promotion in malls and food fairs. This strategy will help the company in attracting
consumers towards products and turning non consumers into consumers.
3.3 Pricing tactic as per the marketing condition
The condition prevailing in market plays very effective role in terms of making the
decision about appropriate pricing tactic. In this regard, it can also be said that the economic
environment of country has greater importance as it help firm in making the selection of suitable
pricing approach. For example, the country where Marks and Spencer is launching its new
product such as flavored salad is facing the situation like recession. It is the condition in which it
became difficult for the buyers with regard to afford expensive product (Wood, 2008).
The cost of production plays a significant role in determining the price of the product. If
the company fix price lower than the cost of production it will bear huge loss for the company
which cannot be recovered by high sales even. So, in the given circumstances Marks and
Spencer can use price penetration tactic where in low prices are changes for the respective
product. This will enable firm with regard to attract many buyers towards its products and
services. However, in some other situation where economic condition of nation is stable and
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