Marketing Principles Analysis for Marks and Spencer

This report provides a detailed analysis of marketing principles, using Marks and Spencer (M&S) as a case study. It begins by defining the marketing process, exploring elements such as situation analysis, marketing strategy, and the marketing mix. The report examines the benefits and costs associated with a market orientation, distinguishing between macro and micro environmental factors that influence marketing decisions. Segmentation criteria for products are proposed, followed by an analysis of targeting strategies and the impact of buyer behavior on marketing activities. The report also discusses product positioning and the development of products to sustain competitive advantage. The distribution, pricing, and promotion strategies are explored, with additional elements of the marketing mix considered. Furthermore, the report includes a plan for marketing two segments, highlighting differences in marketing approaches and comparing international marketing with domestic marketing. The report concludes with a review of the key concepts and findings related to marketing principles within the context of M&S.

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1.1 Various elements of the marketing process......................................................................3
1.2 benefit and cost associated with the marketing orientation..............................................4
2.1 Macro and Micro factors..................................................................................................5
2.2 Proposing segmentation criteria for product....................................................................5
2.3 Targeting strategy.............................................................................................................6
2.4 How buyer behaviour affects the marketing activities.....................................................6
2.5 Positioning of the product................................................................................................7
3.1 How product are develop to sustain competitive advantage............................................8
3.2 Distribution is arranged to provide customer convenience..............................................8
3.3 How prices are set to accomplish the objectives..............................................................9
3.4 Promotional activities integrated to accomplishing marketing objectives.......................9
3.5 Additional elements of marketing mix.............................................................................9
TASK 2 .........................................................................................................................................10
4.1 Plan marketing for two segment.....................................................................................10
4.2 Differences in marketing................................................................................................11
4.3 International marketing differ from domestic marketing...............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is a social process by which individuals and organisations obtain what they
need and want through creating and exchanging value with others. For customers, it is the
process by which companies create value for them and build a strong relationship in order to
capture value customers in return (Abdullah, 2006). Marketing involves activities of a company
associated with buying and selling of a product or service. It includes advertising, selling and
delivering products to the final customers. People who work in marketing department of
companies try to get the attention of target audience by using slogans, packaging design,
celebrities and general media exposure. For the present study the chosen organization is Marks
and Spencer (M&S) leading organization in the retail industry. From the following report,
marketing principal and its various aspects will be described that would support the company in
marketing their products and services in the ultimate market. Along with this, the report will also
provide insight knowledge regarding the international marketing the support them in entering
into the new marketplace.
TASK 1
1.1 Various elements of the marketing process
Marketing is defined as the total of activities involved in transfer of goods from the
producer or seller to consumer or buyer including, advertising, shipping, storing and selling. The
cited firm with the help of marketing discover unfulfilled needs and requirement of customers
through selling the required products in order to satisfy the needs of consumer. Marketing
process define the loopholes in the proper marketing and the process of marketing mainly
include different elements such as-
Situation analysis: The first component of Marketing Process is to analyse the market in
order to find opportunities that should be availed. These opportunities are related to the needs
and wants of the customers that are not properly satisfied by the competitors in the market
(Pavlou, Liang and Xue, 2006). The marketing manager of M&S must engage in analysing the
external and internal environment so that they may easily engage in the effective marketing
activities.
Marketing strategy: Another element of the marketing process include engaging in
framing or devising the marketing strategy for the retail company so that they may easily engage
in the marketing activities. The manager of retail firm also focuses on measuring the STP that is

engaging in segmentation, targeting and positioning of the range of products so that it may create
value in the targeted market. Another element in the marketing process include engaging in
devising the marketing strategy (Huang, Sarigöllü, 2014).
Marketing mix decision: Another element in the marketing process include engaging in
deciding the components of marketing mix for the M&S. It mainly focuses on
 Product development that define the specifying, designing the market and the producing
the first units of the product.
 Decide the price of the product
 Distribution contract
 Promotional purpose there must develop campaign development.
Implementation and control: The last element in the marketing process include implementing
the devised strategy. Implementation and control of marketing plans is a process which should
ensure the achievement of the strategic objectives adopted by the company
1.2 benefit and cost associated with the marketing orientation
Market orientation consider as reviewing the reaction to what customer want. That is all
about discover about the customer's needs and wants and the decision taken are based around the
information about customer 'need and wants, rather than what the business thinks that what is
rights for the costumer. The benefit associated with the marketing orientation include that it
create superior value for buyer continuously requires that a seller understand buyer's entire value
chain, not only as it is today but also as it evolves over time (Goi, 2009). There are different
different orientation in the market production orientation , product orientation, sale orientation
and market orientation each orientation is equally important for the market purpose. Market
orientation can be divided into five type: production , product, selling, marketing and the social
responsible. Mark and Spencer is belonging to the product type. This company need to focus on
the product in the market and take new product in the market as per the consumer's need. Mark
and Spencer need to focused on product high quality and such as charging higher price than
competitor like Tesco and Sainsbury (Nath, Nachiappan and Ramanathan, 2010). Thus, mark and
Spenser need to set the high standard in their product range from there competitors and identify
the need of the new product according to needs of the market. Along with this, there are also
some cost associated with the market orientation that is it may act as the loss for retail firm if
their engage in wrong assessment of the market.

2.1 Macro and Micro factors
There are two kinds of external marketing environments, that is, micro and macro. These
environmental factors are beyond the control of marketers but they still influence the decisions
made while creating strategic marketing strategy.
Micro environment means that environmental factor that closely influence the company
and affect the organisation relationship (Vollmer, Precourt, 2008). the micro environment mainly
include assessing the current employees relationship and that affect the supplier relationship and
the competitors or their consumers.
Macro environmental factors include social, economic, political and legal factors
existing in the external environment that impact the activities and strategies of the organization.
The organisation do not have any control over these external environmental factors , it can only
prepare for change taking place. Factors affecting organization in Macro environment are known
as PESTEL, that is: Political, Economical, Social, Technological, Environmental and Legal.
In Marks, and Spencer to analysis the internal environment manager has focuses on using
swot analysis. This is consider as very important part of business development. This model
analysis the strength, weaknesses, opportunities and threats of the company (Laczniak and
Murphy, 2006). And as per the micro environment that focus of the competitor companies with
similar offering goods and service. This company should develop a strategic advantage over their
competitor. Macro environment for the company like M&S this is very important factor to study
for marketers and help to divide the population into market segment and target market.
2.2 Proposing segmentation criteria for product
Market segmentation is referring to the aggregating of prospective buyers into groups or
segments that have common needs and respond similarly to a marketing action. In the market
segmentation, there are different segmentation criteria such as demographic, geographic,
psychographic and behavioural segmentation. Marks and Spencer has been emphasizing on
demographic segmentation criteria where chief consideration has been given towards income and
age factor of consumers (Hawkes, 2007). Since, Marks and Spencer is coming up with new
product in clothing range; therefore, it is essential for the entity to focus more on age and income
aspects because that has a direct impact on demand. Marks and Spencer is coming up with
rugged shirts and trousers; hence, central focus should be laid on age factor as youngsters
generally prefer to wear such kinds of clothes (Eiriz and Wilson, 2006). Along with this, Marks

and Spencer should also focus on specific segment so that products can be suitably sold to the
consumers. Therefore, it is clear that for youngsters and for 10-15 years old children, rugged
shirts and trousers will be introduced by Marks and Spencer as a new product. This particular
segment has been selected because customers of Marks and Spencer highly prefer to get
fashionable products. Hence, on the basis of demographic factor, segmentation can be done.
2.3 Targeting strategy
Targeting is a process of selecting proper customers according to their product or service.
Target strategy involves segmenting the market and choosing appropriate market as a
determining product that will be offered in each of the segment (Abdullah, 2006). In general,
customers are targeted to analyse that which particular division of customers can be considered
to be provided with products so that the company can make maximum possible profits. Market
targeting involves evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
There are a few strategies available for targeting the market like differentiated,
undifferentiated and concentrated strategies. Basically, Marks and Spencer can target market on
the basis of available products and services (Pavlou, Liang and Xue, 2006). In the present study,
Marks and Spencer can select undifferentiated targeting strategy which essentially focuses on
mass market philosophy. Strategy views the market as one big place with no other individual
segment. Hence, utilizing such strategy can assist Marks and Spencer to promote the brand
image among customers. Henceforth, as per the undifferentiated targeting strategy Marks and
Spencer can use one element of marketing mix for the entire market. Hence, price can be
selected as a major element of marketing mix for targeting the specific product (rugged shirts
and trousers).
2.4 How buyer behaviour affects the marketing activities
Buyer's behaviour is the most important aspect for every company. "Buying behaviour" is
made up of internal and external factors that explains the reason because of which consumers
buy and use certain products or services. For a market, customers are the king as whatever they
want companies produce these products and take out in the market (Kotler, 2008). Complex buying behaviour: Under this buying behaviour, consumer usually conducts a
lot of market research which helps them to get appropriate products. In this behaviour,
end users get opinion from other people prior purchasing any product. Thus, for the

present case as well, consumers of Marks and Spencer could seek for advice before
getting rugged shirts and trousers. Variety seeking behaviour: Apparently, in this buying behaviour, consumer seeks for
variety of options so that the best products can be grabbed. In this situation, competitors
of M&S like Zara and Only can change the decision making process of consumers.
 Dissonance and habitual buying behaviour: In this buying behaviour, consumers prefer
to purchase those products which they use on regular basis. Hence, in this buying
behaviour, end users of Marks and Spencer can show greater loyalty (Wang, 2007).
2.5 Positioning of the product
Positioning of the product in the right manner is necessary for achieving success. There
are various techniques and concepts of marketing. For achieving the target of company,
segmenting, targeting and positioning applied by companies to order to promote the new range
of product that is t-shits and trousers, management will make use of different set of strategies
that will be helpful to position the product in market. In this respect, below given are the
strategies that will be implemented by M&S:
Advertisement: In advertisement, there are different tools that can be implemented so as
to develop positive perception in the minds of customers for the product (Natter and et.al., 2008).
In this context, management will develop attractive advertisement and that will be displayed on
various tools. In addition to this, the rate of internet users are increasing drastically and so, social
media will be used that will help to spread the information regarding new product range.
Putting efforts on same direction: Position of the product is highly important as it is the
new range that is being delivered. In this respect, it is important for the organization to position
the products in same direction so that desired goals can be achieved (Nath, Nachiappan and
Ramanathan, 2010). Moreover, customers should be monitored so that the issues that they face
can be identified and solved.
3.1 How product are develop to sustain competitive advantage
Fashion industry is very challenging; it has to look for the needs and current trends. It is
very important to offer such products which can meet the recent trends. By this way, firm will be
able to satisfy its consumers to a great extent. Marks and Spencer offers such t-shirts and trousers
which can help firm to sustain in the market and gain competitive advantage.
Cost with quality

Marks and Spencer is the leading and well-known brand in fashion industry. It keeps its
products process low so that more people would take interest in its material. Apart from this,
cited firm maintains the quality in all its products (Laczniak and Murphy, 2006). By this way,
people become loyal towards the brand and give positive feedback to others. It helps Marks and
Spencer to sustain in the competitive environment.
Product differentiation
Marks and Spencer offers different range of products to consumers by which all types of
users get attracted towards the brand. As the variety of T-shirt and trousers offered by company
are attracting more people, sales is getting increased. Product differentiation supports the cited
firm to gain competitive advantage.
Trendy products
Marks and Spencer pays more focus on trends and modifies its products as per the recent
trends. By this way, people feel satisfied and like the products. It helps the entity to attract more
consumers towards brand (Khan and Dhar, 2006). Apart from this, trendy material makes people
feel positive towards company. It assists to gain competitive advantage in the market.
3.2 Distribution is arranged to provide customer convenience
Distribution of any products or services depend upon the nature.,There are different type
of strategies that are implemented and they are selective,and intensive distribution. The right
choice of these factors can give a company competitive advantage. Selection of distribution
channel relates to convenience of consumers (Rex, Baumann, 2007). Distribution channel can be
defined as the location were buyer get goods and service. As per the business point of view,
cited firm will make use of selective distribution. In this context, there are many physical outlets
in which distribution will be done. Moreover, online channel will also be used that will help in
delivering the products and to make products reach customers. There are many physical stores of
Mark & Spencer and they all will be used to sell the new product range.
3.3 How prices are set to accomplish the objectives
There are different types of pricing strategies that can be implemented. However, in this
area, cited firm will make use of market penetration method. This a type of method in which the
price of product will be kept as low. This is generally done in order to cover large area within
small period of time. It enables to develop a strong customer base. Price can be determined as
one of the important factors that affect the buying behaviour of customers. When the price is

low, then service users tend to purchase the product (O'Reilly and Madill, 2007). As per this
method, price of product will be raised slowly when more customers will get to know about the
product.
3.4 Promotional activities integrated to accomplishing marketing objectives
Promotion refers to the entire set of activities which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product in
preference over others. There are several typed of promotion like advertisement, giving discount
and other things relating to the product. Among all these strategies, M&S will make use of free
gifts and discount offers. In addition to this, television, radio, newspaper and internet will be
used in order to convey information to customers (Sadiq Sohail and Malikakkal, 2011). These
tools are helpful to develop curiosity in the minds of people and this enforces them to buy the
product. Social media like Facebook, Twitter, etc. helps to identify the perception of people
towards products. According to the issues that are faced by them, changes can be made.
3.5 Additional elements of marketing mix
Marketing mix has many elements which consists of 4P's and 7P's. Product, place, price,
promotion, process, people and physical evidence are the main elements of it. Additional
elements of marketing mix are mentioned as below:
People: Customers and employees are the key players of organization. Marks and
Spencer focuses on its workers and provide them flexible environment which motivates them by
giving rewards so that they will be loyal and stay in the firm for longer period (Hawkes, 2007).
For satisfying the consumers, Marks and Spencer offers attractive discounts and quality services
that make them loyal towards the brand.
Physical evidence: Marks and Spencer focuses on its physical outlets and open stores at
crowded places so that more consumers would become aware about the brand.
Process: Its process is simple and cited firm maintains the standards that help it in
accomplishing the set goal of business.
TASK 2
4.1 Plan marketing for two segment
Marketing mix Age Income

Products Young generation pay more
attention on trendy t-shirts. So,
Marks and Spencer offers
them modern rugged trousers
and T-shirts to attract them
(Grönroos, 2006).
To meet the needs of all range
of people of UK, Marks and
Spencer produces all range of
cloths. So, middle class people
and high class people both can
buy it easily. It maintains the
cost and quality in products so
that customers can easily get
attracted towards it.
Place Marks and Spencer stores are
available at visible places.
It focuses on opening physical
outlets.
Price Marks and Spencer uses cost
plus pricing method to set the
prices of products. It helps the
cited firm to gain competitive
advantage. Apart from this, it
offers attractive discounts so
that young people and female
can take interest in this.
Company has all priced
products and thus, people have
choices to buy any quality
product as per their budget and
income (Eiriz and Wilson,
2006).
Promotion To attract youngsters, Marks
and Spencer uses online
marketing strategies to
promote its brand. As younger
use online sites so it provides
benefit to the organization.
To gain attention of high to
low income people, it
organizes promotional
campaigns, advertise its
products via newspapers, etc.
4.2 Differences in marketing
Difference between B2B & B2C marketing:
B2B B2C
It is the corporate transaction carried out This is transaction that is carried out between a

between the business to business. business and consumer directly.
Goods and services are purchase for the other
business purpose.
Goods and the services are purchase for
personal use only.
B2B in this system transaction to be carried out
are complex one. First the product and
payment mode is selected and then through
proper logistic channel the delivery is made.
B2C In online concept product deliver directly
to consumer.
It implies complex business system It implies simple business system
4.3 International marketing differ from domestic marketing
Domestic marketing International marketing
Domestic marketing is also known as the home
marketing. It is the selling of a company’s
products within local financial market. In
domestic market, there is no language barrier.
International marketing refers to the exchange
of goods and service across countries (Kotler
and et.al., 2015). This is also known as global
marketing and because of online marketing,
this is easier for every business to develop
across the world.
As far as domestic market is concerned,
technology provides a few benefits only (Dann,
2010).
The use of technology is more in international
market; hence this could assist M&S to adopt
new techniques in product development.
The degree of interference is less in domestic
marketing.
The degree of interference is high in
international marketing because business
entities have to adhere a range of legal policies.
As far as scope of success is concerned,
domestic marketing provides minimum
opportunities of prosperity.
However, in the case of international
marketing, opportunities of success are higher
because products are introduced in different
competent markets.

CONCLUSION
In marketing there are different type of strategies involved that are helpful for the
organization to make sure that they deliver proper information to customers, the rate of internet
users are increasing drastically and so it is a type of opportunity that organizations get through
which they can make proper distribution and make the products reach out to service users. When
a product or services is to be introduced, it is important that organization conduct proper market
research so that they will be able to satisfy the needs and requirement of customers.

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