Marketing Principles and Practice Report

This report provides a detailed analysis of marketing principles and practices, using Marks & Spencer as a case study. It covers various aspects of marketing, including the definition and role of marketing, factors influencing marketing decisions, elements of the marketing mix, market segmentation methods, and marketing research techniques. The report also includes a marketing plan for Marks & Spencer, focusing on the launch of new traditional garments in the Indian market. The analysis incorporates both internal and external factors, utilizing frameworks like SWOT and BCG matrix to assess the company's position and potential strategies. The report concludes by emphasizing the importance of understanding consumer needs and adapting marketing strategies to achieve business objectives.

Marketing Principles
and Practice
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 ................................................................................................................................................3
1.2 ................................................................................................................................................4
1.3 ................................................................................................................................................4
1.4 ................................................................................................................................................4
1.5 ................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1 ................................................................................................................................................6
2.2.................................................................................................................................................6
2.3.................................................................................................................................................7
2.4 ................................................................................................................................................7
2.5 ................................................................................................................................................8
TASK 3............................................................................................................................................8
3.1 ................................................................................................................................................8
3.2.................................................................................................................................................9
3.3...............................................................................................................................................10
3.4...............................................................................................................................................10
3.5...............................................................................................................................................10
Task 4.............................................................................................................................................11
4.1...............................................................................................................................................11
4.2...............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Marketing principles is the process of developing and maintaining effective relationship
among organization and customers for the purpose of creating goodwill of the business. It
focuses upon developing product as per the needs of customers and meeting their expectations in
an effectual manner (Guerra and Giannoni, 2013). The present report is based on major British
retailer Marks & Spencer which offers range of product and services to end users. It is
specialized in clothing, luxury food products and home products. Further, role of marketing in
business is assessed by focusing upon factors influencing marketing and different elements
associated with the same. In addition to this, various elements of marketing mix and methods of
segmenting the market are explained. Apart from this, marketing plan is developed by taking into
account strategic aim and objectives as well as selecting correct target market.
TASK 1
1.1
Marketing is the process of creating, exploring and delivering value to the customers by
rendering right kind of product. However, product is delivered by understating the needs and
desires of buyers so as to increase their satisfaction level. Marketing is defined by its
contribution, role and importance of the business organization. It facilitates to deliver good
quality of services to large number of buyers and accordingly the corporation can increase
overall rate of return (Turnbull and Valla, 2013). In addition to this, marketing consists of
selection of target market, market segmentation and consumer behavior. Therefore, marketing is
the set of institutions, activity and process for creating, delivering and communicating
information related to products and services to the buyers. On the other hand, marketing also
involves marketing research under which specific information related to preferences and liking
of buyers can be gathered (Hidayat, Putong and Utomo, 2015). In such manner, Marks &
Spencer applies concept of marketing in its business strategies for attracting more buyers and
retaining them for longer time span.
1.2
Marketing plays an important role in the organization as it serves as mediator between the
company and buyers. This is the only marketing process or strategies in which the products and
3

services reach to consumers as per their desires and preferences. Here, business needs to focus
upon getting information about the feedbacks of customers with regard to specific product. On
the other hand, marketing research will be done for accessing competitors’ strategies so that
accordingly, Marks & Spencer can fulfill direct business objectives such as increasing sales
turnover and rate of return (Chikweche and Fletcher, 2012). Moreover, competitive edge of
business is created by using appropriate strategies such as bringing innovation in the product as
well as services. Moreover, buyers’ views can be taken on particular product and services so that
accordingly necessary changes can be made. In addition to this, marketing is helpful to
accomplish different objectives related to increasing sales turnover and building competitive
edge in the marketplace (Shin, Garikapati and Pendyala, 2015). Therefore, customer base can be
increased only with the help of marketing strategies.
1.3
There are different factors affecting marketing such as financial resources, physical and
human. Basically, two types of factors affect marketing decisions of business which are internal
and external. Here, internal factors include research and development, internal policies and
practices as well as finance and accounting. For example, if budget is low then marketing
activities can be controlled (Luo, Roach and Jiratchot, 2015). On the other hand, research and
development is also effective through which business come to know about preferences of buyers
and other potential changes taking place in the market.. Apart from this, external factors such as
technological innovation and policies as well as strategies set by government are also important
which has direct impact on the marketing activities of Marks & Spencer. Furthermore,
technological innovation also impact marketing activities because company is required to cope
up with the same (Kim and et al., 2014). For instance, currently social media is in trend and the
same should be used for promoting the products and services.
1.4
Marketing is important in attracting large number of buyers and creating competitive
edge in the marketplace. All corporations have different roles and purposes and accordingly they
follow marketing strategies. The health care sector which is established by government for well
being of general community also use appropriate marketing strategy for raising awareness
regarding several health issues (Lei and Moon, 2013). Furthermore, without marketing
4

campaign, users will not have idea about services which are offered free of charge. Apart from
this, other social nonprofit organization also implements different marketing strategies to raise
finance. On the other hand, Marks & Spencer usually follow different marketing strategies to
increase customer base and deliver them good quality of service in the marketplace. These
strategies contribute towards retention of buyers and get valuable feedback from them.
1.5
There are different elements associated in the marketing process which are considered by
Marks & Spencer. These are explained as follows- Situational analysis- This is the first and foremost step of marketing under which
situational analysis of business is done by focusing upon strength and weaknesses of
corporation. It will be helpful for the organization to understand actual situation of Marks
and Spencer so as to select appropriate strategy to improve business performance (Guerra
and Giannoni, 2013). The situational analysis can be carried out by using different
models such as SWOT, PESTLE and SOSTAC. Identification of target markets- After analyzing the current situation of the market,
business tends to focus on identifying the target market. Here, Marks & Spencer finds the
market in accordance with the situational analysis. For Retail Company, target will be
kids, women and men segment for offering good quality of clothes (Sako, 2012). Setting marketing objectives-This is another step of marketing in which Marks &
Spencer sets marketing objectives related to increase in sales turnover and higher rate of
return. Furthermore, business has aim to increase satisfaction level of buyers by offering
them the right product. Focusing upon marketing mix-It consists of different elements such as product, price,
place and promotion which are decided by the company. This would be effective for
organization to meet its long as well as short term objectives.
 Control & revision-This is the last step in which business emphasizes on controlling
different business activities so that lacking areas can be focused by management of
Marks & Spencer (Verain and et al., 2012).
5

TASK 2
2.1
There are different elements of marketing mix which are explained as follows- Product-This is the most important element of marketing mix and according to case
study clothes is the product of Marks & Spencer. The product is made as per the
preferences of buyers so that the customers get attracted to it (Turnbull and Valla, 2013). Price-Price is another most important element of marketing mix which is decided in
accordance with quality and variety as well as demand of the product. Marks & Spencer
adds good margin on product so that the cost can be recovered. Place-Place is third important aspect of marketing mix in which Marks & Spencer
ensures to use internet to offer product to their users. However, other distribution
channels like physical stores are set out in malls etc so as to increase sales turnover
(Hidayat, Putong and Utomo, 2015).
 Promotion-Promotion is also considered as the significant element of marketing under
which the product is promoted by using upgraded technology. For this purpose, social
media and internet are used for attracting large mass of people.
2.2
There are different methods for segmenting the market which can be used by Marks &
Spencer in the market. These are explained as follows- Demographic-This is the effective method to segment the market under which different
aspects are considered such as fashion, age and social class as well as culture. For
example, Marks & Spencer offer product as per the age and prevailing fashion or trend. Geographic-It is another strategy to segment the market where the management focuses
upon locations such as urban areas or rural (Luo, Roach and Jiratchot, 2015). Initially,
analysis of the location is done and then accordingly product is delivered to the respective
party. Behavioral- Behavioral aspect is considered while segmenting the market which is
followed by evaluating the collected information. Here, Marks & Spencer takes into
account income level, class of families and their expectations.
6

 Benefits of segmentation-Under this, Marks & Spencer divides the entire market on the
basis of advantages, perceived value and benefits of the customers. At the same time,
other factors such as customer service, special features and performance are taken into
account (Carlson and Manktelow, 2016).
2.3
Market segment is significant for the company to reach buyers through which they can be
provided good quality of products and services. By using effective methods of segmentation it
will be effective for Marks & Spencer to cater need of different types of buyers and in the same
manner their expectation will be met. Generally, selection of appropriate market makes it
possible to determine the market opportunities and grab the same by implementing the suitable
strategies. Furthermore, available limited resources can be effectively utilized because every
segment has different requirement (Kim and et al., 2014). Similarly, segmentation facilitates to
ensure better communication between customers and company because they find it easy to
resolve all the issues. It can be critically evaluated that, without segmentation it becomes typical
to measure the performance of the organization. Thus, segmenting the entire market proves to be
effective for creating competitive edge of the business in the marketplace and delivering good
quality of services to large number of buyers (Turnbull and Valla, 2013).
2.4
There are different marketing research methods like primary, secondary as well as
survey. Along with that, different aspects such as observation, sampling method and interviews
are also included. It is helpful for the business unit to take appropriate decisions related to the
particular market. For example, primary data are collected with the help of survey or
questionnaire for identifying the preferences of customers. It facilitates the business to contact
different parties and adopt appropriate strategies for building goodwill of business (Sako, 2012).
On the other hand, observation method can be used for assessing the behavior of personnel and
their perception towards product purchased from Marks & Spencer. On the other hand, focus
groups can be used to predict the market so that company can produce products and services
accordingly. Apart from this, interview methods are used to conduct study on the basis of views
and suggestions taken from buyers. It aids to implement appropriate strategy so as to meet
expectations of buyers and provide them good quality of products and services.
7

2.5
Technological innovation refers to emergence of new technology which tends to speed up
overall business activities. Marks & Spencer uses different types of technology for promoting
and delivering products and services to the end users. Here, social media, Facebook, Linked in
and Twitter are used to reach at large mass of personnel. This is because nowadays majority of
people like to use these types of media for interaction so the company can also create its distinct
image by approaching buyers (Shin, Garikapati and Pendyala, 2015). At the same time, Marks &
Spencer also uses mobile marketing which tends to increase its sales turnover. For example,
company approach to Myntra for selling its product under which buyers can get the application
downloaded and products offered by Marks & Spencer can be accessed. Thus, technological
innovation is not only helpful to increase customer base but expansion of business can also be
ensured by the same. Apart from this, viral marketing is also in trend through which the
corporation focuses upon building good relationship with buyers by offering them product
information in an effectual manner.
TASK 3
3.1
Market segment refers to selecting the particular market for product and services. It aids
to divide the overall market effectively for generating good rate of return. The selected product
of Marks & Spencer is winter wear and segmentation for the same is done as follows- Demographic- Winter wear will be offered for the age group of 5-35 years by taking into
account fashion or current trends.
 Geographic-The selected products will be offered in urban and rural areas both for
meeting the expectation of respective buyers (Pike and Page, 2014).
The above mentioned market segmentation are selected for catering requirement of
personnel and offering them the right product. Here, product will be offered in several colors in
accordance with the fashion. However, kids, teenagers and adults are covered in the demographic
segment. The reason behind selecting the rural and urban areas is promoting the product via
latest technology like social media (Kitunen, Rundle-Thiele and Dietrich, 2016). Therefore,
selected market segments are helpful for reaching at the target customers and increasing their
attention towards offering of the business.
8

3.2
To find out the company’s current position in the market, proper and systematic analysis
is necessary for the evaluation. People in the market are directly influenced by the positioning of
products which has been carried out by a firm. Marks and Spencer needs to evaluate the market
trends for gaining attention of the target audience so as to easily attract the consumers towards
the product (Shin, Garikapati and Pendyala, 2015). It can be analyzed that at present, Marks and
Spencer has positioned itself as a premium brand of clothing. Here, wide range of products and
services are offered to the customers. For example, the brand is offering products such as
menswear, beauty, kids’ food, gifts etc. at premium prices (Kim and et al., 2014).
According to the BCG matrix of Marker and Spencer, the brand is performing quite well
in its clothing sector but in food sector its market share is relatively low. In nightwear
department, firm’s growth rate is high but in children wear market growth is very low (Sako,
2012).
3.3
Company should have a strategy of distribution which can assist for the maximization of
sales and revenues. Marks and Spencer have expanded their distribution chain for growth of
business. It can be analyzed that at present the selected business enterprise is using both online
and offline channels for carrying out distribution of its products and services. Marks and Spencer
have opened its retail stores in many areas and it is also offering products with the help of online
website (Luo, Roach and Jiratchot, 2015).
Here, proper management of distribution channel is handled in a network chain and HR
had appointed a representative who delivers the products from producers to the consumers. For
speedy delivery, specific location is allotted to every employee. This tool is helpful for
increasing the reach to target market and also accomplishing the sales target by satisfying the
consumer (Pike and Page, 2014).
3.4
Marks and Spencer is presently using high price strategy in which it is offering all its
services and products at the higher prices. It can be evaluated that the pricing strategy is effective
as it helps to create psychological effect among customers. Other than this, it has also opted for a
9

competitive pricing strategy in some of its competitive markets. It can be analyzed that to
sustain in highly competitive marketplace, it is required by Marks and Spencer to carry out some
modifications in its existing pricing strategy. For example, it can go for low pricing tactic to
penetrate more deeply in the market. Along with this, it needs to focus upon lowering down its
overall cost of operations so that products can be sold at the low prices. This will help the brand
to attract more and more customers and sustain in highly competitive marketplace.
3.5
Promotion can be termed as one of the most crucial elements that are required to make
product and services successful in the market. Further, promotional strategies help in developing
a strong image in public and that can also assist for attracting customer towards the company
services. Marks and Spencer collects the information regarding the clients’ need and demand of
its customers for carrying out effective promotion program (Hidayat, Putong and Utomo, 2015).
For encouraging the clients to spread positive word of mouth, it is essential for the manager to
adopt techniques such as distribution of sample products, discount offer and monetary rewards.
It can be analyzed that Marks and Spencer is using both online and offline channels for
promoting its products. Advertisements are carried out on social media and internet to attract
more and more customers. On the other hand, it is also promoting products through
advertisement campaigns and events.
After sale services is also considered to be an important factor for reaching current
consumer base as well gaining new ones. With the help of e-mails and telephones, interaction
with customers can be carried out to become aware about customer opinion regarding the
services. All these strategies are adopted by the firm for enhancing the promotional activities
(Kim and et al., 2014).
TASK 4
4.1
Marks and Spencer is planning to offer design for new garments to increase its sales and
profits. In this plan, the company is trying to add traditional clothes for building their brand
image in the market. For implementation of plan, first goals and objective are decided in a proper
manner(Guerra and Giannoni, 2013). Here, the main objective behind launching new product is
10

to increase market share, sales and profits of Marks and Spencer. By entering into the new
market, organization will be able to acquire new customers.
Marketing manager also evaluates the micro and macro factor which are influencing in
achieving goals such as political, economic and technical factors. Line manager of the firm is
responsible for monitoring all the performance for implementing the plan (Kitunen, Rundle-
Thiele and Dietrich, 2016).
4.2
Marks and Spencer is planning to launch new traditional outfits in their brand. For this
purpose, the company will be looking forward and implementing an aggressive marketing
strategy (Chikweche and Fletcher, 2012). The brand will be entering into Indian market to attain
its expansion objectives. Furthermore, people which belong to elite or higher income group will
be mainly targeted. The political conditions of India are stable and this will help in establishment
of Marks and Spencer (Pike and Page, 2014). Here, income level and standard of living is also
enhancing and this will be beneficial for the brand. Growing economy will support in overall
development of Marks and Spencer in the Indian market. Other than this, high rate of
technological advancements will support in smooth flow of operations and activities in the new
market. The product will be developed on the basis of intense market research which will be
carried out by the brand to understand customers demand in Indian market. On the other hand,
positioning will be carried out on the basis of products’ price and quality (Idugboe, 2016). High
pricing strategy will be used and products will be distributed with the help of retail stores. Here,
the key barrier in implementation of plan is going to be the changing need and demand of the
customers in India market. The marketing budget for Marks and Spencer will be £ 25000.
CONCLUSION
The present report explains the contribution of marketing activities in implementation of
goals and objectives. In this project, different methods are used for evaluating the technological
facts and its impacts in the market place. Moreover, it is also considers that the purpose of
business is not only to earn high profitability but also to gain satisfaction among consumers and
employees. Micro and macro environment can be evaluated for creating an effective plan that
can assist for achieving the target market.
11

REFERENCES
Journals and books
Chikweche, T. and Fletcher, R., 2012. Revisiting the marketing mix at the bottom of pyramid
(BOP): from theoretical considerations to practical realities. Journal of Consumer
Marketing. 29(7). pp.507-520.
Guerra, J. M. H. and Giannoni, S., 2013. Market-segment specialization and long-term growth in
a tourism-based economy. Anales de ASEPUMA. (21). pp.14-18.
Hidayat, C., Putong, I. and Utomo, I. S., 2015. Corporate Marketing Strategy Model (Case Study
in Indonesian Insurance Company). Advanced Science Letters. 21(4). pp.913-917.
Kim, K. P. and et al., 2014. The effects of co-brand marketing mix strategies on customer
satisfaction, trust and loyalty for medium and small traders and manufacturers. E+ M
Ekonomie a Management. (1). p.140.
Kitunen, A., Rundle-Thiele, S. and Dietrich, T., 2016. Generating consumer insights into
physical activity patterns for three different segments. Journal of Strategic Marketing.
pp.1-15.
Lei, N. and Moon, S. K., 2013. A decision support system for market segment driven product
design. In DS 75-9: Proceedings of the 19th International Conference on Engineering
Design (ICED13), Design for Harmonies, Vol. 9: Design Methods and Tools, Seoul,
Korea. 19-22.08. 2013.
Luo, A., Roach, S. and Jiratchot, C., 2015. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention.
Pike, S. and Page, S. J., 2014. Destination Marketing Organizations and destination marketing: A
narrative analysis of the literature. Tourism Management. 41. pp.202-227.
Sako, M., 2012. Business models for strategy and innovation. Communications of the ACM.
55(7). pp.22-24.
Shin, J., Garikapati, V.M. and Pendyala, R.M., 2015. Consumer preferences and willingness to
pay for advanced vehicle technology options and fuel types. Transportation Research
Part C: Emerging Technologies. 60. pp.511-524.
Turnbull, P. W. and Valla, J. P., 2013. Strategies for international industrial marketing.
Routledge.
12