Principles and Practices of Marketing: Selfridges Case Study Report

This report provides a comprehensive analysis of the marketing strategies employed by Selfridges, a prominent UK department store. It begins with an overview of the organization, highlighting its product offerings, market position, and financial performance. The main body of the report delves into various marketing concepts and tools used by Selfridges, including the promotional mix, Porter's generic strategies, and customer relationship management. The report examines how Selfridges utilizes digital marketing, personal selling, and sales promotion techniques to enhance customer engagement and drive sales. It also explores the application of marketing theories like the AIDA model, and pull and push marketing strategies. The analysis is supported by academic literature and includes an examination of Selfridges' approach to segmentation, targeting, and positioning. The report concludes with a summary of the key findings and insights into Selfridges' marketing practices.

PRINCIPLES AND PRACTICES OF
MARKETING

TABLE OF CONTENT
INTRODUCTION...................................................................................................1
MAIN BODY...........................................................................................................1
OVERVIEW OF ORGANIZATION.....................................................................1
TASK 1.....................................................................................................................3
TASK 2.....................................................................................................................9
Marketing theories.......................................................................................................................9
AIDA model................................................................................................................................9
Pull and Push marketing strategy..............................................................................................10
CONCLUSION......................................................................................................13
REFERENCES......................................................................................................14

INTRODUCTION
Principles and practices of marketing play a vital role in creating awareness about business
products and services. The principle of marketing of organization are based on 4 P’s that is
product, place, price and promotion whereas practices of marketing are based on promotion and
selling attribute of firm. The assessment will outline promotion tools used by Selfridges a
departmental store and company of UK. The innovation and marketing strategy of business are
consumer centric and therefore the firm has strong control over its online and offline shoppers.
The study will be supported by academic literature which will comprise detail analysis of
customer relationship management, porter generic strategy, promotion mix, digital promotional
tools, etc. Thus, the report will outline 3 marketing theories which are used Selfridges to
marketing and promotion.
MAIN BODY
OVERVIEW OF ORGANIZATION
Selfridges is a high end department store and company which is part of fashion retail
industry and has wide range of latest designer collection of all genders. The firm has professional
network across UK and is voted as best department store across country. Selfridges store sells a
wide selection of high end items, such as clothing, jewellery and technology. The company is not
limited to apparels but deals in variety of beauty and gift products like eyeshadow palettes,
exclusive range of makeup kits, toys and article for family.
However, in 2017 the net worth of Selfridges was approximately 331.2 million pounds.
Presently 300 employees are working with an organisation on shop floor and same number of
workforce is at its branded retail concessions. The firm has 300 stores where in all the focus of
management in on delivering one kind of experience to all its buyers. In addition, to boost sales
and increase consumer base the company offers its high products online across the globe.
The firm is highly focused on concept and visual merchandising like Primark denim department
is not set in discrete are and just walk away separates two studios. This is the best strategy which
encourages everyone to be part of Selfridges but the firm has drawn line between its services and
which are yet to be offered. Prices of denims are an offer in Primark Selfridges for impulse
purchases. This is the marketing strategy of company which confuses shoppers to buy either one
pair or two of different brand but at low price.
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Figure 1: Promotion Sales
(Source: Selfridges Discount Codes November 2018, 2018)
The annual profits of Selfridges were 152 million pound when its gross sales increased by
5 % that is 1.4 billion pound (Revenue of Selfridges Retail Limited worldwide from fiscal year
2011 to 2017* (in million GBP), 2017). The noticeable increase in sales and turnover of
company is because of increasing sales of high end products where the company initiates to
launch its designer item and exclusive range for limited period of time with the motive of
managing profits. Apart from this, the company focuses on increases staff for every store in
order to manage customer query like sales associate of retail store are responsible for handing
visitors. This is done by company to demonstrate value of shoppers to company. Apart from this,
the managements of Selfridges offer reward schemes and loyalty card discounts which aid in
protecting interest of purchased and motivates them to buy again.
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Figure 2: Selfridges discount voucher
(Source: Conference Venue Special Offers, 2018)
The major focus of Selfridges is on continuous marketing and promotion where the organisation
makes use of different promotional tool that is digital marketing, billboard, personal selling, sales
promotion, television, radio and customer relationship management. The shared values and
perspective of company promotes value for money concept. Further, the departmental store also
focuses on post sales services where shoppers are free to share their feedback or complaints in
case of any problems of issue with product (Challagalla, Murtha and Jaworski, 2014). Thus, it
can be said that the best part of Selfridges is ambience of store the company has segregated
section for different commodities and the segmentation is done with walk ways space which
helps customer in easily tracking and exploring all the products in one visit. It also present clear
view of different section and departments of stores that is beauty, gifts, designer and many more.
TASK 1
According to Mulhern, 2013, marketing plays crucial role of business as it helps the company in
creating awareness about its products and services. It is the best approach to reach consumer and
encourage them to buy certain commodity. The author discussed about most used marketing
strategy that is promotional mix where the firm is able to introduce its products with specific
price. This helps in gaining attaining of segments shoppers. Further, with the help of this strategy
management is able to derive best promotional tool which can be effective for offering particular
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product like, discount, schemes or just advertising. However, Burchell, Rettie and Patel, 2013,
has stated about 4 P’s of promotional mix that is sales promotion, advertising, personal selling
and public relations. It is combination of different methods of promotion which are used by
company to blend its ales. For example, Selfridges make use of personal selling where the focus
of store associates of retailer in on analysing unique clothing needs of buyers with the help of
which designers of store are able to make customized dresses which helps in attaining success
over personal selling promotional approach. On the other hand, departmental store focuses on
sells promotion in which the organisation offers specific discounts for limited period of time with
the motive of boosting sales.
Figure 3: Window display of Selfridges
(Source: Window Displays at Selfridges in London, 2011)
Marketing and promotional strategies
Baker, 2016, articulated that apart from promotional strategy it is important for the company
to incorporate basing enhancement strategies to gain consumer attention and to demonstrate them
their value for store. Like there are various fashion retail stores who have assistance staff who
helps shoppers while shopping like showing them clothes according to their buying preferences,
helping them for look of the apparel or pricing. Further, ambience of department store plays
vital role in attracting shoppers because it is the physical evidence which demonstrate company’s
efforts to make services valuable. Likewise, atmosphere, sales associate, music and windows at
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correct location are another marketing strategy which helps in gaining buyers attention and
promoting sales.
Figure 4: Porter’s Market Positioning Strategy
(Source: Porter's Generic Competitive Strategies (ways of competing), 2016)
According to Hendrix, 2014, Porter’s generic strategies is the model which is used by
business to attain competitive advantage and to attain cost effectiveness. The firms use this
model to attain cost leadership as it helps the organisation in differentiating products and its
prices according to consumer requirements. For example, Selfridges uses this to stimulate
demand for gaining market share by offering products at relatively low prices. On other hand,
there is customer relationship management where the focus of companies is on making use of
different strategies and technologies to interact with buyers. Direct communication with buyers
helps the company in managing their queries easily and in addition helps in managing products
innovation according to interaction with buyers. It is analysed the most companies make use of
this strategy because it helps the business in consumer retention and driving growth of sales. For
example, Selfridges focuses on CRM by connecting with shoppers via social media platforms.
This promotes easy communication and helps in understands need of international buyers.
Likewise, it is the most approachable way of a marketing and interacting with shoppers because
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it not limited to one country and helps the company in easily connecting with its online
purchasers.
According to Kitchen and Burgmann, 2015, segmenting, targeting and positioning is
another strategical approach which helps the company in understanding buyers needs and
dividing them accordingly. Like, in segmenting firm is able to divide shoppers according to their
demographic psychographic and behavioural characteristics. Further every segmented shopper is
targeted according their listed need and buying abilities. This helps the business in simplifying
needs of shoppers and market accordingly. This is most effective approach because it assists in
maintaining cost effectiveness of marketing strategies by posting shoppers according to
segmentation and targeting. For example, Selfridges segments customer according to their
behaviours and demographic characteristic and basically targets middle and upper middle class
people who own ability to buy designer, exclusive and customized products.
Bernhardt, Mays and Hall, 2012, has discussed about promotional techniques which are
organised and updated by firm but are in easy reach of buyers and lack regular concern of
organisation. Advertising is the promotional tool which helps the company in reaching maximum
customer at one time and assist in gaining attention without much efforts. For example, fashion
retailer develops an advertisement about their certain product with particular scheme like,
discount or promotional offers. However, it is the advertisement strategy where the firm is able
to create awareness and gain attention of potential shoppers.
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Figure 5: Public relation event
(Source: BANG! Selfridges Manchester Trafford Big Beauty Bang, 2015)
Promotional technique which are away from store
Likewise, Ramsaran-Fowdar and Fowdar, 2013, has discussed about billboard, and radio
where the firm launches promotional flyer or key message regarding product or services. This
helps in making people aware about new launches and discounts which is directly proportional to
increase in sales and consumer base. Further, the author discussed about digital promotion which
is advanced technique of modern era and is used by majority of firm. Search engine optimization
is a golden key for an organisation as it helps the business in improving traffic e on their social
media platforms, official websites and online retailers. In this it becomes easy for the business to
encourage shoppers across the globe to try and buy product of specific brand. However, when
promoting products digital, it is necessary for the organisation to focus on schemes, key message
and content which is used when promoting. In addition, digital promotion is successful when the
customers are easily able to communicate with company as it helps them in trusting brand and its
services.
Digital promotion
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Apparently, Bernhardt, Mays and Hall, 2012, articulated key components of digital
promotion where content is the king and therefore it should make sense during marketing.
Further, key words play a vital role in attracting buyers for which it is important for the company
to make use of simple language and specific words which attracts buyers. For example, when
making use of digital promotional mix focus of Selfridges, a fashion departmental store is on
content where the marketing team of organisation make use of original and relevant information
and incorporating it into adding unified form. In addition, key words focus is non avoiding
repetition and integrating use of words like, discounts, time limit, sale, scheme, etc.
On the other hand, Nimako and Ntim, 2013, outline the needs of relevant link on during
digital promotion because it makes easier for the buyers to visit web page of the company.
Making promotion user friendly is another promotional mix approach which helps the business
attaining success over sales and personal selling. There is numerous leading firm like,
Debenhams, Marks and spencer, etc. who have enables their site access to different engines. This
is another effective marketing strategy where company’s do not have to launch promotional
campaign to attract shoppers. The social media websites already launch add of new product and
schemes of firm shared on their web page. This is applicable when the particular firm is involved
in sponsoring or paid partnering.
In accordance with this, it is analysed that the most interesting concept followed by
Selfridges is connecting with poetical purchased on Facebook and Instagram with the help of
page promotion. In this the company shared one image of launch or certain product to encourage
consumer interaction on that specific post. It is done by company for managing firstly customer
relationship and getting review and feedback of different people across globe. Hence, it can be
said that this promotional strategy is good for enterprise because it aids in gaining review of
purchasers which assist in determining need and particular are which require improvement.
Newspaper and company’s Account
Apparently, as per the views of Ström, Vendel and Bredican, 2014, analysis of companies’
performance also lays an important role for which it is necessary for the business to keep a
regular track over newspaper, companies performance, rivalries magazine, etc. This helps the
management in developing understanding about market image of company and also helps in
evaluating need of improvement. Control over performance of companies and competitors is the
basic tool which helps the business in analysing promotional and marketing techniques use by
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similar firm of industry. Hence, it is important for the company to track performance with the
help of magazines, business articles, new paper to keep track over organismal performance
which can be hindered by external marketing forces.
TASK 2
Marketing theories
Implementing use of marketing theories plays a crucial role in managing progress and
relevancy of marketing and promotional practices of firm. It is effecti8ve approach used by firms
across the globe which helps in influencing consumer decision making process by creating
awareness by studying individual needs and wants. There are three marketing theories which are
being implemented by Selfridges to enhance its customer relation and to boost sales. Practices
and principle of marketing can be effective practices with the use of theories which enables
different approaches of connecting and communicating with customers.
AIDA model
This the marketing model used by fashion retailer to promote its products and increase
sales. The use of model is based on 4 stages which are discussed below:
Figure 6: AIDA model
(Source: AIDA Model, 2018)
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Attention: In this motive of company is to attract potential buyers where the company focuses
on different tactics such as use of images themes, water background, layouts and typography in
order to make advertisement eye catching (Hassan, Nadzim and Shiratuddin, 2015). In this
Selfridges focuses on involving celebrities and famous personalities to gain interest of shoppers.
Further, the best part of attention phase is use of music and jingles which helps the firm I keep
customer connected for long period.
Interests: This phase promotes interaction where consumer are allowed to involved in
promotional and marketing campaign of company by sharing their views over products or
company. Further, in this Selfridges aim at connecting with shoppers via gifts and voucher
coupon.
Desire: In this the main motive of company is on making product or launch desirable like
should attract visitors and views. For example, Selfridges make use of 3 D flyers at prime
location with the help of which the consumers feel attracted. Moreover, in this the company
offers unique schemes like discounts for first five visitors, etc.
Action: In this Selfridges quickly act on consumer query or complain which is the best
strategy to gain trust. For example, if the shopper has invested firm for limited offer then it is
important for the company to provide instant helps with discounted products to maintain
effectiveness of risk and cost.
The use of AIDA model is effective for retailer as it helps the company in environmental
marketing where the firm do not have to look forward to regular promotion to attract shoppers.
In this launching one effective campaign acts market booster and therefore it is termed as long
term marketing theory. Attention phase of model is termed as cognitive stage because in this
enterprise is able to communicate with customers. Further, interest and desire are part of
affective stage where management aim at connecting with people with the help of promotional
techniques (Pappas, 2016). Last, that is action I behavioural stage which indicates response of
company towards purchaser. Thus, it is important for the business to focus on effective and
responsible marketing in order to interact and connect with buyers.
Pull and Push marketing strategy
It is the marketing theory or strategies which promotes direct communication of company
and buyers. In accordance with this strategy it is important for the organization to directly upon
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