Evaluating Marketing Tools and Strategies for Marks and Spencer

This report provides a comprehensive analysis of marketing tools and strategies, focusing on the retail giant Marks and Spencer. It begins with an introduction to marketing tools and their significance, followed by an examination of PESTLE and SWOT analyses in market planning. The report then delves into the promotional mix, new product development stages, and product portfolio analysis, incorporating the product life cycle. Further, it evaluates marketing/distribution channels, the role of intermediaries, and the growth of direct marketing. The analysis continues with an assessment of promotional methods, the characteristics of price competition, and the effectiveness of various pricing strategies. The report concludes with a summary of the key findings and references.

Marketing Tools

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Evaluate the use of PESTLE and SWOT analysis in market planning.................................1
1.2 Discuss the importance of the promotional mix in production of promotional material.....2
2.1 Analyse the stages of new product development..................................................................2
2.2 Conduct a product portfolio analysis incorporating the product life cycle..........................3
TASK 2............................................................................................................................................3
3.1 Evaluate three types of marketing/distribution channels for consumer used by company...3
3.2 Analyse the role of two intermediaries use by organisation.................................................4
3.3 Discuss reasons for the growth of direct marketing..............................................................4
TASK 3............................................................................................................................................5
4.1 Evaluate three methods of promotion and the media used...................................................5
4.2 Discuss the key characteristics of price competition...........................................................5
4.3 Evaluate the effectiveness of three pricing strategies..........................................................6
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................1

INTRODUCTION
Marketing tools are instrument that are used by companies in order to promote and
develop their goods and services (Armstrong and et. al., 2015). It can be in form of direct
marketing, social media, advertisement and others. It is used for communicating information,
motive action and stimulate consumer interest of business. The given assignment is based on
Marks and Spencer which was founded in 1884 at London that deals in retail sector. The
individual is appointed as team leader in marketing department in order to understand impact of
marketing in business. It highlights use of PESTLE, SWOT analysis for market planning. It also
includes promotion mix, product development life cycle, distribution channels and use of
different media.
TASK 1
1.1 Evaluate the use of PESTLE and SWOT analysis in market planning
Marketing planning is procedure for organising and defining aim of marketing of
company and gathering tactics and strategies for achieving them. It consists the value proposition
of organisation and information regarding target market (Guerassimoff and Thomas, 2015).
While doing market planning, it is important for team leader to analyse PESTLE and SWOT for
business so that better decision can be made. The use of PESTLE and SWOT analysis in market
planning in context of Marks and Spencer are as follows:
Use of PESTLE analysis in Market Planning
PESTLE analysis is an instrument used for determining external marketing factors which
has effect on organisation. This is applied while making marketing planning for business where
company is targeting particular audience, product is manufactured, potential partnership and
opportunity of investment is enabled. It helps in knowing external events taking place outside
organisation. PESTLE analysis requires good understanding of methodologies which need to
maintain sustainable view of enterprise. It includes various factors such as political, economic,
social, technological, legal and environmental (Where and How to Apply PESTLE Analysis in a
Marketing Plan, 2019)
Use of SWOT analysis in Marketing Planning
SWOT analysis is model used for analysing strengths, weaknesses, opportunities, threats
for creating foundation of marketing strategy. It helps in knowing what business can and cannot

do and favourable and unfavourable condition related to goods and services of company. This is
highly useful for confirming and developing goals of organisation (Using SWOT Analysis to
Develop a Marketing Strategy, 2019)
1.2 Discuss the importance of the promotional mix in production of promotional material
Promotional mix
They are promotional activities chosen by market for achieving goals and objectives of
firm. It includes advertising, personal selling, sales promotion, public relations and others
(Hadjikhani and LaPlaca, 2013). These are significant in production of promotional materials.
Some of the importance of promotional mix in production of promotional materials are as
follows:
Advertising- This is paid promotion where ideas, goods and services are identified in
mass medium. It is important for promotional materials as awareness can be created easily with
use of advertising promotion mix. It includes radio, television, mobile app through which goods
and services are known to consumers.
Sales Promotion- It is non media and media for marketing communication used for
increasing demand of consumers, improve product availability. Such tool is important while
doing production of promotion material as it can easily do awareness in market. It includes
coupons, product samples, trade shows, exhibitions.
2.1 Analyse the stages of new product development
New Product Development
It is procedure in which goods or services is taken into market form conception. It contain
sets of stages of new products beginning with idea generation and ends with product's
introduction to market (Kinney and Ireland, 2015).
Stages of New Product Development
The stages or process of new product development are as follows:
Idea Generation- In this stage, idea should be generated from many sources such as
internal, SWOT, competition, customers and market research.
Idea Screening- After generation of ideas, it should be screened considering following
factors such as company's strength, weaknesses, needs of consumers, ongoing trends, ROI,
affordability.

Concept Testing- It is blueprint version of ideas where concept is brought to target
market. Various questions are asked to them and feedback is taken.
Business Analysis- The analysis includes cost requirement, pricing strategies,
competition, break-even points for new product development in market.
Product Development- When all strategies are finalised, concept is converted into
tangible product. The strategies and branding which are decided previously are tested and
applied.
Test Marketing- In this stage, research and feedback are taken and changed are made
accordingly. It is important as concept is validated and make firm ready to launch such products.
Commercialisation- Product is ready and marketing strategies are applied. All major and
minor decisions are made before final introduction.
Review of Market Performance- It is last stage where product is introduced in market
and review performance of marketing for new product.
2.2 Conduct a product portfolio analysis incorporating the product life cycle
Product portfolio analysis is set of goods and services offered by company. This provide
view regarding profit margin drivers, growth of business, market leadership, income distribution
and operational risk (Leeflang and et. al., 2014). It is important to incorporate product life cycle
while conducting product portfolio as it helps in identification of each and every step and make
plan accordingly. The business can know about introduction, growth, maturity and decline stage
for making better plan for product portfolio. Thus, through analysis of this can helps in achieving
goal and objectives of business.
TASK 2
3.1 Evaluate three types of marketing/distribution channels for consumer used by company
Marketing/Distribution Channels
It is the channels through help of which goods and services are travel from production
place to final users (Lees-Marshment, 2014). This has centre logistics and transportation
channels. There are different types of marketing/distribution channels for their consumer used by
Marks and Spencer which are as follows:

Wholesaler- They are person who buys at bulk and large quantity of goods. Consumer of
Marks and Spencer can directly buy from wholesaler if they are known to them. In most of cases,
wholesaler supply goods to retailer.
Retailer- The retailer are those who purchase products from wholesaler and sell them to
their final consumers. The price charge by them is high than wholesaler as they buy in bulk and
sell by breaking into parts.
Direct Marketing Channel- In this channel, there is no any intermediaries where
manufactures sell directly to consumer. For example, consumer can get product of M&S directly
from manufacturer.
3.2 Analyse the role of two intermediaries use by organisation
The role of intermediaries use by Marks and Spencer are as follows:
Warehousing and Transportation- Once wholesaler purchase goods then it need to be
placed from where consumer can purchase them (Lipsman and et. al., 2012). This is expensive
and complex process. The goods can be loaded through proper channel of transportation and
locate to place of wholesaler.
Grading and Packaging- The wholesaler buy bulk quantity of goods and break into
smaller part in order to sale it to retailer and consumers. This requires grading, sorting and
assembling products so that they can provide it safely to wholesaler and retailer.
3.3 Discuss reasons for the growth of direct marketing
As per study of Direct Marketing Association, direct marketing sales for consumers has
been increase to 8.5 percent per year and direct marketing sales for business to business
increased by 11 percent. There are several factors which leads to rapid growth of marketing. First
reason is the changing lifestyle where women are working outside from 42 to 58 percent and
who does not provide more time for shopping so they prefer online mode to buy goods. This
direct marketing leads to extends convenience from mail order shopping to customer receiving
products at their homes. Second reason for growth is through personal sales calls. The qualified
sales leads can be taken follow up by help of personal sales call. Thus, personal selling is making
more cost effective. With increase and growth in technology has played an important role in
direct marketing (Direct Marketing, 2019).

TASK 3
4.1 Evaluate three methods of promotion and the media used
Promotion is kind of communication channel among seller and buyer. It is one of 4P's of
marketing mix for organisation (Nikunen and et. al., 2017). There are several methods of
promotion and media used by Marks and Spencer are as follows:
Advertising- Advertising is paid method of communication used by M&S for promotion
of their goods and services. This can helps in creating awareness among consumer regarding new
products in market. The media used for advertising promotion are radio, television, social media,
newspaper, direct mail.
Direct Marketing- This is the method of promotion or form of advertising where
company communicate directly to consumer through various ways regarding goods and services.
The media use in direct marketing are messaging, email, online advert, catalogue distribution,
promotional letters.
Sales Promotion- In this method of promotion, both media and non media are used for
marketing communications for specified target market. It main purpose is to increase demand of
consumers, stimulate demand and improve availability of products. The media used for sales
promotion are newspaper, magazine, radio, television, social media.
4.2 Discuss the key characteristics of price competition
Price Competition is way in which goods and service compete in market place. In price
competition two products are judged by consumer on basis of price and purchase those which are
cheap (Tiago and Veríssimo, 2014). Such competition mainly occurs when organisation
competing by selling similar or identical product. The seller compete on basis of lowering prices
of each other to consumers. This competition happens in three different types of market such as
duopoly, monopolistic and oligopoly. The key characteristics of price competition are as follows:
According to size of market- The price of product vary from each other according to
market size and it can be small as well as large. If market is small or tiny, price is high and
similarly, if market is large selling similar product, price is low.
According to demand of consumer- The organisation set price as per need and demand
of consumer. When demand is high, price is also high and if demand is low, price is low. In this
way, price are set for goods and service.

4.3 Evaluate the effectiveness of three pricing strategies
Pricing strategies are those which are required for selling product and service (Yeoh,
Othman and Ahmad, 2013). M&S set high price for maximum profitability for their each unit
sold in market. The effectiveness of pricing strategies are as follows:
Premium Pricing- This effectiveness of premium pricing allows business to set high
prices than their competition. It is good for small business whose niche market is producing and
selling unique and different goods. It has advantage when organisation is first in placing product
in market with competitive advantage.
Penetration Pricing- This is most effective pricing strategies when product is demanded
and competition is high. This strategy helps in boosting business and earning maximum profits.
With keeping of low prices, firm can easily prevent competitors from entrance of market and
increase their market share.
Competition Pricing- This strategy can help business to attract more consumers with
optimization of prices using pricing data and competitor product. If such strategy is implemented
successfully then it can increase sales, boost revenue and better cooperation with suppliers.
CONCLUSION
From above report, it can be concluded that marketing tools helps in achievement of
goals and objectives. The team leader need to analyse market properly for their marketing
department so that operations can be run properly. The PESTLE and SWOT analysis has been
done by organisation so that they can know about their competitors, strength, weaknesses can be
known to make better decision making. Before launching any new product in market each and
every stage need to be analysed so that correction can be done and product can be introduced in
market. Retailer, direct marketing, wholesaler marketing channels are used by organisation so
that product can be reach to final consumers. In today's era, direct marketing helps a lot in
growth of firm and business as individual can get goods timely by saving time and cost.
Promotion tools helps in creating awareness in market and in minds of customers in minds of
consumer.

REFRENCES
Books and journal
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Interactive Advertising. 15(2). pp.135-150.
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management journal. 32(1). pp.1-12.
Lees-Marshment, J., 2014. Political marketing: Principles and applications. Routledge.
Lipsman and et. al., 2012. The power of “like”: How brands reach (and influence) fans through
social-media marketing. Journal of Advertising research. 52(1). pp.40-52.
Nikunen and et. al., 2017. Micro-Enterprise's Digital Marketing Tools for Building Customer
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Yeoh, E., Othman, K. and Ahmad, H., 2013. Understanding medical tourists: Word-of-mouth
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Online
Where and How to Apply PESTLE Analysis in a Marketing Plan. 2019. [Online]. Available
through: <https://pestleanalysis.com/pestle-analysis-in-a-marketing-plan/>.
Using SWOT Analysis to Develop a Marketing Strategy. 2019. [Online]. Available through:
<http://www.businessdictionary.com/article/632/using-swot-analysis-to-develop-a-
marketing-strategy/>.
Direct Marketing. 2019. [Online]. Available through:
<https://www.referenceforbusiness.com/small/Co-Di/Direct-Marketing.html>.