Marketing Principles Report: Analysis of Next Plc Strategies

This report provides a detailed analysis of marketing principles and their practical application within Next Plc, a UK-based multinational retail company. The report begins with an introduction to marketing principles, including the marketing mix (product, price, place, and promotion), and examines the various elements of the marketing process, such as identifying opportunities, selecting target markets, developing marketing strategies, and implementing the marketing mix. The report then explores the advantages and costs of a marketing orientation for Next Plc, emphasizing customer centricity and focused production. Furthermore, it delves into the micro and macro factors that influence marketing decisions, including customers, distributors, suppliers, competitors, political, economic, social, and technological factors. The report also proposes market segmentation criteria, targeting strategies, and analyzes the impact of buyer behavior on Next Plc's marketing activities. Finally, it addresses developing products to sustain competitive advantages, distribution systems, pricing strategies, promotional policies, and additional elements of the marketing mix used by Next Plc, providing a comprehensive overview of the company's marketing practices.

MARKETING
PRINCIPLES
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Various elements of marketing process.................................................................................4
1.2 Advantages and cost of marketing orientation to Next Plc. ..................................................5
2.1 Macro and micro factors that impact the marketing decisions..............................................6
2.2 Propose segmentation criteria................................................................................................8
2.3 Targeting strategy for a selected product...............................................................................9
2.4 Impact of buyer behaviour on the marketing activities of Next Plc....................................10
2.5 Positioning strategy used by Next Plc.................................................................................11
3.1Developing products to sustain competitive advantages......................................................11
3.2 Distribution system used by Next Plc..................................................................................12
3.3 Setting prices for offered product........................................................................................12
3.4 Promotional policy for Next Plc..........................................................................................12
3.5 Additional elements of marketing mix................................................................................13
Conclusion ....................................................................................................................................13
REFERENCES..............................................................................................................................14
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Index of Tables
Table 1: Segmentation criteria.........................................................................................................9
Table 2: Targeting strategies.........................................................................................................10
3

INTRODUCTION
Marketing is the combination of four key elements, product, price, place and promotion
(Dibb and et.al., 2012). Marketing is also regarded as sum total of various activities involved in
transferring products and services from manufacturer to final customers. The main objective of
marketing is to boost sales by communicating the value of offerings to wide range of audience
using different promotional techniques. In this report, implication of marketing principles within
Next Plc will be explained. Next is a UK based multinational which offers retail products,
apparels, footwear etc. In this report, impact of macro and micro elements on the functioning of
selected organization will be detailed out.
TASK 1
1.1 Various elements of marketing process
The marketing procedure of Next Plc involves determining range of marketing
opportunities that are available in the market and thus designing effective plan to avail those
possibilities (Bowie and Buttle, 2013). In addition to this, it also involves choice of feasible
market option, preparing marketing mix and thereafter, management and implementation of all
these mercantilism efforts. It is a continuous process that helps in developing strong and long
lasting relationship with customers by identifying their unsatisfied needs and fulfilling them in
the best manner. Therefore, various elements of marketing process are explained as follows:
 Identification of marketing opportunities: This step helps in identifying marketing
possibilities in the retail sector. According to the market opportunities Next Plc
determines those markets where wide range of products can be offered by the company
(Bolotaeva and Cata, 2010). Thereafter, intense market survey is done to identify needs
and preferences of customers. Therefore, company designs its products as per the
specifications of customers which further provide competitive advantage to Next Plc.
 Selection of target market: By considering the market opportunities the customers are
targeted by marketing department of the company. For instance, target customers involve
Ladies who do household shopping, than Next Plc can offer attractive retail and food
products with fascinating offers (De Mooij, 2013).
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 Marketing Strategy: The marketing strategy is developed to reach target customer in an
effective manner. Thereafter, promotional methods are selected to pull the consumers
towards the offerings.
 Marketing mix decision: A blend of four key elements, product, price, place and
promotion is prepared to attain the overall marketing targets of organization (Kelleher,
2011).
 Implementation and control: The marketing strategy and plan is implemented within
organization in the planned manner. Thereafter, the manager ensures that there is no
deviation in actual plan and implemented plan.
1.2 Advantages and cost of marketing orientation to Next Plc.
Marketing orientation is a business tool used by the company to design and develop
various offerings as per needs and requirements of target consumers. The main benefit of
marketing orientation is that it ensures satisfaction among consumers and helps in retaining loyal
customers and attracting the new one (Lamb, Hair and McDaniel, 2011). However, there are
various cost and benefits associated with marketing orientation which are explained as follows:
Advantages:
Customer centric: Marketing orientation is a customer centric approach that helps in
identifying needs of customers. Therefore, company can develop products as per the
specifications of consumers. By emphasizing on needs of customers, strong relationship can be
developed between organization and customers. This help in enhancing brand loyalty and
repetitive purchase from consumers.
More focused production: By considering the requirements of consumers, Next Plc will design
products matching needs of consumers (Sherlekar, Prasad and Victor, 2010). Therefore, the
production process of organization will be focused on modifying the production system as per
the changing needs, demands etc.
Cost:
Intense market research: To ascertain proper market information regarding demand of
products, needs of wide range of consumers etc., company is required to do intense market
research. For this aspect, company is required to hire marketing or sales personnel, invest in
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technological tools that assist is collecting data and information etc. All these factors make
marketing orientation a costly approach (Vitale, Giglierano and Pfoertsch, 2010).
Hence, it can be concluded that there are significant amount of cost and benefits
associated with marketing orientation that must be evaluated by marketing department of Next
Plc before starting marketing orientation. Therefore, the cost must not exceed the benefit availed
from marketing orientation program else it will have adverse impact on the overall operational
cost.
2.1 Macro and micro factors that impact the marketing decisions
There are various internal and external factors that impact the ability of Next Plc to
perform various business functions (Chaffey, Smith and Smith, 2012). The description of which
is as follows:
Micro factors: They can be further explained through stakeholder’s analysis which is effective
approach to analyse impact and interest of key stakeholders of the organization.
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Illustration 1: Micro and Macro analysis
(Source: De Mooij, 2013)

 Customers: The customers are the key stakeholders that must be kept satisfied by Next
Plc. For this aspect, various needs of customers like, ethical products, fair prices,
innovative offerings and value for money paid etc. should be considered by the company.
 Distributors: They help in transferring various products from organization to final
customers. Therefore, they must be managed closely as they assist in determining target
customers and thereby boosting the sales (Christopher, Payne and Ballantyne, 2013).
 Suppliers: The suppliers are kept informed by the company about various production
needs and requirements. Suppliers provide goods that serve as input for producing final
output for the organization. Competitors: To maintain an edge over major rivals of Next Plc, the competitors and
their different policies are monitored closely (Thrassou and et.al., 2012).
Macro factors: With the help of PEST analysis the impact of external factors can be identified.
 Political and legal factors: To function smoothly it is important for Next Plc to consider
various policies like, competition, equality, discrimination etc. framed by UK
government and EU. Thereafter, company is also required to pay timely tax and duties to
avoid legal actions.
 Economic: It regards to various economic policies like, fiscal, monetary etc that impact
operations of Next Plc in domestic as well as international market. It also involves GDP,
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Illustration 2: stakeholder analysis
(Source: Vitale, Giglierano and Pfoertsch, 2010)

GNP and disposable income of residents (Mattson and Basu, 2010). For instance,
increase in disposable income of UK can provide more opportunity for the company to
increase its sales and improve its revenue.
 Social: This refers to change in interests, needs of consumers that have direct impact on
the sales of company. Next Plc monitors the prevailing trends to develop products and
services as per the needs of customers.
 Technological: Company makes constant improvement in its technology to develop
innovative and unique products and services (Wood and Jobber, 2013). This further assist
the organization in staying competitive in market.
2.2 Propose segmentation criteria
Market segmentation is a procedure employed by Next Plc to divide the entire market in
respective segments to reach target customers and fulfil their requirements and priorities. This
further helps Next Plc in encouraging the sale and increasing customer base.
Table 1: Segmentation criteria
SUITABILITY
It assists the company to ascertain whether the
target segment is suitable for offering products
or not.
MEASURABILITY
With this aspect, marketing manager of
company determines the size of market.
Thereafter, prospective sales is in selected
segments is ascertained.
ACCESSIBILITY The marketing manager of organization ensures
that selected segment is accessible through
communication and distribution methods.
Company use advertising in TV, newspaper,
hoardings etc to attract customers (Czinkota
and Ronkainen, I., 2012).
With this aspect, an impelling strategy is
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ACTIONABILITY designed by manager to reach target customers
effectively.
Considering the aforementioned segmentation criteria, two segments can be selected by
the company. For instance, organization is intending to launch new range of fashion clothing for
its customers (Cooke and Dayton, 2015). Therefore, the segmentation criteria used by
organization to reach the potential consumer is as follows:
 Demographic factors: This aspect helps the company in dividing the market on the basis
of elements like, age, gender, income, household type etc. Next Plc can offer fashion
clothing to girls and boys for the age group 16-26. In this respect, company can use
online shopping sites, social media promotion as it is widely used platform by target
segments.
 Psychographic factors: The management of organization can divide the market on the
basis of psychology, trends, lifestyle, brand loyalty etc of customer that play an important
role in making purchase decisions. Therefore, branded and trendy apparels can be offered
to customers in this segment (Fuchs and Diamantopoulos, 2010).
2.3 Targeting strategy for a selected product
The target market refers to those customers selected by organization to which business
wishes to offer products. Therefore, customers are grouped so that Next Plc can easily direct its
marketing efforts and various offerings towards them (Goyat, 2011). The various strategies that
can be used in this respect are as follows:
Table 2: Targeting strategies
UNDIFFERENTIATED
With this aspect, entire market is targeted by
organization using similar promotional
methods.
DIFFERENTIATED
This aspect assists organization in using
different promotional tools for contrasting
segments.
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CONCENTRATED OR NICHE
It help the organization in emphasizing on
peculiar segment with few consumers but
having greater marketing opportunities (Talke
and Hultink, 2010).
Further, Next Plc can use differentiated marketing strategy to reach the diversified range
of customers. In this respect, to reach the customers of age 16-26, company can use mobile
applications, e-commerce sites as they are maximum used by individual of this age group.
Thereafter, company can use promotion on social networking sites, online portals, advertisement
in TV etc. Further, to reach the customers of psychographic segment, company can use celebrity
endorsements, advertisement in fashion magazines etc (Anana and Nique, 2010). The customer
of this segment prefer fashionable and branded products therefore company will highlight these
factors using marketing through fashion models, celebrities etc.
2.4 Impact of buyer behaviour on the marketing activities of Next Plc
. The buyer behaviour directly affects the marketing strategies of the organization.
Thereafter, the marketing team of company moulds the marketing activities as per the behaviour
of consumers (Goldsmith, 2012). For this aspect, marketing manager can use demographic and
psychographic segmentation to get more understanding on buyer behaviour. The demographic
factors involve individuals with different income level who makes purchase decision after
considering the price of product. With this aspect, the high income consumers prefer high quality
clothes; branded and high priced. Therefore, marketing manager of Next Plc can link the brand
with status symbol in its advertisements and other marketing activities. This will further impact
the target customers to purchase high end fashion and branded apparels offered by the company
(Fripp. 2012). Thereafter, to gain the attention of middle class customers who make purchase
decision only when the product fall in their budget therefore, company can use promotional
offers like discount, sales etc. Thereafter, company can spread awareness about affordable
apparels offered by it through advertisement in television, newspaper, point of sale, brochures
etc.
Further, to reach the consumers belonging to psychographic segment, organization can
consider the prevailing fashion trends, lifestyle of consumers etc. In this aspect, the prevailing
trends should be identified by the marketing manager to avail market opportunities (Khan, 2004).
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Thereafter, products can be designed as per latest trends to stimulate the trendy customers of this
segment. In addition to this, company can do promotion through sponsoring fashion shows,
promotion through celebrity endorsements etc.
2.5 Positioning strategy used by Next Plc.
Company can design an attractive positioning strategy to build a unique position in the
market in comparison with its competitors. This will help in attracting diversified range of
customers and persuading them to the purchase various products and services offered by
organization (Dibb and et.al., 2012). The positioning strategy also assists company in
communicating the advantages of using the products of Next Plc to target customers. Thereafter,
different customers can be targeted by company using various positioning strategy. The
explanation of which is as follows:
 Price positioning strategy: Company can use price as a tool to attract various customers.
The company can offer branded fashion apparels using high price. This will help in
developing higher perceived value among brand conscious customers (Bowie and Buttle,
2013). Thereafter, the customers consenting to pay extra for the offerings can be targeted
by the organization. Further, to attract price sensitive customers company can use
affordable pricing policies. Therefore, company can use sales, discounts etc to offer non
branded yet good quality products to consumers.
 Benefit positioning strategy: Next Plc can promote the benefit of products offered by
company to its customers. Therefore, company can communicate the product attributes to
prospective consumers. For instance, the firm is offering tailor made fashion products to
consumers which is not provided by any of its competitors (Bolotaeva and Cata, 2010).
3.1Developing products to sustain competitive advantages
. To sustain the competitive advantage, it is important for company to develop products
as per latest trends, customer needs etc. Further, Next Plc can make best use of core
competencies available with it like, creative personnel, upgraded technology etc. Thereafter,
company can use innovative ideas to develop new products etc (De Mooij, 2013). Therefore,
organization can design tailor made fashion apparels according to the directions provided by the
customers. Therefore, customer can suggest style of sewing, fabric, colour combination and other
attributes which they require in fashion product. Since, tailor made products are not offered by
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competitors of company therefore, competitive benefit can be availed by the organization. With
this aspect, Next Plc can ensure customer centric approach and enhance satisfaction level of
consumers.
3.2 Distribution system used by Next Plc
Distribution system plays an important role in business as it helps in reaching the
potential customers effectively. The customers also favour that distribution network through
which product can be availed easily with minimal efforts (Lamb, Hair and McDaniel, 2011).
Therefore, company can use e-commerce website and online mediums to distribute branded and
non branded products offered by the organization. Therefore, customers can avail products
within their comfort zones. Further, to target customers of psychographic segment, company can
develop own brand stores. This will facilitate in spreading brand awareness among consumers.
Thereafter, customers can easily detail out their requirements in tailor made apparels.
3.3 Setting prices for offered product
To ensure success of product in market, it is important for the organization to set right
price for the right product (Sherlekar, Prasad and Victor, 2010). Further, Next Plc can use
differential pricing strategy to fulfil the demand of different segment. Therefore, to attract the
consumers of various income levels present in demographic segment company can use both high
and low pricing policies. The high income customers can be offered fashionable and branded
products while for attracting the consumers belonging to low income segment discounts, sales
etc, can be used (Vitale, Giglierano and Pfoertsch, 2010). Thereafter, for psychographic segment,
price skimming strategy can be selected by the organization. Therefore, company can ask for
extra and high prices for offering tailor made products. Hence, with the aid of differential pricing
policy assorted range of consumers can be attracted by the company.
3.4 Promotional policy for Next Plc.
The promotional policy helps company in communicating the worth, attributes and
benefits of products and services offered by organization to target consumers. Further, different
promotional technique can be selected by marketing manager. Therefore, to attract customers of
psychographic segment, company can use advertisement in fashion TV channels, magazines,
celebrity endorsements and fashion shows etc (Chaffey, Smith and Smith, 2012). This will also
assist in brand building and enhancing the demand of high end fashion products. Further, to
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attract consumers of demographic segment promotion can be done through, hoardings, television
advertisement, magazines, social sites etc.
3.5 Additional elements of marketing mix
 Physical evidence: It regards to physical appearance of the store that attracts customer to
enter the dedicated stores of company and make purchase. In this respect, Next Plc keeps
modifying the layout, appearance to attract more and more consumers.
 Process: It refers to procedures adopted by the company while presenting the products to
final customers. Next Plc ensures that its services are fast to ensure convenience to
consumers. This factor is considered while providing services through online dispense
(Christopher, Payne and Ballantyne, 2013).
 People: This regards to employees and sales personnel that are responsible for
encouraging the sales of company. Next Plc provides healthy work environment, training
and development and fair wages to its employees. This helps in retaining the competent
staff within the company.
CONCLUSION
From the above report, it can be concluded that marketing principle plays important role
in the success of the organization. With the help of macro and micro analysis impact of various
factors on the functioning of Next Plc can be studied. Thereafter, segmentation and targeting
criteria help the organization in reaching potential customers effectively.
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