Marketing Essentials: Roles, Mix, and Plan for Zara Company

This report delves into the marketing essentials of Zara, a leading apparel retailer. It begins by defining the key roles and responsibilities of the marketing function, including information management, distribution channel management, product management, pricing, promotion, selling, and financing. The report then explores the interrelation of marketing activities within the wider organizational context, highlighting the connections between marketing and production, finance, human resources, and sales departments. A significant portion of the report is dedicated to the application of the marketing mix (7Ps), comparing Zara's strategies with those of its competitor, H&M. Finally, the report culminates in the formulation of a marketing plan for Zara, outlining strategies to achieve organizational objectives. The analysis covers various aspects of marketing, providing a comprehensive understanding of Zara's approach.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Define key roles and responsibility of marketing function...................................................1
P2: Define roles and responsibility of marketing in relation to wider organisation context.......3
TASK 2............................................................................................................................................4
P3: Application of marketing mix by making comparison among competitor...........................4
TASK 3............................................................................................................................................8
P4 Formulation of marketing plan for an organisation ..............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing involve identification of customer need, creation, development as well as
production of goods and services. It simply deliver valuable product to the consumer by selecting
potentiate candidate for the product. Further, marketing is itself a very broad term which is not
only confined to buying or selling. Thus, it involve other activities such as promotion of product,
selection of suitable distribution channel as well as marketing mix strategy, carrying out research
and development activities and so on. For better understanding ZARA company has been
selected whose headquarter is in Spain and is one of the largest retailers of apparel. It basically
has approximately ten thousand stores that deals in clothing for various category of people such
as men, women and kids. The present reports makes the discussion about roles and
responsibility of marketing function, interrelation of marketing activities to wider organisation
context. Moreover, application of marketing mix to achieve organization objective and
preparation of effective marketing plan to achieve desired output is covered in respective
assignment (Abedi and Abedini, 2017).
TASK 1
P1: Define key roles and responsibility of marketing function
Marketing function: Marketing function helps in creation of potential product by
identifying need of consumers (Aghazadeh, 2015). Along with that it involve engagement of
promotional activities by differentiating the product from the alternative offered by competitors.
Thus, the seven main functions performed by ZARA company are defined below:
Marketing information management: To identity the preferences or requirement of
customer business require lot of information as this information helps to maker effective
decision. In context to Zara makes the use of computer based program that is Management
Information System which helps to store huge information of existing customer of company.
This data not only help company to make business decision but also help in making business
decision.
Distribution channel management: Distribution channel helps in making the product
available to customer by transporting it from one place to the another place. Herein, ZARA
company which operate in more than forty country uses strong distribution network to transport
1

the good from manufacture to consumer. Therefore, it uses both online as well as physical store
to make their product available to customer.
Product management: Product refer to the item on which the company deals. Thus the
whole lifestyle such as forecasting, planning, manufacturing as well as distribution is
systematically managed by organization. ZARA has successfully managed all the operation of
product like it manufactures the new design and make that product available in its store at a very
short span of time. Moreover, it constantly adopt the new innovations for its product.
Pricing: It refer to the amount charged by company for its offering. The price must be
justified as per the product then only customer will find worth buying the product. As ZARA is a
global brand which is well known for its innovative designs. Additionally, company constantly
launches new design or pattern based on the preferences of the people who recite in various
geographical area. Thus, because of their premium quality product company charges high prices
which is being accepted by the customer.
Promotion: It helps in making the customer aware about the availability of the product
due to which companies uses varies medium of promotion such as tradition media or digital
media (Astuti, Silalahi and Wijaya, 2015). In context to selected company has gained huge
customer base because of word of mouth advertisement. In addition to it company does not
makes much use of advertisement they just offer premium quality product and has expanded its
range due to which it has gained huge market share.
Selling: Selling refer to the role of sales person who pitch or assist the customer while
conducting buying process, Herein, respected company has employees wide sales person for the
retail store. The responsibility of sales person is to help the customer while making decision or
providing them right fit for themselves, Therefore, it has created huge convince for customer.
Financing: The financing function of marketing emphasize on providing credit facility to
various channel member as well as consumer. Herein, Zara company has extended the credit
facility for both distribution channel as well as for customer. This has helped in building long
term relationship of stakeholder with the company.
Therefore, following marketing function are the essential parts that helps to constitute
that better strategy as well as planning to make essential strategy for company.
2

P2: Define roles and responsibility of marketing in relation to wider organisation context
An organisation has various department or division such as marketing, HR and Finance
which are interconnected with each other and helps to fulfil overall objective of an organisation.
In relation to Zara company which is large organisation due to which it has various department
which work collectively in order to fulfil the purpose of organisation. Though role of each and
every department is different but they operate to carry out business operations smoothly. Some
of the interrelated role performed by various department are defined below (Cabrera and
Williams, 2014):
Interrelation between marketing and production department: Production department
focuses on transforming raw material into quality good. Whereas, marketing department
identifies as well as satisfy the requirement of customer. In context to Zara company the role of
marketing department is to use all the data or information which is related to preferences of
customer. This data is further used to analyse the changes company can make as well as new
design they can introduce. Further, product department helps in creation of quality designed
based on the information analysed by marketing department. This indicate that both department
must cooperate with each other in order to achieve organisational success.
Marketing and finance department: Finance department is the essential pillar of
business that is concerned with profit, sales growth, financial position, expenses incurred,
feasibility of plan or project and so on. Along with that it gives the options of various sources of
fund as well as helps in making better comparison with the competitor. On contrary, marketing
department has to invest in various promotional tool to make the customer familiar with product.
Thus, budgets are prepared by finance department which are being utilised by marketing
department in order to make decision related to setting organisational strategy. Moreover, based
on the survey , review or outcome of research gather are conveyed by the marketing division to
finance division. This helps in the preparation of effective financial strategy for organisation.
Thus, both of departments works simultaneously by forming better relation with each other.
Marketing and Human resource department: The main resources of an organisation
is manpower which is required to run the business operation successfully. Thus, personnel helps
to achieve the target of business by increasing the footfall of company. Therefore, to get the right
candidate for right profile marketing department depends upon HR department. The role of HR
department is to conduct whole recruitment cycle, provide training and motivate the employee in
3

such a manner they remain influenced in achieving the target successfully. Hence, this represent
that both of departments are interrelated with each other and perform their function in favour of
organisation.
Marketing and sales department: Though marketing and sales are two different
department of an organization but both of them are interrelated with each other. The role of sales
team is to develop relationship with ultimate customer. Along with that they address as well as
provide solution to the customer. Thus, in order to conduct high sales volume for company
marketing department plays an effective role in building up relation with customer before giving
the product to sales department. Therefore, marketing department makes it easy for sales division
to form better relation with customer. Hence, both of them function together to increase the
profitability as well as productivity of company (Dodds and Jolliffe, 2016).
TASK 2
P3: Application of marketing mix by making comparison among competitor
Marketing Mix: Marketing mix refer to the tactics or actions adopted by company in
order to perform effective marketing activities (Fejza and Asllani, 2013). It involve seven P's of
marketing such as product, price, place , promotion, process, physical evidence and people which
are together used to attain marketing objective. Thus, the manager of organization consider
marketing mix while launching new product in the market. As it gives in depth analysis of the
market as well as potential customer to whom company target. In context to Zara company,
which perform its business in several developed as well as developing country for which they
have prepare marketing mix strategy. This helped the company to make effective plan based on
various geographical areas which made the existence of company easier. Thus, comparison is
made between Zara and H&M company based on the 7P's of marketing for their offering.
Basis of difference Zara H&M
Product Zara is one of the luxury leading
brands that offer product for all section
whether they are men, women or kids.
It include product such as trousers,
jeans, shoes, tops, accessories that
include bags and so on. Thus, it have
H&M is a clothing brand which
provide fashionable product for
men, women as well as kid. It
cater the emerging need of
customer due to which it has also
come up with more product
4

provide huge choices for customer
among formal or informal wear.
Moreover, it keeps on launches new
product for the customer based on the
changing taste and preferences of
customer for instance, company
approximately introduces ten thousand
design in a year. This reflect that
company highly consider the choices
of their customer based on the
information gained by company.
Furthermore, company make effective
precaution in order to reduce the waste
at the time of production of goods and
services because they believes in
sustainable development due to which
they make the use of organic cotton at
the time of production.
range yoga wear as compare to
Zara. Other than this it provide
various fashionable collection
such as denim, accessories,
beauty product and so on. Thus,
respective brand majorly target
to fashionable youth (Guffey and
Loewy, 2012).
Price In comparison to various internation
brands Zara offer high quality product
but at low price. In addition to it,
market based pricing strategy has
worked in favour of company because
due to this company need not to do
much expenditure on advertisement
which has finally reduced the
enormous expenditure of company.
Moreover, company uses sales
promotion technique such as discount
more twice or thrice in a year, to avail
product at discounted price customer
H&M provide premium quality
of product and services at
comparatively low price in
comparison to Zara which is bits
biggest competitor.
5

of Zara wait eagerly.
Place Zara has expanded its reach to various
countries like more than eighty
country for which it has approximately
six thousand outlets. Apart from
physical distribution company also sell
its product through online platform.
Moreover, the vast supply chain of
Zara have provided them competitive
advantage as it helps the company to
bring their innovative product in
market at a very short span of time.
Therefore, almost all physical stores of
Zara are situated at posh area due to
which they gain the attention of wide
range of customers.
The store of H&M are located to
major cities, where company can
target huge number of targetted
customer. It has approximately
four thousand store which are
comparatively low in comparison
to Zara. Moreover, company has
effective supply chain which
helps it transfer of goods and
services from production
department to final customer
(Jacoby, 2014).
Promotion Zara only makes the use of worth of
mouth promotion as well as social
media in order to promote its product.
Other than this they does not make the
use of any other tool such as television
or print media which involve lot of
expenditure.
Respective company uses
multiple channel to promote their
product such as TV
advertisement, digital media that
includes, you tube, social media
and so on. Thus, company has
build its strong position and huge
customer base by spreading the
awareness about the product.
People The work culture of Zara is modern
and adaptive towards changes due to
which employee get training on the
regular basis. Additionally, company
make sure they come up with
People helps to perform the
business operations smoothly. As
respective company deals with
customer through both click
business as well as retail store
6

innovative design that increase the
productivity of company. Zara has tied
up strong relation with various
designer that help the company to
launch latest trendy outfit.
due to which they hire huge
number of employees. Company
also train their existing as well as
potential employee on
continuous basis so that staff can
enhance their knowledge and
perform their task successfully.
Like, the role of sales person in
H&M is to assist the customer
while selecting the product.
Physical evidence The ambience and attitude of staff
towards customer is very decent that
appeals the interest of customer. It has
created a huge buzz in market by
diversified its product in national as
well as international border. Further,
the merchandise of company are of
high quality with latest design
(Malhotra, 2015).
The ambience as well as
merchandise is systematic placed
in the store this helps in
maintaining the customer
experience while purchasing
product. Along with that
company invite celebrities during
the time of launch to gather the
attention of customer. Moreover,
company helps in better
engagement of customer by
working on the recommendation
provided by them.
Process The manager of HR plays an essential
role to provide training to the staff this
helps to enhance their skill and form
long term relation with them. Also
company have customer acre number
that helps to resolve the issue faced by
customer.
The employees of H&M are
highly trained to help the
customer while selecting best
merchandise and resolve their
problem in order to decrease
dissonance.
7

TASK 3
P4 Formulation of marketing plan for an organisation
Marketing plan is prepared to depict the current position of company. It include the
activities such as advertisement or marketing that helps to attain the goal of organisation (Ng,
Fang, and Lien, 2016).
Introduction of company: Zara is one of the biggest fashion brands that operate
globally in more than ninety countries and has more than ninety thousand stores. It offer wide
range of product such as jeans, t shirts, skirts, dresses, trouser, bags, shoes, accessories and so on.
Recently company has generated revenue of $18.9 billion annually. Company want to launch
ethnic wear for their prospect.
Vision: The vision of Zara company is to expand its existing product range by offering
ethnic wear product other than western or formal wear. This will enhance the growth of company
by building desirable experience of customer (Ogunnaike, Oyeniyi and Adeniji, 2012).
Mission: The mission of company is to provide innovative product with new design and
pattern that helps in building the experience of customer. Thus, the product of company are made
from quality material which are affordable for target market.
Marketing objective: The marketing objective of Zara company is to place its new product in
such a manner it gains the attention of custom,er and enhance the sales of new product by 20%
within two to three month of launching new product.
STP: STP refer to segmentation, targeting as well as positioning of product in such a
manner it target the customer by developing effective strategy.
Segmentation: Zara has conducted segmentation based on behavioural, demographic as
well as psycho-graphic segmentation. It has differentiated its product among various
competitors. Along with that it keeps on launching innovative design after ever two to three
weeks.
Targeting: Zara target to the wide population based on high and high middle income
group people. Among various category company majorly target to women clothing in
8

comparison to men or children clothing. Therefore, it target to fashion conscious people (Perry
and Pyatt, 2015).
Positioning: Company has positioned itself as premium quality product which is
available at mid pricing. Thus, company provide luxury product to high or middle level people at
reasonable price.
SWOT analysis of Zara
Strengths
 Strong global presence in
international market
 Introduce innovative design after
every regular interval of time due to
which customer get fresh
stock(Shaw, 2014).
 High brand value because of its
premium quality product
Weakness
 Zara may experience decrease in
sales as company does not use
advertisement tool to promote its
brand.
 Generalised collection
Opportunities
 With the increase use of internet
company has advantage to promote
its brand through digital media
 Huge growth opportunity to tap into
various untapped market of
developing country.
Threats
 Huge neck to neck competition from
existing brand such as H&M and
Mango.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial fund 8000 13000 15000 11000 9000
9

Investment 2000 16000 25000 30000 10000
Total 10000 29000 40000 41000 19000
Marketing outlay
Promotion 10000 3000 8000 11000 3000
sales publicity 3000 5000 5000 3000 5000
Direct selling 3000 13000 4000 3000 3000
Total 16000 21000 17000 17000 11000
Monitoring and control: Monitoring and control activity helps to reduce the chances of
variation while launching new product in the market. Along with that if any gap arises between
standard and actual performance then manger take precaution to minimise it significantly.
CONCLUSION
As per the above report it has been concluded that marketing helps in promoting products
in the competitive environment. It is useful in raising capabilities of different departments for
developing and growing business. Various range ad functions are performed by marketing
managers along with integrating activities in context to organisation. It also includes application
of marketing mix for effective planning in accomplishment of desired objectives along with
comparison with competitor and formulation marketing plan for launching a new product in the
global market successfully.
10