Marketing of Marks and Spencer: A Comprehensive Analysis

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MARKETING OF MARKS AND
SPENCER
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Table of Contents
Introduction......................................................................................................................................2
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization.....................................................................................................................................2
P1 Explain the key roles and responsibilities of the marketing function....................................2
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context..........................................................................................................................................4
LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve
overall business objectives..............................................................................................................6
P3 Compare the ways in which different organizations apply the marketing mix to then
marketing planning process to achieve business objectives........................................................6
P4 Produce and evaluate a basic marketing plan for an organization.........................................8
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................10
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Introduction
According to various empirical studies, marketing is a fundamental necessity to leverage the
business organization in optimizing their growth and profitability in the dynamic market. It is
highly required in order to ensure the success of an organization in a significant manner. In this
regard, marketing can be described as the social phenomenon that can be useful for individuals
or organizations in acquiring higher competitive advantage in the dynamic market sphere. It
consists of a brief set of activities including advertising, promoting and trading of the products
that are developed in order to leverage the business’s profitability (Dewi and Darma, 2019).
Marketing can also be defined as a discipline that encapsulates the entire fundamental course of
action necessitated in order to attract a larger base of customers that can contribute to the rise of
organizational profitability though business transactions. The modern generation market
demands the business organizations to be familiar with the basics of marketing in order to gather
a higher advantage in the dynamic sphere. Because of globalization, the businesses are required
to develop effective marketing strategies in order to promote their brands and products in a
significant manner (Calu et al., 2016). With respect to this, the following assessment aims to
shed light on the contribution of marketing in leveraging the overall efficiency of an
organization. It further discusses an effective marketing plan that can be useful in terms of
helping an organization in promoting their products in the dynamic market sphere. The
organization that has been chosen to commence this assessment is Marks and Spencer co.
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization
P1 Explain the key roles and responsibilities of the marketing function.
In order to comprehend the roles and responsibilities of the marketing function, it is initially
necessary to understand the basic functions that encapsulate the role of marketing significantly.
In this regard, the primary functions that compose the function of marketing consist of activities
such as product development, promotional activities, advertisement and other fundamental
actions (Stephen, 2016). With respect to this, the roles and responsibilities of marketing are as
follows-
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Establishment of a marketing strategy- A marketing strategy is firstly required in order to
demonstrate the process through which the organization will be able to initiate their marketing
activities (Stephen, 2016). The development of an effective marketing strategy can be
significantly useful in terms of helping the organization in promoting their catered products to
their targeted audience base. Therefore, a marketing strategy enables the business in studying the
purchase behaviors of their customers that they would be pitching their products to, which is
followed by the development of a strategic approach to develop the product. In this regard, as the
organization initiates the development of a marketing strategy, they are open to the possibilities
of understanding their customer base in a much in-depth manner (Dewi and Darma, 2019).
Furthermore, the development of a marketing strategy has been confirmed by various empirical
the studies as a key driver that optimizes the role of product development. This is because the
organization is enabled to gain an in-depth analysis of the general preference of their customers,
which can be further used in order to develop products that can help in gathering their attention
in a significant manner. In this regard, the development of a marketing strategy is a highly vital
role of the marketing function.
Product development- As discussed above, the role of marketing function in terms of product
development is fundamental. This is because the marketing department works alongside the
product development department in order to ensure that the ultimate product that is being
developed consisted of a considerable market value. Otherwise, heavy marketing would not still
be useful for the promotions and high sales of the product. In this regard, the marketing function
plays a fundamental role in terms of establishing new marketing or making incremental
amendments in the existing products in order to raise the sales margin of the respective
organization largely (Stephen, 2016). In brief, marketing departments engage in in-depth market
research activities during the establishment of a marketing strategy. This analysis helps the
department in gathering sufficient information to determine the customer purchase behavior and
preference of product. This fundamental information is further channeled to the product
development team, which utilizes the data to develop products that can cater to the needs and
requirements of their customer base in a significant manner. Furthermore, the marketing
department also helps in gathering reviews and customer opinions regarding the existing
products of the organizations (Dewi and Darma, 2019). This information is further channeled to
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their product development team in order to make changes that are demanded by the customers,
which can be beneficial in promoting their products and raising their sales margin largely.
Promotion of product- Promotion can be classified as the most important responsibility that is
registered to the marketing function in order to maximize organizational productivity largely
(Calvo-Porral et al., 2017). In this regard, promotion can be best described as the fundamental
marketing communication that is implemented by business organizations in a significant manner
in order to inform the audiences targeted for the launch of a specific product. As the business
organizations study the consumer behavior in order to develop products that can be beneficial for
both the customers and the organization, the next step is to inform the customers regarding the
product. In brief, the customers are required to be familiarized with the benefits and value of the
products, so that the targeted audiences are allured to make purchases and benefit the
organization in exchange (Haugum and Grande, 2017). In this regard, the purpose of promotion
as a fundamental marketing function is to ensure that the product that is being promoted is
successful in developing a public interest and enhance awareness at the same time. Furthermore,
the marketing function also aims for the product to generate a significant rate of sales margin that
can be beneficial through proper promotional activities. It is also necessary that the promotional
activities are designed in such a manner that the product is able to optimize the brand loyalty of
the potential customers on a successful note. In this regard, diverse set of campaigns are hosted
by the marketing department in order to promote the products to the wider audience in a
significant manner. Furthermore, e-mail promotional activities are one of the modern
promotional strategies implemented by the organizations in order to raise awareness regarding
their products to their targeted audience as well (Haugum and Grande, 2017). Furthermore,
various other online promotional activities such as social media marketing are utilized by
organized through which they are enabled to reach a wider audience. On the other hand,
organizations also use traditional marketing strategies in order to promote their products in a
significant manner.
Ensuring organizational sustainability- The marketing department is bestowed with a
fundamental responsibility of sustaining the organizations business conduct in the wider market
sphere through a diverse set of strategic measures (Calu et al., 2016). In brief, the entire purpose
of marketing is to ensure that the products are being developed for the benefit of the
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organization, and are being spread out to a huge audience base that can be attracted by its
offerings and values. Once these two aspects are confirmed, the product can sell largely in the
dynamic market sphere that consequently increases brand loyalty of the targeted customers.
These criteria are required to be fulfilled in a significant manner in order to ensure that the
organization is conducting sustainable business in the market sphere (Kozlenkova et al., 2015).
These activities altogether ensure that the organization is reaping fruitful benefits from the
development and promotion of their products, which can ensure their long-term business conduct
in the market sphere in a significant manner. This is because maximization of profit is
equivalently required by the organizations along with customer loyalty to sustain their business
conduct, which is significantly fulfilled through the marketing function.
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context.
The important role played by marketing within the context of marketing environment is
undeniable. Marketing managers have a titular role to play in managing the marketing operation
of an organization (Feng et al., 2015). The practical application as well as the management of the
marketing operations of the organization is given importance to by the marketing mangers. It is
highly essential for marketing managers to be highly effective in terms of communicating as well
as analyzing. Marketing managers need to incorporate proficiency in analytical as
communication skills while performing marketing functions. In terms of small organizations, the
marketing manager is endowed with the responsibility of looking after the overall marketing
activities along with formulation, direction as well as coordination of marketing activities for
influencing customers for choosing the products of the organizations over those of their
competitors (Homburg et al., 2015).
Marks & Spencer is known as the multinational retail company, which is based in the United
Kingdom and is seen to have occupied a preferable position in the retail market of UK. However,
the multinational retail company is seen to be confronting with several rising competitors
including Devenhams, Macy’s, John Lewis Partnership and so on. This is the reason why the
marketing team of the company is seen to be leaving no stone unturned in order to gain an
advantageous position in the competitive market sphere. The roles as well as responsibilities of
marketing team of Marks & Spencer are given below:
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Market Research is conducted by the Marketing Manager
An effective marketing researcher is conducted by the marketing manager of Marks & Spencer
for gaining a detailed analysis of the needs of the customers. The marketing managers of the
organization is enabled in identifying new opportunities related to marketing, which will enable
the organization in creating a market niche for its services as well as products (Richardson,
2018). Study of its competitors for the development of superior products as well as employment
of proficient marketing techniques is also involved in the market research. The market research
is conducted by Marks & Spencer is conducted through the usage of questionnaires as well as
interviews. The purchasing habits of the customers are also analyzed in the market research. In
the marketing research, the marketing team analyzes the marketing strategies of its competitors
and strategizes accordingly (Järvinen and Taiminen, 2016).
Development of the Marketing Strategy
The development of the marketing strategies is made possible by the marketing managers of
Mark & Spencers. The ways for effective promotional strategies are made by the marketing
managers of the company. With the help of effective marketing research, the managers are
enabled in identifying effective promotional strategies, which will assist the organization in
attracting its target market (Olson et al., 2018). This in turn will enable the organization in
enabling the organization in gaining huge profit through increasing sales volumes. Besides, it
will also enable the organization in gaining an advantageous position in the competitive market
compared to its competitors.
Management of Customer Relationship
The function related to the establishment of an effective management of customer relationship in
Marks & Spencers is performed by the marketing manager. The information is collected by the
marketing manager from the database of its customers for the creation of a survey of customer
satisfaction. This information is shared by the manager of the organization with other employees
for ensuring highly effective customer service to its customers for building a valuable
relationship in the long term (Ahmed, 2018).
Management of the Employee
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The marketing manager of Marks & Spencer is endowed with the responsibility of looking after
the marketing department. Hence, they are seen to be responsible for looking after the employees
who work within the department. The employees within the marketing department are assigned
with duties by the managers. Besides, the marketing manager of the organization is seen to be
setting targets for the departmental staff as well (McDonald, 2016). The staffs within the
marketing department as well as the departmental staff is endowed with the responsibility of
delivering effective services to the customers in accordance with their requirements as well as
requirements of the market. Furthermore, it is highly imperative for the marketing manager to
conduct periodic evaluations of the performance of the employees for them.
Identification of the New Business Opportunities
The marketing trends are analyzed by the marketing managers for the purpose of the
identification of new or unexploited markets for the products as well as services of Marks &
Spencer. The marketing managers of the organization are endowed with the responsibility of
studying the buying patterns of the customers, which enables them in identifying the off-peak as
well as peak demand periods for their services as well as products. Through the employment of
sales forecasting future performance of the products of the organization is estimated by the
organization. Moreover, with the help of analyzing the market as well as its forecasting strategies
for ensuring the competitiveness of the organization is developed (Blythe and Martin, 2019).
The marketing department of Marks & Spencer is also interrelated with the Human Resource
Department
Relation between the Marketing Department as well as the Human Resource Department
The accuracy as well as the productivity of all the departments is developed by the HR
Department of Marks & Spencer. It also provides assistance to any department to gather
experience with the help of training sessions. The marketing department as well as the human
resource department is intricately interrelated with each other. For the development of a strong
team, the marketing department needs to develop relation with the HR department (Ahmed,
2018).
Relation between the Marketing Department as well as the Finance Department
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The marketing department of Marks & Spencer to develop relation with the financial department
since a lot of statistical information is provided by the financial department. The financial
department provides with the money needed by the marketing department (Richardson, 2018).
LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to
achieve overall business objectives
P3 Compare the ways in which different organizations apply the marketing mix to then
marketing planning process to achieve business objectives.
Marketing mix can be best described as a fundamental of the business marketing dimension that
can be used as a useful tool in order to leverage the business sales, growth and profitability of an
organization in a significant manner. In this regard, marketing mix has been historically
perceived as an operation plan of marketing that helps businesses in gaining a higher competing
advantage in the wider market sphere (Martin and Javalgi, 2016). Marketing mix strategy
comprises of seven fundamental P’s, such as product, price, promotion, place, physical evidence,
people as well as process. The following section presents a brief comparison amidst the
marketing mix of Marks and Spencer and Starbucks, which is as follows-
Marketing mix of Marks and Spencer
Product- Marks and Spencer can be considered one of the most established brands operating in
the United Kingdom market sphere. In this regard, the company is such a vast organization that
has been providing for the requirement of almost every customer segment in the market. The
product portfolio of the organization covers products for children, teens, adults as well as
matured citizen. The company sells diverse products such as blazers, loafers, cardigans, tees,
shirts, jeans, skirts etc., which is sufficient to gather the attention of customers form every
segment. Furthermore, the company also sells furniture products, food items, winery etc (Toda
and Dawson, 2017).
Price- The Company is highly competitive in nature, for which it has been able to sustain in the
market for such a long-term. In this regard, the company sued competitive pricing policy in order
to attract customers. This is because the company recognizes that the customers have a wide
range of options to select from in the dynamic market sphere. Therefore, the organization gains a
higher competitive advantage by implementing competitive pricing strategy in their products.
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Promotion- The company implements attractive advertisement campaigns in order to promote
their products in the wider market sphere. In this regard, the company strategically aligns all
sorts of relevant promotional strategies in order to reach out to a wider range of customers
regarding their product offerings in a significant manner. In terms of traditional promotion
strategies, the organization exploits mediums such as print media, billboards, television
advertisements etc (Calvo-Porral et al., 2017). In terms of digital promotion, the organization
uses mediums such as social media platforms and their official website to promote their latest
discounts and offers, which can allure new customers to their stores.
People- Due to being one of the largest business organizations operating in the global market
sphere, the organizations has a robust global presence that gives them a high competitive
advantage. The company has more than 83000 workforces operating in more than 50 distinctive
nations, which further enables facilities such as home delivery to acquire more customers (Toda
and Dawson, 2017).
Physical evidence- As discussed above, the organization has a robust global presence in the
market sphere. With respect to this, the official reports claim that the organization has a global
presence of more than 1000 official stores spread over more than 50 countries (Islam, 2016). In
this regard, the organization has also established their stores in countries such as Spain, Iceland,
Turkey, India etc.
Place- The country has presence in the global market, due to which they have been able to
establish their business operation in several developed as well as developing economies in the
market sphere. In brief, the organization has strategically placed its presence in developed
nations such as United Kingdom, United States as well as developing economies such as India in
order to spread their business.
Process- The organization decorates their stores in a highly attractive manner, which helps in
stealing the attention of the customers. The stores are divided as per sections of distinctive
products, which helps the customers in easily searching for their preferred products (Islam,
2016). Furthermore, the organization also enables online sales and purchase through their official
website.
Marketing mix of Starbucks
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Product- the Company has specialized in various products such related to beverage and coffee
products. It also adds cultural diversity in their products, which allows it to developed
specialized products for the regions where it operates. The organizations product portfolio
further allows sales of coffee-related equipments.
Price- the company is a premium brand, for which it specializes in implementing premium-
pricing strategies in their products. The organization had recently reported to raise the prices of
their products, which was due to the rising pricing of the raw materials required for their product
development (Harrington et al., 2017). Nevertheless, the company also focuses on minimizing
the prices of their most popular products in various cases to attract a larger base of customers. On
the other hand, the company has been reported to sell their tea products at very cheap rates,
unlike coffee.
Promotion- the Company is popularly renowned for their alluring digital promotion strategies.
The company focuses on suing popular social media platforms such as facebook, youtube,
instagram etc. in order to promote their product offerings to a wider customer range in a
significant manner (Wei, 2016). The company also has their own official website, which is
significantly used by them in order to promote their sales to a wider range of customers.
Place- The organization is recorded to have a significantly vast global presence, due to which it
has been able to penetrate the market spheres of several developing as well as developed
economies. In this regard, the company has around 30,000 official stores in more than 78
different nations (Harrington et al., 2017). The organization is present in established economies
such as United Kingdom, United States as well as developing nations such as India, Bangladesh
etc.
Physical evidence- The organization has significant physical evidence across the globe, with
more than 30,000 stores in 78 nations (Wei, 2016). Apart from the official stores, the star bucks
coffee and tea raw products are available in local super markets.
Process- The organization primarily prefers to follow the method of joint ventures in order to
operate in the market spheres. The company also has retail outlets where the customers are
directly enabled to purchase their products at fair prices.
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People- The organization has been recorder to employ a vast workforce of 2.9 million employees
(Wei, 2016). The company is focused on the growth and job satisfaction of their employees. In
this regard, they are providing on-the-job training to enhance their performance.
P4 Produce and evaluate a basic marketing plan for an organization.
In order to establish itself as a leading brand in the global market, Marks and Spencer has
developed efficient STP strategy to remain ahead of their competitors (Kennedy and Sommer
Kapitan, 2016). The different aspects of STP (Segmentation, Target and Positioning) are:
Market Segmentation:
Geographic- The main target of the organization is that group of people that buy clothes from
high-class retailers like Zara.
Demographic-
Gender- The main target of the organization is women customers that accounts for more than
58.32% than men who accounts for about 49.2%.
Age- The main target of Marks and Spencer is the young customers. Through latest fashion
trends they are able to attract numerous customers belonging to the age group of 21-26 years.
Socio-economic status- Marks and Spencer has always concentrated on the affluent population
class and thus, they have lost the attention of middle mss market. Their latest strategy is to
developed affordable products that can be easily consumed by the middle class communities.
Psychographic- Mouzas and Ford (2018) stated that there is an increasing trend among the
consumers to value individuality. This is creating problems for global retailers to remain erect at
the middle of the market. Thus, the main focus of Marks and Spencer is to create such product
that can be accepted by thy consumers open-heartedly without any obstacles.
Behavioural-
Quality versus Price- Sidhu (2018) revealed that the regular customers who shop from Marks
and Spencer favour quality and the durability of the clothing materials. These people usually
belong to high-economic class. However, the organization is losing its importance among the
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