Strategic Marketing Analysis: Marks & Spencer's B2B and B2C Approach

This essay provides an in-depth analysis of Marks & Spencer's marketing activities, focusing on their B2B and B2C business models and the strategic use of the marketing mix. It explores how M&S leverages both direct-to-consumer retail and business-to-business corporate gifting to maintain a competitive edge in the UK market. The essay details the company's shift towards digital marketing, strategic acquisitions to diversify product lines, and commitment to sustainability. It also highlights the importance of brand image and customer convenience in driving sales and sustaining profitability amidst challenges like recessions, lockdowns, and Brexit. The analysis concludes by emphasizing the effectiveness of M&S's marketing strategies in navigating the competitive landscape and maintaining a strong market position.

Essay

Contents
INTRODUCTION....................................................................................................................3
MAIN BODY............................................................................................................................3
CONCLUSION.........................................................................................................................5
REFERENCES.........................................................................................................................6

INTRODUCTION
The rise in entrepreneurial spirit across the world has given rise to various types of
businesses popping up all over the world with unique ideas and approaches and the firms
which belong and operate in separate industries and market segments often follow and
display different strategic approaches and way of conducting trade with other parties.
However the basic classifications of business remain the same as most firms fall under the
brackets of either being B2B or B2C where the former means primarily existing to serve
customers and general public while the latter involves a business conducting trade and selling
products and services to other businesses (Willis, 2018).
There are also rare cases where the company in question is involved in both the
segments and caters to businesses and the public both with either the same service or
different utilities and product lines. A perfect example of such instances in the company
Marks and Spencer which is a British multinational retailer established by Michael Marks
and Thomas Spencer in Leeds in 1884. This report will assess the current marketing activities
of Marks and Spencer to determine how their usage of marketing mix elements affects their
B2B and B2C operations and helps in attaining and sustaining competitive advantage.
MAIN BODY
B2C or Business to Customer is the most popular business segment in the world as it
refers to the business model which involves direct selling and marketing of products and
services to the final and ultimate consumers by companies without added interventions by
third parties and middle men involvement. Marks and Spencer primary dominance in the
retail market across the world has primarily come from this method of doing business as the
company has many physical retail outlets along with e-commerce channels facilitating direct
trade with people. Its marketing tactics for selling to customers involves a diverse use of
multiple tools and techniques built for the purpose of attracting customers online as the term
B2C is primarily used for digital sellers who drive sales using the power and reach of the
internet. M&S employs a robust digital marketing strategy and it has made various
acquisitions recently to better the amount of market niches it can cater to such as Nobody’s
child for selling sustainable fabrics. The company has shifted its focus to B2C in the past
couple of years due to channeling most of its resources to build online clothing and food sales

channels which it markets using advertisements focusing on customer convenience and
making emotional appeals using themes of major festivals like Christmas.
B2B on the other hand is a very different concept than the one of B2C as it involves
the transactions and monetary exchanges which take place between two business entities
mainly for the purpose of acquiring raw materials in the form of inputs for production or
providing specialized products and services specifically designed for business use (Reinartz
and Berkmann, 2018). Marks and Spencer identified the scope and profitability in this
segment in 2017 when it launched a separate business branch arm called ‘M&S Corporate
gifts’ which exclusively caters to other businesses in the UK by offering them special
workforce appreciation services. M&S does marketing for its B2B side of the business by
targeting firms with a large workforce and complex work schedules such as automobile
manufacturing companies and sells them business vouchers and gift hampers for their
employees and customers which are great deals to raise morale of workforce and impression
on customers.
Marketing mix is very important for firms in order to remain afloat in the target
market and to formulate as well as implement the most efficient combination of different
marketing techniques to ensure sales and customer base remains as robust as possible. Marks
and Spencer operates in the UK’s retail sector which is a segment which big players such as
Tesco, Sainsbury’s and ALDI’s which are very tough competitors but M&S has managed to
carve its own niche in the industry and has remained profitable for a long period of time due
to its expert application of the various elements of the marketing mix. When it comes to the
product mix, Marks and Spencer has diversified its operations quite a bit as apart from
keeping its focus on groceries and clothes, it has featured into green food ingredients, fresh
and locally sourced readymade dishes and also made major strides in the field of selling
lifestyle products and medicines along which recreational drugs which covers a lot of market
segments online. The pricing of the products are kept very competitive with special discounts
and lower tier prices during festivals and special occasions to drive food and clothing sales
specifically. When it comes to place mix, Marks and Spencer has been increasingly focusing
on digital channels of sales and supply and has abandoned a low budget allocation that earlier
used to go towards its retail stores physically (M&S cuts marketing spend by a third as it
accelerates shift to digital, 2022). Promotion mix is also used in a diverse manner with
emotional advertisement appeals around festivals, direct selling and home deliveries along
with robust digital marketing with SEO optimization.

Marks and Spencer has over the past century and a half stayed very healthy and
profitable despite being hit by roadblocks such as recessions, lockdowns and Brexit due to a
combination of various factors. The major reasoning from which they derive their
competitiveness is their marketing and strong brand image. M&S has always kept its clothing
price at a luxury premium and was the first retail brand in UK to design and sell their own
brand of clothes in their stores which have let in enjoy a huge customer base with a strong
business identity (Quintessentially British brands: It’s not just branding, it’s Marks &
Spencer branding, 2021). The strategic acquisitions to diversify product lines, focus on mass
home delivery of readymade food and committing towards sustainability are the new
marketing tactics which are helping the brand be competitive and drive its sales forward in
the current business landscape of UK.
CONCLUSION
The above essay went into detail regarding the various operations that are taken by
retail companies to survive in the tough market conditions of UK which has been hit by both
Brexit and COVID-19 with the focus on their marketing activities and use of marketing mix
elements. There was a discussion presented on the different types of business models such as
B2B and B2Ca along with examples of companies which do both and their marketing efforts
in both these endeavors were duly stated. The essay was concluded with the description of
marketing mix employed by companies who conduct both B2C and B2B business along with
the reasons behind their competitiveness.

REFERENCES
Books and Journals
Reinartz, W.J. and Berkmann, M., 2018. From customer to partner engagement: a
conceptualization and typology of engagement in B2B. In Customer engagement marketing
(pp. 243-268). Palgrave Macmillan, Cham.
Willis, P., 2018. B2B Versus B2C Communication. The International Encyclopedia of
Strategic Communication, pp.1-10.
Online Referencing
M&S cuts marketing spend by a third as it accelerates shift to digital, 2022 [online] available
through https://www.marketingweek.com/ms-cuts-marketing-spend-by-a-third-as-it-
accelerates-shift-to-digital/
Quintessentially British brands: It’s not just branding, it’s Marks & Spencer branding, 2021
[online] available through https://fabrikbrands.com/marks-and-spencer-branding/