Marketing Report: Introduction, M&S Analysis, and Market Segmentation

This report provides an introduction to marketing, defining its core concepts and importance. It then focuses on Marks and Spencer (M&S), a leading retail firm, analyzing its strengths, weaknesses, opportunities, and threats (SWOT). The report delves into M&S's global brand recognition, market experience, and product development, while also addressing weaknesses like poor technology and high labor turnover. Opportunities such as international market expansion and self-billing systems are discussed, along with the threats posed by competitor pricing and changing trends. The report further explores market segmentation, explaining its bases (gender, age group, income, place, lifestyle, and occupation) and types (geographical, behavioral, and demographic). The report aims to provide a comprehensive understanding of marketing principles and their application in a real-world business context, specifically within the retail industry. The report uses various marketing concepts to analyze the company and it's marketing strategies.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing means the strategies which are used to promote the product or the strategies
which are used to capture the market. Generally, companies use this to buy and sell the products
and services. It includes advertising, promotion and selling (De Mooij, 2018). Activities those
are includes in the marketing are tools of the marketing. Marketing help to increase the customer
base, analyse the need of the buyers and develop new products (Chaffey and Ellis-Chadwick,
2019). This report is based on the Marks and Spencer company which is a retail industry based in
the Leeds United Kingdom. It was established in the year of 1884 by Michael marks and Thomas
Spencer. In the year of 2019 it has total 1463 stores worldwide. It deals in all type of business
and it have revenue of 10377.3 million pounds. This will include the meaning and definition of
the marketing and importance of the marketing. Further this report will include the strength and
weakness analysis of the Marks and Spencer. This report will also include the marketing
segmentation and importance of it for the organization.
TASK
What is Marketing?
Marketing is a continuous process or exposer to the advertising and promoting the
product and services to the people and attract them to by the products. It is a process done to
understand the needs and wants of the public and sell the products and services and increase the
sales of the company and want to earn ore profits. Marketing includes the advertising and
promotion of the products. There is a marketing department exist in every company. Marketing
is mainly based on the advertising, it means to advertise product and attract potential consumers
by advertising product and increase the sales of the company (Wirtz and Lovelock, 2016).
Marketing may be taken as the selling but selling does not mean to the marketing. Selling and
marketing can be differential by the following terms.
Basis of difference Selling marketing
Point of start It starts with the factory when
the product is manufactured
and ready to sale in the market
It starts at the market by
research of the market for the
evaluation of consumers need
wants.
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focus I focus on the already exist
product, which is already in
the market.
It focuses on the need and
satisfaction of the consumers
Means It means the selling and
promotion of the products
(Homburg, Jozić and Kuehnl,
2017).
It means to the integrated
marketing so that product can
be promotion.
According to standards marketing is a planning and execution of the operations. It
consists more different steps in between that which are pricing, designing, promotion,
distribution channel for the good and create the product according to the needs of the consumers
(Chernev, 2018).
Importance of the marketing: -
marketing is really importance part of every business and to be successful every business
needs a proper marketing plan that can be easily derive the process of the business.
Illustration 1: importance of marketing
(Source: Need and Importance of Marketing, 2013)
 it provides the valuable data: - marketing provides the valuable data for the operations of
business activities and helps to make the decisions. It helps to evaluate the consumer
needs in the market and market opportunities (Felix, Rauschnabel and Hinsch, 2017).
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 Studies consumers attitude: - it helps the understand the behaviour of the consumer in the
market that what the consumers want and what they think about the products of the
company. This will help Marks and Spencer to review about the products and give the
ideas to take the leads and consumers attention.
 Select the techniques for the promotions: - it helps to get the idea of the market and get
the most suitable techniques for the promotions of the products this will help to get the
market leadership.
 Supply the marketing information: - this help to get the trends of the market, what is
the demand of the market and thing which are consumers are looking for (Moorman and
Day, 2016).
 evaluation of the performance of the market: - it evaluates the performance in the
market and find the reasons for failure and future opportunities of the market which helps
to get the upper head in the market.
SWOT analyses of M&S
M&S is the leading retail firm that provides high quality trendy cloths to consumers
across the world. Recently it is serving more than 21 million consumers.
Strength of firm
 Global brand: It is the powerful global brand which has branches or retail outlets
in many locations (West, Ford and Ibrahim, 2015). It has earned great reputation
by serving consumers well. Recently Marks and Spencer have become premium
supermarket. It has more than 1000 stores in more than 40 countries.
 Market experience: M&S was started in 1884, it has worked with several big
companies and having great experience which make it unique from other retail
firms. It has employed over 80000 employees those who are serving consumers
well.
 Product development: It continuously emphases on needs of consumers and
innovate new products that may help in satisfying requirements of buyers. It
ensures that people get satisfactory goods and services that may make them
positive towards the brand (Kannan, 2017).
Weakness
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 Poor technologies: M&S is using traditional technologies in its business operations. It is
operating in many geographical areas hence it is very important for it to use advance
technologies so that it can connect itself in other locations significantly (Burns, Mullet
and Bryant, 2016).
 High labour turnover: Company is facing problem of high staff turnover; employees
don’t get much development opportunities in the Marks& spencer as compare to other
competitors hence they do not work in organization for longer duration. In such condition
M&S has to invest a lot in hiring new candidates. Poor investment strategy: Its financial planning is not that much efficient hence company
sometimes face issue of poor cash flow (Van Den Berg and Braun, 2017). It is essential
for M&S that to improve its current asset ratio and debt ratio so that it can improve its
performance in the market.
Opportunities
 Expansion in international market: M&S has opportunity to enter into global market, it
can enter into new country such as Russia, Indonesia etc. This expansion may help the
firm in raising sales and gaining more competitive advantage.
 Launch the self-billing system: - M&S have opportunities to start the self-billing system
at the retail counter so that it helps in the saving the time of consumers and in increase the
sales of it (Goldberg, Fishbein and Middlestadt, 2018). This will also attract the consumer
to use the self-billing system so that they can get new experience of shopping.
 Market segmentation: - M&S have a good market segmentation it divides its products in
different categories for the different groups where costumers get the best experience of
shopping.
Threats
 Competitors pricing: - M&S have very big threat with the pricing of the competitor’s
pricing because competitors have the very low-price range as compare to the products of
the M&S company which may be a big threat in the future for the company. This will
lead to the decrease the profits and down the reputation of the company (Voorhees and
et.al., 2016).
 Changing the trends of clothing industry: - firm is facing very big threat due to the
changing in the trends of the clothing which may decrease the sales of the M&S in future.
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What is Market segmentation?
Market segmentation means to divide the market on the basis of the target section. In
simple words divide a market in the small parts on the basis of the target areas and try to make
different areas of targeting the market. Normally it divides on the basis of the consumers and
area like old costumers, potential consumers and geographical area. This will help to target a
small section of market so that it can be easily understand the needs of the market and provide
the proper attention over the task (Ashley and Tuten, 2015).
Bases of the market segmentation
 Gender: - first and basic base of the market segmentation is gendering the company
always devides the segments on the basis of the gender. Because of the male and females
both have different choices and different taste and their satisfaction level is also different.
For the M&S have it different segment of male and female.
 Age group: - the factors matters is a age factors there are various age people and all have
different choices like youngsters have trendy and rocking taste and they focus on the on
the fashion in the current but is talk about the old age people they prefer the comfort not
the fashion. So that the segmentation should be divided on the basis of the age group
(Goldberg, Fishbein and Middlestadt, 2018). It will create better communication and
strategies to apply.
 Income: - there one more segment of market which is the segmentation on the basis of
the income level of the consumer and company should decide their target consumers area.
It can be dividing the income in following ways low income section, mid income section
and high-income section. This will to target the consumers of the company and also help
to set the price of the products
 Place: - place is means the boundary or the area in which the process of selling is going
to be done if the area is modern than company launch the products according to that and
If the area is traditional than company should adopt the products according to that. And
also, if the place the locality and the living of the consumers.
 Lifestyle: - it’s says that the life styles of the persons who are going to use the products of
the company, because it will impact on the sales of the company (Van Den Berg and
Braun, 2017).
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 Occupation: - it’s like the working of the target are or making product for the which
section. Like company wants to sale the cloths to the corporate employees. So that it
should launch the formal wears for them.
Types of the market segmentation: -
 Geographical segmentation: - it means that the type on the basis of the geography
(Burns, Mullet and Bryant, 2016). It is the very important type of the market
segmentation because this division helps to get the idea of what should produce for
whom. For example, if there is low temperature are and and if company will launch the
cotton cloths it will be suffer from the loss but at the same point this will profitable in
those area where temperature remain high always. It shows that the if company do not
properly analyse the demographical segmentation than it will bear loss due to it. The
peoples who belongs to different regions have different choices
 Behaviour segmentation: - the division of segments on the basis of the different
behaviours of public towards the product of the company. This will help to find the
costumers usage, preference, taste, choice and their decision making towards the
products. In this the public can be segmented on the basis of the person who knows the
product, users of the product, those who are not aware about the product, ex users of the
products, first time users and potential user of the products. This will help to categories
the buyer on the basis of the brand loyalty. From this company can gives the extra
benefits to its potential buyer which increase the sale of the company (Felix, Rauschnabel
and Hinsch, 2017).
 Demographic segmentation: - in this type of markets segmentation the markets segments
are divides on the basis of the age, marital status, gender, income, family size, religion
and occupation. This is the most widely used segmentation by the marketers. This is easy
to segment and divide the public on that basis. So that they can easily change the
strategies according to their needs.
 Psycho-graphic segmentation: - in this the segmentation is done on the basis of the
lifestyle, personality and attitude. This is segmenting the market on the basis of the hoe
the consumer buying behaviour influence on the basis of the personality. This is not so
used segmentation but in the current era this is the one of the most useful method for the
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segmentation. It includes the characteristics of and individual which influence its buying
behaviours (West, Ford and Ibrahim, 2015).
Marks & Spencer is using the demographic and geographical market segmentation. This will
help fir to get the higher sales due to the proper market segmentation. And the strategies used by
the firm to segment the markets is useful for its development and product differentiation.
Importance of segmentation for Marks & Spencer
According to the conducted market research it shows that market segmentation used by
the marks and Spencer is demographical and geographical (Felix, Rauschnabel and Hinsch,
2017). This is the most widely used segmentation by the companies. This will help to get the
works divided on the nature and categories.
Strategies and segmentation, targeting and positioning (STP) analysis of the Marks and
Spencer
The marks and Spencer have the best market segmentation strategies. The STP analyse
show the organization behavioural tactics. It helps to get to increase the performance and the
efficiency of the firm. This is the widely use concept for an organization because of the its
importance this will help to get the money flow and help to get the clear vision of the aims and
objectives of the company.
 Segmentation: - this is the first step of the STP analysis. This will help to get the
strategies of the company and divide the market segmentation according to the strategies.
The organization Marks and Spencer use the demographical and geographical methods
for the market segmentation. And this also helps to grow the business in the mark and
Spencer. In this segmentation company can divides the segments into small parts. For
example, demographic can be further divide on the basis of the consumers age, gender,
occupation and education level. Geographical by the areas of the UK. And then it set the
targets.
 Targeting: - company mainly target on the two basis of the above segmentation which
age and gender. Company produce the products according to the age of the peoples and
gender of the clients. This will help to increase the sales of the marks and Spencer
because age is the criteria where company focus on the age groups of the costumers and
in this it targets the age group of 18-30 years public because higher percentage of the
population in the United Kingdom is youth that's why it targets the youth of the UK
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(Burns, Mullet and Bryant, 2016). This will help to increase the sales of the company and
also helps to increase the profitability which ultimately grow the marks and Spencer.

Illustration 2: STP analysis
(source: The segmentation, targeting and positioning model,
2018)
 Positioning: - it means to the use of marketing mix properly. Company use the 4 p's of
marketing in the positioning of the product for the selected segment area of the company.
It properly uses the price, place, product and promotions properly. Marks and Spencer
use the on the above elements for the providing the retail business. If the firm use this
element properly than it will help into the growth of the business. Position develop the
product position for the market segments.
Some recommendation for increasing market share
Buyers behaviour toward the products of the Marks and Spencer.
Buyers of the Marks and Spencer are so much loyal to the firm and the specially the
selected age group peoples are loyal towards the brand but the firm need to attract all type of
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consumer so that it increases the sales and profitability of the firm (Homburg, Jozić and Kuehnl,
2017). For that organization can add the following strategies in their existing strategies so that it
increases the all types of buyers and also increase the sales of the organization.
First the firm need to increase the valuation of the product more than before: - This will
help to identify the product differently. Marks and Spencer are a place where costumers get the
high-quality clothing and fresh food. If the marks and Spencer provide the same quality at good
value of money than it attracts the other buyers (Homburg, Jozić and Kuehnl, 2017). Also,
company can give the rewards to its potential costumers so that they retain loyal with the
company.
Company can also use the Psycho-graphic market segmentation: - this will help to set the
target and segmentation according to the modern problems and requirements so that this will
help to attract the costumers. In this type of segmentation company can divide the segments on
the basis of the personality, lifestyle and attitude of the person so that it helps to grow and
increase the sales and also increase the consumer base for the organization. This also retain the
costumers of the marks and Spencer (West, Ford and Ibrahim, 2015).
The above suggestions help to grow the Marks and Spencer in it also help to generate
more profit in the future.
Marketing mix
Another thing which Marks and Spencer can use for increasing its marketing awareness and
market share is to make a marketing mix. Marketing mix is a combination of the all elements of
marketing mix and these are applied by the company to get a competitive advantage over
competitors. The marketing mix of Marks and Spencer is discussed in the following points-
 Product- the product refers to as the things in which the company deals in. M&S is a
retail chain of supermarkets which is based in UK. The product mix of company includes
all the range of products for all age group ranging from women, men and children and
deals in clothing, footwear, handbags, jewellery and many other related things.
 Price- it is the major element of marketing mix. The company follows the pricing
strategy of competitive pricing. Under this technique M&S charges prices in accordance
with the prices of its competitors. The company has its own in-house brands so it is easy
for company to price its brand.
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 Place- this refers to as the place where the company let its customer to come and buy its
products and services. M&S is an international brand which is having its presence on
more than 1000 stores which are operating in more that 50 countries.
 Promotions- this is the most important element of marketing mix. It is because of the
reason that if the products of the company are famous and much popular than more
customers will be attracted towards the products and services of the company. M&S has
its advertising campaign with the help of digital marketing. Also, the company uses TV
ads, mobile advertisement and social media advertising to promote its products and
services in the international market.
 People- it includes all the people related with the company whether be it the employees,
customers, investors, government or any other person related with the business. The
company provides employment to around 83000 people all over the globe.
 Process- this refers to as the element which decides that how the products and the
services are supplied till the end users or the ultimate consumers. For this M&S is having
more than 1000 stores all over the world. All the stores of the company beautifully
designed and organized so that more of the customers are attracted towards the products
of the company.
 Physical evidence- it refers to as the things which are visible or evident relating to the
company which may attract the customers. All the stores of the company act as the
physical evidence for the company. It is because of the reason that all the products and
services are the things to which the consumers get attracted towards it.
Marketing audit
This is another tool which M&S can use in order to increase its market share. Marketing
audit is a technique which is used in order to identify its internal strength and weaknesses of the
company and the opportunities and threats which may pose problem from outside the business
world. Also, it includes the analysis of the external environment where the company takes help
of the PESTLE analysis in order to understand the impact if changes of the external factors on
the internal working of the business.
CONCLUSION
From the above study it can be conclude that the marketing is very important for every
organization. I help to increase the sales and revenue of the company. This study shows the
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importance of the marketing in which it has included the different roles of marketing in the
organization. This report shows the analysis of the strength and weakness of the marks and
Spencer also it included the opportunities of the marks and Spencer in which it can be expand its
business globally which helps increase its sale and revenue and it can also launch the self-billing
system which helps into increase the customer satisfaction rate. It has study of the market
segmentation in which it shows that the firm have really efficient market segmentation. In which
it can also use the Psycho-graphic market segmentation to make it better
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REFERENCES
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manufacturing, and marketing. Bloomsbury Publishing USA.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
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De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Felix, R., Rauschnabel, P. A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research. 70. pp.118-126.
Goldberg, M.E., Fishbein, M. and Middlestadt, S. E., 2018. Social marketing: Theoretical and
practical perspectives. Psychology Press.
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for concern, and proposed remedies. Journal of the Academy of Marketing Science. 44(1).
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West, D. C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
online
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