Marketing Essentials: A Comprehensive Report on Marks & Spencer

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MARKETING ESSENTIALS
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Table of Contents
Introduction...................................................................................................................... 2
LO1.................................................................................................................................. 4
LO2.................................................................................................................................. 6
LO3.................................................................................................................................. 9
Conclusion..................................................................................................................... 15
Reference list................................................................................................................. 16
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Introduction
Marketing is a major management function that helps goods to move from production
concept to users. It refers as coordination of four parts including identification products,
selection of distribution channels, determination of price, and execution of promotional
strategies. Marketing is based on another concept of ensuring customer satisfaction and
meeting their needs. It differs from selling, as it adds value and maintains a long-term
relationship. Organisations need to monitor marketing performance and evaluate
marketing actions to serve consumers with better service. The study on marketing will
be carried out based on examples of Marks & Spencer’s (M&S). M&S is a renowned
retailer with headquarter in London. It is currently serving 959 stores including 615-food
stores.Net income and operating income of M&S as of 2019 are
£37.3 million and £601.0 million (Corporate.marksandspencer.com, 2019). The paper
shall explain how marketing department of M&S performs several roles. It shall compare
marketing mix elements of M&S with Asda. It shall deduce an evidence-based and
coherent marketing plan demonstrating monitoring and evaluating measures.
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LO1
Explain the key roles and responsibilities of the marketing function
Marketing is defined as all the activities that are managed by the organization for
promoting the products and services effectively. The primary function of marketing is to
identify tools and techniques by which organization like Marks and Spencer can
enhance their brand value as well as goodwill in the business market. It has been found
that marketing functions are used in business for doing proper market research, product
plan; strategy management, R&D, promotions, and sales. Here, the primary
responsibilities and roles of the marketing function of M&S are mentioned below:
Develop innovation marketing campaign: Marketing department is entitled to
developing innovative marketing campaigns in order to attract the customers. The main
products that are sold by M&S are food products, fashion products, domestic products,
electronic items, and others (Bowen, 2016). Hence, for promoting these products, the
marketing team of M&S is found to concentrate on advertisements and communication
strategy. For example, it has been found that M&S uses fair and transparent policies
while labelling and promoting products. This enables the customers in creating an
informed choice on the products. The ideas that are used by the marketing team of
M&S are healthy eating and a balanced diet for increasing the customer base. The
marketing team of M&S is using the logo of Well Sunflower on more than its 1200
products for introducing traffic light labelling system.
Develop communication channel: For creating a good public image towards the
organization, the marketing team of M&S is found to focus on the communication
channel largely. This communication channel is developed by the organization for
developing a strong bond with the customers. Moreover, this channel provides the
customers in launching any complaints and grievances against any wrong products
(Beck et al., 2015).In order to develop the communication channel strongly, employees
of the organization those are having marketing background are assigned to check this
marketing function. Moreover, the employees working in the marketing team are
provided training to strengthen their experience level that is important to develop
effective contents for advertisement campaigns.
Effective market research: The marketing team is responsible for doing proper
marketing research that is important for understanding the preferences of the
customers. It is a general fact that customers show interest insensational
advertisements, shocking images, and others. Hence, the marketing team are
responsible for understanding these aspects and identify the different verbal and non-
verbal channel of communication for communicating both online as well as offline
campaigns to the customers.
Sales record: The marketing department is found to keep a timely record on therise
and fall of sales. Based on the information, the members of the team design the product
for reaching the sales target (Keinänen and Kuivalainen, 2015). In addition, according to
marketing research, the marketing team of M&S is able to understand the peak season
for the products. This helps them to set the discounts and offers for the products to
increase the sales figure of the company.
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From the analysis of responsibilities and roles of marketing functions, it can be said that
M&S is able to develop its marketing approaches effective that is helping them to grow
their customer base and popularity in the market.
Explain how roles and responsibilities of marketing relate to the wider
organizational context
Different departments present in the organization like M&S focuses on fulfilling the
organizational activities. However, at some point in time, all these departments are
interrelated with each other that help the organization to meet the marketing objective
effectively. Different ways by which departments of M&S influence others for gaining
more sales are mentioned below:
Finance department: The Accounts section of the organization is entitled for informing
other departments about the budget that requires to be spending in the business. In this
context, finance head provides the actual budget to the marketing department that helps
them in developing marketing campaigns. In M&S, it has been observed that the finance
department is assigned to manage the M&S department and protect the profits of the
business (Careers.marksandspencer.com, 2019). Moreover, this department is
appointed to develop new ways of delivering financial improvements.
Human resource department: Apart from another department like operation,
marketing needs a huge number of staffs for fulfilling the essential requirements of the
organization. Marketing manager coordinate with the HR manager of M&S for bringing
all staffs together those are having a various experience level. As it is found that
organization focuses on developing online advertisements, the head of human resource
focuses on providing training on increasing creative skills and advertisement
knowledge.
Research and development department: It has been found that the marketing
department relies on R&D for improving the product quality largely. R&D prepares
reports on the new product and handover to the marketing and sales subordinates that
are going to be launched in the market for explaining the key benefits to the customers
(Najafi-Tavani et al., 2016). For example, R&D conducts qualitative and quantitative
research fora better understanding of the customer’s demands. This enables the
marketing department to analyze the specific needs of marketing campaigns for gaining
a positive appeal in front of the customers.
Information technology department: The IT department of M&S is responsible for
creating a technology-operating model in order to aid the marketing department to
develop easy marketing tactics. For example, the IT department of M&S has developed
new technology transformation program for improving the customer experience
largely (Corporate.marksandspencer.com, 2019). With the introduction of this
technology, the interrelationship between the IT department and the marketing
department has become strong.
Operation department: Operations department of the organization produce products
and services as per its demand in the market. It has been found that operation
department is responsible for keeping a balance among the products in order to assists
the marketing team of M&S to develop advertisements within the provided time-period.
This helps the organization to fulfil the demands of customers as per the strength of the
organization.
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Analyze the roles and responsibilities of marketing in the context of the
marketing environment
Marketing environment of M&S is found to associate with both internal and external
forces for sustaining in the retail market for a long time. Moreover, these factors enable
the organization todevelop a strong relationship in order to address the needs of the
customers. The main factors that are present in the marketing environment of M&S are
mentioned below:
Competitors: The main competitors of M&S are Asda, Tesco, Sainsbury, and others.
The marketing department of the company puts effort on researching on the marketing
campaigns that these competing firms use in order to develop their marketing approach.
Government: UK government is found to implement new laws and legislation such as
Companies Act, Employment law, Competition Act and others that are followed by
M&S for gaining a positive image. All these laws are developed by the Government in
order to ensure that companies do not perform any unethical activities in their business
operation. In this context, the marketing team ensures that the organization is complying
these laws for raising the standard of business.
Shareholders: Gaining more number of shareholders in the business of M&S is
important for raising the revenue and profit levels. Marketing department tries to
improve the revenue of the company in order to gain more shareholders in the business
(Krush et al., 2015). This is because; more the number of shareholders, more the
company are able to win the trust of the potential investors that is beneficial for the groth
of company.
Customers: The Company is found to perform high-ended business activities for
gaining attention from the targeted audiences. The marketing team of M&S puts effort
on developing a direct relationship with the customers. The company is found to target
middle-income customers.
Suppliers: Suppliers are the main factor that helps in gaining the raw materials for the
product manufacturing process (Martin and Javalgi, 2016).In M&S, suppliers are having
an essential role in increasing the productivity level of the business. It has been found
that losing suppliers can create a negative impact on the production flow that might
further result in business loss.
Analyze the significance of interrelationships between marketing and other
functional units of the organization
There is an interrelationship among different discussed departments in the organization.
It is found that employee relation is developed among managerial and employee heads.
One interrelationship is developed, a high degree of efficiency is created where one
department helps the another for implementing the tasks effectively (Feng et al., 2015).
Apart from this, managers of the organization are found to be aware about the forms of
communication that takes place in the organization. In M&S, it has been observed that
managerial heads and Director of the company present their opinion in front of every
department, hence, this helps them to remain alert about all the marketing functions. In
M&S, it has been found that marketing team is having most significant relationship with
the finance department. This is because, account section helps the business in
analysing the budget and forecast the sales in an effective manner. This further helps
the marketing team to develop their plan and tactics as per the allocated budget and
cash resources that have in their organization.
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LO2
Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives.
7ps of marketing mix is the technique that helps the company to review the marketing
tactics and define the important issues that can affect in the marketing process. A
detailed comparison of 7ps of marketing mix between M&S and one of its major
competitors, Asda has been provided below that are used for achieving business
objectives.
Figure 1: 7 element of marketing mix
(Source: Mallik and Farhan, 2018)
Comparison of 7
element of marketing
mix
Marks and Spencer Asda
Product The company is found to believe in
selling eco-friendly goods and
products by offering diversified
product portfolio that consists of
fashion products, beauty products,
home products, food products, and
others. Hence, it can be said the
product range of the company is
quite big.
On the contrary, Asda is
found to sell retain
products where financial
services and EE network
services are most
popular. Main products of
the company aregrocery
item, clothing products,
electronics products.
However, they are mostly
focused on the
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electronics products
more.
Price Marks and Spencer follow a
competitive pricing strategy for
selling the product portfolio. This
strategy is used by the
organization because they face
huge competition from the online
retailers.
On the other hand, Asda
follows low pricing
strategy to sell the huge
volume of products. In
this case, it is found that
Asda is able to gain huge
sales by using this
pricing strategy.
Place This company is having
international presence along with
1000 stores that are operating
businesses in 50 countries. The
company also have developed
international delivery for only
limited products.
The company is having
presence in different
regionswith more than
100 stores in non-food
sectors. The company
has joined with Wal-Mart
and developed sales
area of 90000 square
feet.
Promotion M&S is found to use TV ads, print
media, and mobile ads for
promoting its brand products. The
company conduct loyalty program
such as “Sparks” for giving special
discounts to the customers
Asda is found to use
innovative promotional
strategies to meet their
business objective.
Promotions such as
“Extra Special,” “Leith’s
Cookery school of fine
food” and others are
used for this purpose.
People Total employee strength of the
company is more than 83000
where company mostly pays
attention to employees so that
they can meet the business
objectives effectively
(corporate.marksandspencer.com,
2019).
Asda is focused on about
180000 employees and
millions of customers
(Thisismoney.co.uk,
2019). They use people
strategy for providing
quality customer services
to customers.
Process The company, M&S is focused
more on traditional process where
customers are welcomed in the
stores for purchasing products.
However, they have recently
concentrated on online process by
developing e-commerce site.
The company is using
both traditional and
online process for
operating its business
successfully. Asda is
focused on more
business
Physical evidence M&S’s traditional stores, tagline,
logo, company website, and
presence in ecommerce platforms
Asda’s supermarket
division consisting of
small store segments are
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are its physical evidence. Its
tagline ‘quality worth every penny’
shows how consumers can get
value against price they paid for
each product
(Corporate.marksandspencer.com,
2019). Its website is much
systematic and consumers can get
valuable information from it. M&S
is able to boost its brand value
through creative logo and slogan.
its main evidence. Its
tagline “Save Money,
Live Better” promotes its
low priced and high
quality products
(Thisismoney.co.uk,
2019). Asda’s website
helps customers to get
all product details and
their price. These
evidence improves
visibility of Asda in retail
market and promotes
awareness about its
innovation; thus helping
in meeting business
objectives
Table 1: Comparison of marketing mix
(Source: Created by learner)
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LO3
Produce and evaluate a basic marketing plan for an organisation.
Executive Summary
A coherent plan has made to increase sales, ROI, and operating profit of M&S’s fashion
products segment. The plan considered situational analysis to know about its
competitors, internal, and external environment. It has developed a marketing budget
and decided control measures.
Company Background
M&S is a unique firm with a great brand value that attracts people across the globe. It
operates the food, home accessories, clothing, and other retail accessories applying its
own brand value and model. It sells products from 20 websites and 1400 stores. It has
employed 81,000 people to supply products around 32 million buyers. It is promised to
innovation and transformation by offering lucrative and sustained growth to investors,
communities, and colleagues. Group revenue generated by M&S in 2018 is £10.7
billion, which was a 0.7% increase as compared to the previous year. Group profit was
£580.9 million and this was a decrease of 5.4%. Revenue from food segment has
increased at 3.9% but revenue from clothing segment declined to 1.4%. Thus,
marketing plan for clothing segment will be produced to ensure a high revenue and
market share in upcoming financial year.
Objective, vision, and mission
M&S will meet following objectives through this marketing plan.
 To increase operating profit up to 15%
 To gain return on investment of 20%
 To gain a 12% increase in market share
Mission of M&S is to build core values of innovation, customer service, product
development, and quality. Its vision is to maintain a standard in areas of customer
experience, community and environment development, and improve working
environment of workers.
Situational Analysis
SWOT
Strength
 The brand value is high, as
consumers find one-stop solutions
here.
 It offers varieties of products in
every store from last 40 years.
Weakness
 The major drawback is non-trendy
and out-fashioned products in
stores.
 M&S faces large competition from
Morrison, Tesco, Iceland, Asda, and
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 It operates more than 600 stores
within the UK and 40 stores outside
UK (Businessteacher.org.uk, 2019).
 Sales and market share of M&S
increase over last decades because
of variant products.
 It is much popular in high street
fashion because of several brands
in men and women clothing.
Aldi (Businessteacher.org.uk,
2019).
 It has a backdrop of using
advanced and automated
technologies, which increase its
cost and reduce efficiency.
Opportunities
 FDI opportunities and globalisation
give M&S to establish new stores
across emerging nations.
 New consumer segments are
emerging in recent years by giving
the opportunity of spreading
business.
Threat
 Brexit deal may increase
production, supply chain and
another cost retail business
operation.
 Tesco Plc and Sainsbury Plc are
doing business through new
segments such as Tesco express
and Sainsbury local. However, M&S
is relying operation through mega
stores, which can leave it behind
the competition.
Table 2: SWOT Analysis
(Source: Generated by learner)
PESTLE
Factors Impact
Political Strong democratic system of UK gives
M&S with advantages of good
governance. If Brexit deal is approved, the
government shall bring new reforms in the
retail sector, which can be costlier for M&S
(Dhingra et al., 2016). The firm may not
get access to competitiveness and
benefits after UK’s decision to depart the
EU.
Economic The UK is one of the strongest and largest
economies in terms of standard of living
and social welfare. It has the highest GDP
per capita among EU nations (Bell et al.,
2014). M&S utilises the advantage of a
good standard of living and faces a few
hurdles relating to working capital
(Marketline.com, 2019). The country is
experiencing inflation due to rise in
property prices and this shall increase
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