Comprehensive Marketing Report: Marks and Spencer Analysis

This report offers a detailed examination of Marks and Spencer's marketing strategies. It begins with an introduction to marketing and then delves into a marketing audit using PESTLE and SWOT analyses to assess the macro-environment and internal strengths and weaknesses. The report also explores market segmentation, including demographic, geographic, behavioral, and psychographic approaches, and discusses the benefits and drawbacks of segmentation. Market research, employing Porter's Five Forces model, is analyzed to understand the competitive landscape. Finally, the report covers consumer buying behavior, providing insights into how consumers make purchasing decisions. The report concludes with recommendations and a summary of the findings, providing a comprehensive overview of M&S's marketing practices.

Introduction to Marketing
Assessment

Table of Contents
1 INTRODUCTION........................................................................................................................3
2 MAIN BODY................................................................................................................................3
Marketing Audit..........................................................................................................................3
Marketing Segmentation.............................................................................................................5
Marketing Research....................................................................................................................7
Consumer Buying Behaviour......................................................................................................8
Marketing Strategies...................................................................................................................9
3 RECOMMENDATION..............................................................................................................10
4 CONCLUSION...........................................................................................................................10
REFERENCES..............................................................................................................................11

1 INTRODUCTION
Marketing is defined as activities which is undertaken by organisation in order to
promote selling and buying of goods and services (Marketing, 2019). It includes advertising,
delivering products to users, business or society. Similarly, marketing strategy is defined as
forward looking, long term approach to plan for achieving sustainable competitive advantages.
The organisation given for assignment is Marks and Spencer which was established at United
Kingdom in 1884. It is retail organisation dealing in clothing, food products, home products and
others. This reports various marketing audit, strategy, research, segmentation and consumer
buying behaviour of Marks and Spencer for running their business in competitive market.
2 MAIN BODY
Marketing Audit
It is defined as systematic, evaluation, analysis, comprehensive and interpretation of
business marketing environment. This includes internal & external, objectives, goals, principles,
strategies in order to ascertain areas of issues, opportunities and recommendation for enhancing
performance organisation's marketing performance (Frösén and et. al., 2013). This is conducted
by third person who is not member of firm. The different components of marketing audit
includes macro environment, task environment, marketing strategy, organisation, system,
productivity, function. It should be based on comprehensive, independent, systematic and
periodical. The marketing audit of Marks and Spencer has conducted with helps of PESTLE and
SWOT analysis which are described below:
PESTLE Analysis
This is defined as tool that is used for monitoring and analysis of macro environmental
factors which has impacted performance of organisation. There are six elements of PESTLE
analysis which are as follows:
Political Factors- It includes government policy, foreign trade, tax policy and others
which impact business and their performance. Marks and Spencer has to follow rules and
regulations of government such as Health and Safety act to provide high quality products to
consumers. The free trade agreements has leads to decline in sourcing cost which is positive
impact for respective organisation. While performing business at international market, cost is

high which is negative impact for business (Pestle Analysis On Marks Spencer Marketing Essay,
2019).
Economic Factors- This factors includes inflation rate, interest rate, inflation rate and
others. Marks and Spencer has affected through discounted pricing which is performed by
competitors. The respective organisation has faced problem in selling product as they only focus
on quality where as consumer want both quality with high value. This has impacted in positive
and negative way where falling in prices of oil leads to affect store and increase in value of dollar
create advantage to organisation.
Social Factors- There are different social factors such as income, growth, age, career,
health and safety and others (Gichangi and et. al., 2012). With change in demand of consumers
create advantage to M&S for creating new products and services. This helps in generating high
profits and brand value in competitive market. Sometimes, it also leads to failure of business in
case if they don't like products and services provided by respective organisation.
Technology Factors- The factors of technology includes innovation, research and
development, automation and so on. Marks and Spencer has good network for online and social
media for creating awareness and providing products to consumers (PESTLE Analysis of Marks
and Spencer (M&S), 2017). If it follow modern technology then it can produce maximum which
helps in generating profits. Similarly, if respective organisation does not follow technology in
their business then leads to failure.
Legal Factors- There are various legal laws which has to be followed by Marks and
Spencer such as health and safety, copyright, patent, employment, consumer protection and
others. Respective organisation has to follow various legislations in order to protect health and
safety of consumers and employees. If they follow such laws in business then they can create
advantage in market. This helps in creating goodwill and brand value in competitive market. The
following of unethical practices such as bad packing, wrong information about products leads to
failure of business.
Environment Factors- This includes different factors such as raw materials, carbon
footprint, climate, weather. Marks and Spencer has developed green policy that is called Plan A
for safety of environment. It is also focusing on becoming carbon neutral, ethical trading, zero
waste to landfill and others. If it follows CSR activities and other for safety of environment then

it can create positive image in market. In case if it does not follow such law and harm
environment then it negative image in minds of consumers.
SWOT Analysis
It is defined as strategic planning technique which is used by managers for knowing
about internal analysis in terms of strengths, weaknesses, opportunities and threats (Isaenko and
Tarasov, 2014). SWOT analysis of Marks and Spencer has described below:
Strengths Weaknesses
 Marks and Spencer is offering latest
trends products and services to their
consumers for fulfilment of their
requirements.
 It is also involved highly in corporate
social responsibility to enhance their
brand value and goodwill in
competitive market.
 Marks and Spencer is focusing on
enhancement of customer experience.
 It rely on UK market which leads to
decline in market share from local
market (Marks and Spencer SWOT &
PESTLE Analysis, 2019).
 The confidence of consumer has loss
due to frequent product recalls.
Opportunities Threats
 It has an opportunity to reshape their
clothing segment for consumers.
 Marks and Spencer has an opportunity
to invest in Asian market to enhance
market share.
 There is change in trends in clothing
segment which is threat for Marks and
Spencer to survive and sustain in
market.
 There are main competitors of M&S
such as Gap, Tommy Hilfiger, UCB,
Zara.
These both PESTLE and SWOT analysis helps in knowing about market condition of
Marks and Spencer that helps for marketing audit for better results.

Marketing Segmentation
This is defined as procedure which divide market of potential consumers into various
segments, groups that is based on characteristics of people such as similar needs, locations,
interests and others (Market Segmentation, 2019). This helps marketers for personalising
marketing campaign in order to provide products and services. The market segmentation
provides various benefits to Marks and Spencer for better outcomes. This helps in understanding
market better and identification of new marketplace for launching products. It also assist in
market expansion and customer retention. There are disadvantages where multiple segmentation
leads to rise in cost, selection of wrong segment collapse entire business. Market segmentation of
Marks and Spencer is divided into four categories which are as follows:
Demographic Segmentation- The market is segmented on demographic factors such as
income, gender, educational qualification, family members, status (Louviere and et. al., 2013).
Marks and Spencer has segmented market on basis of income, age, gender as they design
products accordingly. They are offering goods to men, women, kids of all age groups. It helps in
forming homogeneous group for products and services. While designing products by respective
organisation has to consider all those factors to achieve success.
Geographic Segmentation- This is defined as segmentation where population or
consumers are divided into village, postal code, city, country, state, region. It assist in forming
clusters that is based on location, topography. Marks and Spencer has segmented their consumers
on basis of country as it has headquarter at United Kingdom and covered as neighbouring places.
This helps in knowing about consumers requirements and producing accordingly for
achievement of goal and objectives.
Behavioural Segmentation- It is defined as segmentation where companies divide
market on basis of consumer behaviour or pattern of usage (Lyashenko and et. al., 2017). In
order to segment market, they have to consider past behaviour of consumers and users. For
example, young people prefer trendy and fashionable cloths for wearing. Here, Marks and
Spencer has also divided market into behavioural segmentation where they have divided clothes
into various segmentation as per usage pattern and required by consumers for sustaining and
growing at market.
Psychographic Segmentation- This is defined as segmentation which is done on basis of
personality of individual, their lifestyle, social status and characteristics. It is similar to

behavioural segmentation. For example, if consumer want fashionable and trendy clothes then
they can visit Marks and Spencer store to fulfils their requirements. Similarly, if customer luxury
product then also they can go to M&S store for buying of such goods.
Therefore, Marks and Spencer consider all the above aspects while segmenting market
for their consumers which helps them to achieve goal and objectives in effective and efficient
manner.
Marketing Research
It is defined as procedure in order to analyse, gather, collect and interpret information
about product, service that is offered in market to sale to their consumers, research into
characteristics, needs, location and spending habits of users (Market Research, 2019). This is
also known as systematic analysis, collection and interpretation of data for marketing conditions.
It assist in finding out change in behaviour of consumers which leads to change in elements of
marketing mix. This can be done through primary and secondary data which provide information
to business for carrying out their activities and operations in proper manner. Market research
provides various benefits to business in terms of knowing about consumer requirements, earning
of profits and others. Similarly, apart from advantages, there are some disadvantages such as cost
increments, time consuming. Marks and Spencer has used Porter's Five Force Model for
marketing research so that they can know about their buyer, consumer, competitors and so on.
Porter's Five Force Model
This is the model which identify structure of industry and competition level of particular
industry. There are five elements of such model which are described in context of Marks and
Spencer. They are as follows:
Bargaining Power of Buyer- This can impact functions and operation of organisation. In
respect of Marks and Spencer which is running business in clothing segment has high bargaining
power where there are different clothing companies such as Next Plc, John Lewis and TESCO.
They all provide high quality products which leads buyer to switch easily to other brand and
products (STRATEGIC MANAGEMENT AND LEADERSHIP, 2019).
Bargaining Power of Supplier- It is considered as power where supplier provide low
quality products and charges high prices (Malhotra and Malhotra, 2012). M&S has low supplier
power as it has their own manufacturing unit where production is done at workplace. There are

many raw material which they import from suppliers which can be done through maintaining
effective relationship with them.
Threat of Substitute Products- This is defined as situation where companies are
offering similar type of products at workplace. The respective organisation is dealing in retail
sector which has many other industry such as TESCO, ASDA, offering similar type of products
like footwear, clothing and accessories. They have high bargaining power as other organisation
can design same products and offer at low price.
Threats of New Entry- In case of retail industry, entering is difficult as it requires huge
investment and high entry barriers (Morgan, 2012). It is very challenging for new business to
become player such as Marks and Spencer, TESCO, ASDA and others. Here, Marks and Spencer
is regarded as renowned and famous retail outlet at global market. The threats of new entry is
low for M&S because there is no possibility for other to compete with respective organisation.
Industry Rivalry- The competition is very high in retail sector because different
supermarket are offering same type of products such as fashionable, clothing and food. Marks
and Spencer is facing high industry rivalry because of different competitors such as ASDA,
Sainsbury, TESCO, Next Plc and others. This leads company to introduce discounts and offers
on frequent basis so that they can attract their consumers and provide them products and
services.
Consumer Buying Behaviour
This is defined as result of preferences, decisions, attitudes, intentions that is made by
consumers at marketplace before purchasing good and services (Consumer Buying Behaviour,
2019). This study is interdisciplinary subject and drawn from anthropology, sociology and
psychology. There are various factors which impact buying behaviour of consumers which
should be considered by organisation while designing goods and services. Some of elements
which are considered by Marks and Spencer for consumer buying behaviour are as follows:
Cultural Factors
Consumer are moved towards modern tradition so it is very important for M&S to
manufacture or develop products accordingly so that requirements of users can be fulfilled. This
can help them to attract towards products and change of buying behaviour is also changed.
Social Factors

This factor includes reference, family group, role and status of individuals (Nufer, 2013).
The consumer buying behaviour is influence by family and reference group where they are
living in society. For example, if any individuals has purchase products then they easily attract
other for buying of that products which leads to rise in profits and gain of business. Here, Marks
and Spencer has to consider social factors while manufacturing goods.
Personal Factors
It includes age and life cycle, occupation, life style, personality and financial conditions.
The need and demand of consumers changes with change in age, income and so on (Ross and de
Klerk, 2012). For example, if any individual is at age of 20 then there preference is modern bike,
car, education similarly, if age changes from 20 to 60 there they want positive environment, rest
and happiness. As per changes in such factors, consumer buying behaviour also alter
accordingly. Considering all factors manufacturing should be done by respective organisation.
Psychological Factors
This factors includes motivation, perception, attitude and beliefs, experience and learning
and others of individual (4 important Factors that Influence Consumer Behaviour, 2019). If
consumer possess positive attitude towards products then they have high buying behaviour and
vice-versa. Before manufacturing goods, it is very important to know about psychological
behaviour of consumers for products which influence them for buying.
Marketing Strategies
This is defined as overall business plan in order to reach people and turn them towards
consumers of goods and services provided by business. This includes value proposition,
information, marketing messages, target consumer and others (Marketing Strategy, 2019). It is
forward and long term plan for achievement of sustainable competitive advantages. The
marketing strategies of Marks and Spencer is explained with help of 4P's of marketing mix. They
are described below:
Product- M&S is dealing in different products for men, women, kids such as clothing,
footwear, bags, accessories, watches, home décor and furniture. It is also dealing in food and
wine sections. This is selling in international and global market.
Price- The pricing strategy followed by Marks and Spencer is competitive as it is dealing
in high quality goods and services for their consumers. It is facing competition from online stores
and big retail players.

Place- The respective organisation is operating in more than 1000 stores at 50 countries.
In UK it has around 850 stores and in India more than 50 stores are running their activities and
operations. It has their own website where home delivery is done (Marks & Spencer Marketing
Mix (4Ps) Strategy, 2019).
Promotion- M&S has used various promotion strategy such as social media campaign,
print media, television, blogs and others (Tarasova and Shein, 2014). It also provide seasonal
sale to regular and loyal consumers by providing them discounts. Both online and offline tools
are used for promotion.
3 RECOMMENDATION
In order to improve in effective and efficient manner, there are some recommendation
which are provided to Marks and Spencer for improvement that are as follows:
 It is recommended to respective organisation to improve their distribution channel so that
each and every users can get product easily without any problems.
 This is recommended to Marks and Spencer to bring innovation in products and services
so that consumers get attached to brand. It helps in increasing value of brand and
goodwill in market.
These recommendation helps in rising profits and revenue of business that leads to
success and growth at competitive market. The market analysis should be done on regularly basis
which helps in knowing about requirements of consumers and their necessity. Thus, it is
important to focus on user and manufacture products and services accordingly for better
outcomes.
4 CONCLUSION
From above report, it has been concluded that it is very essential for organisation to
analyse various market effectively and efficiently so that production can be done. Here, manager
of marketing department has analysed various elements for knowing about activities and
operations to be conducted at market place. In order to conduct marketing audit, PESTLE and
SWOT analysis has done to know about internal and external factors. There are different factors
which are considered in marketing segmentation and research. For conducting of research at
market, Porter's five force has used. The consumer buying behaviour is influenced through
social, culture and other factors while buying products. It is very important for respective

organisation to analyse marketing strategies through help of 7P's so that manufacturing is
performed accordingly. There are some recommendation which are provided for achievement of
results.

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