Marketing Case Study: Marks and Spencer and Zara Marketing Strategies

This case study examines the marketing strategies of Marks and Spencer (M&S) and Zara, focusing on their use of the marketing mix (7 Ps). The study begins with an introduction to marketing and its importance, particularly in the context of retail. Task 1 delves into the role of marketing within an organization, specifically how the marketing department interrelates with other functional units such as human resources, finance, research and development, sales, operations, customer service, and information technology, using M&S as an example. Task 2 compares the marketing mix elements (7 Ps: Product, Price, Place, Promotion, People, Process, Physical Evidence) employed by both M&S and Zara. The analysis highlights the differences in their approaches to pricing, distribution, and promotion. Task 3 then focuses on developing a marketing plan for Marks and Spencer, outlining key strategies for market analysis, segmentation, targeting, positioning, and the formulation of marketing objectives. The conclusion summarizes the key findings, emphasizing the importance of adapting marketing strategies to meet consumer needs and achieve organizational goals. References are provided for further research.

CASE STUDY
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Determine the role of marketing and how it interrelates with different functional units of the
organisation.................................................................................................................................3
TASK 2............................................................................................................................................6
Determine and compare different ways which Marks and spender and Zara uses elements of
marketing mix (7 P's)..................................................................................................................6
TASK 3 ...........................................................................................................................................9
Develop marketing plan of Marks and Spencer .........................................................................9
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Marketing is an important element to promote its products and services to the target
customers. Marketing involves communication of organisational objectives the target customers.
Marketing involves different activities like advertising, promotion, packaging, pricing and other
related activities which involves transfer of good and services from the organisation to the final
prospects. Marketing is an core function of the organization engage with the target customers.
Thus, it is a process of building a profitable relationship with target customer by rendering
effective marketing offering (Athanasopoulou, Giovanis and Avlonitis, 2015). Marks and
Spencer is an UK based organisation which is a giant retailer of apparels and homeware
acquiring large number of customers base and market share. Its is a multinational retailer of
having store over 57 countries. The product range of Marks and Spencer revolves around
rendering quality food, apparel, marks and Spencer bank, marks and Spencer energy energy
plant. This report cover the role of marketing and interrelation with other functional units of the
organisation, compare ways in which organisation uses element of marketing mix to achieve
organisational objectives, develop marketing plan.
TASK 1
Determine the role of marketing and how it interrelates with different functional units of the
organisation
Marketing department coordinates with other functional units. Marketing is a process
which involves different organisational activities for transfer of goods and services from the
manufacturing units to target customers. Marketing helps is in engaging with the target customer
to build a profitable relationship with the customers (Baker and Hart, 2016). It is a crucial for
conveying and communication of organisation objectives to the final prospects. It involves
interrelation with different department in an organisation to carry functioning of the business.
Before preparing a marketing plan it is important to coordinate with different functional units. It
helps in taking accumulated decisions and gather information from different functional units to
develop marketing plan. It is important to analyse target customer it is important to analyse
customer behaviour. To develop effective marketing campaign, it is necessary to gather
information of from different department. Marketing department of Marks and Spencer
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coordinates with different departments in an organisation for delivering value to the customers.
The interrelation of marketing department with other functional department are discussed below:
Marketing and Human resource department
Human capital is an important element which works like building block in any
organisation. Human resource manager hires and manages the human workforce in the
organisation. Coordination of marketing department with human resource department in Marks
and Spencer render to accomplish the objectives of workforce management. Human resource
department in Marks and Spencer retains its talented workforce in the organisation for human
capital management and acquisition. Marketing department set the objectives to promote its
goods and services to the target customers (Bang, Joshi and Singh, 2016). Whereas, marketing
department of Marks and Spencer conducts different function right from production to delivering
products and services to the final prospects. For carrying all these activities it needs efficient
workforce to mange the functions. Highly efficient workforce is required to carry to marketing
objectives. Human resource managers trains and render skills development programmes to
ensure effective workforce management. Human resource department recruits talented workforce
to carry organisational functioning and implement strategic decisions by the marketing
department. Human resource department renders training and development activities to the
employees in order to achieve efficient of human capital.
Marketing and finance department
Finance department is responsible for allocation of funds to in the workplace. Finance
manager evaluates the cost incurred, revenue generated, sales, funds needed, prepares financial
statements of company which are the important aspects for determining marketing plan. It
involves different process to allocate, use and determine the availability of funds in the
organisation. Finance manager makes financial statements of the business transaction and
responsible to formulate strategic decisions to maintain the financial stability of the business.
Financial report are required to evaluate the changes in prices, financial stability of the business
in the market which helps to evaluate effective marketing plan (Baxi, Panda and Karani, 2016).
Marketing department in Marks and Spencer coordinates with finance department evaluate funds
required for different marketing activities. For the proper functioning of the marketing activities
it is essential for timely availability and allocation of funds which is done by the finance
department.
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Marketing and research & development department
Research and development department is responsible to generating product innovative
ideas by studying current market trend. It performs functions implement effective marketing
strategies and policies to develop market offering. Marketing department in Marks and Spencer
coordinates with research and development department to formulate the marketing plans and
objectives to acquire the customer segment. Research and development in Marks and Spencer
conducts market research for analysing the current market trend and demand. Market research
determines the availability of new inputs and suppliers in market which helps to certain the new
product development ideas for developing new product. It thus formulates marketing objectives
for the organisation and delegates plans to the marketing department. Marketing department thus
implements the plans and policies by the research and development department in accordance to
the organisational objectives (Chanthinok, Ussahawanitichakit and Jhundra-indra, 2015).
Marketing department and sales department
Sales department plays a crucial role to determine profitability and sustainability of the
organisation in the market. It is responsible for advertising, sales promotion, calculation of sales
figure, packaging and market research for analysing the fluctuation of sales hype and drop.
Marketing department collaborates with sales department in order to measure the effectiveness of
market offering. Sales department in Marks and Spencer conducts market survey to analyse
statistics of the sales figure by the products an services rendered by the company. It helps to
analyse effectiveness of the marketing strategies used by the company that how far it has able to
build the market positioning. On the other hand, marketing department takes corrective measures
for inefficiencies in marketing campaign and formulates policies to promotes its goods services
to the target customers.
Operational department and marketing department
Operational department is responsible for conducting daily business activities to manage
and control business functions. Marketing department coordinates with operational department
in Marks and Spencer to ensure all business activities in the organisation are operating in
accordance to the pre determined objectives (Chen and et.al., 2018). Marketing department
facilitates operational department to produce and manufacture goods and services in accordance
to the objectives set by marketing objectives. It helps to evaluate the volume of production
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requirements, quality and product design and product development to render services which
satisfies the needs and wants of consumers.
Customer service departments and marketing department
Marketing department in Marks and Spencer coordinates with customer services
department to render customer oriented services. Customer services department interacts with the
target customers about post purchase experience. It collects information from the target
customers about the consumer behaviour and response to the market offering of the company.
Marketing department analyses the information to measure the effectiveness of products and
services in the market. It helps in evaluating that how far market offering has attained customer
satisfaction.
Information technology and marketing department
With the increase in technological advancement, information technology department play
a important role to implement modern and current technology in the organisation. Marketing
department conducts market research to analyse the current technological needs of the
organisation (Davis, 2017). Marks and Spencer adopt technologies in the organisation as
artificial intelligence, augment reality, cloud technologies in order to achieve the efficiencies of
the work.
Roles and responsibilities of marketing department in Marks and Spencer are discussed below:
Defining the brand
It involves defining the brand of what the company delivers and what are the main
motive of delivering the value to the consumers. It involves the objectives and the reasons behind
delivering the value to the customers. Marketing department in marks and Spencer evaluates the
exact market offering which satisfies the consumer needs and wants and achieve business
objectives. It defines the objective, purpose, uses and benefits to the end customers about the
products and services offered by the company.
Conducting marketing campaign
It involves conducting marketing campaigns in order to promote the goods and services
to the target customers. The main objective of the marketing department is to promote the goods
and services of the company to the end customers. Marketing department in Marks and Spencer
conducts marketing campaign in order to promote the market offerings to rthe target customers.
Internal communication
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Internal communication is an important aspects which is needed to coordinate different
business activities and manage the performances and objectives of the organisation. Marketing
department in Marks and Spencer promotes internal a communication in order to evaluate the job
performed by each department and manage different business functions in the most effective
manner.
TASK 2
Determine and compare different ways which Marks and spender and Zara uses elements of
marketing mix (7 P's)
Basis Marks and Spencer Zara
Product Marks and Spencer is a multinational
retailer delivering quality food
products, homeware, huge range of
apparels, marks and Spencer banks
which offers financial facilities of
credit facilities and insurance
facilities, Marks and Spencer services
which promotes renewable sources to
safe electricity.
Zara is retailer delivering value products
and services ranging in product lines of
fashion clothings, footwear, beauty,
perfumes, accessories. It is famously
known for its quality products and
services to its customers, retaining large
customer base and market share.
Prices Effective pricing strategies leads to
maintain market demand and supply.
Pricing strategies used by Marks and
Spencer price skimming or premium
pricing strategy, which enables to set
high prices to cover the cost incurred
in providing quality services.
Pricing strategy used by Zara involves
market based pricing or low pricing
strategy to ensure the affordability of
products and services to its customer
segment (Gillespie, 2015). This pricing
strategy used by Zara helps in capturing
market share and build strong customer
base. Zara earns profitability by setting
low prices which increases the sales
margin through its market offerings.
Places This element of marketing mix cover Zara is a multinational brand which
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the locations covered by Marks and
Spencer. Marks and Spencer is a
multinational brand over 57 countries
and stores across worldwide (Deepak,
and Jeyakumar, 2019). Marks and
Spencer has online website which
offer services to people just the way
physical units do. Online websites are
been accessed and authorised by the
customer support which offers variety
services to people . Customer can take
online services so that people from
different location can access the
services rendered by the company.
covers 1200 stores worldwide, apart
from the physical units it render online
services where customers can book
items via online platforms. Through
online platforms customers can
communicate and interact with the
organisation, they can books their
desired products via online platforms
and take services offered by the
company. They have customer care
units which take responsibility for
taking consumer complaints and
responses to improve customer
experience.
Promotion Marks and Spencer uses different
promotional tools to advertise its
products and services to its target
customers. It uses print media, social
media platforms like Facebook,
Instagram and other commercial
advertisement where it communicates
the marketing message of the
organisation.
Zara uses social media marketing, print
media, outdoor marketing and online
marketing. The social media platforms
used by Zara includes Instagram,
Facebook, YouTube, LinkedIn to
promote its goods and services to the
target customers. It post about new
product in the social media accounts
which helps in attracts
customers(Kerrigan, F., 2017). Outdoor
marketing such as hoardings to attract
the customer for great deals, print media
like brochures, online media email
marketing, social media using all social
media platforms.
People Marks and Spencer recruits employees Zara retains talented employees who are
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who are highly loyal and enthusiast
(Hadjikhani, Lee and Park, 2016).
They also have customer care units to
collect regular feedback from target
customers to improve customer
experiences and services. Employees
who are highly efficient are given
monthly appraisals to achieve
performance productivity. Employees
are given incentives to motivate and
encourage them to work effectively.
Great customer services helps to build
market goodwill and brand image in
the market.
highly efficient for accomplishing
organisational objectives. They keep
monthly grading system in order
appraise the employees so that they
work more efficiently.
Process The process involved in rendering the
services to final consumer includes
target segmentation, identifying needs
and wants of the target customers,
setting organisational objectives and
strategies, developing services to
render to the final customers,
establishing financial budget,
preparing marketing plan, rendering
services and performing follow up to
evaluate to evaluate the efficiency of
the task accomplished (Jaworski,
2018). It also involves accumulating
customer feedback in order to measure
the performance of the organisation.
Zara renders services which includes
innovative marketing offering. Process
includes all the procedures which helps
to deliver services to customers. It
renders innovative services and collects
valuable customer feedback.
Physical Physical existence here means the Zara has physical units across
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existence physical outlet of the organisation,
where the customer can physically
visit the outlet. Marks and Spencer has
more 1000 stores countries doing
business in 57 countries. Physical
outlets helps to build strong customer
reliability and goodwill in the market
and in minds of customers. Employee
are also asked to dress in uniforms to
develop the professional image and
follow ethical code of business.
worldwide, which facilitates people take
services easily from different accessible
store localities.
TASK 3
Develop marketing plan of Marks and Spencer
EXECUTIVE SUMMARY
Marks and Spencer is a multinational retailer selling its products and services to the
consumer market. For expanding its product line, it has come up with new market offering to
attracts the other pertaining customer segment (Kotler, 2016). The marketing plan cover the
different situational analysis tools of internal and external business. Analysing the business
environment gives a basis to analyse the effectiveness of the market offering in the marketplace.
Developing effective marketing plans helps to formulate organisational objectives. The new
product line expanded by Marks and Spencer includes home décor equipment which will helps to
attain strong consumer segment and profit goals of the organisation.
INTRODUCTION
Marketing plan is a framework of the business objectives or deciding in advance the
strategies that have to be implemented for the growth and stability of the business. Marks and
Spencer is an international retailer based out of UK, it deals in trading of consumer durable
products like clothing, homeware, food items. It captures a large share of consumer market and
profit goals. In accordance to new marketing policies it builds new product development strategy
which involves stretching its product line to home décor (Malhotra, Nunan and Birks, 2017). For
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accomplishing organisational objectives it has build an effective marketing plan. Developing
new product line of home decors helps to expand customer base where it helps profitability in the
organisation. Marks and Spencer recruit interior designer to develop innovative designs to attract
more customer. For promoting its new product line it uses different promotional tools in order to
influence the target customers and acquire market share and stability.
SMART objectives
For expanding the business worldwide and introducing cost effective market offerings in
2 months which will increase the profit by 25%.
SITUATION ANALYSIS
It involves analysing internal and external factors which affects the organisational goals.
It also involves the market research of the different factors like customer taste and preference,
the market demand etc. there are many methods to analyse the internal and external environment
of the organisation the two methods covered in the discussion are SWOT analysis and poster's
analysis. Evaluating the business environment is crucial as it gives a basis for the company to
analyse whether products and services will be effective in the market or not. Business
environment is full of externalities and challenges which act as threats to the organisation.
Organisation should implements take different measures in order to deal with the external
environment (McDonald and Wilson, 2016). Different measures used by Marks and Spencer to
evaluating external business environment are as:
SWOT analysis
Swot analysis is used to evaluate the various factors which affects the organisation, it has four
aspects strengths, weaknesses, opportunities and threats. By these four major aspects, business
environment is been analysed which helps to conduct business functioning. These factors are as
follows:
 Strengths
Strength of the organisation refers to the areas where the organisation is performing well, Marks
and Spencer can evaluate the internal forces like highly efficient workforce, effective marketing
strategies and other which fulfils to manage organisational objectives (Palmatier and Crecelius,
2019). Strengths of Marks and Spencer are discussed below:
Brand image
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Marks and Spencer is known for rendering quality services to its customers. With its known
brand image of quality products and services it captures huge international market share.
Variety of product lines
Marks and Spencer deals in variety of product lines including food, clothings, banking sector,
energy plant. With its different variety of product range it achieves expansion of the business in
the market.
 Weakness
These factors reflects the grey areas of the any business. Marks and Spencer can evaluate the
these factors which are affects operation of the business activities, it involves lack of resources,
procedures, inefficient internal management, structure or human capital which are not capable
for meeting the organisational objectives. These forces should be carefully scrutinised to
implement changes to deal with shortcomings (Park, 2020).Weakness of Marks and Spencer are
discussed below:
High cost
For conducting the business functions it generates huge cost as most of the activities in marks
and Spencer still uses the manual process which consumes a whole lot of time. Manual process
not only takes time but also reduces the efficiency and accuracy of completing task.
 Opportunities
Opportunities involves the external factors which contribute for the well being of the
organisation. Business opportunities are as favourable credit policies, economic welfare, increase
in sales due seasonal factors and other forces which positivity contributes to organisational
productivity. Marks and Spencer should identify such factors which contributes to organisational
profitability and enhance productivity (Rana and et.al., 2020). Opportunities of Marks and
Spencer are discussed below:
International business
The major objective for Marks and Spencer involves its global expansion of business. It helps to
acquire international customer with large customer segment.
Online store
Marks and Spencer have online stores which acts a major opportunity to the company as it
connects huge number of target market with just a click. Where people are unable to reach
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