Marketing Tools Report: Strategies, Analysis for M&S Business

This report, prepared for a marketing business consultant, analyzes marketing tools and strategies for Mark and Spencer (M&S), a retail sector business. The report begins with an introduction to marketing tools and their importance, followed by a PESTLE and SWOT analysis of M&S, examining political, economic, social, technological, legal, and environmental factors, along with the company's strengths, weaknesses, opportunities, and threats. It then explores the significance of the promotional mix, including advertisement, public relations, and personal selling. The report also covers the stages of new product development, from idea generation to test marketing, and analyzes three types of marketing channels used by M&S. Finally, it discusses the key characteristics of price competition and the effectiveness of various pricing strategies within the enterprise, concluding with a summary of findings and references.

Marketing tools
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 PESTLE and SWOT analysis................................................................................................3
1.2 Importance of promotional mix in production of promotional material................................5
4.1 Three methods of promotion and media used........................................................................5
2.1 Stages of new product development......................................................................................6
2.2 Portfolio analysis incorporating to product life cycle............................................................9
TASK 2............................................................................................................................................9
3.1 Three types of marketing/ distributional channel for consumer which is used by M&S......9
3.2 Role of two intermediaries of the selected enterprise..........................................................10
3.3 Reason for growth of direct marketing................................................................................10
TASK 3..........................................................................................................................................11
5.1 Key characteristics of price competition..............................................................................11
5.2 Effectiveness three pricing strategies...................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing tools are defined as product development and strategies of promotional
elements that assists to enhance profitability and positive results. It also determines actions and
activities that are required for enhancing profits and revenues to operate functions and
operations. Marketing tool in the organisation can use research survey and focus on target group
(Armstrong, Kotler and Brennan, 2015). In this context, present report determines as team leader
of a group of marketing business consultant. Present study is based on retail sector business that
is Mark and Spencer which deals in grocery and many other products. To focus on the present
report, it covers PESTLE and SWOT analysis in marketing planning. Furthermore, it includes
three methods of promotion and media which are used in business. In addition to this, key
characteristics of price competition explains to demonstrate effective functions. At last, it
discusses effectiveness of pricing strategies within the enterprise.
TASK 1
1.1 PESTLE and SWOT analysis
To determine effective results, as a consultant leader need to analyse internal and external
environment need to be analysed to identify impact on operations and functions of M&S.
PESTLE analysis of UK
In the UK market, external factors are highly influences to the functions and operations
of retail sector business. In respect to analyse impact of PESTLE factors, following elements are
considered within the organisation:
 Political factors: Political factors are those elements which made and regulated by
government of the country. In this context, level of anticipation of government is
different from business to business. Government in UK, determines their regulations to
provide health and safety standards and reduce it in effective manner. It includes hazards
for identification, risk assessment and risk control.
 Economic factors: Economic factors also creates impact on the functions and operations
of the business. It can impact in both ways; such as positively and negatively. Currently
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in UK market, retail sales get affected due to uncertainty of various products and
services. M&S have been hit in clothing and food industry. There negative impact also
takes place due to high employee turnover occur in the organisation. Thus, it creates high
impact on the performances of the chosen organisation. They also try to compete within
the market and make themselves as leader (Lorenzo-Romero, Alarcón-del-Amo and
Constantinides, 2014).
 Social factors: From last several years, social elements created impact on M&S due to
continuous changes. To sell food online, the organisation needs to make multi-channel
retailer. It assists to keep different from competitor such as Asda. They both appeal in
different market in term of social class.
 Technological factors: To operate constantly, M&S has opportunity to operate their
functions and operations in successful manner. In this way, they must operate their
operations and functions as per latest parameters of market. In UK, advance technology
exists so that the chosen business has opportunity to enhance market share.
 Legal factors: As other organisations, M&S also deals with many legal issues within the
organisation. Therefore, they must regulate functions and operations by following all
rules and regulations (Armstrong, Kotler and Brennan, 2015).
 Environmental factors: M&S famous for most sustainable brand within the market.
Therefore, they launch various products and services that never harm to environment. It
creates positive impact and effective results at workplace.
SWOT analysis of M&S
Strength Weaknesses
 Positive reputation and image of the
chosen enterprise.
 Unique selling point of the products
that create effective impact on
 M&S is the biggest clothing retailer of
UK that decreases in pre-tax payment
which reduce profit of the company.
 The selected organisation has poor
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customer.
 Effective and efficiently build
infrastructure.
 Successful international market
penetration (Magrath and McCormick,
2013).
performance which also reduce profits
and revenue also decreases.
 Further, high cost of the products
offered by the organisation.
Opportunities Threats
 M&S has the effective opportunity to
develop online sales market.
 The company has opportunity to make
their functions and operations in
different market where they not operate
such as Singapore, etc.
 The company has also some threat in
slow economic growth of country.
 There are many competitors existing in
market such as Debenhams, Zara and
many others.
Strength Positive reputation: M&S has the positive reputation in front of customers in
international market. Therefore, it assists to create effective results for making brand
image of business. Unique selling point: In order to develop the market share, the selected enterprise has
unique selling point that create strength to enhance productivity and performances.
 Penetrate international market: The selected business has effective performances due to
which they can easily penetrate international market and attract potential customer as
well.
Weaknesses Pre-tax payment: M&S pay pre tax so that it reduces their profits and create negative
impact on the operations and outcomes.
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 Poor performances: The enterprise has poor performances from last 1 year so that they
are unable to compete with other businesses at international place.
 High cost: M&S using high cost to deliver products and services to customers. Therefore,
customer moves towards other enterprise who provide same products as the organisation.
Opportunities Promote online selling: The selected business has opportunity to sell products and
services through online method. Therefore, it will assist to enhance productivity and
performances in positive manner.
 Operate functions in new place: M&S has also opportunity to operate their functions in
new place where they are not operates. Hence, it is helpful to make high profits and
revenue through developing outcomes.
Threats Slow economic growth: In UK, economic growth very slow so that it can be negatively
impact on the business performance of M&S. Therefore, the company required to operate
successful in effective way.
 Many competitors: Due to existence of many competitors such as Asda, Tesco, Morrison,
etc., there is high competition take place in UK.
1.2 Importance of promotional mix in production of promotional material
Promotional mix is ascertained with 4 p’s of marketing that includes advertisement, public
relation, sales promotion, etc. These play vital importance in success of Mark and Spencer that
can be determines in the following ways:
Increase brand awareness: Promotion assists to attract more customer within the
organisation with increasing brand awareness. There are several elements used in media that
assists to promote products and services of M&S such as television, radio, newspaper, etc.
Segment identification: Promotional marketing strategy also determines successful results
in business through creating target in audience (Mishra, 2015).
Enhance customer traffic: In the chosen business enterprise, promotion mix also helps in
making strong customer base through providing them effective goods and material.
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4.1 Three methods of promotion and media used
Promotion is very important part of each business. Therefore, it assists to enhance
profitability and successful results within the organisation. In this context, M&S can be used
following methods:
Advertisement: Advertisement assists to make significant results through allocate budget
towards marketing and promotion as well (Magrath and McCormick, 2013). In this context,
M&S has benefits to develop their profits and revenue through convey single message in large
audience with several distribution channels.
Public relation: Public relation assists to make effective functions that make long term
strategy within the organisation. A variety of public relation tactics used to reach towards
customers for whom M&S need to make relationship.
Selling: Personal selling also used as tactics those actively associates with target market. In
respect to develop profitability, this method is the best element interactive form of promotion.
Therefore, M&S has opportunity to enhance profits and revenue (Lorenzo-Romero, Alarcón-del-
Amo and Constantinides, 2014).
Nowadays, customers are more conscious about products and services which they used in
life. They select product after explores several alternative so that retailer of garment products
expend with great amount in marketing efforts. M&S can also allocate large portion with
marketing budget in promotional activities. It will help in maintaining brand image of the
company. In addition to this, the selected company also taking feedback from customer towards
products and services of the business so that proper listening through getting feedback is
important method of social media to develop business outcomes.
2.1 Stages of new product development
M&S has several products such as kids wear, party-wear, posh clothes, hosiery, smart-
casual, designer fashion brand, scarf, hats, bags, belts, women clothes, linen clothes, footwear,
kitchen products, furnishing products, ornaments, etc. In addition to this, there are several other
retail products such and food, drinks, etc. also selling by the company to produce effective
results and high profits as well. In order to expand and diversify the business, the selected
business can make new electronic product in market. In this way, different types of colour lights,
steel pipes, wall switches, LED lights, etc.
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In respect to develop electronic product, following stages can be taken within M&S:
Idea generating: To develop effective results, M&S need to generate idea to make new
product in business. With the help of internal and external marketing competition, ideology can
be generated for assessing market (Armstrong, Kotler and Brennan, 2015). In introduction stage,
the chosen organisation required high production costs which incurred for design costs and low
yield. With the help of frequent modifications, low and unpredictable elements required for
production. There are several resources through chosen firm can take ideas to operate functions
and operations to produce electrical products.
Screening the idea: After generating idea for the product; all concept will be analysed and
best one from it can be selected. This is because, more ideas can be increasing more cost in
further stages. Therefore, the best one need to be selected. In this step, M&S required to select
the best element from several resources. Therefore, it will be helpful to make effective electrical
products such as LED light, etc.
Testing the concept: In respect to go for new product development, attractive ideas need to
be develop with testing. Therefore, the chosen enterprise need to test their product and services
through launch small amount in market. In this aspect, M&S need to identified product idea is
possible or not. In this way, the business need to test their product through implement it in small
area of market. As results, they can test to produce effective results in business.
Business analysis: In this aspect, market description need to be planned with value
proposition and sales that assists to grow market share and profit goals as well. In which market,
M&S growing their operations they have to analysis products and services in significant manner.
It will helpful to cater business target in the way to accomplish profits and revenue.
Marketability test: In respect to estimate sales, the chosen organisation needs to evaluate
the business attractive to proposed new product. It includes review sales, cost and profit for the
product development stage at chosen business. With implementation of small amount of sales,
test can be done for business development and growing operations as well. It will assist to
conduct continuous test for M&S profits.
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Product development: In this step, actual product develops in market through word
description and drawing that perhaps a rough photograph on paper. In this way, the selected
business need to implement products features in operations. In other words, they have to provide
information about the products which business want to introduce in market.
Test marketing: It is the second last stage of product development which consists for new
product development within the test marketing. In this stage, new product development will be
enhanced within the market in successful manner. With the help of conducting test for particular
product and services, M&S can easily enhance profits and revenue in business unit. As results,
targets can be achieve for undertake several activities together.
Commercialization: Test marketing has given in significant manner with making final
decision to launch the product in successful way (Lorenzo-Romero, Alarcón-del-Amo and
Constantinides, 2014). In this way, M&S need to launch their product and services in market that
helps in developing profits and revenue for successful operations at workplace.
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Figure 1 New product development process
Source: (Claessens, 2015)
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2.2 Portfolio analysis incorporating to product life cycle
M&S has several products such as kids wear, party-wear, posh clothes, hosiery, smart-
casual, books, trousers, designer fashion brand, food retail, clothes for bridal, scarf, hats, bags,
belts, shorts, chinos, coats, etc.
To make new product, there are certain stages can be implemented at workplace. They
are as follows:
Introduction stage: It is the first stage which develop and most expensive element for the
organisation. Sales of new product in M&S is very low in this stage so that size of market is
large that required for research and development program.
Growth stage: It is the second stage that typically characterized by strong growth in sales
and profit of the organisation. In this stage, M&S can easily grow their profits and revenue with
high profit margin.
Maturity stage: During the maturity stage, product established and manufacturer has aim to
maintain their market share with growing and competition business with other same type of the
organisation. They also required to make product modifications and improvements in it.
Decline stage: It is the last stage in which product of M&S will shrink. Due to market
saturation, this issue occurs in business unit. Beside this, customers are also switch towards
different products which create high cost to again sell product in market (Armstrong, Kotler and
Brennan, 2015).
BCG matrix
This model based on the product life cycle which can be used to determine prioritise for
product portfolio in M&S. There are different activities exist that ensure long term goals and
high growth also ascertain for development of the business.
 Stars: Stars demonstrates high growth and market share of the company with use large
amount of cash. Therefore, in the selected business unit large amount of fund can be
arrange for business development.
 Cash cows: This element indicate low growth and high market share of M&S. Because of
the low growth, investment for new product required less amount.
 Dogs: In this element, low growth and low market share exists of the firm. With the help
of avoiding and minimize number of dogs in company. Beware of expensive, turn around
the plans required for deliver cash.
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 Question marks: Question marks determines high growth and low market share. Due to
the worst characteristics in M&S high demand and low return comes in the company.
TASK 2
3.1 Three types of marketing/ distributional channel for consumer which is used by M&S
There are three types of channel of distribution is identified which is generally used by
many organisations to available the number of products to final user. It is very helpful for many
large organisations in which goods procurement cannot be take place directly to customer.
Marks and Spencer used one level channel of distribution ion which they play a role of
intermediary through which they can serve quality products directly to user by getting them from
producer (Bojei, Julian and Ahmed, 2013).
In this channel of distribution there is only retailer took place which provide a support to
the manufacturer in selling their products to users. Moreover, they charge a fixed amount for
each specified good. M&S is one of a largest retail outlet in all the world which have appropriate
user base for their products. Hence, they directly procure good from producer and deliver it to
the user (Lorenzo-Romero, Alarcón-del-Amo and Constantinides, 2014). They do not use the
concept of wholesaler as they are one of a largest retail chain in world.
There are still some products require the two-level channel of distribution in which whole
seller plays an effective role such as food products. Company procure their food products from
whole seller and add some value in the rate of products and then sale them out to final users
(Mata and Quesada, 2014). These two are the major channel of distribution which used by a
company at the time of delivering quality products.
3.2 Role of two intermediaries of the selected enterprise
Every organisation selects some number of intermediaries for selling out their products at
target market. Entities provide them some amount of profit share to them so that they get
motivated and work in more and more appropriate manner (Testa, Iraldo and Ferrari, 2015.).
Every company have some number of intermediaries because it became impossible for them to
sale goods and services which manufacture by them to number of users. As they do not such vast
area in which they can attain target number of consumers. Hence, these middleman plays an
effective role at the time of distributing goods and services at target market. Companies use some
number of middle man for selling their goods and services which are as follow:
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