Marketing Report: Analysis of Zara's Principles and Practices (PPM)

This report provides an in-depth analysis of Zara's marketing strategies, focusing on the principles and practices employed by the company. It begins with an introduction to the importance of marketing in the fashion industry and then delves into Zara's customer-facing touchpoints, including stores, offices, and reception areas, highlighting how these elements contribute to brand promotion and customer engagement. The report also examines Zara's use of external spaces such as advertising, billboards, and digital platforms like social media and websites. Furthermore, it explores the role of third parties, such as news articles and analyst reports, in promoting the brand. The report then analyzes the marketing theories and models used by Zara, including the ALDI model and communication processes, evaluating their effectiveness. The report concludes with an overview of Zara's marketing strategies and their contribution to the company's success in the international fashion industry.

PRINCIPLES AND
PRACTICES OF
MARKETING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Customer Facing Touchpoints.....................................................................................................3
External Spaces............................................................................................................................6
Digital Platforms..........................................................................................................................7
Third Parties.................................................................................................................................9
TASK 2..........................................................................................................................................11
Marketing theories.....................................................................................................................11
The way Zara used ALDI Model...............................................................................................12
Evaluation of effectiveness........................................................................................................12
Communication process.............................................................................................................12
Communication process used by ZARA...................................................................................13
Evaluation of effectiveness........................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is one of the major functions of an organisation. Currently each business or
company is investing huge fund for make their marketing functions more effective. There are
effective marketing functions are too necessary for company to gain positive results in the
market. Currently marketing competition within each industry is increasing day by day. In this
situation effective marketing campaigns are one of best ways for different companies to gain
huge competitive advantage in respective industry or sector. Nowadays many new marketing
techniques has come into market, like; digital marketing, affiliate marketing, sponsorship etc.
which provides very good results to various companies or businesses. This report discusses
marketing functions of Zara. It is one of leading fashion brands, headquartered in Arteixo, Spain.
Some major marketing principles and practices of marketing also has included in this report.
Currently marketing functions plays great role to this company. Reason is, with the support of
effective marketing functions, Zara has succeeded in gaining large market share within
international fashion industry.
TASK 1
Promotional activities are too necessary for an organisation, because these gives
opportunity to organisation for promoting their products and services at the large scale.
Customer Facing Touchpoints
Top-level management of Zara has taken various productive steps towards promote their
products and services at any stage. For example; company has displayed many attractive banner
on each wall of their different stores (Christopher, 2016). That’s why when any visit in the

Zara’s stores, then it will get highly influenced by company’s attractive image and video
displays. This is really very attractive way of marketing. Currently many other brands also have
applied this same marketing technique in their authorised stores. The marketing team of
company is really too active in its job role, because this team always innovate such marketing
methods and techniques for company which can provide effective results to the Zara. Some
customer facing touchpoints of company has been discussed below;
Stores: Zara’s existing stores are very attractive in nature. Most customers are really like to visit
in these stores. Well-trained employees or staff within these stores always provides the best
customer services. Existing staff within different stores has very effective communication skills
and abilities. In this situation, these attributes of stores also come under marketing functions,
because effective communication skills are enough to attract lots of customers in the market.
Currently those organisations able to gain high success which has effective relation with
customers, in which Zara also has succeeded in maintaining effective relationship with their
customers with the support of effective employee’s well-developed communication skills and
abilities. When customers visit in a stores, then existing staff of company of interacting with
them in very proper manner (Krishen and Petrescu, 2018). On the other side, company always
opens their stores in prime location of different cities, because when company opens store in
prime location, then it becomes able to attract many customers towards. Reason is, most people
always visits prime location of city. These all attributes of Zara’s stores are highly promoting its
brand in the market.
Offices: Zara’s different offices also positively influence to people, because existing staff of
offices always talk with any person in very logical manner. When any customer visits company’s

office, then present staff of store offer them water, tea and coffee etc. Customers always feel
valued by company, when staff well behave with them in its offices. Currently company has very
effective workforce, who day or night working for achieving its final goals. That’s why these
employees always put great efforts for attracting lots of customers towards brand.
Reception Areas: Reception area within company’s different stores is completely customer
friendly, because when customers visit in store, then reception staff welcome customers through
local tradition. This attribute of reception areas highly attracting lots of customers towards brand,
because a customer always like to visit in that place where existing people give respect it
(Arunachalam and et.al., 2018). Many times customers have different queries also on any
product and service, in which reception properly guide them. Many other queries of customers
have also solved by reception staff. That’s why currently most customer like to purchase
products and services from Zara.
These all actions and steps which Zara has taken in their different stores, offices and
reception areas are very effective. Reason is, these steps of are providing large customer base to
this company in international fashion industry.

External Spaces
Currently the marketing team of company is using almost all platforms of marketing,
like; internal and external etc. In internal spaces, company has applied very innovative marketing
techniques in their different stores, offices and reception areas. On the other side, in external
spaces also company has applied very productive marketing techniques to attract lots of
customer towards brand. For example; Zara uses various advertising platforms and billboards for
promoting its products and services at the large scale. The external marketing spaces of company
has been discussed below;
Advertising
Advertisement is one of the best ways for the company to promote its products and
services at the large scale. Currently marketing team of Zara has divided its whole market into
small market segments. Team always runs different advertisements in the different market
segments. Currently young generation is main target audience for Zara to show their attractive
advertisements. Mainly marketing team uses STP model of marketing for running its various
advertisements in the market (Song and et.al., 2018). STP model includes three major elements
called; segmentation, targeting and positioning etc. These all elements always guide to marketing
team about what kind of ads it should run for attracting lots of customers towards brand. Top-
level management of company has given special instructions to marketing manager for running
some fancy and attractive ads in various market segments for positively influencing people.
Company always uses some good looking models (male or female) in their all advertisements.
These models are highly attracting many new customers towards brand. Marketing team runs
these various advertisements on different advertising platforms, like; television, newspaper,
social media, YouTube, radio etc. People always get highly influenced by these fancy
advertisements of Zara.

Billboards, Banners, Posters
In external marketing spaces, marketing team Zara mostly choses billboards, banner and
posters also for promoting their products and services at the scale. Currently the Zara is showing
its many fancy advertisements in different cities of world through these billboards, banners and
posters. Marketing team always take billboards, posters and banners on rent in prime locations of
city where most people always visits (Kashif and et.al., 2018). Many times company prints its
advertisement’s on different vehicles also, like; truck, cars and taxi etc. These steps are very
productive for the company, because people get highly influenced by company, when they see
Zara’s billboards, banners and posters in prime locations of city. That’s why this is another
productive marketing technique to the marketing team of Zara.
Digital Platforms
Currently marketing team of Zara uses different digital platforms also for properly
conducting their all marketing functions. Nowadays most companies have started to use these
digital platforms for promoting their products and services at the large scale in the world. For
example; social media marketing, website, affiliate marketing etc. are part of these digital
platforms. There are digital platforms mainly indicates digital marketing. Currently Zara is
taking huge advantages from this marketing strategy, because in this modern and dynamic
business environment digital marketing is only major source to different companies or businesses
for attracting lots of customers towards respective brand. That’s why marketing team of

company always focuses on taking huge advantages through digital marketing. Some major
digital platforms have been mentioned below;
Social Media
Currently most people are using different social media platforms like; Facebook, Twitter,
Instagram etc. In this situation, nowadays these social media platforms are the best way to the
company for highly attracting company towards brand (Nelson, 2018). Currently Zara is too
active in these different social media platforms, because its marketing team daily upload new
fancy photos and videos in advertisement form on its different official social media pages.
Currently many people have liked and followed social media pages or handles of Zara. In this
situation, when company post fancy photos and videos of their products and services on these
pages, then it can easily positively influence people in the market. These platforms really provide
great promotion opportunity to company. With the support of effective social media marketing,
currently company has gained very large market share in international fashion industry.
Website
Website is also one of popular digital platforms where each business or company is
responsible to create or maintain own official website with attractive interface. In this situation,
Zara has already developed its official website to achieve large customer base. IT (Information

Technology) department of company is properly marinating its website. Currently company sells
their fashionable clothes through its official website as well (Abubakari, 2016). Zara website is,
www.zara.com, where many people visits continuously for online purchasing different products
and services of Zara. In this dynamic world, many people not have time to go to Zara’s store for
buying clothes, in which company’s website is the most appropriate ways to people for online
buying their products and services from home. Many times company promotes own website also
through other popular sites for increasing traffic on its official site, because when traffic
increased on its site, then its profit ratio will also be increased.
Third Parties
Marketing team of Zara uses various third parties also for promoting its products and
services at the large scale. For example; news articles, analyst reports etc. In which these some
major third parties to company which can promote its brand in the market. Some major third
parties have been discussed below;
News Articles
Many times company’s prime authorities, like; managers and leaders etc. gives
interviews to different newspapers and news channels. In these interviews, they always share
their experiences of working in Zara. They inform specification of different products and
services also in such interviews (Clark, Fine and Scheuer, 2017). Then newspapers companies
print those interviews in their respective newspapers in an article form. In this situation, when
people in the market read those articles in various newspapers, then they get highly influenced by
the company. Many times company pay also to different newspapers companies for printing
various articles which has based on Zara. In this articles, many times company share about

upcoming trends as well, in which this step of company highly increase its sell ratio in the
market. Reason is, people always like to wear latest and trendy clothes in the market. That’s why
news articles always contribute in Zara for promoting its products and services at the large scale
in international fashion industry.
Analyst Report
Zara always share its revenue, profit, existing assets etc. publically. Per year company
has gained very huge profit in its fashion industry, in which when people see high profit ratio of
company in different profit analyst report, then they get impressed by company. They think,
company is gaining huge profit in the market, it means this company definitely provides quality
products and services to customers. That’s why these analyst reports indirectly promote Zara’s
brand value in different market segments. People able to seen Zara’s high levels of customer
services also in such analyst reports (Sreedharan and Rehin, 2017). Currently many analyst
reports are already available on various business analyst sites, books & journals, magazines etc.
which completely show high reputation of company in the market. In this situation, these analyst
reports are also very helpful for the company for effectively promoting its products and services
in the global market.

TASK 2
Marketing theories
From the above task it can be evaluated that various marketing theories and models that
are used by Zara in order to increase its sales volume and profitability. Such as AIDA and
communication process that are used by firm to effectively market its products and services to
large number of customers (Mishra and Modi, 2016).
AIDA Model: This model explains that various stage through which an individual decided to
purchase products and services of particular company over other competitors. Therefore it is
purchasing funnel which state different stage passed by customers to make final decision of
making purchase of products. AIDA model is classified into four stages such as awareness,
interest, desire, action and retention.
Attention: It is stage where company has created awareness among people about various
products and services in which firm deals and its brand image. Firm play effective strategies to
promote its products through advertisement in TV, newspaper and social so that it can attarct
large number of people within limited time.
Interest: It is hardest stage as marketer of firm has to plan innovative strategies to gather interest
and attention of customers. Company by using innovating design and marketing of products is
able to create interest and influence people to make purchase.
Desire: After interest in the products has been created company planned to create desire among
customers to have such products to satisfy their needs. Creating desire among customers helps in
long term retention of people with company thus promoting growth and success.
Action: It stage where customers actually decided to make purchase of products of particular
company as desired and interest have been created and they are motivated to use products.

The way Zara used ALDI Model
Zara has also used ALDI model to market its products to large number of people and
increase it sales and profitability such as:
Attention: Company has effectively created awareness among people through marketing its
products and services by using social media, sponsorship, internet marketing and personal
selling. It helps in attracting wide range of customers to prefer qualitative products of Zara to
look attractive and pretty (Järvinen and Taiminen, 2016).
Interest: Social media is most used by number of people thus Zara by advertising its product
through social media is able to attract interest of customers. Company has well equipped
infrastructure of stores so customers can easily come and choose products as per their choice.
Desire: Strong brand image and quality of products and services offered by Zara helps in
creating desires in mind of people thus promote growth and expansion of business. Employees of
company are highly skilled so they put their best effort to influence customers for achievement
of company goals.
Action: Customer by analysis stores of Zara, quality of products and feedback of other
customers decided to make final purchase of products of company. Attractive trail room are
present in Zara stores so that people can select best clothe as per their requirements.
Evaluation of effectiveness
Evaluation of various marketing model such as AIDA that is used by Zara to influence
customers and increase its sales are:
KPI data: Key performance indicators of Zara are it strong brand image and customers
satisfaction regarding price charged and quality offered by company. Positive comments on
social media, likes and share stated that company is effectively performing its function. It also
stated that it has effective created awareness, interest and desired among people to choose Zara
products over other competitors in the market.
Communication process
Communication process: It is process that promotes effective exchange of crucial information
and building strong relationship with customers, investors and employees of firm (Mazzucato,
2016). Communication process can be classified into seven steps such as:
Sender: It is person that wants to share information to another person.