Strategic Marketing Report

This report provides a comprehensive analysis of Marks & Spencer's strategic marketing approach. It examines the role of strategic marketing within the organization, the relationship between corporate and marketing strategies, and the development of marketing strategies. The report utilizes various frameworks, including the 5M model for internal environmental analysis, PESTEL analysis for external environmental analysis, and SWOT analysis to integrate both internal and external factors. Furthermore, it delves into Marks & Spencer's competitive positioning, exploring its specialist, market, and strategic positions. The report also discusses the marketing communication strategies employed by Marks & Spencer and the implications of its overall marketing strategies. The analysis incorporates various academic sources and models to support its findings and conclusions, offering a detailed case study of a major retail company's strategic marketing efforts.

Strategic Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1.1 Role of strategic marketing in an organization.................................................................1
1.2 Relationship between corporate strategy and marketing strategy....................................2
1.3 How marketing strategy is developed..............................................................................3
2.1 Decisions and choices of corporate level.........................................................................5
2.2 How decisions influence marketing at business unit and functional level.......................6
2.3 Competitive positioning of Marks and Spencer...............................................................6
ACTIVITY 2....................................................................................................................................7
3.1 Evaluation of approaches to internal environmental analysis..........................................7
3.2 Evaluation of approaches to external environmental analysis.........................................8
3.3 How internal and external analyses are integrated...........................................................9
ACTIVITY 3..................................................................................................................................10
4.1 Strategies that contributes to the competitive advantage of M&S.................................10
4.2 Marketing communication strategies of M&S...............................................................11
4.3 Marketing strategies and its implications.......................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

ILLUSTRATION INDEX
Illustration 1: Strategic marketing management..............................................................................2
Illustration 2: Development of marketing Strategy.........................................................................4
Illustration 3: 5M model..................................................................................................................8
Illustration 4: Porter's Generic Strategies......................................................................................11

INTRODUCTION
Strategic marketing refers to the competitive benefits of the firm which helps it to gain a
sustainable competitive edge and market position (Olson, Slater and Hult, 2005). These benefits
can be categorized as the modernized inventions, geographical locations, extremely
accomplished personnel etc. These core competencies help the company in measuring their
business performance and growth for its success in the marketplace. In this context, present
report is developed which focuses on strategic scenario. In this report in depth discussion is done
on effective tools and techniques of strategic marketing. Further, Marks and Spencer (M&S) is
being taken into account.
M&S is the multinational retail company of the UK. It is a public limited giant
organization that trade in home products, garments and luxury food offerings. This company
serve the worldwide customers by providing them with series of goods such as, apparels for
every segment, kids and women’s accessories, casuals, jeans, formals etc.
ACTIVITY 1
1.1 Role of strategic marketing in an organization
Strategic marketing can be defined as the core competencies, core advantage, tools and
tactics of the firm which helps in competing with other rivals. This helps the business in
evaluating the effective means of factors to get success in the market (Vorhies and Morgan,
2003). Strategic marketing measures of company seek in delivering high value preposition for
organization. M&S has formulated an effectual way of comprehensive strategic standards that
assist the firm in making brand position. The value based operations and ethical business
activities have resulted in developing organizational performance rather than merely increasing
the sales.
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Marks and Spencer is a reputed leading retail enterprise. It has developed strategic
management marketing tactics for the company to understand the desires and requirements of the
consumers. The purpose of strategic management within the company evaluates the scope of
development in market. This seeks differential measures for analyzing the demand and needs of
buyers and for implementing the same within the organization (Venkatesan and Kumar, 2004).
While managing the relations with stakeholders, the value creation approach of firm leads in
creating positive brand image in the market and thus, helping the employees in recognizing
company easily among competitors. Moreover, the ethical measures of business operation create
high value for the company. The supreme quality and effective pricing policy helped in
evaluating the success and growth scenario of the firm. Hence, it is proved that, strategic
marketing assist in developing unique brand image by creating value for money for its buyers.
1.2 Relationship between corporate strategy and marketing strategy
Strategy is the comprehensive planning implemented to achieve company's specific aim
and objectives of longer time frame. In order to gain a leading market position, M&S has
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Illustration 1: Strategic marketing management
(Source: Onkvisit and Shaw, 2004)

developed its effectual marketing and corporate strategies. Marketing tactics are implemented in
accomplishing the firm long term oriented goals (Doole and Lowe, 2008). The strategies reflect
marketing mix of an enterprise i.e. it deals in variety of products such as groceries, general
household products and clothing segment. The pricing strategy focused on the middle and upper
class segments. Further, company uses online, in store and international stores for shopping. For
promoting its products and services, organization mostly prefers celebrity endorsements and
effective promotional tactics.
On the other hand, corporate strategies are implemented in accomplishing long term
objectives of the cited firm. The corporate tactics of M&S are:
 Increasing profitability and sales volume.
 Implementing POS and SAP software.
 Product diversification to reduce the single product dependency.
 More emphasized on groceries and food products.
 Direct International deliveries to avoid miss-communication.
 Transforming efficient human resources.
 Creating comfortable environment and atmosphere for the customers, suppliers,
employees, business partners and other members.
 Accessing latest and modernized technologies.
Hence, it can be stated on the basis of above discussion that, marketing strategies stresses
on the mission of the cited company whereas corporate strategies focus on the vision of the
enterprise. Further, marketing strategies are a part of corporate strategies and are implemented to
attain the planned corporate level strategies.
1.3 How marketing strategy is developed
Marketing strategy is a long chain process of customer satisfaction. It is developed to
reach the organization long term oriented objectives (baker, 2014). The scenario of marketing
tactics is:
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 Understand customer: M&S conducted several interviews, surveys and questionnaires
to know detailed preferences and demands of the customers. Consumer’s preferences
should also be analysed by using effective promotional activities.
 Analyse market: Organization analyses internal and external market scenario by
conducting SWOT and PESTEL analysis. This evaluation helps the cited firm to know
about its market position and growth strategies.
 Analyse competition: Cited Company conducted surveys which provides a review about
the performance and growth of the competitors. The core competitors of M&S are
TESCO, Next PLC etc.
 Research distribution: Enterprise products and services are distributed at its own retail
store and online store (Kotler, Kotler and Kotler, 2008). It even disseminated its products
at international stores and direct deliveries methods are adopted for such stores for
effective communication.
 Marketing mix: It reflects company's marketing strategies i.e. worldwide distribution of
products at a competitive price along with adaption of sound communication.
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Illustration 2: Development of marketing Strategy
(Source: Baker, 2014)

 Financial analysis: M&S examines various budgeting strategies for proper cash flows in
the organization. It evaluates several competitors pricing strategies to know the
customer’s price era. Cited company focuses on the premium pricing policy because the
customers of the organization are very brand conscious.
 Review and Revise: It is the most important step in creating a marketing tactics because
it includes past performance of the enterprise and competitors. Past data or previous
records always helps the cited company in implementing an impressive strategy.
2.1 Decisions and choices of corporate level
Corporate level managers of M&S take several decisions for the success and growth of
the business. These are upper level of managers namely chairman, board of directors, chief
executive officers (Dwyer and Tanner, 2002). These managers make decisions for the overall
growth and performance of the mentioned company. They spend more of their time in planning
and organizing the activities for the firm. Further, they execute policies and procedures which are
implemented by the business level managers. Policies are the guidelines that guide other
members of the company about Do’s and Don'ts and about the structure which is followed by the
company.
Moreover, decisions taken by senior level of managers are very complex in nature
because they are made for the overall development of the cited company. They prepare long term
plans for M&S which are generally made for 5 to 25 years. Even, corporate level managers
delegate the authority and responsibility to other business and functional level of managers.
Additionally, authoritative decisions are taken on the basis of skills, competencies, traits of other
members and accordingly, responsibilities are divided. Furthermore, these managers make
decisions regarding capital budget, cash flows, resource allocation and implementation of
strategies.
In order to have effective and comprehensive strategies in the organization, corporate
level managers execute atrocious pricing strategies, promotional tactics and well-integrated
distribution channels (Onkvisit and Shaw, 2004). Even, they give the opportunity to middle and
lower class managers in the decision making process for the enterprise.
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2.2 How decisions influence marketing at business unit and functional level
Top level decisions influences the administrative and operational level decisions because
these upper level decisions are dependent on two other levels. Even, senior level decisions are
extremely distinct from the middle and lower order decisions (Varadarajan and Yadav, 2002).
Senior level decisions are taken in respect to the whole business planning scenario of M&S
whereas, administrative decisions are taken for the development of a specific commercial
segment and operational level decisions are taken to control the structural fields of management
namely human resource, operation management, strategic management, IT, finance etc.
Business unit and lower level decisions are made to achieve long term corporate level
decisions. The business level strategies are decided by the administrative managers namely head
of department. These managers prepare short term programs for their departments which are
generally made for 1 to 5 years. They spend more of their time in coordinating and
communicating the activities of the cited company. Further, they implement policies and
strategies which are made by the senior level managers. Middle level managers also provide
recommendations and suggestions to the top series of managers.
On the other hand, operational level of decisions is interpreted by the line managers
namely supervisors, team leaders, foremen etc. These people are responsible in making daily,
monthly, and weekly plans (Hawkins and Mothersbaugh, 2009). They spend more of their time
in directing and controlling the functions of the mentioned firm. Moreover, they direct and
supervise employees and workers regarding their work and develop the morale of the workers.
They regularly give reports to the administrative level of managers and maintain a link between
middle level of managers as well as employees.
2.3 Competitive positioning of Marks and Spencer
Marks and Spencer is a multinational company which serves broad series of products
across globe. It uses effective positioning tactics for the promotion of its goods and services.
 Specialist positioning: M&S uses special positioning to enhance the growth of its food
products in the market (Craven and Piercy, 2008). Despite of tough market competition,
cited company increases the sales and profit margins of its food and drinks segments.
Further, organization sales are increasing 36% year on year and it is named as “The
supermarket of the year” in the international wine challenge. Cited enterprise will
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continue its specialist positioning strategy for the coming years because of the
outstanding performance of its brands in the market.
 Market positioning: M&S is a market leader of UK because it has 40% share of the
lingerie market which is more than ₤1.75 billion. The company has good relations with
the suppliers in order to maintain a well-integrated distribution channels. Company has
strengthened its market position to compete with the emerging competitors and the new
entrants to the firm. Further, to understand the complex market conditions, organization
required experience, judgment capability and entrepreneur talent.
 Strategic position: Marks and Spencer operates in various segments like food, clothing,
home and beauty segments. The firm adopted premium pricing policy for its products and
services. Further, the core key factors which affect the performance of the firm are online
purchasing and the ever changing trends because the enterprise has no control on these
factors. The strategic values of the company are premium quality, service and
affordability.
ACTIVITY 2
3.1 Evaluation of approaches to internal environmental analysis
For the purpose of assessing micro environment analysis, M&S adopted 5M's model of
management which is explained below:
Illustration 3: 5 M Models
(Source: Doole and Lowe, 2008)
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 Men: In order to have an effective work flow, cited company has efficient and strong
workforce. Moreover, the area served by the firm is huge but because of its highly skilled
and competent manpower, M&S is able to cover huge and broad area. Material: (Ferrell and Hartline, 2011). It uses fabric and cotton material for its clothing
segments; fresh items for its food segment. Further, for the beauty segment, company
uses more of eco-friendly ingredients like aloe Vera, turmeric, Neem etc. in order to have
no hazardous chemicals. Money: Firm adopted premium pricing for its branded products because the consumers of
M&S are very brand conscious. Along with the premium policy, cited company offers
excellent quality products to seek more customer attention. Method: Enterprise adopted various levels of methods and process for its atrocious
performance. For example, it uses well integrated supply chain for distribution of its
products and services. Suppliers of the above company are scattered across the globe to
have massive distribution of brands.
 Machine: Latest, modernized and innovative technologies are used by the company for
its business operations. It is considered technologically efficient company. Further, some
of its innovative technologies are General and Pediatric Eye Care, Validated Contrast
Sensitivity Testing .
In the support of above statement, it can be said that there are number of benefits that
Marks and Spenser attain through 5m of management. It provides an better opportunity to select
right personnel for right position so that organisational effectiveness and efficiency. It also
allows business firm to have effective allocation of human resources in order to boost
organisational productivity. It also provide better information about availability of resources so
that location can be selected in proper way as per availability of material. It is also beneficial for
effective development of supply chain process. On the other side, it also has various
disadvantages that impacts the work culture of Marks and Spenser. In this management does not
have enough time to micromanage various factors because process does not includes high
number of managers. In the support of this, it can be said that the individual contributors does
not have proper information about different subjects.
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3.2 Evaluation of approaches to external environmental analysis
M&S conducted PESTEL analysis to study the macro environment factors which
includes political, economic, social, technological, environmental and legal factors (Madhavaram
and Hunt, 2008).
 Political factors: It has been spotted that the government establish number of regulations
in context of health, tax, etc. These factors are related to environmental and health
regulations, taxes and labour policies, industrial norms etc. M&S has taken several
initiatives which include fair trade policy for the safety of the customers. The policy
includes cutting salts and fat content in the food, animal welfare protection and recycling
of packaging. It is necessary for Marks and Spenser to follow regulations set out by
government in order to avoid various legal issues. If company will not consider political
aspects as significant then business may face few issues.
 Economic factors: These factors outlooks industrial and future economic growth namely
inflation, cost of raw material, consumer spending etc. Currently the economic outlook is
very uncertain and this is more than likely to affect retail sales, as people do not have the
spare cash to spend on luxury items such as clothing and food luxuries. M&S revenue
growth is very low i.e. only 2%. The company have had to change the way of their
marketing techniques so that, they can come up with the new ideas. It is necessary for
management of Marks and Spenser to take decisions regarding pricing as per current
conditions of economy as it provides long term sustainability.
 Social factors: These factors include trends, purchase patterns of consumers, cultural
backgrounds; consumer’s needs for safety and health goods. It has been identified that the
social needs has changed rapidly and it is essential for management to bring diverse
changes in operational activities as per social needs. Since the requirements and
preferences of the customers are very dynamic, with respect to this, M&S adopted low
pricing strategy for its products and services. It is necessary for Marks and Spenser to
changes its product line as per currents trends of market so that business can have
impressive success.
 Technological factors: M&S uses new and latest versions of the technologies for the
better promotion of its brands and success of business operations (Dou and et.al., 2010).
The key two technological factors which company focuses are e-commerce and
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