UGB161 - Marks & Spencer Marketing Audit: Strategy & Segmentation

This report presents a marketing audit of Marks & Spencer, evaluating its current marketing strategy and market position. It includes a SWOT and PESTEL analysis to assess the internal and external factors influencing the company. The report examines the marketing mix (product, price, place, promotion) and STP (segmentation, targeting, positioning) analysis to understand the company's approach to reaching its target customers. It proposes two market segmentation criteria: individuals 30+ and children, explaining how these groups can be successfully targeted. The analysis considers consumer behavior and provides recommendations for improving Marks & Spencer's marketing effectiveness. Desklib offers a range of study tools and resources for students.

Marketing Department

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing Audit.....................................................................................................................1
Marketing Strategy.................................................................................................................4
Marketing Mix........................................................................................................................5
STP Analysis..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is basically the process of designing and maintaining an environment in which
individuals working together in groups efficiently accomplish selected aims and objectives. In
this report, the organisation chosen is Marks and Spencer, which is a British multinational
company headquartered in London, United kingdom. In this report, it involves the understanding
and knowledge of the various areas of marketing and the relationship among them and its
application in the international organisations. Moreover, it comprises of the market
understanding and their operations for the services and goods across the global environment. In
addition to that it comprises of the deeper understanding about the relationship among the
customers and the organisations with the application of the development of the important
marketing tactics and tools within the changing environment. The present report includes two
sets of market segmentation criteria which involve the 30 plus individuals and Kids. In addition
to that, it comprises of the suitable research and understanding of the behaviour of buyer.
MAIN BODY
Marketing Audit
In context to organisation, the marketing audit basically depicts as the interpretation of the
systematic analysis of the marketing of the business and involves the various activities which are
carried in the marketing department. In context to marketing audit, it comprises of the various
factors such as market, competitors and distributors etc( Gupta, R. and Bedia, D.D., 2021).
SWOT Analysis
Strengths
 In context to Marks and Spencer, the organisation has numerous stores and are
available across the world.
 The organisation is a leading retailer organisation and enjoy a large base of
customers and has created a renowned brand image which is easy to recognise.
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 The organisation offers a wide range of trendy, known and designer products and
also sells it online.
Weakness
 The organisation is facing a tough competition from various other international brands.
 The organisation has a very limited availability of the marketing stock and the company
has availing brands at very higher prices which results in limited market share (Jobber, D.
and Ellis-Chadwick, F., 2019).
Opportunities
 In context to organisation, its online presence is one of the bolster in the market position.
 The company has expanded its operations with the help of investing in more countries.
Threats:
 Due to the international presence, the company gets exposed to various policies
implemented by the government of different nations and resulted in affected by
government policies change.
 The organisation is highly threatened due to the international popular retail brands
availability as the other organisations are becoming a hurdle for the expansion of the
business operations and increasing tough competition in the marketplace.
PESTEL analysis
Political Factors
 In context to organisation, the country’s government free trade strategy has been affected
due to the company raising their profit margins and reducing the sourcing costs.
 The organisation is majorly influenced due to the government alternation and also being
affected due to the taxation policies (Ferrell, O.C., Hartline, M. and Hochstein, B.W.,
2021).
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Economic Factors
 In context to organisation, it uses good quality raw materials and also offers service and
products at low or discounted rates.
 In context to economic factors, it comprises of the factors such as foreign exchange rates,
interest rates, inflation rates and economic growth. The organisation has aligned their
marketing strategy with the products.
Social Factors
 In context to organisation, the company wants to expand its brand for the purpose to keep
up with the changing trends in the market place. In context to company, the purchases of
the consumers are highly affected due to personal, cultural, social and personal changes.
Technological Factors
In context to organisation, the company has announced Technology Transformation Programme
which will allow the company to become the first digital business and offering and enhancing
large customer experience. In context to organisation, the company has also focused on the
creation of the new technology operating model which helps the organisation in exploiting new
technology that involves the adoption of the industry agile methods (Shah, S.A., Azhar, S.M. and
Bhutto, N.A., 2019).
Legal Factors
In context to legislations, they are ever changing when it comes to various countries and in
reference to organisation, the company is conducting various sessions for the objective to keep
themselves updated with the present legislations and laws.
Environmental Factors
In context to environmental factors, there are various issues in relation to the current climate
conditions which are being promoted on constant manner on the newspaper, television and
magazines. In context to organisation, it has established their own Green Policy.
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Marketing Strategy
In context to Marketing Strategy, it is a organisation game plan for the objective to reach the end
users and also making them customers of their services or products. In reference to marketing
strategy, it comprises of the data on target customer demographics, value proposition, high level
elements and key brand messaging.
In context to organisation, the marketing strategy helps in analysing the brand with the marketing
mix tool which comprises of the 4Ps that includes Product, Price, Place and Promotion (Ibrahim,
E.B. and Harrison, T., 2020). It involves the several strategies in relation to the marketing which
involves pricing approach, product innovation, planning promotion etc. In addition to that the
marketing strategy helps the organisation to position itself competitively in the market and also
achieving its objectives and goals.
Product Strategy: In context to Marks and Spencer, the organisation is considered to be the top
retail chain brand and the product portfolio covers all the age group for the kids, women and
men. In addition to that, the organisation offers products which comprises of clothing, footwear,
bags and accessories.
Price Strategy: In context to organisation, the company has its own house brand and are priced
between the medium to higher category due to premium quality. The company follows a
competitive pricing strategy.
Place and Distribution Strategy
In context to organisation, the company is a international brand which has its stores operating
among 50 countries and has its presence in almost other countries such as Finland, Turkey,
France, Hungary, Spain etc. In addition to that, the company has got its own website from where
the consumers can buy products (Ayertey, S. and Howell, K., 2019).
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Advertising and Promotion Strategy: In context to organisation, the company chooses its
marketing strategy in a careful manner also aligns it with the advertisement campaign. The
organisation also focuses on sharing a common message through communication medium. In
addition to that, the company uses its website for the purpose to promote its clothing and other
products.
Marketing Mix
In context to organisation, the company is a public limited organisation of the British Origin.
Products: In relation to company, the organisation believes in offering fair trade products and eco
friendly goods and there diversified product portfolio also comprises of the apparels, accessories,
lingerie, footwear, nightwear, formal wear and much more.
Place: In context to the organisation, the organisation has spread its presence in the international
market that comprises of the various places such as France, Egypt, Morocco, Spain, Jordan,
Kabul, Austria, Germany etc. The organisation has established overseas offices in places such as
Turkey, Sri Lanka, Italy, India, Malaysia and Thailand. Moreover, the company sells its
products through various outlets for the purpose to gain the customers and increasing visibility of
the consumers. The organisation focuses on tastefully decorating for the purpose to offer smooth
ambience (Ofori, D., 2021).
Price: In context to organisation, the company has its own brand for apparels and caters to upper
middle and upper class section of the society. The company has also kept the prices between
medium to high range and offers premium quality. In addition to that, the organisation has
adopted a dynamic pricing policy and also provides discounts and incentives to its consumers
during the seasonal time, off seasons and festive season. With the right pricing strategies, the
organisation will be able to clear its old stock and the incentives will help in large sales figures
(Bernon, M., 2018).
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Promotion: In reference to the organisation, the company believes in full on marketing policy
and has aligned with various possible tools. In addition to that, the company has adopted below
the line and above the line strategies for the purpose to make its presence felt. The organisation
has chosen its promotional campaigns in a careful manner and has placed ads in hoardings,
magazines, television, radio etc. The organisation has also focused on promoting their products
with the help of celebrity endorsements and has a in store strategy which supports in promotion
of the products through its outlets. Moreover, the company has a loyalty program that focuses on
adding points in the account of customer and is totally based on the shopping amount done by the
consumers. In addition to that, the organisation believes in charitable works and always
participates in various several events.
In context to organisation, the company is focusing on two sets of the market segmentation
which is 30 years plus age group and children which will helps in successfully targeted by the
business.
Market Segmentation: In context to organisation, the market segment is a sub set of the market
which is made up of the organizations and people sharing one or more characteristics. In
reference to organisation, the market segmentation allows the organisation to treat similar
consumers in same way while differentiating with various consumer groups. In context to
organisation, the company uses demographic segmentation for the purpose to select target
markets for its products. The company targets its customers into various groups through
occupation, age, income and social class. The company targets the 30 plus age group with
executive occupation and high income.
STP Analysis
In context to organisation, the STP Analysis plays a really important role in the behaviour pattern
of the consumers. The framework assists the company to have deep understanding and
developing the product and relating with the customers. With the help of Positioning and
Targeting , the organisation will be able to have a deeper understanding about the current
business situation. Each factor of the STP helps in describing the profit measures which are taken
into consideration and also helps the organisation in finding the consumers and new market.
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Segmentation: In reference to the organisation, the company divides the market in few segments.
The process of segmentation allows the company to maintain sustainability in the organisation.
The company divides the audience on the basis of parameters as per the various demographics
such as age, education, gender and on the basis of the geographically by state, country and
region. With the help of behaviour pattern, it helps in determining the retention on their products.
In addition to that, it helps in understanding the consumes according to the company for the
purpose to carry out important steps. Moreover, the company need to improve through
concentrating on the satisfaction factor of consumers (Lavorata, L. and Sparks, L. eds., 2018).
Target: In context to organisation, the company is running a ethical business structure and is
maintaining some market oriented target in their organisation for the purpose to maintain the
sustainability in the company. As per the potentiality and size, the company needs to set a annual
target for the purpose to gain profits. When it comes to targeting, Money plays a very important
role and it is important to set budget for the purpose to carry out quick decisions. It is important
for the organisation to set up the target which is easily accessible to them.
Positioning: The marketing mix supports the company to position their products and business
structure in a proper way. The four Ps involves Product, price, promotion and place. In addition
to that, the organisation need to focus on the four elements for the purpose to seek improvement.
In addition to that, the need to plan their products in accordance to the needs of the customers
and as the company deals with the food and clothing business, the company need to focus on the
choices of the customer and according to the organisation needs as per the pricing lists.
With reference to the Mark and Spencer, the market segmentation has been done on the
basis of the demographics which include people by their age which contains the people who are
above the age of 30, with their high income and occupation. The company also offers products
for the children to increase its market share. Therefore, an organisations segmented its market on
the basis of two sets which include the children and the 30 plus age group people. The behaviour
of the customers affect the business of an organisation because the needs of the people get
change according to the changing environment. Thus, an organisation have to study the
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behaviour of the customers in order to determine the market for their products so that it can
provide products according to their requirements. The customers behaviour assist the
organisation to decide what type of products should be offered to increase its sale. The products
are offered by an organisation after knowing the demand in the market because the customers
wants new and unique products which should be less expensive and have good
quality(Sathiyamoorthi and et.al, 2021). Therefore, a business concern needs to observe its
products line so that it can provide its customers new and unique products which help in
increasing its market share dan enhance the profitability. The customers behaviour affect the
strategies of the products and pricing. Mark and Spencer provides its customers premium quality
products that helps in satisfying the wants of the customers and get loyalty of them.
The target market of the Mark and Spencer is 30 plus age group people which include
man and women both and also tragedy the children so that it can enhance its business. The target
market assists the organisation in connecting directly with the specific audience. It enables a
business concern to attract the potential customers of a specific group and crest brand awareness
them which assist the customers in identifying the brand of an entity. Mark and Spencer targetted
the market of children and average age group where the size of the segment is considered as
large in older to reach to the growth potential. It increases the profitability of the business which
can create value for the customers(Qin and et.al, 2021). Thus, the company can make the loyal
customers through providing them best services by satisfying their needs. However, the target
market can be affected by the behaviour of the customers because the products are determine by
the customers whether they are obsolete. Thus, it is essential for a business concern to identify
the group of people to whom the company want to target and understand their need in order to
provide them products accordingly. Mark and Spencer must understand the lifestyle of the
customers and their ages group as well so that the products are provided with specific features to
the group. This assist the company in making the brand awareness for the products of a
company. This assists them in improving the products and services as well by focusing on the
specific segment.
In context to Mark and Spencer, positioning helps the company in attracting the
customers through developing an effective strategy so that the brand can be perceived by the
customers(Guo, Wu and Gui, 2021). The company have its own website where the customers
can easily get the products and also an organisation uses the social media platform such as
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Facebook, Instagram etc. to engage with the customers. This help the company in creating the
positive image of the brand among the customers and increase the market share. The sales and
profits of an organisation can be increased through offering products to the segmented target
audience. The effective campaigns are also organised by the company in order to attract the
group of the customers and enable to make the effective decisions. The behaviour of customers
can affect the marketing strategies of an organization so the company research on the internet
about the shifting of the demand of the customers so that it can bring the strong tool for
marketing that help in getting the good position in the market and overcome the
competition(Muneeswari and et.al, 2021). The company also make the sale forecasting to know
how much sale can be made in future for the product so that it can make products according to
the demand. Therefore, the company get the good positioning in the market and impact the
behaviour of the customer by providing them good quality products on the premium process to
access the market. This will enable the company to gain the competitive advantage.
Thus, STP analysis help the business in growing because it allow the company to increase
its brand image by defining the target market of the customers. It enables a business to reach out
to the specific segment market and also identify the gaps in the market(van der Ploeg and et.al,
2021). It helps in knowing the behaviour of their customers and assist in avoiding the
unnecessary expenditure that are made during the promotion of the brand. It enable itself to make
development according to the changing needs of the customers.
CONCLUSION
From the above discussion it has been concluded that marketing plays an important role
to create the awareness for the brand which help in growing the sales of the business. It enhance
the reputation and increase the profitability of the business and develop the market segment. It
assist in optimal utilisation of the resources and provide the various employment opportunities.
Thus the report has discussed about the strength and opportunities of an organisation and the
environmental factors. The marketing mix and strategies also discussed in order to know the
segment, target market and position.
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REFERENCES
Books and Journals
Gupta, R. and Bedia, D.D., 2021. FOOD RETAIL MARKETING ORGANISED OR
UNORGANISED (Vol. 1). Academic Guru Publishing House.
Jobber, D. and Ellis-Chadwick, F., 2019. EBOOK: Principles and Practice of Marketing, 9e.
McGraw Hill.
Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021. Marketing strategy. Cengage Learning.
Shah, S.A., Azhar, S.M. and Bhutto, N.A., 2019. Halal marketing: a marketing strategy
perspective. Journal of Islamic Marketing.
Ibrahim, E.B. and Harrison, T., 2020. The impact of internal, external, and competitor factors on
marketing strategy performance. Journal of Strategic Marketing, 28(7), pp.639-658.
Ayertey, S. and Howell, K., 2019. Service failure and recovery strategy in computer-mediated
marketing environments (CMMEs). In Leveraging computer-mediated marketing
environments (pp. 173-192). IGI Global.
Ofori, D., 2021. Opportunities and Challenges of Green Marketing. In Green Marketing in
Emerging Markets (pp. 251-276). Palgrave Macmillan, Cham.
Bernon, M., 2018. Sustainable supply chains: Marks & Spencer’s Plan A. The Business &
Management Collection.
Lavorata, L. and Sparks, L. eds., 2018. Food retailing and sustainable development: European
perspectives. Emerald Group Publishing.
Sathiyamoorthi and et.al, 2021. Experimental study of spray analysis for Palmarosa biodiesel‐
diesel blends in a constant volume chamber. Environmental Progress & Sustainable
Energy, 40(6), p.e13696.
Qin and et.al, 2021. Evaluating environmental impact of STP effluents on receiving water in
Beijing by the joint use of chemical analysis and biomonitoring. Science of The Total
Environment, 752, p.141942.
Guo, Y., Wu, Y. and Gui, W., 2021. Stability of discrete-time systems under restricted switching
via logic dynamical generator and STP-based mergence of hybrid states. IEEE
Transactions on Automatic Control.
Muneeswari and et.al, 2021. Genomic characterization of Enterobacter xiangfangensis STP-3:
Application to real time petroleum oil sludge bioremediation. Microbiological
Research, 253, p.126882.
van der Ploeg and et.al, 2021. Characterization of high-grade serous ovarian carcinoma by
measuring functional signal transduction pathway activity.
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