Marketing Principles and Various Elements of Marketing Process - Essay Example

Marketing Principles Table of Contents Introduction 3 Task 4 (a)Various elements of Marketing Process 4 (b)Benefits and limitations of Marketing Orientation 5 Task 2 6 (a)Macro and Micro Environmental Forces 6 (b) Market Segmentation 8 (c) Targeting Strategy 10 (d) Consumer Buying Behavior 10 (e) Product Positioning 11 Task 3 11 (a) Product development and Competitive advantages 11 (b) Distribution Strategy 12 (c) & (d) Marketing Mix 12 (e) Extended Marketing Mix (3Ps of Service Marketing) 15 Task 4 15 (a) Marketing Mix for different segments 15 (b) Marketing products and services 16 (c) International and Domestic Marketing 16 References 18 Introduction Effective marketing principles and strategies increase the core competency of any company. UK is known for is growing fashion retail industry in terms of business. There are so many leading fashion retailers in UK such as Zara, Top Shop, and Miss sixty, Marks & Spencer etc. The large UK based fashion retailer Marks & Spencer is being selected for the purpose of the study. Marks and Spencer is one of the leading multinational fashion retail company based in London. There are company 718 retail stores of Marks & Spencer in UK. Moreover they have 361 fashion retail stores in other 40 countries across the globe. Marks & Spencer offers stylish high quality and Fashionable outfits. The company has the core competency within the industry to represents high quality fashionable clothes. The company gets supply of clothes from more than 2000 global suppliers and the company has 78,000 employees worldwide. Marks & Spencer is the leading provider of lady wear in UK clothing market. Moreover the company is receiving high market share in kids-wear and menswear. Apart from these business areas Marks & Spencer has also dedicated to do social welfare activities. The company has become zero solid waste and carbon neutral by implementing its effective five years eco plan for organization’s green credential. Marks & Spencer enjoys the advantages of more than 21 million footfalls every week in all the retail outlets. By providing effective fashion retail marketing strategy and product of high quality with effective customer services, Marks & Spencer has able to produce enormous number of footfall every week. It is the major achievement for the company as leading fashion retail chains globally. The study will reveal the internal and external analysis, competitive strategies, and purpose of marketing strategy in order to develop a marketing strategy for Marks & Spencer. This will help the company to attract customers. Finally the study ends with a conclusion. Task 1 (a)Various elements of Marketing Process There are different elements of marketing process such as marketing environment analysis, targeting strategy, market segmentation and product positioning. Marketing environment analysis deals with the impact of macro and micro environmental forces on the performance of company. Targeting strategy is used to identify the target audience for the products. Market segmentation is used to determine the various segments of customers with respect to different product line. Product positioning is used to identify the area in which the product will compete in a market place. These different elements of marketing process are elaborated in this study. (b)Benefits and limitations of Marketing Orientation Benefits The risk of failure in terms of newly developed product is reduced by the effective marketing orientation strategy that includes effective market research. Moreover the marketing orientation helps the company to identify the current market trend of the products. A successful product-led approach ca results higher profit for a company. Finally the customer feedback strategy can help the company to overcome the problems in product or services. Marks & Spencer has successfully implemented these marketing orientation strategies in order to achieve large market share by the effective market segmentation. Limitations Dealing with customers’ need it is not sure that company can achieve huge market share3 by this marketing orientation strategy. Now-a-days corporate perception and branding are important for a company to attract customers. In the present era of globalization market trend is changing rapidly. Company needs to diversify their products and services by reducing operational cost in order to cost control. Task 2 (a)Macro and Micro Environmental Forces Macro- Environmental Forces Economic Climate The emergence of global recession had lent a large impact on retail fashion industry in United Kingdom letting the sales volume dip along the period ranging from 2004 to 2009. Thus change in economic climate tends to largely affect the apparel industry of UK. Demographics The demographic profile in United Kingdom is found to largely impact the business performance of clothes retail industry. Consumers in UK are increasingly becoming highly fashionable and style conscious always. Legal and Regulatory The legal and regulatory bodies in UK have inspired the companies within the industry to produce and deliver the fashionable clothes as the people of UK have always tended to buy stylish and fashionable clothes. Technological Climate UK has the modern and advanced IT practices. The fashion retail industry needs advanced technology to do operations like keeping the record of stocks and inventory. Moreover to do the billing of products company needs modern technology. Information technology has great contribution to country’s GDP. Therefore the technological environment impresses the fashion retail industry to operate within the country. Micro-Environmental Forces Suppliers Efficient suppliers in limited cost are needed to cut down the operational cost. It will help the company to do the supply chain operations. Effective low cost supply of the ingredients such as raw material of clothes will help the company to cut down the operational cost. Moreover if company can deliver the finished products to the destinations with low distribution cost, it will help the company to meet the market demands (Goodwin, Nelson, Ackerman and Weisskopf, p.381). Channel Members The distribution channels of sales and marketing needs to work efficiently. They have to collect the raw materials of clothes in proper time and have to deliver the end products within the deadline. Moreover the promotional channel needs to organize various events and promotional activities in order to highlight the products and services of Marks & Spencer. Competitors The major competitors of Marks & Spencer are Zara, Miss Sixty, and Top Shop who are posing threat to Marks & Spencer’s market share within the fashion retail industry in UK. Competitive Strategy Marks & Spencer had employed the strategy to build the brand image in competitive market. Due to the resources of the company like policy of British suppliers, effective public relation company achieved quality control by building a good relationship with the suppliers. Marks & Spencer has applied the Top-Down approach in every outlet in order to standardize the brand image. Brand loyalty and customer satisfaction helped the company to achieve huge market share. (b) Market Segmentation There are three major factors in marketing strategies. The key factor which is implemented in maximum times by the company is market segmentation. Marks & Spencer have effectively done the market segmentation in order to raise their brand image in customer’s mind. The company has the maximum focus on the people of middle ages. They need to pay attention on all the variables for the purpose of market segmentation. Marks & Spencer has done the market segmentation like the following ways: Behavioral Segmentation Major numbers of Marks & Spencer clothes are of effective values and supreme quality which are available at reasonable economical price as well as premium price. The varieties of clothes are being purchased by the customers for special occasions. The company has effectively retained his loyal customers. The company has the profile of profound users which follows the Pareto’s ruling. The 80% sales of the company come from the 20% of loyal customers of the company. Profile Segmentation A customer who is well educated and has a good academic background with higher income level comes under this variable. Moreover, Marks & Spencer has the major customer base whose average age is between 35-54 years. The company’s potential customers are family focused and more importantly they are rich and active. Geographic Segmentation Marks & Spencer has opened their retail outlets in the centre Ares of cities in order to create the brand awareness in customers’ mind. Moreover they choose only wealthy, prosperous metropolitans and urban areas. Psychographic segmentation Marks & Spencer had mainly focused on the middle aged women who are energetic, active and fit as they are potential customers of the company. In terms of personality of people they have a huge customer base that has the higher self-esteem level. (c) Targeting Strategy The targeting strategy of Marks & Spencer is more about the Multi segment targeting. They have various ranges of clothes for every gender and every people. The company does not practice narrow targeting strategy. In terms of income level of people they have premium priced clothes as well as economic priced clothes. Now in terms of gender of people Marks & Spencer has a huge market share of menswear and ladies-wear. Moreover parents like to buy fashionable clothes for their children due to variety of kids-wear. Marks & Spencer target the people of high and medium income level as well as all categories of all the genders. (d) Consumer Buying Behavior The consumer buying behavior depends upon the interaction of consumer with the marketing mix. Moreover cultural factors and income level of people play an important role on consumer buying behavior. Marks & Spencer offer the dresses for every gender segment and they have various product ranges with respect to different price level with supreme quality. Therefore the strong brand perception about the clothes in customer’s mind helps the company to create a large customer base. (e) Product Positioning Marks & Spencer is one of the leading retail brands in world. The company has given attention on few important aspects in order to boost the brand in clothing industry. The company has effectively implemented the product positioning strategy. Marks & Spencer has positioned its clothes with high relaxation and superior quality. Moreover the company has the product range for the people of medium income level as well as people of higher income level and they have applied this product positioning strategy all over the world where they operates their business. Mark & Spencer have able to retain the old customers as well as they have also done their new customer acquisition by effective product positioning. Moreover the primary objective of the company is to position their promises before the product. It is cleared that better quality service can create a huge customer base of a company, which is being practiced by Marks & Spencer. Therefore by the effective product positioning strategy this company has became one of the leading fashion retailers in world. Task 3 (a) Product development and Competitive advantages Marks & Spencer has developed their fashionable clothes according to the customer needs. Moreover the company introduced products according to the social background in different areas. It is another important factor that they have introduced products according to various income levels of people. The company is popular for ladies wear and they have targeted the people with high disposable income and the people of medium level of income. It only can happen by the effective product development. Marks & Spencer is enjoying the competitive advantages by the implementation of competitive strategies. The company has implemented the simple pricing policy and the ST MICHAEL logo has increased the brand image in customers’ mind. The company was effectively founded and held good reputations for the shareholders. The products were gaining high customer value due to supreme quality. Moreover the effective value chain, differentiation in products and prices led the company to dominate in market place. (b) Distribution Strategy Marks & Spencer is one of the leading fashion retailers in UK. They implement their distribution strategy according to all the aspects of marketing mix such as product, price, place and promotion. These are discussed as following. (c) & (d) Marketing Mix Marketing mix of a company is the backbone of that company’s marketing strategy. Every leading company needs to analyze the marketing mix effectively and in order to do strategy formation. Marks & Spencer has analyzed this marketing tool to identify the current scenario in terms of marketing strategies and implementation activities in every five year. Marks & Spencer has reformulated its marketing plan in every five years. Moreover the company has developed the new strategies and plan for the next five years in order to do profitable business practices. Due to possible changes in world economy and the environment of business, Marks & Spencer has implemented this marketing strategy. Moreover the decreasing per capita income, change in buying behaviors of consumers and the low purchasing power and change in taste and preferences of the consumers lead the company to implement this marketing strategy. Apart from these four fundamental components of marketing mix that includes price, product, lace/distribution and promotion, Marks & Spencer has been measured other factors basis on unique distinctiveness of retail marketing. These are customer service, personal selling and visual merchandising. All global businesses of the Marks & Spencer are operated as franchisee basis. Therefore the company has able to perform in depth analysis in various regional markets and various consumers’ buying behavior through the help of the franchisee owners and management of regional people. This is one of the most important benefits of the company to understand different market preferences in a better way and by implementation of this strategy company can also compete with the regional fashion retail players in different foreign market as well as in UK’s market. Price: Marks & Spencer has implemented premium pricing for its high quality and fashionable clothes. Pricing strategy of the company has developed by taking into consideration the target segment of consumers especially their buying power and behaviors. This segment of customers believes that products of premium price are superior in quality. In order to retain this customer psychology, Marks & Spencer has to maintain premium pricing for the fashionable clothes. This company has segmented the all the clothes according to the price level. Marks & Spencer is a premium pricing fashion retail brand. So, the company use market led pricing strategies for the exclusive products. Product: Marks & Spencer focuses on the product differentiation in order to reduce the risk of short product life cycle and decreasing demand of clothes and apparels. There is various range of fashionable kids-wear; menswear and ladies-wear are placed in every retrial outlets of Marks & Spencer. Clothes which are offered by the company are recognized as the clothes of superior quality, attractive design and of different price levels. Therefore every segment of people such as higher level of income and medium level of income are the target audience of the brand. People of higher income level choose the premium priced products brand for better quality concern. The company has adopted the Change of style and trend in fashion industries efficiently in order to do the mass segmentation Place/Distribution: Marks & Spencer has chosen crowded location in order to establish its retail outlets to target potential customers. Every retail outlets of the company are situated in central areas of cities where there are high footfalls of the customers of different income level. The crucial objective of the Marks & Spencer is to influence the potential buyers for repeat purchasing with the help of visual merchandising inside the stores. The company has developed efficient distribution or placement of stock of clothes. Promotion: The major objective of effective promotion of the company is to attract their potential target customers who are demographically segmented as 30 plus age with high income and executive occupation. The promotional activities are designed and developed only to take attention of the people of this segment who does not think about to pay high price for the superior quality clothes and pleasing services through buying experiences. Marks & Spencer has also implemented the effective e-commerce business practices to increase the online purchase activities. (e) Extended Marketing Mix (3Ps of Service Marketing) People People that mean the employees of Marks & Spencer who used to do job in the outlets are well trained. Moreover the experienced professional outlet staffs enhance the purchasing experience of the loyal customers. Process Modern and advanced purchasing processes, which includes faster billing cards, loyalty cards and efficient customer services through the personal selling activities of exclusive fashionable clothes for all ages. Physical Evidence Physical evidence includes high-quality vibes of the brand and quality service design of every outlet in UK. These service marketing strategies provide similar physical evidence and purchasing experience to the people in every retail outlets of clothes in UK. Task 4 (a) Marketing Mix for different segments Market segments can be described by the different income level that includes different cultural background and different age group. Marks and Spencer’s fashionable clothes target the people of different cultural background because in the competitive market and according to the cultural differentiation of people companies need to do proper market segmentation. According to this they can create brand awareness in the mind of various people of various cultural backgrounds. In terms of different age level the needs of people changes. Marks &Spencer have the clothes for all the age of consumers. From children to old age people can get various ranges of clothes. Moreover, the promotional activities and attractive advertisements suits for the different product and services. (b) Marketing products and services Considering the market is important for the companies to produce products. The demand of product and services increases due to another factor like the limited available resources. The major resources for a company should be land, labor and capital. Marks & Spencer can achieve success by the implementation of market forces. Therefore the customer should decide when to buy and what to buy. Therefore it is feasible that marketing of products and services are important rather than the customers. (c) International and Domestic Marketing Companies when take their business across the border of country then the marketing for business known as international marketing. The strategies like marketing and service mix, market identification, targeting strategy, macro and micro environmental analysis are required to expand business globally. Implementation of these strategies will help the company to compete in global market. On the other side domestic market represent the single market with narrow version. Domestic market can be represent as domestic trading in which firms the companies normally face one type of economic, competitive and the market issues to deal with the customers of similar type. In domestic marketing also has to do the various market segmentations. References Goodwin, N., Nelson, J., Ackerman, F., Weisskopf, T., 2008. Macroeconomics in Context. New York: M.E. Sharpe.   Print  Download  Services Writing services Essay writing service Dissertation writing services Coursework writing service Assignment writing service Proofread my essay/dissertation Information Help About us Contact Us In the press Verify your credit or debit cards Sitemap T Read More