MARKETING – MARKS and SPENCER Marks and Spencer is one of the leading British retailers founded in 1884, dedicated to the sales of a host of products in categories such as clothing, homeware, beauty and food…
One of foremost steps in creating a successful marketing strategy is that of Market Segmentation, which refers to the division of a whole market for a product into smaller segments based upon the characteristics or aspects that are shared by the groups. By conducting market segmentation, a business is able to understand and evaluate various aspects of each division, group or segment in order to target a group or several groups that are then catered to with different marketing mixes (Vieceli & Valos 1998). As buyers become more diversified and unique, market segmentation acts as a key tool in designing the marketing strategies of successful organizations who understand that the diverse characteristics of customer needs, wants and preferences make it a requirement for any business’ success that the nature of its customer’s needs and wants is precisely defined and then handled accordingly (Lamb, Hair & McDaniel 2011). Market Segmentation can be conducted on the basis of four primary variables that are Geographic, Demographic, Psychographic and Behavioral and will be discussed individually based on their relevance and applicability to Marks and Spencer. Geographic Segmentation: World region or country: The primary market for the retailer is still the United Kingdom; moreover, it has also expanded into Asia, Africa and other European nations. City or metro size: The location of Marks and Spencer shops is primarily Major cities with population crossing 4 million and mainstream cities with population above 1 million. Density: Urban and suburban population. Demographic Segmentation: Age: Middle-aged. The average age of a customer can range from 35-55. Gender: The existence of product categories such as women’s clothing, lingerie, beauty, kids, home furniture, food and gifts seems to attract a largely female audience but that does not mean that men are not M&S buyers. Family life cycle: Customers are usually single, married, married couples with children, unmarried couples and older people who are family oriented. Income: ?30,000 and above per annum Psychographic Segmentation: Social Class: Usually middle class and upper middle class buyers looking for products that are of a decent quality but also economical and suitably priced at the same time. This suggests that customers of M&S seek good value for money. Personality: Customers are not generally perceived as trendy, fashionable or imaginative when it comes to choices related to clothing. Older customers are not considered to be ambitious or achievers who wish to shop at the retailer to project a sense of success and affluence (Business World). Behavioral Segmentation: Occasions: The M&S shopping experience is not limited to special occasions; buyers may shop at M&S for regular commodities and go to other high-end retailers for special occasion shopping such as Christmas. This was reflected in a drop in sales of M&S by 3.8% for general commodities during the holiday season of 2012 (Ruddick 2013). Benefits Sought: Users seek economy and convenience when shopping at M&S as much of the commodities are affordable and not high-priced. Loyalty Status: Customer’s buying behavior for regular and basic commodities such as grocery and basic clothing is low involvement, habitual buying behavior. Therefore, ...
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2,185..9 million and non-current liabilities of ?3,076.6 million. On April 3, 2010 Marks and Spencer was financed by Total liabilities of ? 4,967.3 million consisting of current liabilities (due within the next 12 months) of ?1,890.5 million and non-current liabilities of 3,076.6 million.
A lookout for prior to zeroing down upon a company are two aspects define the degree of responsibility that a company complies to while operating its business and their crucial nature often drives these companies to reach out any measures for accomplishing them.
However, the firm faced significant challenges throughout the 80s due to many factors like poor show of its own brand in the Canadian operations as opposed to its other local brands viz., Peoples/D’Alliard’s, failure to reach profitable customers in France, and the need to refurbish stores across UK for greater customer satisfaction.
In the context of the first category, a country’s existing unions are merger so that strong social units are established (Towers and Terry 1991). Such practice is common in Austria and Germany. In Germany, the most important merger of unions developed in 1998; three were the unions participated in this merger:’ the Textile and Clothing Union, the IG Metall and the Wood and Plastics Union’ (Towers and Terry 1991, p.53).
M&S has over 21 million people visiting their stores every week. They are the leading sellers of women’s wear and lingerie in the UK with 700 stores operative in UK. M&S is an expanding business internationally and has started its operations in many countries of the world with around 390 stores in Europe, Middle East and Asia.
The essay analyzes marketing in fashion. The Zara fashion company defines the global market environment in accordance to the marketing variables of psychographic, demographic, behavioral, and the demographic factors. ). Further, the company establishes on the essence of technology in compromising the negative forces.
The company also takes pride in the fact that it is doing the business in a responsible manner, thoughtful about the environmental concern and taking due care to make sure that the company is able to reduce the carbon footprints. In fact it has set for itself a target of becoming carbon neural and sending no waste to landfill by 2012.
M&S has a share of 11% in value market share and 11.2% in the volume market share. Food accounts for 51.1% and a market share of 4.3 %. (www.yahoo.org). Marks and Spencer Group plc was founded in 1884 and is headquartered in London, the United Kingdom.(Business Week Dec 6,2008) The international business of M&S accounts for 7.9% of the group's turnover.
There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants . The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology.
The company initially had a policy of selling only those goods that were manufactured in Great Britain but with the increasing competition such policy was no more continued. Marks and Spencer, also known as M&S or Markies, made its mark with
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