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Strategic Marketing Management

Lecturer: Hector John dela Victoria

EDEXCEL ASSIGNMENT

Presented by Ritesh Kumar Shrestha Student Id: 46310 Date: 10 June 2013

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TABLE OF CONTENTS
S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Introduction Task 1.1 Task 1.2 Task 1.3 Task 2.1 Task 2.2 Task 2.3 Task 3.1 Task 3.2 Task 3.3 Task 4.1 Task 4.2 Task 4.3 Conclusion References Topic ………………………………………………. ………………………………………………………. ……………………………………………………….. ……………………………………………………….. Page 3 4-6 7 8

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the recent marketing actions of M&S will be analysed and evaluated and the improvement that has been done since its 1998. 3 . It has certain missions and values. Similarly. and finance and house ware. It operates around 30 countries creating the value of 118 billion pound. clothes.Introduction: In 1884 Michael Marks and Thomas Spencer founded the Marks & Spencer which is now one of the UK’s biggest retailers in terms of foods. These assignments will also evaluate the reason why M&S nearly collapse and what was the recovery program done to overcome from such problems. The main purpose of this assignment is to analysis the strategic marketing management of the Marks and Spencer using different strategy and marketing tools.

1 Role of strategic marketing: Marketing is the process where management are accountable for identifying. expecting and pleasing the customer needs profitably. (http://www. good companies meet up with needs whereas great companies build markets. assisting and satisfying the customers requirements. In the words of Philip Kotler. distribute the resources according to marketing deeds and plan the suitable organization formation to make sure that the desired performance is attained.staffs.TASK 1: PRINCINPLES OF STRATEGIC MARKETING MANAGEMENT 1. According to The Charter Institute of Marketing. build up and commercialize the new products and services.jsp) Marketing plan helps to inspect and analyzed the marketing aims and objective and give the foundation for the marketing assessments. It also presents with detail viewpoint of the business and provides the information to build the strategy for the target markets and customers as well as served as a tool to measure the performance. marketing is tactical business job that generate value through motivating. 4 .uk/courses_and_study/courses/cim-professional-postgraduate-diplomain-marketing-tcm4231875.ac. The strategic marketing roles are to build up the strategy to handle the participants. spot market opportunities.

promotion and distribution activities fot the marketing plan along with the specific activities such as tranning employee. 5 . Determing the sequence of the activities. structural change ans purchase of financial activites.Sequencing And Scheduling of Activities The marketing managers can offer purpose. There are different marketing activities such as:       trade and conference shows advertising development of promotional and informational material progress of displays and signs online information telephone promotions Developing the schedule of marketing activities is a difficult task as it involves different activities that are required to implement the plan. Integrated marketing is integrated marketing can be described as: ▪ A process of controlling various activities such as marketing projects. vendors and the customers ▪ Constructiong and controlling all the in and out going marketing communtications. The marketing manager who has a duty to implement the plan should prepare the timetable of completing the marketing activities. path and arrangement to different marketing activities. Hence such activities should be identify and distingused from other activities which can be performed simuntanesouly with other activities. Integration marketing brings all the marketing department in a single stage and united them. assets. Recognizing the specific activities to be performed such as pricing of the products. There are various marketing activities that are to be performed in a prearranged order. ▪ It contains managing the people. Some activites requires initial planning and time before they are completed while others can happen more quickly once the plan has start. 2. process flows and authorization. Established the time frame for each activity to complete. 3. The following are the necessary steps that are required for scheduling and timing of the activities: 1. Integration of Marketing Activities Integrated marketing is an important part of marketing department of an enterprise.

establishing the sequence and fixing the schedule. Implementation of effective marketing activities depends on the resources in form of people. as group and individuals. The main objective of marketing audit is to pin point the problems in a current marketing activities and to take necessary action to solve the problems. Formal controls are the process developed by the firms to operate the marketing strategy successfully where as informal controls are traditional employee based that deviously influences the employee’s behaviours. The desire results can only be achieved through marketing activities if it is executed properly. To decrees the difference on the actual activities and the company expectation. A good marketing system helps the organization to identify the problem before they occurs. there are two different kinds of marketing controls: formal and informal controls. 6 . Hence. marketing activities should be analysed and monitor on a regular basis. Monitoring and Control Elements The best way to analysis the performance and whether the objective has been achieved or not is to take a help of marketing audit. Basically. there might be a difference between actual act and performance. money and technology and assistance from suppliers and partners.Resource Requirements Resources are required to complete the task after recognizing the marketing activities.

The messages that the company delivers to it’s market. 8. Supply channels used by the companies to join with customers. preparation. All of the planning. services and handle the customers. The look and feel of the company’s marketing materials 6.1.2 Processes involved in strategic planning: The process involves thinking about every step the company takes to sell. The experience that the company delivers to it’s market and customers 7. 3. The actions of the company’s sales and service representatives. The key points for this process are as under: 1. 2. The following points are the key to this process: There are various processes involved in strategic planning which necessary action a company’s takes to sell their products. 7 . service and manage the customers. Pricing strategy of the company 4. 5. forecasting and measurement of the company’s investments. Understanding of market and strategy to infiltrate it.

During the increase in corporate strategies. coherence and internal constituency of a company's strategic decisions that position a company in its environment and give the firm its identity.the unity.. its power to mobilise its strengths... Marketing strategic are closely linked with sales as customer being main basis of earning revenue by the business. It is more effective and useful if it is an important aspect of the business strategies. Marketing strategies is the process that allows the business organization to concentrate on the limited resources for the major opportunities to increase the profit and obtain the constant benefit from rivalry... assignments and business goals some aspect of marketing strategic are deducted." Marketing strategies is actions that allow the companies to utilize it useful resources in favourable opportunities to increase the sales and achieve the desire goals. defines corporate strategy as ".a pattern of decisions . (which represent) .3 Links between strategic marketing and corporate strategy: Kenneth Andrews (1987). and its likelihood of success in the marketplace. 8 ..1.

SWOT analysis of Marks and Spencer Strengths        Sales of clothes have stabilised. Andrea White and Melanie Davies – head of merchandising Previous poor performance. finance director. seven straight quarters of falling sales More expensive than other high street stores – limited market.1 Assess the value of models used in strategic marketing planning: There are various models used in assessing the strategic marketing planning such as Porter’s five force model. and food sales have increased New chief executive with fresh ideas and sales led growth Good advertising Used iconic models to attract core target group. Product Lifecycle model and Ansoff matrix.TASK 2: TOOLS FOR DEVELOPING STRATEGIC MARKETING STRATEGY 2. STEEPLE analysis. SWOT analysis. BCG matrix. For this task I have used SWOT analysis a model to assess the strategic marketing planning of Marks and Spencer. George Davies Product diversification – home and furniture Turnaround in sales and growth    Weaknesses  Resignation of three key members of staff: George Davies. Focusing on older generation may lose younger market. Opportunities  Rebuild the company’s image with continued advertising such as the successful M & S food adverts    Focus on core market UK has an ageing population Introducing wider ranges such as Threats   Previously tarnished reputation and image Competitor product ranges which directly compete with M & S food such as Tesco finest  Decline of the high street 9 .

and developing the plan to understand that positioning. promotion and place tactics. Placement – Placements means the way products are sold or reached the buyers. Marketing 4 P’s: 1. support and guarantees.   Internet food shopping but opportunities may be limited Other services – eg banking. and the way it links with the user’s needs and wants. Pricing . It also refers to the channels through which the products or services are sold at different geographical region. The choice of products contains elements such as warranties. price.This is related to fixing the price for a product’s including the discounts. age groups etc.Per Una. 2. Autograph and Classic collection to stores  Use younger more contemporary models to attract younger generation. Product . insurance.The product tactics are engaged with real goods and services. The organization strategic positioning contains the plan for required position in future based on the present and expected developments. MARKETING TACTICS Marketing tactics typically includes four P’s such as product. 3.2 Link between strategic positioning and marketing tactic: Strategic positioning is the future positioning of the organization considering the environmental change and awareness of that positioning. savings etc. 10 .     May lose youth market General increase in internet shopping Social tastes Branding 2.

Payne and Ballantyne developed six market models.4. Relationship marketing is known as marketing strategy whose prime focus is to set up and keep profitable and long-lasting relationship with the customers. 11 . Christopher. Relationship marketing includes perspective of customer’s wants and needs throughout their life cycle and making available of different kinds of products and services. sales endorsements. The main objective of relationship marketing is to enhance the loyalty of the customers. advertisement and individual selling’s. In this model the central focus is on internal market which stress away the main subject of marketing that is customers. promotional teaching. 2. Promotion . The model is formed with six role-related area where each part represents the scope of relationship marketing and relating relationship with various organizations and persons that can contribute directly or indirectly in effective organization marketing.It contains ads. The important aspects of relationship marketing are:      Surpass Customer happiness Customer value orientation Long term thinking Greater focus on customer services High amount of customer contact Large customer contact PAYNE AND BALLANTYNE’S SIX MARKETS MODEL In the year 1991.3: MERITS OF RELATIONSHIP MARKETING: RELATIONSHIP MARKETING Relationship marketing became popular in 1980s when the marketers start to focus on customer retention from customer acquisition.

Through effective customer relationship practice and approach it is easy for the companies to develop ideal customer experience. keep the customer and include new customer in the existing customer portfolio. 12 . placing the ‘customer’ at the centre of the model. the six markets model has put a customer market in the middle bounded by other five markets. Customer Markets The customer relationship is still a main focus point for all the company activities. Hence.This has led to a reshuffling of the six markets model.

p. internal market includes employees. They are also known as vertical relationship as it mixes all or fraction of supply chain. Recruitment Market As your staffs are arguably the most valuable asset to your business it is key to involve the providers of staff. Internal market Basically. Referral marketing is progressively more effective way to use the resources for creating business. influence market are essential to an organization as the member of this market consist of bodies that effect directly to an organization. Hence.23) Referral markets Referral marketing refers to the marketing done through word of mouth to create recommendation.Supplier markets They are known as business to business relationships. 13 . Influence markets An influence market includes the outside bodies which impact on the business environment of the organization. In terms of relationship market. it is very important for an organization to find out the main influencers for their market to protect the centre business (Cranfiled School of Management 2000. They are very important for marketing as they are the one that build the relationship with the customers.

sales letters and advertisement promotes the end results that satisfy the customers wants. By adding the new products and services enhance the sales of the business in the following ways:  Draw new customers who were before not keen in the existing new products and services. the company should create a reason for those customers to do the business with them. They should share such information to all the people through effective advertising. faster and easier services in an affordable price. 2. Hence. it is necessary for the companies their website. 14 . 3. the companies get the chance to sell the new products those customers who will visit again for the help. The company should provide the different features and services in compare with other companies to the customers. Separate from Competition There are different companies in the markets now day’s providing similar products and services to the customers. Become a Valuable Resource The Company should be able to make themselves as a valuable resource in terms of company’s view and customers. 4. So.  It also helps to increase the sales by attracting existing customers who are keen use or have a new service and products. By doing this. Keep Adding Something New The Company can increase its sales by adding new products or features time and again.1 STRATEGIC MARKETING TECHNIQUES: There are various strategic marketing techniques that help to increase the growth in a market which are described as under: 1.TASK 3: TECHNIQUESD FOR STRATEGIC MARKETING 3. Promote the End Result The customers are really keen to get benefit from the products not keen to have the products. The company should help the customers by providing free information.

the company differentiate its products in a different way to make them unique in compare with the competitors.3. Cost Leadership Strategy: This strategy involves the firm winning market share by appealing to cost-conscious or pricesensitive customers. Differential Strategy: Under this strategy.2 Strategy Options: Porters have explained three different types of strategies that business used generally to get the maximum advantage. The way of differencing the products depends on the nature of the business and product and services themselves. Porters have explained these strategies in a two dimensions such as strategic scope and strategic strength. Focus Strategy: The company that use the focus strategy focus on a particular segment of the market and understand that market and produce the products in accordance to the needs and demands of 15 .

milk it and do not commit any more resources.chance on possible main SBU’s for furture Growth . Shell Directional Policy Matrix: Shell Directional Policy Matrix is the modification of Boston Matrix.Cash generator for expansion somewhere else.just like a cash cow.that markets.market growth focusing on more resources Custodial .Important resource are firmed upon SBU Try harder . 16 . The position of Business Unit (SBU) in whichever cell of the matrix points out the various strategic decisions (http://marketingteacher.html) The zones are explained as under:   Leader . the company who use this strategy tends to have a good customer loyalty. Double or quit .     Cash Generator . The horizontal axis represents the forecast of sectors profitability whereas vertical axis represents the competitive ability of the company’s. Hence.Might be weak in long term perspective but its ok for now.com/lesson-store/lesson-shell-directional-policy-matrix.

3 Strategic marketing objectives: Marketing mix-7 p’s: (http://marketingteacher.html) Price There are different ways of pricing the products. Divest -. Clear up the cash as soon as possible. Product Products are the tangible assets that can be purchased or sold. Promotion Promotions is the marketing tools where the organization markets its products. 3. But. The best price of the products is the one that provides best value to the customers. Place Place in other words channel is methods from where the goods are send to the user or the customer from the producer or manufacture. Physical Evidence Physical evidence is the substance of a service. 17 .cash moved to SBU’s by greater probable. consumers rely more on material cues as there is no physical aspect to service.  Phased withdrawal .com/lesson-store/lesson-marketing-mix.

The services are created and used at the same time whereas. the customers experience changed to fulfil the needs of the individual who consume it. Process There are a number of perceptions of the concept of process within the business and marketing literature.People People are the valuable aspect of any service or experience. 18 .

there has been an economic meltdown in various countries along with UK. it has opened the markets for UK companies to invest in Eastern Europe and vice versa. social. Legal analysis considers both of this aspect and develops the laws such as consumer’s law. People prefer to buy online nowadays instead of going into the stores. there has been a positive sign of recovering from such economic meltdown. technology is vital nowadays for any business organization LEGAL – Legal has two aspects external and internal. ENVIRONMENTAL –This includes all the things that persuade by the surrounding environment. In some countries there are certain laws that effect the business environment whereas some companies maintain certain policies for themselves. economic.Due to the recent recession. The management of the company has been replaced by the IT system. Hence. 19 . Opportunities can be in the aspect of new markets and threats can be the alcohol being socially accepted. Consumers are hopeful and there has been a boom in retail industry. safety standard. However. TECHNICAL –Technologies are playing a vital role nowadays. legal and environmental) factors will to some extent apply to the retail industry UK. labour law etc.1: Changes in external environment: All of those (political. SOCIAL – The change in the lifestyle and the taste of the consumer can be as opportunities or as threats.TASK 4: RESPONSE TO CHANGE IN THE MARKETING ENVIROMENT 4. technical. POLITICAL – As UK is on European Integration and Free Trade Agreements. ECONOMIC . The fear is in terms of legal cost in terms of health and safety.

This intended affected the M&S brand global brand value.2: An internal analysis: There is a strong corporate personality of M&S    Renowned brand name Defensive culture and corporate principle Confidence and Superiority.  Being closer to the customer: For this the M&S are opening some stores in big cities for 24 hours. It is also plannig to enter into the housing business such as furniture and gifts which is in a boom nowdayz. It will fix the price that customer are able to pay or afford to buy it. 4. For example.  Recovery plan for Clothing: The company is planning to boost the confidence of their customers in the clothing business.4. when M&S closed the store in France. 20 . Introducing the new trendy cloths for differed age groups male and female with different sizes is what it is planning to do.  Expansion in growing product areas such as Food. it was not able to provide the same level of protection and benefit that employees of M&S staff expect. Home and Beauty: M&S foods have been widely accepted by the customers and has creaeted a trust among the custoemers.3: Strategic Marketing Responses: a) Total focus on UK retail The company possess only the products and brand that belongs to M&S and hence provide the quality and value for money service to the customers.  More intensive use of space: Selling space will be reallocated to higher growth product areas to maximise returns per square foot. In certain circumstance M&S was forced to break down in its principle.

firms are successful in their fights and become a dominant factor in the market. cost cutting measures and closure of loss-making businesses To give priority and recover its UK business.b) Value realisation. 21 . In some case. it is able to create and gain dominance global brand. M&S is able to make its marketing strategy effective. In terms of M&S. Conclusion: Competitive marketing system motivates the firm to target larger market share. M&S aims to close down its non-core business and assets after discussion with its employees. From the company perceptive being dominant is good as it increase the profit where as from society’s perceptive the dominance may not be desirable. By applying different marketing strategies with its advantages and disadvantages.

wikipedia. 2008) – pages 12-36 Kotler P.wordpress.marksandspencer.businessballs.Principles of marketing.REFERNCING: http://en.com (accessed on 25th may 2013) http://www.wikipedia.com (accessed on 25th may 2013) Hasting H.org/wiki/Marketing_strategy(accessed on 25th may 2013) http://en. International edition(edition 2008) – pages 23-67 22 .com (accessed on 24th may 2013) www.Improve your marketing to grow your business: insights and innovation that drive business and brand ( Wharton school pub.org/wiki/Marks_%26_Spencer#Marketing (accessed on 26th may 2013) http://manifestedmarketing.