Principles of Marketing

Module code: BC07-1

Assessed group report

Prepared by:

Bilkis Akhter – 17901362

Afiya Fazil

Naina Kumari

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Contents
A: INTRODUCTION..................................................................................................................................3
Aim..........................................................................................................................................................3
Marketing...............................................................................................................................................3
Clarks.....................................................................................................................................................3
Clark product range..............................................................................................................................3
B: SEGMENTATION................................................................................................................................4
Benefits of segmentation:....................................................................................................................4
Bases of segmentation.........................................................................................................................5
Clarks segmentation.............................................................................................................................6
C: TARGETING.........................................................................................................................................6
Different types of targeting:.................................................................................................................6
Clark targeting.......................................................................................................................................7
D: PRODUCT............................................................................................................................................7
Product levels........................................................................................................................................8
Clarks product level..............................................................................................................................9
D: Conclusion............................................................................................................................................9
E: References..........................................................................................................................................10

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 A: can avoid INTRODUCTION

Aim
The report below aims to provide a detailed analysis of segmentation, targeting and
product level of well-known shoe brand named Clarks. It also consists of marketing
strategies adopted. The report below also provides an insight into the company’s
history. Finally, it consists of an overall review of the analysis. Aim can be written above
introduction to the company

Marketing
Professor Philip Kotler cited in (Heidi Cohen, 2018) portrays, marketing as building
customer awareness, in turn, satisfying desires at a profit through, communicating the
significance of products. It is considered as a crucial business function that emphasizes
on attracting customers. Better planning and execution of marketing will lead
businesses to experience increased sales, brand recognition and boosted profits.
Marketing strategy is based on marketing mix which, are the 4ps (product, price, place,
and promotion). Setting right combination of 4ps marketing mix will enable to gather
customer interest by executing a successful plan. Different authors’ have a differing
perspective on marketing as listed below: you may add one more definition but please
use Harvard style referencing overall

Clarks
Clarks is a well-established global business, founded in the UK. From being a small
Somerset sheepskin business in 1825 to being a foremost shoe retailer in the UK.
Clarks is acknowledged for its shoes around the world. It has over 15,380 employees,
selling fifty million pairs of shoes a year, and generating approximately 1.492 billion
GBP revenue. The company has more than 1400 stores in more than 75 countries
around the world.

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Clark product range
A consumer more fashion concerned, constantly look forward to innovative shoes that
would enhance their everyday looks as today’s generation is all about fashion. Clarks
markets their shoes to different consumer segments in order to create a powerful
position in the market. They focus on providing consumers with unique design, good
quality, comfort and expert service that attracts a large number of customers. The brand
offers a variety of shoes for women, men, boys and girls of all age groups. This gives
them a competitive advantage over their rivals by attracting men and women of all ages.

B: SEGMENTATION
Segmentation helps in dividing a large market into clear different segments. These
markets are divided on the basis of similar needs and wants of the people enabling the
market to meet the requirements of their customers.

It is the process of segmenting potential customers in a market into different segments

with similar characteristics. The groups created consist of consumers with similar
interests, locations or need. (TrackMaven | Marketing Analytics Software, 2018)

Benefits of segmentation:
There are several benefits associated with segmentation that a business considers to
achieve their goal.

1. Segmentation helps the company in maintaining a competitive position in the market

and satisfy their customers.

2. It helps in the rise of various types of effective promotional means. It is easier to

create different promotional ways for the different segments of the market.

3. Market segmentation helps the company in knowing the exact position of the
segments of the company in various markets. Making it easier for the company to know
under which segment more work is needed to be done.

4. Enables the company in knowing better that which customers are to be targeted in
which area relating to their choices, lifestyle, and status.

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5. Scarce resources lead to better utilization. You may want to write the points as
paragraph

Bases of segmentation
Dividing the group of customers into different segments according to certain
characteristics that are similar. These characteristics range from Geographic,
demographic, psychographic, and behavioral.

 Geographic segmentation

When a large market is divided into smaller regional units. The division is done on the
bases of state, region, district and so on.

For example, Mcdonalds change their menu from one region to another because
customers have different preferences based on where they are located.

 Demographic segmentation

When the market is divided into smaller segments into various factors such as age,
gender, income, occupation.This is a common segmentation practiced by most
marketers.

For example, people with high income go for luxurious products. Therefore, companies
like Ferrari, Porsche, and Mercedes target their products to consumers with high
income by segmenting their products for people who prefer luxury.

 Psychographic segmentation

The audience is divided based on the factors such as interests, opinions, lifestyle, and
attitude.

For instance, a person living a luxurious lifestyle may prefer having an air conditioner in
a room as a need whereas a person living a traditional lifestyle may think of it as a
luxury.

 Behavioural segmentation

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In this form of segmentation, the customers are organized into several segments based
on their approach towards the product offered and their understanding of the product.
There are different types of behavioral factors such as status, the degree of loyalty, the
rate of usage.

An example would be a sports person who would prefer energy drink as a basic
whereas a normal person would buy it just for the taste.

Clarks segmentation
Clarks is a company that provides a vast range of shoes for both men and women.
Therefore, it is said to be following demographic segmentation. The shoes are
segmented based on gender and ages. The brand targets men and women of all ages
as well as boys and girls. This marketing strategy applied by Clarks gives them a hedge
to come over their rivals as well as. Income also plays a vital role in the marketing
strategy used by Clarks. The shoes are also segmented according to consumer income
that is, the company provides a wide range of good quality shoes for low-income people
as well as high-income people. You are expected to have application for all four
segments please. Not only one. This is very important to apply on all four segments

C: TARGETING
Targeting is dividing customers into groups and focusing on serving one or a few key
segments.

A target market is a group of buyers who are most likely to buy your products and
services and for which a business positions its products and services. (The Balance,
2018) Harvard style ref.

Different types of targeting:

In a target market, there are various kinds of customers for different products. The
company usually produces goods and services which targets different people with
different preferences.

 Undifferentiated marketing

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Under undifferentiated marketing, the company doesn’t go along with the concept of
market segmentation, and they provide the whole market with only one offer. The
company does not provide different products for different people, instead target the
whole group. Provide an example

 Differentiated marketing

A strategy used by marketers to increase sales growth in which the company targets
several market segments or market niches to attract different customers with different
products and developing separate marketing strategies for each. Provide an example

 Concentrated marketing

From all the various marketing strategies, concentrated marketing is quite different. A
firm decides on targeting a selected range of customers to buy their products. This
approach is less costly compared to differentiated marketing approach. They mainly
focus their products on a particular market segment and not to everyone in general.
Provide an example

Clark targeting
Clarks use differentiated marketing for their products. It follows a varied range of
products, as it has shoes for different age groups, income groups, and gender, for
instance, they offer soft sole shoes and sandals for men and women above the age of
45. And regular heels, platforms, and various other shoes and sandals for young men
and women, as well as shoes for children.

Different Customers have different incomes, therefore Clarks provide shoes for all
income groups as well. People with a low-income rate would prefer less expensive
shoes, and customers with an average income level would be able to afford Clarks
shoes which are at a reasonable cost and customers with high income are able to
purchase the shoes from the high-cost range.

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 D: PRODUCT
A product is anything with the potential to satisfy consumers and is received with an
exchange for money providing benefits to the market. In manufacturing, it is a raw
material when purchased and sold a finished good.

As Schwartz explained, “A product is anything a firm markets in order to satisfy

consumer wants or fill a commercial need and includes peripheral factors that contribute
to consumer’s satisfaction.” Or as described by Rustam S. Davar, “From the marketing
point of view a product may be defined as a bundle of benefits offered to consumers.”
Please follow Harvard style ref.

Product levels
Below are the three levels of products

Core product:

The core product is the root of the product which determines the utility of the product
derived by the consumer by using the product. In other words, it is the service attained
by the customers. There could be more than one core product offered. If the school is
taken as an example, the education that the school provides is the core product
because it is the benefit that the consumer expects.

 Expected tangible product:

An expected product is the actual physical product which can be touched, held and felt.
Manufacturing of the actual product takes place after the core product has been definite.
The example mentioned above, the expected products are the buildings, books and so
on.

 Augmented product:

The augmented product is again the intangible part of the product. It is an additional
benefit and service provided by the manufacturer to the customers to satisfy their need
to the fullest. It is a strategy used by the producer to make the product more appealing
to the consumers hence attracting more number of customers to increase their sales.

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The augmented product for school is the extra benefits provided by the school that is
the sports, student’s council. (Bhasin, 2018)

Figure 1: Product levels of Clarks

Protection and
Core product fashion

Leather and
Expected product crepe rubber

Free standard
Augmented product deliver

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 Source: Author

Clarks product level

Clarks have shoes with three product levels. The core product is protection, and fashion
which is referred to as the part of the product that is beneficial to the customer and
makes the shoes valuable. The actual product is leather and crepe rubber. The
company produces its shoes using leather that gives the customers great comfort and
the soles made out of rubber giving it the great quality that it has. Lastly, the augmented
product of the brand is the free standard delivery and the option to return any goods
within a limited period of time which would enable more people to order shoes online.
Hence, the good customer service would allow more customers to shop in Clarks

D: Conclusion
The potential of footwear is exceptional, from its function as being a shield to our feet to
being an item of decoration for fashion. Clarks footwear reflects their originality whether
it is the unique features of the shoes provided for women or the bold leather boots for
men. The brand used demographic segmentation resultantly, targeted men, women and
kids of all ages. Clarks core product is the fashion and protection its shoes provides.
With their unique design and affordable prices, it is able to capture a larger market of
the segment.

E: References

Heidi Cohen. (2018). 72 Marketing Definitions - Heidi Cohen. [online] Available at:
https://heidicohen.com/marketing-definition/ [Accessed 31 Mar. 2018].

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TrackMaven | Marketing Analytics Software. (2018). Market Segmentation — Definition —
TrackMaven. [online] Available at: https://trackmaven.com/marketing-dictionary/market-
segmentation/ [Accessed 31 Mar. 2018].

The Balance. (2018). What Is a Target Market and How to Find Yours!. [online] Available at:
https://www.thebalance.com/target-market-defined-1794389 [Accessed 31 Mar. 2018].

Bhasin, H. (2018). What is a Core product? Core product explained with examples. [online]
Marketing91. Available at: https://www.marketing91.com/core-product/ [Accessed 31 Mar.
2018].

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