Marketing

Contents
Introduction......................................................................................................................................1
LO1 Understanding the principles of marketing.............................................................................1
P1.1 Discussing the various activities carried out in marketing department in H&M................1
P1.2 Explaining market segmentations as a tool to identify customers......................................1
P1.3 Discussing the marketing mix in the business of H&M......................................................2
LO2 Understating market research and market analysis methods...................................................3
P2.1 Describing the aims of market research and market analysis..............................................3
P2.2 Explaining market research methods...................................................................................4
P2.3 Describing market analysis tools and techniques................................................................4
LO3 Application of market analysis techniques..............................................................................5
P3.1 Using market analysis techniques for researching the target market for a certain product.5
P3.2 Interpreting the findings of market research and market analysis.......................................5
P3.3 Presenting the findings to the marketing team....................................................................6
LO4 Understanding the use of E-marketing....................................................................................6
P4.1 Evaluating various methods used for E-marketing of H&M...............................................6
P4.2 Describing how H&M’s online image can be managed......................................................7
Conclusion.......................................................................................................................................7
Bibliography....................................................................................................................................7

Introduction
Because of the globalization, the competition among the firms has increased a lot. The marketers
are trying to initiate new marketing strategies to attract the customers. Marketing plays a big role
in attracting the customers. It is a combination of some activities that help the business to
communicate its offering to the customer in a better way so that they are influenced to purchase
the products and services. In this report, the marketing efforts of H&M will be considered by
following their activities like different types of marketing functions, marketing roles and
responsibilities etc.
LO1 Understanding the principles of marketing
P1.1 Discussing the various activities carried out in marketing department in H&M
In this modern era of business, marketing has great importance in every type of business
organization. There are many marketing elements which are necessary to overlook for
maximizing sales and attracting more and more customers for H&M. (Basic Principles of
Marketing, 2020)
 Website: It is the most essential element in the marketing department of an organization.
H&M has their own website which acts as a proof of their brand recognition worldwide.
People from any country can easily visit their website to check out and buy products.
 Social Media: Social media plays a vital role in the modern marketing scenario. It is
essential to officially appear in various major social media platforms such as Facebook,
Instagram, Twitter etc. The marketing department of H&M ensures giving back-to-back
new updates about their offers, discounts and upcoming products in their official pages in
various social media platforms.
 Advertisement: There was a time when business organizations used to attract new
customers through radio and newspaper advertisement. But, in this 21 st century the ad
scenario has been transformed into television, magazine and online advertisement. H&M
is always concern to market their products through online, tv, newspaper and colorful
magazine printed ad as well.
 App: A good marketing element in this modern era is to build an official app for android,
apple and pc users. H&M has their official app in mobile – android, IOS and pc –
windows and mac as well.

P1.2 Explaining market segmentations as a tool to identify customers

Market segmentation has mainly four segments which can be used as essential tools for
identifying customers. Those are explained below:
1. Demographic segmentation: It is the most common and widely used marketing segmentation
in business. (Dennis J Cahill, 2012) It emphasizes on the data of people or groups of people.
Such as,
 Age
 Gender
 Education
 Ethnicity
 Religion
 Race
 Occupation
2. Geographic segmentation: As H&M has branches all around the world, geographic
segmentation is often used in their marketing department. Geographic segmentation mainly
emphasizes on the consumer’s geographical location. (Piper, et al., 1994) Such as,
 Country
 City
  Zip code
 Climate
 Population
 Rural, urban or suburban
3. Psychographic segmentation: It is identical to the demographic segmentation but they are not
the same. Just like demographic segmentation it is also about people but it emphasizes
mostly to the psychological attributes like characteristics and personalities of people. (Donna
Roberts, 2003).Such as,
 Attitude
 Motivation
 Values
 Hobbies
 Lifestyle
 Beliefs
4. Behavioral segmentation: It concerns with the fact that how people act instead of who they
are. It is mostly used in e-commerce section as it is widely used to know and categorize how
someone would act towards a certain product or service. Such as,
 Spending habits
 Purchasing habits
 History of purchasing
 Brand interest
 Browsing habits

P1.3 Discussing the marketing mix in the business of H&M

Market mix can be referred as a combination of some elements that help the business to
communicate its offering to the customer in a better way so that they are influenced to purchase
the products and services. Marketing mix of H&M includes the following things. Such as
Product, Place, Price, Promotion, Process, People and Physical Evidence. (Van der Westhuyzen
& Van der Merwe, 2017)
The marketing mix of H&M is given below:
Figure: H&M Marketing Mix
Product: H&M has numerous collections of clothes and other accessories items. In order to
achieve the marketing objective, the company will introduce some other products in its product
line.
Price: the company follows price leadership strategy under which the company charges
minimum prices for each and every product in order to remain competitive by increasing the
sales and enhancing the market share.
Place: H&M distributes its products through 1500 outlets and it has foreign outlets in 28
countries. The customers can now purchase the products through online. So, it will increase the
sales to a large degree.
Promotion: for promotional purposes, the company uses different media like tv advertising, print
media, newspaper and social media promotion to get the customers’ attention which will increase
the company’s sales and market share.
People: In order to increase the sales volume and market share, the company should have
experience employees who can work efficiently all the time which will in turn increase the
customers’ satisfaction level.
Process: The company always try to make it easy of purchasing the products from its outlets
without any problem.
Physical evidence: the company has its own outlets in different locations. The outlets are well
furnished. The products of the company include clothes and accessory items.

LO2 Understating market research and market analysis methods

P2.1 Describing the aims of market research and market analysis
Market research and analysis is very useful for making better decisions and steps to maximize
the sales, productivity and profit of the business. Market research is very important for marketing
of H&M because:
  It helps to spot opportunities in business
 It helps to find out the important scope to place an ad
 It helps to get to the leading position in competition
 It helps to identify the potential customer base
 It helps to find out the needs of the consumers
 It helps to make better decisions
 It helps to improve the product and service for making a great impact in the competitive
market. (John Kuada, 2008)

P2.2 Explaining market research methods

Various market research methods can be used in the business of H&M which are explained
below:
 Qualitative research method: It is a market research method which emphasizes on data
collecting through conversation and open-ended communication. It considers not only
what people want but also why they want that. H&M uses qualitative research method for
analyzing the non-numerical ideas, meanings, experience that can not be explained
through number.
 Quantitative research method: It is a market research method which collects and analyzes
numerical data for analyzing the market. H&M uses this research method for generating
reproducible knowledge and data about the market.
 Primary research method: It is a market research method which is used for collecting data
directly instead of relying on past records and results. H&M uses this method before
introducing new products so that they can know if their consumers will be happy or
disappointed. Primary research can be done through interviews, group surveys,
observations and online surveys.
 Secondary research methods: It is a market research method which is used for collecting
data without interacting with anyone directly. It is totally based on the research of past
records of particular subject or thing. H&M uses this method by collecting data from the
internet, past surveys, magazines, books, store history and commercial information
sources. (PERCIVAL WHITE, 2015)

P2.3 Describing market analysis tools and techniques

Various market analysis tools and techniques are described below:
SWOT analysis tool: It is an effective tool that can be used to have a clear understanding of the
business environment where a business organization is operating. It contains the analysis of
strengths, weaknesses, opportunities and threats. H&M uses this tool for making better decision
before launching products and offers in the market.
PESTLE analysis tool: PESTLE analysis is a tool that emphasizes on the external factors of the
business. It contains analysis of Political, Economic, Social, Technological, legal and
environmental factors of the business. H&M uses this tool for getting a broad view of the
external factors that can affect their business.
Porter’s five forces: Porter’s five forces is a tool that emphasizes on the competitive scenario of
the market. It contains analysis of buyer power, supplier power, threat of substitution,
competitive rivalry and threat of new entry. H&M uses this method before launching new
products to determine the possibility of success and lower the risks of introducing those products
in market. (Nigel Bradley, 2010)

LO3 Application of market analysis techniques

P3.1 Using market analysis techniques for researching the target market for a
certain product
SWOT analysis tool is often used by H&M before introducing a new product in the market. An
example of the SWOT analysis of H&M is given below:
Strengths Weaknesses
 Quality products  Financial constraints
 Attractive price  Solely depending on the suppliers
 Experienced employees  Lower price reduces the profit margin
 Good relationship with the suppliers
 Having a good communication with
the external parties
Opportunities Threats
 High sales growth rate  Strategic actions from the competitors
 Increasing brand loyalty of the  Intense competition
customers  The demand for fashionable produce
 Increasing sales through online is changing more rapidly
system

P3.2 Interpreting the findings of market research and market analysis

Objectives: The company has the following objective that it wants to accomplish in the next
year:
• Increasing the total volume of sales by 10%.
• Holding 15% of the overall market share.
• Increasing the satisfaction level of the customers.
• Increasing brand loyalty of the customers.
• Implement new marketing strategies to influence the customers.
Strategy: In order to accomplish these objectives, the company will follow some strategies. The
company will introduce two new types of jeans for the young people and a variety of accessories
for the for the homes.
Tactics & Action: The company always take some tactics and actions time to time to achieve its
objectives. The most influential tactics and actions of the company are training the sales people
in such a way that it increases their decision marking capacity with the customers, taking unique
promotional activities that will attract the targeted segment quickly, introducing new products
time to time as the fashion is changing rapidly.
Budget: Budget is a useful way of allocating the resources in every aspect of the company very
prudentially so that any deficiencies can be minimized. As the resources are limited in nature, it
should be properly distributed.
Control: H&M continuously controls the overall process in order to minimize any unexpected
losses or deficiencies. The efforts and results of marketing department should be compared with
other departments so that their level of performance can be measured more accurately.

P3.3 Presenting the findings to the marketing team

The process of presenting the finding to the marketing team of H&M is given below:
• At first the higher authorities must be notified about the findings
• A date and time must be fixed for a meeting with the marketing team of H&M
• The pre details of the meeting must be notified and given to them before the meeting
• All the members of the marketing team must be presented on the fixed date and time
• After starting the meeting, the finding must be discussed broadly
• Everyone should have the freedom to give their opinions
• Appropriate feedbacks from all the members must be given
• The opinions and feedbacks from all the members should be noted down
• Before concluding the meeting all the members will be allowed to make query or ask
any kind of questions if they have doubts
• At last, A new objective should be selected with dead line for upcoming projects in
future.

LO4 Understanding the use of E-marketing

P4.1 Evaluating various methods used for E-marketing of H&M
The process of using the internet and online media to sell a business organization’s products and
services is known as E-marketing. As H&M has over 5000 stores in 74 countries worldwide,
they are bound to use E-marketing to attract and communicate with their consumers and
customers all around the world. Followings are the various method of E-marketing that can be
used by H&M:
• Social media: social media has become the center point of E-marketing as there are
billions of users in various social media sites such as Facebook, Twitter, Instagram
 etc. The company can attract more and more customers via different online social
media sites.
• Website: It is a necessary thing for any kind of business organization to have an
official website to gain trust from people. A website can help an organization to
increase their brand value and sales in a rapid rate.
• Email marketing: It is the cheapest and easiest method of E-marketing. It is the
process of marketing through email. It can be used to notify the existing customers
about future updates of products and services as well as attracting new customers by
giving them updates via email.
• Text messages: It is a very effective method of E-marketing. Customers can directly
be notified about offers, discounts and new products via text messages to their phone
numbers.
• Blogging: It is also another effective method of E-marketing though it can take more
time than other methods. But it is very useful to give broad details about the products
and companies campaigns to the people all around the world. (Different Types and
Methods of e-Marketing, 2016)

P4.2 Describing how H&M’s online image can be managed

H&M can manage their online image by the following methods:
• H&M must create a 24/7 customer care option in their official website. It will help
them to interact with their customer effectively and efficiently.
• H&M must stay active in their social media pages and accounts as they have millions
of users and subscribers worldwide. They shouldn’t delay in responding and
answering the questions of their customers.
• H&M can join various online marketing websites for selling their products. Many
people search for gift items online and joining the online marketing website will
allow Biscuiteers to attract those people. (Corporate Image Management Process,
2017)
• H&M should frequently update their website as it can be helpful for attracting new
customers more and more.

Conclusion
Marketing plan is a document that shows how the marketing objectives of the company will be
achieved. A proper marketing plan makes it possible to take proper action effectively and
efficiently. A properly documented marketing plan helps the marketer to take effective actions
time to time. The marketing plan also provides the insight into every action to the employees
which helps them to understand their roles and responsibilities.

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