Module: Principles and Practice of Marketing

Code: UNL2011

Assessment Code: AS1 Academic (Year: 2022/2023)

Leader: Anthony Agbons

Marks and Spencer

Summited by 7000128
Date: 20/12/2022
Word count: 2579
 Contents page

Introduction …………………………………………………………………… 1
Marketing Mix …….…………………..…...………………………...……….. 2
Strategic Decisions by M&S ……..……………………………………….…… 6
The Effectiveness of the Marketing Efforts ………...………………….……… 9
Conclusion …………………………………………………...……………….. 10
References ………...…………………………………………………………… 11
Introduction

The fashion sector incorporates numerous levels, namely the production of raw
materials, retail sales, the creation of fashion products by designers and distinct
forms of promotion and advertising. Notably, fashion forms autonomy and self-
expression at a particular place and period in specific footwear, context,
makeup, accessories, body posture and hairstyle. The notion behind fashion is
to fulfill a need in the past. Nike forms one of the market leaders in fashion
together with companies such as Christian Dior Group and LVMH Moët
Hennessy Louis Vuitton. The selected company is Marks and Spencer. This
entity competes with other similar companies like Lawson, Tesco, John Lewis
Partnership and Debenhams for market share. Of note, this company is a major
British worldwide retailer and focuses on selling beauty, clothing, food and
home products, and its headquarters is found in Paddington, London. This
paper assesses the fashion industry in relation to Marks and Spencer and
demonstrates the marketing planning procedures by utilizing marketing
strategies.

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Marketing Mix

The marketing mix articulates the set of tactics or techniques an entity utilizes to
advocate its product or brand in the market. Significantly, the Marks and
Spenser marketing approach aids the company in gaining a competitive
advantage in the industry and attaining its goals and outlined targets (MBA
Skool Team, 2021). The organization has used people, price, place, process,
promotion and product marketing mix to enhance its position in the market.
Marketing primarily focuses on the seller's needs (Kotler et al., 2019). The
company has over one thousand stores across the globe, having at least
seventy thousand employees. Notably, Marks and Spencer work on meeting the
needs of workers and adheres to a competitive policy to retain its workers (MBA
Skool Team, 2021). The entity rewards the workers on the grounds of their
performance, which motivates them to perform their tasks and responsibilities.
In addition, the employees are given special discounts on M&S goods
purchased online or in-store. Nevertheless, the entity provides life insurance
schemes and pension benefits. It offers flexible working hours to ensure the
needs of the working parents are met. In this company, diversity is emphasized
in each outlet to promote female workers by adopting favorable policies. New
trainees are enrolled in development programs to specialize in their distinct
areas.
In relation to pricing strategy, M&S adheres to a competitive approach for the
product portfolio. The entity has its house brand for clothing for males, children
and women. Customers are usually sensitive to the prices of commodities, and
this factor primarily affects their purchasing decision (Shimp, 2017, p.21). The
in-house brands are classified between medium to higher as a result of their
premium quality. Marks and Spencer use a competitive pricing model since
clients have numerous options, which can be attributed to increased
competition. Considerably, they face rivalry from online retailers. Moreover, it
follows a dynamic pricing approach because, in seasonal periods, it offers
different products to attract more customers and clear old stock.
Marks and Spencer align its commercial campaign with digital marketing and an
in-store approach. This type of strategy uses the internet as a section of

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multichannel marketing and the benefits associated with it (Chaffey and Ellis-
Chadwick, 2019). Notably, it is customer-centric. The entity concentrates on
providing a common message across all mediums of communication. It utilizes
print media, mobile and television ads, and social media campaigns.
Substantially it uses the developed website for marketing its brand, clothes for
females, children and men. Clients may find fashion tips and blogs on the
website. Marks and Spencer push its periodic auctions to its loyal clients by
giving them discounts. The firm runs a special loyalty program that makes its
customers earn loyalty points based on their shopping spending. The point
gathered may be used for future purchases from the Marks and Spencer
outlets.
Noteworthy as a result of place and distribution in the company's marketing mix,
it has more than one thousand operational stores in at least fifty countries. In
the United Kingdom, the entity has about eight hundred and fifty outlets (MBA
Skool Team, 2021). In 2001 it started its operation in India. Other countries
include Finland, Ireland, France, Spain, Turkey and Hungary. Marks and
Spencer company has developed a website where its clients can purchase
products and have home delivery made. Nevertheless, it avails an option for
international delivery for selected commodities.
The product marketing mix for M&S covers products of all age groups for kids,
women and men. Products for females include jeans, blazers, skirts, shirts,
linen, cashmere and cardigans. The footwear section covers heels, pumps,
loafers, sandals and boots. Accessories and bags for women incorporate
sunglasses, jewelry, beach bags and handbags. Popular brands for females are
indigo, foot glove, twiggy, Per Una, classic and autograph. Of note, the footwear
for men encompasses casual shoes, sandals and boots (MBA Skool Team,
2021). Mark and Spencer's home and furniture section significantly incorporate
a bedroom, dining room, home accessories and lighting items. The company
concentrates more on selling in-house brands as opposed to international
brands. In relation to the process, the entity's outlet may be found in malls.
These stores are properly organized and are portioned into floors, indicating
they have distinct sections for flowers, gifts, clothing, furniture and home
accessories. In each section, there are subsections for children, men and
women. The second floor is made up of a gift shop and furniture.
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On the other hand, the third floor is food and other commodities. Clients may
choose the stuff, and there is a checkout counter for making payments.
Consumers can make online purchases by logging into Mark and Spencer
website and have a chance to claim reward points. Over time the entity has
unveiled its commitment to quality (Joseph, 2013). The company's positioning
stance relates to the quality of its products to give its consumers the desired
appeal. Furthermore, the difference in quality affects its product's prices.
The societal marketing concept articulates that entities have a greater obligation
than meeting customers' needs and offering them superior value. Marketing
practices should benefit the community's general well-being. Innovation and
quality are the primary elements incorporated in the Marks and Spencer
organizational marketing strategy. It makes significant efforts to research the
market, communicate with the clients and consider their needs.
The company supports the society in which it operates in various ways to
improve people's livelihoods. Firstly, it is involved in charity and community
donations conducted through local outlets (Marks and Spencer, 2019). Each
has a limited budget and concentrates on assisting society's major issues.
Secondly, it contributes to helping those affected by catastrophes. Before
committing to supporting a major disaster, Marks and Spence consider the
fundamental needs. This information is gained through requests made by its
clients and workers and whether the disaster has transpired in a location where
they have firm associates via suppliers, offices or outlets (Marks and Spencer,
2019). It decides what to do individually to assist the affected persons.
Noteworthy, the company is actively involved in waste management in order to
control the pollution caused to the environment. Marks and Spencer company
has committed itself to stop sending waste to landfill from their Irish and United
Kingdom outlets, warehouses and offices. Considerably, it has reduced the
usage of carrier and packaging bags.
Moreover, the company has incorporated training into its system to promote
personal growth among its workers. This program makes employees advance
their skills, improving their productivity in the firm, and resulting in increased
revenue. In 2019 the company introduced new career paths for the outlet
section managers, marketing teams and human resources. Of note, the
company is committed to assisting its people to make informed health choices
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in their working environment. It runs a pilot well-being program across its outlets
with the aim of trying physical and mental health initiatives (Marks and Spencer,
2019). Marks and Spencer evaluate the outcome of these trials to develop long-
term employee well-being strategies. The support for the community is
incorporated into the marketing mix by ensuring the products produced meet
the needs of society and are available at the right place in the required time.
Additionally, the company's products and benefits are communicated to
customers as it outlines the steps adopted to safeguard the environment.

Fig.1

The Marks and Spencer Outlet

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Fig.2

The Marketing Mix used by Marks and Spencer

Strategic Decisions by M&S

The fundamental strategic decisions adopted by the marketing unit incorporate

market position approaches, market section to target, products offered and
marketing objectives to the second corporate approach. The company utilizes
demographic segmentation to select its target audience. Noteworthy, Marks and
Spencer target its clients into distinct groups by occupation, social class,
income and age. It focuses on individuals who are thirty years and above with
executive occupations and high income. Considerably, its grounds market
segmentation value. The market segment targeted is the youth since they
embrace trends in fashion, making the company concentrate on its core
elements, innovation and accomplishment of the outlined objectives. The
software developed by the company makes it possible for millions of customers
to join live broadcasts, which can impact their purchase decisions (Taylor,

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2022). Youths welcome technology advancements, and by using different
communication mediums, a large target group can be reached about the
company's products. The ultimate objective of market segmentation is to
formulate a detailed profile of every market section. By utilizing demographic
segmentation, the entity will assume that individuals with common traits will
exhibit similar tastes, lifestyle patterns, and interests, impacting their buying
behavior. It is significant to recognize distinct forms of customer loyalty to the
brand and identify the influence of various marketing techniques on these
phases. Concentration on segmentation loyalty provides a tactical and strategic
insight into establishing an outstanding brand (Gajanova, Nadanyiova and
Moravcikova, 2019, p.68). An advantage associated with demographic
segmentation is that information required is easy to gather. Contrarily, Marks
and Spencer can design applications that monitor more granular demographic
information. Furthermore, surveys may articulate a particular demographic of a
target audience as opposed to available research information sources.
Significantly, there are several issues facing Marks and Spencer that undermine
its performance and, to some extent, makes it miss the outlined objectives.
Firstly, poor decision-making (Russon, 2020). For instance, the sparks card
customer loyalty program was re-launched after failing in 2015. Despite
resurfacing this project, the company did not take the time to understand the
factors that resulted in the scheme's collapse. The organization is tactical in
solving this problem by consulting its customers to understand their needs and
avoid the repetition of the mistakes committed in the past. Secondly, the is
inadequate communication between the entity and its customers, where the
clients cannot effectively provide their reviews. Some buyers stipulate that M&S
does not listen to the customers and is inactive in relation to any demographic.
The firm must collaborate with its target audience to recognize what they want.
In handling these challenges, the entity outlines the various reasons for
adopting certain techniques in its operations. The perceived situation makes the
community perceive Marks and Spencer negatively.
Another fundamental issue is that M & S does not capitalize more on its outlets
(Russon, 2020). Some customers argue that visiting the company's outlet is not
as enjoyable as in the past, which can make them shift to the entity's
competitors. Considerably, this situation is a worry, particularly in an intensely
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competitive retail climate. The majority of its customers anticipate the entity to
become more of a food business. In overcoming this challenge, the entity has
demonstrated the willingness to change its flaws and work on meeting customer
expectations to enhance its experience. It has significantly embraced a
transformation plan to become a company each client desires. Moreover, the
organization does not appeal to many generations, and this can undermine the
attainability of the outlined objectives and targets. Marks and Spencer's food
sales have increased while fashion sales have remained stagnant (Russon,
2020). Customers have accused the entity of having poor-quality clothes or
being conservative and not recognizing the fundamental demographic. In order
to find a solution to this situation, the company has recently reinforced its
management and leadership team and invested in research to identify the taste
and preferences of the target audience.
Marks and Spence company can use Porter's five forces to comprehend the
profitability of the entity's product. These factors include supplier power, buyer
power, competitive rivalry, the threat of substation and the threat to the new
entry. Of note, these forces will form the basis of making an informed decision
by the firm to continue engaging in the food industry, increase capacity, and
develop a competitive advantage. By using generic strategies, M & S can
reduce the cost of its products to attract more customers. The firm can make
high-quality products through a differentiation strategy, making it easy to
differentiate its products from those of competitors.

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Fig. 3

Porter's Generic strategies

The Effectiveness of the Marketing Efforts

The outcome of the marketing effort is reaching a larger target audience, the
youth, and communicating to them the associated benefits of Marks and
Spencer products. Through this exercise, the entity is able to grow, keep and
acquire consumers. The marketing mix, which incorporates people, place,
promotion, price and product, provides a framework for the firm marketers and
the formulated marketing approaches remain focused on the right thing.
Through marketing, the interest and demand for the advertised products are
created on potential buyers, which can trigger a purchase. Substantially, the
marketing effort has a material effect on the business's success in that it
increases sales and revenue. The product emphasized can reach a new market
and attract new consumers. This activity helps the organization separate itself
from a saturated market of competitors. Noteworthy, the marketing activities will
aid in sales procedures and advocate for progress by creating brand awareness
and consumer participation. Digital analytics aids business managers acquire
actionable insight from information that encompasses visitors' or clients'
footprint during the digital journey. Hence it makes an individual comprehend
the data that the customers generate in regard to the firm's brand. The
company remains focused on the trends witnessed in the industry and keeps

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track of the micro-marketing trends. Marks and Spencer's sales influence its
market share; however, this does not solely impact the general performance;
innovative brand image via marketing efforts is essential for its success. The
opportunity for growth for this firm is improving the quality of its products and
being customer centric. The taste and preferences of the target market are
dynamic, and to remain profitable, they must be addressed.

Conclusion

Remarkably, the Marks and Spencer company specializes in food, clothing,

home and beauty products and often faces stiff competition. Hence to enable its
survival and to remain profitable, it has concentrated on innovation and
attainment of the outlined objectives to gain a competitive advantage. Of note,
its marketing mix is composed of product, price, place, promotion, process and
people. The mix is integrated to reinforce the positioning of the company.
Considerably it works on fulfilling dynamic customer needs. Noteworthy, the
company has engaged in societal activities to promote the community's
wellbeing, which is frequently affected by factors such as disasters. Some of the
significant issues facing M&S include poor decision-making, the brand not
appealing to many generations, inappropriate communication with the
customers and inadequate investments in the outlets. These challenges may
affect the efficiency of the entity. The tactical strategy for solving these
shortcomings is utilizing porter's generic strategies. Nevertheless, marking
efforts are associated with increased sales and revenues, improving the market
share.

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References

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Implementation and Practice. 7th ed. Harlow, England: Pearson.
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Demographic and Psychographic Segmentation to Creating Marketing Strategy
of Brand Loyalty. Scientific Annals of Economics and Business, 66(1), pp.65–
84. doi:10.2478/saeb-2019-0005.
Joseph, S. (2013). M&S looks to reclaim ‘quality’ positioning to reverse falling
clothing sales – Marketing Week. [online] Marketing Week. Available at:
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reverse-falling-clothing-sales/ [Accessed 22 Nov. 2022].
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[Accessed 22 Nov. 2022].
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Russon, M.-A. (2020). M&S: Five reasons the retailer is struggling. BBC News.
[online] 21 Jul. Available at: https://www.bbc.com/news/business-53478403
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