UGB161 Marketing Management Of Marks & Spencer Stores Assignment Sample

Introduction To Marketing Management Of Marks & Spencer Stores

Marketing management is highly concerned with the development of a competent strategic framework which contributes to the enhancement of market share, brand image and overall success. A renowned British retailer titled Marks & Spencer (M&S) was founded in 1884. It offers an enormous range of high-quality goods for the home, food, and apparel. The commitment of M&S to excellence, long-term viability and client satisfaction is well known. It serves consumers in the UK as well as abroad by running physical shops and an online presence. The report is made to understand a marketing audit of the business's existing performance. The report aims to evaluate organizations present marketing approach and situation in the market. The report is going to include a suggestion of two sets of market segmentation criteria which could be productively besieged by the industry. The report will consumer groups will grow the business inside the retail market. The report will evidently reveal buyer behaviour and show appropriate research to validate Marks and Spencer's (M&S) marketing strategy.

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Conducting a marketing audit of M&S to assess the position of business's current performance in the market

Marketing Audit

PESTLE analysis

Marks & Spencer (M&S) is a renowned retail company. The company is known for its home products, excellent value clothing and food distribution. A PESTLE analysis of M&S's operations might offer significant insights regarding the external variables that might have an influence on those activities.

• Political factors: M&S functions in several different nations, it is vulnerable to political shifts. The financial performance of the business may be impacted by government regulations on taxation, commerce and labour. Supply chains and M&S's goals for overseas growth may also be affected by stability in politics and geopolitical issues. The liberated commerce that has been developed among multiple countries is one of the greatest things about modern politics (Christodoulou and Cullinane, 2019). This is moderately beneficial for the company, which primarily operates within the UK but also has facilities globally. With a well-built margin of profit, free operate enables organizationto import products from other countries at lower costs for sale in their provisions.
• Economic factors:These factors have a huge impact on how customers spend their money, which directly impacts M&S's sales. The buying power of consumers may be influenced by economic factors like interest rates, inflation, and unemployment rates. While recessions may result in reduced customer spending, a robust economy often translates into more effective customer trust and sales (Nandonde, 2019). By pushing clients to obtain equivalent goods at significantly cheaper rates in comparison to rivals firms can attract them towards purchase.
• Social factors: M&S can be greatly affected by shifting demographics and social trends. Changes in consumer preferences, such as a rise in consumer preference for environmentally friendly and ethically produced goods, may have an impact on M&S's product selection and marketing plans. Social pressures on customer behaviour and purchase decisions include diversity in culture, trends in fashion, and modifications to lifestyles (Do Thi, et. al. 2021). The company's reputation as a fashionable product for customers, especially younger customers, may refuse as fresh and fashionable stores materialize every year.
• Technological factors: These factors are essential to the retail sector and M&S must keep up with advancements to be competitive. Customer behaviour has changed as a result of online shopping, applications for smartphones and e-commerce platforms. This in turn acts as a driving force for the company to make investments in technological infrastructure and integrated omnichannel experiences. Emerging technologies like machine learning and data analytics additionally present prospects for enhancing inventory management, consumer individualization and supply chain effectiveness.
• Legal factors: For M&S to operate, regulations must be followed. This covers legislation regulating work, health and safety, environmental issues and consumer protection. To maintain its brand, prevent legal problems, and live up to societal norms, M&S has to make sure it follows by these rules.
• Environmental factors: Sustainability has gained significant interest from both consumers and businesses. M&S has invested a lot of work into resolving environmental issues, such as sourcing sustainably, waste reduction and reducing emissions of carbon dioxide (Benzaghta, et. al. 2021). Long-term success for M&S relies on its ability to adjust to climate change laws, manage shortages of water and maintain ethical supply chain practices. The ecological impacts of fair trade, an initiative intended to provide overseas producers greater reimbursement, are also felt. This is to ensure that slighter producers, who profit more from fair trade, may function more sustainably than their larger competitors.

SWOT Analysis

SWOT evaluation is a framework for the strategy used for evaluating a company's opportunities, threats, weaknesses and strengths:

Marketing mix

The marketing mix, commonly known to be the 7Ps (product, price, place, promotion, people, process and physical evidence), are an essential basis that companies utilize to create successful marketing plans.

• Product: M&S has an extensive range of things to pick from, such as apparel, housewares and foods. The firm is dedicated to offering top-notch goods that honour its British history and appeal to its target clientele. M&S focuses a strong emphasis on distinguishing their products through unique designs, high-end materials and sourcing that is ethical (Lahtinen, et. al. 2020). To be relevant in the market and adapt to shifting client preferences, the firm continuously innovates its range of goods.
• Price: M&S uses pricing practices that are consistent with its branding as an expensive brand. While M&S's prices may be more expensive than those of certain rivals, this is justified by its commitment to the product and the customer experience (The Economic Times, 2023). The pricing strategy takes into account things like manufacturing expenses, the prices of rivals and consumer perceptions (Lim, 2021). To draw consumers who are price conscious and boost sales, M&S also runs sporadic deals and promotions.
• Place: M&S has a multichannel distribution plan to make certain that its products are available through a variety of channels. It is readily accessible in physical stores in the UK and in some other countries. Consumers may purchase online at M&S and take advantage of the simple delivery choices because of the company's e-commerce facilities. The omnichannel strategy offers versatility to customers and improves their buying experiences.
• Promotion: A vital part of M&S's advertising strategy is promotion. To reach its target market, the company uses a variety of marketing platforms to convey its core principles and market offers. M&S runs promotions in print, television and internet media to sell its products and build its reputation. In order to maintain a favourable brand image, the company also engages in public relations operations including press releases and events (Sudari, et. al. 2019). M&S uses social media channels to interact with consumers, announce new products and launch marketing initiatives. Furthermore, M&S has a loyalty program called "Sparks" which promotes consumer loyalty while rewarding consumers for their purchases.
• People: A "People" component is concerned with the company's clients and workers. In this instance of Marks & Spencer's, this involves making certain that the staff is knowledgeable, outgoing and delivers top-notch customer service. Employees who are motivated and well-trained may improve the shopping experience and foster customer loyalty. To inspire and empower the staff, companies might spend money on training programs, rewards and regular feedback sessions. Effective marketing also requires an in-depth understanding of the target audience's requirements, preferences and behaviours (Bian, al. 2019). The company may better understand the needs and desires of their target consumers by doing market research, collecting customer feedback and employing analytics to analyze data. This will allow businesses to develop products and services that correspond to those demands.
• Process: The physical processes and structures which ensure timely and accurate delivery of goods and services. In order to make sure consumers can easily access items, Marks & Spencer's maximizes its supply chain, and inventory control, including logistics. The client experience may be improved by streamlining the purchase process, creating user-friendly websites and providing a variety of payment alternatives. Marks & Spencer may additionally focus on ongoing process enhancement to boost productivity, save costs and accelerate product delivery.
• Physical evidence: This part deals with the material and immaterial components that affect how buyers view a brand. This pertains to the company in that it refers to the physical retail environment, packaging for goods and general product presentation. Maintaining a neat, thoughtful and visually appealing retail layout may improve customer satisfaction. Continually pleasing packaging for their items can help increase customer impressions of the brand's significance (Yoseph, et. al. 2020). Furthermore, Marks and Spencer may use digital platforms to offer virtual experiences that can improve customer loyalty and happiness, such as virtual try-ons for apparel or virtual reality for interior design.

Assessing two sets of market segmentation criteria which suit the current retail marketplace

Market segment

Marks and Spencer may develop its company in the retail sector by targeting two consumer segments young people and elderly people who care about prices.

• Youngsters: Teenagers are a large market segment with enormous purchasing power. They frequently accept new fashions, technology and trends immediately. By providing for this demographic, Marks & Spencer can take advantage of their tastes, win their initial loyalty and develop loyal customers.
• a) Trends and fashion: Young people frequently get influenced by the latest fashions and are open to experimenting with new appearances. For this age assortment, the retailer Marks and Spencer may launch innovative and stylish clothing collections (Mostaghel, al. 2022). Working with well-known personalities or influencers may help draw in adolescents and generate buzz for the business.
• b) Online presence: Youngsters are adaptive to technology and spend an extensive amount of time internet. Marks and Spencer may efficiently connect and interact with this customer category by utilizing online advertising channels, social media systems and electronic commerce. Younger people's purchasing experience can be improved through personalized suggestions, advertisements on the internet and user-friendly mobile apps.
• c) Sustainability and moral behaviour: Youngsters are becoming more aware of social and environmental concerns. The brand connects with this customer by supporting ethical product sourcing and ethical business procedures (Dahana, al. 2019). Creating a favourable perception of the company may be accomplished by providing eco-friendly solutions, supporting recycling initiatives, or collaborating with groups that support social concerns.
• Older people who are price-conscious: Older people, especially ones on a fixed income, tend to be price-conscious and look for the best deal available. The company can draw and keep this client base by responding to their particular demands.
• a) Product dependability and quality: Elderly customers choose durable items. Marks & Spencer may focus on providing high-quality products with a reputation for durability. In the senior demographic, which may be more inclined to often replace their products, this will assist foster trust and loyalty.
• b) Affordable prices and discounts: The company can provide special deals, discounts and loyalty programs geared exclusively towards the older age range to appeal to shoppers who are on a budget (Boutsouki, 2019). Offering affordable price points without sacrificing quality helps draw in and keep this customer group.
• c) Product accessibility and convenience: Older customers may have particular needs for product accessibility as well as ease. Household delivery, personal shopping help, and in-store conveniences like comfortable sitting and easily reachable restrooms are among things that the companycan offer. This will enhance elderly customers' entire shopping experiences and persuade them to shop at company rather than another retailer.

Marks and Spencer's stores may deliberately target both young people and elderly people who care regarding prices to grow their customer base, boost sales and consolidate their authority in the retail industry (Krasyuk, et. al. 2019). Building brand loyalty and attracting prospective customers through favorable word-of-mouth recommendations will be made easier by recognizing and catering to the particular needs of these client segments.

Demonstrating buyer behavior and marketing strategy to meet the requirements of the suggested segments

Segmentation, targeting and positioning (STP approach)

Companies utilize segmentation, targeting and positioning (STP) as essential strategies for marketing that effectively reach and connect with their target audiences.

• Segmentation: M&S, a well-known store, uses a variety of methods of segmentation to separate the customers it serves into recognizable categories. The business can divide its market using socioeconomic, regional and psychological variables (Yuan, et. al. 2019). For instance, M&S may take into consideration variables like age, income, way of life and shopping patterns to define different groups like young workers, families and seniors.
• Targeting: Considering market segmentation, M&S chooses certain market segments that are suitable for its offers and brand. M&S has always targeted clients that appreciate quality, style and dependability by concentrating on the middle-class to upper-middle-class audience. The company aims to make an impact to people and families who put equal importance on food, home goods and fashion. A differentiated targeting strategy is used by M&S with an aim to entice decision-making of the target market.
• Positioning: A corporation positions itself in the thoughts of its intended customers in order to stand out from rivals. M&S promotes itself as a seller of stylish, high-quality goods with a hint of British history (Naeem, 2021). The business aims to provide consumers with items that are stylish, trustworthy and economical. For the company to establish a distinctive position in the market, M&S puts an intense focus on establishing its standing for quality, long-term viability and ethical practices.

Factors which affect buying behaviour

Youngsters:

• Fashion styles and design: teenagers frequently take influence from the most recent developments in clothing and look for trendy clothing alternatives. The market in question might be attracted by company'scapacity to follow the latest fashions and provide stylish items.
• Website accessibility and digital experiences: Considering young people are highly educated and connected to the internet, the company's online visibility, easy-to-use website and smooth shopping experience may have an important effect on their purchasing decisions (Childs, et. al. 2020). This demographic may be more involved by offering online-only content, customized suggestions and interactive elements.
• Ethical and sustainable practices: Youngsters are becoming more cognizant of ethical and sustainable practices. This group may identify with the company's dedication to sustainability, use of environmentally friendly goods, and sourcing responsibly, which may have an impact on their purchasing behaviour.
• Social media activity and celebrity partnerships: Youngsters use social media often and are impacted by prominent influencers. Marks & Spencer may capture this demographic's interest and allegiance via its interaction with celebrities and successful social media advertising campaigns.
• Value for money: Because young people sometimes have limited funds, selling them things that are both inexpensive and trendy and of great quality might draw them in. Giving them special prices, deals for students, and inexpensive choices might influence their purchasing choices positively.

Older People:

• Dependability and quality: Reliability and dependability are important to older people. They may be significantly influenced by Marks and Spencer's reputation for providing high-quality goods when making buying choices.
• Comfort: Older persons frequently place a higher priority on comfort and utility. They can be catered to by the retailer's focus on cosy apparel, well-fitting sizes, and useful designs.
• Brand loyalty and confidence: Gradually, older individuals frequently develop a brand loyalty (Zhao, et. al. 2021). The purchases made by consumers may be significantly influenced by Marks & Spencer's well-established image for reliability, honesty, and customer satisfaction.
• Classic and ageless styles: older individuals can like timeless, classic looks that endure passing fads. This demographic may be drawn to the company's selection of classic styles and classic apparel alternatives.
• Customer service and help: Older persons may appreciate customized customer service and help. Their buying experience may be improved, and the company's attentive employees, educated support, and store amenities can have an impact on their purchasing decisions.

Customer buying behaviour model

The Engel-Kollat-Blackwell (EKB) model is a wide-ranging structure that explains the consumer buying procedure and the factors that control it.

• Recognition of a need or problem: The EKB model starts out with an understanding of a need or issue that initiates the process of buying. Customers at Marks and Spencer's could identify a desire for household goods, food, or clothing. This need may result from a variety of things, including personal tastes, practical issues, or external forces.
• Information search:After recognising the need, customers do a search for data to learn more about potential solutions. By making easily available and appropriate data to customers through a number of channels, such as their website, in-store marketing, and social media, Marks & Spencer may have an impact on this stage.
• Evaluation of alternatives: Based on a variety of factors, including price, quality, style, reputation of the company, and accessibility (Vlados, 2019). By highlighting elements that are in keeping with its brand strategy, such as quality products, British history, long-term viability and ethical business practices, the company may set itself apart from the competition.
• Purchasing decision: Following completion of the assessment, customers decide whether to make a purchase. By guaranteeing a smooth and simple purchasing procedure online as well as in real locations, the company may have an impact on this stage. Offering safe payment methods, simple return methods, and tailored suggestions can help clients make decisions and impact their purchase of company products.
• Post-purchase evaluation: Following the purchase, clients assess their level of satisfaction with the purchased item as well as their entire shopping experience. To fix any issues and raise satisfaction among customers, Marks & Spencer could focus on customer care, after-the-purchase assistance, and review methods.

From the above analysis, it is evaluated that the objective of Marks & Spencer is to cater to young people by providing items that are fashionable, sustainable, and affordable, while also attracting older consumers with products which are dependable, of excellent quality, and ageless. Their goal is to meet the needs and retain customers by responding to the different needs and tastes of these demographic groups.

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Conclusion

The numerous external factors that may have an impact on M&S's business operations are revealed through a PESTLE analysis. The companyis able to fulfill client demands, promote growth, and uphold its standing as an established brand by keeping an eye on and making changes for these elements. Threats must be effectively managed by M&S so as to deal with fierce competition, unstable economic conditions, and changing tastes among customers. The marketing mix of companyincludes a broad range of products, premium pricing, multichannel distribution, and significant promotional initiatives. In a competitive retail environment, M&S aims to protect its brand reputation, draw clients, and increase sales by skillfully controlling these variables. M&S uses segmentation to determine various client groups while concentrating on particular categories that are consistent with its image as a company.

References

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Online

• SWOT Analysis of Marks and Spencer. 2023. Online. Available through: < https://www.marketingtutor.net/swot-analysis-of-marks-and-spencer/ >.