Marks & Spencer


This is a report based on process of marketing concepts and related topics to an organization. It discusses the fundamental characteristic of marketing. I have chosen one of the biggest retail industry MARK AND SPENCER

Marks & Spencer is one of the best-known British retailers store for clothes, food, gift, foot wears and house appliances which spread through Europe, North America and Asia. It sales clothing foots wear, gifts, house appliances and food.

The company has more than 450 stores within the UK and employs more than 65,000 people. It also operates outside the UK where it has a developing business in places as far afield.

MARKS AND SPENCER is in relationship with its customer and suppliers and was admired worldwide as the UK's leading retails of food, men's, women's and children fashion. This report talks about the activities of Marks and Spencer group within the ever-changing international and domestic retail industries. It explores the activities of major factors related to marketing of Marks and Spencer product and services.

In understanding these differences, discussion on the wider literature and studies a sustainable strategy based on internal and external analysis, using SWOT analysis and PESTEL analysis was consider on this report.

Marks and Spencer organization achieved operating efficiency by following marketing mix and extended marketing mix in order to satisfy customer needs and wants to keep reputation among the retail companies.

Task 1

1.1 Alternative definition of marketing


Marketing is a human activity satisfying the needs and wants by products and services. According to the various scientists, they define marketing in different ways.

The charted institute of marketing

Some of the alternative definition of marketing “marketing is the management process that identifies, anticipates and customer requirements profitably”

Adcock et al

The right product, in the right place, at the right time and at right price.

Kotler 1980

‘Marketing is the human activity directed at satisfying the needs and wants through an exchange process'

Kotler 1997

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of values with others.

Compare and analyzing definition of marketing

According to Adcock et al, marketing is whatever the product or services provided to the customers in convenience to place, time and affordable price to the customer, as in my view most of the situation it will not happen in real market, customers won't be able to get their needs and wants all time convexity and not getting the price they wish to buy.

Kotler, he explained marketing in 1980 that consumer satisfy their needs and wants through exchanging products, in ancient time consumer exchanging to other alternative things, in that situation they haven't got any other choices to get what they needed but in the present this system is still running in some parts of the world.

As to kotler marketing is social and also the managerial process which individuals or a group to create the products which may need to satisfy their wants and exchanging with others with suitable value for this first the group or the individual party must do a market research.


Mark and Spencer is giving an idea what marketing is to show the strength of their brand and analysis what it means to their customers through a cohesive look and feel across customer communication and stores design.

“The new look and feel of their food packaging makes it easier for me to stick to my diet” this means the competitive market place is working with suppliers and consumers.

1.2 Main characteristics of market orientation

Market orientation

In market, orientation tries to understand the needs of the customers and trying to fulfill their needs, by using three main concept, the main characteristics which indicate is as follows.

Customers orientation-The organization must define customers needs from the point of view the customer and not its own. They always try to fulfill customer wants and needs and to suits to their purchasing power, by forecasting customer in the market organization tries to keep long-term relationship with the customers.

Production orientation-The production oriented organization Rely on economies of scale to reduce their unit costs and enable them to supply mass markets at prices that people can afford and that are simultaneously profitable to the organization itself. The great the number of unit produced, the lower the cost per unit- known as productivity. The temptation in industries characterized by economies of scale is to become preoccupied with producing as much and as efficiently as possible without much thought as to whether customers want or need large supplies of uniform products. This is known as a production orientation.

Product orientation-Organizations that are product orientated define their businesses in terms of the products they sell, rather than the needs of their customers. Improving product quality or enhancing product performance or appearance, they often misunderstand the core benefits that customers are seeking from their product. symptom of product orientation is the failure to recognize that a product is becoming obsolete. By defining their markets and customers in term of their products companies may fall into the trap of ‘marketing myopia'.

Sales orientation-This approach assumes that customers will not be willing to buy sufficient of an organization's products or services unless considerable effort is put into influencing them through persuasion and promotion. This is quite the contrary for a marketing orientation.

A sales orientation considers the customer only after decisions have been made about what to produce and this implies that the organization is more interested in its own goals- converting product into sales revenues that in satisfying customer needs and generating customer loyalty. As a result, a sales orientation can only improve effective in short term, and only if the organization wishes to create customers but is not worried about keeping them. In the long term, even if individual customers are not in a position to repurchase, by undermining the company's reputation they can be a powerful force in damaging future sales. If they are dissatisfied with the products or services they were persuaded to buy, they are likely to spread the word and warn others not to make the same mistake. Research suggests that bad word-of mouth travels for faster than good, with dissatisfied customers commenting on disappointments more than three times as often as satisfied customers comment on good experiences (kotler and Armstrong, 1994)

1.4 Cost and benefit

In an organization, there are different kind of cost, which they must initially have to spend over the product and services. Mark and Spencer spend money on market research to find out where the business gives a profit to a company to find out the market to produce the best demand product, company will expend for the initial product development this may lead to long-term goal and advertising cost the same, in addition, spend money on the product development to keep the customer loyalty and trust along with the goal reputation.

By baring these cost marks and Spencer can get more benefits on it as they can maximize their profits by doing market researches that going customer loyalty and trust, it leads for a long term goal, also be able to introduce new product to the market, this may be a good view of a point because there are more competitors in the market.

Task 2


2.1 Macro and Micro factors influencing marketing decisions.

PESTEL analysis, which measures a business market and potential according to external factors such a political, economic, social and technological.

PEST Analysis- M&S

Economic conditions are influenced by political and government policy, being a major influence. Marks and Spencer following the European integration and free trade agreement must follow the planning policy guidance and EU completion law and the retail sector is fairly recession and very sensitive to change in interest rates. In marks and Spencer national legislation for health and safety both in terms of consumer rights and also the production of own natural renewable resource for making clothes.

The Socio cultural environment is a demand and tastes, which vary with fashion and disposable income, and general changes. Marks and Spencer launched new social beneficiation campaign with Oxfam in 2008 for clothes exchange. This encourages people to recycle soft furnishing they may also contribute to Oxfam life saving charity work. They aims to achieve 100 targets in 5 years, they also have programmed to reduce carbon emission, recycle the waste, reduce or eliminate sending wastes to land fill.

Technology is widely recognized by several of parts of the organization. Modern technology helps the organization providing quick services. M&S using automated scanners, computerizes inventory control system

SWOT Analysis

Strengths- M&S also gives main priority for their attention in details in terms of supplier control, merchandiser and store layout. The success of M&S often understood customer's preference also provides highest standards of quality, and the products are to the best as supplier's uses modern efficient production technology.

Weakness- stock clothing range with wide appeal to the public: buyers often had to make choices, which would outlast the fashion and trends seen in other retailers. They are introducing updated fashionable clothing by giving a challenge to their competitors.

Opportunities-M&S have a wide range of opportunities to expand their brand globally, also have the opportunity to consider more overseas suppliers, which will actually help them cost advantage. They also have the opportunity to maximize the use of available technology to gain competitive advantage.

Threats- they are in strong competition with gap. Oasis and Next, who are offering similarly products more fashionable. M&S is also in competition from discount stores like Matalan, and “George” ranges at Asda. M&S is also in threat from Tesco and Sainsbury's whose offering added value foods, which had been pioneered by M&S.

2.2 Proposes segments criteria for marks and Spencer

Segmentation offers a number of benefits to both consumer and the organization. Market segmentation allows M&S to treat similar customers in similar ways. M&S uses demographic segmentation to select its target markets for its products. M&s targets the 30 plus age group with high income and executive occupation.

M&S also bases its market segmentation through value, many products in M&S's clothing range have a premium-priced, high quality segment (M&S, Clarks, faith, office) a mid -priced segment (top shop, river island) and a lower price segment e.g. shoes. In such markets, Fashion and quality differerences can outweigh price variations.

2.3 Buyer's needs and preferences in Marks and Spencer

Consumer buyer behavior is how the consumer/person interacts with the marketing mix. The marketing mix are adapted and focused upon the consumer. The consumer will decide whether or not to purchase, where to purchase and what brand to choose. Buying behavior can change by social factors, such as the groups to which the customer belongs and social status.

Cultural factors have a significant impact on customer behavior. Culture is the most basic cause of a person's wants and behavior. M&S provides different food items like Halal food for Muslim population, kosher food items for Jewish and vegetarian items. Although M&S online continues to be a key growth area with customers increasing using websites to browse and look for a bargain. To convert these browsers to buyers, online retailers offered free delivery and online deals. Websites continued to evolve, to satisfy customer demands.

Task 3

3.1 How product choices developed to sustain competitive advantage


Mainly product can be tangible and intangible Marks and Spencer products based on its superior quality and reliability. Marks and Spencer products mainly forces on customer satisfaction and the target market and best known for women wear. Its clothing products mainly forces on the middle age population. Reason of high competition among the other retailers a new brand extension called Per Unna due was launched in May 2004.targeting young women from late teens to early 30s.

Marks and Spencer also gained a very strong reputation for its food. They have discovered a new range of regional Indian food and cooking methods for a new range of dishes.

3.2 Distribution is arranged within the organization to provide customer convenience


Place represents the location where a product can be purchased. This is referred to the distribution channel, it can include any physical store as well as virtual stores on the internet. One of the latest innovation in “place” for M&S is their website it has online selling as well as as information about the company. All ladies items are placed on a certain place in the store so it is easy to find and locate. M&S web have their own pages for different products/

3.3 Price reflects objectives and the market orientation


The price is the amount that the customers willing to pay for the product or the services. The business may increase or decrease price of products if the other stores have the same price. Marks and Spencer vary on price, the most of the products seem to be cheap affordable price also the clothes are good quality. Ladies fashion also has different brands and the pricing is not too expensive.

3.4 Promotional activities


It is all about communication with the customers by advertising, personal selling, sales promotion, publicity, public relations and websites.

Marks and Spencer changed its promotional tack and adopted a much more high-level of marketing strategy. Campaign introduced the “Exclusive or everyone” tagline that has become a cornerstone of it brand message and campaign for younger customers. Marks and Spencer tend to promote women fashion mainly on television and on their website. Marks and Spencer's promotional mix on food is by displaying large banners in the store.

3.4 Extended marketing mix

There have been developments in “Extended marketing mix” to better accommodate specific aspects of marketing.

Physical evidence - This is particularly important in services site because they are intangible. Marks and Spencer has launched their own website and brochures and workers uniform pattern and also the packaging style with their own logo to identify their products.

Process - There are a number of perceptions of the concept of process within the business and marketing literature. New program will improve stock visibility and management, increasing process efficiency, in which M&S believes, will enhance the customer experience and drive greater control.

People - people are the most important element of any service or experience. This can develop by giving training, personal selling and customer services. M&S is a good employer, committed to making all our people feel valued and providing them with career opportunities and quality training. They introduced new career paths for store section managers and for the marketing team. They have people in the stores who act as coaches to train and support their less experienced staffs.

Task 4

4.1 marketing mix for two different segments in consumer markets.

Market segments are described by different income levels at different age groups and culture. Different age groups like different kinds of things so they have to target on that age group. Those based on sex e.g. foods that may be mostly eaten by men such as snacks that are taken in bar.

Culture -Marks and Spencer products targets at different cultural groups' people's needs and wants as consumer will vary according to their religion, language, social customs and different background. Marks and Spencer stores sales newspapers and magazines and newspapers in many different languages, and M&S also do halal food production in areas with large Muslim population and variety of other foods for different people.

Age - At different age level the needs and wants changes, some organizations aims at particular age group. In M&S their clothes aims for all the age range from a newborn babies to older ege range population. In addition for all these they use promotion activities and varieties of advertisements which suits for the product and services.

4.2 Marketing products and services to an organization

To an organization, it is so important to consider the market to produce a product or services. They are appeal to everyone regardless to sex, age, income and interest, a product will appeal to limited group of people who can afford to buy for their wants and needs.

The PESTEL analysis issues must have to consider on this situation. In addition, the demand for the product or service, which the organization market, because of the limited recourses organization must view the major resources such as land, labor and capital.

Organization can success on their new marketing product or services if they consider the market forces and other major influences, which has mentioned above, customers will decide to buy or not to buy according to their needs and wants. Therefore it is important to an organization to consider the marketing products and services rather than the customers

4.3 Difference between international marketing and domestic marketing
Domestic Marketing

Its trades are aimed toward a single market. A domestic market is also referred to as domestic trading. In domestic trading, a firm faces only one set of competitive, economic, and market issues and essentially must deal with only one set of customers, although the company may have several segments in a market.

International Marketing

International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.

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