Know How Business Growth Effected by Marketing
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Introduction to Marketing
Marketing helps the businesses in enhancing the sales within the market by promoting products and services in order to create wide level of recognition for it. Globalization has created a definite impact on the growth prospects of enterprises by expanding the reach of business and attracting new consumers for maximizing the revenue of the company (Breton and Martín, 2011). Present report creates an in-depth analysis of various marketing principles of Marks and Spencer in order to analyze its competitive position and implement various tools and techniques for enhancing organizational growth. The study will create a detailed industry analysis and develop marketing measures and campaigns to enhance the popularity of products of M&S in the market globally.
Elements of marketing process
According to Dibb and Carrigan (2013) marketing is a social process which creates market demand and attain the same by developing or exchanging the products of value with others. The concept of marketing is to generate market sales by creating value for products within the economy. Marks and Spencer has developed a well-managed market position within the market by creating valuable and quality products and services to its consumers (Chaharbaghi and Lynch, 2010). The company has developed a high street market position which has helped it in establishing its global brand image.
Various elements of marketing process for Marks and Spencer are as follows:
Situation analysis: This is one of the most crucial factor for analyzing the effectiveness f the company and developing effective impact on the overall growth and development. Marks and Spencer examine the present situation for the economy and then evaluate the internal and external business environment in order to evaluate the gap between where the company presently is and where it wants to be.
Marketing audit: This involves the systematic, critical and impartial reviews of overall marketing operations of the company. This element of marketing process analyses the overall impact of the company on demand generation within the economy. Marketing audit seeks effective policies and procedures for the company to determine effctive solution to the set problem.
Developing Plan: After the market audit the company focuses on developing an effective plan to analyze the marketing needs and implement effective measures for the same (Dziri, 2013). M&S develops the plan to overcome the challenges faced by the company within the market and create effective impact of the same on the overall growth of the organization.
Marketing strategy: This is a conceptual and crucial part of marketing process. The company analyses the trends and demand within the market and develop marketing strategies which has the capacity to attract maximum consumers for the company (Element of marketing process, 2015.).
Implementation and control: The most crucial element of marketing strategy is effective implementation and control of the process. The proper evaluation of the process helps in analyzing the factors which may restrict the growth of company thus company keeps a proper check on the overall implementation of the process.
Benefits and costs of a marketing orientation
Market orientation is the culture where companies has a core focus on meeting consumer needs by developing products and services as per the demands and customizing them to attaining high level of consumer satisfaction. This process is generates high demand for the companies however the cost is enhanced at the same time. This concept helps in creating an effective impact on developing organization for enhancing its market value and generating effective sale.
The marketing orientation is an effective concept high has helped the companies in developing competitive image within the market. Marks and Spencer has adopted this measures in order to gain high consumer loyalty and competitive edge within the market (Garoufallou and et.al., 2013). The process and research measures of the company helps in meeting consumer needs and demand efficiently. Moreover this measures has helped the company in developing consumer retention as well. Constant improvement of products and services has helped the company in enhancing product range and quality as well. This measures helped in winning consumer trust thus creating competitive edge within the market.
Product orientation is highly focused measures which demands high investment by the company in terms of time and cost. Strong marketing research and powerful market intelligence to respond accurately to the needs demands high investments for Marks and Spencer. This is an effective measure for global growth and development however this concept restricts product differentiation as major time of the company is spent in developing interaction and communication with consumers (Kalafatis, 2002). Moreover, retail segment have to face the risk of immediate change in trends and demands due to intense market concept. Thus, this is yet another factor which causes effective cost to the company.
Macro and micro factors influencing marketing decisions
Micro and macro factor analysis of the company is one of the crucial factor which helps in developing an effective impact on the growth and development of the organization.
Political factors: These factors deal with government policies and regulation which helps in developing the business opportunities or enhancing market competition within the economy. M&S has low impact of political factors on day to day business activities however marketing measures demand demands proper analysis of the same as this helps the company in developing effective brand image.
Economic factors: The economic factor deals with market population, GDP of the company, population rate, inflation etc. These factors are keenly observed by M&S in order to create analyzed the market efficiently before developing market measures (Tamilia, 2007).
Social factors: It helps in analyzing the trends and demands within the market. M&S evaluate the same in order to analyze the changing needs and preferences of employees for developing organizational growth.
Technological factors: IT helps in enhancing quality and winning consumer choices. M&S has adopted advanced technology to reach maximum consumers and implement effective measures of growth within the market.
Environmental factors: The impact of organizational operations on environment safety is keenly observed by the consumers. M&S has developed environmental friendly strategies to promote products and win consumer loyalty (Winston, 2012).
Legal factors: M&S operates within the legal and regulatory framework which helps the company in creating an effective brand image within the market.
Segmentation criteria used for products in different markets
Market segmentation is one of the crucial task of enhancing sales within the market. It is the process of dividing vast market into definite small segments in order to create efficient impact on the growth and development process of the company. Marks and Spencer is a global business unit which has developed high market demand in multiple locations. The segmentation strategy adopted by the company is:
Marks and Spencer has adopted the following measures in order to attain high market sales within global economy. The measures adopted by M&S are:
Geographical: M&S has adopted this measures in order to target the diverse location of the business and consumers from different parts of the world. The company has adopted the localized strategy of branding which helps in developing target market as per the culture and demand of the region.
Demographic: this strategy of segmentation divide the market on the basis of age, gender, occupation, income etc. this has helped the company in efficiently analyzing the needs and demands of consumers thus creating high growth prospects (Dibb, Simkin and Wilson, 2008).
Psychographic: M&S position its products to meet the psychographic needs and demands of the consumers. The high quality and premium product prices help in targeting high income social group. This has also helped the consumer in developing a positive attitude for the products and services offered by the company.
Target strategy for given product
Targeting is an effective measures which helps the company in seeking the potential consumers within the market and focus on them to develop marketing strategies and enhancing communication measures to develop market sales. The company is currently focusing on developing new product within the market to enhance the product portfolio and developing high market demand for the same. Marks and Spencer has developed the product concept of healthy salads to enhance the sales for food segment of the company. The product will focus on segmenting the market on the above mentioned measures. The targeting strategy for the given product is discussed henceforth.
In order to promote the current product in the global market the company will adopt undifferentiated targeting strategy (Agle, 2008). This strategy will focus on the mass market as the product concept and demand is effective for the overall market. The company will develop aggregate promotional measures in order to analyze the impact of product on target market. The strategy will focus on generating high market sales by mass targeting. The product concept of healthy food will generate high market demand and the brand image of the company will help in developing trust and loyalty within the consumers. Moreover, this strategy will focus on offering the same product to entire market initially to promote product concept and generate effective market demand.
Buyer behavior affecting marketing activities
Buyer behavior plays a significant role in determining the impact of product promotions and generating high sales within the market. The concept of buyer behavior deals with analyzing the impact of factors which influences customer behavior towards set products and services. Major factors influencing buyer behavior are:
Psychological: The perception, personality and social influence has high impact on buying behavior of an individual. M&S will focus of developing a positive psychological influence on the population in order to create a positive impact of the product on personality and attitude of the buyer which will help in enhancing sales for the product (Aljukhadar and Senecal, 2011). M&S analyses these factors to create an effective impact on consumer needs within the market.
Social: Influence from the family, friends and social groups helps in developing the buyer behavior for a product and service. M&S will thus focus on developing the promotional measures to develop positive influence for the product thus developing high market potential for the product. This measures helps the company in enhancing consumer perspective for the products and services within the market to develop high measures fro sales.
Personal: Demographic factors such as age, gender, occupation, health etc. have a vast impression on buying decisions of people. The healthy salad section of the company will create advertisement to influence the social factors of buyers which will help in favoring the sales of the company. These are the factors which the company uses in order to analyze and develop the individual buyer need which creates an low yet effective impact on the sale of the company.
New positioning strategy for the product
Product positioning is a process of developing the impression of brand image and name in the minds of buyers to enhance brand loyalty and demand for the product. This helps in enhancing brand image by increasing product recognition (Cohen, 2005). M&S will implement the positioning strategy in order to generate high sales within the market to target overall market. The product promotion will clearly define the usability and benefits of the product in order to attract maximum audience. The factors which will help in the same are discussed henceforth.
Clarity: The positioning strategy of the company will be clear and well defined which will help in minimizing the risk of confusion and distracting within the market for the product. It will focus on defining health benefits in delicious food options.
Consistency: M&S will be consistent with its positioning strategy in order to attain wide demand in due course of time.
Credibility: M&S has developed a premium brand image within the market. It will use it ensuring the quality of products for generating market demand for the new product.
Competitiveness: unique product identification through attractive packaging, logo and tag-line will help in developing a permanent image which will enhance the competitiveness of the company to generate high market sales.
Development to sustain competitive advantage
This is an effective growth strategy for the company in order to develop high and effective measures to enhance the business operations. For the given product ie healthy food category the company has adopted product development strategy. This measure has helped the company in enhancing the growth measures within the market by enhancing product range and consumer choices.
Product of the company has high and effective potential to develop high market sale to enhance competitive edge within the market. This helps the company in developing wide and effective market share. Marks and Spence will focus on creating an effective impact n he growth and development of product concept by efficiently defining various levels of products to enhance benefits and usability of the product within the market (Cravens and Piercy, 2008).
Healthy salad segment of the company will focus on attaining all the levels of the product by enhancing core benefit by delivering quality products in affordable and competitive price. Product packaging, presentation, variety and promotion will help in attaining the next level of product development. Finally, the services and credibility of the company will help in meeting the outermost layer of product development which will help the company in sales maximization and competitiveness of the product by creating efficient market demand. This will help the company in attaining an edge within the market thus sustaining growth and profitability.
Strategy for consumer convenience
The distribution strategies that the company will adopt in order to gain high market sales and enhance market competition are:
Intensive distribution: This strategy focuses on developing high market sales by enhancing the availability of the product efficiently within the market. The company will develop intensive distribution by enhancing supply chain to maximize the product sales. This will enhance the consumers in preferring the product highly in the competitive market (Wilson, 2010).
Selective distribution: This distribution strategy will focus on developing product availability by focusing on the regions generating high market demand. The exclusive stores of the company will help in developing sales by displaying the products and generating market sales. This efficiently helps in promoting the products and services by creating the positive perception in the minds of the buyers.
Exclusive distribution: This distribution strategy will help the healthy salad product of Marks and Spencer in creating exclusive promotion by developing stalls and market promotion in malls and food fairs. This strategy will help the company in attracting consumers towards products and turning non consumers into consumers.
Pricing tactic as per the marketing condition
The condition prevailing in market plays very effective role in terms of making the decision about appropriate pricing tactic. In this regard, it can also be said that the economic environment of country has greater importance as it help firm in making the selection of suitable pricing approach. For example, the country where Marks and Spencer is launching its new product such as flavored salad is facing the situation like recession. It is the condition in which it became difficult for the buyers with regard to afford expensive product (Wood, 2008).
The cost of production plays a significant role in determining the price of the product. If the company fix price lower than the cost of production it will bear huge loss for the company which cannot be recovered by high sales even. So, in the given circumstances Marks and Spencer can use price penetration tactic where in low prices are changes for the respective product. This will enable firm with regard to attract many buyers towards its products and services. However, in some other situation where economic condition of nation is stable and customers possess huge purchasing power. Then, in this condition Marks and Spencer can charge high prices for its flavored salad related good.
Marketing objective through promotional activity
The promotional activity of firm must be integrated with the marketing objective of Marks and Spencer. For instance, corporation has the objective to attract large number of young buyers towards its new product. Then in this situation, firm must carry out the selection of that particular promotional mean which will help in attracting large number of young buyers. In accordance with the given context, Marks and Spencer can use the modern mean of promotion like giving ads in social networking site such as Facebook and Twitter. With the help of this approach, corporation can spread information about its new product among targeted buyers.
Likewise, Marks and Spencer has the marketing objective to raise its sales by 20% till the year 2016. This objective of cited firm can be met by using the combination of different promotional tactic such as TV advertisement and placing ads in newspaper and magazines etc. Through this way, firm can cover large number of buyers and as the result of this it can met its goal in an effectual manner.
Extended marketing mix
Additional marketing mix with specific references to Marks and Spencer new product such as flavored salad is depicted in below:
People: For any enterprise, employees play very critical role. This is because, it is with the help of them only the query as being obtained by buyers regarding the new product can be resolved. Effective consumers services is yet another measure which helps the company in attracting consumers and developing consumer satisfaction.
Process: Firm has to streamline its process of delivering new product to buyers. This is done by cited firm by using an effectual mean of distribution (Figge and et. al., 2002). The well developed and advanced means of operations for stores and online measures has helped the company in developing effective impact on the sales. High speed operations helps in attracting new consumers in order to minimize the time of billing.
Physical evidence: For example, Marks and Spencer has decided to sale its product through store. Then, order to lure buyers towards its store enterprise must design the interior and exterior of its store in a modernized way. Effective physical and facility layout also is significant for the same. Lack of car parking may result in falling sales for the store inspite of all facilities hence the company must closely examine the physical layout factors as well.
Marketing mix for two different segment in consumer market
The flavored salad of Marks and Spencer product is segmented on the basis of age of buyers. Thus, the segment selected for this product is young and old buyers. In this respect, following marketing mix is prepared for the given two different segments of Marks and Spencer product such as flavored salad.
Difference between domestic and international marketing
For the firm it is essential that it must frame its international marketing tactic as per the cultures and values followed within country. This is because, through such type of activity only firm can create lasting impact upon the buyer and thereby it can influence them with regard to use the products and services of Marks and Spencer in an effective manner.
Marketing is one of the most crucial part of developing high market sales within the economy. This helps the companies in creating effective measures of promoting the products to develop high and effective brand image within the market. The above report helps in developing an effective insight about various marketing measures and tools which helps the company in developing high market demand. This helped the company in creating an effective impact on the consumers and competitors as well. Hence, the report clearly reflects that the product concept of healthy salad by M&S has high measures for growth within current competitive market.
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