64159435 Princinples of Strategic Marketing Management

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TABLE OF CONTENTS

S. No Topic Page

1 Introduction . 3

2 Task 1.1 . 4-6

3 Task 1.2..

7

4 Task 1.3 .. 8

5 Task 2.1 .. 9-10

6 Task 2.2 ..10-11

7 Task 2.3 ..11-13

8 Task 3.1 .. 14

9 Task 3.2 ..15-17

10 Task 3.3 ..17-18

11 Task 4.1 .. 19

12 Task 4.2 .. 20

13 Task 4.3 ..20-21

14 Conclusion .. 21

15 References .. 22


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Introduction:

In 1884 Michael Marks and Thomas Spencer founded the Marks & Spencer which is now

one of the UKs biggest retailers in terms of foods, clothes, and finance and house ware. It

operates around 30 countries creating the value of 118 billion pound. It has certain missions

and values.

The main purpose of this assignment is to analysis the strategic marketing management of the

Marks and Spencer using different strategy and marketing tools. Similarly, the recent

marketing actions of M&S will be analysed and evaluated and the improvement that has been

done since its 1998. These assignments will also evaluate the reason why M&S nearly

collapse and what was the recovery program done to overcome from such problems.


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TASK 1:

PRINCINPLES OF STRATEGIC MARKETING MANAGEMENT

1.1 Role of strategic marketing:

Marketing is the process where management are accountable for identifying, expecting and

pleasing the customer needs profitably.

According to The Charter Institute of Marketing, marketing is tactical business job that

generate value through motivating, assisting and satisfying the customers requirements.

In the words of Philip Kotler, good companies meet up with needs whereas great companies

build markets.

The strategic marketing roles are to build up the strategy to handle the participants, spot

market opportunities, build up and commercialize the new products and services, distribute

the resources according to marketing deeds and plan the suitable organization formation to

make sure that the desired performance is attained.

(http://www.staffs.ac.uk/courses_and_study/courses/cim-professional-postgraduate-diploma-

in-marketing-tcm4231875.jsp)

Marketing plan helps to inspect and analyzed the marketing aims and objective and give the

foundation for the marketing assessments. It also presents with detail viewpoint of the

business and provides the information to build the strategy for the target markets andcustomers as well as served as a tool to measure the performance.
http://www.staffs.ac.uk/courses_and_study/courses/cim-professional-postgraduate-diploma-in-marketing-tcm4231875.jsphttp://www.staffs.ac.uk/courses_and_study/courses/cim-professional-postgraduate-diploma-in-marketing-tcm4231875.jsphttp://www.staffs.ac.uk/courses_and_study/courses/cim-professional-postgraduate-diploma-in-marketing-tcm4231875.jsphttp://www.staffs.ac.uk/courses_and_study/courses/cim-professional-postgraduate-diploma-in-marketing-tcm4231875.jsp


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Sequencing And Scheduling of Activities

The marketing managers can offer purpose, path and arrangement to different marketing

activities. The marketing manager who has a duty to implement the plan should prepare the

timetable of completing the marketing activities. There are different marketing activities such

as:

trade and conference shows advertising development of promotional and informational material progress of displays and signs online information telephone promotions

Developing the schedule of marketing activities is a difficult task as it involves different

activities that are required to implement the plan. The following are the necessary steps that

are required for scheduling and timing of the activities:

1. Recognizing the specific activities to be performed such as pricing of the products,promotion and distribution activities fot the marketing plan along with the specific

activities such as tranning employee, structural change ans purchase of financial

activites.

2. Established the time frame for each activity to complete. Some activites requiresinitial planning and time before they are completed while others can happen more

quickly once the plan has start.3. Determing the sequence of the activities. There are various marketing activities that

are to be performed in a prearranged order. Hence such activities should be identify

and distingused from other activities which can be performed simuntanesouly with

other activities.

Integration of Marketing Activities

Integrated marketing is an important part of marketing department of an enterprise.

Integration marketing brings all the marketing department in a single stage and united

them.

Integrated marketing is integrated marketing can be described as:

A process of controlling various activities such as marketing projects, assets, process

flows and authorization.

It contains managing the people, vendors and the customers

Constructiong and controlling all the in and out going marketing communtications.


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Resource Requirements

Resources are required to complete the task after recognizing the marketing activities,

establishing the sequence and fixing the schedule.

Implementation of effective marketing activities depends on the resources in form of people,money and technology and assistance from suppliers and partners.

Monitoring and Control Elements

The best way to analysis the performance and whether the objective has been achieved or not

is to take a help of marketing audit. The main objective of marketing audit is to pin point the

problems in a current marketing activities and to take necessary action to solve the problems.

The desire results can only be achieved through marketing activities if it is executed

properly. Hence, there might be a difference between actual act and performance. To decrees

the difference on the actual activities and the company expectation, marketing activities

should be analysed and monitor on a regular basis. A good marketing system helps the

organization to identify the problem before they occurs.

Basically, there are two different kinds of marketing controls: formal and informal

controls. Formal controls are the process developed by the firms to operate the marketing

strategy successfully where as informal controls are traditional employee based thatdeviously influences the employees behaviours, as group and individuals.


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1.2 Processes involved in strategic planning:

The process involves thinking about every step the company takes to sell, service and manage

the customers. The following points are the key to this process: There are various processes

involved in strategic planning which necessary action a companys takes to sell their

products, services and handle the customers. The key points for this process are as under:

1. Understanding of market and strategy to infiltrate it.

2. Supply channels used by the companies to join with customers.

3. Pricing strategy of the company

4. The messages that the company delivers to its market.

5. The look and feel ofthe companys marketing materials

6. The experience that the company delivers to its market and customers

7. The actions ofthe companys sales and service representatives.

8. All of the planning, preparation, forecasting and measurement ofthe companys

investments.


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1.3 Links between strategic marketing and corporate strategy:

Kenneth Andrews (1987), defines corporate strategy as"...a pattern of decisions ... (whichrepresent) ...the unity, coherence and internal constituency of a company's strategic decisions

that position a company in its environment and give the firm its identity, its power to mobilise

its strengths, and its likelihood of success in the marketplace."

Marketing strategies is actions that allow the companies to utilize it useful resources in

favourable opportunities to increase the sales and achieve the desire goals.

Marketing strategies is the process that allows the business organization to concentrate on the

limited resources for the major opportunities to increase the profit and obtain the constant

benefit from rivalry. It is more effective and useful if it is an important aspect of the businessstrategies. During the increase in corporate strategies, assignments and business goals some

aspect of marketing strategic are deducted. Marketing strategic are closely linked with sales

as customer being main basis of earning revenue by the business.


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TASK 2:

TOOLS FOR DEVELOPING STRATEGIC MARKETING STRATEGY

2.1 Assess the value of models used in strategic marketing planning:

There are various models used in assessing the strategic marketing planning such as Porters

five force model, SWOT analysis, STEEPLE analysis, BCG matrix, Product Lifecycle model

and Ansoff matrix. For this task I have used SWOT analysis a model to assess the strategic

marketing planning of Marks and Spencer.

SWOT analysis of Marks and Spencer

Strengths Weaknesses

Sales of clothes have stabilised, andfood sales have increased

New chief executive with freshideas and sales led growth

Good advertising Used iconic models to attract core

target group.

George Davies Product diversificationhome and

furniture

Turnaround in sales and growth

Resignation of three key membersof staff: George Davies, finance

director; Andrea White and Melanie

Davieshead of merchandising

Previous poor performance, sevenstraight quarters of falling sales

More expensive than other highstreet storeslimited market.

Focusing on older generation maylose younger market.

Opportunities Threats

Rebuild the companys image withcontinued advertising such as the

successful M & S food adverts

Focus on core market UK has an ageing population Introducing wider ranges such as

Previously tarnished reputation andimage

Competitor product ranges whichdirectly compete with M & S food

such as Tesco finest

Decline of the high street


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Per Una, Autograph and Classic

collection to stores

Use younger more contemporarymodels to attract youngergeneration.

Internet food shopping butopportunities may be limited

Other serviceseg banking,insurance, savings etc.

May lose youth market General increase in internet

shopping

Social tastes

Branding

2.2 Link between strategic positioning and marketing tactic:

Strategic positioning is the future positioning of the organization considering the

environmental change and awareness of that positioning. The organization strategic

positioning contains the plan for required position in future based on the present and expected

developments, and developing the plan to understand that positioning.

MARKETING TACTICS

Marketing tactics typically includes four Ps such as product, price, promotion and place

tactics.

Marketing 4 Ps:

1. Product - The product tactics are engaged with real goods and services, and the way itlinks with the users needs and wants. The choice of products contains elements such as

warranties, support and guarantees.

2. Pricing -This is related to fixing the price for a products including the discounts.

3. PlacementPlacements means the way products are sold or reached the buyers. It also

refers to the channels through which the products or services are sold at different

geographical region, age groups etc.


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4. Promotion - It contains ads, sales endorsements, promotional teaching, advertisement and

individual sellings.

2.3: MERITS OF RELATIONSHIP MARKETING:

RELATIONSHIP MARKETING

Relationship marketing became popular in 1980s when the marketers start to focus on

customer retention from customer acquisition. Relationship marketing is known as marketing

strategy whose prime focus is to set up and keep profitable and long-lasting relationship with

the customers. Relationship marketing includes perspective of customers wants and needs

throughout their life cycle and making available of different kinds of products and services.The main objective of relationship marketing is to enhance the loyalty of the customers. The

important aspects of relationship marketing are:

Surpass Customer happiness Customer value orientation Long term thinking Greater focus on customer services High amount of customer contact Large customer contact

PAYNE AND BALLANTYNES SIX MARKETS MODEL

In the year 1991, Christopher, Payne and Ballantyne developed six market models. The

model is formed with six role-related area where each part represents the scope of

relationship marketing and relating relationship with various organizations and persons that

can contribute directly or indirectly in effective organization marketing. In this model the

central focus is on internal market which stress away the main subject of marketing that is

customers.


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This has led to a reshuffling of the six markets model, placing the customer at the centre of

the model.

Customer Markets

The customer relationship is still a main focus point for all the company activities. Hence, the

six markets model has put a customer market in the middle bounded by other five markets.

Through effective customer relationship practice and approach it is easy for the companies to

develop ideal customer experience, keep the customer and include new customer in the

existing customer portfolio.


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Supplier markets

They are known as business to business relationships. They are also known as vertical

relationship as it mixes all or fraction of supply chain.

Internal market

Basically, internal market includes employees. They are very important for marketing as they

are the one that build the relationship with the customers.

Recruitment Market

As your staffs are arguably the most valuable asset to your business it is key to involve the

providers of staff.

Influence markets

An influence market includes the outside bodies which impact on the business environment

of the organization. In terms of relationship market, influence market are essential to an

organization as the member of this market consist of bodies that effect directly to an

organization. Hence, it is very important for an organization to find out the main influencers

for their market to protect the centre business (Cranfiled School of Management 2000, p.23)

Referral markets

Referral marketing refers to the marketing done through word of mouth to create

recommendation. Referral marketing is progressively more effective way to use the resources

for creating business.


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TASK 3:

TECHNIQUESD FOR STRATEGIC MARKETING

3.1 STRATEGIC MARKETING TECHNIQUES:

There are various strategic marketing techniques that help to increase the growth in a market

which are described as under:

1. Keep Adding Something New

The Company can increase its sales by adding new products or features time and again. By

adding the new products and services enhance the sales of the business in the following ways:

Draw new customers who were before not keen in the existing new products andservices.

It also helps to increase the sales by attracting existing customers who are keen use orhave a new service and products.

2. Become a Valuable Resource

The Company should be able to make themselves as a valuable resource in terms of

companys view and customers. The company should help the customers by providing free

information, faster and easier services in an affordable price. By doing this, the companies

get the chance to sell the new products those customers who will visit again for the help.

3. Separate from Competition

There are different companies in the markets now days providing similar products and

services to the customers. Hence, the company should create a reason for those customers to

do the business with them. The company should provide the different features and services in

compare with other companies to the customers. They should share such information to all

the people through effective advertising.

4. Promote the End Result

The customers are really keen to get benefit from the products not keen to have the products.

So, it is necessary for the companies their website, sales letters and advertisement promotesthe end results that satisfy the customers wants.


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3.2 Strategy Options:

Porters have explained three different types of strategies that business used generally to get

the maximum advantage. Porters have explained these strategies in a two dimensions such as

strategic scope and strategic strength.

Cost Leadership Strategy:

This strategy involves the firm winning market share by appealing to cost-conscious or price-

sensitive customers.

Differential Strategy:

Under this strategy, the company differentiate its products in a different way to make them

unique in compare with the competitors. The way of differencing the products depends on

the nature of the business and product and services themselves.

Focus Strategy:

The company that use the focus strategy focus on a particular segment of the market and

understand that market and produce the products in accordance to the needs and demands of


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that markets. Hence, the company who use this strategy tends to have a good customer

loyalty.

Shell Directional Policy Matrix:

Shell Directional Policy Matrix is the modification of Boston Matrix. The horizontal axis

represents the forecast of sectors profitability whereas vertical axis represents the competitive

ability of the companys. The position of Business Unit (SBU) in whichever cell of the matrix

points out the various strategic decisions

(http://marketingteacher.com/lesson-store/lesson-shell-directional-policy-matrix.html)

The zones are explained as under:

Leader - Important resource are firmed upon SBU Try harder - Might be weak in long term perspective but its ok for

now.

Double or quit - chance on possible main SBUs for furture Growth - market growth focusing on more resources Custodial - just like a cash cow, milk it and do not commit any more

resources.

Cash Generator - Cash generator for expansion somewhere else.
http://marketingteacher.com/lesson-store/lesson-shell-directional-policy-matrix.htmlhttp://marketingteacher.com/lesson-store/lesson-shell-directional-policy-matrix.html


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Phased withdrawal - cash moved to SBUs by greater probable. Divest -. Clear up the cash as soon as possible.

3.3Strategic marketing objectives:

Marketing mix-7 ps:

(http://marketingteacher.com/lesson-store/lesson-marketing-mix.html)

Price

There are different ways of pricing the products. The best price of the products is the one that

provides best value to the customers.

Place

Place in other words channel is methods from where the goods are send to the user or the

customer from the producer or manufacture.

ProductProducts are the tangible assets that can be purchased or sold.

Promotion

Promotions is the marketing tools where the organization markets its products.

Physical Evidence

Physical evidence is the substance of a service. But, consumers rely more on material cues as

there is no physical aspect to service.


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People

People are the valuable aspect of any service or experience. The services are created and

used at the same time whereas, the customers experience changed to fulfil the needs of the

individual who consume it.Process

There are a number of perceptions of the concept of process within the business and

marketing literature.


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TASK 4:

RESPONSE TO CHANGE IN THE MARKETING ENVIROMENT

4.1: Changes in external environment:

All of those (political, economic, social, technical, legal and environmental) factors

will to some extent apply to the retail industry UK.

POLITICALAs UK is on European Integration and Free Trade Agreements, it has

opened the markets for UK companies to invest in Eastern Europe and vice versa.

ECONOMIC - Due to the recent recession, there has been an economic meltdown in

various countries along with UK. However, there has been a positive sign of

recovering from such economic meltdown. Consumers are hopeful and there has been

a boom in retail industry.

SOCIALThe change in the lifestyle and the taste of the consumer can be as

opportunities or as threats. Opportunities can be in the aspect of new markets and

threats can be the alcohol being socially accepted.

TECHNICALTechnologies are playing a vital role nowadays. People prefer to buy

online nowadays instead of going into the stores. The management of the company

has been replaced by the IT system. Hence, technology is vital nowadays for any

business organization

LEGALLegal has two aspects external and internal. In some countries there arecertain laws that effect the business environment whereas some companies maintain

certain policies for themselves. Legal analysis considers both of this aspect and

develops the laws such as consumers law, safety standard, labour law etc.

ENVIRONMENTALThis includes all the things that persuade by the surrounding

environment. The fear is in terms of legal cost in terms of health and safety.


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4.2: An internal analysis:

There is a strong corporate personality of M&S

Renowned brand name Defensive culture and corporate principle Confidence and Superiority.

In certain circumstance M&S was forced to break down in its principle. For example, when

M&S closed the store in France, it was not able to provide the same level of protection and

benefit that employees of M&S staff expect. This intended affected the M&S brand global

brand value.

4.3: Strategic Marketing Responses:

a) Total focus on UK retail

The company possess only the products and brand that belongs to M&S and hence provide

the quality and value for money service to the customers.

Recovery plan for Clothing:The company is planning to boost the confidence of their customers in the clothing

business. It will fix the price that customer are able to pay or afford to buy it.

Introducing the new trendy cloths for differed age groups male and female with

different sizes is what it is planning to do.

Expansion in growing product areas such as Food, Home and Beauty:M&S foods have been widely accepted by the customers and has creaeted a trust

among the custoemers. It is also plannig to enter into the housing business such as

furniture and gifts which is in a boom nowdayz.

More intensive use of space:Selling space will be reallocated to higher growth product areas to maximise returns

per square foot.

Being closer to the customer:

For this the M&S are opening some stores in big cities for 24 hours.


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b) Value realisation, cost cutting measures and closure of loss-making businesses

To give priority and recover its UK business, M&S aims to close down its non-core business

and assets after discussion with its employees.

Conclusion:

Competitive marketing system motivates the firm to target larger market share. In some

case, firms are successful in their fights and become a dominant factor in the market. From

the company perceptive being dominant is good as it increase the profit where as from

societys perceptive the dominance may not be desirable. In terms of M&S, it is able to

create and gain dominance global brand. By applying different marketing strategies with its

advantages and disadvantages, M&S is able to make its marketing strategy effective.


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REFERNCING:

http://en.wikipedia.org/wiki/Marketing_strategy(accessed on 25th may 2013)

http://en.wikipedia.org/wiki/Marks_%26_Spencer#Marketing (accessed on 26th may 2013)

http://manifestedmarketing.wordpress.com (accessed on 25th may 2013)

http://www.marksandspencer.com (accessed on 24th may 2013)

www.businessballs.com (accessed on 25th may 2013)

Hasting H- Improve your marketing to grow your business: insights and innovation that drive

business and brand ( Wharton school pub, 2008)pages 12-36

Kotler P- Principles of marketing, International edition(edition 2008)pages 23-67

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64159435 Princinples of Strategic Marketing Management