Marks and Spencer and Global Environmental Factors - Essay Example

Running Head: Marks and Spencer Marks and Spencer Introduction Marks and Spencer is a leading player in the United Kingdom retail sector. The organization has an estimated three hundred stores in the United Kingdom. It has a diversified product line consisting of food, clothing, financial services, etc. Its core business philosophy has been to amalgamate excellence and worth in order to provide an exhilarating experience to customers. The success of the organization is due to clear vision and mission statement. Marks and Spencer seeks to integrate its core values by providing quality products and services to consumers. The organization has created powerful and dynamic brands since the nineteenth century. It has pursued robust strategies that have enabled it to register phenomenal growth. Dynamic and proactive strategies are the key to success of the business organization. This report will seek to analyze and assess the marketing operations of the organization. Marketing Mix Marketing mix is an optimized tool that helps the organization to determine the overall eminence of products and services (Bennett, 2003: Pg 34). Business organizations can utilize this tool to determine the strengths and weaknesses of competitors. This information helps the organization to formulate a competitive marketing strategy. Product Product refers to any object or service which is mass manufactured for public consumption. It also refers to the tangible and intangible benefits that consumers derive from specific products and services. Marks and Spencer has a broad and diverse product line for its consumers. Clothes have been the primary brand of the organization. However in recent years it has diversified into food items, financial services, technology products, cosmetics, and perfumes (Capell, 2006: Pg 35). Price Price refers to the returns that are obtained by customers when they purchase products and services (Phillips, 2005: Pg 87). Marks and Spencer pricing strategy is based upon the promotion of high quality premium products. Some of its brands like St Michael and Per Una have become household names in the United Kingdom. At specific outlets, the organization offers considerable discount for its premium products. Place Place refers to the strategic locations of business organizations. Marks and Spencer operates in major urban centers. Its core stores offer entire product lines based upon local trends and consumer behavior. Some of its outlets are positioned at major tourist centers in order to offer discounts on premium products. Promotion Promotion is concerned with creating brand equity and image inside the market. Marks and Spencer has adopted the slogan of “Your M&S” in its advertising campaigns. This slogan helps consumers a sense of belonging and attachment with the brand. Marks and Spencer utilizes the mass media like television and magazines in order to sell its products (Le Riche, 2003: Pg 45). It also utilizes the internet by offering regular updates and promotions on their website. People A qualified and competent workforce helps to accomplish operational and strategic goals. Marks and Spencer recruits top notch managers at its departmental stores. Managers are empowered to implement innovative and creative business strategies. Employees are recruited based upon their skills and experience (Jobber, 2001: Pg 91). Marks and Spencer prefers employees with competent customer service skills. It has an efficient customer support staff that addresses consumer apprehensions and concerns. Process Process is an integral element of the marketing mix. Marks and Spencer utilizes technology in order to automate and streamline its services. It has created an agile, reliable, and decentralized management structure. Web services are offered to consumers at a 24/7 process. Marks and Spencer utilizes satellite and wireless networking technology in order to ensure rapid communication between distribution centers and core stores (Marks and Spencer, 2000: Pg 12). Physical Evidence Physical evidence comprises of tangible benefits that a consumer can enjoy when visiting an organization. Core stores offer a systematic catalogue for consumers that wish to purchase specific products. This efficient system enables consumers to quickly obtain the desired product. Food cafes at stores offer hospitality services for consumers. Target Market Marks and Spencer has historically targeted the upper classes by offering premium products. This has changed with the advent of competitors that have sold cheap products to different consumer segments. Marks and Spencer has been able to diversify its product line in response to problems faced during the late 1990s. It has restructured its business processes in order to achieve optimum results. Marks and Spencer now enjoys a diverse and robust consumer segment. It offers products for various target audiences based upon industry trends and consumer behavior. Its food products target the business class and shopper segments. Most of its stores are located at prime business locations. This means that consumers will visit food cafes for lunch and dinner (Le Riche, 2003: Pg 45). Clothes remain the primary product line of the organization. High quality designer goods enjoy a considerable share in the market. Marks and Spencer remains oriented towards individuals who are more than thirty years old. The organization has retained its conservative attitude towards advertising and promotion. Conclusion Marks and Spencer is a highly successful giant operating in the UK retail sector. The success of the organization has been due to its clear mission statement and vision. It has managed to become a powerful and vibrant brand in the UK for the past one hundred years. A diverse product line enables the organization to achieve efficiency and effectiveness. It has premium products that cater to the unique requirements of various segments. Marks and Spencer pursues a dynamic business strategy in which its tries to give the consumer a sense of attachment and feeling with specific brands. This is a highly successful strategy that has enabled excellence and quality at operational and strategic levels. Marketing operations of the organization is also based upon applying smart and prudent strategies. Marks and Spencer conducts an extensive research and appraisal of the business environment. It determines clear and precise goals based upon its strengths and weaknesses. Appropriate business strategies are formulated in order to take advantage of business opportunities. The organization seeks to use its core competencies in order to maintain competitive advantage. Global Environmental Factors Introduction The rapid rise of globalization has created tremendous opportunities for business organizations. However it has led to significant challenges for business processes and structures. In the twenty first century, marketing staff cannot ignore the importance of global environmental factors. These factors need to be studied and analyzed in order to achieve optimum results. This report will seek to evaluate the significance of global environmental factors in marketing. Background Global environmental factors play a critical role in the development of marketing strategies. These factors help the organization to develop a robust and reliable response to business problems. Marketing department needs to take into account the various global environmental factors in order to make smart business decisions (McDonald, 2002: Pg 88). Globalization has created opportunities and challenges for large organizations. An effective marketing campaign should seek to conduct extensive research and analysis of the external environment. Significance Some global environmental factors like technology have revolutionized business processes. The Internet has become a powerful medium for conducting business transactions. Customers can purchase goods using online portals at any time. Marketers need to devise efficient and effective internet ads. Websites can have content in native languages for specific countries. This approach helps to improve the revenues and sales of the organization. Similarly other technological advances like communications enable the rapid coordination between the head office and branches (McDonald, 2002: Pg 87). RFID is a powerful and versatile technology that allows the organization to keep track of its inventory. Similarly there are other factors like corporate governance and responsibility. Multinational organizations have come under the limelight due to a series of high profile corporate scandals. Marketers need to demonstrate that the organization is offering safe and secure products and services. An advertising campaign must also focus on the corporate social responsibility of the organization. Organizations need to take into account the economic fluctuations in the global market. Marketers must be able to devise cost effective strategies that can enable them to survive in times of economic recession. This means lowering operational and administrative costs. Marketing procedures should seek to evaluate cost effective products for new target segments. Marketers must be able to identity and recognize new business opportunities and threats. The global nature of business has created diverse source of suppliers and distributors for organizations. Competitors seek to purchase goods that are produced at low costs. Marketers must evaluate the cost effective way of obtaining raw materials and finished products. This can be achieved only through a logical and practical manner. It requires the pursuit of dynamic and prudent business strategies (Jobber, 2001: Pg 78). The organization must be able to achieve excellence and quality. Marketers must also be enlightened about various political regulations in the global market. Government regulation for instance has become a standard practice following the sharp economic recession. This means that marketers will need to revise and restructure their business strategies in coordination with global fluctuations. Targeting international consumers requires the presence of customized and specified marketing strategies. Marketers need to conduct an extensive analysis of local requirements and preferences. An effective strategy for a specific consumer segment might not work for another segment. Diversification, innovation, and creativity are the key to success when operating in a global environment (Johnson & Scholes, 2002: Pg 45). Business organizations need to have flexible, reliable, and agile business structures. Marketing activities must develop unique conceptual frameworks that can be utilized for efficiency and effectiveness. Conclusion Global environmental factors have become crucial for marketing processes and strategies. This is due to the global nature of corporate business in the twenty first century. Factors like technology, corporate governance, local preferences and industry trends need to be taken into account by marketing departments. Robust and logical strategies help to ensure optimum results. The organization must conduct an extensive appraisal of new business markets. Appropriate strategies should be devised in order to achieve excellence and quality. Cost effective solutions need to be devised by marketers in order to maximize investments. These various factors need to be analyzed and assessed in a smart manner. The organization should be able to conduct an extensive audit and appraisal of the global market. Appropriate strategies should be in place in order to achieve superior results. Contingency plans should be in place in order to response to problems in marketing strategies and plans. A comprehensive approach towards marketing in the global environment will produce positive outcomes for the business organization. References Bennett, R. (2003). International Marketing Strategy, Planning, Market Entry & Implementation. London: Kogan Page Limited. Chris Phillips, I. D. a. R. L. (2005). International Marketing Strategy Analysis, Development and Implementation. London and New York: Routledge. Graham, P. R. C. J. L. (2005). International Marketing (twelfth ed.). New York Jobber, David. (2001), Principles & Practice of Marketing, 3rd ed. London: McGraw-Hill. McDonald, Malcolm. (2002), Marketing Plans: How to Prepare Them. How to Use Them, 5th ed. Oxford: Butterworth-Heinemann Johnson, G & Scholes, K (2002) Exploring Corporate Strategy (6th ed.). London: Prentice Hall Capell, Kerry. (2006). "Britain: lighting a fire under Marks & Spencer."Business Week International, 35. Le Riche, Timothy. (2003). "Closure date set of M&S leaves void at Heritage Mall." Edmonton Sun, , 44. Marks and Spencer. (2000) Marks & Spencer Launches Two New Formats. PG. Read More