The Fashion Industry and the New Consumer - Essay Example

The fashion Industry and the New Id Supervisors Introduction This report investigates marketing conceptsfor the one of the United Kingdom top fashion brands Marks and Spencer that has operated all over the world with over 130 years of experience in the fashion industry. Marks and Spencer is one of the top UK retailers of clothing and other fashion apparel with competition from H&M among other stores. This report will assess different marketing concepts and marketing strategies that Marks and spencer uses to market its products in order to reveal the reasons of decrease in income the company has faced during the last five years (Armstrong & Kotlel, 2009). In order to realize this, the report will also critically discuss the impact implementing marketing concepts to its products with regard to target audience (Brassington & Pettit, 2004). Marketing Concept in Marks and Spencer When we discuss marketing oriented organisations, it is agreeable that Marks and Spencer is one of the organisations in the United Kingdom that practices it. As a matter of fact, the fashion retailer can be described with five major characteristics of marketing oriented organisations (Brassington & Pettitt, 2006); First of all it focuses on extensive and wide spread use of marketing research. The organisation also emphasizes the benefits of buying their products, which are based on the attributes of the same product, it keeps on expanding its product lines in all categories and geographical regions. The company makes use of various innovation schemes in order to enhance the value of the product to its target customers and lastly. The company focuses on adding value to customers like free delivery, warranty and credit availability (Day, 2004). According to Armstrong, marketing and selling concepts usually focus on the selling of the products and moving out of firm’s products. This is usually looked at in a bigger perspective. Marketing concepts are meant to make a retailer product, meet the needs of its customers and also be able to make profits for the organisation (Doyle & Stern, 2006). It means that a retailer will put his target on selling his goods and service, however, in order to succeed it is necessary to persuade its customers to embrace the products and make a decision to buy (Dibb et al., 2006). However, a consumer may buy a product due to special tactics applied by the firm and not be satisfied. This means that the marketing concept was only focussed on making profits for the organisation, however, proper marketing concepts should be directed at meeting the demands of the clients; meaning that the concepts must be customer focussed. In other words, if retailers and wholesalers or distributors are concerned, it is inevitable that one should engage in a strong marketing campaign in order to sell the products. This is because they operate in the retail store for both the purpose of making profits and meeting customers’ needs (Hooley et al., 2008). Retailers will always want to have their stock move as fast as possible so as to re stock and make more profits. (Kotler et al., 2009). Consumer Behaviour and Marketing needs In the year 2004 the Marks and Spencer brands of clothing for women, men and children suffered a great downfall. The reason for this was that consumer needs and behaviour was changing and people become more oriented on stylish clothes rather than simple and decent as it is with most of the Marks and Spencer brands. In this case, consumers were not satisfied with the Marks and Spence brands. This made the industry suffer major losses; the cloth fashion retailer store finally got a wakeup call leading them to engage into deep marketing research and campaign (McDonald, 2008). The marketing campaign was aimed at the modern consumer who seeks not only the brand, but style, trend and social blending. Marks and spencer thus had to increase their cost of communication in order to allow the consumers to know that they were going to build a positive fashion that meets the needs of customers in order to build up a new trend that will be attractive to customers (McDonald & Christopher, 2008). One of the communication gimmicks that they used is ‘Your Marks and Spencer’ in order to establish loyalty with their customers, its marketing concept was focussed on customers’ confidence and loyalty on the Marks and Spencer Brand. During the last five years Marks and Spencer has also faced decrease in income due to low showing of merchandize sale. According to experts, this happens due to lack of glamour that makes customers dissatisfied. New market conditions demand from Marks and Spencer not only to sale its own brand, but also offer other third-party brands in a big department store; more segmentation is needed (Saunders cited in Hope, 2014) Experts also argue that Marks and Spencer need to improve its identity, because it was lost. It is necessary to pay more attention to core customers, who are over 55 years old and like more traditional style. Instead the company is trying to satisfy younger buyer turning to fast fashion sacrificing the interests of core audience that is the reason of low income. The prices should be also corrected, because they became too high (Berg cited in Hope, 2014). However, there is an opposite opinion, according to which, the direction on fast fashion should be kept, but it is necessary to occupy international markets making its brand more modern (Copestake cited in Hope, 2014). It is necessary to pay attention to competitors such as Primark and Topshop, whose clothes are more modern and much cheaper (Buik cited in Hope, 2014) . Marketing Segmentation, Targeting Audience and Positions Some of the macro environment factors for Marks and Spencer would include the company profile, marketing intermediaries, suppliers, competitor, customers and the general public (Brassington & Pettit, 2007). Each of these areas plays a very important role in marketing the organisation and ensuring expansion of the organisation. Macro environment influence however, are not controlled by the firm, they are usually external and will look at economic, natural, technological, cultural, political and demographics of the organisation (Hoffman et al., 2009). In discussing the Macro Environment factors for Marks and Spencer, the report looks at two factors, which are demographics and economic factors. Demographics in the fashion industry looks at the way clothes are designed and sold in relation to customer Gender, Age, Size, Family, Occupation, income, religion, race, education and nationality (Kimmel, 2010). For Marks and Spencer, its main target has been to cover all the needs and wants of its customers by demonstrating more style for women clothing due to their ever changing demand and style (Kotler & Keller, 2010). The company also enhances the children and men’s wear. The company takes into consideration the buying power of its customers, and looking at the current trend, the buying power has increased due to the fact that consumer income is also increased. And even with the ever changing economic times customers continue to buy products (Scott & Hoboken, 2009). In the Marks and Spencer Micro Environment, the whole set up of the company was revived after the downfall of 2004. This includes the company’s store interior and exterior which was renovated so as to be more communicative to its customers and also competitive with other retailers. The objectives of the company were also changed keeping in view of the situation at that time (Blyth, 2006). When we look at Market segmentation it involves dividing markets in to different segments of people and class, so as to meet different taste and preferences from the consumer point of view. In the fashion industry, I t will also involve age differences, shapes and sizes, gender, culture and occupation. Other areas that Marks and Spencer looks when doing market segmentation will include demographics, psychographics, geographic and behavioural. Due to the fact that a fashion industry such as Marks and Spencer needs to keep on identifying new markets and fashion trends, the company should occupy international markets (Armstrong & Kotler, 2012). In the past the company has also ventured in to the Asian market with three segmentation criteria including geographic, demographic and psychographic. The company opened a store in Central Asia which was designed to meet the climate of both the United Kingdom and that of Asia. Demographics on the other hand means that the Marks and Spencer management has to see to it that they meet the demands of target customer for which the brand is offering. For example in Central Asia, the clothing had to be conservative unlike the market in the United Kingdom where they do not necessarily need to focus on this. On the other hand, the type of clothing that is made for the United Kingdom market cannot be worn in the Central Asian market as most customer will considered it to be offensive due to their religious culture which do not give them the permission to wear offensive clothing as they may put it. Liberal clothes have less market in the Asian market as compared to other parts of the world (Egan & M.Thomas, 2010). People personalities and social classes also play a very important role in marketing for the fashion industry. This means that marketing strategies applied by Marks and Spencer can better target the markets when the needs of each criterion is met properly and will be able to be the Marks and Spencer satisfies consumers of every geographical region, taste and preferences. Target for marketing Marks and Spencer clothing will also look at different age groups. For example when Marks and Spencer makes clothing lines for teenage girls, they must ensure that it is more colourful since girls are more conscious for their styles. They would live to meet the taste of Hanna Montana of the modern days. The media and the social media to be particular influences so much what teenage girls decide to wear in the modern times (Baker, 2003). On the positive side, markets for teenage girls is very attractive as compared to boys as they keep on getting bored with clothing, persuading them to buy new ones. One of the basic reason for this is that fashion for teenage girls is closely linked to friends, the media and peers. They are easily influenced by anything good they see, meaning that it should be easy for a fashion mogul such as marks and spencer to tell their tastes and preferences, it is necessary that Marks and Spencer focuses it energy in this direction. One of the main issues that the company should not forget is consumer buying behaviour. Marks and spencer needs to look at this thoroughly to define where more marketing campaign is needed and also where customer value should be maintained with regard to their products (Jobber, 2003). Marketing Mix for Marks and Spencer For the Past five years, the Marks and Spencer clothing and fashion industry has engaged in to marketing and promotional strategy so as to gain in the ever competitive markets. One of the main areas of focus for the industry has been in communication needs so as to nurture confidence within the consumers and its marketing campaign. For example, the use of the tag line ‘Your Marks and Spencer’ increased its sales and was also able to put the company in to a positive competitive edge over other firms in the fashion industry (Vollmer, 2008). Marketing mix for Marks and Spencer is a collection of all tools that Marks and Spencer applies so as to meet the needs of its consumers and also increase sales. This also enables the company to inform its target customers of their different products. In the marketing mix will look at price, place, promotion and publicity. Marks and Spencer brands are always high priced that is criticised by the experts and demands much from the company in terms of quality. It means that most of its products are meant for the elite in the society. The company thus brings customers of other high priced brands towards all they need and align it with their products so as to meet their needs as well as the customer’s. Marks and spencer realises that price is a major factor for the elite in the society, if any product is offered at a high price, then it definitely needs to come from Marks and Spencer. In addition products must at all times comply with the criteria and fashion calls of its customers. This is the only way that the customer will get value for his money. Marks and Spencer also applies what is called Business to Business Marketing. In this sense, the company will market its products to other organisations, which are involved in the fashion industry instead of customers (Jones, 2009). This is very important for marks and Spencer since it is a designer oriented business. Some of the businesses would include cotton industry, which is produced and spinned by another business that which is then moved to marks and spencer as material that is then produced to clothing and distributed to fashion shops to sell. Business to Business marketing has been applied well with marks and Spencer and best thing about it is that it does not need a lot of financial support to operate (Arnold, 2008). International and Domestic Marketing for Marks and Spencer International marketing will involve marketing of Marks and Spencer outside the United Kingdom, while domestic marketing would mean marketing the Marks and Spencer products inside the United Kingdom. The business world is becoming one village where trade and management are made easy with the introduction of new technologies; this means that international marketing has taken the front step in the business world (Zappalà & Colin., 2006). Marks and spencer needs to embrace this concept by involving itself in social media marketing through various technological applications like cloud computing, twitter, Facebook and Instagram social media (Levinson et al., 2008). Conclusion This report analysed the marketing concepts for Marks and Spencer fashion retailer. In conclusion marketing and marketing concepts are very important parcel for any organization if it aims at succeeding. Marks and Spencer needs to engage itself in intensive marketing if it wants to find out preference of the consumer and what he or she intends to find from the organisation. Sources Armstrong, G. & Kotlel 2009, Marketing, an Introduction. New Jersey: Prentice Hal. 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