Activity 1: Allocation of activities:
P1: Explain the key roles and responsibilities of the marketing function for Premier INN
Activity 1:
Activity 2: Definitions of marketing and the nature of marketing
"Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably." The Chartered Institute of Marketing (CIM)
Premier Inn is currently the world’s strongest hotel chain, according to a new ranking by Brand Finance.
Based on the analysis of marketing investment, equity, and the impact of these on business performance, Premier Inn was given a BSI (Brand Strength Index) of 88.7 out of 100, beating rivals such as Holiday Inn and Hilton.
The company uses a variety of marketing strategies to discover and fulfil its customer’s needs. The company give to the customers different services and product.
Mark and Spenser develop a plan for creating a long-term sustainable business value. The company's approach is customer driven marketing.
The company focus is on integrity, innovating, inspiring and being in-touch in everyday working life.
- Comply with the relevant laws, regulations, and self-regulatory codes
- Never mislead customers
- Be fair and transparent when labelling and promoting the products
- Take responsible and inclusive approach to casting models
- Promoting healthy eating and balanced diet
- Never take part in any unsolicited marketing activities
- Never knowingly advertise in media or on website extremist views
- Always put the customers first
- Effective supply chain management is also a key to security of supply, keeping price competitive as well as innovation and sustainability.
Activity 3: The development of the marketing concept, including current and future trends.
The concept of marketing; current and future trends.
The marketing concept is a belief that firms should analyze customers' needs and make rational decisions to beat a competitor in satisfying those needs. Many companies have adopted this idea.
The Production Concept.
This concept is the most fundamental marketing concept. It states that quality and cheap products are the most preferred by consumers. Many managers concentrate on getting high production efficiency, mass distribution and low costs. Customers tend to get interested in low prices and product availability, making producers manufacture quality goods efficiently and strive to cut production costs as output increases to increase supply.
The Product Concept.
It's believed that consumers always favor products with high quality, innovative features or performance. Managers concentrate on making high-quality products then improving them over time. It's assumed that customers admire well-made products. They can appraise quality. Managers should not applaud their success on a product for so long that they forget to improve its quality. An example is Samsung Galaxy S6 which got replaced by Samsung S7 series.
The Selling Concept.
Consumers and organizations, if left on their own, will apparently not purchase enough of the selling firm's goods. Serious promotion and sale must be carried out because users tend to show reluctance in buying the products and must be coerced. The business has a tendency rather sell what they have than manufacture desired products. The business must grasp appropriate selling tools and tactics.
The Marketing Concept.
This philosophy is against all those previous ones. It stands on a principle that the company has to beat their competitors in producing quality products, a way of communicating to customers, availability of products and their prices. Here, the consumer is king. This concept has four pillars namely; client needs, target market, profitability and integrated marketing.
The Societal Marketing Concept.
The firm determines the wants, needs, and interests of target markets then deliver the preferred satisfactions more efficiently and more than their competitors. Production is also done with the customers' well-being in mind.
Trends in Marketing
Relationship Marketing
This pattern was first developed via direct response marketing campaigns. It emphasizes on customer satisfaction and retention rather than the number of sales made.
This strategy is different from others since communication is extended beyond promotional messages. This marketing relates to a short-term arrangement where the two transacting parties have an interest in giving a more pleasant exchange. A connection is made after the transaction, and the customer feels appreciated, and he gets value for his money. The good relationship brings him back for more products in the future. This aspect has widely grown with the advancement of technology. Complaints from customers are also accepted via direct communication and later corrected.
Industrial Marketing
This marketing trend is where a business sells its products to other companies to resell them later, use them to produce other complex goods or improve their quality them reselling them.
The technological revolution is the primary cause of these marketing trends.
Another reason is the entrepreneurial revolution Staying in the market sees many organizations going back to the drawing boards and reinventing themselves. Flexibility, adaptability, speed, innovations and aggressiveness help companies to remain in the game. New wants are explored to ensure that competitors are kept at bay.
The third revolution is present in marketing. Alliances and mergers are very evident in the contemporary industrial setup. Companies are focusing majorly on transactions, inventing new ideas, skills, and shying away from mass markets.
Societal Marketing
The firm's duty is to identify the wants, needs, and interests of a target market and then deliver satisfaction more efficiently and more than others with customers' well-being in mind. It's related to Corporate Social Responsibility because customers' and the public's welfare is essential. Achievement of a company's goals should include quality products which later brings both short-term and long-term benefits.
The marketing concept is a belief that firms should analyze customers' needs and make rational decisions to beat a competitor in satisfying those needs. Many companies have adopted this idea.
The Production Concept.
This concept is the most fundamental marketing concept. It states that quality and cheap products are the most preferred by consumers. Many managers concentrate on getting high production efficiency, mass distribution and low costs. Customers tend to get interested in low prices and product availability, making producers manufacture quality goods efficiently and strive to cut production costs as output increases to increase supply.
The Product Concept.
It's believed that consumers always favor products with high quality, innovative features or performance. Managers concentrate on making high-quality products then improving them over time. It's assumed that customers admire well-made products. They can appraise quality. Managers should not applaud their success on a product for so long that they forget to improve its quality. An example is Samsung Galaxy S6 which got replaced by Samsung S7 series.
The Selling Concept.
Consumers and organizations, if left on their own, will apparently not purchase enough of the selling firm's goods. Serious promotion and sale must be carried out because users tend to show reluctance in buying the products and must be coerced. The business has a tendency rather sell what they have than manufacture desired products. The business must grasp appropriate selling tools and tactics.
The Marketing Concept.
This philosophy is against all those previous ones. It stands on a principle that the company has to beat their competitors in producing quality products, a way of communicating to customers, availability of products and their prices. Here, the consumer is king. This concept has four pillars namely; client needs, target market, profitability and integrated marketing.
The Societal Marketing Concept.
The firm determines the wants, needs, and interests of target markets then deliver the preferred satisfactions more efficiently and more than their competitors. Production is also done with the customers' well-being in mind.
Trends in Marketing
Relationship Marketing
This pattern was first developed via direct response marketing campaigns. It emphasizes on customer satisfaction and retention rather than the number of sales made.
This strategy is different from others since communication is extended beyond promotional messages. This marketing relates to a short-term arrangement where the two transacting parties have an interest in giving a more pleasant exchange. A connection is made after the transaction, and the customer feels appreciated, and he gets value for his money. The good relationship brings him back for more products in the future. This aspect has widely grown with the advancement of technology. Complaints from customers are also accepted via direct communication and later corrected.
Industrial Marketing
This marketing trend is where a business sells its products to other companies to resell them later, use them to produce other complex goods or improve their quality them reselling them.
The technological revolution is the primary cause of these marketing trends.
Another reason is the entrepreneurial revolution Staying in the market sees many organizations going back to the drawing boards and reinventing themselves. Flexibility, adaptability, speed, innovations and aggressiveness help companies to remain in the game. New wants are explored to ensure that competitors are kept at bay.
Societal Marketing
The firm's duty is to identify the wants, needs, and interests of a target market and then deliver satisfaction more efficiently and more than others with customers' well-being in mind. It's related to Corporate Social Responsibility because customers' and the public's welfare is essential. Achievement of a company's goals should include quality products which later brings both short-term and long-term benefits.
Activity 4 : How the external environment influences and impacts upon marketing activity.(Puscasu Alexandru, Puscasu Giorgiana, Onel Cosmina, Oana Togoe-Karpatin)
Internal Influences on Marketing Objectives
Human Resources
In the last future M&S innovated few HR initiative that involves art staff training and also hired their staff in quality work. BPM (Business Partner Model) has been developed by David Ulrich to organize their CIPD (Changing business environment)
HR involves 4 main aspects:
1.Change Agent
2.Employee champion
3.Administrative partner
4.Strategic partner
The model embrace other extra three elements which are:
a) Shared Services,
b) Centres of Excellence
c) Strategic Business Partner.
In the recent past The United Kingdom retail industry has been confronted with six challenges which are:
1) a squeeze in incomes;
2) the shift to online shopping;
3) changing tastes;
4) rising overheads;
5) high debt;
6) simply too many shops.
It appears that Marks&Spencer is struggling now as a consequence of the same challenge.
Operational issues
For the reason of inception as a small market stall in Leeds in 1884, Marks &Spencer has grown up, becoming representative for British clothing retail firm. By contrast the company has declared the closure of 14 stores in the last period of time, preceded by plans to close 100 stores in The United Kingdom by 2022.
EXTERNAL INFLUENCES ON MARKETING OBJECTIVES
Economic environment
The external environment scanning is concerned with the forces and factors that impact upon M&S. However, analysing those forces and factors will assist M&S in identifying the change in the environment, is often referred to as the macro-environment, planning in how to cope with such a change, and being ahead of the competitors in the adaptation to the new environment and the response to the market demands. PESTEL framework and Porters Five Forces model are the techniques that author uses to identify and analyse the problems that M&S experienced in the mid to late 90’s. Then the author carries out an internal analysis of the organisation’s resources and competences. Resource audit, value chain and SWOT analysis are the techniques to examine the activity of the M&S in order to reveal what was the basis of their competitive advantage. Furthermore, the author uses the cultural web analysis in order to identify what were the main cultural features of M&S until the mid 90’s. And discusses were the resistance to cultural change originated and what aspects need to be changed. Finally the author identifies and evaluates the strategic choices available to M&S by using BCG matrix, Strategy Clock and Ansoff model techniques. A brief conclusion and recommendations for the strategy of M&S for the next 3 years will follow.
EXTERNAL MACRO-ENVIRONMENT
PESTEL Analysis
Fahey and Narayanan (1986) argue “that macro-environmental conditions set the fundamental context in which industries operate” (Fahey and Narayanan, 1986). The Political, Economic, Social, Technological, Environmental, Legal (PESTEL) framework shall be used in order to identify the changes in the external environment that caused decline in the M&S performance in the mid to late 1990’s.
Political
European Committee decision to permit free flow of trade among themselves and other countries under foreign trade regulations makes companies to import their products over time easier than before. M&S competitors took advantage of its higher cost structure and bit off some its market share.
Economic
M&S competitors are specialised in niche markets and consumers’ focus which make them to provide a much better consumers satisfaction. They prefer to import their products from abroad for cost savings, this fact puts M&S in a cost disadvantage for a perceived “higher quality”.
Social
Consumers’ concept in the marketplace has changed; they do not sense British products as of high quality. There is a shift in demand for more fashionable clothing. Moreover the price sensitivity of the majority of the consumers has increased leaving M&S in a less competitive position.
Legal
Offering customers high standards of quality product are essential to meet their requirements. M&S are known for delivering world class quality products.
Social & political change
Changes to legislation may create or prevent marketing opportunities. Change in the structure and attitudes of society also have major implications for many markets.
Activity 5: The structure and operations of marketing departments.(Puscasu Alexandru, Puscasu Giorgiana, Onel Cosmina, Oana Togoe-Karpatin)
Organizational structure of Marks & Spencer
M&S follows a flat organizational structure; this type of organizational structure has limited levels of management between administrative level and front-line employees. This structure is followed in organization to encourage employees in more decision making process. This structure is followed basically to decrease bureaucracy and make employees more skilled by authorizing them to make decisions. And due to less management levels communication between upper managers and base line employees become easy which allows rapid change and problem solution (Strinfellow, 2010).
Flat organizational structure has pyramid shape, but unlike traditional one it’s broader and flatter this is because there are fewer levels of management between top and bottom of pyramid it also may have different departments with head and manager leading each unit with the executive management at top of pyramid.
Marks & Spencer have a flat organizational structure as a result of reducing the layer of authority through delayering which increased the individual responsibility of employees and their departments. Due to this employees have to take quick decisions from time to time with the preparation to explain and justify their decisions and this increases there accountability without increasing the organization’s expenditure.
Significance and benefit of flatter organizational structure
In large organizations, traditional organizational structure is basically used but due to many levels of management between top-level and baseline staff, decision making have to go through these process, leaving front-line staffs to answer the delay to customers which decrease productivity. While the flat organizational structure has less middle management, allows the whole organization work with ease and less resistance. This increase the productivity of organization as well as using a flat structure can decrease the budget by cutting the middles men cost and decrease the communication barriers (Borkar, 2010). Organization that analyse function of middle managers can allocate necessary tasks to other members by giving lower level staffs more responsibility or assigning some duties to upper management. Beside these there are lots of activities which are actually a burden on organization can be eliminated by eliminating middle managers.
Marks & Spencer gives bigger focus to Instagram in new marketing plan
Marks & Spencer has joined firms that have positioned themselves to benefit from the social blast on Instagram. The firm focuses more on digital channels including Instagram, Google Advertising, and VOD. The new products campaigns for M&S Clothing & Home across in-store, mobile, and online. The team responsible for Clothing & Home Marketing has started a “Digital First” campaign that shares and celebrates with consumers the “Must-Haves” wardrobe essentials for the next season across Beauty, Home, Kidswear, Menswear, and Womenswear.
The “Must-Haves” will start with a high impact campaign across the various channels including digital out of a home and national press. Since the restructuring of the M&S’s marketing function, this is the initial major Clothing & Home campaign and marks the beginning of a new conversation with consumers about the new Clothing & Home products offered by M&S. The new marketing strategy not only employs digital channels to win more customers but it is more agile, inspirational, and relevant for the season. M&S is employing digital channels to assist realise the objectives of the Clothing & Home business of achieving at least 33% of the online sales and growing the customer share for busy fathers and mothers.
The TV promotion segment will exclusively happen through clips on-demand services to help the firm target more customers. The firm has also started to use Google Inventory Advertising to make it easier for customers to perform local searches. M&S is among the first lot of retailers who have successfully used the Shoppable Instagram. The team will also continue to advance the channel through a high impact campaign. The M&S’ social blast will involve utilising the highly popular channel to point out the “Must-Have “products including the checked blazer and the satin blouse.
The marketing campaign will involve using Shoppable Facebook with clear links and inspirational videos for customers to buy. Nathan Ansell, one of the directors at M&S observes that the firm has positioned itself to employ advanced methods of engaging with the customers and the “Must-Haves” is an outcome of customer insights and cooperation across creative thinking and the core business. The marketing campaign targets a variety of high impact digital channels and remains one of the leading digital campaigns as per now. “Must-Haves” focuses on the product and is exceptionally designed to represent M&S as an affordable and stylish option for seasonal and superior wardrobe essentials.
The “Must-Haves” marketing campaigns will focus on all elements related to the M&S Clothing & Home offerings and will be supported by a vast range of reforms during this festive season including enhanced optimisation for mobile digital product pages to make it clearer and simple for the users to navigate the store. The “Must-Haves” social blast will also include Must-Have photograph frame on Facebook and the Instagram TV. M&S has also promised additional campaigns in the coming days.
Conclusion
A flat organizational structure is good for small organizations, because in there it is possible to decentralize some decision-making while corporate integrity is maintained, though it is hard for a big business organization because it can result in loss of control of upper manager in the functioning of business. Flat organizational structure can be used by large companies only by setting up in different divisions but corporate control and final decision at executive level is important at the end. M&S followed the flat organizational structure so as to cut the overall cost of organization and speed up the working. They achieve this but still there are some block holes like increase in bosses makes lower level to report 2 or 3 different bosses this can create confusion and communication problem. Overall M&S followed a good organizational structure but because it is vast organization so they have to make and follow more suitable organizational structure for better future of company.
Activity 6: Overview of marketing processes that include analysis, strategic planning and the marketing mix.
Marks and spencer is come to existence in 1894 by the partnership of Michael with Tom Spencer. They employ over 65000 people, running 450 stores and also flourishing international business. In 2007 Marks & Spencer (M&S) was the UK’s largest clothing retailer with a market share of 11.1%.
M&S is a unique retailer with a great heritage of brand values and customers who want to see it succeed again. We operate Food and Clothing & Home and other retail businesses using the M&S own-brand focused in delivering great value for money
“Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations”.
Plan A is our way to help build a sustainable future by being a business that enables our customers to have a positive impact on wellbeing, communities and the planet through all that we do.
PEST Analysis
Pest analysis is concerned with the environmental influences on a business. The acronym stands for the political, economic, social and technological issues that could affect the strategic development of a business.
Political
European Committee decision to permit free flow of trade among themselves and other countries under foreign trade regulations makes companies to import their products over time easier than before. M&S competitors took advantage of its higher cost structure and bit off some its market share.
Economic
M&S competitors are specialised in niche markets and consumers’ focus which make them to provide a much better consumers satisfaction. They prefer to import their products from abroad for cost savings, this fact puts M&S in a cost disadvantage for a perceived “higher quality”.
Social
Consumers’ concept in the marketplace has changed; they do not sense British products as of high quality. There is a shift in demand for more fashionable clothing. Moreover the price sensitivity of the majority of the consumers has increased leaving M&S in a less competitive position.
Technological
Media played major role of communicating new fashions to the customers. This knowledge can be communicated to the designers and producers, so a manufacturer in Thailand or China can be aware of the current fashion trends in UK. Technology theses days are even more quickly copied than before. Moreover due to the transportation speed a shipment of stock from a country in far Asia will only take a few days instead of a preview time period of over a month.
Activity 7: The different roles of marketing within both a B2C and B2B contex
RELATIONSHIP DRIVEN
M&S is a business that seeks to do things in a responsible way. Our values – acting with integrity, innovating, inspiring and being in-touch – are part of our everyday working life. We therefore always take a responsible approach and apply the highest standards when it comes to selling and marketing our products. Our advertising and communications are designed to inspire and inform our customers and our commitment is to always do this in a way that is fair, considerate, informative, inclusive and transparent. We have a daily dialogue with our customers and value their input and feedback. Every day our marketing team ensures that our customers are at the heart of everything we do.Marks & Spencer (M&S) is restructuring its marketing team to take a “specialist rather than generalist” approach to ensure it has “absolute expertise” in everything it does and is a business fit for a future online.
SMALL FOCUSED TARGET MARKET
BRAND IDENTITY CREATED ON PERSONAL RELATIONSHIP
Marks and Spencer has positioned itself as a premium brand in the supermarket industry. As customers are willing to pay a premium price for the M&S brand so they have set their prices higher because of this premium brand perception in the minds of customers.
M&S has also segmented the market demographically so that the customers of different age groups ,social class, ethnic groups and different gender can buy the company’s products. In order to do this company has MADE ITS BRANDS ,STORES,FOOD AND CLOTHIMG BY KEEPING IN MIND different market segments.
Activity 8: Marketing as a business function.
Marks and Spencer - Business To Consumer - Information
Activity 9: The different roles of business units and the interrelationships between these functional units and marketing
Customer support
A customer support is a range of customer services to assist customers in making cost effective and correct use of a product. It includes assistance in planning, installation, training, trouble shooting, maintenance, upgrading, and disposal of a product. These services even may be done at customer's side where he/she uses the product or service. In this case it is called "at home customer services" or "at home customer support."
Regarding technology, products such as mobile phones, televisions, computers, software products or other electronic or mechanical goods, it is termed technical support.
See hyperlink Marks and Spencer Customer Support.
EXCHANGE FUNCTION
M&S gives customers with no receipt an exchange or a credit note to the value of the current selling price, provided it is returned within 35 days. ... On this occasion M&S has apologised (even though, strictly speaking, it didn't have to) and has also generously sent you a £20 gift card.
See hyperlink exchange functions M&S
M&S gives customers with no receipt an exchange or a credit note to the value of the current selling price, provided it is returned within 35 days. ... On this occasion M&S has apologised (even though, strictly speaking, it didn't have to) and has also generously sent you a £20 gift card.
See hyperlink exchange functions M&S
