Marketing techniques and limitations
In my assignment I will be writing about Two large business agency, Marks and Spencer’s, and British Heart foundation where I will explain about the different marketing techniques and strategies they use to undertake to promote their products and services. How they Brand their company and about relationship marketing. Marks& Spencer’s
Marks and Spencer are a big franchise employing up to 78,000 employees worldwide but mostly in the UK. Marks and Spencer’s are one of UK's leading retailers with annual sales of £8 billion. They operate more than 450 stores in 30 countries, and serve tens of millions of customers every week. Marks and Spencer’s are only as strong as the communities in which they trade. They aim to please their customers and market in an easy and understandable manner. Marks and Spencer’s promote over thousands of products, from food to clothing, each product marketed in a different fashion. Marks and Spencer’s have used many strategies to survive the recession. Them being Growth, Branding, Survival and Relationship marketing. Survival Strategies
They started by cutting jobs and closing stores. In January 2009 Marks & Spencer’s were planning to close 25 small simply food stores one being Croydon Valley retail store. They cut 780 jobs and 450 head office jobs. Sales plummeted in the 13 weeks leading up to December 27 2008, they fell by 7.1 %.Total sales fell 3.4 % in the UK. Other strategies they used to regain money were Pension cuts, Even though Marks and Spencer’s overall sales fell by 1.2% there was an international sales increase and online retail increase. The retailer made pension cuts to save the company £175m - £200million per annum. Chairman of Marks and Spencer’s Vandavelde (2009) gave a key speech on the recovery plan. “The previous plan was like feeding a tree that was already overgrown and unhealthy. What it really needed was serious pruning back. It had unproductive limbs that were hampering its growth and a lot of its best characteristics were lost in the foliage.” This is regarding the cuts that were being made. A strategy used by M&S is SWOT. SWOT is a method for analysing a business, its resources, and its environment. Marks and Spencer’s used the SWOT method for their food products. SWOT helped them discover: What the business does better than the competition. What competitors do better than the business? Whether the business is making the most of the opportunities available. How a business should respond to changes in its external environment. By using this method and braking down each sector they were able to research if there products would sell, and their competitors such as big organisations like Tesco would affect their up sales.
Another strategy which Marks and Spencer’s use is known all the Boston Matrix. The main value for them using this is because it’s a useful tool for analysing product portfolio decisions. Constraints on survival strategies are the financial situation, resources and material. Cash flow is a common constraint to the sales systems. The financial constraint is usually internal. A resource constraint is also an internal limitation. Machinery, power and skills are some resources with constraints. Moving too slowly to get products to where they need to be is a internal constraint. Material is also a constrain due to where we are buying it from, are we paying for quality and receiving a product of quality or are we not spending enough to make sure our products are efficiently made? This is a external constraint. Relationship Marketing
Relationship marketing has continued to evolve and move forward as technology opens more communication channels. This includes tools for managing relationships with customers which goes beyond simple customer services. They identify six markets which are connected to relationship marketing. They are: internal markets, supplier markets, recruitment markets,...
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