The Marketing Concept & Process

Marks and Spencer Case Study

ContentsAssignment 1 part A.................................................................................................................3

Question 1................................................................................................................................3

Question 2................................................................................................................................4

Question 3................................................................................................................................5

Question 3.1 Similarities and differences among these elements......................................11

Question 4..............................................................................................................................11

Part B Marks and Spencer Case Study....................................................................................13

Question 1..............................................................................................................................13

Question 2..............................................................................................................................13

Question 3..............................................................................................................................14

Question 4..............................................................................................................................15

Question 5..............................................................................................................................17

Bibliography........................................................................................................................... 19

Websites.................................................................................................................................19

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Assignment 1 part A

Question 1Compare at least three latest definitions of marketing with examples.

Definition 1The Charted Institute of Marketing (CIM) defines marketing as: “The management process which identifies anticipates and satisfies customer requirements efficiently and profitably.”This definition of Marketing explains the importance of the role of the manager’s responsibility. It appreciates the needs for anticipation using forecasting to understand the future requirements and changes that may occur. This definition also incorporates the importance of efficiency which can be related to non-profit organizations where efficiency is greater than profit. The definition expresses the essential practices of marketing concepts in order to achieve profits.An organization that conveys such a definition as an example could be Shell Plc. They globally distribute petroleum to meet consumer demands. Over the years they have listen to customers regarding safety issues and responded through continuous improvement from extraction to the end user. Shell has set up many institutions and works closely with charitable organizations in many third world countries so that it can assist with local employment, whilst sustaining and increasing profits. (www.shell.com)

Definition 2The American Marketing Association (AMA) defines marketing as:"The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."This definition combines a magnitude of elements that are keys to the success of an organisation. It starts at the core identification of customer needs through research and innovation. It adopts the marketing approach as to how something is achieved, recognising benefits to both customer and supplier. Applying and managing the marketing mix together with the vision and goals of the company now and in the future.It can be suggested that a good example of an organisation that fits this definition would be Micro-soft with its breakthrough in computer technology, since the launch of Windows not has it only benefited the business industry sector, government, educational institutes, but

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even the individual private user as well as charity organisations. Microsoft changed the global world of business and communication.

Definition 3“Marketing is concerned with the matching of an organisation’s capabilities with consumers’ wants.” (Business Essentials, Marketing, BBP Learning Media, pg, 19)

This definition recognises that Marketing is the central focus for the overall business process. It aims to understand the wants of the consumer/industry and matches this with the capabilities and resources of the organisation. This assists an organisation to identify whether or not it has the capability to produce such goods for both the benefit of the consumer and business.As an example of this definition for instance, a manufacturer of fishing equipment would not randomly market its product to the entire U.S. population. Instead, it would likely conduct market research using such tools as demo-graphic reports, market surveys, or focus groups, it would perhaps target males between the ages of 20 to 40, through market segmentation, further broken down by income, location, or other factors.

The above three definitions have similarities in the explanation of Marketing. All three definitions recognise the needs to concentrate on the consumer/customer and understand their needs and wants. Matching this with organisational resources and its ability to produce and deliver at a profit, providing mutual benefit.

Question 2Examine the salient features of a market orientated organization and highlight the importance of organizational vision.Market orientation is the implementation of the marketing concept. Being marketing orientated is more than just being customer-led. It requires the full support of the organization to be fully implemented in the long term and may need a complete change in an organization’s culture. Market orientation needs strategic commitment from the entire organization from the top down and expressed through its vision and mission statements. Operations are directed towards their customers with a strong and decisive lead from the top management and a continuous, strategic commitment.This stresses the importance that the company’s vision sets the entire standard and reveals the vision as a picture of the organization's desired future and what it ultimately hopes to accomplish as a result of its efforts. The action of creating a vision forces the entire company to act in a market orientated culture.

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While mission statements vary from organization to organization they all share similar components. Most statements include descriptions of the organization's target market, the geographic domain, their concern for survival, growth and profitability, the company philosophy, and the organization's desired public image. A good example of a company’s vision which emanates market orientation is Toyota car manufacturer, their vision and philosophy is:

“Since its founding, our company has been aiming to enrich society through car making. Our goal is to be a "good corporate citizen," constantly winning the trust and respect of the international community. Continuing in the 21st century, we aim for stable long-term growth, while striving for harmony with people, society and the environment.” (http://www.toyota.co.jp/en/vision/message/)

This shows that Toyota has started from the very top aiming and understanding its market, focuses on customer needs, and uses methods of integrated marketing and will therefore ultimately gain profit through customer satisfaction.Unlike Henry Ford the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. That is, mass production of inexpensive goods coupled with high levels of output. Ford had a global vision, with consumerism as the key to peace. His intense commitment to systematically lowering costs led to his famous quote “You can have any colour as long as it black.” (http://www.articlesbase.com/marketing-articles/you-can-have-any-color-as-long-as-it-is-black-370884.html)The difference here is that Henry Ford’s approach was not market orientated but Sales Orientated, he starting point was the factory/machinery, and focused on existing products (the car). How was his marketing concepts achieved? By means of selling and promotion and the end results are profits gained through volume sales.

Question 3Explain at least three elements of marketing with the help of examples. Also try to explore the similarities and differences among these elements.

The important elements of marketing contained as follows:

1. Marketing focuses on the satisfaction of customer needs, wants and requirements.2. The philosophy of marketing needs to be owned by everyone from within the

organization.3. Future needs have to be identified and anticipated, through market-led activities. So

the organization may offer better products and services that meet customer expectations and satisfaction.

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4. There is normally a focus upon profitability, especially in the corporate sector. However, as public sector organizations and non-profit organizations adopt the concept of marketing.

5. More recent marketing concepts recognize the influence of marketing upon society.

The marketing elements cover a much wider scope; the above elements are the most important. And three are discussed below:

The following three elements are explained:

1. Marketing focuses on the satisfaction of customer needs, wants and requirements

This element means that the organisation marketing concept element is customer-orientated. It adopts the understanding of Maslow’s hierarchy of needs and aims to satisfy those 5 layers of needs and beyond. An organisation that understands and commits itself to satisfying its customer’s needs, wants and requirements is known as a market orientated business hence customer orientated. The heart of a market orientation is its customer focus. To create superior value for buyers continuously requires that a seller understand a buyer's entire value chain, not only as it is today but also as it evolves over time. Buyer value can be created at any point in the chain by making the buyer either more effective in its markets or more efficient in its operations. Such organisations will ensure that the entire organisation is set up with the right structures and processes, such as the distribution system and channel, its information systems and the flow of influence that is constantly monitoring its ‘PESTLE Factors.’ The organisation must also adopt Kenichi Ohmae’s (1993), the “Three C’s Strategic Triangle,” when formulating strategic plans for the business; that is the company itself, customers and competition. This assists the marketing planners to identify and match the organisations strengths to the customers needs more effectively than the competition. IKEA is an example of a customer orientated organisation. The business of IKEA identified the need especially for its European customers/segment for reasonable priced furniture that was space saving, modern, easy to collect and excellent customer services. They aimed to keep prices low buy reducing labour power, it meant that the customer would be responsible for self assembly. This was a well thought out marketing strategy since the typical European household’s culture is proud to do DIY (Do It Yourself). From the customer point of view, they were able to buy low cost furniture, however they had to assemble and collect the flat-packed furniture from stores. IKEA was able to reduce costs, as this costly part of the value chain was carried out by the customer. IKEA kept to standardized products and operations worldwide. “This standardized strategy of internationalizing minimized costs. Further more is can be noted that IKEA has met customer satisfaction and requirement parts of this marketing element as it spread through the Middle-East it recognised the importance of changing its strategies to meet the localised culture.” (http://english.alrroya.com/content/ikea-upbeat-about-mideast-retail-market).

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For Example the IKEA’s in the UAE whilst still maintaining fairly low priced furniture; it offers the service of assembly. It was able to adapt and identify those needs and allocate its resources to meet those requirements of the local market. In the Gulf countries it is not cultural or common for the average household to undertake self-assembly (DIY) practices. In order for IKEA not to lose out on this market sector they responded to their customer requirements.

2. The philosophy of marketing needs to be owned by everyone from within the organization.

This element is part of the marketing process in strategy building and planning. This means that the market orientated organisation has its customers and market orientation as the core and the rest of the organisations divisions are structured around this. The marketing concept and marketing is central to the board-level for its strategic decisions. Marketing here is at the very high level and not in the sense of price cuts or promotions, but marketing in the sense of making decisions, devising corporate long-term, medium term strategies, analysing growth, trends, competitors, organisational resources in finance and human power. The philosophy of marketing starts at corporate level and is dispersed throughout the organisation. For example; see diagram:

This should be consistent through all divisions, departments and SBU’s.

Corporate Level (Board) & Top ManagementAdopt Philosophy of the Marketing Concept, elements, processes and strategies

Senior Management V.P’s, Directors etc.

Middle Management

Lower Management and Supervisors

Marketing Concept dispersed throughout the organisation

Finance & BudgetsTop Management

Research Development

Human Resources

Manufacturing Logistics

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Developing the organisational structure and process based on the Marketing Philosophy element, that marketing needs to be owned by everyone will also make it clear that the company is able to match its strengths towards the customer’s needs, wants, and requirements more efficiently and effectively than competitors. This approach will make an organisation a leader within the business market world.

An Example of such an organisation that illustrates this element is Toyota car manufacturer. The corporation believes that everybody is responsible for the marketing concept, process, elements and functions. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management). Business critics argue “that this is because the company has the right mix of products for the markets that it serves. This is an example of a much focused segmentation, targeting and positioning in a number of countries.” (http://www2.toyota.co.jp/en/vision/traditions/nov_dec_02.html)In addition to Toyota’s Corporate Marketing philosophy of integrating the whole organisation to acquire the philosophy it also sets up a strong focused marketing department and sub-businesses-units to enforce this practice: (see below) One of Toyota’s Marketing Divisions. (http://www2.toyota.co.jp/en/vision/traditions/mar_sep2010.html)

Services AccountingI.T

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It can be noted here that not only does Toyota demonstrate the marketing philosophy throughout the organisation, but has also taken it a step further, with the inclusion of ‘Quality’ it has been elevated into the philosophy that guides its every activity within the businesses, known as TQM (Total Quality Management).

3. Future needs have to be identified and anticipated, through market-led activities. So the organization may offer better products and services that meet customer expectations and satisfaction.

This element involves the Marketing management to analyse, plan, implement and control the marketing plan and the relationship with other departments. Under this approach organisations chase their customers at all costs. The goal is to find what customers want and give it to them by matching the strengths of the organisation and its products and/or services. It is to translate the philosophy of marketing into reality, to achieve market orientation. Market orientation involves market-led activities toward developing an understanding of customer’s current and future needs.Components and context of market orientation are proposed:

Customer orientation: understanding costumers well enough, create superior value for them

Competitor orientation: awareness of the short- and long term competitors Inter-functional co-ordination: using all resources to create value for target

customers Organisational culture: linking employee and managerial behaviour to customer

satisfaction

long-term profit focus: as the overriding business objectiveA Market Orientated organisation with Market-Led activities from Kohli and Jaworski 1990, (Advanced Level Business Studies, Ian Marcouse, 3rd Edition) shows a diagram below claiming that it is essential for an organisation to develop the marketing concept into the whole organisations framework:

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Market-led activities are such a vast area and involve many different stages explained below:

Identifying who are the customers and why do they buy the service or product Market research gathering quantitative and qualitative data analysis this should be

supported by the Information Systems Integrate information gathered into marketing information system, computerised

models and decision support systems Strategic marketing plan of target markets Forecasting in future markets, sales, trends, changes etc… Setting and applying the marketing mix Implementation of all market-led activities and continuous monitoring and

supporting Allocating the resources and pulling together the human resources Control and co-ordinating marketing activities to ensure that efficiency and

effectiveness is applied throughout. Other market-led activities involves the monitoring and assessing of competitors on

a continuous basis Constant Environmental scanning and understanding as PESTEL factors change

An example of an organisation that demonstrates market-led activities is Apple, especially in the innovative launch of the iPods. “IPods have won several awards ranging from engineering excellence, to most innovative audio product, to fourth best computer product of 2006. Besides earning a reputation as a respected entertainment device, the iPod has also been accepted as business devices. Government departments, major institutions and international organisations have turned to the iPod line as a delivery mechanism for business communication and training, such as the Royal and Western Infirmaries in Glasgow, Scotland, where iPods are used to train new staff. IPods have also gained popularity for use in education. Apple offers more information on educational uses for iPods on their website, including a collection of lesson plans. There has also been academic research done in this area in nursing education and more general K-16 education. Duke University provided iPods to all incoming freshmen in the fall of 2004, and the iPod program

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continues today with modifications.” (http://en.wikipedia.org/wiki/IPod) It can be argued that no other product like the IPod is available in today’s market. Steve Jobs has clearly illustrated market-led activities like no other organisation.

Question 3.1 Similarities and differences among these elements

The major similarity among the above three elements discussed above are that they all focus on the customers. The customer is the core and all three elements adopt the marketing concept of customer orientation, the approach used by all three is that it starts and ends with the customer. They concentrate on wants, needs, and satisfaction, identification and analysis first and matching resources are also the main similarities.

The main difference between these elements discussed above is that they are broken down into steps; the first element discussed is the starting point and the general over all philosophy of marketing concepts that any organisation should believe in and practice. This is different from the second element discussed as the second element is describing how the marketing concept should be applied throughout the organisation, it’s putting the theory and philosophy of marketing into practical organisational set ups. This element emphasises the importance of arranging the organisation so that its processes and resources are geared and centred on the customer orientation concept. Without the correct framework a market-orientated organisation will not exist. The difference of the third element discussed is that is about continuous assessment, innovation, feedback, control and monitoring. All three elements are part but not all of the marketing concept elements. All elements must be incorporated, set-up, practiced, monitored and improved to the changing needs and demands of customers.

Question 4Comment on the importance of benefits and costs of a marketing approach.There are costs and many benefits of a marketing approach. Previously organisations practiced sales orientated marketing. As global economy changes and with the reduction of monopolies (especially in the Western business world), businesses have geared toward a more customer/consumer orientated approach of marketing. Main Benefits of Customer orientated marketing approach:

It creates TQM (Total Quality Management), it provides customers with added-value, generating customer satisfaction

Businesses have closer contact with their supplies and can therefore provide the service/product that customers really want and need. The business should be flexible to changes in demand patterns and can respond quickly

Customers/Consumers are centre to the organisation, giving them priority and allowing customers to voice feedback

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This approach can be applied to both the individual customer and industrial customer

This approach recognises that ‘customers’ are the reasons why businesses exist More choice and freedom of goods are available to customers due to more

competition using this approach Another main benefit is that this philosophy and practice builds up customer-

relationships which can create cross-selling opportunities and expansion; especially for those key customers, to build up customer loyalty

This approach will also assist an organisation through to the future as it has already established its reputation and loyalty, for example, should Heinz now wish to launch a new product such as butter or margarine, chances are they will succeed because the organisation has been using this approach and has established market confidence and trust.

Longer term benefits include economies of scaleCosts of Customer orientated marketing approach:

This approach is difficult to apply to the service sector but plausible. It’s harder to identify where value can be added. (Although some businesses in the service industry try to use this approach such as Emirates Airlines)

The financial costs of applying this approach is very high and will acquire large sums of investment even before the business starts to benefit from profits

Costly and time consuming market research is involved for this approach to succeed Constant internal changes are needed to mirror the changes of the customers and its

markets Organisations also need the correct resources such as human resources and the

experts and experience of its employees are also essential elements for the success and application of a customer-orientated approach. To conduct research, forecast, innovation etc, all require highly professional employees. To sustain and search for such professions is a long process and takes years to establish

For small businesses this approach is not necessarily going to help the business kick-start, initially a new or small business needs to benefit from profit as soon as possible as it has overheads and costs. This approach is more beneficial for the large mature organisation.

There is also a tendency to over focus on key customers using this approach which means the businesses may loose on other opportunities

This approach is favourable among businesses that operate under highly competitive markets, for monopolistic organisations they approach would not necessarily be welcomed by the business. Since they are operating at surplus profits and are more than likely protected by legislation such an example would be Etisalat Telecom in the UAE.

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Part B Marks and Spencer Case Study

Question 1Which competitors enlarged their Premium Retailer brand offerings?The two main retailers which enlarged their premium brand offerings were Tesco’s Supermarket in their ‘Finest’ ranges of food items; and Sainsbury’s Supermarket in the ‘Taste the difference’ ranges, both supermarkets produced higher quality products, packaging and price to match Marks and Spencer’s quality food items.

Question 2What is the importance of Tagline and how it gives competitive advantage to a brand?A brand name and image is a work in progress, it requires constant care and protection. Brand perceptions can change and either strengthen or weaken; a customer is continuously weighing, measuring, comparing and testing against other products and services available on the market. Only a meaningful brand promise that differentiates one business from the rest of the pack can truly strengthen the company's market position.One of the easiest and most cost-effective ways to communicate a new or revised brand message is by creating a tagline. A memorable tagline can be used to articulate the company's vision or unique position, convey essential qualities of the brand character, emphasize a compelling customer benefit, and align the brand message with an intended target market. When used in conjunction with a new marketing, advertising, or direct response campaign, a tagline can extend the brand message; enhance its perceived value and relevance. Marks and Spencer’s tagline with the voice of actress Dervia Kirwan announcing “This is not just food this is Marks and Spencer’s food” was a success increasing sales by 288%. It has a psychological impact and consumers will associate the tagline with the brand. For the case of Marks and Spencer the tagline is implying that there is something extra, different, and special with their food than any other on the market. The idea is so consumers when thinking about food items will automatically think of yours, thus giving you competitive advantage over the competing supermarkets and their premium range.

Question 3Reference to the Case Study what is the meaning of the term Integrated Campaign and how did Marks and Spencer achieve it?

Integrated Marketing is:

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Synergistic approach to achieving the objectives of a marketing campaign, through a well coordinated use of different promotional methods. As defined by the American Association of Advertising Agencies, IMC " ... recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact." http://www.businessdictionary.com/definition/integrated-marketing-communications-IMC.html#ixzz13aQ694sIFurthermore integrated marketing can be achieved provided the company also adapts its structures, processes, resources, culture and human capabilities. The company must set up an appropriate framework internally before proceeding externally. All departments of an organisation must work together to serve the customer’s interest. For Marks and Spencer’s case they would also need to consider the following:

Re-engineering Out-sourcing Bench-marking Improve supplier/customer relations Merging/takeover or employing Globalising Flattening structure Focusing/Empowering Designing a new marketing plan Conducting in-depth research Monitor and assess the macro-factors i.e. PESTLE factors (Political, Economic, Social,

Technological, Legal and Environmental)Marks and Spencer managed to achieve an Integrated Marketing Campaign with reference to the ‘Case Study Abstract:’“The campaign was well integrated with all TV, print, web and radio advertising with the same message in store and within direct mail promotions. Throughout the long running campaign in store price promotions were also used to encourage trial of the food items featured within the adverts running at that time. They later combined the food promotion with highly successful advertisements featuring the model Twiggy for clothing.”

Marks and Spencer strategy was trying to follow the strategy of differentiation. There integrated advertising campaigns used a mixture of sales and advertising with simultaneously combining what was happening in store to match their external campaigns to reinforce confidence and build trust with customers. This encourages customers to practice a certain type of buying behaviour based on reinforcement learning, reinforcement learning theory is based on the principle of trial and error learning, when people are faced with many product options they learn from their previous errors about who is the best retailer and in this case it is more likely that M&S is the best retailer because one of M&S

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core principles is the ‘Quality and value for money’ and they transmitted this through their integrated marketing campaign and delivered and satisfied their customers with the delivery of what was being advertised to be true. Furthermore Marks and Spencer has remarkable customer services and also introduced their own financial services, credit and store cards to customers. This extends the campaign in the sense that now the customers could purchase goods without the initial concern of worrying about how they are going to pay for the items. Using this method of payment M&S collected information about the purchases of its customers and rewarded them with points, which converted into vouchers.Sponsoring celebrities by M&S is crucial in pulling customers and setting fashion examples to M&S clothes. This is because the audience think that fashion adds an extra value not the quality so when young males and females see a celebrity wearing clothes from M&S, they will give an extra value to the products and the price could be pushed higher.Comparing M&S results clearly indicates that the integrated marketing campaign was highly successful, as the takeover and/or acquisition were avoided and their sales increased by 288% just from the food commercials.

Question 4What is Ethical Positioning and how Marks and Spencer used it in their Campaign?

A Definition of Business Ethics: “Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization's culture sets standards for determining the difference between good and bad decision making and behaviour. In the most basic terms, a definition for business ethics are to know the difference between right and wrong and choosing to do what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole. The phrase corporate social responsibility is often used when referring to business ethics. The idea behind this concept is the belief that companies should consider the needs and interests of multiple stakeholder groups, not just those with a direct financial stake in the organization's profits and losses.” (http://business.lovetoknow.com/wiki/A_Definition_for_Business_Ethics)

On 15 January 2007, M&S launched an initiative, known as "Plan A" to dramatically increase the environmental sustainability of the business within 5 years and expected to cost £200 million. http://www.marksandspencer.com/). The Plan was to address the key social and environmental challenges facing M&S today and in the future. The commitment covers five areas: climate change, waste, sustainable raw materials, fair partnership and healthier life-style for customers and employees. It aimed to achieve this by the year 2012. Marks and Spencer focus on these core areas to advocate that their business practices are morally, ethically viable and values the importance of corporate social responsibility. The areas are divided as follows:

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Become carbon neutral Send no waste to landfill Extend sustainable sourcing Help improve the lives of people in their supply chain Help customers and employees live a healthier life-style

The above ethical targets released by Marks and Spencer cover the main areas of concern for any organisation acting within an ethical mode demonstrating social responsibility, this too includes marketing ethics. Marks and Spencer’s Plan ‘A’ program includes responsibilities to stakeholders, customers, (customer care), community, employees, suppliers, competitors and the environment.

Marks and Spencer has worked to achieve its goal in becoming carbon neutral by using carbon offsetting as a last resort. Wind turbines are the most common renewable energy projects that are used as carbon offsets. M & S as of August 2008, M&S had three wind turbines in operation. In April 2009 the company began purchasing renewable energy sources and now has enough power for all Marks and Spencer’s stores and offices in England and Wales. (http://marksandspencers.com/Marks_%26_Spencer#cite_note-PlanA-35)

Marks and Spencer has made every effort to reduce its waste produce from its factory output and supplies to consumer. It has moved towards eco-friendly, recyclable materials where possible and introduced the 5p price on plastic food carrier bags where the proceeds are donated to ‘Ground-Work UK.’ The company under-refurbishing there stores brought more environmentally friendly materials for example using flooring made from natural rubber. “As well as the 'eco-features', all suppliers who were contracted to the project worked in a 'greener', more efficient way. This included operating a green travel plan for all construction traffic and managing waste materials to ensure that they were recycled where possible.” (http://schools-wikipedia.org/wp/m/Marks_%2526_Spencer.htm)

In 2006 the ‘Look Behind the Label’ marketing campaign was introduced. The aim of this campaign was to highlight to customers, the various ethical and environmentally friendly aspects, of the production and sourcing methods engaged in by M&S including: Fairtrade products, sustainable fishing and environmentally friendly textile dyes. All coffee and tea sold in M&S stores is now Fairtrade, in addition the company offers clothing lines made from Fairtrade Cotton in selected departments. (http://www.lowcarbonlife.net/downloads/Marks%20&%20Spencer%27s%20Plan%20A.pdf)

How Marks and Spencer aimed to improve the life style of people in their supply chain was by encouraging 21 million M&S customers to participate in “Your Green Idea.” And converting all 2.7 billion individual M&S food, clothing and home items (across 36,000 product lines) sold every year into ‘Plan A products’, so that each

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carries at least one sustainable or ethical attribute. (http://corporate.marksandspencer.com/investors/press_releases/planA/PlanA)

The final ethical target that Marks and Spencer used in their campaign was to help customers and employees live a healthier life-style. A press release recorded on 1st March 2010: “Our employees are key to making Plan A how we do business and we will involve all of them in Plan A. We will offer to insulate, free of charge, the homes of all of M&S employees and give them a home energy monitor. We will also give them a greater role in community activities by giving them one paid day off a year to do voluntary work where they live.” Furthermore Marks and Spencer announced: “We are offering our customers a home energy service to help save our customers hundreds of pounds a year and reduce their carbon footprint. This will include a home insulation service, bespoke energy advice, renewable energy installations (e.g. solar panels) and energy efficient heating solutions.”

Companies and businesspeople who wish to thrive long-term must adopt sound ethical decision-making practices. Companies and people who behave in a socially responsible manner are much more likely to enjoy ultimate success than those whose actions are motivated solely by profits. Knowing the difference between right and wrong and choosing what is right is the foundation for ethical decision making. In many cases, doing the right thing often leads to the greatest financial, social, and personal rewards in the long run.

Question 5Using your imagination and with the advancement of ICT what else could have been done if you were responsible of leading M&S in year 2010?

Businesses have sought to take advantage of the global reach of the World Wide Web and the huge number of potential customers available online. Internet marketing actually combines many of the basic elements of traditional marketing. "Internet marketing employs the same methods and theory as traditional public relations and integrated marketing—the basic tools for any campaign," Maria Duggan and John Deveney wrote in Communication World.

Internet marketing campaign is intended to increase awareness of an existing brand, draw visitors to a Web site, or promote a new product offering, it increases awareness and communicates to large audiences information about the company. Online surveys of customers are one source of potential feedback.

With the advancement of the internet Marks and Spencer’s should devise a marketing program and invest wisely and seek expert advice on improving there web usage such as dividing the domains:

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Gmail & Google service providers have smart artificial intelligent automated reading software. It reads individual emails and recognises what the content of the email and then produces advertisements on the side in a column relevant to the subscribers email. It is targeting the users email and matching it to company’s advertisements that it assumes you would be interested in. Marks and Spencer can capitalise on this. However this costs large sums of money and contracts need to be set up with Gmail and Google.

Search engines are useful tools for businesses. Users that are browsing the internet for special offers and deals can receive M&S promotions, vouchers, discounts, store information, locations etc…

Design and set up an interactive website for customers providing virtual images, check outs, ordering, returning and providing feedback. E.g. insert height, weight, skin colour, hair, age, measurements etc and ask the site to dress this image, offering various price, colour, designs, styles etc and pointing the user to an example of the items available. The web site should also have links, video and virtual images for the ‘Simply Food’ range showing customers what they can make with their food items and have available recipes etc.

Make store card payments over the website and give customers a receipt online. Marks and Spencer Mobile Shopping, using mobile phones is present and the way of

the future. This idea is to establish a customer base with those consumers who have busy working lifestyles. The aim is for customers to set up just one account over the web and then they can manage it from their mobiles. Enabling them to check reviews, latest offers, store finder, FAQ, enter competitions, access billing/payment account, join forums, place orders, request for items to be returned, collected and delivered. All this should be accessible from anywhere, so it is also ideal for the frequent business traveller.

Using ICT and the Internet will allow Marks and Spencer to create a detailed customer data base, they can monitor, trends, profits, fast moving items, un-popular items, peak spending and so on. They can compare and contrast and view customer feedback and compile useful internal statistics so that the relevant departments can quickly respond and change and/or devise new strategies to maintain Marks and Spencer at a competitive edge in their business industry.

BibliographyTitle: Business Essentials

Marketing Course BookPublisher: BPP Learning MediaEdition: September 2007 (1st)

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Title: Advanced Level Business StudiesPublisher: Hodder EducationEdition: 3rd

Author: Ian Marcouse

Title: MarketingPublisher: Butterworth & HeinemannEdition: 5th

Author: Michael Baker

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