Contents

Introduction

Definition of Marketing

Marketing Concept

Production Orientation

Sales Orientation

Market Orientation

Marketing Process

Market Analysis

Selecting Target market

Marketing Mix overview

Implementation and Control

Strategy Control

Difference between Business and consumer Markets (B2B vs. B2C)

B2B (business-to-business) marketing

B2C (business to consumer) marketing

Comparison between H&M and Zara

How Marketing Mix helps in achieving organisations objectives

Executive Summary

Current market situation analysis

Internal analysis

External analysis

Porter’s five forces analysis

SWOTS analysis

Marketing objectives

Market segmentation

Identification

Market Target strategies

Conclusion

Reference list

Introduction

The H&M cluster is one of the world’s top fashion companies, with brands being H&M, Weekday, Monki amongst others.  H&M hopes to inspire fashion globally to dress their individual style. With every exclusive identity, H&M offer brands amalgamated in their desire for fashion in a cost cost-effective and maintainable way.

Definition of Marketing

“Marketing includes research targeting also interacting through commercials in addition to direct mailings and on occasion public relations.  Marketing is to sales as Ploughing is to plant for a farmer.  It permits us to warm up the audience to accept a direct sales pitch” (Bianco, 2012).

“Marketing is supporting your customers to comprehend how much they require something they didn’t know they needed” (Moran, 2011). 

Marketing Concept

Production Orientation

It is a promotion strategy that emphases solely on goods rather than the desires and wants of its buyers.  The company will drive all their resources on just how to create merchandise unique and totally different to anything out there in the marketplace already.  Worthy of the high quality of the merchandise, direct sales pitches and further types of advertising are not as vital as the excellence of the product itself i.e. Jaguar, Toni & Guy (Hair care product line), Nandos. Bentley. The product idea is the oldest in the industry.  Consumers prefer goods that are extensively available/low-priced concentrating on high assembly efficiency, low cost and mass circulation. 

Sales Orientation

A companies’ approach/philosophy that primarily focuses on advertising sales of anything it produces or distributes throughout marketing and sales calls, as opposed to product orientation. Effective management of the affiliation between company and shoppers define its accomplishment of sales and or selling.  Generating value for consumers. “Selling concept: The idea that consumers are not capable to make decisions on their own to buy products or services.  Stresses a mind-set of constant pressure to make sales”

Market Orientation

A company uses Market Orientation to organise its activities products and services around its customers wants needs. In the case of H&M it is seen that the company follows the philosophy, as H&M focus on the needs and wants of their customers before creating their products. Constantly monitoring customer’s desires and quality changing their products and services to what best suits their customers. “Putting the customers 1^st and the customer is always right”. H&M recognises the ongoing dip in the world’s economy and recognises that it is becoming harder to buy expensive fashionable clothing.  So, it is H&Ms concept of trendy fashionable clothing but within reach of the common man.  H&M have a strong standing with the US and Europe but market and sell their products in 2 completely different ways.  The US target the young and most fashion-conscious females and in Europe they are more of a department store.  When designing a product H&M always keep their customers in mind.  Designer Ann-Solie Johansson admits that finding the customer’s needs is very important.  She also states that she used to follow people off the subway and question them about their fashion needs (scribed).

Market orientation viewpoints include the choice making perception, market intelligence view, ethnically based behavioural perspective, strategic perspective and consumer orientation perspective(Market orientation, n.d.).

Marketing Process

1. Market Analysis
2. Selecting Target Market.
3. Market Mix
4. Implementation and control

Market Analysis

Gathering information through various channels i.e. Market research, focus groups, surveys about conditions that can affect the market place. The aim of a market investigation is to work out the appeal of a marketplace and to be familiar with its evolving prospects and threats for example relates to the strengths and weaknesses of the company.

David A. Aaker marked out the following requirements of a market observation:

• Market size (current and future)
• Market development rate
• Market cost-effectiveness
• Industry cost composition
• Delivery channels
• Market movements
• Key performance indicators.

(Market Analysis, n.d.)

The tools used for Market Analysis are as follows PEST, SWOT and Porters Five forces.

PEST is a tool used to assess the marketplace for business or organizational structure. The PEST analysis headings are a framework for reviewing a situation.

Political

Economic

Social

Technological

The SWOT comparison is an extremely useful module designed for understanding and policymaking for all sorts of circumstances in business and industries. SWOT mean Strengths, Weaknesses, and Opportunities and Threats

(UNKNOWN, 2016)

Porters Five Forces

1. Existing competitive rivalry between suppliers
2. Threat of new market entrants
3. Bargaining power of buyers
4. Power of suppliers
5. Threat of substitute products (including technology change)

Michael Porter’s famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization

(Chapman, Alan, 2014)

Selecting Target market

“Dividing the Market into different sets of consumers with identifiable needs through Market segmentation”

“Market segmentation is the procedure of separating an entire market up into different customer sectors. Targeting or target marketing is used to decide which potential customer sectors the business will focus on. Marketing segmentation most defiantly comes before targeting, It helps be more selective on which people they should promote to”

Examples of Market Segmentation are as follows

• Identification – identify and target certain demographic groups. These may include gender, age, salary, family capabilities, geographic area and culture.
• Types – Marketing segmentation and targeting is used for both business and non-business customers. Demographics is not the only group used, other ways to divide customers is by different psychographic or behavioristic characteristics, like interest and usage percentage
• Function – Businesses need to know exactly which setors show the most potential sales for its company.

Considerations – Businesses can use marketing segmentation and targeting by first carrying out some marketing research. They will have to include demographic categories of Target, to determine which demographic sets, comprise most their customer base at a later date.

(Suttle Rick, 2017)

Target Market Strategies- Each company and each creation requires a target market. The target market is a set of people, largely apprehended, toward which the marketing and advertising efforts are aimed. It is imperative to target creations towards a market so that the correct costing point is made, circulation channels and advertising strategies policies your company with be guided by

• Identifying Consumer Demand – As well as recognizing demographics and psychographics within the target market, a segment plan is needed to consider the consumer requirement.
• Heterogeneous method. – Alternative approach to focus market segment strategy is to concentrate on meeting the desires and wants of numerous unlike sub-categories. dividing the marketplace into bite-sized portions allows your business to accommodate to individuals.
• Recognizing a segment. – It’s not logic to continually cater to each customer’s urges. It can be expensive and inefficient if your trade isn’t focused by its efforts. To be able to justify reacting to a specific market section or sub-target, the customer request must produce enough revenue to validate the manpower and time obligation.

Positioning is a resource used in marketing which evaluates what a company must do to promote its product or facility to its clients. In positioning, the promotion department generates an image for the creation aimed at its intended viewers. This is gained using promotion, price, place and product. The more powerful a positioning strategy, typically the most effective the advertising strategy is for a business. A great positioning strategy raises the marketing hard work and helps a purchaser move from information of a merchandise or facility to its acquisition. (Lauren, Lynn 2017)

Marketing Mix overview

The ‘marketing mix’ is a solid concept in marketing. The marketing mix has been described as the “set of marketing tools that the company uses to attack its marketing objectives in the target market”. Ultimately the marketing mix tool is structured to four broad levels of marketing conclusion, namely: product, price, promotion, and place. Using Marketing has been going on for Eras, the philosophy however, arose in the early 20th century. The contemporary marketing mix, or the 4Ps, is now the main background to enable management to make marketing decisions, 1^st published in the 1960s.

THE Marketing Mix used by H&M also includes the 4P’s

1. Product – Vast range of clothing and other items with a lower price range and a decent quality.  All products are inspired by the latest Catwalk trends.  H&M’s product concept is “Everyday low price product”.
2. Price – Cheap and affordable.
3. Place – H&M stores are all located in well-known locations.  They also and Online website which gives consumers access to different products that they offer.  Consumers have the opportunity to browse and order products anytime and anywhere.
4. Promotion – H&M focuses a vast amount of time on Promotion and advertising.  Direct marketing is also used as part of H&Ms campaign.  H&M uses Celebrities, press and Bloggers to carry out the advertising message.  Social Media, Video and print to make its products and services known to its customers.

Implementation and Control

The success of strategy application determines the consequence of marketing development. The management of the preparation process may improve implementation effectiveness thru building promise and ownership of the strategy and its implementation. For instance, actively handling the contribution of different purposes and administrators from diverse specializations may recover the fit amongst the idea and the company’s actual capabilities and possessions and avoid application barriers. Preparation and execution are symbiotic parts of tactical change.

Marketing executives increasingly function as border spanners both inside between functional parts and externally with dealers, organizational partners and customers. Additional efforts to make the strategy implementation process more effective are a high priority in many companies.

Estimates suggest as many as 70% of new strategic initiatives in businesses fail on the enactment stage. Many businesses now know that implementation competences are an important commercial capability that needs detailed organisation attention.

Implementation process

A good implementation process spell out the

1. Doings to be implemented -,
2. Who is answerable for implementation?
3. The time and site of application and
4. How application will be achieved.

Strategy Control

Control can be distinct as endeavouring to guarantee conduct and schemes conform to, and support, prearranged corporate purposes and policies.

The basis of control is ability to measure. It compares what should happen with what actually happened or is likely to happen. Specified the importance of dimension, a propensity exists to measure what is easy to count rather than what is significant.  Project directors must protect against this and prominence on the crucial areas. Good switch systems often notice and rectify complications before they develop significant and executives should recollect that anticipation is healthier than cure. It is imperative to be active rather than responsive.

The control process entails the following steps:

1. Set targets – preferably these is combined into overall advertising planning.
2. Encoding the method of dimension- performance appraisal
3. Measured results are likened with the predetermined boards and remedial action if mandatory is undertaken

Control must be carried out in both the inputs and the outputs. This assistances management to enhance the process and take tactical view. Characteristic inputs include:

• Money: funds, working capital and cash.
• Operatives: volume, usage, competence and application of apparatuses, systems and other belongings.
• People: Statistics, quality then skills of employees.

Output is calculated in terms of overall organisation performance. Routine is derived from mixture of efficiency and success.

• Efficiency: How well applied are the efforts? Do we make all-out use of funds, minimize cost and work at optimal levels of capacity?
• Effectiveness: Are we undertaking the right things? This relays to actual presentation and will include sales income, profit, market share and measures of customer satisfaction.

Difference between Business and consumer Markets (B2B vs. B2C)

Customer service is crucial in both B2B and B2C though its effects are more prominent in the case of B2C. Creating a brand image is perhaps more important in B2B, while creating a desire in the minds of end consumers is more important in B2C. It is important to understand the needs of the target audience in both B2B and B2C.

B2B (business-to-business) marketing

• “Marketing of products to businesses or other organizations for use in production of goods, for use in general business operations (such as office supplies), or for resale to other consumers, such as a wholesaler selling to a retailer.”

B2C (business to consumer) marketing

• “B2C is an acronym for “business to consumer”. A B2C business is one that offers items or administrations direct to the buyer, instead of another business (B2B).”

P3

Comparison between H&M and Zara