2.0 The Need of Research
2.1 Why M&S need to do carry out Research
Research is about gathering information around to comply with the consumer’s requirement. And to deal with the existing problems in conjunction with promotion of the market, as defined in the quote below. However, research is also way of analyzing competitor’s data. The basic of market research is to discover the market of the business planning.
“The systematic gathering, recording and analysis of data about problems related to the marketing of goods and services.” The American Market Association.
M&S can take ‘the brand equity research’ approach to see how favourable the consumers view their brand. Most people consuming M&S clothing or food will apparently have pride in it as the goods where made in an appropriate way. In terms of manufacturing and in favour of the UK economy. M&S goods are high quality British made goods in terms of food, which helps creating jobs in the UK. ‘Mystery shopping’ approach can also be reflective on M&S customer service feedback. However customer service at M&S stores is brilliant as M&S staff are highly trained with a good product knowledge.
“Marks and Spencer stores buy their ready prepared meals and most of their clothes from factories (owned by other companies) which supply them exclusively. M&S develops very close links with these suppliers. It insists that the it buys meet pre-determined specifications.”
The two types of market research mentioned above have a source of success in the market orientation approach. If M&S keeps on researching their market it will lead them to success.
2.2 Market Research Methods
Primary
The quote below summarizes; Primary research is getting direct information about a specific product. This data did not exist beforehand it is original data that has been surveyed for. Primary research can take time to get the required information, however it is still useful as the information is original and relevant to preserve the consumer’s expectations. The information gathered can be classified as qualitative’ or ‘quantitative’ in nature. An example of a primary research is surveying the quantity of customer’s rates M&S food the best quality. This will be collecting a ‘quantitative’ data. Or what does the customers thinks of the customer service provided at M&S. M&S has to carry a field research out in order to collect a primary data. For example a face to face or telephone interview. However, online survey has been popular nowadays. Or questionnaires send in post for customers who have recently bought a product or service. The main advantage of carrying out a primary research is; the data is an answer to specific question the business wants answer to. Or with the matter of telephone and online questionnaire, the business can obtain data quickly to make use of it efficient. But there are also disadvantages of primary research which is when the questionnaire questions are not worded properly.
“Any information that is original and is obtained outside the firm is referred to as primary data.”
Secondary
As the quote below clarifies, secondary research is using data that other people have gathered through primary research. This data is available from government statistics, well known universities or business. You should be careful with whom you collect the information from, as not al information are from a reliable source. Secondary research is used to extend your business into new markets or to add new services. Secondary research is less cheaper but it is not accurate as the primary research. As the information it contains is not the accurate answer to what the business would have been of to.
“Secondary data are ‘second hand’ information previously collected or published for another purpose but readily available to consult: internal reports or external sources such as information libraries or websites.”
Qualitative Data
The quote below explained; Qualitative data is used to find out opinions of the consumers. It helps to establish what the consumers believes, experience, interaction. For example if M&S wants to find out which age group category likes wearing M&S clothing. They are collecting a qualitative data in this case. It will help M&S to produce more clothing based on that age group category.
“Exploratory research used to uncover consumers motivations, attitudes and behaviour. Focus-group interviewing, elicitation interviews and repertory grid techniques are typical methods used in this type of research.”
Quantitative Data
Quantitative data is concerned with numbers and measurements rather than words. This usually used to make comparison. For example, how many people consume M&S poultry instead of Tesco’s in a percentage. M&S will hereby find out if Tesco is their leading competitor. Or M&S can also use quantitative data to measure how many people use online shopping rather than coming to the store. This will help them to see whether they should improve or stock more goods online rather than just focusing on the store.
Targeting respondents using segmentation
Segmentation is splitting potential customers into market different groups. For example, splitting the customer’s age grouped of 18-25 years into one group to generate their interest in clothing styles and colours etc. This will enable M&S to become conscious of which market segment to focus on. And to compare two groups to see which group to focus on.
2.3 Best research method for M&S
They best research methods for M&S is to use their primary data collected on surveying their focus groups and on customer feedback which they can obtain their customers details through their credit cards. M&S obtaining information from their focus groups will cost less as they are of to a particular information and particular age group. They can carry the survey out by inviting their customers to a event and obtaining the information by making them fill a questionnaire. They can entertain the customers with snacks and drinks. This wouldn’t cost much as the their will be limit of people which they would like to obtain information from. To organise such an event will take about roughly a month. To send of the invites and to receive back the respond from customers who wants to attend the event, it can even take less time depending on how efficient the customers are responding.
When goods are returned back for refund or exchange, this opportunity can be used to obtain information on why the goods where no good and its preferred instead etc. This will procedure will take less than ten minutes and it will cost nothing to obtain the information.
3.0 Recommendations
3.1 M&S and the Marketing Mix
Marketing mix is a combination of the elements that make up marketing. Such as price distribution and advertising. Marketing mix components is known as the seven p’s. Which are listed below with its essentials in the marketing mix and it’s relation to Marks and Spencer field.
Marks and Spencer need to look at their marketing mix to certify their products and services mix together. By looking at the marketing mix will let M&S realise which age group to attract with which product, so that they will have a focus group. Which M&S have recently been working on. Their clothing is been advertised by famous models e.g. Twiggy, Lily Cole etc. They have also been introducing new clothing line, which they have been building their success on in terms of the quality. If M&S takes a better approach at their marketing mix, they will be eagerly successful. M&S need to look at their focus group to produce the appropriate clothing to their customers. While M&S is best known for their quality at an affordable price compared to their competitors e.g. retailer Next and Tesco’s now a days. Most M&S stores are located at the local shopping centres, it’s location is to attract reasonably earning customers. The process of M&S informing their customers of their products is at the moment fairly appropriate. They have been in the media advertising, on television stations as living tv and in magazines such as Elle and Look. These magazines advertise really fashionable clothing which displays M&S most fashionable clothing in it. People are the most important aspect of M&S. As people represents their staff and customers at the same time. M&S staffs are highly trained, as they are representing the brand in store to customers. The service they will give will attract the customers to shop at M&S again. The customer management process is an essential element of the marketing strategy. For example dealing efficiently with customer complaint or query is really important, as this will make the market effective. When customers walk into M&S they expect the shelves to be stacked neatly. And they will also expect the shop floor to be clean and tidy, these are the physical evidence to the customers. The customers will make a perception based on what they have been seeing in the store and this will have an impact on the M&S reputation. All these seven p’s that M&S compromises of has to mix well in order to accomplish their goal.
3.2 Product
The products M&S produces are the key elements of the marketing mix. If the product meets customer requirements. M&S customers will continue to consume their products if the quality of the product doesn’t change. For example, if a woollen jumper says on the care instructions that it is machine washable, it has to be as it says on the jumper when you do the washing. As the customer bought the jumper for the benefit of its caring instructions to save some money on dry cleaning. But if the jumper turns to shrink after machine washing, these will upset the customers and they wouldn’t come back anymore. Maintaining the quality of the product and improving it compared to the competitors will make the product life cycle last long. M&S products has a top quality, however they need to take the market orientation approach to update their clothing line with the current trends.
3.3 Price
Price is a key purchasing decisive factor for consumers with a limited budget. However M&S product & services is at an affordable pricing range, compared to the quality they offer. The M&S pricing philosophy is the ‘price premium’, which fits into the rest of the marketing mix. Their products are high quality. To create a image of an expensive store than for example Matalan. To adopt the ‘premium price’ to observe the consumers of the quality. M&S charge’s prices for their products and services that their consumers are willing to pay for. However there are number of pricing strategies which M&S are the ‘cost plus pricing’. M&S is more focused on achieving competitiveness through cost efficiency, than originating in price competition. Although M&S produce quality goods, their clothing line is not fashionable enough to attract young consumers aged between 20 to 30’s.
3.4 Place
The place where the M&S is located has to mix with the market. The location where M&S is suited has to combine with the M&S focus groups. However, most M&S stores are located in large retail park and shopping centres with good parking facilities. M&S has metro stores nowadays where they provide groceries and so on. This M&S location is suitable for the consumers who want to do a ‘top up shopping’ after running out of milk during the weekdays. M&S has a online shopping nowadays, where they offer most part of their products and services. This will help M&S to make the mass sales 24 hours a day. They have their own distribution trucks for delivery service, which will make the trading sufficient at any time. M&S can also adopt the direct marketing strategy to retain a long haul customer relationship. By giving extra service customers and afters sales services. M&S can also organise a customer evening, with giving goodie bags out to their good customers and offering for example 10% off on their products.
3.5 Promotion
Then way M&S promotes their product and services is currently appealing. Their clothing is been advertised by the most fashionable models and the way their models are dressed is to attract M&S focus group. This is good as they will get the right customers in store. Their clothing line is also being promoted by the famous models on billboards, which will booze the sales as some people will just look at how the clothing is modelled by the model and they will go ahead and shop at M&S. For example Twiggy (the model) looks fairly young in the M&S clothing wile she is advertising it. M&S is doing gradually well on their promotion sector, it also mixes well with their marketing mix. Their are a few bits that M&S can adopt to improve their promotion sector even better. By for example producing coupons in magazines for customers to use it in store or online if you spend more than 30 ponds. Or buy making public relations for example, opening a new M&S store and using a celebrity to cut the ribbon, this certainly appear in the media.
3.6 People
This is a key element in the marketing mix. It is really important to recruit the appropriate staff to represent the brand in the store. Which M&S is good at most M&S staffs are highly trained and knowledgeable. M&S staff offer an exclusive customer service to the consumers and they also deal effectively with enquiries, this makes shopping experience exclusive to their competitors. The consumers make judgements on how well they have been served, and recognize this to their friends and family. This is an opportunity to retain customers. As they are paying a price for the service and product at the same time they are consuming. M&S is also good at taking care of their staff, which is important to retain the staff.
3.7 Process
The process factor refers to the system used to assist M&S of producing amazing services. This only needs a bit of management attention to ensure the best procedure in store. For example, if the mannequin is wearing a top that has been sold out in all colours and sizes, the top has to be taken of to prevent customers walking into the store to ask for that particular top which has been sold out. As some customers wouldn’t be bothered to ask for something else they looking for they have been disappointed for the first time. And this will lead to losing a sale or possibly losing a customer. However the M&S marketing process management is well organized as stock of the clothing line are 2 each size displayed.
3.8 Physical Evidence
The physical evidence is clearly the way their staff is being presented and their store. That is what the customers sees and that what M&S is judged on as a store. The store is always clean and is the window and the shells are well stocked. The lightening and music is always on the appropriate standard suited at time of the day. Their carpets are posh and tick and clean. These are all the bits that count on how well the store is presented and it will make the customers feel comfortable to shop at M&S.
3.9 Conclusion
I will conclude that M&S marketing mix is on the fundamental standard, they don’t need much changed. Although they will have to adopt the market oriented approach to improve their clothing line, as this is their current weak point. The clothing line is what they started producing which they should be specialised in, to be in the lead of their competitor’s stores such as Matalan, Primark and Next in the fashionable clothing wise. M&S has been to focused on their product and they have been producing the same sort of products without style updates. This has been their biggest week point which needs improvement.
Bibliography
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Kotler,P. 1998. Principles of Marketing. 11th edition. UK. Prentice Hall.
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Lancaster, G and Massingham, L. 1988. Essentials of Marketing. 1st edition. UK. McGraw- Hill Book Company.
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Kotler,P. 1998. Principles of Marketing. 11th edition. UK. Prentice Hall.
Kotler,P. 1998. Principles of Marketing. 11th edition. Prentice Hall.
CIM- Chartered Institute of Marketing
Kotler, P. 1994. Marketing Management. 8th edition. UK. Prentice Hall International.
Lancaster, G and Massingham, L. 1988. Essentials of Marketing. 1st edition. UK. McGraw- Hill Book Company.
http://en.wikipedia.org/wiki/Marks_&_Spencer#1997_onwards
Needman, D. etall. 2003. Marketing for Higher Awards. 11th edition. UK. Heinemann Educational Publishers. page 122.
http://www.mudvalley.co.uk/collateral/content/32.htm
Needman, D. etall. 2003. Marketing for Higher Awards. 11th edition. UK. Heinemann Educational Publishers. page 5.
http://news.bbc.co.uk/1/hi/uk_politics/tuc_conference/173300.stm
Needman, D. etal. 2003. Marketing for Higher Awards. 11th edition. UK. Heinemann Educational Publishers. Page 122
Dibb, S. and Simkin, L. 2001. Marketing briefs. 1st edition . UK. Reed Educational and Professional Publishing LTD. P45.
Kotler, P. et al. 2005. Principles of Marketing. 4th edition. UK. Pearson education hall. P 347.