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MKT00720 Marketing Case Study
The marketing is the process which makes the organization able to promote the products and services of the company in the market. Adoption of the appropriate marketing mix can help the companies to develop the product according to the needs, preferences, and demands of the customers. In this way, the company can gain the customer satisfaction and as a result, competitive advantage can be attained by the company for the long run. The report is based on the case studies of two organizations named as Marks & Spencer and Tesco. The marketing strategies adopted by the two organizations in order to gain the competitive advantage and to make the position of the company superior in the market from that of the competitors. Marks & Spencer is a company situated in UK and deals in the garment retail industry and on the other hand, Tesco is also the company situated in UK and deals in the retail sector. Both the companies have practiced various marketing strategies for the purpose to maintain quality products at affordable prices and making the brand popular among the customers. Retention of loyal customers and attraction of new customers has been the foremost priority in marketing strategies of both the organizations.
1.Evidence that the organization has gained a competitive advantage from their marketing processes.
Competitive advantage refers to the policies adopted by the organization which is the core competencies of such organizations and the companies perform better as compared to the performances of the competitors. The activities of the company for differentiating it from others may include the cost structure of the organization, quality of the products and the services offered, suppliers and distribution channels of the company along with the very important factor that is marketing process which identifies the target market and imply the resources in that direction (Mabry , 2012).
Organizations can gain the relatively higher competitive advantage with the help of effective and efficient marketing strategies implemented by the companies. There are two organizations which have come with the example of the influence of the marketing strategies on the success of the companies being able them to be competitively superior. These two organizations are Marks & Spencer, a garment retail company of UK and another is Tesco, a retail organization of UK as well.
Case study on Marks & Spencer shows that the company has followed the strategies of marketing in order to establish a reputed position in the market. The strategies of Mark & Spencer includes the following;
1. Marks & Spencer adopted the marketing process of expanding and diversifying the business of the company across various countries. This diversification made the brand popular among the customers and this resulted in the expansion of the segments of the market.
2. Marks & Spencer developed a unique marketing tactic where the company has developed a strong supplier relationship and the company has expanded the business globally on this basis. This core competence of the company provides it advantage over the competitors of the company.
3. The marketing of Marks & Spencer included the development of the product according to the needs of the customers and has gained an advantage over competitors through the satisfaction of the customers.
4. The marketing process of the company included a strong distribution channel through which the company extended the scope of business and it helped to win over the competition (Vriens & Brazell, 2013).
Case study of Tesco which shows the impact of the marketing processes adopted by the company for the attainment of the competitive advantage. The strategies followed by Tesco were;
1. Tesco adopted the policy of the sustainable business in which the company focused on the activities concerning the factors of the interest of the society, protection of the environment and customizing the products according to the customers made the company gain the competitive advantage in the market. Activities like the promotion of education, reduction in waste, recycling of waste, etc were practiced.
2. Tesco also expanded the business in more countries and made the products available to the customers at affordable prices and making the brand image stronger.
3. The marketing strategy in Tesco focused on the product development as well as the promotion of the products through various distribution channels which made the customers aware of the products and services.
4. The pricing strategy of the company was modified and Tesco made the quality goods available to the customers at low prices.
These market processes adopted by both the organizations made them attain the goal of achieving the competitive position and advantage. These are the evidence that the organizations have been benefited from the marketing efforts and that marketing mix has played an important role for these companies to improve their positions from the competitors.
2. Theoretical analysis of the reasons for the achievement of this advantage.
The competitive advantage gained by the companies Marks & Spencer and Tesco are the response of the effective market processes established by these companies and the continuous development in these strategies made the companies retain the advantage in the long run.
Marks & Spencer, in order to gain the competitive advantage, adopted the marketing policy to develop the product for expansion, for this purpose the marketing mix approach was adopted by the company and the customized products were developed as per the customers and were placed in different countries with effective promotional techniques adopting the suitable pricing policy considering the segments which have been added by the company. In this way, the company has created a strong brand name across the world. The supplier relationship is also one of the approaches of the company and adopted the porter’s five forces method (E. Dobbs, 2014). The segmenting customer market theory was also adopted by the company for segmenting the market on the basis of various attributes of the customers. Marks & Spencer has always been a customer-centric company which has helped the company a lot in building a trusted image.
Tesco has been one of the successful companies in the UK that have gained the competing advantage through its marketing strategies which include the selection of the target market and focusing the efforts of marketing on the selected group for the higher return. The theory of marketing that Tesco applied to attain sustainability in the business was the marketing environment theory where the company focused on the internal and external environment in which the company operates and the effects of the operations of the company on the society. The study made the company able to identify the strategies which should be adopted by the company in order to keep the society and the customers satisfied which resulted in the competitive advantage that the company enjoyed. Marketing mix has been the important approach for the company to gain the competitive advantage as Tesco has applied the seven Ps in the operations of the organization. The company focused the efforts towards the development of the products and services as per the customers, pricing strategy has also been decided to keep in mind the market segment the products aimed at, various distribution channels has been engaged by the company such as print media and hoardings for the publicity, stores have been opened across the country to reach the customers efficiently, people in the form of customers are given priority and social responsibility has been fulfilled by the company and physical evidence in the form of high-quality goods have been offered to the customers to retain the existing customers and attract the new customers. This is the model that is adopted by Tesco and gained the long run competitive advantage as compared to the other competitors present in the market (Brooks & Simkin, 2012).
It has been concluded that the companies need market processes to make the business a success and to earn higher benefits in terms of good reputation in the market and customer loyalty etc. The marketing is an important tool for attaining the long-term goals and objectives of the organization as well as gaining the competitive advantage for the betterment of the company. This report has included the case study of two organizations and how the market processes of the two organizations made them attain a better position in the minds of the customers. These organizations are Marks & Spencer and Tesco, both retain sectors industries and holds a brand image in the market. The case study of the companies focused on some of the marketing theories which have been adopted by these organizations such as the theory of Micheal Porter’s five forces, marketing mix theory, theory of marketing environment. These approaches and theories are the reasons for these companies in maintaining their superior positions and the making them competent in business. Marks & Spencer has adopted the theories of porter’s five forces, segmenting customer market theory and marketing mix. Similarly, Tesco has adopted the approach of the marketing mix in order to keep the stable position and maintain continuous improvement in the operations of the company. This report focused the importance and impact of the marketing policies of a company on the competitive advantage of that organization.
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