Unit 4 - Marketing Principles

Division of Business
Course: BTEC Higher National Diploma in Business (Management)
Year: 2014/2015
Student Name:
Unit 4 - Marketing Principles
Lecturer's Name: Patrick Justus
Date Issued: 09 February 2015
Completion Date: 12 June 2015




Learning Outcomes:LO1 Understand the concept and process of marketing. LO2 Be able to use the concepts of segmentation, targeting and positioning. LO3 Understand the individual elements of the extended marketing mix. LO4 Be able to use the marketing mix in different contexts

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The Marketing Mix for H&M

H&M's Brand Identity

H&M is the largest fashion retailer in Europe at the present. Like ZARA, fashionable designshigh qualityaffordable prices and its distribution system are keys to its success and rapid expansion worldwide. However, fast fashions, the most important factor of ZARA’s success, is not the one to make H&M more thriving in the market.

H&M’ physical stores are also located in the largest cities around the world. Its strategy is quite similar to ZARA’s; that is, H&M tries to let its customers have an image that it is a brand focusing on stylish designs with good quality at the affordable prices. In fact, H&M’s prices are lower than ZARA’s because it provides its products to all people who want to be fashionable without any scruple about the prices. H&M has a mission that it is possible for everyone to find his or her own dressing style in its collection.

Product – wide range of cloths and accessories with lower price and reasonable quality, inspired by the latest catwalk trends.  Its product concept is ‘EDLP’ (every day low price product). H&M also offers sportswear, lingerie, cosmetics and home department.



Price cost-based. Cheap and affordable.
Place – H&M stores are always located in well-known department store or famous shopping street. H&M also has an online shopping website to service its customers to be more convenient. They can browse, interact and order the product everywhere and at any time directly from their home, the brand also provides shipping all over the world.
Promotion – H&M spend many effort on promotion, no matter the outdoor advertising, direct market – H&M magazine, and also the press even the famous blogger and world celebrities; word of mouth is a powerful tool. The company uses video advertisements, print advertisements and the concept of e-marketing to meet the consumers from everywhere. H&M invest a lot in advertising and marketing campaign


Task 1: Understand the concept and process of marketing

(This tasks offers you an opportunity to achieveL.O.1: 1.1, 1.2 and M1, M2 & D1)

The marketing process consists of various elements. Explain the marketing process.(1.1)

Businesses can develop new products based on a marketing orientated approach. What benefits and costs are associated with this approach forH&M? (1.2)

To achieve M1: You need to identify and apply strategies that have been explored in 1.1 and explain the various elements of the marketing mix.  Include a demonstration that critical judgement and an effective approach to the case study and research has been applied.

To achieve M2: You need to select and apply one of the elements within the marketing process to H&M

To achieve D1: Critically evaluate the benefits and costs of market orientation forH&M. Form a conclusion and justify your position.

Task 2 Be able to use the concepts of segmentation, targeting and positioning
(This tasks offers you an opportunity to achieveL.O.2: 2.1, 2.2, 2.3, 2.4, 2.5 and M1 & D1)

Contemporary changes that occur within the macro and micro environment heavily influence marketing decisions. Using the case study provided, illustrate how the micro and macro environment has influenced marketing decisions within H&M. (2.1)

Looking at market segmentation principles, propose segmentation criteria to be used by H&M for its products in different markets.(2.2)

You have been recruited as a marketing manager forH&M. Select a product/service from H&M’s range and propose an appropriate targeting strategy to help boost sales forH&M. You need to answer this question in a Business report format (2.3)
Undifferentiated (mass) marketing, differentiated (segmented marketing), concentrated (niche) marketing and Micro marketing-(local or individual marketing). You should use an appropriate business report format.

Buyer behaviour affects an organisation’s marketing activities. Provide two examples of different buying situations within H&M. (2.4) 

Propose new positioning for one product/service within H&M. (2.5)

Task 3 Understand the individual elements of the extended marketing mix
(This tasks offers you an opportunity to achieveL.O.3: 3.1, 3.2, 3.3, 3.4, 3.5 and M2, M3, D2 & D3)

Certain products develop and sustain a competitive advantage over a long period of time. Explain how one ofH&M’s products has achieved competitive advantage. (3.1)

Customer convenience is a very important concept in marketing. Using the case study, explain how H&Mdistribution is arranged in a particular way to facilitate this. (3.2)

An organisation’s objectives dictate how prices are set to balance and match with market conditions. UsingH&M’s case study illustrate how this works.(3.3)

Promotional activity is essential to achieve an organisation’s marketing objectives. For this task you have been appointed as a marketing and communication manager for H&M, prepare a power point presentation to the executive t to show how promotional activity is integrated into marketing objectives. (3.4)

The marketing mix is an important concept. As a senior marketer write a report analysing the additional elements of the extended marketing mix impact on H&M. (3.5)

To achieve M2: You need to discuss how you would select and apply appropriate methods within H&M in order to sustain a competitive advantage. Use a range of sources such as textbooks, academic articles, case studies and reliable internet sources, apply Harvard Referencing throughout.

To achieve M3: You will need todemonstrate howH&M uses prices to reflect its organisational objectives.  Present these finding in a structured and professional report.
To achieve D2:  You work as a marketing director for H&Mand have been asked to investigate how you can best organize the promotional activities of:
  1. Your own stores
  2. Independent fashions stores
  3. Department stores
To achieve D3: You will need to demonstrate creative thinking in your power point presentation by illustrating how promotional activity is aligned to achieve marketing objectives.  Please support your answer usingH&Mcase study.
Task 4 (This tasks offers you an opportunity to achieveL.O.4: 4.1, 4.2, 4.3 and M3, D3) Be able to use marketing mix in different contexts.

Propose two separate marketing mixes for two different segments in consumer markets, using products/services fromH&M(4.1)

Marketing tactics used on a consumer is different to the marking tactics used for a business. Using H&M., illustrate the differences in marketing products and services to businesses rather than consumers. (4.2)

Marketing a product/service domestically would employ slightly different methods than those used for international marketing. Explain this usingH&Mas an example. (4.3)

Submission Guideline

·         Work should be referenced in accordance with Harvard referencing Style
·         Sources should be acknowledged fully by referenced books, journals used and URL visited
·         All work should be word processed, font size of 12 and font style of Times New Roman/Arial 
·         Subtitles of the assignment should be in the font size of 14
·         Pages should be numbered in the bottom right hand corner
·         Spell check the document and read thoroughly for grammatical errors
·         1.5 Line spacing
·         Reference list should be at the end of the assignment
·         All paragraphs should be aligned in justified mode
·         The guided word limit is between 2500-4000 words