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Table of Contents

TASK1: ESSAY 2
ROLE OF MARKETING AND INTERRELATIONS WITH OTHER FUNCTIONAL UNITS OF ORGANIZATION 2
RESTRUCTURES PRODUCT DEVELOPMENT: A MARKETING STRATEGY HELPS YOU CREATE PRODUCTS AND SERVICES WITH
THE BEST CHANCES FOR MAKING A PROFIT. THIS IS BECAUSE MARKETING STRATEGY STARTS WITH MARKETPLACE
RESEARCH, TAKING INTO CONSIDERATION YOUR OPTIMAL TARGET CUSTOMER, WHAT YOUR COMPETITION IS DOING AND
WHAT TRENDS MIGHT BE ON THE HORIZON. IT HELPS DETERMINE OPTIMAL PRICES. 4
ASSISTS WITH MARKETING COMMUNICATIONS: YOUR MARKET RESEARCH WILL HELP YOU CREATE YOUR BRAND, OR
IMAGE YOU WANT TO ESTABLISH ABOUT YOUR BUSINESS. A MARKETING STRATEGY LETS YOU DETERMINE IF A
PARTICULAR MAGAZINE, RADIO STATION OR WEBSITE FITS INTO YOUR SELLING PLANS. 4
ORGANIZATIONAL IMPACT: WHEN YOU HAVE A MARKETING STRATEGY, YOUR DEPARTMENTS CAN WORK MORE
EFFECTIVELY WITH EACH OTHER, BECAUSE THEY ARE ALL WORKING FROM THE SAME PLAN. FOR EXAMPLE, YOUR
ADVERTISING PEOPLE WILL TALK WITH YOUR PRODUCT DEVELOPMENT PEOPLE TO DETERMINE WHAT MESSAGE YOU
SHOULD SEND ABOUT YOUR BENEFIT. YOUR SALES PEOPLE WILL TALK WITH THE PEOPLE RESPONSIBLE FOR MANAGING
YOUR IMAGE TO DETERMINE IF THEY CAN OFFER DISCOUNTS, COUPONS OR REFUNDS WITHOUT DAMAGING YOUR
BRAND. 5

ZARA PROMOTIONAL STRATEGY: 5


PRODUCT IN THE MARKETING MIX OF ZARA: 5
PRICING IN THE MARKETING MIX OF ZARA: 5
PROMOTIONS IN THE MARKETING MIX OF ZARA: 6
TASK3 8
CONSTRUCT A WELL THOUGHT OUT, AND JUSTIFIED STRATEGIC MARKETING PLAN FOR ZARA INC. FOR ITS
INTERNATIONAL EXPANSION INTO PAKISTAN. 8
SWOT ANALYSIS OF ZARA FOR EXPANSION IN PAKISTAN: 10
STRENGTHS: 10
POLITICAL ENVIRONMENT: 11
ECONOMIC: 11
AS THE PAKISTANI MARKET IS UNSTABLE NOWADAYS AND IS GOING THROUGH MAJOR FINANCIAL ISSUES BUT THERE ARE
MANY ONGOING PROJECTS ON WHICH THE PAKISTANI GOVERNMENT IS WORKING INCLUDING THE CPEC CORRIDOR
WHICH MAY PROVIDE VARIOUS OPPORTUNITIES FOR TRADERS SO ZARA HAS A GOOD OPTION TO LAUNCH ITS BRAND IN
THE PAKISTANI MARKET. 11
AFFORDABLE PRICING TECHNIQUE HELPS FIGHT OFF SOME OF THE EFFECTS OF LOW ECONOMIC ACTIVITY. AS THE WORLD
HAS BEEN SUFFERING FROM COMPLEX WEB OF LOW ECONOMIC ACTIVITY. 11
SOCIAL ENVIRONMENT: 11
TECHNOLOGICAL ENVIRONMENT: 11
ENVIRONMENTAL: 12
Task1: Essay

Role of marketing and interrelations with other functional units of


organization

a) Key roles and responsibilities of marketing function and their relation with organizational context
Significance of interrelationships between marketing and other functional units
Marketing function can be defined or explained as the roles of the business organization which helps
it to identify and source potentially successful products for market and then helps in its promotion
as well. These functions are common in business organizations and involve marketing research,
product plan, development process, promotion, sales, finance, customer service etc. The marketing
functions involves various responsibilities of the business organization; these functions are
responsible for the growth of company. There is a close link between marketing functions with other
organizational functions in an organization.

The marketing functions are separate units in business organization but every department and
function in an organization is linked together for increasing the profitability of the company. The
finance department provides appropriate budget to the marketing department for the planning and
implementation of marketing plan. Production department communicates with logistics department
to fulfil the demand and supply of product and services. Human resource policies are generated
according to the market trends, sales and target consumers.
B) Roles and responsibilities of marketing with respect to marketing environment
The marketing management is defined as the process of planning and execution of the various
different concepts of marketing. These marketing concepts involve pricing, promotion, distribution,
sales etc. which compliments the target audience of the company. The roles of marketing can be
explained as:
Market strategies: The initial role of marketing represents the development of marketing strategies
and planning for the business organization. The managers of the organization need to recognise the
needs and requirements of target consumers and provide them products and services as per their
requirement.
Marketing information system: The marketing information systems provides the information
regarding various factors such as product, planning, and execution, controlling of marketing strategies.
It tells all the required changes to be executed.

Monitoring of marketing environment: The marketing process have essential role in the
identification of new developments in the marketing environment, these developments provide
positive response for the development of product and services of the company. These involve
changing market behaviours, socio-economic forces, legal changes and internal and external changes
of market etc.
Marketing research: Marketing research is considered to be the major role of marketing. The
research involves specific knowledge of product, price and consumers in order to communicate the
best products and services of company in the market.
Market segmentation: In the modern period of globalisation market is unstable, thus business
organizations requires accurate segmentation which are provided by the marketing. Marketing
managers help the organization in the identification of customers of the diverse market and promotes
the product, goods and services among them.
Brand Equity: The consumers are to be motivated over brands or the organizations which provide
additional value to their products and services. Thus, marketing provides a reputation and builds
strong brand value of the company upon the consumers. This process helps business organization to
increase their sales volume.
C) Key elements of marketing functions and interrelations with other functional units of
organization
Marketing functions includes various different roles such as advertising, finance, distribution system
etc. But activities come under the process of marketing process. The key elements of marketing
functions are explained below:

Research: In the business organization market research plays a vital role. It is one of the most
important marketing function, as without a successful market research, business is not possible or can
be impossible. Research helps in getting the valuable information regarding all the factors concerning
business process. Thus, it is considered to be a vital key marketing function among business
organization.

Strategy: After collecting all the information and data from the research, it is processed to review all
the possible strengths and weakness among the business operations. This processed data allows us to
make an idea for strategies which can be utilised in the organization. The strategies provide valuable
guidance for competing with the strong market and succeed in the market environment. The
strategies are built over all the realistic possibilities and results which are measured through research.

Planning: The marketing department involves financial planning, forecasting of sales figures,
distribution, communication and other factors of business. While the planning department consumes
a specific timeline to plan the major strategies for the conversion of goals into success
Tactics: The Small and short term plans implemented to cover a specific or non specific targeted
audience. They involve limited period offers which provides promotional boost in the marketing plan
such as Buy one get one free offers. It helps in boosting the sales and limiting the initial pressure by
the competitors.

Interrelations of the key marketing functions with other functional units of organization:
In a business organization, the marketing functions are closely linked together with other
departments of the company. The marketing functions require accurate description from the
production department regarding the products and services of the organization to provide a
marketing plan. Secondly, they require human resources from HR department, economic help from
finance department, logistics from distribution network etc. The operation of marketing needs to be
communicated and backed by the other departments of the company.

For example, the HR policies must be aligned with the marketing department to increase the sales,
side by side the Production team must convey the information regarding the product and services to
build an accurate marketing plan for the company. If Marketing functions are unidentified regarding
the inventory of raw materials or production capacity of the company, then marketing plan will result
into blunder and losses. Thus, the marketing functions are interrelated with all the other functional
units of the business organization

Q2 Critically Analyse and Evaluate the importance of marketing function in


improving/assisting organizational integration within today’s contemporary organizations.

Restructures Product Development: A marketing strategy helps you create products and services
with the best chances for making a profit. This is because marketing strategy starts with marketplace
research, taking into consideration your optimal target customer, what your competition is doing
and what trends might be on the horizon. It Helps Determine Optimal Prices.

Part of a marketing strategy is setting the right price for your product or service based on what you
learned in your market research. If you learned that customers want a high-end product in your
category, your pricing strategy might require you to sell at prices that create a high-end perceived
value. If your target customer is bargain conscious your pricing strategy will require you to sell at or
below the competition’s price.

Establishing Effective Distribution: Once you get to know what product qualities or features you’ll
offer, who’s your target audience and what your price points will be, you can select where you want
to sell to maximize your marketing efficiency. For Example; Younger customers will be more likely to
shop using a smartphone or on a website, paying with COD or a credit card. Older customers might
prefer to shop at retail outlets or super markets. If market research shows you need to be in retail
stores but you don’t have a sales force, you can use a wholesaler or distributor for that purpose.
Assists with Marketing Communications: Your market research will help you create your brand, or
image you want to establish about your business. A marketing strategy lets you determine if a
particular magazine, radio station or website fits into your selling plans.
Organizational Impact: When you have a marketing strategy, your departments can work more
effectively with each other, because they are all working from the same plan. For example, your
advertising people will talk with your product development people to determine what message you
should send about your benefit. Your sales people will talk with the people responsible for managing
your image to determine if they can offer discounts, coupons or refunds without damaging your
brand.

Task 2

a) Consider the two competitors given in the scenario and draw out the marketing mix (7
Ps) for both the brands. Clearly highlight any marketing mix differences for the two
companies.

Zara promotional strategy:

Zara is essentially unique with the brands advertising strategy, in that if reports were accurate, the
company does not engage in advertising. This is in fact false; Zara basically get a lot of attention
through word of mouth. Their target market base is 18-40 year olds that live in and around cities.
Zara also benefits from authorizations from fashion experts and celebrities. The Duchess of
Cambridge has been pictured wearing Zara products. With 2000 stores in 77 countries located near
high-end stores, the Zara logo is advertised on the company’s retail outlets. It would be impossible
to sell products to a market without marketing.

Product in the marketing mix of Zara:

Such is the craze of this brand among the fashion enthusiasts. One of the major strength of the
company is that it is able to respond very quickly to the changing needs of the customers.
The company does not outsource its manufacturing process, making it fully in control of
the products it produces. Its unique selling preposition is to create the latest trends. In most cases,
new styles are normally available on the sales stores within two weeks, four weeks maximum. If
a product is not selling in the stores, it is immediately pulled from the stores.

Pricing in the marketing mix of Zara:

Because the concept of Zara is to provide its products at a reasonable price to its customers, it
follows that customers find its prices quite affordable. However, we have to know that we are
referring to the cream customers who would compare Zara with Hugo Boss or others. Some Zara
stores might be very premium whereas others will be very much affordable. But mostly Zara has
a premium pricing strategy. The pricing is made possible by optimizing development and training
costs.
Promotions in the marketing mix of Zara:

Zara has a unique marketing policy of “Zero investment in marketing”. Instead, the company uses
the money it would have used to advertise in opening new stores. The striking thing about Zara is
that it has found differences that matter to the consumers and used that to differentiate itself from
the rest of the competition.
In essence, the company relies heavily on the word of mouth advertising more than anything else
does. The products target population in age group 18-40 that live in the cities. This is because; this
group is the most fashion conscious, more than any other group. Specifically, the market
segment comprises of women (65%), men (25%) and children (15%) all of them being fashion
conscious, educated and fall in the middle class category.
Small and regular product shipments are designed to keep the inventory scarce and fresh;
compelling customers to buy urgently and frequently visit the store to check what is new. Bar
coding, online shopping and computer, aided purchases are all measures designed to increase sales
and make it a global brand.

Place in the marketing mix of Zara:

Zara is very unique and one of the things that make it a stand out brand is the fact that it is a
vertically integrated retailer. What this means is that it designs, manufactures and distributes the
products itself. This approach seems to be working for it because it has managed to establish itself
as one of the leading Spanish fashion stores globally. Zara is present in over 30 different countries
including India and its expansion is ongoing.

In fact, 90% of Zara stores are owned by the company and the rest are joint ventures of franchises.

Physical Evidence: Physical evidence is the image of the service and product provided to the
customers. When customers purchase a product or service they must have physical evidence that
the transaction has taken place for example receipts.
As stated Inditex “Inditex makes now 840 million garments a year and has its stores in more than 85
countries.
Zara exterior design mirrors very similar. Now there are 8500 stores in Europe and 2000 in Spain
alone.

What are the 7 p's and how does ASOS use the 7 p's?

Marketing mix is different factors that a business uses to help meet its marketing objective which
will therefore allow the business to provide their product or service to the market. There are seven
main factors which are known as the 7 P’s, these are product, price, place, promotion, people,
process and physical evidence.

Product: Products are the goods or service that the business is providing to attract their customers.
Businesses will have to ensure that they can provide a wide choice to there customers. There are
also other factors that the business will have to think about like branding, packaging, quality and
many other things.

At ASOS they sell a wide range of branded products which are similar to what has been seen on
celebrities. They sell clothes for men and women and this includes items like footwear, coats, shirts
and several others. Although ASOS as operating from online they sell similar products to what can be
found in high street stores however they still sell high quality products at low affordable prices.
Some of the brands that are sold at ASOS include Calvin Klein, Karen Millen, Nike

Price: Price is the amount of money that a customer will have to pay to the business for the service
and products they have received. Businesses will have to ensure that the price they charge their
customers is a reasonable price so both the customers and the businesses are happy.

At ASOS they have a reasonable pricing strategy, however some of their products are expensive. The
price depends on what sort of product that the customer is purchasing. Currently 7% of the users
make a purchase with an average basket size of £39.32 to £48.80. At ASOS they have regular sales
when the products are reduced by 50% or more and these products are sold in the ASOS outlet
section of the website. Below is a print screen of the outlet section of the website:

Place:
Place is where & how the customers can use the service that is provided by the business. The
business will have to ensure that they are in the right location & will have to consider things like
distribution channels, they will have to ensure that a wide range of customers have easy access to
the business, market coverage & many other things.

ASOS are a click this means that they provide the goods through the internet only. This means that
there will be no stores for the customers to visit and they will have to log onto the website to look at
the products and to purchase them. ASOS.com delivers their products to customers all over the UK
and there is a delivery charge for this, however in some occasions the delivery charge is not applied

Promotion:
Promotion is the way that a business promotes itself to make the customers aware about what
products and services they are providing. There are many methods of promotion these include,
advertising, promotion, public relations, personal selling and many more.
ASOS.com attract customers by always having a range of promotions like discount codes. They also
advertise by promoting the business may by sending registered customers with emails regularly with
information about new products and sales. The main method of promotion is their website. It
includes information and images of the products. ASOS also advertise on social networking websites
as well like Face book and Twitter. On these websites, ASOS have created an account which
customers are able to join and by doing this they will be regularly updated about new products and
fashion trends.
People: People are the employees that work for the business, without the employees the business
will find it difficult to operate as they complete the day to day running tasks. The employees
represent the business and must ensure that they provide good customer service as it will help to
promote and the sell the product or service. Click businesses have fewer employees in comparison
to brick and hybrid businesses this is because all the business transaction takes place online and only
a few employees are needed to deal with the customer service area of the business for example
dealing with customer's enquiry. This is an advantage for businesses as it is a reduction in their
expenditure.
At ASOS the way that the employees provide customer service is different to what is provided in
stores. This is because it is not face to face it will either be through the phone or email. These
employees will have different skills and they will be required to deal with any problems that the
customers have and may also be required to work in the warehouse and make sure that the right
goods are sent out. ASOS will also have employees that have good web designing and marketing
skills they will be in charge of monitoring and controlling the website. ASOS only had 47 employees
in the beginning and now they are employing 250 people.
Process: It is the procedure that takes place when the customer is interested in a product or service
to when the customer completes a transaction. A business must consider the following things in
their process: procedures, controls, availability, information flows, expenses, booking, speed and
time of delivery.
At ASOS the shopping process is different in comparison to shopping at a high street store. This is
because the customers are not able to feel or try on the product, they are only able to view the
images that have been placed on the website. Then the customer will have to wait to receive their
goods via post. The customers will not receive face to face customer service and if they need help
they can leave feedback or look at the FAQ section of the website, this is therefore a different
process to what would take place in stores.
Physical Evidence: Physical evidence is the image of the service and product provided to the
customers. When customers purchase a product or service they must have physical evidence that
the transaction has taken place for example receipts. The physical evidence will also include things
that represent the business like facilities e.g. building and layout.
ASOS are a click business which means that the operate from the internet and there is no store for
the customers to visit, therefore there is no physical evidence. The physical evidence that the
customers will have is the receipt that they receive with the products that they ordered. At ASOS
there main concern will be the appearance of the website, they will want to ensure that it is easy
and convenient to use and it is regularly updated.
TASK3

Construct a well thought out, and justified strategic marketing plan for Zara Inc. for its
international expansion into Pakistan.

Marketing Planning Process:

The marketing planning process is a systematic approach for


developing marketing goals, strategy and implementation tactics.


Zara’s International Expansion in Pakistan

Mission statement:

To make Zara one of the most popular and demanding brand of the country.
“ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously
innovate our business to improve your experience. We promise to provide new designs made from
quality materials that are affordable”

Target Audience:
The target audience of Zara includes middle class and high class audience. Zara produces clothes
shoes bags watches for both male and female. Zara has been producing clothes for all type of ages.

Measurable Goals:
Zara should concentrate and make goals according to its target audience. It should make a goal to
cover 80% of the young generation. Zara should promote its brand in the high class shopping malls
and departmental Stores EG Jalal sons, mall 1, PACKAGES MALL

Develop Budget:
To operate a business budget is an essential factor which helps a business know about its total
expenditures and cost. Zara should make a fix marketing, advertising ,promotional budget which will
help the company know about his total investment required for their expansion.

Product development;
Zara should make product according to the Pakistani market and should include all the factors
regarding the product which includes quality, design, weather, styles and occasions.

Pricing:
Pricing is one of the most major factor for marketing plan. Pricing should be done according to the
target audience. Zara should price its clothing according to its customers as Zara has major
customers from the upper middle class and upper class so the pricing should be set according to
them

Promotion:
Promotion refers to making deals and packages. For promotion Zara should make small promotions
which may entertain its consumers accordingly. Zara should make small deals like a set of shoes,
watch and shirt in a reasonable price so the customers rush towards the brand. Zara should promote
its brand on every mean of media which includes social electronic digital and print media.

Place and distribution:


Place is a very important factor. Zara should open all of its retail stores in major cities of Pakistan.
These stores should be in the urban and commercial area of the city. Where people come for
shopping. Like the most famous and popular shopping centres of the city for example packages Mall
in Lahore
Centaurus mall in Islamabad
Dolmen Mall in Karachi

Distribution:
Distribution channel can affect the brand drastically. Zara should use good distributing channels
which will help the brand. Zara should give its distribution to the major stores in Pakistan which
includes Al Fatah- Hyperstar.

SWOT ANALYSIS OF ZARA FOR EXPANSION IN PAKISTAN:

Strengths:

Unique designs: One of the first and foremost advantages of Zara lies in its design abilities. Zara should
produce new designs according to summer and winters, Zara is concentrating on summer designs
more rather than winter designs. This is because Zara is currently working in Indian market so they
have the ability to face Pakistani market.

Brand value: Zara stands at number 53 by Forbes in its brand ranking. There are many upbeat points
leading to the excellent brand equity of Zara. The consistent quality and the Performance over the
years has provided has given a boost to the brand in recent years. Besides this, the brand has stayed
away from disagreements and tried to stay humble even when it came across them. Such a healthy
culture has resulted in the brand being loved by its consumers over and over again.

Weaknesses:

Generalised collection: Zara does not differentiate its product line according to the cultures it has
same product line in every country. Therefore, to penetrate in Pakistani market they need to
produce eastern clothing.

Low safety stock: A regret which Zara stores have is that stocks which are fast selling rarely have a
safety feature behind it. Low inventory is kept at Zara as a strategy to keep customers walking into
the stores to check out the latest items. But it also means that if a particular design is a hit with the
customers, it won’t reach its potential because there is no safety stock or buffer for this design.

Opportunities:

Growing market potential – ‘Zara’ the brand is becoming more and more popular, thereby resulting
in growing market potential. A rise in earning potential of consumers results in rise in demand for
status symbols.

Online E-commerce: Zara can definitely take advantage of the online buying trend and make its
clothes available not only in its own stores but also on other E-commerce stores as well thereby
bringing a hike in sale.

Zara stores are located in 77 countries and are lot of opportunities to invest and expanding the
market as in India and China. Albania is a nice opportunity for the company to open stores because
people like high fashion brands. New location and stores offer the company opportunities to exploit
market development. Grow into new markets/consumer segments.
Threats: The biggest threats are its competitors as outfitters, breakout and Benetton and new
entries in market that want to recapitalize their profits in new markets as Albanian. Rising
production cost because of labour and raw materials. As economic crisis is striking back costumers
are trended to spend less. Imitation of company’s logo by people that do not have permission to use
it

Further threats:

Low advertising – Zara needs to ask this question to itself. Looking back, will Zara think that it made
a mistake by not advertising its unique brand proposition from the start. The way that Zara keeps
rotating design, it can rope in a lot more consumers if it advertises the fact that you will get the
latest in designs from Zara.

Competition – Zara is not the only one which is known for its chic design outfitters, breakout and
Mango are also loved for its design. But the advantage to Zara is that the other brands are quite
costly and does not provide that quality when compared to Zara whereas Zara gives much better
designs at affordable prices

Zara PESTLE Analysis

Political Environment:
If Pakistan provides Zara with tax free routes and should give them some benefits if they come to
the Pakistani market. Zara should be given a complete copyright claim and if its copies are being
produced anywhere in the country.

ECONOMIC:

As the Pakistani market is unstable nowadays and is going through major financial issues but there
are many ongoing projects on which the Pakistani government is working including the CPEC
corridor which may provide various opportunities for traders so ZARA has a good option to launch its
brand in the Pakistani market.

Affordable pricing technique helps fight off some of the effects of low economic activity. As the
world has been suffering from complex web of low economic activity.

Social Environment:
The increasing need by consumers to shop online due to its advantages like ability to shop 24/7,
ability to compare prices and lack of associated transportation costs has forced Zara to open
multiple online shops. The social environment in the country is pretty good people prefer to shop
online. Many other online facilities are being utilized nowadays by the people of Pakistan.
Technological environment:
In Pakistan the technology is boosting and is on its urge people prefer more technological options in
their business Use of data has reached to an extraordinary level. Every business has been affected
from technology from manufacturing to marketing every business needs technological
advancements to compete the modern market. Every business needs data to make important
decisions as per aspects, ZARA is being called as the most disruptive new name in the fashion
industry this is because ZARA has been mindful at utilizing the power of technology to its profit in
the 21st century technology has disrupted every market equation like never ever before.
Environmental:
The business environment in the country is a little bit unstable nowadays but no matter what type of
situation is going people still have time to buy and want to buy clothes. Zara will surely boost during
the Religious festivals etc.

Legal: When working in Pakistan Zara should take care of the legal issues including taxes, duty and
other overheads.
Zara should take care that they do not promote child labour at any cost. This is because government
of Pakistan has a very strict environment regarding the child labour

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