Marketing Management: Strategies and Tactics for Tesco

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Analysing STP strategy...............................................................................................................3
Marketing mix.............................................................................................................................5
Relationship marketing strategy with an emphasis on current tactics.........................................7
Recommendations to improve marketing strategy......................................................................8
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................11

INTRODUCTION
Marketing management performs all the managerial function and activities in the area of
marketing of an organisation. They identify all the market opportunities where they can apply
various strategies for increasing the profitability. Marketing is refers to the promotion of
products and services for increasing the profitability of the organisation whereas management is
the process of getting things done in an effective manner for achieving the goals and objectives
of the organisation. Tesco is taken as base company. Tesco is a multinational groceries and
merchandise retailer which is found by Jack Cohen in1919. Its headquarter is in London, UK
which specials in selling of cloths, home products, food products and many more. They have
more than 7000 stores across the globe and more than 4,50,000 employees under them with
catering different of markets. Tesco also provide services such as financial services, electronics
and so on with their own brands namely as Tesco Banks, Tesco Mobile, Tesco Family Dining
Ltd and many more. In this report, it includes the analysis of segmentation, targeting and
positioning that are applied by an organisation for creating and developing their brand image in
the market. In addition to this, it also includes marketing mix which helps in creating awareness
about the different products and services offered by an organisation. It includes 7 Ps of
marketing mix in which the first 4 Ps are for product focused and remaining 3 Ps are focused on
the services provided by the organisation. Furthermore, the relationship marketing strategies for
the organisation which emphasis on current tactics is explained. And at last, recommendation for
improving the marketing strategies is included. In context to the selected company, analysis of
stp is mentioned below-
Analysing STP strategy
STP is an acronym for segmentation, targeting and positioning which is a three step
model that helps in communicating the products and services in the market (Balducci and
Marinova, 2018). It focused more on audience rather than product focused. This model is used to
segment the market, target the customer with the help of market campaigns and then positioning
themselves in the market according to the needs and expectation. In context to the selected
company, analysis of stp is considered to be the most effective as it allows for breaking the
customer into smaller groups which helps in creating and developing marketing strategies in

which the organisation can easily target and positioned its self in the market and they are
mentioned below-
Segmentation:
Segmentation refers to the division of audience into various small groups so that
communication can be done for the product about the relevant information and details. In
reference to the selected organisation, they try to separate the group of people with their
requirements and believe that they will act quickly in order to purchase t6he commodities.
Segmentation can be divided into demographic, geographic and behavioural and they are
explained below-
Demographic: In context to Tesco, they categories their customers according to different
factors such as gender, age, education and so on. They distribute loyalty card members which
help them in collecting the profile of their customers and market their products and services
accordingly and also help in developing different marketing strategies (Dixit, 2020).
Geographical: Tesco is catering wide area for marketing such as having more than 7000
stores across the globe. They are also providing halal meat for their Muslim customers
keep in mind the values and beliefs of them. In addition to this, they have also launched
their own labelled halal meet for the same.
Behavioural: Behavioural segmentation means dividing the market on the basis of
attitude, knowledge, loyalty and more. Tesco have the pricing strategy which the
products are available on cheaper prices which makes the customer loyal them and they
also make sure that all products are available of customer according to their taste and
preferences.
Targeting:
Targeting is the process of evaluating the different segments and make sure which
segment is best to targe. Tesco target their customers on the basis of various segment such as size
of the market, the profitability to the company by searching the potential customer who can
spend on their products and services and the reachability of the organisation to the customers
(Dobscha, 2019). They also create different tag line associated with different products such
organic, healthy living, value and many more which attracts the customers. Furthermore, Tesco
also provides financial services and technological products which leads customer to stop and
shop all the products from their stores.