Role of Marketing in Creating Value for Customers

This essay discusses the role of marketing in creating value for customers and the importance of stakeholder engagement in the context of Tesco. It explores the marketing mix of Tesco and highlights the various aspects of marketing that contribute to customer value. The essay also emphasizes the significance of stakeholder engagement in achieving business objectives.

Essay

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Role of marketing in creating value for customers ....................................................................3
Stakeholders engagement............................................................................................................7
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is defined as the activities which are associated with creating, communicating
and delivering offerings to the customer by which value is being rendered to the organisation.
With the help of marketing goods and services are promoted at marketplace so that to get higher
sales and profit as well. In another words this can be said that marketing is regarded as the
discipline which are undertaken by an organisation so that to manage relationship with customers
and to acquire higher interest of them as well (Rust, 2019). Marketing is associated with wide
role for customer as it leads in enhancing value for the customer in appropriate manner. This
report is prepared in order to understand various concepts of marketing and stakeholders in the
background of Tesco. Tesco is a British multinational retailer which is headquartered in UK. The
company is having global presence in marketplace and they are continuously trying to expand
their market size. Tesco is holding 9th position in the world in terms of revenues and the third
largest in gross revenue. The report includes marketing theory which is used by Tesco in order to
grow in the market and along with stakeholders interest is also included so that to draw
prominent role of them in organisational success.
MAIN BODY
Role of marketing in creating value for customers
Marketing is defined as the procedure in which message associated with product and
services are communicated to final customers. Marketing is an important concept in which
attention of target audience is received by which objectives of the organisation can be attained in
effective manner. The significant role of marketing is to create value for customers by which
message associated with product and services can be rendered to customers in direct way which
may lead the business to align their business goals with their efforts. In the context of Tesco as
the company is dealing in retail industry, so this is imperative for them that they adopt prominent
marketing strategies so that to make path for their goals attainment and enhancing market image
as well.
The major objective of marketing is to create value of goods and service to customer due
to which businesses are focused on providing proper information to customer in such a way that
business targets can be attained (Teo, Leng and Phua, 2019). Marketing is providing additional
benefits to customer in order to add value to them, some of the aspects are elaborated as under:

Providing education
Marketing is highly focused on elaborating features and benefits of the new product so as
to undertake needs of their customers. All the products and services when they are launched in
the market they have some unique characteristics and advantages which are required to be
communicated so that to make their customer aware and communicate them regarding benefits
of launched product and services. In the context of Tesco as the company is trying to intensify
their market share and to manage goodwill as well (De Mooij, 2019). When Tesco is planning to
launch new product range in their portfolio, marketing is the aspect which is highly beneficial for
them. Besides this by conducing appropriate marketing customer can be informed regarding the
same which may enhance their market share and customer repetition.
Creation of needs
Creation of need is the primal to initiate marketing activities so for conducting marketing
activities this is imperative that needs are created in such a way that business objectives can be
attained. By adopting proper marketing activities needs can be created in a way that business
offerings can be aligned to those needs so that to receive appropriate sufficiency. For Tesco, the
major functions of marketing is associated with creation of marketing needs, as when new
product is launched this is innovative in nature so for enhancing its sales, needs are required to
be created so that ultimate objectives can be attained. This way Tesco can add value to their
customer base and deal with complexities in appropriate manner.
Reaching for target market
Marketing is the activities through which an organisation may reach out to target market
in order to obtain high end opportunities for market success. The role of marketing is to decide
target market so that potential customers can be identified and they can be targetted in
appropriate way in order to attain prominence. Target market is one of the specific aspect which
is essential for accomplishing business objectives and to attain success within market. In the
context of Tesco when the company is planning to open up new retail store in this case target
market keeps high power in business success and customer recall. So by this Tesco can intensify
value to their customer in which they can acquire higher market size (Ketter, 2018).
Loyalty programs
Loyalty programs are helpful in order to attract customers for making more purchase and
positive buying decision as well. Loyalty programs are one aspect of marketing activities in

which lowered prices are being offered by the business in order to attract higher customer range.
Loyalty programs are playing essential role for the business to deal with their problem of
decreased sales and lesser profits. For Tesco the company is keeping loyalty programs for their
regular customer in order to give them higher value and enhance their probability as well. In this
regard the major concern of Tesco is to attain customer recall value so that they may stay
adhered to business offerings of the company (Hörner, 2019).
Accumulation of feedbacks
In current time marketing activities include after sales services as these are helpful in
providing customer satisfaction. In other terms this can be said that in emerging marketing
activities this is imperative that they include customer feedbacks so that to attain customer
satisfaction in ultimate manner. In the context of Tesco as the company is executing efforts in
order to obtain with high customer satisfaction so for this they are taking feedbacks from their
customer so that to acquire their attention and provide them higher value as well.
In the context of marketing there are varied principles which is associated, these are
helping the business to take decision regarding various aspects in order to understand marketing
trends and tactics which can be used so as to acquire market prominence. Marketing mix is one
of the essential tool which can be used by Tesco in order to provide value to their business and to
grab their attention.
Marketing mix of Tesco
Marketing mix is defined as set of marketing tools which are used by businesses in order
to attain their marketing objectives within target market. This tool can be used by Tesco in order
to render value to their customers and to take decisions in broad manner. This concept is
associated with 7 aspects which are necessary for an organisation to undertake. In the
background of Tesco, marketing mix is elaborated as under:
Product
Tesco is retailing numerous variety of product in which food, clothing, stationary,
electronics, cosmetics and financial services are included. Tesco is taking care of various needs
of their customers in which they are selling products from almost all the brands. The company is
catering all the needs of their customers by researching the same and determining their target
market. Tesco is manufacturing their own products too which is giving high value to their
customer by which they can grab customer engagement and their satisfaction as well. Tesco is

emphasised on providing enhance quality goods to their customer by making prominent
marketing strategies so that the company can establish themselves as a leading brand within
marketplace (Martínez-López and et. al., 2018).
Price
Price is defined as the money which is being taken by the organisation in lieu of product
or services from customers. Tesco is using cost leadership strategies in order to make robust
portfolio of their customer. The company is not willing to face any compromise from their
customer so they are highly emphasised on maintaining their quality and in this manner their
prices are also not fluctuating . This is the major reason that Tesco is pertained with high
customer recall and customer footfall in their stores. Besides this Tesco is facing intense
competition from competitors such as Sainsburry, ALDI and many more. Due to this the
company is trying to maintain pricing of their products so that to deal with market competition in
effective manner.
Place
Tesco is having various stores in global periphery in which they are managing their
business in prominent manner. Tesco has 6800 stores around the globe which are of numerous
types such as esco Express, Tesco Extra, Tesco Metro, Tesco Compact, Tesco Homeplus and
Tesco Superstore. Their online store is named as Tesco direct in which the company is trying to
provide all their products to customer in appropriate manner so as to provide them benefits. This
is the way that the company is adding value to their customer and sustaining them for longer
duration.
Promotion
Promotions are defined as those actions which are undertaken so that to promote sales
and enhance profitability as well. Tesco is associated with high brand image due to which high
assistance is received by the company in their promotional activities. The company uses
television advertisement, newspaper and other media so that to deliver their message to
customers. Besides this Tesco provides various discount scheme so that to attract customers in
better way. Loyalty card is being distributed by the company to their loyal customer in order to
provide them additional value and to lead the market in better way.
People

People is defined as associated employees which are working in an organisation in order
to provide high prominence to the business. Tesco is managing 460000 employees in their
organisation within global periphery and they are playing essential role in succession of the
company in global market. Tesco is investing huge money on their employees for their training
and development programs due to which their employees are facing all the business complexities
in appropriate manner. Employees are providing their huge contribution in order to add value to
customer of Tesco as they are working hard so that to provide customer satisfaction by satisfying
needs of their customers (Chaffey and et. al., 2020).
Process
Process are defined as the procedure adopted by the business in order to deliver product
and services to customer in appropriate manner. Tesco is having online and offline stores by
which they are delivering products to customer and gripping over their business objectives.
These processes are providing additional edge to the customer regarding understanding needs of
their customer and fulfilling the same. Besides this Tesco is using self service system in their
stores due to which easy check out systems are being inhaled by them and this is helpful in
rendering higher value to customers.
Physical evidence
Physical evidence is defined as the representation of the business which is associated
with tangibles and intangibles. Tesco is keeping their products within the store in approachable
manner so that it can be seen by customers and helps them in making their buying decision. This
could lead Tesco in managing their customer in such a way that they are providing higher value
to them so that they can be aligned to products and services of Tesco.
Stakeholders engagement
Stakeholders are defined as the people and group of people which are having higher
interest within business function. Stakeholders engagement is defined as the concept which is
associated with people those can be impacted with decision of the company. With the help of
BSR’s Five-Step Approach stakeholder engagement can be understood. This is explained as
under:

Engagement strategy
The first step within stakeholder engagement is associated with setting vision and levels
so that to make prominent strategy of stakeholder engagement. In this regard manager of the
organisation is making robust strategy through which stakeholders can be included in the process
of decision making and the same positive implication can be seen over their engagement. In the
context of Tesco as the company is drive by their employees and customer so for making
prominent strategy this is required that they prepare strategy in order to include their
stakeholders (Salem and et. al., 2018). In order to make marketing strategy customer are putting
high end implication as according to the needs and demands marketing strategies are placed by
Tesco.
Stakeholder mapping

Under this step stakeholders are prioritised in such a way that in the manner they hold
interest in the business. In this manner the company defines a criteria and level up various
stakeholders. This is a crucial step in which businesses are managing their stakeholders in order
to attain prominence and their engagement as well. In the context of Tesco the company is taking
customer and employees on priority basis so that to enhance their engagement and to identify
market trends in appropriate manner. In this manner Tesco can acquire higher contribution of
their customers and employees in their business due to which they can lead to success.
Preparation
Under this step long term goals are targetted by which rules and approaches are decided
by the business in order to implement the same. This is the step in which engagement plan is
prepared in full manner by the organisation so that to acquire fuller engagement of their
stakeholders. This step is prominent for the businesses as by this a plan is prepared and
formulated for attaining goals and objectives as well. For Tesco their employees and customers
are regarded as their assets engagement plan is providing them specific attention to understand
needs and objectives of their various stakeholder so that the same can be fulfilled in shorter
period of time (Kaur and Lodhia, 2018).
Engagement
Under this step contribution of stakeholders are analsyed so that to focus on their
priorities by which risks can be mitigated and high edge prominence can be retained. This step is
providing high edge help to the organisation in order to deal with stakeholders priorities and the
manner from the same can be fulfilled. In the context of Tesco as the company is dealing in retail
store so this is significant for them that they understand needs of their customers and employees
in primal manner in order to meet their level of satisfaction and earn market prominence as well.
Action plan
This step is associated with finding opportunities from taking feedbacks from various
stakeholder so that to take approachable actions and take follow ups for future plans. Under this
a proper plan is prepared by the management in order to enhance stakeholders engagement in
fuller manner. In the context of Tesco the company is dealing in retail store so this is required
that they determine needs of their stakeholder in such a way that this may lead in high
involvement.

Stakeholder engagement is necessary for the business in which effective strategies can be
prepared in order to attain organisational goals in appropriate manner. For every business this is
necessary that they create stakeholder mapping so that aspects can be determined which can be
helpful for the business in order to attain short term and long term goals of the organisation.
There are numerous benefits for Tesco by attaining higher stakeholder engagement and the same
is elaborated as under:
Risk management
Risk management is one of the primal concept for the business and this is required in
order to mitigate risks and to understand by which negative impacts over the business can be
minimised. In order to understand different areas where risk may occur, stakeholder engagement
is required (Venturelli, Cosma and Leopizzi, 2018). This could lead the business to make
effective strategies through which they can deal with market complexities and rigidity as well.
By engagement of various stakeholders prevention of risk can be performed due to which harm
provided to the business can be minimised. In the context of Tesco the company is putting higher
efforts in order to maximise stakeholder engagement so that in this manner they are minimising
risk and mitigating the same by earlier detection.
Accountability
Accountability is defined as understanding of responsibility and by stakeholder
engagement accountability of an organisation can be maximised. On the other hand this creates
transparency within business functions and helps the business to attain goals and objective in
appropriate manner. In order to have full efficacy within business this is required to understand
responsibility in such a way that all the associated parties can be benefited by these activities. In
the context of Tesco the managers and higher authorities of the organisation are putting
prominent efforts in order to intensify stakeholder engagement so that to align business goals
with higher efficacy.
Effective decision making
With the help of higher stakeholder engagement effective decisions can be farmed, as
various stakeholders are associated in decision making which leads in converting the decision
into flexible and effective one (Desai, 2018). In order to frame effective decisions this is
imperative that to include stakeholders so that to grab varied suggestions and improvise business

functions in direct manner. In the context of Tesco the company requires to take prominent
decisions in such a way that they can align their efforts in attaining goals and objectives.
Understanding needs
A business grow in condition where their stakeholders are satisfied and they acquire
major role to acquire market sufficiency. For retail industry customer needs are known as
primary as this industry is driven by customer so by stakeholder engagement needs of customers
can be understood in better way. By taking feedbacks and communicational sessions needs of
consumer as stakeholder can be determined due to which this leads the business to attain success
and intensified market image as well (Civera, De Colle and Casalegno, 2019).
On marketing activities impact of stakeholder engagement is high as these activities are
executed in order to provide benefits to stakeholder. Stakeholders include customers, employee,
shareholder, government, suppliers and many more. So by performing marketing activities
benefits to stakeholders are provided this leads the business to grow and sustain for longer
duration of time.
Government and society
By engagement of government and society legal compliance can be followed by the
organisation due to which any business complexities can be removed. In the background of
Tesco the company is putting high efforts in managing their stakeholder and their interest in
organisational functions due to which at the time of performing marketing activities interest of
customers are undertaken at priority basis due to which societal benefits can be obtained by
marketing campaigns.
Customers
Customers are one of the most influential stakeholder those are providing impact to the
business in direct manner due to which market prominence can be attained. In the context of
Tesco at the time of performing marketing activities the major focus is to target customer. As
according to the needs and demands of customer marketing activities are performed. For a
marketer this is significant that they include customer interest so that to deal with their business
objectives in appropriate manner (Byrne, 2019).
Suppliers
These are the person and parties those are providing raw material and other products to
the business so that to meet needs and requirement of their customers. In this manner Tesco is

required to execute marketing strategy by which their sales get hiked so that may provide
benefits of their suppliers as well in positive manner (Bellucci and et. al., 2019)(.
Shareholder
Shareholders are the real owner for the organisation in which the company is managing
their interest in such a manner that shareholders can be benefited. In the terms of marketing
activities, by positive results from marketing activities shareholders may earn higher returns.
Stakeholders of Tesco are drawing direct impact to marketing activities as their interests
are associated with marketing plans and actions.
CONCLUSION
From the above detailed report this can be analysed that marketing activities are defined
as one of the most essential and significant aspect of the business by which market image can be
improved and knowledge regarding business offerings can be given to customer and users as
well. In this manner for a business this is imperative that they make robust decisions regarding
marketing activities so that to provide benefits in terms of profitability and market image as well.
Besides this stakeholders are defined as all the parties associated to the business in which they
have their interest included in the business activities. So in order to have high business success,
stakeholder engagement is the most essential concept as it leads to generation of goodwill and
market prominence at the same time. Stakeholder engagement is helpful to glorify the business
in such a way that high edge impact is being calculated in terms of profits and sustainability.

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