Introduction to Marketing

This report provides an overview of marketing and its importance in business. It discusses the current marketing strategies used by Tesco, a leading British retail company, and its position in the market. The report also explores the STP model of marketing and two sets of market segmentation used by Tesco.

INTRODUCTION TO
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of organisation............................................................................................................3
Current marketing strategies........................................................................................................4
Current position in the market.....................................................................................................5
STP model...................................................................................................................................6
Two sets of segmentation............................................................................................................6
Buyers behaviour.........................................................................................................................8
Chosen marketing strategies........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is one of the key functions of different companies and business. Basically,
marketing is the only way to different companies for promoting their services and products at the
very large scale in the market. Currently many of businesses within the market are trying to
make their functions more and more effective, because currently those businesses are gaining
very excellent revenue within the market which has an effective marketing function. There are a
company can’t easily gain effective outcomes without using different strategies of marketing,
this is the main reason that currently top-level management within lots of businesses are putting
their great efforts towards developing different productive marketing strategies. This report
discusses marketing function of Tesco. The Tesco is basically a leading British retail company
that currently operates own business operations within lots of countries. Current marketing
strategy and position also has been discussed in this report. The STP model of marketing also has
been used in this model for identifying two sets of market segmentation of Tesco in this report.
MAIN BODY
Overview of organisation
Tesco is one of the leading British retail companies, headquartered in Welwyn Garden
City, England, United Kingdom. Currently this retail company has the workforce of 450,000
effective employees (Stewart, 2019). The company was founded by Jack Cohen in the year 1919,
so that from establishment to date, Tesco continuously expands its business operations by
entering many countries. According to officials of Tesco, currently this retail company serves in
total 100 countries, in which expanding own business operations within these numbers of
countries is not a small task to a retail company, but Tesco has succeeded to do this. In last year,
Tesco was generated revenue of £63.911 billion with £1.320 billion net income, so that current
performance of this company is really excellent.
Top-level management of this company is efficient to run it’s all business operations on
the progressive path. There are HRM, marketing, finance, IT and production departments of
company are giving their great contribution in always improving performance of this company
within the market. According to top-level management of Tesco, marketing is the one of main

function to company, without this function this company will be not able to generate huge profit
within the global retail industry. Currently company uses different marketing strategies within its
workplace which enable to Tesco for effectively attracting large number of customers towards
own brand. In this situation, some marketing strategies has been discussed below which uses by
Tesco’s marketing department or team.
Current marketing strategies
Tesco is a very big retail organisation, so that it has always required to use bundle of
marketing strategies to gain excellent results within the market, so that some marketing strategies
of this company has been mentioned below;
Digital marketing: This is one of the latest and modern marketing strategies which has used by
marketing team of the company (Nandini, 2016). Currently this strategy of marketing uses by
many competitors of Tesco also for gaining excellent results. This strategy of marketing is very
efficient in the terms of gaining huge profit in this dynamic world, because currently every
person uses different digital tools and gadgets in their personal life. So that, marketing team of
Tesco easily run its various marketing campaigns through these digital tools. There are social
media marketing is also the part of digital marketing strategy, in which marketing team of
company is taking lots of advantages through social media marketing as well. Basically, most
people within the market are using different social media platforms, like; Twitter, Instagram and
Facebook, in which company show its different photo and video ads through these social media
platforms to different customers. By viewing these video and photo ads of Tesco, many of
people within the market get influenced to buy products and services through this company.
Television advertising: This is another key marketing strategy that uses by marketing team of
company within its business environment. Television advertising is generally very costly for any
company but it is one of the most productive marketing strategies. Basically, Tesco is a big retail
company, so that this company can easily afford television advertising marketing strategy. On
the other side, marketing team of company run its different advertising campaign on that time on
television, when any popular TV show or programme is telecasting. Reason is, most people has
always seated on the front of TV when any popular TV show is telecasting. Finance department
of company has always required to arrange a specific fund for its marketing team to just run
television advertisement (Valenzuela-Fernández and Peñaloza-Briones, 2019). According to top-

level management of this retail company, Tesco enable to attract thousands of new customers
towards its stores and supermarket by running different advertising campaigns on the television.
Porter’s generic strategies: There are porter’s generic strategies of marketing also has used by the
marketing department of the company. There are porter’s generic strategies are generally a set of
strategies which give opportunity to a company for gaining excellent return in the market. The
first strategy in the porter’s generic strategy is cost leadership, in which upper management of
this company has required to provide its different products and services to people on very
favourable prices. By proving own products and services on favourable price, this company will
be able to lead cost within the market. On the other side, differentiation is the next strategy after
cost leadership, in which this marketing strategy influence to company for producing some
exclusive and different range of products and services (Hult and Ketchen, 2017). This strategy
will defienetly support to this company, because an exclusive product always attracts lots of
people within the market. Lastly two major strategies also have involved in porter’s generic
marketing strategies named; cost focus and differentiation focus, so that the marketing team at
Tesco has considered these strategies of marketing as well.
These all are some key marketing strategies which has followed and used by the
marketing department of Tesco. With the support of these all strategies, this company is able to
generate huge profit margins at the international level.
Current position in the market
Tesco is very highly reputed brand within the international retail industry. Different
marketing strategies effectively contributes in all over growth of this company. Currently Tesco
is the only company within the United Kingdom which has an excellent and strongest
distribution channel. With the support of this distribution channel this company is able to easily
deliver its different newly manufactured products in its various stores and supermarkets. On the
other side, most of people like this company just because of its one more attribute called;
excellent product quality (Vinerean, 2017). Basically, existing management of this retail
company believes in providing quality products and services to customers. That’s why marketing
manager of this company always like to run various informative ads on different platforms. In
these informative ads, this marketing team try to aware customers about its quality products and
services.

STP model
STP model is very beneficial to different companies and businesses within the market,
because this model gives great opportunity to a company to gain excellent return in the market.
Basically, this model has been used here just because of analysing two sets of market
segmentation of Tesco. On the basis of these two sets of market segmentation this retail company
can easily target its different customers within the selected market. There are mainly three stages
includes within the STP model which has been discussed below;
Segmentation: This is the first stage in the STP model where upper management of this
company has required to divide its whole large market into small sets of market segments
(Iglesias, Ind and Alfaro, 2017). Basically, when company divide its large market into small sets
of market segments, then it will be able to target its different customers on the basis of various
these segments. Tesco can divide the market on the basis of different sets of marketing called;
demographical segment, psychological segment and geographical segment. At the end, this
company will be able to gain huge profit on the basis of these key factors.
Targeting: Targeting is the second stage within the STP model where marketing management of
this company has required to target different customers on the basis of two key sets of market
segments. The marketing team has required to run such marketing campaigns within different
sets of market segments which can attracts lots of customers towards own brand.
Positioning: This is the last stage within the model of STP, in which existing marketing team of
company need to make its distribution channel too effective for delivering its different products
and services to its many of customers within the market (Kumar, 2017). On the other side,
Tesco’s marketing team has to attract lots of customers towards own brand also by using various
appropriate marketing strategies.
Two sets of segmentation
Segmentation is a process that involves identifying the potential customers for different
products and services offer by company. Tesco Company can follow the following segmentation
strategies for achieving its overall sales targets.
Demographic segmentation

Demographic segmentation strategy involves conducting market segmentation on the
basis of age, gender, income, occupation, marital status, social class, religion and education. All
this bases will provide a wide range of customers that can be targeted in different marketing
strategies Tesco Company can channelize (Kasemsap, 2018). Company product range is wide
and diversified tat offers different products for all this social backgrounds. Demographic
segmentation will allow company to expand its market strategies in more strategic direction. This
will cover all kinds of potential customers for different products offer by Tesco Company. The
organisation offers different retail products out of the best quality at the best prices that involve
affordability, preciseness and many other elements. Demographic segment would strategise
marketing campaigns of Tesco Company in such a way that it will be able to cover up all
different potential customers in the market.
Psychographics segmentation
Psychographics segmentation is another key segmentation strategy company can adopt to
enhance the capabilities of the marketing campaigns launch by Tesco Company. This
segmentation strategy comprises with different elements like interests, social status, personality
type, attitude, opinions and values of people in society (Eneizan, 2016). All these backgrounds
would allow Tesco Company to drive the marketing campaigns and strategies of company in
more strategic way. All these social bases would allow company o entertain every potential
customer base that can allow some kind of business to Tesco Company. All these segmentation
strategic tool could allow company to attract different customer group based on the dimensions
of retail sector for meeting up the objectives of the company.
The above mentioned points have projected the most suitable segmentation strategies
company can adopt to achieve all its business objectives. As the company deals in different retail
products such as food, clothing line and different home products. Both the segmentation bases
will allow company to attract the maximum number of potential customers for different product
segment offer by Tesco Company (Sarker and Ashrafi, 2018). Segmentation is a critical process
as it drives the direction of company’s marketing campaigns. The both segmentation strategies
would cover all different types of potential customers in market for different products offer by
Tesco Company. The above segmentation strategy would allow Tesco Company to not only
sustain its existing customer base along with it will allow the company to entertain new potential

customer group. It is important for the company to attract new potential customer group for its
products to enhance the market sale and growth opportunities available in market for company.
Market share is a critical driver that suggests how well the products offer by company have been
perceived by the target customers base. The above mentioned segmentation would allow
company to focus on such customer group that can deliver the business outcome out of the
company’s marketing strategies.
Buyers behaviour
Buyer behaviour is a process involves behaviour and mindset of the purchaser of
company’s products. This is more like an attitude, beliefs, and values of customers that attract
him towards buying the products offer by company. The behaviour of buyers is based on two
fundamental factors one is quality of product and the other one is prices of the products. Bother
the elements are among the primary factor that influences the buying decision making of
customers in market. Product choices are another crucial element that supports the buying
decision making of company. In case of retail sector due to immense growth options and product
demand the competition is vary aggressive between all top level brands along with small
companies associated with the sector. Knowledge is another fundamental that attract the
customers attitude while buying any products of Tesco Company (Fernandes and et.al., 2018).
All these factors impact over the purchase decision making of customers in market. It is more
crucial for the Tesco Company to attract and consider all the elements involve in customer
behaviour while making the purchase decision related to any product offer by Tesco Company so
that marketing campaign of company can potentially influence the behaviour of customers to
motivate him towards buying company’s products.
Chosen marketing strategies
Marketing strategies are the activities undertaken by company on the name of marketing
campaign. Following strategies are chosen for the upcoming marketing campaign of Tesco
Company based on the above research towards different elements involve in the success of
company’s marketing campaign.
Digital promotion: Tesco Company can channelize digital marketing promotions for its
products. This is a strategic choice that involves promoting company’s products at various digital
channels and networks like Amazon Prime, Youtube Prime and various other digital channels

and networks. Digital promotion is a key strategic option available for company for channelizing
its marketing and promotion activities (Wang and McCarthy, 2020). This marketing strategy
would support company in attracting millions of potential customers active over these networks
all across the globe. Most of the youth generation are active over these channels and networks as
these network project different shows based on the interest of young people all across the globe.
This marketing strategy would support company in enhancing the brand value of company in
market. Digital marketing is a modern marketing strategy that will support company in polishing
the brand image of company in modern way. This strategy will also support both the
segmentation strategic choices of the Tesco Company.
Social media marketing: Social media marketing is another strategic approach to channelize the
marketing campaign of Tesco Company. This is an important strategic choice available for Tesco
Company. In this strategic choice marketing team of Tesco Company will publish the
promotional videos of company at different social media networks like Instagram, Facebook,
Twitter and many other applications like gaming applications. This is an important strategic
option available for the Tesco Company to channelize the brand promotion. Social media is a
new way to interact with all the friends and family and along with it also give access to the
entertainment part to the social media users. With the support of social media marketing
company will be able to approach millions of potential customers for different products offer by
Tesco Company. In case the promotion video of company get viral than it will also boost the
brand value of company across the globe (Sigarev and et.al., 2018). Social media marketing is a
cheaper technique to conduct the marketing campaign of company. This will allow attracting all
the key customer segment company is aiming to target for its marketing activities. This strategy
is more similar to the digital marketing strategy of company the only difference is off the
medium to promote company’s products. Here company will target the all social media users.
Over different social media handles all age group of people are active and this strategy would
allow company to target all age group people that can potentially buy the products offer by Tesco
Company.
Email marketing: Marketing team of Tesco Company has another strategic option to promote
company’s products is call as email marketing. In this strategy company will target customers of
company with the support of email. In this strategy marketing team provide specific offers for

the customer ot place order with the support of some coupons and other gift cards (Joseph and
et.al.,2017). This is an impressive marketing strategy that wills directly increase the sales of
company. In this strategy company sale the producers of company at the rate lower than the
market rate of products so that customers can take interest in the deal offer by Tesco Company.
These strategies also allow company to offer products in bulk. Like buy two get one free kinds of
offer company give in these schemes to attract customers. This is also a modern way to approach
customers of company.
Search engine optimisation: Search engine optimisation is another strategic choice available for
the Tesco Company. In this choice company influence the searches over internet. Marketing
team would influence the ratting of different products offer by Tesco Company to engage the
buying decision making of customers of company. Internet is a huge medium to sale company’s
products. This strategy would support company directly in increasing the brad value of company
at global level. This strategy allows company to gain the trust of customers towards the products
offer by company.
The above mentioned strategies are the strategic choices available with the Tesco
Company. All these strategies would support company in achieving all its business objectives.
CONCLUSION
Marketing is an activity involves promoting company’s products and services in market.
Different promotional channels can be use like social media, digital mediums, search engine and
emails to promote company’s products. All these mediums would allow company to engage with
potential number of buyers of company’s products. Different segmentation strategies like
demographic and psychographic segmentation can be use to engage with potential level of
customers available in market. Marketing is an important process that allows company to
influence the decision making of customers in market. All the strategies can allow company to
achieve all different objectives of business.

REFERENCES
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