Effectiveness of Marketing Strategies in Achieving Business Objectives

The assignment content discusses the importance of management abilities, marketing process, and environmental factors in achieving organizational goals and objectives. It highlights the role of segmentation, targeting, and positioning (STP) in achieving success in a competitive business environment. Additionally, it emphasizes the need for effective strategies to develop and sustain a competitive advantage. The report also discusses various micro and macro environmental factors that influence marketing decisions and concludes that pricing and promotional strategies can increase productivity and profitability.

Managing Principles
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elements of marketing process..............................................................................................3
1.2 Costs and benefits of marketing orientation program............................................................3
2.1 Effects of macro and micro environmental factors on marketing decisions..........................4
2.2 Segmentation criteria which can be used for product in different markets...........................5
2.3 Targeting strategy for new product........................................................................................5
2.4 Effect of buyer behavior upon marketing activities in different buying situations...............6
2.5 Positioning strategy for product and services........................................................................6
3.1 Development of product to sustain competitive advantage...................................................7
1 3.2 Distribution arrangement to provide convenience to customers.........................................7
2 3.3 Pricing strategies of Tesco which reflects its objectives and market conditions................8
3 3.4 Integration of promotional activities to achieve marketing objectives...............................8
4 3.5 Extended elements of marketing mix.................................................................................9
TASK 2............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is an act of selling goods and services by satisfying the needs and wants of
customers. Marketing principles such as product, price, place and promotion plays an important
role in the achievement of organizational goals and objectives. For this project report, Tesco is
selected which is one of the largest retailers in UK. This project report depicts the micro and
macro environmental factors which closely affects the marketing decision of company. Besides
this, it also depicts segmentation, targeting and positioning criteria which Tesco uses to sell its
products and services. It indicates the extent to which the marketing activities affect the buying
behavior of individuals. This report also depicts the ways through which company is able to
build and sustain competitive advantage. Extended elements of marketing mix also provide help
to company for achieving success in the dynamic business environment.
TASK 1
1.1 Elements of marketing process
Various elements of marketing process are as follows: Corporate objectives: Corporate objective of Tesco includes mission, vision, strategies
and policies of company. It guides and provides direction to its employees to make their
best efforts which enable company to meet their marketing goals and objectives. Marketing audit: Marketing audit shows detailed statement which contains the marketing
activities of Tesco. Besides this, it also entails the past, present and future actions of
Tesco. It enables company to compare its performance as against to its competitors. Marketing and environmental analysis: Through marketing analysis, Tesco is able to
identify the effect of market growth, trend, cost and pricing structure upon the
profitability of firm. In addition to this, environmental analysis indicates effect of legal,
political and economic factors upon the business operations of organization.
 SWOT analysis: SWOT analysis shows strengths, weaknesses, opportunities and threats
which are present in the business environment. It aids to Tesco to convert its weaknesses
into strengths and to build the competitive advantage.
1.2 Costs and benefits of marketing orientation program
Marketing orientation can be defined as a tool through which Tesco designs and delivers
its product as per the needs, wants and desires of customers. To deliver the products and services
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more effectively and to satisfy the customer needs, Tesco undertakes marketing orientation
program. Company conducts research to identify the needs and desires of customers. For this, the
organization prepares questionnaire and makes a survey to identify the needs and wants of
customers. Besides this, organization also makes use of email id to understand the needs and
wants of customers. It proves to be more beneficial for the organization as it makes contribution
in increasing the productivity and profitability as well as helps the firm in maintaining long term
relationship with the customers. In addition to this, it also imposes high cost in front of company
in terms of marketing research. Customer’s demand and expectations are continuously changing
with the passing time. It is very difficult for Tesco to understand the customer’s needs, wants and
desires in the same manner. If organization succeeds in identifying the customer needs and wants
through market research program, then it provides benefits such as customer satisfaction and
customer loyalty as compared to the cost that is associated with the market orientation program.
2.1 Effects of macro and micro environmental factors on marketing decisions
Micro environmental factor consists of controllable or internal factors which can be
easily controlled by Tesco. It includes customers, competitors, employees, shareholders and
suppliers. They have direct impact upon the business operations and success of the firm. So,
Tesco needs to take into consideration all the above mentioned factors before making any
marketing decisions.
Impact of micro environmental factors such as competitors and employees upon Tesco are as
follows:
 If there is more competition in the market then organization requires making more focus
on the promotional strategies.
 Before making any decision, Tesco needs to understand and consider the competitor’s
policies and strategies.
 Employees of company closely affect the marketing decisions of business. If they are
able to deliver cost effective and satisfactorily services to the customers then company
needs to make less expenses on the promotional activities and vice versa.
Macro environmental factors are known as uncontrollable factors which cannot be
controlled by Tesco. Political, economic, social, technological and legal factors are the main
macro environmental factors which closely affect the business strategies, policies and marketing
decisions of company.
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Impact of macro environmental factors such as economic and social factors upon marketing
decisions of Tesco are as follows:
 Economic conditions such as inflation and deflation highly impacts the marketing
policies and strategies of organization. During inflation, purchasing power of customers
increases so Tesco needs to consider marketing condition while making the marketing
decisions.
 Customer’s needs and expectations are continuously changing as time passes. To cope up
with this situation, Tesco undertakes marketing research program which imposes cost in
front of company and affects the other marketing decisions.
2.2 Segmentation criteria which can be used for product in different markets
Segmentation can be defined as a process through which company takes total
heterogeneous market for a product and then dividing it into several sub markets which can be
served with distinct marketing mix. Tesco introduces health drink product to increase its sales
and profitability in beverages section. To segment its customers, company uses demographic
aspects such as age as well as Tesco can also segment its customers on the basis of their
personality characteristics. By making segmentation on the basis of age, organization can easily
attract children and old age people. Parents prefer more health drinks as compared to soft drinks
which provide benefits to their children. In addition to this, old people are very health conscious
so by introducing the benefit of health drinks, Tesco can attract more customers. Tesco can also
segment its customer base on the basis of their personality characteristics such as attitude and
habits which proves to be more beneficial for the organization. Health conscious people prefer
health drink in the breakfast for better health. Appropriate segmentation of the customer provides
help to company for increasing its productivity and profitability.
2.3 Targeting strategy for new product
Target market can be defined as a group of customers which Tesco select as a target and
focusing its marketing efforts and strategies. Company can use differentiated, undifferentiated
and concentrated targeting strategy as a tool to serve the customers more effectively and
efficiently. It makes contribution in the achievement of organizational goals and objectives.
Tesco undertakes differentiated marketing strategy to fulfill the needs and desires of the
customers more effectively (Bouzdine-Chameeva and Hill, 2015). In differentiated targeting
strategy Tesco uses different strategy to attract the different segment of customers because no
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one strategy is suitable to all consumer groups. To achieve success in the competitive business
environment Tesco targets kids and old people. Because most of the buying decisions are taken
by the old people as well as children also affects the buying decisions of the family.
2.4 Effect of buyer behavior upon marketing activities in different buying situations
Buyer behavior highly affects the marketing activities of Tesco in different buying
situations. Buying situations and behavior depends upon the quality of services and information
which firm provides to its customers. Besides this, experience which customers get from the
sales personnel and product or services of retail store has impact upon the repeat purchase of the
customers (Spann, Fischer and Tellis, 2015). Different buying situation has different impacts
upon the marketing activities of Tesco which are as follows: Straight re buy: In straight re buy situation customers are engaged in the routine purchase
of the product. They purchase product from the known supplier because they are more
familiar with the product and shows less involvement in purchasing. It indicates customer
loyalty towards the specific product and supplier. It has direct impact upon the marketing
activities of Tesco. Reference group such as family, friends as well as social status of the
customer also affects the buying decision of the customer (Davari and Strutton, 2014).
Tesco needs to be taken into consideration all the factors which affect the buying
decisions of potential as well as loyal customers and impacts marketing activities of the
firm.
 Modified re buy: In modifying re buying situation customers are more involved in the
purchasing decisions. According to this, customer purchase similar product but it differs
from the previous purchase in terms of the supplier or product characteristics (Akgün,
Keskin and Ayar, 2014). Customers undertake research to identify the quality and
services of different supplier and make comparison with Tesco to make appropriate
decision (Buying Situations: Types & Concept. 2015).
2.5 Positioning strategy for product and services
Positioning can be defined as a tool to design company's offering in such a way which
creates distinct image in the target customers mind. Tesco can use different positioning strategies
to positioned itself as against to competitors. It proves to be more beneficial for Tesco in
achieving success in the dynamic business environment. Organization can positioned itself on
the basis of quality of health drinks. Quality of the product plays an important role in attracting
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more customers as compared to competitors. On the other hand, Tesco can also position itself on
the basis of price that it provides health drink with high quality at very low price (Sheth and
Sisodia, 2015). It enables firm to increase productivity and profitability. To take competitive
position in the dynamic business environment company make use of brand endorsement strategy.
To position its services Tesco can take help of sports star, Bollywood stars and other great
personalities of England in promotional strategies or campaign. It helps company in attract more
customers and fans of great personalities to make purchase and experience of health drink
(Hanlon, A., 2015).
3.1 Development of product to sustain competitive advantage
To survive in the dynamic business environment Company needs to build and sustain
competitive advantage. For this, Tesco can use either cost leadership strategy or cost
differentiation strategy (Armstrong and et.al, 2014). For example: Tesco adopts cost
differentiation strategy which indicates that it provides quality products and services at very low
cost. It enables firm to achieve success by attracting more customer. Besides this, Tesco can also
build and sustain competitive advantage by providing better discounts to customers as compared
to competitors.
In addition this, organization undertakes research and development activity to assess the
customers’ needs, wants and desires. It provides deeper insight to the company about the likes
and dislikes of the customer. Through this, Tesco is able to develop or produce innovative
product or services which creates mental satisfaction among them. By raising the satisfaction
level of the customer organization can build loyal customer base. It enables the organization to
build and sustain competitive advantage in the dynamic business environment. Tesco operates in
the retail industry so it needs to make efforts to offer the wide variety of product and services to
the customer (Hollensen, 2015). Along with the food products, organization requires to offer
cloths and other unique products to their customers. By taking advantage of wide level of
customer base organization is able to achieve competitive position in the dynamic business
environment. In order to cope with the strategic business environment Tesco make efforts to
offer innovative services to its customers as compared to their rivals.
3.2 Distribution arrangement to provide convenience to customers
Distribution arrangements play an important role in providing satisfaction and
convenience to customers. Tesco adopts both direct and indirect channel to distribute its services
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more effectively and efficiently. To provide more convenience to customers Tesco also makes
available product through online retail store. Through this, customers are able to purchase
products at any time from any place. Besides this, it enables them to compare the product and
price with competitors. On the other hand, Tesco also provides home delivery arrangements or
services which provide more convenience to customers (Solomon and et.al, 2014). They can
order the products through a phone call or mail. It develops satisfaction among the customers
which provides more benefit to the company in terms of increasing productivity and profitability
of the organization.
3.3 Pricing strategies of Tesco which reflects its objectives and market conditions
Tesco needs to be taken into consideration objectives of company and market condition
while framing pricing strategies and policies. For example: One of the main objectives of Tesco
is increasing productivity and profitability of the company through customer satisfaction. Tesco
adopts penetration pricing strategy through which firm charges low price of the product and
provides quality services to customers. It enables company to increase its market share and
obtain long term profitability and productivity. On the other hand market conditions such as
inflation and deflation also affects the pricing decisions and strategies of the firm. During
inflation Tesco must adopt skimming pricing strategy which makes contribution in the
achievement of organizational goals and objectives (Talves, 2015). In contrast to this, deflation
or recession indicates the situation where purchasing power of the customers decreases.
Penetration pricing strategy enables Tesco to attract both potential as well as existing customers.
Because prices charged by Tesco is very low during the period of deflation.
3.4 Integration of promotional activities to achieve marketing objectives
Tesco undertakes advertisement, publicity, relationship marketing and word of mouth as
a promotional tool which helps it in increasing productivity and profitability of the company.
Through advertisement in newspaper, books etc. about discounts and availability of the product
Tesco can easily attract wide customer segment. Besides this word of mouth is a non paid tool
which increase sales and profit of the company. Satisfied customer share their positive
experience with friends, family etc. and motivate or suggest others to make experience of Tesco
retail outlet. In addition to this, Tesco can use relationship marketing as a tool to retain its
customer base (Wagner III and Hollenbeck, 2014). By providing regular information about
products and discount firm can easily fulfil it goals.
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3.5 Extended elements of marketing mix
It is also known as augmented marketing mix which includes following: People: Employees are the asset of the organization and plays an important role in
providing satisfaction to the customers. Success of the organization depends on the
quality of the service provider. Tesco organizes training and development session to
improve the skills of the employees which enables it to provide satisfactorily services
(West, Ford and Ibrahim, 2015). If employees of the company treat its customers very
politely and solve their problems then customers are motivate to make purchase only
from Tesco. Process: Process indicates the way through which Tesco deliver its services. For
example: Effective problem solving procedure and effective payment system plays an
important role in achieving success.
 Physical evidence: It plays a vital role in influencing more customers. Interior and
exterior, music, arrangement of merchandise also helps company in increasing
productivity and profitability of the firm.
TASK 2
4.1 Marketing mix for two different segment in consumer market
Marketing mix can be defined as a combination of four inputs such as product, price,
place and promotion which constitutes core of a company's marketing system. It plays an
important role in the achievement of organizational goals and objectives. Company is planning to
introduce diet chips in UK market. In this, Tesco can segment its customer base on the basis of
their age such as young and old customers. For this segment marketing mix develops by Tesco
are as follows:
Marketing mix for old people:
 Product: Core product which Tesco is going to introduce diet chips. In the present
scenario, old age and young people prefers to consume diet chips which place positive
impact upon their health. Thus, by making focus upon such people company can attain
success in the competitive business arena.
 Price: Price has significant impact upon the old age people. Tesco sets competitive prices
for diet chips which helps them in attracting the more customers of UK.
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 Place: Tesco will offer diet chips through their all the retail stores which are situated in
UK. In addition to this, company will also offer such chips through its online store which
also offers convenience to its customer base.
 Promotion: Tesco undertakes social media advertisement to develop the awareness
among the young and old people about the diet chips which are offered by them.
Moreover, people spend their lots of time on social networking sites. Hence, it is the best
way through which company can maximize its sales and profitability aspects.
4.2 Difference between B2B and B2C market
There is significant difference between when the business entity make transaction with
other business organization as well as customers in the following manner:
Basis of difference B2B market B2C market
Meaning Business to business market
refers to those in which firm
sell its product or services to
industrial customers rather
than others. In this, industrial
customers make use of such
raw material to produce the
finished goods.
In B2C market Tesco sells its
product directly to the end user
without involving any
intermediary.
Drivers matters In B2B market Tesco provides
deeper insight to the customers
about product, price, place,
quality dimensions.
Tesco undertakes brand
endorsement strategy to
position itself in B2C market.
All these strategies helps firm
in attracting more customers
and thereby assists in
increasing the profitability
aspects.
Positioning Business organization uses In B2C market firm make
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price and quality dimension to
positioned itself in B2B
market as against to
competitors.
focus on brand endorsement
strategy to positioned itself
which helps it in attracting
more customers.
Price sensitivity Customers are more sensitive
in relation to the prices in B2B
market.
Whereas B2C consumer
segment make more focus on
quality, features and benefit in
comparison to price.
4.3 Stating the difference between domestic and international marketing
Domestic marketing is highly differs from the international marketing which is as follows:
Basis of difference Domestic marketing International marketing
Meaning When company markets its
product and services at local
level or boundaries then it is
known as domestic marketing.
In contrast to domestic
marketing, when company
makes international marketing
strategies and policies to
market its product and
services outside the local
boundaries then it is known as
international marketing.
Political factors In domestic market political
factors has no significant
impact upon the business
operation of the firm.
In international marketing,
political aspects such as tax
policy, tariffs etc. closely
affects the business policies
and strategies of the company.
Intense of competition In this, company faces low
level of competition due to the
strategies and policies of
Company who wants to enter
in international market to
make more profit faces high
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competitors are known. level of competition.
Control upon marketing
activities
In the domestic market it is
very easy for the company to
make control upon the
marketing activities as
compared to international
market.
In international marketing
environment company faces
many difficulties in relation to
the marketing activities such
as political, legal, social and
economic.
Management abilities In home country, business unit
requires management skills
and abilities to execute their
business functions and
activities in an efficient
manner.
Manager of the firm requires
high level skills for the
implementation of their plan
and strategies in international
market as compared to
domestic market.
CONCLUSION
From this project report it has been concluded that various elements of marketing process
plays an important role in the achievement of organizational goals and objectives. Besides this, it
also has been concluded that micro and macro environmental factors has significant decision
upon the marketing decisions of the firm. It can be seen in the report that segmentation, targeting
and positioning plays a vital role in achieving success in the competitive business environment.
By summing up this project report it also has been concluded that to develop and sustain
competitive advantage organization needs to make focus on effective strategies. In addition to
these pricing and promotional strategies enables Tesco to increase productivity and profitability
of the company.
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