Marketing Analysis of Tesco

Added on - 22 Nov 2020

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MARKETING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Various components that enable an organization to determine and calculate a customer'slifetime value..........................................................................................................................1P2. Benefits of customer lifetime value to the organization..................................................3P3 Factors that influence the customer lifetime value...........................................................4TASK 2............................................................................................................................................6P4 Types of market segmentation strategies that can be applied to customer base...............6P5 B2C and B2B decision making models and opportunities for application of customervalue creation..........................................................................................................................7TASK 3............................................................................................................................................8P6 Different techniques and methods applied by organization to increase customerrelationships and loyalty.........................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONCustomer value management implies to measurement of organisation's customer’s viewsof the estimated values for amount delivered relative to that customers to their competitors.It isessential marketing or businesstool becauseit connects to key performance indicators directly.Customer perception of towards products and service valuewithin themarketplace canbemeasured throughsurveys which ask customersaseries of predefined questions (Verhoef andLemon, 2013). Present report is based on analysis of variouscomponents whichhaveenabledTESCO todetermine and measure customer lifetime value and its benefits. Along with this,factors that influence customerlifetime valueare also determined. TESCO is an internationalretail business enterprise which has its various outlets across countries. For accomplishment ofestablished objectives, company provides its emphasis on increasing customer's values towardsproducts and services. In this report, various types of market segmentationstrategies arealsodetermined which are applied byTESCO toits customer base. Further, B2C and B2Bmodels ofdecisionmaking arealso evaluated along withtheapplication of customer lifetime value. At last,various techniques and methods applied byorganisation arealso discussedhere.TASK 1P1. Various components that enable an organization to determine and calculate a customer'slifetime valueIn traditional concept, marketing refers to practices which are accomplished bymanagement to attract customers for selling of products and services. Earlier, companies werehaving their focus on the application of new and important marketing strategies to increase theirsales. After a rapid increase in competition, companies are providing their major emphasis oncreation of value among their target consumers for products and services to develop therelationship with customers and brand loyalty (Armstrong and et.al, 2015). In retail sector,companies need to analyse that values among customers can also be created by forming anexpectations value and acting upon it long with their usage of experience and expectations.TESCO has achieved high growth in the market due to its valuable products and services. In thiscontext, there are various important components determined that enable the organisation todemonstrate and measure customer lifetime value such as:
Customers Value:It implies to the perception of what a productor service is worth toconsumers versus effective possible alternatives. Value will be created by focusing onthe processes and systems as much as it is mind-set and culture.In order to improve thecustomer value, management of TESCO also has emphasis upon improvement of theirprocesses and systems of marketing as well as sales so that they will be able to providemoral focus on customer’s requirements (Goetsch and Davis, 2014). Employees mustalso recognise what their customers perceive as value and their views towards products ofcompetitors.Customer Satisfaction: It implies to the person’s feeling of pleasure and resulting fromcomparing a perceived value performance of product in accordance with individual’sperception. In order to improve customer’s relationship management, manager of TESCOneeds to provide focus of improvement of quality of products and application of effectivemarketing techniques so that customers will get attracted towards their product.Participation of employees will be taken to get innovative ideas and application ofeffective management to promote products and services.Customer Retention:It implies to practices for sustaining previous customers towardsorganisation which is important for maintaining sales and profitability in market. In retailsector, customer retention is essential market oriented strategic planning which isperformed by organisation to determine customer's value towards products and services(Kumar and Reinartz, 2018).CLV is important and common matrix that helps in understanding the perceived value ofcustomers towards products and services in comparison with competitors. Value of customerstowards TESCO products will come from calculation of costs associated with decisions such asbrand, sales personnel, corporate brand and functional image.Some important components which are used to calculate CLV for TESCO are:Average revenue per user: In this, average revenue achieved by organisation fromconsumer per month (Beckers, Risselada and Verhoef, 2014).Cohort analysis: It also involves different factors which carry out some changes inorganisation within specified period. This aids sales staff to understand fluctuation incustomer preference towards products within specified time duration. Further, CLV2
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