Roles and Responsibilities of Marketing Functions in Tesco
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This report discusses the key roles and responsibilities of marketing functions in Tesco, including the analysis of marketing trends, interrelationship with other functional units, and the significance of marketing in the marketing environment.
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Table of Contents Introduction......................................................................................................................................1 Task 1...............................................................................................................................................1 Discuss the key roles and responsibilities of marketing functions.........................................1 Analyse how roles and responsibility of marketing relate to the wider companies context. .3 Assess the roles and responsibility of marketing in context to marketing environment........5 Assess the significance of interrelationship between marketing and other functional units..5 Critically assess the key elements of marketing functions and interrelations with other functional units of the company.............................................................................................6 Task 2.....................................................................................................................................6 Discuss how various company’s apply marketing mix to the marketing planning process to achieve business objectives....................................................................................................6 Assess various tactics applied by organisation to achieve organisational objectives............8 Assess a basic marketing plan for an organisation...............................................................11 Produce a thorough evidence based marketing plan for an organisation.............................11 Design a coherent marketing plan which tactically applies 7P’s to enhance marketing objectives..............................................................................................................................12 Conclusion.....................................................................................................................................13 References......................................................................................................................................14
Introduction Marketing is defines as the method of making consumersaware of the goods and services using various marketing tools and techniques such as advertising, publicity, direct sale and so on. It is the process of analysing the market trends and customers preferences and accordingly providing them goods and services in order to satisfy their needs and enhancing the overall profitability of the organisation. For this report Tesco is taken into consideration. Tesco is one of the well established international Company, considered to be the ninth biggest company in the world in terms of revenues. Tesco was founded in 1919 by Jack Cohen. This report highlights important roles and responsibility of marketing functions and purpose marketing concerning the marketing environment, also how different organisational apply marketing mix in order to achieve organisational goal is also highlighted. In addition to this detailed analysis of the essential marketing plan of the organisation is also highlighted in this report. Task 1 Discuss the key roles and responsibilities of marketing functions Marketing is essential purpose of the business it is the process of making consumer aware of the goods and services using various marketing and promotional tools. It includes introducing new product into the market and doing essential market research in order to analyse and understand the market trends and taste and preference of the consumers so that their needs can be satisfied effectively (Ahmad and Al-Harbi, 2019). The main function of the marketing function is to sell, advertise and distribute products and services to the customers. In context to the Tesco, the marketing department of the company ensures that products are being placed in the marketplace effectively so as to fulfil the customers requirement, marketing department of the company has implemented essential strategies to satisfy their target market Current and future trends of marketing With changing market condition the marketing trends are also continuously changing, in context to the chosen company the marketing department needs to ensure the current and future trends in order to gain competitive advantage (Baron and Hmieleski, 2018). Current trends: Some of the current trends that Tesco needs to focus more are as follow: 1
Internet marketing: The use of internet is growing among the customers, to capture huge number of consumers, organisation can use internet marketing to market their products and services, Tesco is already using internet marketing, but they can further invest more on internet marketing (Critchley, 2020). Content marketing:Another current trends is content marketing, under this creative and unique content is posted about the products and services on the various social media platforms, this will allow chosen company to attract huge number of consumers. Future trends: Someofthefuturetrendsofmarketingwhichwillallowcompanytogain competitiveness in the market are as follow: Relationship marketing:This focus on satisfying the customers and retaining them for long period rather than just focusing on sale. This will allow Tesco to increase their loyal customer base. Societal marketing:The societal marketing allows business organisation to focus on fulfilling their social responsibility and working towards welfare. The Tesco needs to continuously focus on their corporate social responsibility in order to enhance their performance. Key roles and responsibility of marketing functions: Some of the key responsibility of marketing functions are discussed below: Product concept:The main role of marketing is to offer quality product and services to their potential customers according to their requirement (Dahri, 2020). In context to the Tesco, the marketing department ensure to provide quality products at average price to their customers. Selling concept:The selling concept of marketing includes marketing product and services among customers using various tools and techniques as to increase their sale. In case of chosen company, uses various advertising and social media marketing in order to attract their customers. Satisfying customers:The another role of marketing is to satisfy their customers through investing in market research and finding the current trends and changing taste and preference of their target customers and according providing them product which leads to satisfying their needs. The marketing department of Tesco continuously modify their products in order to satisfy their customers. 2
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Maximising profit:The main role of the marketing manager of the business organisation is to maximise their profit through increasing their sale and attracting large numbers of customers, offering quality product and services and gaining competitive advantage helps business to maximise their profit. Marketing department of the chosen company ensure to provide quality products which helps them to gain competitive advantage. Enhancing brand image:Another role of marketing department is to enhance the brand image of the company through communicating to the potential customers about the brand and making them aware of the brand which leads to enhancing the brand image (de la Ballina Ballina 2021). In context to Tesco, company has well established brand image in the market which helps them to continue to gain competitiveness. Analyse how roles and responsibility of marketing relate to the wider companies context The term marketing includes a number of process and activities that are directly helps businessorganisationto maketheir goods and servicesavailableto the consumers. The marketing method helps business to implement effective strategy mainly for the essential four Ps of market and attract large numbers of customers (Freiling and Harima, 2019). In context to the Tesco, the marketing process of the company mainly focus on the effective use of marketing techniques best for attracting target customers. Product:The product that can satisfy the needs and wants of customers needs to be offered to the customers Price:Themarketingdepartmentneedstoensurethatproductsareofferedatthe reasonable price and as per competitive prices. Place:In addition to this marketing department needs to ensure that product are placed at the right place at the right time. Promotion: It includes use of essential marketing and promotional activity to make consumers aware of product and services. The interrelationship between marketing and other functional units The interrelationship between the marketing and the other functional units are discussed below: Marketing and human resource:The human resource department of the organisation is responsible for ensure that there is availability of skilled and talented work force at each and every department, also responsible for hiring, compensating, training and motivating them. The 3
marketing department of the Tesco is directly related with the Human resource department providing information about the requirement of the workforce in the marketing department, and HR department ensure that there is availability of right candidate in the marketing department. In addition to this HR department continuously evaluate the performance of marketing employees and ensure working in healthy environment (Graham, 2019). Marketing and finance:The finance department of the business organisation ensure that there is availability of finance in each and every department in order to carry out there activity smoothly and effectively. In context to Tesco, the finance department of the company ensure to provide required finance to the marketing department so that they can effectively carry out their marketing activity. Also the marketing department needs to be in contact with the finance department in order to know the financial position of the business so as to carry out the marketing activities accordingly. Marketing and production department:The production department is responsible for converting the raw material into the final product, it includes all the process related to the development of the product. In case of Tesco, the marketing department is directly linked with the production department such as marketing department provides all the required information about the current trends in the market as well as taste and preference of the customers to the production department, this will help production department to produce goods and services accordingly. Both the department effectively work towards producing and offering quality product and services to the customers enhancing the overall profitability and productivity of the business. Marketing and IT department:The IT department of the organisation ensure that the company is using well advance technology in order to get their work done smoothly and effectively. In addition to this also helps business organisation to gain competitive advantage in the market (Greasley, 2019).In context to Tesco, the IT department of the organisation ensure that the marketing g department is using all well advance technology to carry out their marketing activity effectively. Both the department collectively work towards satisfying the needs of the customers through following current needs. Assess the roles and responsibility of marketing in context to marketing environment. There are various factors available in the marketing environment such as political factors, economic, technological, cultural and so on that can directly influence the functioning of the 4
business. Any change in the political factors will lead to company making changes in their products and services accordingly. Also economic instability will lead to consumers spending less on the product and services, in such case the marketing department of the company needs to restructure their pricing policy in order to retain their loyal customers. Effective evaluation and analysisoftheinternalandexternalenvironmentwillallowcompanytoformulateand implementtheirmarketingstrategyeffectivelyandefficientlyattractinglargenumberof customers and enhancing their productivity (Miles, 2020). Assess the significance of interrelationship between marketing and other functional units Marketing is one of the essential function of the business organisation, which directly link and work with other department of the organisation such as the marketingdepartment directly like with the finance department of the organisation where the finance department provide finance to the marketing department to carry out the essential marketing activity and finance department also provide the required information of financial position of the business to the marketing department so that they can carry out their activity accordingly. All the department work together collaboratively to achieve desired goals and objectives of the organisation and enhancing the overall productivity and profitability of the business (Hilman and Gorondutse, 2019). The human resource department ensure that there availability of skilled and talented workforce in the marketing department and the marketing department helps human resource department to attract potential candidates to apply for the job. In addition to this the marketing department required detailed description and information about the product in order to carry out the marketing activity of the product in the market, the production and operational department of the organisation provides detailed information about the product to the marketing department and marketing department provide information about the current trends and preference of the customers to the production department so the product can produce accordingly. All the department collectively work towards satisfying the customers and achieved desired goals and objectives of the organisation. Critically assess the key elements of marketing functions and interrelations with other functional units of the company. Theinterrelationshipbetweenmarketingandotherfunctionaldepartmentofthe organisation allows business organisation to achieve overall objectives and development of the businesseffectivelyandefficiently.IncontexttotheTesco,foraneffectivemarketing 5
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department and functioning requires proper and effective involvement of another departments also, the marketing department works with the other department to accomplish required goals and objectives such as the marketing unit work with the operational in order to provide required information about the required product to be produced to satisfy the customers. However the interrelationship between all the department can not be profitable all the time as sometimes it can lead to misunderstanding, loss of information among departments and improper coordination. The marketing department of Tesco needs to ensure that it is working effectively with the other departments to achieve desired goals (Kajenthiran, 2018). Task 2 Discuss how various company’s apply marketing mix to the marketing planning process to achieve business objectives Marketing mix is defined as set of tools and techniques used by the business organisation and the activities carried out by them in order to promote their brand among the potential customers and marketplace. The mainly 7Ps of marketing elements makes up the essential marketing mix, so in context to Tesco the marketing mix of the chosen company and its competitor Sainsbury is discussed below: BasisTescoSainsbury ProductTescoofferswiderangeof providessuchasfoods, clothing, electronics and son on. Offering essential delivery servicesalsoofferingvast variety of choices from Sainsburyishasmorethan 30,000linesofproducts offering under their own label. Offeringvarietyofproducts suchasfoods,beauty products,householdand healthcare products. PriceThecompanyfollowslow coststrategywherethe productandservicesare offered at the low prices in order to attract large numbers ofpotentialcustomers Thecompanyfollows different pricing strategy for their different products, also following competitive pricing strategyinordertoattract their customers. 6
(Kendall, 2020). PlaceTescohasitsstoresworld widely,havingits headquarteredinUnited Kingdom.Mainlyfollowing towessentialchannelsof distributionsuchasoffline and online in order to reach their potential customers. The Sainsbury has their own chain of stores globally and havingitsheadquarteredin Unitedkingdom.The companyfollowseffective distribution strategy also. PromotionPromotion isthe processof makingconsumerawareof the goods and services using various marketing tools. The Tescousesvarious promotionaltoolssuchas advertising, direct selling and online marketing in order to attract customers. The promotion strategy used bytheSainsburyincludes bothofflineandonline promotional strategy such as advertising,socialmedia marketingtoattracttheir customers. PeopleTheemployeesand managementislargely responsibleforthesuccess and growth of the business. companyemployslarge numbers of individual having large amount of workforce. The employees are the people of the company in addition to thisthesalesexecutives, customers services department and so on comes under the people. ProcessTescohavewellsystematic and well established system, makingiteasierforthe customerstounderstandthe process more easily. The Sainsbury ensures that the products are available at their stores in a systematic manner, so that customers can easily find the products, also having online delivery process. 7
Physical evidenceThe physical evidence are the storesofthecompany includingallproducts arrangedsystematically makingiteasyforthe customers to find it effectively (Lichtenthal, 2020). The company sells its product inaattractivepackaging attracting customers and also has an online website where customerscanfindthe productsandservices,its offlinestoresarealsoits physical evidence. Assess various tactics applied by organisation to achieve organisational objectives Marketing plan-It refers to a written document which include different type of strategies which help an organisation in effectively promoting their goods and services. It will include various concept such as vision, mission, objective and various functions which assist company in achieving the goal. Other than this it will include the STP strategy, SWOT analysis of business and so on (Roos and Pike, 2018). Marketing plan will play an important role for Tesco Company, as it will ensure that company will effectively provide their products and services. Executive summary-Tesco is a international grocery and merchandise retail company. Which is founded in 1919 by John Cohen with headquarter in United Kingdom. They will expand their business by retailing in books, furniture, electronics, and home decoration and so on. Other than this they will also provide various types of internet & financial services. Mission-The mission of Tesco is to create value for customers to earn their lifetime loyalty. Vision-Their vision is to broaden the scope of the business to enable it to deliver strong sustainable long-term growth by effectively following the customers into large expanding market at home & new market abroad. Objective- To enhance their retail services in their market. To expand their business in the non food market. Their aim is enhance sales by 1.36% and maximise their profit by 32%. Segmentation, targeting and positioning Strategy- It stands for segmentation, targeting and positioning. This model will help an organisation in effectively catering the demand of 8
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rightcustomersandpositioningtheirbrand.Thismodelisusedbyorganisationfor developing an effective marketing mix. It will assist selected company in better analysing the right customers and right place for company. Segmentation-It means dividing the whole market into various subgroup. In context of selected company, their segment market will include retail and departmental stores. Targeting-It means to effectively cater the market for a specific content. Tesco Company will target the customers of middle class and premium class households. It will assist company to achieve better profit by fulfilling the demand of their target customers. Positioning-It means creating an effective image of company in the mind of their customers. Tesco is a retail store which provides good quality products to their customers and fulfils their daily needs (Sitkin and Mangion-Thornley, 2020).This will help selected company in better positioning their brand image in the mind of customers. SWOT Analysis-It refers to a marketing activity which assists an organisation in analysing their strength, weakness, opportunity and threats. It is a strategy which assist an organisation in better analysing their internal and external environment, which affect the growth and success of company. This will help company to make effective strategies which help in the long term growth of company. In context of Tesco, their SWOT analysis is discussed below: StrengthWeakness Tescofollowthenewadvances packagingtechniqueswhichgives uniquedifferentiatedpositionin consumer minds. Itsfinancialstrengthwillhelp companytolistinginonLandon Stock Exchange & FTSE index. Company faced controversies which created a few issues. Tescohaslimitedpresencein emerging countries as compare to its competitors. OpportunityTreats In context of selected company, they can enter into the emerging market and expand the area of their business operations. Government policies & taxation will affect the operations of business. In context of Tesco, their products & servicescanbeimitatedby 9
Leverage the digital media in order to expand its reach. competitors so constant innovation is requiredforachievingcompetitive advantage. Strategies to achieve Tesco new objectives The strategies that can be employed by the company to achieve their new objectives can be are market penetration and market development. Market penetration:This strategy allows company to focus on the selling the existing product into the existing market in order to increase the sale. This strategy will allow Tesco to increase the sale of their existing products using various promotional activity and advertising into the existing market enhancing the sale and profitability of the company. Market development:Another strategy that can be used by the company used by the company to achieve their objectives can be market development, this strategy allows company to focus on expanding their business into new market using existing product. This will helps company to increase their market size, this can be done through proper market research and analysis. This will helps company in leading them towards growth and achieving desired objectives. MARKETING BUDGET PARTICULARSIst YearIInd YearIIIrd YearIVth YearVth Year Initial amount30006300122001416019970 Investment930010500238303163013550 TOTAL1130016800360304579033520 MARKETING OUTLAY Promotion47461459459318751211 Sales publicity1365800245214921050 Direct selling22351900465110004434 TOTAL814641591189644676405 10
Monitoring and controlling- In context of selected company, they will effectively analysis the performance of their employees. Company use various KPI indicators which help in analysing the level of satisfaction so that they will provide better facility to their customers which help company to enhance their profitability. Proper and effective control on their employees will help selected company in efficiently achieving their organisation objective.In context of Tesco, their manger will analysis the business operations and timely take correct action if require which help them in smooth functioning of business activities (Tieman, 2019). Assess a basic marketing plan for an organisation From above discussion on various practices of organisation it was evaluated that company will provide various product categories which help them in better expanding their market area (Smith and Brotherton, 2018). While it was analysis that company will adopt cost leadership pricing strategy which help company in providing their products at a reasonable cost which increase the sales of their product. It was evaluated that company will require adopting social media promotion strategy which assists them to promote their product at a wider area. Company will provide effective training and development programs for increasing the efficiency of their employees (Wright and McKeown, 2018). Other than this company simple on their products and stores will help customers in identifying the company products. Produce a thorough evidence based marketing plan for an organisation Tactical action plan- TacticAction stepsResources neededDeadlinePerson accountable Analysisthe customers’needs anddemandby conductingan effectivemarket research. Effectively developanplan including effective strategies for these Rawmaterial relatedto producingnon- food products. Require skilled and knowledgeable human resources. Requiresufficient amountof Achievethe objective withinthe next1year by implanting the plan. CEOand managerof various departments ofcompany are responsible for it. 11
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types of goods and services. Managerof different departmentare requireto effectively communicatethe plan and objective to their employees. Developaunique andgoodquality productand provideittothe customers (Capcarova,and et. al. 2020). Measure the level ofsatisfactionof theircustomers and earn maximum profit. financial resources. Design a coherent marketing plan which tactically applies 7P’s to enhance marketing objectives The marketing plan of the chosen company is well developed and will helps them in achieving their goals and objectives in the long run and also will allow them to maximise their profitability and productivity. Their objective of growing retail services in the all the marketplace will allow company to increase their market size and increasing their customer’s base effectively this will automatically allow company to increase their overall performance (Thal and Hudson, 2019). In addition to this expanding into the non food business will also allow them to cater new 12
customers’ base. The company has set the target of increasing their sale by 1.36% and maximise their profit by 32%, enhancing their focus on promotion of existing products in the marketing plan have been helpful for the company to achieve desired goals and objectives (Witcher, 2019). The application of the marketing mix to achieve the strategies Application of the marketing mix ProductTescoshouldexpandtheirproductline further and should offer various kinds of product to their customers. PriceCompanyfollowslowpricingstrategy which needs to be continued in order to attract large number of customers. PlaceTesco needs to enter in more well advance and developed countrieswhich will help company to grow more effectively. PromotionTesco needs to focus more on the social media marketing in order to attract their customers because of the increasing use of social media. PeopleTesconeedstohiremoreskilledand talentedcandidatesfortheirmarketing department which leads enhancing overall performance. ProcessThe company is using well systematic and effective process making it easy for their customers to find things. Physical EvidenceThe needs to update and use well advance equipmentsandfurniture.Company’s outlets attract large number of customers. 13
Conclusion From the above it can be concluded that marketing is one of the most essential function of the business organisation, it helps business organisation to enhance their productivity and profitability through making consumer aware of the product and services as well as making them aware of the brand image. It includes satisfying the needs and wants of the customers through offering them quality products and services. The marketing process helps business organisation to enhance their productivity and profitability. This report highlights the detailed description of themarketingessentials,whichincludesdetailedanalysisofrolesandresponsibilityof marketing units and their link with company’s relation along with importance of interrelationship among marketing and other functional departments. In addition to this how marketing mix helps achieving business objectives and detailed analysis of basic marketing plan is also highlighted in this report. 14
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