The Importance of Marketing in Tesco's Success

This assignment delves into the importance of marketing for Tesco's improvement in performance. It highlights how marketing determines success or failure of products or services in the market, assures better marketing strategies, and meets customer satisfaction levels. The 7 P's approach, marketing mix implementation at Tesco, and various marketing strategies are discussed to achieve business goals.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Key roles and responsibilities of marketing function...........................................................1
P2: Impact of Roles & responsibilities of marketing functions..................................................3
LO2..................................................................................................................................................5
P3: Comparison of 7 P's of Tesco & Mark & Spencer's.............................................................5
LO3..................................................................................................................................................9
P4: Marketing plan for Tesco......................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing essentials are the factors which are crucial and important for keeping in check
the marketing process of an organisation. Marketing of a product or service is important to
promote its sales and improve the revenue generation of an organisation. Besides this, it is
necessary to make the customers aware about a new product or service launched by a company
(Pike, 2015). Tesco is the selected organisation here which is a UK based company and a big
name in retail sector. In this report, present a Power point presentation including the concepts of
marketing with current & future trends. Apart from this, roles & responsibilities of the marketing
functions on the organisation will be discussed. On further note, the relation of the marketing
with other operations of the company & different processes that are been followed will be
considered. Also, discussion of various marketing tactics is to be considered in an organisation.
Tesco can opt for various marketing concepts or processes that can be taken into consideration.
The best approach is to analyse the market and internal as well as the external environment using
various tool like PESTLE and SWOT. This will help the Tesco to identify its marketing targets
and plan accordingly to meet their objectives and goals. It will help the company to deal with
various element of marketing mix and get a reflection of the approaches that are been
implemented by the company.
LO 1
P1. Key roles and responsibilities of marketing function
Marketing function is a process which is to be efficiently followed by the organisation to
promote its products in a better way as well as to improve its revenue generation. Also, it will
provide the organisation with better returns of investments that are implemented in a company by
the stakeholders and investors to develop a service or product. The marketing function helps
organisation to identify potentially successful products available in market (Brassington and
Pettitt, 2013). The strategy used behind them for promotion that differentiate them from other
products of different company available in market. They will also device a better market strategy
to promote their products, its distribution & maintaining of the customer care & services. The
marketing function strategy is usually found in the bigger organisation's & businesses like Tesco.
This process includes the procedures like:
 Market research: The marketing department of Tesco will perform an extensive market
research regarding market conditions available to determine suitable conditions to launch
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a new service or product. This will include assessment of product or service already
present in the market, its qualities, drawbacks & people's response towards company.
Besides this, they will collaborate with the sales department to get an idea about the unit
sales made of a product's or service's which will give them an opinion about people's
response towards that particular item of Tesco so that they can induce any sort of change
or improvement, if required.
 Making Market Plan: After the assessment of various factors, products or services by
the marketing team of Tesco, the managers or leaders, along with the management will
come together to develop an effective & essential marketing plan that will help the
company to develop a quality service or product, launch it in impressive manner & make
a better profits. This procedure will also include the employees of various departments &
segments or level to make this plan to get more reviews, innovative ideas & feedbacks.
These will help Tesco to build a better, precise & cost-effective market plan that will help
the company to develop & launch its product in a very impelling way. Also, it will help
the management to distribute the resources, roles & responsibilities in a very economical
way.
 Getting Investments & resources: Once the market plan is developed, Tesco will gather
the essential resources & will get the investments from its stakeholders, suppliers &
investors. The raw material & money is very important to initiate the functionality of the
product development process & make necessary measures to perform the development of
the new product or service (Cooper, 2013). This, investments will help the Tesco to make
needful purchase of machineries, raw materials & work force to get the task done.
Besides this, the investors will invest in Tesco to get the appropriate return of
investments made by them.
 Product development: As Tesco will get appropriate resources & necessary
investments, it will initiate product or service development process. The management
will release investment and raw materials, the managers or leaders will assign various
duties and responsibilities to employees and worker in manufacturing department will
share task of who will work upon development of product or service at Tesco. Once the
prototype is ready, it will be tested and analysed to check its efficiency and any scope of
improvement required. If improvements are been commanded, they are been made and re
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assessment is done till the quality department is satisfied with attribute of product or
service meeting quality standards. After the product is been developed, it is further sent to
marketing department for its advertisement and promotion.
 Determining the Pricing: Once product is developed, sales of finance department of
Tesco will decide its retail price after cost cutting its manufacturing, packaging and
transportation charges. The pricing will play a crucial role in the success or failure of a
product or service. Management of Tesco will look after that they keep their pricing as
per economic conditions of its customers in order to keep product or service affordability
& meet market competition. The price of product should be decided keeping in mind the
market segment as well as the resources applied in its manufacturing. A reasonable price
tag on a quality product or service will get Tesco its customer’s trust as well as help
company to sustain in the market facing stiff competition from its competitors.
 Promotion & Distribution: finished product or service will be received by marketing
department of Tesco which will look after its promotion and launching in market. They
will advertise about the product and will create a hype about it using various mediums
like social media platforms, print medium as well as electronic broadcasts (Dibb and
Simkin, 2013). This process will make the customers curious and interested about new
product or service which will improve its initial sales. The product will be distributed in
market by distributors who will supply it to customers and conduct sales.
 Customer Services: Once the product is initially sold out, the distributors will inform the
sales department of Tesco about response of customers. This data will be further sent to
marketing department. Based on the data received from sales department, marketing
department will make changes in marketing strategy or product. Besides this, they will
also reply to any query or provide information to the customer regarding products or
services. This process also helps to build a better quality standard.
P2: Impact of Roles & responsibilities of marketing functions
The marketing functions will play an essential role in the growth of the company as well
as the efficient marketing of the product or the service that has been developed. They will not
only improve the operational productivity of the company but will also better the work
environment of the Tesco. The marketing functionalities will not only help the employees to
build coordination & better team spirit to share the task & work together. Also, it will improve
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the market presence & condition of the Tesco, allowing it to manage the employees as well as
the customers in a better & an efficient manner (Babin and Zikmund, 2015). This will improve
the customer satisfaction level which will give rise to a market growth of the Tesco. Apart from
this, it will give Tesco an idea about making essential improvements in its services & products to
maintain the quality standards & sustain its market position & growth. The marketing
functionalities will help the Tesco to monitor, track down, analyse, organise & evaluate the data
received from the sales department of Tesco to derive a better idea of the market trends &
customers demand. Besides this, it will also help the managers, leaders or the Tesco as an
organisation to develop better market strategy in the future (Mishra, 2016). The market
information received will not only help the management of Tesco to get the market information
but will also induce the company with new market plans & scopes to develop its products or
services which will help the company to penetrate in new market segment & take efficient
decisions to improve its growth & market share. Also, it will ensure that company will take the
essential measures to improve its product development process, manufacturing, packaging,
pricing of product or service, its efficient distribution, marketing process, sales of the products &
managing a business & customer relationship.
Besides this, the marketing functions will act as an intermediate between the customers &
the Tesco to develop a stronger customer-business relationship. This will not only provide the
company a fair & idol opportunity to improve its growth but also improve the customer
satisfaction. The satisfied customer will improve the brand awareness which will lead to increase
the revenue generation of the company & this will get the company a better profitability. Besides
this, the marketing department will interact with various other department of the company to
keep a regular check on the operational functionality of the company. It will coordinate with the
finance to get the appropriate budget to carry out its work or marketing functionalities. With
logistic department, it will ensure that Tesco marketing department gets the appropriate
resources to run its task. The marketing department will collaborate with the Human resource
department to get the employees or the appropriate & essential work force to carry out its
marketing campaign. With manufacturing department to get the product or service developed
efficiently & on time (Berkowitz, 2016). Also, it will interact with the manufacturing to tell them
whether the product needs some improvement or not & do the product or service meeting the
essential quality standards to satisfy its customers. The marketing department or functioning unit
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will have the most important interrelation with the sales department of Tesco. The sales
department will give the marketing department the essential feedback of the consumers towards
the service or product of Tesco. This feedback will help the marketing department to get idea of
the customers demand as well as the market trends to make the essential & effective decisions.
Besides this, it will also help marketing department in the assessment the need of launching new
product in the future or call back the present service or product to meet the customer demand &
market trends. They will use the different type of marketing strategies & marketing tools to
promote their product & services, get customers feedback & interact with them to sort out any
sort of issue related to the service or product (Malhotra, Birks and Wills, 2013). The marketings
functionalities will help the management of Tesco to come up with better idea & innovation to
improve the market share of the company. Apart from this, the marketing department or
functionalities will maintain the image of the product or service that keep the customers
interested & curious about the product or service & helps the company to make better marketing
as well as business strategy. The efficient marketing helps the company to get a better sale of the
product or services & improve the profitability & better market share of the company. The sales
department will give the Tesco an idea about the extent that a customer liking a product.
Likewise, the marketing department will ensure that the operations of the company are
efficiently & effectively carried out in order to develop a better image of the Tesco in the market.
It will build a better customer-business relationship & will give the company a better market
growth as compared to its competitors. Along with it, the marketing will look after that pricing of
the product or the service is kept reasonable & the product is of high quality so that the customer
is satisfied & purchase the product despite its affordability. This approach will help the Tesco to
get a loyal customer base & will act as a market advantage for the company as compare to its
competitors in the market.
LO2
P3: Comparison of 7 P's of Tesco & Mark & Spencer's
The 7 P's of marketing will give us the basic information regarding the important factors
which can affect the functionality of the company. Besides this, it also helps the organisation to
build a better work environment & employee policy as well as to improve the marketing
procedure of a company (Wirtz and Lovelock, 2017). Besides this, it will also help the company
to decide efficient allotment of the resources, roles & responsibilities. It will also give
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organisation to adopt an effective marketing policy. The comparison of the marketing mix of
Tesco & Mark & Spencer's is as follows:
Marketing Mix Tesco M&S
Product Tesco works in the retail sector
so it has to provide its
customers with innovative &
the best quality of products in
retail category. Thus, Tesco
can provide its customer's with
wide variety of products to
meet their demands.
As compared to this, M & S
also work in the retail sector
but its focus is more on
clothing & luxury home
product.
Prices Tesco has comparatively one
of the cheaper product in the
retail market. Hence, it will be
able to attract more customers
as compared to M & S. Also,
they can place their price
according the country's
economy & affordability of the
customers to ensure a better
customer base.
As compared to Tesco, M & S
provides luxury items, its
products prices are quite high
as compare to other retailers
like Tesco.
Place Tesco is UK based retail
organisation but its business is
3rd largest in the world spread
to 12 countries. So it has more
outlets as compared to M & S.
Besides this, Tesco can opt to
open its store in smaller cities
& towns to increase its number
Compared to Tesco, M & S is
also a British company retail
firm but its business is mostly
constrained in UK with stores
in only few big countries.
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of potential customers.
Promotion Tesco adopts an extensive
marketing strategy to target
customers from all aspects of
society with different cultural
backgrounds. Tesco can use
various medium of marketing
like social media platform,
print & electronic media to
advertisement of its product or
service.
As compared to Tesco,
primary products of M & S are
luxury items, it targets the
specific section of society who
can afford their products.
People Being the 3rd largest retail
company in world with
business in 12 countries, Tesco
has a large work force &
customers which are from
various cultural backgrounds.
Tesco can employee the
native, local employees to its
outlet to improve its credibility
towards its customer &
generate better job
opportunities.
M & S is largely constrained in
the UK so the majority of its
employees & customers are
more from British origin with
some of its constituent
countries as compared to that
of Tesco.
Process Tesco has a very efficient
work force which runs its
project & organisational
processes in an efficient &
effective way. Besides this,
Tesco can opt for better work
On the other hand, M & S are
dependent on the factors which
affects its process. It looks
after the efficient work &
product quality to maintain its
brand image.
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processes like improved
manufacturing & after sales
relationship with its customers.
Physical evidence As the products are tangible,
so the customer can get a
direct idea about the product
quality. The Tesco can take
some measures to provide its
customers with better
experience of purchasing their
products & services.
Whereas, at M & S luxury
items may contain some
tangible as well as non
tangible product or service,
customer can have physical
evidences regardless to
services.
Thus, using the 7 P's approach we can analyse the market advantages that Tesco has over
its competitors. This will help the Tesco to build a better market strategy to meet its customers
demand & to gain the better market share. Besides this, it will help the Tesco to build a better
market strategy to meet the growing competition. Apart from this, the 7 P's approach will help
the Tesco to analyse the requirements of improvement in its marketing as well as the business
practices leading to the growth of the company in market. Also, this practice will help the
company to build a better employment opportunities & favourable work conditions for the work
force or the employees. The employees will be regular assessed & provided with the appropriate
trainings to meet the market constraints. This will give the employees a better job satisfaction &
will build there self esteem. Besides this, it will help the Tesco to develop a strong customer-
business relationship (Mishra, 2016). The customer will be satisfied from the functionalities of
the company as the company will produce the quality product & a better after sale service to hear
the customer problems & queries & meet the demands. This will help Tesco to increase its
market share, customer satisfaction level & profitability which will fulfil the company's market
& business objectives.
LO3
P4: Marketing plan for Tesco
The marketing plan of the Tesco PLC will include the various details that are been taken
into consideration by the company to get a better sustainability and share in the market as well as
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to improve the quality of the measures taken by the company. It will include the various types of
the details that will be considered while making a marketing plan of the company such as.
Mission: The mission of the Tesco PLC is to “ Create value for the customers, to earn their
lifetime loyalty”. Tesco PLC wants its customers to get the best quality of services to gain a
better loyalty of the customers (Berkowitz, E.N., 2016). This will help the company to attain a
better profitability and market sustainability. Also, it aims to be the Zero carbon supermarket.
Vision: The vision of the Tesco PLC is to provide the best quality services to its customers and
work as an efficient team to gain a better profitability and become a market leader in retail
sector.
Situational analysis: The situational analysis of the Tesco will provide the company with the
necessary and vital information about its strength and weaknesses to plan its marketing strategy
in accordance of its threats and opportunity factors. This will include the SWOT analysis of the
company.
 Strength: The Tesco PLC is a very well known name in the retail sector. The effective
customer loyalty and financial stability of the company allows it to meet any sort of
changes that can occur in the market. There are multiple outlets, abroad to UK which
provides it a geographical advantage over its competitors. Also, the new services helps
the company to increase its market share.
 Weaknesses: The biggest weakness of the Tesco PLC is its dependency over the fossil
fuels which causes an enormous amount of pollution that affects the environment also the
hike in the oil rates on the global level impact the company on a larger level.
 Opportunities: Tesco PLC has a major opportunity to utilize the online marketing to
promote its goods and services (Cooper, 2013). The initial success of Tesco in online
selling of books had paved the path of its success in online market.
 Threats: The global disturbance in the economic conditions and the increase in the
competition in retail sector can make a major impact on the functionality of the company.
Besides this, the innovative approaches by the competitors has emerged as a major threat
to company.
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Objectives: The Tesco PLC has the following objectives that are been taken into consideration
by the company to get the work done. Some of its major objectives are as follows:
 To provide its customers with the best quality of the services, delivered efficiently and
effectively.
 To build a better relationship with its customer's as well as the stakeholders to gain a
better market share (Cooper, 2013).
 To understand the demands and requirements of the market as well as the customers and
provide the best of the products and services of the Tesco PLC under one roof.
 Improving the purchasing as well as the shopping experience of the customers, online as
well as the offline, as compared to its competitors.
 Upgrading the product or service quality as well as the customer loyalty towards the
brand.
 To use the innovative and significant approaches that will not only help the company to
get a better market share but also helps the company to improve its profitability
(Berkowitz, 2016).
 To return the higher share or revenue or profit to its stakeholders as well as the
shareholders in the company.
 To improve its marketing strategy in order to get more and more customers and promote
its products and services.
Strategies and tactics Used: The Tesco PLC uses the cost leadership with the focus on the
demands and requirements of the company (Ebert and et.al., 2014). It will help the company to
gain a sustainable growth and meet the requirements of the customers. Some marketing tactics
used by Tesco PLC are:
 Use of social media platform
 Direct marketing approach
 Providing quality products on low cost as compared to competitors.
 Providing special discount to loyal and regular customers.
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Budgeting: Besides this the budgeting will also play a very crucial role as it will decide how
much financial resources are to be implement in the marketing of products and goods.
CONCLUSION
Thus, from the above research about the marketing essential, we can conclude that
marketing is very necessary for the improvement in the performance of the company. It is the
Marketing which determine the success or failure of a product or service manufactured by the
Tesco I the market. Besides this, it also assures the company to adopt the better marketing
strategies to improve its product & services. We have discussed the 7 P's approach of the
marketing & various factors that can affect the marketing functionalities of an organisation along
with their roles & responsibilities. Besides this, we have discussed various methods of marketing
mix implementation at Tesco & compare its effectiveness with that of M & S. Also, we
discussed a market plan & various marketing strategies to meet the customer satisfaction level &
to achieve business goals or objective of Tesco.
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