Marketing Essentials in TESCO : Doc

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PART A...........................................................................................................................................1
P1 Explaining the key roles and responsibilities of the marketing function...............................1
P2 Key roles and responsibilities of the marketing relate to the wider organisational context.. 3
M1...............................................................................................................................................3
M2...............................................................................................................................................4
PART B ...........................................................................................................................................4
P3 Comparing the ways in which different organisations apply the marketing mix..................4
M3...............................................................................................................................................7
TASK 2............................................................................................................................................7
P4 Marketing plan.......................................................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing concepts is based on the philosophy of an new idea that brands should
required to analyse for their potential customers. In other words, Marketing department of the
company has always trying to meet the needs of customers. Present study will be base on
Marketing Essentials in the context of TESCO, which is a British Multinational retail store
situated in UK or across the world. TESCO is the third largest retailer in the world in term of
gross revenues. However, the company has diversified into areas such as the clothing, financial
services, electronics, furniture toys etc. In the context of Marketing further in this study will be
explaining about the concepts or role of marketing functions and how they relate to other
functions. Besides, Report also explaining the different ways in which companies applies
marketing mix. As the end of the segment assignment will be preparing the strategic marketing
plan for the business growth.
TASK 1
PART A
P1 Explaining the key roles and responsibilities of the marketing function.
Marketing is the most essential term that better understand the needs and wants of the
buyers (Armstrong and et.al., 2018). It is worthwhile to put it in the perspective by reviewing
other philosophies that once were predominant. However there are major four concept of
marketing that are given below :
Production Concept : The production process in which the company just focuses on the
products that supply of low cost products would in and of itself create the demand for the
products.
The sales concepts : Another concept of marketing is sales concept that more important
for the company to focused on to maximize the sales activities. It defines that, company not just
only produce the product they also responsible to convince buyers from several advertising
activities.
Marketing concept : This concept enhance and spread the product information in the
market. That also maximize the business opportunity and sustainability of the business as well.
Roles of Marketing functions
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Defining and managing the brand : The foremost role of marketing manager at
TESCO is to express what company stands for, What company want to express, and other
related facts etc (Birchall, Murphy and Milne, 2016).
Conducting the marketing events/campaign : Marketing functional manager of
TESCO also play a role to measure the upcoming activities and new trends that company can
take for its new campaign.
Producing internal communications : To maintained the internal communication is
very necessary for TESCO employees to understand the values, goals and work priority of the
company. Marketing manager is more often responsible for employee communications through
a newsletter and intranet.
Monitoring and managing social media : Significant role play by marketing manager
is to monitoring the internal and external environment to gathered the more opportunity for the
business growth. It helps to define the long lasting way to control the things into best possible
manner.
Responsibilities of Marketing function at TESCO
Setting Marketing Strategy : Senior manager of marketing function is fully responsible
for making unique and different strategy for the growth of the company (Blythe and Martin,
2019). As TESCO marketing manager planning to explore the new product in the market which
belongs to cosmetics. Apart from this, some other strategies that company could adopt such as
new market entry, new market development, product development, new channel of distribution.
All such new ideas and tactics passes through marketing function.
Listening to customer needs : To establish new strategy, it is necessary for manager to
conduct a market survey in order to gathered information of current trend, customer needs and
wants etc. there are two ways through Marketing manager of TESCO can collect market
information first is through internal channels or through outside the company.
Innovate : Marketing function manager have responsible to innovate or to develop the
distinct unique strategies (Boer and et.al., 2017). For example to new strategy like customer
retention techniques, improvements in the conversion of their message and actions.
Develop marketing budgets and calculate ROI : The marketing department should
able to plan its budget for the next year activities, stretching it in order to make the most of it for
ensuring a positive ROI.
2

Define Strategic marketing plan : The most required and essential responsibility of
marketing manager at TESCO is to develop a long term opportunity and plan for new
development growth. Basically, to plan something new and innovative is the good opportunity
for the TESCO to gain the more customer focus towards the business product or services.
P2 Key roles and responsibilities of the marketing relate to the wider organisational context.
Importance of marketing is required in each functional department within the TESCO. It
makes the business more strong and sustaining in the long term. However, in this further
discussion it has been concluded that how marketing function interacts with other functional
units of TESCO.
Different roles of marketing within both B2C and B2B context
 The role of marketing in business to customer is very significant that spread the product
information directly to the potential buyer (Boisen and et.al., 2018). Through marketing
activities such as advertisement, TV, Radio customer get all the information about the
products. In other words, Business-to-customer marketing refers to the technique that
Tesco used to promote their brand image in front of their target customers.
 In Business-to-Business companies is not driven sales or product so often. In other
words, in B2B marketing is more than just branding or marketing is the tool for B2B that
represents the voice of customers.
M1
Marketing Environmental factors influences marketing activities
Corporate objectives (Internal factor) : Due to changes in Corporate objectives that
can be the most affecting factor to marketing activities.
Finance (Internal factors): Financial position of the company such as cash flow,
profitability and liquidity, are directly affect the marketing activities of the business.
Operational issues (Internal factor): Operational issue also might influence the
marketing activities that enabling the business to accomplish on cost and quality.
Economic Environment (External factor) : Unstable and low economic growth affect
the marketing activities of the business. For example : due to sudden changes in the market
growth have been changed the activities of marketing.
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Competitors actions (External factor): Marketing manager role is to deeply analyses
the competitors strategies in order to make their own plans otherwise, it may affect the
performance of the marketing function (Dyllick and Muff, 2016).
M2
Interrelationship of Marketing with other functional units.
Marketing interrelationship with human resource : Marketing manager of Tesco
should need to connected with HR department to get the best potential employees for the
marketing department because HRM is the function that need to overlook on the selection,
recruitment or T&D process.
Marketing interrelationship with IT : Marketing manager also need to understand the
technical importance from IT manager that can help Marketing to get more traffic of customers
on the company websites. So that, in order to keep inform to IT department about the new trends
or requirements. Marketing manager has always been touch with IT department.
Marketing interrelationship with R&D : R&D is basically known for new
development, innovation for which requirements of Marketing manager is become high. On the
other side, Marketing manager role in R&D is to give all the latest information of the market to
R&D manager (Gill, 2015). So it is the way through both the department equally connected with
each other to pass the information and data.
Marketing interrelationship with Financial department : In the organisation each
department have their own expenses and financial requirements. That looked up by financial
manager. While preparing the marketing budget plan, the financial department play a most role
to arrange the funds for all those activities. So the interrelationship of both the department is
equally important.
PART B
P3 Comparing the ways in which different organisations apply the marketing mix.
Marketing Mix Tesco Marks & Spencer
Product Tesco deals with diversified range of
products which has been divided into five
categories and in each category it have
different product lines (Hill, 2017).
As compare to Tesco, M&S is
also a most popular brand in
retail sector. Its products are
majorly cover the all age group
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Tesco have opportunity to make its
customers happy or to select their own
satisfied products out many. Also, Tesco
has one advantage to be of higher quality
than that of competitors.
people like, men, women, kids.
M&S has different range of
products available for the
customers like clothing, bags,
accessories, Footwear etc. M&S
also deals with home furnishing
items like bedroom, living room,
lighting, home accessories. Etc.
Price Currently, TESCO applying the
competitive pricing strategy due to heavy
competition rate in the market. Besides
that, TESCO also offer a bundle price as
well in order to attract buyers towards the
product or services. Further, company
also sometime using optional product
pricing for some specific products. It also
helps to measure the business
organisation. That also makes the
business organisation more profitable and
challenging (Kerzner, 2017).
This is the another major
objective and long lasting deal
that makes the business more
challenging and growth. M&Sa
also following the same pricing
strategies that is competitive
pricing strategy for its products.
Place Place is the considerable element of
marketing mix that present on over 500
retailer throughout the country. It follows
an intensive marketing strategy where it
tries to include its products are available
to customers easily in different parts of
the country.
M&S is an international brand
which has got more than 1000
stores operating in more than 50
countries. Overall, M&S having
around 850 stores through they
provide the product or services
to the customers.
Promotion Tesco using multiple options or channel
to promote its products or services. It
uses traditional media or performance
M&S using advertisement tool
to promote their product or
services . In terms of choosing
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that define the better understanding of
marketing and customers. It uses multiple
channels that beneficial that promote its
product or services. Basically, TESCO
adopts the traditional media which
includes an advertisement on television
and radio (Krush, Sohi and Saini, 2015).
the marketing promotional
activity tool, M&S is very
careful while they selecting the
best approach to customers.
Process Process is the way through company
provide their product to customers. So as
per that, TESCO provides their all
services through retail stores, online.
Process or the way through
company distribute their
products. So in terms of that,
M&S products can be found in
malls, stores, online, or in urban
areas. In order to attract buyers,
M&S makes their stores more
attractive and organised to
maintained the company
standards.
Physical evidence Tesco sells its products in a distinct
colour packaging that easily identifiable
on retail shelves. Basically this term is
distinct that provides the special place to
the company. For example: Tesco
provides the all latest information on the
company website that makes the business
more competitive and unique.
As compare to Tesco M&S have
more stores in across the nation.
It has around 1000 stores in
across the world. As compare to
Tesco, M&S given the major
contribution in the economy.
People People is the marketing component that
makes the business more ineffective and
challenging. Tesco employees are well
motivated and influencing in order to
meet out the business objective and task.
The number of employees
working with M&S are around
83000 more than Tesco. In order
to retained the potential
employees company adopting
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the competitive payment policy
to make the employees happy
and motivated (Lovelock and
Patterson, 2015). Along with
that, M&S also offer different
monetary or non-monitary
benefits to their employees
satisfaction.
M3
In order to gain the business objective Tesco can apply the more different marketing
tactics to analyse the different situational context. In order to achieve the business success
Marketing manager can adopted from the following strategies given below.
Product and service strategy : In order to understand and sustained the business image
in the market. For that, Tesco needs to be develop new product strategy along with new services
to make the customers more happy and satisfied (Mu, 2015).
High and Low Pricing Strategies : Pricing strategy has always impact on the product
supply. In order to make the business more sustained and challenging. Tesco needs to set the
product prices low to gain the customer focus.
Marketing Strategies to target customers : In order to fulfil the business objectives,
Tesco needs to promote the product or services on timely basis. For example: seasonal offers,
discounts, sales etc.
TASK 2
Marketing Plan
Introduction : Marketing concepts is based on the philosophy of an new idea that brands should
required to analyse for their potential customers. In other words, Marketing department of the
company has always trying to meet the needs of customers.
Executive Summary
Present marketing plan is based on the new product development of Tesco which is
Cosmetic products. Business plan is the opportunity for the organisation through they also can
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achieve the competitive position within the company. All around it maintained the proper work
environment within the organisation to keep the business energetic and influencing.
Target Customers
Target customers of the new product is women who are obsessed with make-up items.
Target customers are described the people to whom company produced their product or services.
Company decides their customer goals and also look into their needs and wants.
USP Unique Selling Proposition
Having a strong unique selling feature can help company to immediate the high performance
area. USP also very important for the company which differentiate from the other organization.
TESCO USP is high quality at affordable price.
Marketing Mix
Product : In order to fix the product Tesco should extend additional benefits for
purchasing the new make-up products along with some extra services.
Price : Tesco should need to apply the low price strategies until the product is popular in
the market. Besides, Tesco should need to apply psychological pricing strategy where the prices
of the product seen to be lower.
Place : Tesco should open up its shop on social media where the customer can easily
purchase the products from anywhere or anytime.
Promotion : new promotional style for the new product can be social media, through
online campaign, or through conducting the market survey.
People : For producing the new product or style Tesco should need to provides some
essential incentive policies to sales the force through bonuses and meetings.
Process : In order to increase the productivity level of Tesco, company should need to
implement the unique computer strategy to make the things understand quickly.
Physical Evidence : Tesco should need to gathered reviews from employees, customers
in order to enhance the service level of products such as new packaging style, with some new
designs etc.
SWOT Analysis of TESCO
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Strength
 Tesco achieved many certificates and
awards of best retailer.
 It is considered as the largest and
profitable supermarket in UK.
 Tesco using efficient strategies
throughout its operations, cost
efficiencies etc.
Weaknesses
 Some operating function of brand is
uncertain to consists external factors.
 Tesco has facing high range of
competition pressure.
Opportunity
 There is opportunity for Tesco is to
produce the new product development.
 It is significant approach to grow
technology development.
Threat
 High competitive environment is threat
for TESCO.
 Due to rising the supplier costs might
be the issue for the company.
From the above threat or weaknesses, it has been analysed that Tesco need to come over from its
weaknesses and develop the new product development plan in order to regain or retained the
customer satisfaction. Also, through applying the new marketing plan Tesco can also strengthen
their strength and enhance the market opportunity growth. All such activities is easily helps to
Gain the development results and make the process more clearly and effective.
SWOT Analysis SAINsBURY
Strength
 Sainsburry maintained the value for
money due to maintain the quality
standards.
 Company has their own brand labels.
 More than over 80,000 employees
globally.
Weaknesses
 Threat of losing brand image of fake
imitation products
 High competition pressurise
Sainsburry.
Opportunity Threat
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 Sainsburry can explore its own website
with rich content.
 Sainsburry can also explore the new
product development.
 High competition in retail sector can
affect the company growth.
 Government intervention might have
affect the Sainsbury function.
Comparison between Tesco & Sainsburry
It has been critically evaluated that UK biggest retailer Tesco and Sainsburys. On the one
side, where the Tesco has now increasing developing by decreasing the product prices which is
difficult for other rivalry companies to put up with such as Sainsbury whose prices of the
product is not as much low as Tesco. As compare to Sainsburys Tesco is the more competitive
organization in various terms.
PESTLE Analysis
Political : Operating business at international market, this is the difficult job for the company to
adhere all laws and political changes occurred within the business country. Before entering into
the new market, it is required to analyse the political current changes happened that enable to
protect company from negative impact. Political factors factors are Changes in political policies,
interest rates etc.
Positive : Stable political enviornment can provide better opportunity to TESCO to acquire new
business opportunity. Stable political envionrmnet can help Tesco to open new operation
business to another country.
Negative : Unstable Political condition can restrict business exapnsion into another country.
Economical : Economical factors determined by the GDP rate of any country. That helps to
represent the level of spending power of people and how much economical condition is
preferable or not for the company. Economic factors get influenced by inflation, recession, tax
rates, interest rates etc.
Positive : Fair market condition can provide opporunity to business into further investment
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Negative: High inflation rate can increases the product prices and deamnd of the product or
services.
Social : Social factors get influenced by the changes in trends and culture within the
environment. Demographic factors also affect the business due to changes in ageing population,
decline in home requirements.
Positive : Social factor can helps Tesco to build good image in the market.
Negative : Negative and illegal activity can affect the business goodwill and market reputation.
Technological : Technological factor majorly given the positive impact on the business due to
introducing the latest technology, through company can provide better services to target
customers.
Positive : Technological innovation can helpful to leverage businessess.
Negative : Due to high risk in technologies, sometimes company can face risk or barriers
through hackers.
Legal : Legal factor is highly affecting the business growth. That affect the business
environment directly.
Positive : Less legal interfernace helps to maintained the stable business enviornment.
Negative : High legal implications create high risk on the business which can affect the
company legal existence.
Environmental : Environment has been increased the pressure on many companies and
managers to acknowledge their responsibility to society. In order to get over from the negative
impact, Tesco should need to make the business environment healthy and secured in order to
maintained the good image in front of the government.
Positive : Enviornment provide opportunity for the business to gain market image by implying
the eco-friendly results.
Negative : Due to neglect the enviornment and its safety it affect the company reputation.
Budget
Expenses Cost
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Operational Cost 520
Human Resource Cost 650
Maintenance Cost 750
Technical Cost 650
Miscellaneous expenses 450
Total 3020
Assess Funding Sources
Personal Saving : Tesco can adopt the method or source through the company can use its own
reserved profit and savings to further invest in the new business.
Family and Friends : This is the another source or way through company can arrange their
fund for the investment. It can helpful to define the better understanding and leading advantage
for the company.
Financial Institution : Tesco should take this way to gathered fund for its new product
development. Government institution can easily issue the big loans for those company who has a
good image and clear records with government.
Venture capital : Venture capital is the another option for the organisation to gathered the
enough amount for the investment. Venture capital is all about the money which exchange for
quality in the business.
Monitoring and controlling activities
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In order to follow up the implementation process Tesco can apply different techniques
and tools to measure the actual performance from desired performance. Monitoring and
controlling process is the most essential way to determine the performance level of the company
and how the new plan is going in the market. It is therefore imperative for construction
companies to employ the usage of the most effective monitoring and control the ineffective
activities.
Six sigma : This technique for monitoring and controlling is very effective in terms of
measuring the performance. However, six sigma eliminate the wastage activities for which is not
beneficial for the company.
Follow up from employees : Getting feedback from employees can become the
effective process to identify the actual working of employees.
Performance management : This is the another techniques through company measured
the actual and desired performance.
From the above task it has been concluded that marketing function is the most productive
and essential function of the organization that keeps maintained the customer interest on the
specific brand. Study has been described the role of marketing function in the context of
marketing environment and other functional unit.
CONCLUSION
From the above task it has been concluded that marketing function is the most productive
and essential function of the organisation that keeps maintained the customer interest on the
specific brand. Study has been described the role of marketing function in the context of
marketing environment and other functional unit. Also, study differentiate the process in which
companies implemented their marketing mix to retained the customer. However, at the last
segment of the study has developed the marketing plan that is based on the new product to
justified the importance of new product development.
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