Marketing Essentials (Unit 2)

company name : Tesco

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explaining the key roles and responsibilities of marketing function.....................................3
M1 Analysing roles and responsibilities of marketing essentials in relation with marketing
environment.................................................................................................................................5
P2 Explaining the interrelationships of key roles and responsibilities of marketing with other
functional units of company........................................................................................................6
M2 Analysing the significance of marketing and other functional units of organisation...........7
D1 Critical analysis of key factors of marketing functions and their interrelationship with
other functional units...................................................................................................................7
TASK 2............................................................................................................................................8
P3 Comparing the marketing mix planning and its application to marketing plan of Tesco and
Sainsbury.....................................................................................................................................8
M3 Evaluation of tactics applied by organisation for attaining business objectives................11
TASK 3..........................................................................................................................................11
P4/M4 Developing a basic marketing plan for Tesco...............................................................11
D2 Designing a strategic marketing plan and application of 7P's.............................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing essentials are those elements or tool which are responsible for the success and
growth of company. These tools are used by entity to introduce its goods and services in
marketplace in order to earn enough revenue and profits to survive and grow in current business
environment. Marketing is an necessary function of every organisation, therefore it is also
required that entity select appropriate methods or elements for marketing their offering. Tesco is
chosen for completing this assignment and addressing all the requirements or tasks. Tesco is
multinational grocery and general merchandise retailer. It was established in 1919 by Jack Cohen
and headquartered in England, UK (Pricilla, 2019). The company serves in number of location
around the globe through its stores and retail outlets. Through this assignment roles and
responsibilities of marketing units are highlighted along with their interrelationships with wider
organisational context. Marketing mix is a tool which addresses number of factors affecting
marketing plan helping entity to enhance its presence in marketplace. A comparison is done
between the marketing mix strategies which are used by Tesco and Sainsbury. At the end, a
thorough marketing plan is developed for Tesco for spreading word for it new product.
TASK 1
P1 Explaining the key roles and responsibilities of marketing function
Marketing
Marketing is an activity, a process or a set of actions undertaken by entity for developing
communication with the public about their goods and services. Marketing actions are performed
for developing products and services which renders value to consumers by satisfying their needs
and making profits. Marketing is also defined as a procedure of attracting potential people or
clients and changing into regular 1850consumer by associating them with the brand for longer
duration.
Marketing concept
This is basically a philosophy which states that the organisation should analyse and
evaluate the needs, desired and requirements of their target market and accordingly make
decisions to satisfy their customer and serve them with utmost value (Fairley, 2019). The
marketing concepts has three main stages, first analysing the needs of target market, accordingly
aligning their functions by focusing them on the data acquired about the requirements of

customers and developing a potential product or service. And at the end earn profits by
successful application of those functions for satisfying consumers needs for long term.
Marketing concept is divided into five parts or phases: Production concept- This stage is customer centric and implies that the customers are
more attracted and prefer those goods which are easily available in market. The price of
these goods are inexpensive and they are available in bulk to the people. Product concept- This phase suggest that people or consumers related and buy those
goods which serves them more value and are value for their money. This states that the
customers can be retained through products by serving those goods which are beneficial
for them. Selling Concept- This stage imposes that the mindset of modern consumers and their
attention can be seek through promotions. They are more attracted towards the goods
which are more aggressively promoted by organisation (Haywood, 2019). Marketing concept- This dimension required to focus on the delivery of goods and
services to the targeted consumers. It depicts that the brand value of the entity must be
enhanced and improve regularly to be connected with the potential buyers.
 Societal concept- This phase states that the major focus should be on the needs and
desired of the individuals so that they so not shift to their competitor and prefers
respective brand over others.
Marketing function is a very important units of an organisation which has several roles
and responsibilities. All these roles and responsibilities of marketing department is defined and
explained below in context with Tesco and its operations.
Roles of marketing function Communication with customers- There are number of roles Tesco marketing department
perform on behalf of the company and out of those one is communication with
customers. The marketing strategy which is established by company needs to be in
accordance with communicating with clients in order to learn about their required and
accordingly work upon serving them best value (Malik, 2019). Innovate/Invent- Another role of marketing unit is to innovate and invent new ways and
ideas marketing organisations products and services. Customers requirements changes
frequently and in regular intervals, for addressing them properly it is essential for

business to develop new methods or innovate old one's for rendering utmost satisfaction
to people.
 Competitor analysis- It is important to know the market position or place of company
which comes under role of marketing unit. Tesco marketing team has this role to analyse
the marketplace in which entity is operating for knowing their competitors. This is done
in order to seek knowledge about the current standing and improve or develop marketing
plans accordingly.
Responsibilities of marketing function Market Research- The first and foremost responsibility of marketing team of Tesco is to
evaluate the external environment of the business by conducting market research. This
research is developed in for gathering bunch of information about the customer, trends in
economy, reputation of entity in external business and many other factors. This research
is first stage of developing a effective marketing plan and renders best quality goods to
people fulfilling their desires and needs (Kuntonbutr, 2019). Identifying Target market- Once market is analysed and evaluated thoroughly now it is
responsibility of marketing team to set target segment or target market on behalf of
company. The data received from research stage will help Tesco marketing unit to target
their customers according to the offerings and requirements of people.
 Defining marketing strategy- Once research is conducted, target market is selected, now
company will develop their marketing strategy. This strategy of Tesco will be in
accordance with the analysis done by the company in research stage and for attracting the
targeted people and changing them into potential consumer of the firms. Serving them
for longer duration by associating them with the firm for longer duration by satisfying
their needs and desired on right time and giving higher value (Anderson and et. al.,
2020).
M1 Analysing roles and responsibilities of marketing essentials in relation with marketing
environment
It is essential that the roles and responsibilities of marketing function are appropriately
evaluated in context of the marketing environment. It involves the internal, as well as external
factors that are required to be assessed to systematise the functions related to marketing. As for
Tesco, the marketing department of the firm is required to analyse the political scenario, social

aspects and innovation in the sector in order to formulate strategies that would enhance its
application within the company.
P2 Explaining the interrelationships of key roles and responsibilities of marketing with other
functional units of company
An organisation is a very big place having number of operations and tasks to undertake
for surviving in marketplace, attain all objectives and earn required profit units (Fill, 2019).
There are several number of operational units one of which is marketing. This is one of the most
important function of Tesco as mentioned in above sections all the roles and responsibilities it
performs. The function, roles and responsibilities of marketing unit is interconnected with the
functional units of company. These interrelationships are elaborated and explained below in next
segment.
Marketing and Finance department
The finance department is basically responsible for managing, controlling and evaluating
funds and financial resources. Finance department manages all the capital of the firm and
allocate financial resources to number or operational units. The marketing and finance team work
hand in hand as the money which is required by marketing unit of Tesco will be allocated by the
finance department. In order to perform all marketing actions appropriately money is needed and
that to in huge amount, therefore, finance team renders a budget to marketing according to which
they develop their marketing plans and actions. This is where the marketing and finance
department interconnects and their responsibilities interrelates (Hanlon, 2019).
Marketing and Human Resource department
Human resource departmental unit takes care of the workforce and manage company's
needs of workers. The human resource team of the organisation bring best talent in company
according to the needs and requirements of entity. This team also allocates human resource to
marketing department and this is where these two operational units and their responsibilities
interrelates. Marketing team will have to be in regular touch with the Human resource team in
case of filling any vacancy in their team or adding more people for performing all required tasks.
The Human resource manager of Tesco will recruit best suitable individual according to the
needs specified by the marketing team. Because if any in-balance in marketing team will directly
affects its operations and ultimately to the organisational marketing plans and actions. Therefore,

both the department has to work together and marketing teams effectiveness will be dependent
upon the efficiency of human resource unit.
M2 Analysing the significance of marketing and other functional units of organisation
It is very important that the significance of interrelationships within functions of the
company in an appropriate and effective aspect (Andersen, Weisstein and Song, 2020).
Moreover, the significance which such linkages hold is that it allows in determining the support
which each activity provides the other in terms of achieving the organisational objectives. In
addition, its importance could also be highlighted by the fact that this allows the firm to map the
activities and leverage its strengths and minimise any additional cost or resources to be spent
later by interconnecting each and every department.
D1 Critical analysis of key factors of marketing functions and their interrelationship with other
functional units
It is necessary that several key elements and their interrelation is critically evaluated to
determine the effectiveness of marketing function within the company. Hence, some of these
with respect to Tesco are elaborated below:
 Research:
Within this, the firm is required to indulge into market analysis so that it could promote
and communicate their products effectively. Tesco often uses primary research in forms of
feedbacks from customers visiting their stores. However, if not analysed properly, then this
might fail (Pollock III and Edwards, 2019).
 Strategy:
As the name reflects, it is associated with development of a marketing strategy for
offerings of the company. Tesco's marketing plans are subjected towards the profitability and
sales of the product through placing and selling high quality offerings to customers.
 Planning:
It is associated with effective planning and forecasting of the market conditions in
context of development of strategy in an appropriate manner. In relation to Tesco, the strategic
objective of organisation are dependant upon the anticipation of market conditions and demands
related to the products of the firm.

TASK 2
P3 Comparing the marketing mix planning and its application to marketing plan of Tesco and
Sainsbury
Marketing Mix
Marketing mix is a tool comprising set of actions and tactics used by business to perform
promotional activities for introducing and inducing their brand offerings in marketplace. It has
seven essential elements which contributes their parts in marketing goods and services
effectively. These are PRODUCT, PRICE, PLACE, PROMOTION, PEOPLE, PROCESS and
PHYSICAL EVIDENCE. This tool of marketing includes multiple number of areas to focus on
for developing a comprehensive marketing plan. A marketing mix can be customer centric which
incorporate and integrate concentration on consumers or potential buyers in their approaches.
In this section a comparison is performed and analysed in marketing mix strategy of
Tesco and one of its most competent competitor Sainsbury. This distinguishes the approaches or
strategies used by both the leading grocery retailer to market their goods in external environment
and attract the most of the targeted market. A comparison is showed below in a tabular format.
Basis Tesco Sainsbury
Product The items or company's offerings
designed to satisfy need sot people is
represented here. Tesco serves their
consumers wide range of products
such as food, clothing, electronics
etc. Tesco continuously expand its
product line to cater all the needs of
end users (Ismaili, 2019).
Sainsbury’s offers products and
services from a variety of brands
available in the marketplace.
Products which are offered by
Sainsbury are Fresh & bakery,
frozen food, drinks, health & beauty
products, baby products, cleaning
products, clothing, electronics,
entertainment and many more
options are available for buyer
visiting the stores.
Price This factors represents the sale price
of goods which also reflects the
willingness of customers to pay for
The pricing strategy of Sainsbury is
align to its positioning strategy,
company position itself in high-end

particular products. Pricing strategy
of Tesco is low pricing, where the
company offer goods at lower price
without reducing the quality of their
products. This is basically
determined as cost leadership
strategy.
market. This shows that Sainsbury
pricing policy is premium pricing in
many of it products and few are
cheaper as compared to the offering
of competitors.
Place This element deals with the
distribution channels and areas for
making sales. Tesco uses offline
channels for distributing goods and
making sales. The company has its
operations spread in wider
geographical areas through its
physical stores.
Customers can shop with
Sainsbury’s by visiting one of its
supermarkets or online. The entity
has over 605 supermarkets and
around 807 convenience stores. The
entity has it presence online where
consumer can place orders and get
their goods delivered home.
Promotion This factors aims is reflected by its
name. Marketing campaigns are
known as promotional mix and
promotional activities also includes
advertisements, public relation,
personal selling etc. Tesco biggest
advantage is its cost leadership
pricing strategy which gives it
competitive edge. And company
make use of this factor to market its
product and enhance its brand value.
The promotional actions which are
undertaken by entity are mainly
focused on its prices which its offers
to public.
Promotion is about how and entity
communicate with its potential
buyers. Sainsbury uses number of
source of promotions by which they
attract more customers and make
higher sales. Over the years,
Sainsbury made use of TV, radio,
newspapers and one of the main
source is internet. Through which
they made promotions on several
social media handles and reaches to
maximum people (Zulfikar and
Mayvita, 2019).

People This factor addresses one of the most
important resource of every
organisation, the human resource or
employees. They are responsible for
executing all plans and strategies in
order to earn enough profits and
objective of company. The people
associated with Tesco are skilled and
experts in their field. Even their sales
assistance is one of the major reason
of success. Business use programs
such as Save as you earn and Buy as
you earn, for gaining the loyalty of
customers.
The employees or workforce or
human resource of company are
well trained and experts. The
workforce of Sainsbury is a good
mixture of potential professionals
who are well aware of importance of
consumer to company and their
behavioural sensitivity. On the job
and of the job trainings are given to
new comers as it is customer centric
organisation and satisfying their
needs is the main aim of it.
Process This elements refers to the function
and actions company undertake to
perform its actions. In case of Tesco
this element refers to keeping the
customer happy by speed billing
systems and rapid deliver of goods
(Zahay and et. al., 2019). This
system is managed and achieved by
Tesco by paying attention to the
problem of individuals and rendering
fast appropriate solutions by
appointing competent staff.
Sainsbury make use of both online
and offline portales to serve
consumers. It has made online
shopping for its customers very
handy which is favourable to them
with its ‘click & collect’ service
where groceries get rolled out fast
and instantly. The changes done by
Sainsbury in their pricing strategy
and delivery slots helped in
increasing its number of consumer
and their loyalty towards the brand.
Physical Evidence This factor of physical evidence
stands as a proof of authenticity of
goods and services offered to
customers. The logos, colours,
The company has a very effective
and beneficial strategy for using it
stores as physical evidence. It has
unique designs for its stores which

labels, equipments are some of the
evidences which are used by Tesco
as a proof for its consumers. The
stores of company are also present in
several location which also severs as
physical evidence of the brand.
addresses varied needs of people.
The quality of trolleys, baskets and
shopping bags ensures and render
excellent shopping experience to
buyers or visitors.
M3 Evaluation of tactics applied by organisation for attaining business objectives
In order to enhance the effectiveness related to the application of marketing mix elements
within the marketplace, Tesco could adopt certain tactics that are explained below:
 In context of pricing, the company must adopt Penetration Pricing, which would allow its
products to be affordable in the market which would provide it better competitive edge in
the marketplace.
 In relation to Place, the organisation could use online e-commerce channels as well,
which would allow the firm into expanding its market reach within the UK (Kostelijk and
Alsem, 2020).
 To enhance the effectiveness of Promotion, the firm must utilise digital marketing
methods more, such as social media marketing, search engine optimisation and so forth.
TASK 3
P4/M4 Developing a basic marketing plan for Tesco
Company overview
Tesco is multinational organisation which was established in 1919 and deals in or serves
people by offering grocery and general merchandises through its retail stores. The company is
huge and one of the biggest of its own kind, serves its operations in around the world by wide
range of product lines and several number of stores. This marketing plan is designed for
introducing new product line of Tesco in marketplace as company's expansion into wider product
ranges is one of its most effective strategy. The business is offering number if goods to people
but due to regular changing market trends and increasing awareness regarding health people
needs are also changing. Therefore, entity is introducing new range of organic products for its
potential buyers who are health conscious.

Vision
This is a statement where overall objective of organisation is mentioned for which it
works and stays constant while business strategies and practice continuously change according to
the trends and environment. The vision statement of Tesco represents that company is willing to
fulfil the needs of people by continuous innovation and exploring all possible opportunities.
Also, company wished to inspire people, earn their trust and loyalty towards their brand.
Mission
A mission statement is a general expression of overall objectives and aims of company. It
represents the smaller and short-term motives of entity and communicate them to the
stakeholders of the organisation. The mission and vision statement of Tesco is interrelated,
addressing key role and responsibility of company to be profitable, render best quality goods to
buyer and achieve success on global level.
SWOT Analysis
This is a tool to analyse and recognize the potentials of business for working on it and
earning better results, its shortcomings to make solutions to change them into positive nature.
New chances are seen which can be explored by organisation to attain competitive advantage and
threats are evaluated for searching ways to mitigate their effects.
Strengths Weaknesses
 Tesco dominates the grocery retail
market amongst its competitors
(Ganjre, 2019).
 Diversified stores, market and product
range, it is present in number of
location serving range of goods and
services.
 It has established its operations in U.S.
and Japan which failed and costed in
huge amount to the organisation.
 Low pricing strategy is affecting
Tesco's profit margins and
effectiveness.
Opportunities Threats
 Changing preferences of people and
moving to organic goods.
 Tesco has opportunity to enhance its
 Negative impacts of Brexit, trade deals
and cost matters is a threat for Tesco.
 Increasing competition and reducing

online shopping experience by
upgrading the systems.
trade barriers are also, another very
common threat.
Strategic objectives
 To increase sales by 5% in next six months.
 To increase profit units by 8% in next six months.
 To induce sales by 7% in next one year.
 To enhance the customer base by 12% in next one year.
Strategy
The company policy is to increase its product range, serve to wider customer by reaching
to maximum number of people. Tesco had opted product development strategy which is a part of
Ansoff's growth matrix. By adopting this strategy company introduced new product range of
organic food items in their store for existing customers. They are attracting new people and
keeping it existing buyers stick to the brand.
STP Segmentation- This is a technique to divide the marketplace into smaller groups with
common characteristics and features. Tesco has segmented market by behavioural
segmentation, where purchasing decisions of individuals are considered (McCabe and
Weaver, 2019). Targeting- This is the next stage after segmentation, now Tesco will set their target
market according to their goods and offerings. Here company is targeting urban
population who belongs to high or medium class society and concerned about their
health.
 Positioning- Tesco use to position itself on its pricing strategy which was cost leadership,
but with this new organic product line company is changing its pricing strategy to
penetration pricing. As organic food is expensive and therefore, positioned it in market
using penetration pricing strategy. Also, improved its online presence, uses online source
to promote its goods.
Budget

MARKETING BUDGET
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 7000 10000 12000 10000 10000
Investment 3000 18000 25000 35000 18000
TOTAL 10000 28000 37000 45000 28000
MARKETING
OUTLAY
Promotion 12000 4000 9000 10000 4000
sales publicity 4000 4000 4000 4000 4000
Direct selling 4000 15000 5000 4000 4000
TOTAL 20000 23000 18000 18000 16000
D2 Designing a strategic marketing plan and application of 7P's Product- The product which has introduce by Tesco is new product line of organic food
and beverages. As the preferences of people is changing, awareness about health is
increasing which is new need of customers. Price- The pricing strategy which is used is penetration pricing, as company is targeting
new market segment and ensuring to keep existing customer loyal.

 Place- The distribution channels are same, sales is made through physical store presnt in
vast locations and in huge number. Promotion- New online source such as social-media is uses by Tesco to introduce and
promote its new range of organic food and beverage (Suslenco, 2019). People- Employees are given trainings and induced about the knowledge of the organic
food and speciality of it. Process- The processes are almost similar only more rapid and time saving delivery
system is introduced for providing ease to consumers.
 Physical Evidence- The evidence of authenticity of the organic food and beverages
offered by Tesco will be promotional schemes and marketing campaigns.
CONCLUSION
Thus, it is concluded from the report above that marketing is one of the key activities
associated with the organisation. It helps in communicating the products, as well as services of
the organisation within the marketplace in a better and more effective manner. It is necessary to
ensure explanation of key roles and responsibilities of the marketing function within the
organisational contexts, as well as within the marketing environment. Furthermore, It is also
necessary that the significance of interrelationships between marketing, as well as other
functional units within the organisation are clearly analysed to determine the linkage between all
these activities in a company. Moreover, it is highly crucial to compare ways in which
organisations apply the marketing mix to marketing planning process, along with tactics applied
by companies to demonstrate how objectives could be achieved. Lastly, for a new product, it is
necessary to produce, as well as evaluate a basic marketing plan for the company, which includes
strategies and use of 7Ps to achieve the set objectives.

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