Roles and Responsibilities of Marketing Function in Tesco
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This report explains the roles and responsibilities of marketing function in Tesco, a leading brand in the UK. It discusses the various marketing concepts and their application in Tesco. It also explores the interrelation between marketing and other departments within the organization.
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Table of Contents Contents Contents...........................................................................................................................................2 INTRODUCTION...........................................................................................................................1 P1 Explain roles and responsibilities of marketing function.......................................................1 P2 Role and responsibilities of marketing in the context of organisation...................................3 P3 Compare the elements of marketing mix of several organisations.........................................5 P4 Evaluate a marketing plan of an organisation........................................................................9 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................12
INTRODUCTION Marketing is the process of buying and selling of goods and services which is designed to discover the needs of customers and produce goods in accordance of their requirements and made them feel delighted (Andaleeb, 2016). In other words, it involves exchange between two parties so as to meet the requirements of the customer. This report is made on Tesco which is a known brand in UK. It deals with wide range of products such as groceries, food, clothing, and various financial services like insurance, banking facilities and many more and also it has 6800 stores worldwide approximately running in 18 countries. This report comprises of Role and responsibilitiesofmarketingfunctionandinterrelationbetweenmarketingandother departments. Various elements of marketing mix are also discussed in this report. At last, this report also covers a marketing plan with an appropriate budget. LO1 P1 Explain roles and responsibilities of marketing function In today’s modern era, marketing is regarded as core function of any business as it involves the process of buying and selling of goods and services through pricing, promotion, and distributionofgoodsorservicesthatcreateexchangethatwillsatisfyindividualand organisational objectives (Baker and Magnini, 2016). In other words, it is considered as sum total of activities including communicating and adds value for customers, clients and society at large. Various strategies are adopted by the marketers to facilitate exchange and identifying the needs and wants of customers across the globe. There are several marketing concepts or philosophies that aids in successful planning for accomplishment of task in a respective time period. These aspects are considered by marketing manager of Tesco relate to following aspects: Production concept: This concept emphasises the company to produce goods or services in such a manner that minimise the overall cost of production and increase the profitability of business entity. It is essential to understand the demand and taste of consumers and produce merchandise by using new and innovative technology so as to facilitate smooth operations of a business. Selling concept: This concept emphasises on selling more and more goods to the customer as the main motive is to boost sales which in turn increase the productivity of a 1
company(Schlegelmilch, 2016). This could be possible by aggressive use of promotion and effective communication strategy which persuade customers to buy the product. Marketing concept:this is a broader term which provide assistance of selling goods or services specially to target customers by delivering fast and efficiency of services (Boddy and Croft, 2016). This ensure maximum customer satisfaction and as it produce goods according to the requirements that increase sales and profitability. Societal concept: This emphasise on needs and requirements of customers and provide the interlinkage between society and business. This make optimum utilisation of resources and improve the quality of life as company provide excellent services so as to generate positive reputation across the globe. Product concept: This concept depends on several characteristics such as quality, nature of product, size, colour and many more as quality is given more preference to gain large access of customers from different parts of the country. Roles and responsibilities of marketing function are prescribed below: Marketing function can be understood as several roles and responsibilities that identify customer needs and involve various market research, product plan, promotion (Campbell, Martin and Fabos, 2018). These functions are responsible as each have different departments such as human resource, marketing, finance and so on and prepare an appropriate strategy so that task is achieved in a short span of time. The manager of Tesco provides excellent quality products or services by rendering fast and efficient services to gain large access of customers. In the context of Tesco, various roles and responsibilities of marketing function are given beneath: Brand management:this is one of the important functions of marketing as it involves several factors such as reputation, position of company and many more. Tesco is one the leading company in UK as it emphasises on quality specifications which generate giant number of customers and also it deals with other operations such as Tesco stores, Tesco mobile and Tesco bank.Theitselfbrandimageofafirmacceleratethesalesoperationandincreasethe profitability. Product design and development:This function emphasise the production department to produce goods in a new and unique manner that fulfil the requirements of customers (Rowley, 2016). The manager of Tesco creates a monopoly in the market as it delivers new and innovative products which ensure maximum customers from different parts of the country. 2
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Identify the needs of customers:It is essential to determine the priorities and demand of customers and then produce them accordingly to meet the criteria of success and this provide an opportunity to the respective firm to gain competitive advantage at a global level. Understandingthecompetitiveenvironment:Thecompetitivenessoffirmcanbe improved with the help of evaluating proper strategy and market research. The manager of Tesco evaluates future trends by analysing current and past data and gather information so as to achieve objectives. Role and responsibilities of marketing in the context of marketing environment Marketing management is understood as the process of planning and executing the conception of several activities such as promotion, distribution, pricing and many more among the group of target audience (Festa and et.al., 2016). These are explained below: Segmentation:This is the process of dividing the market on the basis of several segments by taking into various factors into consideration such as income group, gender, age group and many more. The manager of Tesco has a large diverse market in different locations and provide large number of offering to their client and thus increase the market share. Brand equity:The customer is very much habitual of particular brand as a result switching cost of brand is low. The marketing department of Tesco ensure quality specification and also it has built strong brand image across the globe. Marketing Information system:This assist the firm in making an appropriate strategy as it gathers information regarding merchandise and its competitors as well as it also monitors several marketing activities so as to achieve rivalry edge across the globe (Harrison and et.al., 2016). the respective firm use such to identify threats and opportunities arise in future which aids in meeting the expectations of customers. Making product awareness:The manager of Tesco makes product awareness by several marketing campaigns as it induces customers to purchase the products. Also, it uses several modes such as print media, online platforms etc. to generate maximum clients from several locations. This boost the sales and provide an enormous growth opportunity in future which ensure maximum customer satisfaction. P2 Role and responsibilities of marketing in the context of organisation In a competitive environment, marketing play an essential role as it ensure proper coordination and cooperation in a workplace and also it help in proper accomplishment of task 3
and is connected with other departments within a workplace which provide growth success. There is several department working in an organisation as each have different purposes and unique style of working and facilitate smooth operations of business (Hill and et.al., 2017). The senior manager of Tesco control and monitor the overall activities of several departments by maintaining proper code of conduct and also the objectives are clearly stated as it avoids confusion and misunderstandings. In the context of Tesco, the relationship of marketing with other functional departments are presented as follows: Marketing and research and development:The role of research and development is to generate new and unique ideas and conduct market research to identify customer needs, to determine upcoming new technology, nature of competitors and many more and improve the existing working requirements. Through this, the manager produces the goods or services by looking the market demand and customer requirements and thus gain large access of clients. Marketing and research and department are interrelated towards each other as aids the manager of Tesco to focus on launch of new products by conducting full market research and gain potential information and satisfy the needs of customers and it also improve the overall operations of a company. Marketing and Production department:The production department ensure that goods are produced of best quality at right time and at right place. It includes several operational activities such as warehousing, packaging and distribution which are taken place in marketing after the merchandise are ready for consumption (Koo and et.al., 2016). The marketing manager of Tesco aims to satisfy the needs of customer by using an appropriate channel of distribution suchasthroughwholesalers,retailersinaneffectiveandefficientmanner.Thesetwo departments are integratedin a respective firm as the marketing manager render a valuable information regarding the products while the production manager produce goods with new and additional feature in a changing business environment and also emphasise on judicious use of resources by satisfying the needs and requirements of customers from different parts of the country as ensure positive reputation. Marketing and Human Resources: Human resource is broader term that includes recruitment, selection, training and development, performance management and many more. Thisinvolvehiringandrecruitingthepotentialcandidatesandassigningthemwith responsibilities in such a manner matches their talent and skills so that they could work with 4
greater zeal and potential. In relation to this, the marketing manager of Tesco would assist the HR manager to fill up the vacancy position for a respective post by hiring a potential candidate who come up with new ideas and achieving targets and thus improve the effectiveness of an organisation. Marketing and Information Technology:in an era of digital economy, IT play an important role in an organisation as it not only simplifies the overall working procedure but also ensureproperaccuracyoftransactionsandalsoprovidedataprotectionthroughseveral intellectual rights (Rowley, 2016). These two departments are interlinked towards each other as the manager of Tesco emphasise on this aspect as it helps in maintaining customer relationship management and handle customer complaints and grievances within fiction of seconds which create brand loyalty and ensure maximum customer satisfaction across the globe. Marketing and Finance: The finance manager play a crucial role in in organisation as it determines the availability of funds and preparation of cash flow, financial statement and balance sheet which depict a true picture of financial soundness of company (Kühn and Pasquier, 2016). With reference to Tesco, the finance department is considered as the blood of business while marketing department is regarded as the backbone of economy and both are dependent towards each other if there is more profitable situation or enormous availability of funds then the marketing manager would plan to expand its operation by opening several branches at different parts of country and thus gain competitive position across the globe. LO2 P3 Compare the elements of marketing mix of several organisations Marketing mix is a strategy that consist of several elements of marketing such as product, price, place, promotion, physical evidence and so on as it assists the manager to consider these elements while launching of any product as it helps to gain competitive position across the globe (La Rocca, and et.al., 2016). In addition to this, the role of marketing manager is to determine the availability of resources and funds and make an appropriate planning so as to gain maximum exposure at a global level. The main motive of Tesco is to emphasise on generating more profits and to create a strong brand position across the globe as it ensures maximum customer satisfaction. The marketing mix elements of Tesco along with ALDI is presented as follows: BasisMeaningTescoALDI 5
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ProductThis refers to physical itemsthatare available to customers and is regarded as the coreelementof marketing mix. Tescohashuge productofferingsfor different segments of customerssuchas bakeryproducts, homeessentials, clothingandbeauty products,jewellery, books and so on and alsoitoffervarious banking services such asloans,mortgages, creditcardsand insurances. ALDI deal with range of products of similar attributessuchas fruits,vegetables, electronicsandother softtoolsatan affordablepricesin ordertogain maximum exposure. PriceThis refers to cost or sum of money which istobepaidby customersin exchangeofproduct asitemphasiseson generatingmaximum valuefromclients (MishraandModi, 2016). Therespectivefirm optedthecost leadership strategy as itemphasiseson sellinggoodsatlow costandatgood qualitywhichenjoy greatereconomyof scaleandthus increase the sales and productivitywithin the market. Therespectivefirm opted for competitive pricingandmarket penetrationby keeping the prices low andthustocapture large market and also itensuresmaximum customersatisfaction across the globe. PlaceThisinvolve distributionofgoods fromoneplaceto anotherthrough Tesco has more than 6900storesin11 countries and has long distributionchannels ALDI has more than 8000storesthatare operatedin18 countriesandits 6
various channels such asretailers, wholesalerstillthe customers. such as manufacturing towholesalersand thentoretailersand finally to consumers. Also, it has one stop shopping that provide aneaseof conveniencetoits customers. majorfocusison minimum disposal of waste and keep good quality of products so astomaintainlarge base of customers. PromotionThisinvolveuseof severalmarketing strategies in order to persuade customers to buy the product such asadvertisingon television,print media,wordof mouth,publicityand so on to boost the sale andincreasethe profitability. Beingoneofthe renownedcompanies, Tescouseseveral promotionalefforts suchastelevisions, charitable events and hasloyaltycard, namely,Tesco Clubcardsoasto attractgiantnumber of users from different locations. Therespectivefirm usescostsaving strategytopromote their products such as SuperBuysoffer, print media and online platformssuchas Facebook,Instagram and so on to persuade customers to buy the product. ProcessThisinvolvea sequence of activities that are taken place in an organisation which involve multiple steps anditemphasiseon smoothflowof activitiesina workplace(Solimun and Fernandes, 2018). Theseniorauthority emphasiseson designingsuch products or services in such a manner so as to minimisethe possibilityof deviationsasit facilitatessmooth operation of activities The process used by ALDI is sheer layout that assist customer to find the product easily as it saves lot of time andprovidegreater easeofcomfortto their clients. 7
in a concise manner. PeopleThetermpeople includeall subordinates who are rendering the services orhandling manufacturing operationina business enterprise. TheHRmanagerof Tesco has maintained properpoliciesand proceduresregarding recruitmentand selectionwhich provide greater value tothecompanyas diversityishighly prioritisedasit providesgreater growth in future. ALDI renders on the jobtrainingtonew employees and also it recruits very a smaller number of staff due to itsstorelayout structurewhich minimisethe requirements of them as a result it save cost. Physical EvidenceIt is considered as an environment in which thereisphysical presence of goods and itsappearancein stores can be seen as itcoversphysical environmentand allowcustomersto make judgements. Thiselementof marketing mix stands as a proof of relevant stockthatare deliveredto customers. Tesco use distinctcolourand logoswhichhelp customertoeasily recognise the brand as it is one of the popular companies that create trustandbrand loyalty. ALDI sell its stock at acheaperpriceas comparedtoits competitorswhich simplifytheoverall workingprocedure andmaintainproper standards and code of conducttobe followedwhich generatepositive brand image. Tactics used by Tesco The manager of Tesco uses several tactics in order to achieve business objectives in a short span of time. The concerned firm uses several promotional strategies such as television, its 8
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respective websites, print media and so on in order to attract large number of users and also it makes use of cost leadership and reduce the prices of goods or services to capture large market share across the globe. In addition to this, benchmarking indices are used by the firm to gain competitive advantage as it improve the overall performance and increase the efficiency within the confines of retailing industry. LO3 P4 Evaluate a marketing plan of an organisation Marketing plan is a written document that assist the marketer to prepare a strategy for accomplishment of business objectives in a respective time period (Nirschl and Steinberg, 2018). The marketing plan of Tesco is presented as follows: Overview of company:Tesco is one of the popular companies that is headquarter in United Kingdom as it deals with range of products such as clothes, accessories, books, electronics, furniture, toys, petrol, financial services and telecoms (Perreault, 2018). It provides services worldwide by using low cost strategy. The company is planning to launch chemical free sanitisers without water. Executive summary: The main purpose of company is to increase its market share at a global level by selling its existing and new products. So, the firm is planning to launch sanitiser which is pocket friendly as everyone is aware of their health. In today’s era, this is regarded as an essential product as this provide an ease of convenience among the group of customers and thus increase the productivity. Vision and mission:The vision is to generate more profitability and sustainability by completing the task within a limited period of time as it emphasises on increasing the sales in different locations so as to gain maximum exposure of customers (Purvis, 2016). This also improve the brand image and enhance the productivity across the globe. SMART objectives: To increase the sales by 10% within six months so as to generate more profitability. To emphasise on excellent communication skills within 3 months in order to avoid confusions and misunderstandings. SWOT analysis:this is performed on the basis of new product that is launched by firm which is presented below: StrengthWeakness 9
Tesco is a popular brand and has strong brandimagewhichwouldpersuade customerstobuysanitisersthatis chemical free in nature. Theconcernedfirmhasstrong distribution of network and has built customer loyalty by providing excellent offerings. Also, it would provide product at a low cost which ensure maximum customer satisfaction at a global level. The firm is emphasised on selling its productbyusinglowcoststrategy whichreducetheoverallprofitof Tesco. Sanitisers are not being purchased by customersinsomespecificmarket which decline the overall operational performance of Tesco. OpportunitiesThreats The product that is being launched by company would provide an enormous opportunitytocapturelargemarket share as these are high in demanding. The concerned firm would use online platforms and render fast and efficient services to their clients. There is cut throat competition which possess a big threat within the confines of retailing industry. Due to this, there are several price wars that indulge company to reduce prices and decrease the overall profit margin. Targeting Approaches:The marketing manager of Tesco use several strategies such as segmentation, targeting and positioning while launching a new product which are prescribed below: SegmentationThis emphasises on dividing the market on the basisofsimilarcharacteristicsthatare possessed by a firm. The manager of Tesco has divided the market on the basis of income, social class, family size and many more. TargetingThe product that is launched by Tesco target to all aged of individual and its low cost strategy 10
would gain large access of customers from different locations. PositioningThecompanyisgoingtousemarket penetrationstrategysoastocapturelarge market share and thus enhance the brand image by using distinct products. Marketing budget: Particulars1styear2ndyear3rdyear4thyear Initial money 10000500050005000 Investment100001000060005000 Total20000150001100010000 Marketing outlay 15000100030005000 Promotion4000100050002000 Sales publicity 2000200010001000 Direct selling 4000300010001000 Total250007000100009000 From the above evaluated marketing budget of Tesco, the total investment in first year that is incurred by company is 20000£ and then it is declined in fourth year which remains 10000£. In addition to this, the cost of total promotional campaign in first year is 25000£ and finally it is reduced to 9000£ as it has gain maximum exposure across the globe. Tesco is one of the renowned brands which deal with varieties of offering and in last year it requires less cost in marketing campaigns as it become very popular brand. CONCLUSION From the above information, it can be summarised that marketing is considered as sum of business activities and processes including creating and delivering and exchanging offerings by providing value to large group of individuals in a society. It has been analysed that several role 11
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and responsibilities of marketing function is also determined in this report. Also, various roles of marketing and interrelation of marketing and several other departments is also included in this report. The marketing plan by using several approaches such as segmentation, targeting and positioning are also done and various elements of marketing mix such as promotion, pricing, product and place id covered in this report. REFERENCES Books and Journals Andaleeb, S.S., 2016. Market segmentation, targeting, and positioning.Strategic Marketing Management in Asia, pp.179-207. Baker,M.A.andMagnini,V.P.,2016.Theevolutionofservicesmarketing,hospitality marketing and building the constituency model for hospitality marketing.International Journal of Contemporary Hospitality Management. Boddy, C.R. and Croft, R., 2016. Marketing in a time of toxic leadership.Qualitative Market Research: An International Journal. 12
Campbell,R.,Martin,C.andFabos,B.,2018.Mediaessentials:Abriefintroduction. Bedford/St. Martin's. Festa, G., and et.al., A., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the 4Es.Journal of Business Research.69(5). pp.1550-1555. Harrison, J.P. and et.al., 2016.Essentials of strategic planning in healthcare(Vol. 1). Chicago, IL: Health Administration Press. Hill, L., and et.al., 2017.Creative arts marketing. Routledge. Koo, K.R., and et.al., 2016. The effects of internal marketing capability on export marketing strategy, B2B marketing mix and export performance.Journal of Global Scholars of Marketing Science.26(1). pp.51-65. Kühn, R. and Pasquier, M., 2016.Marketing: analyse et stratégie. Schulthess. La Rocca, A., and et.al., 2016. Customer involvement in new product development in B2B: The role of sales.Industrial Marketing Management.58. pp.45-57. Mishra, S. and Modi, S.B., 2016. Corporate social responsibility and shareholder wealth: The role of marketing capability.Journal of Marketing.80(1). pp.26-46. Nirschl, M. and Steinberg, L., 2018.Einstieg in das Influencer Marketing. Springer Fachmedien Wiesbaden. Perreault, W.D., 2018.Essentials of marketing. New York: Mc Graw Hill. Purvis, J., 2016. Human resources marketing and recruiting: Essentials of digital recruiting. Rowley, J., 2016.Information marketing. Routledge. Schlegelmilch, B.B., 2016. Segmenting targeting and positioning in global markets. InGlobal marketing strategy(pp. 63-82). Springer, Cham. Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty.Journal of Management Development. 13