Marketing Management Services (PDF)

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction about the company and the industry.......................................................................1
Marketing audit...........................................................................................................................2
Marketing mix and the company’s product or service mix.........................................................6
New marketing mix actions to achieve gaps between the company’s present marketing
strategy and external environment..............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Marketing management is considered as the investigation, planning, execution as well as
control of programmes which are planned to bring about the expected exchanges with target
customers for the purpose of personal and mutual gain. In this report, external analysis is
conducted to know about effectiveness of external factors as well as market attractiveness.
Marketing mix is performed to understand which product is suitable for which place in what
price. Product mix is done to know about respective company product line length, breadth,
height and Consistency. Moreover, their different brands target the various market. New
marketing mix are performed with the help of which gaps among the firm's current marketing
strategy as well as the external environment can be accomplished.
INTRODUCTION
Now a days marketing management is the significant function within business
organisation. This is considered as an organisational discipline that concentrates upon practical
application of marketing orientation, techniques as well as procedures within firm. It is helpful to
understand the clients requirements, developing product, expand the techniques to meet potential
consumers and many more. For this report the chosen company is Tesco which is the leading
multinational retailer (Baker, 2014). Its headquarters is in Welwyn Garden City, Hertfordshire,
England, UK. The purpose of this report is to explain about the chosen firm and industry.
Marketing audit that outline whole market attractiveness as well as marketing mix and product
mix. Apart from this, New marketing mix are conduct to attain the gaps among external
environment and current marketing strategy of the firm are also mentioned in this report.
MAIN BODY
Introduction about the company and the industry
The retail industry is vital to the economy of United Kingdom. This particular sectors
involves any business that are related to sell the products directly to customers. In 2017, Retail
sectors economic output was approx £92.8 billion, employment £2.8 million and in 2018 retail
business were approx 319000. Within three months to April 2019, quantity of products volume
in retail sales enhanced through 1.8% compared to last 3 months (Retail Industry. 2019). The
four largest retailers in UK are Sainbury's, Walmart, tesco and Morrisons means that sector is
dominated through supermarkets. In this sectors there are some key issues like internet retailing,
1

changing behaviours of consumer, store closures and so on. The employment opportunities in
this particular sector can be found in retail management, visual merchandising, distribution,
supply chain and many more. Tesco is the fastest growing British multinational general and
groceries merchandise retailer. Its headquarter is in Welwyn Garden City, Hertfordshire,
England, UK. It is founded in year 1919 by Jack Cohen and they have approx 7000 shops in all
over world as well as operating in about 13 countries. The product portfolio of respective firm
consists food and beverage, financial services, home appliances and clothing. The subsidiaries of
Tesco are Tesco bank, Ireland, mobile and many more. Its total revenue is approx £ 63,911 and
gross profit is £ 4,216 million and having about 500,000 employees. Moreover, it is listed on the
London Stock Exchange as well as is a constituent of FTSE 100 Index. They are consistently
ranking highest in context of grocery market share and facilitates various stores formats to its
consumers such as superstores, super market, hyper market etc. most of their revenues are
produced from the UK market. As per the market share main competitors in grocery stores
business are Asda and Sainsbury (Tesco Introduction. 2019).
Marketing audit
Marketing audit is considered as a comprehensive analysis as well as examination of firm
marketing goals, objectives and activities. Also, it is systematic, comprehensive, evaluation,
analysis and interpretation of the business marketing environment, external and internal both,
their objectives, principle, strategies to determine the opportunities and issues areas and also to
suggest a plan of action for maximising the company's marketing performance . This is usually
performed by the third party. It should be always be comprehensive, this included whole
marketing areas in which issues persist as well as does not considered a single marketing
problems within the consideration (Dickinson, 2014). Moreover, this have to be systematic for
systematic analysis and evaluation of the organisation's internal and external environment,
which directly or indirectly influence performance of marketing. It have to be independent, this
can be performed through six manner that are firm audit office, task force audit, outsider audit
and many more. Also, this have to be periodical. Through executing an audit, Tesco can able to
view the manner their marketing efforts are managed and planned. There are several components
of marketing audit explanation of these are mention below :-
External environment audit – In this factor which are outside the organisation and directly
influencing marketing performance of TESCO. Thus, it is necessary for respective organisation
2

to conduct market audit by considering macro environmental factors such as economic,
environmental, political as well as cultural. Because all such factors give major impact and they
easily get changes which result in working of company, so it is necessary to conduct market
audit as it will assist in identifying impact. All the factors are as follows: Political: As retailing firm operates globally, so the international political factors impact
the organisational performance (Du Preez and Bendixen, 2015). It involves legislation
acts, tax rates, stability and many more. Politically, the recession is considered as one of
the significant spectrum which are recently impacting whole countries that may lead
towards unemployment. As Tesco is the leading retailers so they facilitates more jobs
with assist in reducing the unemployment levels.
◦ Opportunities: As respective country government motivate retailers to create more
jobs opportunities so Tesco can expand their business and this also results in
enhancing product demand as well as diversify their personnel.
◦ Threats: Due to recession, people of respective country may shift to another one
which is a threats for the Tesco as this reduces their products sales and low down the
profit. Economic: Currently the competitive advantage of Tesco is related to its overwhelming
physical presence. There are problems regarding respective firm driving out the
competition from another retailers. Within EU regulation, there is assumption that a
company with a huge market share is dominant. The interest with its product quality will
decrease as well as there is a risk of paying more cost.
◦ Opportunities: If the respective company are producing low price product into under
developed countries their people like to prefer good quality at low price which is an
opportunities for them as this enhances their sales and profitability.
◦ Threats: Due to this factors, Tesco product quality may get reduces as well as risk of
paying huge cost maximises and also decrease their market share. This will be the
threats for them. Social: Sociological factors includes demographics customers conceptions and
behaviours, lifestyle trends, clients purchasing patterns and influences purchasing access
as well as trends (Fernandez, Le Roy and Gnyawali,2014). Because of various social
change, trends shows that UK people has shift towards bulk stop shopping. In context of
3

Tesco considerations like enhance in Eastern Europeans immigration or maximise in
young professionals.
◦ Opportunities: Due to this factors Tesco can enhance the number non food items
offered for sale and increases the Eastern Europeans immigration, it is an
opportunities for them as this maximises their sales and profitability.
◦ Threats: This may be the threats for respective firm as rapidly changing trends of the
society incur more production cost. Technological: Technological factors that impact the Tesco is development into the
internet uses. Internet have provided new shape for new day shopping. It has exploit on
the utilisation of online forum of shopping. Respective firm facilitate as well as direct the
service of delivery by its websites at www.tesco.com. It assists the organisation for
catering a huge segment of individuals at its convenience. They are also helpful as
retailer to support carbon reductions as well as has developed certain sustainable
technology finances for particular aim.
◦ Opportunities: Online shopping and improvement in technology are helpful for
providing home delivery so that people can do shopping any time this enhances their
brand awareness as well as the sales.
◦ Threats: Due to advance technology and online shopping less number of people to
visit stores which will be a treats for the Tesco as this reduces the sales of their stores.
SWOT Analysis:
This is considered to analysis the strengths as well as weaknesses of the firm. Also, it
expand the opportunities and threats that are facing through the company (Godey. and et.al.,
2016).So the Swot analysis of Tesco are mentioned below:
Strengths: This is considered as the internal,positive attitudes of the firm. These are the things
which are under control. So, some strengths of the Tesco are as follows: Driving forces of industry: From the various general stores, Tesco considered as the main
supply retail market of Britain with 4% of piece of whole sectors. Best retailer in UK: Tesco is known as the retailer of basic need as well as best general
stores within UK from that year 1919. They have large income as well as deals as
comparison to another chains of grocery stores into Britain.
4

Weaknesses: These are considered as the negative factors which detract from firm's strengths.
These are the things which company required to develop to become competitive (Hadjikhani and
LaPlaca, 2013). Therefore, some weaknesses of the Tesco are as follows: Acquisitions mistakes: Some buyouts are costly as well as do not coordinate with firm
ethos for this Giraffe eatery and Nobbies garden consider. Respective firm later sold
those organization for a misfortune. For maintaining the pace with leading demands as
well as international aspirations they required to take acquisition route for this which
affect its balance sheet badly. Cost and Growth: Tesco is the considered as the market leader of the lower cost within
UK as well as concentrated upon economic range of goods for huge quantity. With
modifying behaviours of the customers and technology, they have to face challenge for
keeping their pricing edge into enhancing competition. This hamper their growth and
success.
Opportunities: These are considered as the external factors within its business environment
which are likely to contribute to their success. Therefore, opportunities of the Tesco are as
follows: Online presence: Like other customers goods that required to reach household on time, so
the online presence provides an effective value for the retailers such as Tesco. Who can
purchase technology for serving consumers by hybrid channel as well as reach bulks as
per the aggressive campaigns. Strategic Alliances: Strategic alliances with another firm is an opportunities for
expansion. It will aids Tesco to grab the attention of clients as well as enjoy another
advantages. It is already tie up with the fashion giant for making efficacious utilisation of
more store space. Similarly, it's decision to launch their new chain of discount known as
the Jack's to face the raising threats.
Threats: These are also refers as the external factors which firm has no control. So some threats
of Tesco are as follows: Price War: It is from Aldi and Lidl, these are two rivals who are known as the
discounters. So, it is tough for the Tesco to compete with them in respect of price. Both
competitors pricing policy affects their profitability.
5

Task environment audit – It include factors which are closely related to the working of company
such as markets, customers, competitors, retailers, facilitators, marketing firms and so on
(lieska,2013). All these affect the efficiency of marketing program, so it is necessary to do audit
related to task allotted to each of the above mention. Because all these factors help TESCO in
their long term sustainability within business environment and gaining profit.
 Competitors – There are several competitors of TESCO such as ALDI, ASDA,
Morrison's, Sainsbury's and so on. Customers – Tesco deals with approx 5 million consumers milestones.
Marketing strategy Audit - This marketing audit component is more important because it help
in checking the feasibility of TESCO mission, marketing objectives as well as marketing
strategies due to their direct impact on organisations marketing performance. Although all these
are essential for organisation to be accomplishing within required time duration.
 Mission: The mission of Tesco is to “ We create that matters better, together”.
 Marketing objectives: Marketing objectives of Tesco is to leads in retail super market as
well as facilitates effective quality products and services at less prices so that it can
provides its goods lesser than its competitors. Marketing strategies: The marketing strategies of Tesco is to position the brand, create
and enhance the brand awareness as well as consumer acquisition.
Marketing organisation Audit – Within organisation there are three level of management
hierarchy such as top level, middle level and lower level. It is important for TESCO to analyse
performance of their staff members at every level of hierarchy. So that, it will be identified that
performance of employees will result in increasing productivity or not. Personnel are important
assets of company and it is necessary for audit manager to identify that their performance level
meeting standards targets or not. If they are not meeting then it is necessary to fill gap within
standard and actual performance of staff members.
Marketing mix and the company’s product or service mix
Marketing is considered as an approach of various procedures which involved in
commuting the products as well as services from the manufacture to the target consumer. The
Marketing mix is considered as the set of actions which firms create as well as execute for
promoting its products and services to the target customers (Kozlenkova, and et.al., 2015). This
is whole about placing the right products in appropriate location at effective time with
6

appropriate price. This includes the 7P's that are product, price, place, promotion, people, process
and physical evidence. The marketing of Tesco are mentioned below: Products: Tesco facilitates a broad variety of products which includes food, cosmetics,
electronics, stationery and many more. With their ever growing product lines, they caters
to each possible consumers requirements. The firm sell products from famous brands in
about all product line (Lee and et.al., 2013). Moreover, they have their own brand
products such as everyday value, Tesco value, F&F Clothing and so on. Prices: Tesco used the cost leadership pricing strategy, as an outcome, they maintains
low price as much capable for their products or services without compromising with
quality. Moreover, they enjoys economies of scale as well as works continuously with
their suppliers for developing the effective supply chain in order to minimise price. Fierce
competition from firms like Aldi and Sainsbury's in the market of UK effects its pricing
strategy. Places: As many others retailers, Tesco utilise two essential distribution channel that are
offline and online. They have approx 6809 offline stores in all over world. It have six
different kinds of offline stores such as Tesco metro, home plus, compact, extra, super
store and express. Its online business is known as the Tesco Direct. Promotion: Tesco have a strong brand image that aids their promotional activities
significantly. The firm usages newspaper, television, and another media outlets for taking
their message to its clients. Moreover, for advertising they apply another kinds of sales
promotion. Such as , they often facilitates offers like buy one get one free in few
products. Also have loyalty card and owner of the club card obtain points every time they
shop that it can redeem to acquire discounts. Process: Process is considered as a set of activities which are performed to for attaining
something (Meffert, 2013). In case of Tesco, process of keeping their clients happy
through fast billing services and simple product acquirements in their offline and online
stores. They attain this through employing competent employees as well as focused to
consumer grievances as well as solving their problems. People: In Tesco, there are approx 460,000 employees. They have great number of
consumer assistants who play significant role into firm's success. The staff are very
7

proficient as well as spend a large amount of money and time within their training and
development. Moreover, their staff reward schemes are very much effective. Physical evidence: Physical evidence involves tangible presentation but is not limited to
whole physical representation of the firm like menu, letterhead, report, equipments and
many more (O'shaughnessy, 2014). Tesco have a great logo and create effectual usages of
colours. Offline stores are simple to navigate with overall products well characterised so
that clients can easily identify its products. Also, their websites are fabulous in look as
well as simple to operate.
Product mix:
Product mix is also known as the product assortment and is considered to the
accomplished products range which is provided for sale through firm. It is the number of product
lines which a organisation have for their clients. This has four dimensions such as breadth,
length, depth and consistency. So, the product mix of the Tesco are mentioned below: Length: This is considered as the total number of products into mix. For example: Tesco
have approx 12 items in its foods and beverages, 6 in television and many more. Breadth: This is considered as the number of product line the firm have to offer. Tesco
have 1,600 product lines. Its superstores will stock about 40,000 product lines out of that
25,000 are food and beverages. Depth: This considered as the number of products in a product line. For example: Tesco
have television clothing, food and beverage and so on.
 Consistency: This considered as how closely products are linked with one another in
context of its final uses, distribution needs, price ranges advertising media and so on
(Reic, 2016). From the above this have been cleared that Tesco product lines are not so
much consistent as they conduct various activities for the purchasers.
All the above term aids respective firm to make decisions in respect of which product are
to be removed and add within product lines. Usually, the company launch new items in their
product line as this is simple to obtain the consumer support for the new goods. All these
happens because of the clients' familiarity with the existent product line.
Yes, Tesco have different brands for various target market as everyday value, respective
company supermarkets and many more. All these serve various brands for different target
market. As for supermarket they target the urban area and many more.
8

New marketing mix actions to achieve gaps between the company’s present marketing strategy
and external environment
Marketing mix is considered as the set of tactics or actions which a firm utilises for
promoting their brands or goods within the marketplace (Šimberová, 2014). As customer are
becoming more demanding and changing their requirements rapidly and Tesco marketing
strategy is to position the brand, create and enhance the brand awareness as well as consumer
acquisition. Moreover, technology are becoming more advance day by day so due to that
respective firm cannot able to adopt all the advanced technology as they are more expensive. All
these are becoming the gaps between recent marketing strategy as well as external environment.
In order to accomplish the gaps among the current marketing strategy of the firm and external
environment Tesco develop the new marketing mix that are mentioned below:
 Products: As Tesco are having various range of products such as technology, gaming,
home electrical, party and gift, clothing, food and beverages and many more. Also, they
has its own brand products like every day value, Tesco lotus, Tesco value and so on. As
well as they sell their products online too. Hence, for fulling the gaps among the
marketing strategy and external environment they can launch more products of their own
brands, enhance its product lines as per the changing demands of the customers or
society.
 Prices: Tesco comply the cost leadership pricing strategy as this aids them to provide
products at low cost with effective quality. Also, it utilises economies of scale as well as
good channels for procurement. So, to accomplish the gap among marketing strategy and
external environment the respective firm may apply the competitive pricing strategy as
this helps them to ascertain the best cost for their business-to-business or business-to-
customers goods and services. Moreover, online retailers have to utilise mixed approach
in which cost based pricing may decide margins for profit as per the competitors pricing.
 Places: The firm Tesco is operating in approx 13 countries presently with the assistance
of distribution strategy. Its superstores are considered as the huge supermarket that sell
groceries and non food items in small range. As due to the external factors such as Brexit
through which government allows retailers to open small business so they can expand
their enterprises by introducing more stores of different types such as hyper, super at
various places. As in several areas there are stores which rates are higher so this can be
9

profitable to open stores in that places to gain higher profit. All there are helpful to
accomplish the gaps among external factors and marketing strategy (Tan and Sousa,
2015).
 Promotion: Tesco is the well known brand that lies upon low cost. Its promotional
strategies totally depends on this concepts only. They utilises Televisions ads, hoardings
and many more. It also uses the loyalty cards, club cards etc. as individuals are focused
towards technology now a days this built the gaps among the marketing strategy and
external environment. In order to full fill that gaps respective company have to apply the
advance technology they can promote their products through giving ads on various
websites and many more.
 People: Tesco is employing various numbers of people that are accountable for their
growth and success. They utilise few programmes like colleague privilege cards, buy as
you earn and many more to obtain loyalty for their staff. Unstable condition may build
the gaps among their marketing strategy and external factors. Therefore, in order to
accomplish this gaps respective company can offer more job opportunities to the people
and provide effective training to existing employees as well as they may also hire more
proficient sales workers sue to which that objectives can be achieved effectually.
 Process: Tesco basically comply the process that are helpful to accomplish the standards
of the markets and satisfying the consumers. For this they use the quick billing services
as well as simple product acquirements in their stores (Toften and Hammervoll, 2013).
Due to poor connections, wrong servers can build the gaps among the marketing strategy
and external environment in order to accomplish this gaps they can advance their
procedure by characterising products and their billing are to done their only no need to go
to main counters and stand for the billing. Also, a separate sections for the queries so that
all the grievance can be resolved as quick as possible. This make customers happy and
satisfy.
 Physical evidence: This basically stands for the products authentic proof which are given
to consumers (Vargo and Lusch, 2014). Tesco utilise their logos, colours equipment are
some evidence to their clients. Also, the stores are the physical proof. As technology are
growing people like to buy the product online and also many individuals prefer to visit
stores and purchase products. These builds the gaps among marketing strategy and
10

external environment. To fulfil the gaps they can apply the barcode in all of its products
which helps customer to know that goods are originals.
CONCLUSION
From the above report it has been concluded that marketing management is the
significant function within business organisation. As this helps firm to meet maximising
competition as well as the requirements for developed distribution procedures for decreasing the
cost and enhancing profitability. An marketing audit is conducted so that can able to view the
manner their marketing efforts are managed and planned. This is also assist to ascertain how well
a firm’s marketing department is performing the activities of the marketing. Marketing mix is
done as this aids company to formulate the appropriate strategy as well as their execution by
effectual tactics. Moreover the product mix is performed to get knowledge about the number of
product lines which a organisation have for their clients. New marketing mix conducted for
attaining the gaps among the current marketing strategy of the firm as well as external
environment.
11

REFERENCES
Books and Journals
Baker, M. J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Dickinson, J. R., 2014, March. The marketing management experience. In Developments in
Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL
conference (Vol. 27).
Du Preez, R. and Bendixen, M. T., 2015. The impact of internal brand management on employee
job satisfaction, brand commitment and intention to stay. International Journal of Bank
Marketing. 33(1). pp.78-91.
Fernandez, A. S., Le Roy, F. and Gnyawali, D. R., 2014. Sources and management of tension in
co-opetition case evidence from telecommunications satellites manufacturing in Europe.
Industrial Marketing Management. 43(2). pp.222-235.
Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence on brand
equity and consumer behavior. Journal of business research. 69(12). pp.5833-5841.
Hadjikhani, A. and LaPlaca, P., 2013. Development of B2B marketing theory. Industrial
Marketing Management. 42(3). pp.294-305.
Ilieska, K., 2013. Customer satisfaction index–as a base for strategic marketing management.
TEM Journal. 2(4). p.327.
Kozlenkova, I. V. And et.al., 2015. The role of marketing channels in supply chain management.
Journal of Retailing. 91(4). pp.586-609.
Lee, E. and et.al., 2013. Building capabilities via suppliers' effective management of
relationships. Industrial Marketing Management. 42(5). pp.805-813.
Meffert, H., 2013. Marketing-Management: Analyse—Strategie—Implementierung. Springer-
Verlag.
O'shaughnessy, J., 2014. Competitive marketing (RLE marketing): A strategic approach.
Routledge.
Reic, I., 2016. Events marketing management: A consumer perspective. Taylor & Francis.
Šimberová, I., 2014. Company strategic marketing management–synergic approach and value
creating. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis. 58(6).
pp.543-552.
Tan, Q. and Sousa, C. M., 2015. Leveraging marketing capabilities into competitive advantage
and export performance. International Marketing Review. 32(1). pp.78-102.
Toften, K. and Hammervoll, T., 2013. Niche marketing research: status and challenges.
Marketing Intelligence & Planning. 31(3). pp.272-285.
Vargo, S. L. and Lusch, R. F., 2014. Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.
Online
Tesco Introduction. 2019. [Online]. Available
through<https://www.statista.com/statistics/490947/tesco-group-stores-united-kingdom-
uk/>
Retail Industry. 2019. [Online]. Available
through<https://www.ons.gov.uk/businessindustryandtrade/retailindustry>
12

13