Nature and Importance of Marketing Mix in Marketing Process - Tesco PLC

This report discusses the nature and importance of marketing mix in the marketing process and its impact on the success of marketing activity with reference to Tesco PLC. It also explains the STP analysis of Tesco and its target market.

BMP4004 1

Contents
INTRODUCTION...........................................................................................................................1
TASK..............................................................................................................................................1
The nature and importance of the marketing mix within the marketing process...................1
How the marketing mix and other key marketing theory can impact the success of marketing
activity....................................................................................................................................3
CONCLUSION................................................................................................................................5
.........................................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Marketing is defined as the process or the group of activities which have been performed by
the organization in order to attracting the customers towards the organization which result in
increase in sales and profitability of organization. All the marketing activities have been
performed by the marketer or the employees of marketing department. It is necessary for the
organization to focus on the marketing activities so that they can establish a good relationship
with the customers and retain them towards the organization. Value creation of customers is also
considered as the activities of marketing (de Oliveira Rodrigues, D., 2021). The Chosen
organization for this report is Tesco PLC which is a British multinational groceries and general
Merchandise retailer having headquartered in London, England, United Kingdom. This report
include the nature and importance of marketing mix within the marketing process along with the
impact of marketing theory on the success of marketing activity with the particular reference to
the customer satisfaction. Marketing theory include STP analysis of organization.
TASK
The nature and importance of the marketing mix within the marketing process.
A business organization is always required to use the marketing tools for the purpose of
promoting and selling their products and services. Analyzing and arranging the elements of
marketing mix of a business organization permits its management for developing the profitable
marketing decisions at each and every level. These decisions are really helpful for a business
organization as it develop the strength and limit its weakness. The business can become hire
competitive and adaptive in its market. As a result of marketing mix it has been identified that
the improvement of profitable collaboration among the departments and partners have been take
place. In simple words marketing mix is defined as a set of practices of a business in order to
build and market the product and services of the business organization in front of customers
(Kinoshita Shirahata and Misaki 20190. It also makes sure that the business organization is
offering the right product at right price and right place with the right promotional tools to the
customers. Below mentioned are the importance of marketing mix with in the marketing process: It helps in a clean mix creation: It has been found that a chain of strong bond has been
created as a result of marketing mix which will guide the organization to look forward
and develop this chain longer. At present the overall picture of the organization and when
1

the organization want to bring some changes in the existing things, marketing mix helps
in presenting the clean marketing mix for the product. It helps in new product development: At the time of Designing the existing product,
there are several number of ideas which comes in the mind related to the product of the
organization. With the use of marketing mix the organization can present the good and
effective idea of new product development as well. Help in increasing the product portfolio: Mostly, the business organizations make a
minor change in the product when they want to increase the product Dept or product line
and length. It leads to the bringing changes in the marketing mix itself as it also bring the
changes in product features and pricing. By doing some alteration in the marketing mix
and specific characteristics within it, the business organization can end up with an
enlarged product portfolio (Themistocleous, C., 2018). It is important in differentiation: After analyzing the marketing mix of competitors, the
business organization get to know about the several methods which they can use to
differentiate their product from their competitors. For instance the competitors have poor
promotions and after analyzing these promotions, the organization can promote their
products in an effective and efficient manner.
 Bring the dynamic nature in organization: When any disaster strikes, it is necessary for
the business organizations to prepare in a very effective manner. It is necessary for the
organization to get ready for responding the recession for the poor business environment.
In such cases orientation is required to be e dynamic in nature. The organization is
required to understand all the elements of marketing mix in a better manner. Only after
understanding all the elements, the company can respond with a better agility.
Marketing Mix of Tesco
2

Marketing mix is consider as the most discussing topic of marketing. It include 4
elements i.e. product, price, place and promotion. The marketing mix refers to the set of actions,
or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a
typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing
mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics
as vital mix elements. Below mention are the elements of marketing mix in the context of Tesco: Product: Product refers to the item actually being sold. The product must deliver a
minimum level of performance otherwise even the best work on the other elements of the
marketing mix won't do any good. Tesco is dealing with several number of products and
items which majorly include cosmetics, electronics, clothing, food, financial services and
many more. The management of Tesco had expanded its variety of products for the
purpose of covering all the customers by fulfilling their needs and demand. This company
is dealing with mostly all the branded products of every product line. This company is
also manufacturing its own product as well. Some of own brands of Tesco include
everyday value, Tesco Value, F&F clothing and many more. Price: Price refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other direct
and indirect factors. The pricing strategy of Tesco is cost leadership under which the
organization is focusing on maintaining the prices as low as possible for their products
and services along with improving its quality. Tesco is constantly enjoying the economies
of scale and focusing on the reduction of cost by developing effective and positive
relationship with the suppliers. The pricing strategy of Tesco is effecting by their
competitors such as Alsi, Lidl which are also working in the market of United Kingdom.
Tesco is being planning a huge war in against the various discounters. Place: Place refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for them to buy it is the main aim of a good distribution or
'place' strategy. Tesco company is using majorly two important channels of distribution
which include offline and online. More than 7000 offline stores of Tesco are currently
performing operations in all over the world (Lopatin and et. al., 2019). There are six
types of offline stores of Tesco which include Tesco Extra, Tesco Compact, Tesco
Superstores, Tesco Express, Tesco Metro and Tesco Homeplus. This company is also
3

providing products and services to their customers through online mode which is known
as Tesco Direct. It shows that the Tesco Plc is using various channels in order to reach to
the customers in an effective and efficient manner.
 Promotion: It refers to all the activities undertaken to make the product or service known
to the user and trade. This can include advertising, word of mouth, press reports,
incentives, commissions and awards to the trade. Promotional activities has a vital role in
the organization as it helps the organization in creating brand image. This organization is
using newspapers, television and several other media stores for the purpose of taking its
message to their customers. It has been found that Tesco is the biggest spender in
traditional advertising in the grocery retail industry of United Kingdom. In addition to
this, this company also provide several exciting offers to their customers in order to
attract them towards the organization. The management of Tesco has also introduce the
loyalty card program thorough which the cardholder will get some points on every
shopping and these points can be redeem for getting some extra discounts.
How the marketing mix and other key marketing theory can impact the success of marketing
activity
STP is the key marketing theory which leads to the success of organisation along with the
higher satisfaction of customers. STP stands for segmentation, targeting and positioning. It is
defined as a procedure including three steps which has been applied for the purpose of
development of a particular and actionable marketing strategy. Tesco Plc is applying the theory
of STP in order to identifying the target market and customers and after that putting the
particular products and services as per the demand of customers. It help the employees in gaining
the higher level of satisfaction. For the same purpose, the company is require to create the
segments on several basis as it is useful for organisation to make the decision related to the target
market and customers.
Below mentioned is the explanation of three steps of STP in the context of Tesco:
4

 Segmentation: It is the process of identifying the identifiable and common traits among
the people in a particular market. It help the business organisation in developing the
higher relevant and engaging campaigns of marketings. Some of important variables of
segmentation include demographics, geography, psycho-graphics, values, Life Stage and
behaviours. The geographic segment of Tesco include approx 14 countries including
United Kingdom along with all rural & urban areas. Demographic segment include the
people of all age groups, genders, income, occupation, education (Melas Foret and
Hesková 2020). Psychographic segment include the customers of traditionalists and
contended conformers lifestyle along with the easy going and determined personality. Targeting: Next step of this process is to pick the segment in which the business
organisation can find the best opportunities. Firstly, the organisation have to look at the
size of the segment because the size and scope of opportunities are depend on the size of
segment. Larger the size include large number of people and implies huge opportunity to
gain profit. In simple words, it can be said that the targeting level of STP analysis is only
about the identifying the best available opportunities in order to use the data of
customers. So that the organisation can gain the higher profit as well. The target segments
of Tesco include all the customers of any age group and any gender, low and middle
income category customers, people working as students, employees and professionals.
Several of supermarkets chains are targeting the customers of different segments of
United Kingdom such as Waitrose supermarket chains are offering their products to the
people of higher income sector as they are putting the level of quality of products on
priority over its prices.
 Positioning: It is the last step in the process of STP analysis which helps the business
organisation in keeping their products and services different from their customers (Lee,
S.W., 2018). It has been found that the most successful product positioning is the
5

combination of three factors which include symbolic positioning, functional positioning
and experiential positioning. Tesco is performing very well in positioning. Tesco has
presented itself as the low price retailer through an advertisement “Cheapest Price
Everyday”. This strategy is attracting the customers towards the organisation.
CONCLUSION
From the above report it has been concluded that the marketing mix is an essential tool for
the organization to analyze the current trend of market so that the organization can provide the
products at the prices which Can attract the customers towards organization. Also helps in
making the products more attractive as compared to their competitors. It has been found as an
essential for the business organization to analyze the marketing mix of competitors as well
because it will help the organization in developing the strategies a in a more effective and
efficient manner as compared to their competitors. Decisions related to the marketing strategies
have been taken on the basis of the elements of marketing mix. In addition to this, it has been
also analyzed that STP analysis is the best marketing theory as it leads to the success of a
marketing activities which also provide the highest satisfaction level of customer service is
beneficial for the organization. By applying this theory, the business organization get to know
about their target market and the process how to place the product and services in front of the
target market so that the customers attracted towards the product and organization and buy them.
6

REFERENCES
Books and journal
de Oliveira Rodrigues, D., 2021. Marketing-Mix Metamorphosis and New Trusted Business
Practices. In Competitive Drivers for Improving Future Business Performance (pp. 46-
66). IGI Global.
Kinoshita, N., Shirahata, T. and Misaki, Y., 2019. Structures and Conducting Properties of
Molecular Conductors Based on Dimethyl-substituted ST-STP. Chemistry
Letters, 48(8), pp.985-988.
Lee, S.W., 2018. Contemporary issues and challenges of the Korean maritime
industry. Maritime Business and Economics: Asian Perspectives.
Lopatin, V.A., Mukhin, K.Y., Seryshev, R.V., Trifonov, P.V. and Smirnov, V.V., 2019.
Increasing the level of STP in information processing. International Journal of
Engineering and Technology Innovation, 8(7), pp.583-588.
Melas, D., Foret, M. and Hesková, M., 2020, June. Importance of quality of life and social
indicators in contemporary marketing. In Proceedings of FEB Zagreb International
Odyssey Conference on Economics and Business (Vol. 2, No. 1, pp. 768-779).
University of Zagreb, Faculty of Economics and Business.
Purohit, S., Paul, J. and Mishra, R., 2021. Rethinking the bottom of the pyramid: Towards a new
marketing mix. Journal of Retailing and Consumer Services, 58, p.102275.
Sharma, R.R., Kaur, T. and Syan, A.S., 2021. Contemporary Issues in Sustainability Marketing.
In Sustainability Marketing. Emerald Publishing Limited.
Themistocleous, C., 2018. Customer data: contemporary issues of privacy and trust.
In Innovation and Capacity Building (pp. 167-185). Palgrave Macmillan, Cham.
7