Nature and Importance of Marketing Mix in Marketing Process

This report discusses the nature and importance of marketing mix in the marketing process and how it impacts the success of marketing activities. It also includes a case study of Tesco's marketing mix and STP analysis. The report highlights the significance of marketing mix in developing effective decisions and strategies at each level of marketing. It also explains how STP analysis helps in identifying the target market and customers and provides actionable marketing strategies.

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Table of 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.........................................................................................................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
Marketing refers to the procedure or collection of all those practices which an
organisation undertake to attract the people towards the business organisation and influence them
to buy their products or services which leads to the generation of revenue. An organisation
develop a separate department for marketers which is known as marketing department which is
responsible for performing all the marketing activities. These activities also help the business
organisation in establishing the relationship with their customers as the major objective of
marketing is to create strong relationship with customers and retain them towards the
organisation along with creation of values (Melas, Foret and Hesková 2020). 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
deals with the nature and importance of marketing mix within the procedure of marketing and
the impact of theory of marketing on the success of practices of marketing. In addition to this, it
also include STP analysis of business organization as a theory of marketing.
TASK
The nature and importance of the marketing mix within the marketing process.
Several of marketing tools are being used by the business organisation in order to
promote and sell the products and services. It has been found that identifying and composing all
the elements of marketing mix helps the management in developing effective decisions and
strategies at each and every level. It is necessary for the business organisation to make decisions
and strategies by keeping all the influencing factors in mind so that it can build strength and
remove the weakness. Marketing mix refers to the set of actions which have been used by the
business organisation in presenting the product and services in front of customers (Purohit, Paul
and Mishra 2021). The management have to take the right decisions art right time, so that they
can place the right product in the right market and use the effective promotional tool for reaching
to the customers. The importance of marketing mix have been discussed below in detail: It helps in a clean mix creation: Marketing mix help the business organisation in
developing a chain of strong bond which also provide guide to the management for
making this bond more stronger and longer. A clear picture of organisation can be
concluded by the use of marketing mix. In the same manner, it also present the clear
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marketing mix for the product in which the organisation is planning to bring some
changes. It helps in new product development: When a business organisation wants to design a
new product or bring changes in the existing product, various ideas comes in the mind.
Related to the product. With the help of marketing mix, the organisation can select the
effective idea of product development which enhance the profitability of organisation. Help in increasing the product portfolio: In order to develop the product line, the
business organization bring some minor changes in the product or services. It's result can
be seen on the overall change in the marketing mix because of changes in features and
prices of products and services. Some specific alteration in marketing mix add various
characteristics within it which end with the enlargement of portfolio of products. It is important in differentiation: Marketing mix also help the business organization in
knowing about the methods or ways, through which they can make their product
differentiate from their competitors (Sharma, Kaur and Syan 2021). For example: through
marketing mix, the business organization get to know about the promotional activities
which are being performed by their competitors. It help the management in using the
effective promotional tools as compared to their competitors.
 Bring the dynamic nature in organization: It has been found as necessary to prepare the
business organization effectively in case of facing any disaster. It also help the business
in preparing them to face the recession for the poor business environment. Orientation is
required to be dynamic in nature. A business organization can develop agility of
responding all such disaster by understanding all the elements of marketing mix.
Marketing Mix of Tesco
Marketing mix is found as the most important concept in marketing. It is build of four
elements which include product, price, place and promotion. These four elements of marketing
mix have been discussed below in detail in the context of Tesco Plc: Product: Tesco company is dealing with the variety of products and services which
include electronics, financial services, clothing, cosmetics and many more. In order to
fulfilling the needs and demand of all customers and expanding the customer base, the
organisation also expanded their their offerings. It has covered mostly all the products
line which help in retaining the customers as they are getting all the required products
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and services on the same place. This company is also working as the manufacturer of
several items such as Tesco Value, everyday value, F&F clothing and many others. Price: It has been found that the management of Tesco is following the cost leadership
strategy under which the management focus on providing the products and services on
the prices as low as possible along with maintaining the best possible quality. Tesco has
develop the effective and positive relationship with their suppliers which help them in
continuously enjoying the economies of scale. By adopting this pricing strategy, Tesco is
also beating the competition caused by several companies such as Lidl, Alsi and many
more. These are the other companies and competitors which are working in the market of
United Kingdom in the same industry. It can be said that the management of Tesco is
planning a huge war in against the various discounters. Place: Tesco is using both the distribution channels i.e. online as well as offline. Tesco is
offering their products and services through various types of offline stores which include
Tesco Extra, Tesco Superstores, Tesco Metro, Tesco Homeplus, Tesco Express, and
Tesco Compact. These stores are more than 7000 in counting which are working in all
over the world (Lopatin and et. al., 2019). Tesco Direct is the online platform through
which the customers can buy the products and services from Tesco company online. It
has been found from the above discussion that the Tesco company is using various
channels in an effective and efficient manner for the purpose of reaching to the
customers.
 Promotion: In order to create the brand image and reputation, it is necessary for the
organisation to adopt effective promotional activities. Several of business organisations
are using various methods to reach to the customers such as televisions, magazines,
newspapers and many more (Themistocleous, C., 2018). Tesco is spending much higher
amount in traditional advertisements. In order to attract the customers towards the
business organisation, Tesco is providing several discounting and attracting offers to their
customers. In addition to this, they had also introduce a loyalty card programme under
which the customer will get the points on every purchase from any Tesco store and later
on, the customers can redeem that points for the purpose of getting extra discounts.
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How the marketing mix and other key marketing theory can impact the success of marketing
activity
The key marketing theory helps the business organisation in achieving the success by
providing higher level of satisfaction to their customers. It is possible only by applying STP
analysis which stands for segmentation, targeting and positioning. It refers to a three step process
which is being used for the purpose of development of actionable marketing strategies. STP
theory is playing an important role in Tesco as it help the management in identifying the target
customer and market and then provide the products and services as per the requirements of
customers (Lee, S.W., 2018). Management develop several of segments on different basis in
order to make the selection of their target market and customers. Below mentioned are the three
steps of STP in the context of Tesco: Segmentation: It is defined as the procedure under which the common traits and
identifiable factors of people have been identified in the entire market area. Through the
use of this step, a business organisation can develop relevant and engaged marketing
campaigns. There are several variables of segmentation which include geography,
values, behaviours, life stage, psycho-graphics and demographics. Geographic segment
of Tesco involve more than 14 nations which include United Kingdom and several rural
and urban areas. Demographic segment categories people on the basis of gender, age
group, education, occupation, income and many more. Psychographic segment include
the customers of traditionalists and contended conformers lifestyle along with the easy
going and determined personality. Targeting: It is the next stage in STP analysis under which a segment is picked up by
the organisation in which the management can get the best opportunities. Scope and size
of opportunities are depend on the size of selected segment (Kinoshita, Shirahata and
Misaki 2019). Large size of segment always include large number of people which leads
to the earning of higher profit. This level of STP analysis helps the organisation in
analysing the best opportunities for the purpose of using the data of customers. Earning
of profit is also depend on the selection of appropriate segment of customers. Customers
of any age group, any gender, any occupation, lower and middle income category
customers are the target customers or segment of Tesco. It has been analysed that the
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competitors of Tesco are targeting their customers as per their offerings such as
Waitrose which is supermarket chain offers products to the people of high class income.
 Positioning: Last and final stage of STP analysis is positioning which helps the business
organisation in developing the differentiation in their products and services from their
competitors. There are three factors which result in the successful positioning of
products and services i.e. symbolic functioning, experiential positioning and functional
positioning. Tesco has presented itself as a low price retailer by the use of advertisement
“Cheapest Price Everyday” (de Oliveira Rodrigues, D., 2021). It is best advertisement
lines which are attracting the customers towards the business organisation and earning
higher revenue.
CONCLUSION
From the above report, it has been concluded that the business organisations use the
marketing mix as a tool for analysing the current trends of market which help the organisation in
offering the products and services as per the demand and requirements of customers and generate
higher revenue. This tool is also used by the business organisation in knowing about the
strategies developed by their competitors, so that the management can develop higher effective
strategies and policies which help them in gaining the competitive advantage. Majorly,
marketing mix help the organisation in making the strategies related to marketing and developing
the products and services in the target market. Furthermore, it has been also analysed that the
STP is the best marketing theory which help the business organisation in making the target
market and making the marketing activities more successful. It also help the management in
knowing the process of placing the product and services in front of the target customers and
market so that they can provide higher level of satisfaction to their customers. This satisfaction
also leads to the generation of higher revenue along with increase in profitability of organisation.
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References:
Books and Journals
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 and et. al., 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.
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