Contemporary Issues in Marketing: Importance of Marketing Mix and STP Analysis for Customer Satisfaction

This report discusses the importance of marketing mix and STP analysis in contemporary marketing for customer satisfaction. It includes Tesco's marketing strategies and how they use the seven P's of marketing mix to increase customer satisfaction.

Contemporary
issues in
marketing

INTRODUCTION:
marketing can be defined as the process of activities which every organisation undertakes
in order to promote their products or any kind of services they offer to the end users. The process
of marketing includes many kinds of activities like advertising of the goods and services, selling
and delivering of the products to the end users like customers or the business as well. Marketing
if talk about as a discipline basically includes the overall actions of the organisation which they
perform in order to have healthy and great relationships wit their customers. When talk about the
most low level, the marketing activity helps in finding up the targeted audience in the market
who are interested for the products or the services that the company is offering. In this respective
report however, tesco has been taken into consideration which is a British multinational groceries
and general merchandiser retailer. The headquarter of tesco is in Welwyn garden city, England.
It was founded in the year of 1919 by Jack Cohen (Anning-Dorson and et. al., 2022). In this
report the concept of marketing mix and its importance has been discussed along with the other
theories which will help the company in their customer satisfaction.
TASK:
justify the nature and importance of the marketing mix within the marketing process.
Marketing mix can be defined as the set of actions which are basically used by the
company in order to promote their goods and services they produce as well as the brand image of
their company as well. There are four types of classifications of the marketing mix concept
which helps the company to more about their targeted audience and then can help them in
making appropriate marketing strategies in order to have profitability in the near future. The
marketing mix is important for any organisation as it helps them to understand what is that
quality of their products or the services is making their customer satisfied and what is not. In
context with tesco, it helps them to plan, develop, and perform suitable marketing strategies in
order to gain maximum customer attention and then they can use their strengths of the company
in a productive way as well. Marketing mix also helps the company in cleaning the mix creation
and also in the development of any new product in the new or already existing markets. It
increases the goods and service portfolio among the consumers and provide a basic guide tot the
business for its improvement in the required areas (Arrigo, 2022). Lastly, the marketing mix is

important as it gives a differentiation in their products from others in the marketplace and also
helps the company, like tesco to become comfortable in the dynamic change of the market.
Example of the marketing mix can be that suppose, Jane is a marketing manager for
tesco, they have to launch their own new product in the already existing market. Jane will do her
market research which will include which group of people uses that particular product more as
compared to other, or which income group people are able and at the same time wiling to pay for
the price they have set up. Jane's next step world be check upon the already existing competitors
of that new product in the market. For all of this, she has to use the concept of marketing mix
which contains studying of four different categories including the product, price, place, and the
promotion of that particular product in the market.
how the marketing mix and other key marketing theory can impact the success of marketing
activity with particular reference to customer satisfaction.
Marketing mix can be defined as the process which helps the company to focus on
different elements which helps in order to promote their produce and services among the
consumers (Bosah, 2022).
the seven P's of marketing mix are as follows:
 PRODUCT: the product can be defined as the good or the services which the company
actually produces. It can also be a combination of both goods as well as the services. The
goods and services are basically produced in order to meet the needs and wants of the end
users. Product in marketing not always means to introduce a new product but also to
transform and enhance the already existing product with some innovations which can be
like by the customers as well. In context with tesco, they deals in a huge variety of goods
which includes the clothing, stationary, foods items and many more. tesco also produces
its own product majorly in clothing. Hence to expand that, they will be needing
customers and hence they have to use marketing m,ix in finding out their targeted market,
which will help them in increasing their customer satisfaction level as well.
 PRICE: it is the income generating element in the marketing mix as it helps in doing the
marketing planning of all the cost needed (Hubina, and Chan, 2022). In context with
tesco, the cost leadership is a costly strategy to use. The company however wants to set

their prices of its product as less as possible yet not compromising on the quality of the
product. Hence they use price in marketing strategy to use to set the appropriate prices of
their products, keeping in mind their targeted audience as well. This will helps in
increasing the customer satisfaction derived from their product as the there is no
compromise in the quality and the price is also suitable.
 PLACE: place can be defined as the spot where the consumer actually purchases the
product or the services. It can however either be physical, or through online. Some
organisations however wants to take their store online as it is more convenient and cost
effective as well as there is no middleman and the businessman gets rid of the store
expenses as well. In context with tesco, it also has two main channels which includes the
online and the offline distribution. tesco has almost 7000 offline stores across the world
and online business which is called tesco direct (Knight and et. al., 2022). The customer
are satisfied as they are having two platforms to shop from. People who are comfortable
can shop from the stores and who are not can shop from the online store as well.
 PROMOTION: promotion can be defined as the communicating method used to make
the customers understand about the new product and how it is different and unique from
others. Promotion includes advertising which is a method of communicating with its
targeted audience and make them know about any new specifications made. In context
with tesco, they have a solid brand image in the market place which makes the
promotion process easy for them. tesco however uses television, newspapers and online
modes of promoting in order to make their product known. This will help them to reach
the targeted audience and then increase the consumer satisfaction.
 PEOPLE: the people of the company are basically forefront when talking to the end
users. Their interaction with them can be called the face of the organisation at that time.
In context with tesco, according to the data, it can be concluded that almost 420,000
people work for the company and plays a very important role in increasing their
productivity (Manoli and et. al., 2022). They motivate their employees to work with
efficiency which will result in the high quality of the products produced which in the end
increase their customer satisfaction as well.
 PROCESS: process can be defined as the set of activities which are being performed by
the organisation in order to achieve the organisational goals of the company. All the

organisations wants to have a smooth going process running in the business which is also
customer friendly. In context with tesco, in their offline stores it can be seen that the
customers basically picks up all the stuffs the want from the stores and with the use of
new technologies, they can now self checkout form the stores which is not at all time
consuming. Therefore, it increases the customer satisfaction as they wanted this change in
the counter centres.
 PHYSICAL EVIDENCE: physical evidence basically gives a tangible cues on the
shopping experience as well as for the quality of the goods which the organisation is
actually offering (Mishbakhudin, and Aisyah, 2022). It helps when any individual hasn't
brought anything from the store before, but need an assurance on their first purchase. In
context with the tesco company, the logo of tesco is full of colours. It makes it easy for
the consumers to identify the offline sores from far away as well. In addition to this, for
the offline stores as well, they have the great websites which is also very easy to use by
the consumers as well. This makes the customer more loyal towards the company and
increase their customer satisfaction as well.
STP ANALYSIS OF TESCO:
STP can be defined as the model which helps the organisation to examine the
performance of their produced goods or services in the targeted market. In other words, how the
consumers are reacting after using the particular product or the service. It also includes the
method of communication which is being done by the company with the customers in order to
make them understand the specifications and the innovations of their products. The
segmentation, targeting and positioning analysis of tesco is as follows:
SEGMENTATION:
DEMOGRAPHIC:
the tesco has to target their audience to which
they have to sell their products to the end
users.
GEOGRAPHIC:
in this factor, the tesco has to make a group of
individuals by keeping in mind their location
which basically includes the country or the
areas in which they are residing (O’Sullivan

and et. al., 2022).
PSYCHO GRAPHIC:
in this factor, the tesco company has to
concentrate on their consumers personality,
their taste and preferences and their personal
interest like hobbies, values and many more.
BEHAVIOUR:
in this, the tesco groups up the customers on
the basis of their behaviour like of their
purchasing habits, and their loyalty with the
company.
TARGETING:
this is the kind of strategy which is used by the organisations in order to break the big
market into the smaller pieces. This is because it helps the company, which in this case is tesco,
in order to fully concentrate on their targeted audience. They introduce the group of individuals
and and then try to understand them according to their choice of goods they purchase, which
make sit easy for the company to sell their items to those consumers only (Raimundo and et. al.,
2022). It can be said that the tesco's targeted audience can be of any age group and can be of any
gender as well.
POSITIONING:
positioning is the process which is used by the company's in order to differentiate their
product with that of the other competitors in the market place. Positioning, in other words can be
defined as the process of having a different and unique thing which is different from others. In
context with tesco, they have to make up with new innovations in their systems and their
products I order to attract more umber of consumers in the market.
The STP analysis however helps tesco to know its targeted audience and make
appropriate plans and strategies to make new advancement in their already existing products
which will increase their customer base and also their customer satisfaction as well, which will
make them loyal to the company and will help in increasing the profitability of the company a
well (Urmínová, 2022).

CONCLUSION:
From the respective report, it has been concluded that Marketing mix refers to the set of actions
used by the organization to promote their goods and services they produce. It is important for the
organisation as it helps them to identify their targeted audience and then take the strategic plans
into consideration for accomplishing their organisational goals as well. It includes the seven P's
including price, product, place, promotion, process, physical evidence and the people. Lastly, the
STP analysis is also discussed which also helps in finding the targeting audience and increasing
the customer satisfaction of the organisation as well as their profitability in the future.

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