Marketing Process & Planning: The Marketing Concept, Functions and Mix (Part 1)

This report discusses the concept of marketing in the 21st century and the role of marketing function in Tesco. It also covers the extended marketing mix of Tesco and evaluates its contribution to the company's success. The report includes recommendations for Tesco and a comprehensive media plan for a new product launch. The marketing plan includes clear and SMART objectives, marketing research, situational analysis, marketing strategies, and a media budget.

Higher National Diploma in Business
Management
Unit 2 Marketing Process & Planning
The Marketing Concept,
Functions and Mix (Part 1)
Marketing Planning (Part 2)
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Table of Content
Part 1: Briefing Paper
1.0 Introduction p
2.0 An explanation of the concept/definition of marketing in the 21st century
p
3.0 Description of the role of marketing function with examples from the
chosen organisation p
4.0 An analysis of how the marketing function works and interacts with other
departments p
5.0 An explanation of the extended marketing mix and examples from selected
supermarket p
2.0 An evaluation of how the marketing mix adopted by the selected
business (or business unit) contributes to the success of the organisation in
meeting their overall business objectives p
3.0 Recommendations p
9.0 Conclusions p
References p
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1.0 Introduction
The term marketing is used to refer to the systematized procedure following
which the companies worldwide do promotion of the goods and services that they
produce. In marketing there are serval functions that together forms its structure
when the interrelations of marketing department with the other departments such as
Human Resource, Sales, Purchases, etc. are included. In the current report a
concise discussion and analysation of various concepts of marketing with respect to
a retail grocery giant namely, Tesco will be provided. The role of marketing and its
interrelation with the varied other forms of business activities will be covered. An
examination of the market mix that the chosen organization follows which will be
performance which will be outlining the company’s goals. A media plan will be
prepared for supporting it.
2.0 An explanation of the concept/definition of marketing in
the 21st century
The traditional explanation of marketing is a compulsory or mandatory
function that an organization performs by considering it one of its vital part enabling it
to deliver customer the value which it targets at through its products and services. A
product whose manufacturing, processing and updating is entirely completed is of no
use until the company actually sells it and the product reaches the customer. This
process of selling is made possible by the organization through its marketing
activities. This traditional marketing concept has changed a lot through constant
evolution over the years and is still evolving in the current era of 21st century. The
current definition of marketing describes marketing as a totality of all the things that
are performed by an organization for providing and maximising the customer
experience. Thus in the modern times in marketing, products are not merely
marketed but also modified according to the changing needs of the customers and
their perspective. In addition to this marketing in its widest sense also comprises the
set of processes that leads to satisfaction of the organization’s main stakeholders
and building of good and sound relations between the management and the
customers, suppliers of the company. There are certain technicalities that are linked
with the marketing in the current era, contributing to making of its marketing
processes faster and efficient.
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3.0 Description of the role of marketing function with
examples from the chosen organisation
The role of marketing function performed by an organization is helping or
contributing in the determining of those product lines that have greater potentials of
being successful. The products are sorted and categorised as per the norms that
meets the demands and also the needs of varied types of customers. Connecting it
with the chosen company, Tesco’s organizational structure the marketing
department of the company plays all the functions related to the promotion of
different range of products using the differentiation strategy to ensure the company’s
competitive edge.
The Roles Performed by the Marketing Department of Tesco
Marketing Strategy of Tesco describes the way it functions into varies cultures
and nations. The marketing personnel of the company has set effective standards for
the domestic as well as international Marketing plan of Tesco. The strategies to
marketing keep in place company’s in country and outside the country businesses to
compete with the rivals efficiently. One of the role of such department at Tesco is to
research and identity the needs by an ideal customer. This is done through various
paths such as filling of questionnaires from customers and taking feedbacks on
regular intervals. The determination of market segmentation and targeted audience
while formulating the branding strategy is also done by Tesco’s marketing
department. The local marketing approach is followed by the marketing department
of the Tesco for expanding globally over the years extensively.
4.0 An analysis of how the marketing function works and
interacts with other departments
There are a series of functions that are performed by an organization out of
these wide range of functions one of the important function is the marketing function.
This functions that are performed by the organization’s marketing department
networks with the functions of different departments. The operations management is
one of the department of Tesco. This department is concerned with the administering
of all functions of the company that relates to the starting of product manufacturing to
its ultimate selling. This department is established for ensuring the functions of
organization are conducted smoothly with efficiency. The functions are to ensure
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timely availability of materials and other factors of product, testing the materials for
ensuring the production of good quality products. The marketing department is
interconnected with this department as the personnel of the department needs
updates regarding the flow of products to market accordingly.
After the operations management function of the company, the waste control
management function is interrelated with the marketing function. This function of the
company is aimed at the controlling of waste that generates in the process of
production. There are various reasons that lead to wasting of resources such
ineffective use of resources and also their over use. The corporate social
responsibility objects of the company should be adhered by the marketing
department employees of the company. The HR department of Tesco is concerned
with the finding and putting up the right talent at the right vacant position of the
company. The marketing department of the company is related with the human
resource department to have the skilled people in the department.
5.0 An explanation of the extended marketing mix and
examples from selected supermarket
Price – The value of the product which is decided by the company and paid by the
customers to enjoy and experience it is known as price of the product. it is one of the
most crucial factor that effects the revenue of the company. Tesco at all times
ensures that the prices of the products offered by the company is competitive in
market.
Product – The tangible as well as the intangible offerings of the are classified as its
product. Various products are available in the market for the customers to make their
choice of buying. The product benefiting the customer most, gets selected. Hence,
Tesco offers those products that benefits the customer to secure its revenue from
sales.
Place – The place element of the marketing mix means the place that is used for the
purpose of storing and distributing the products of the company. Tesco sells its
products through direct selling from its physical stores and also through online
medium.
Promotion – Promotion is the sum total of all activities through which the company
communicates to its customers. Tesco as a part of promoting the products of the
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company uses several marketing tools such as brand awareness, advertising, social
media marketing, etc.
People – People means all the humans that are associated with the business
activities of the company and helps in giving shape to such functions, example the
suppliers, employees and customers of the company.
Process – Process refers to the series of activities that are followed by the company
starting from the planning for the production to the ultimate reach of the product into
the hands of the customers. For happy customer journey the process should be
smooth and efficient.
Physical Evidence – The aspects that create a sort of proof of the brand’s existence
are covered in the physical evidence element. The packaging used by Tesco, its
branding, product quality is all its physical evidence that enhance its customers’
experiences.
2.0 An evaluation of how the marketing mix adopted by
the selected business (or business unit) contributes to the
success of the organisation in meeting their overall
business objectives
Price – The pricing strategy that the Tesco use is the competitive pricing strategy.
Adapting to this type of strategy involves company I regular reviewing and examining
of the products’ prices helping the company to have high sales volume and maintain
its competitive edge.
Product – The company also constantly reviews and monitors its products and
services to bring required changes into them further helping it to have maximum
level of customer satisfaction.
Place – Various strategies are adopted by Tesco to make sure that its distribution
chain is effective and efficient. This helps the company to ensure that the products
reach the market at the right time.
Promotion – The promotional activities of Tesco such as emphasis advertising over
television and social media platforms facilitates its communication with the
customers.
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People – Tesco always cares for its staff members in the policies and strategies it
develops it stimulates positive working culture. This is the reason behind company’s
happy employees and customers interacting with them.
Process – The process that the is procedures that are followed at Tesco are made
clear to its workers, enabling the company to maximise the satisfaction level of
consumers.
Physical Evidence – At the stores of Tesco a positive environment is created so that
the customers provide good reviews are circulated over the social media and the
website of company.
3.0 Recommendations
There are few areas on which the company can do better and be a leading
brand in the grocery supermarket sector. The reach of Tesco globally is not as per
the requirements; this is because the target market of the company in its home
country UK mainly. The company thus, cannot gain the effective level of audience
attention which is not good for its performance, especially in the times when UK’s
economy is more recession prone.
The need to explore new markets is recently realised by the company. It is
exploring, entering into new markets on the basis of changes in the trends of
industry. It is advised to the company to emphasis more over the market research.
The products of the company are recommended to be segmented on the basis of the
latest research. The market research will help to determine and highlight the market
size which will be appropriate for the company’s capacity and aligning of all in efforts
by the marketing cell.
Further establishment of stronger base for online selling is beneficial for
company. The prime focus of the company is to strengthen its international
expansions. Recommended strategy to the company is undifferentiated targeting to
attain the benefits from the strong relations with small producers or businesses. In
the current era the trend of e – commerce is at peak to avoid the consequences of
the trend effective marketing positioning is required.
9.0 Conclusions
Concluding the Part 1 of the assignment it can be said that the concept of
marketing has evolved in the current century largely. The report has described the
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role of marketing function in Tesco. The functioning of company’s marketing
department and its interactions with the other departments have been covered in the
report. The extended marketing mix of Tesco has been explained and evaluated in
context of its contribution to the success of company. Lastly recommendations to
Tesco and the justifications with respect to it have been included in the report.
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References
Stadnyk, V. and et.al., 2020. The concept of marketing of balanced development and
features of its implementation in the food market. Agricultural and Resource
Economics: International Scientific E-Journal, 6(1868-2020-1687), pp.80-95.
Park, Y. W., Voss, G. B. and Voss, Z. G., 2022. Advancing customer diversity,
equity, and inclusion: Measurement, stakeholder influence, and the role of
marketing. Journal of the Academy of Marketing Science, pp.1-24.
Al-Zyoud, M. F., 2018. Social media marketing, functional branding strategy and
intentional branding. Problems and Perspectives in Management, (16, Iss. 3),
pp.102-116.
Pal, C., A Study on Marketing Mix in Context of Dynamic Marketing
Concept. MARCH THROUGH SEARCH, p.180.
Pheunpha, P., 2021. The Influence of Corporate Image and Marketing Mix on
Consumer Motives: An Empirical Study of MK Restaurants. ABAC
Journal, 41(4), pp.43-66.
Rosnizam, M. R. A. B. and et.al., 2020. Market opportunities and challenges: A case
study of Tesco. Journal of the Community Development in Asia (JCDA), 3(2),
pp.18-27.
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Table of Content
Part 2: Marketing Plan
1.0 How the strategic marketing plan links with the overall organisational
mission, corporate strategy and objectives p
2.0 Clear and SMART marketing objectives p
3.0 Marketing research to support the new product line launch p
4.0 A situational analysis p-p
4.1 Marketing audit, making use of appropriate analytical tools including
SWOT, Pestle and 5C analysis p
4.2 A competitor analysis including the market segments p
4.3 Sub-segments p
4.4 Articulation of the new product value-proposition in the eyes of the
customer p
4.5 Development of the marketing strategies applied to the extended marketing
mix p
4.6 Setting of an overall marketing budget, including allocation of planned
spend p
4.7 Tactical actions p
4.8 Identifying appropriate control and monitoring measures to ensure
achievement of objectives including metrics to measure success such as
Return on Marketing Investment (ROMI) and Customer Lifetime Value (CLV)
p
5.0 A comprehensive media plan that supports the planned marketing
campaign p-p
5.1 A media budget p
5.2 Recommendations and rationale for selected and integrated multi-media
activities within the set budget that meet the marketing objectives p
5.3 Appropriate digital, offline and social media channels for communication
p
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5.6 Full justification for a multi-media plan based on quantitative and
qualitative criteria p
References p
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1.0 How the strategic marketing plan links with the overall
organisational mission, corporate strategy and objectives
Strategic marketing plan refers to the method that helps a business enterprise
to formulate and hike its sales strategies effectively with the aim at becoming the
most profitable business in the complete industry (Lo and Campos, 2018). The
marketing plan of Tesco is well – designed to be connected with the mission,
corporate strategy & objectives of the company. This interlinking enable the
company in launching a premium range of products, increasing the overall sales of
the company.
2.0 Clear and SMART marketing objectives
 To increase revenue by 15 % through the launch of the premium range
products.
 To utilize its marketing techniques for hiking profits by 10 %.
 To maximize the level of consumer satisfaction through continual
advancements in the products and services it offers.
3.0 Marketing research to support the new product line
launch
Marketing research or market research is the term used to refer to the
process by which the possibility of success of new offering of the company is
determined, it involves research on the basis of potential customers. The new
product requires market research to be conducted by the researchers concentrating
focus over all the aspects of the product (de Ruyter, Isobel Keeling and Ngo, 2018).
Marketing research will enable Tesco in identifying the expected demand for its new
premium products range. Relevant strategies help the company to conduct
marketing research and follow the trends prevailing in the market.
4.0 A situational analysis
It is the process by which varied tools and techniques are applied for the
purpose of analyzing both the internal and external business environments.
4.1 Marketing audit, making use of appropriate analytical tools
including SWOT, Pestle and 5C analysis
SWOT Analysis
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Strengths – The major strength of Tesco is its human resource, the company is
having highly skilled and talented employees. Financial performance of the company
is strong consistently over the years. Another strengths of the company are its
technological focus and innovations.
Weaknesses – Change in the leadership style of the company is one of its
weaknesses (Hatzijordanou, Bohn and Terzidis, 2019). Poor inventory management
and shortage of products are also its weaknesses.
Opportunities – High unemployment rates provide opportunity to the company to
acquire the required talent in the organization at lower rates. Further online growth of
grocery sales is a major opportunity.
Threats – Threats to the smooth operations and productivity of the company are
economic crises and increasing industry competition.
PESTLE Analysis
Political Factors – The political instability of the regions in which company operates
will impact the operations of the company negatively. Increase in taxes by the
government will also be adverse for the business.
Economic Factors – High inflation rates and interest rates can impact the profit
earnings of the company.
Social Factors – Increasing trends to purchase online will be highly advantageous
for the company’s attempts to sell more through online platforms. The increase in
acceptability by society provides space for company to innovate more often.
Technological Factors – Adopting to new advancements in the field of technology
faster by the company helps is securing its profitability in long run.
Legal Factors – Compliance to the laws that are applicable on the company in all its
processes will help it to ensure the high profit earnings (Köseoglu and et.al., 2020).
Environmental Factors – Increasing awareness of the customers with respect to
the adverse effects of the businesses’ operations over the environment will create
the sense of appreciation among the customers for the sustainable approaches of
Tesco.
5C Analysis
Company – Tesco is a UK based multinational that deals in consumer based
products. It is a chain of supermarkets selling grocery products almost all over the
UK.
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Customers – The satisfaction of customers is very important for the profit earnings
and sustainable existence of the company. Customer satisfaction is at the priority of
the company.
Competitors – They have direct impact over the policies ad strategies that the
Tesco formulates (Fahey, 2022). The company always ensures that it consider the
market competitive into all the decisions that are taken to ensure the competitive
stand of the company.
Collaborators – There are various parties whose inclusion into the business
activities is necessary for the smooth completion of such activities. Collaborators
such as suppliers are essential for the development and growth of company.
Climate – Tesco follows all the legalities and guidelines that helps the organization
to adhere its environmental obligations.
4.2 A competitor analysis including the market segments
Porter’s Five Forces
Competitive Rivalry – The company faces high level of competition from the other
major competitive companies such as Asda and Sainsbury.
Power of Suppliers – There are a large number of suppliers in the market, hence
the bargaining power of suppliers is low.
Power of Customers – The bargaining power of customers is low for Tesco as the
company offers products at low prices attracting more loyal customers.
Threat from New Entrants – There are not many barriers to enter in the industry but
the existing competition in the market is much higher for a new entrant to survive it.
So the threat from new entrants is low.
Threat of Substitution – Affordability of the products and innovations by the
company keeps the threat of substitute products as low.
4.3 Sub-segments
Segmentation – On the basis of the age the selected segment is demographics.
Targeting – People of age range 20 – 50 years are targeted in the demographic
segment.
Positioning – The firm positions its new launch products as luxurious products.
4.4 Articulation of the new product value-proposition in the eyes of
the customer
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The statement describing new products features and their applicability in
solving the issues faced by customers is defined as value proposition. Value
Proposition of the premium products range launch by Tesco is “Eat healthy & Stay
healthy”.
4.5 Development of the marketing strategies applied to the
extended marketing mix
The ideologies based on which a company promotes its products creating
brand awareness are known as Marketing Strategies. Tesco needs to formulate and
implement such marketing strategies that enables it to grab the targeted audience
attention and satisfy their needs (Chiu and et.al., 2018). Tesco will promote its new
products through both online and offline mediums.
4.6 Setting of an overall marketing budget, including allocation of
planned spend
The marketing budget of Tesco needs to be prepared for promoting its new
premium food products. The accurate planning of the company will help in
understanding and identifying the funds that are required by the company. The
purpose of such budget is to influence the customer to buy company’s product,
helping it to earn profit. Smart objectives, measure to estimate returns on marketing
investment will help in analyzing the success of the company.
4.7 Tactical actions
The importance of tactical actions lies in the assistance to the company in
promotion of its products into different geographical areas. Tactical actions taken by
Tesco with respect to launch of new range of premium products is setting of smart
goals, considering different methods to marketing and effective implementation
strategic actions. As a part of tactics the company will use channels such as blog
posting, visual advertising, social media marketing, etc.
4.8 Identifying appropriate control and monitoring measures to
ensure achievement of objectives including metrics to measure
success such as Return on Marketing Investment (ROMI) and
Customer Lifetime Value (CLV)
To access the overall product launch by the company it needs proper models
or measures to effectively analyze the results.
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Return on Marketing Investment
The type of contribution providing details regarding the efficacy of marketing
function of Tesco and leading such functions into correct path is return on marketing
investment. ROMI is a tool helps in identifying investment and its associated risk in
online marketing is known as the return on investment matrix (Chiu and et.al., 2018).
Using his marketing campaign’s effectiveness can be measured and assistance in
making marketing decisions is provided. Growth is sales minus marketing cost, result
divided by marketing cost is the formula that is used for such computation.
(Growth in Sales – Marketing Cost) / Marketing Cost = ROMI
Customer Lifetime Value
It is another tool used for purpose of getting knowledge of customer needs
and wants. The formula used in this as follows –
Customer Lifetime Value = Average Purchase Value * Average Purchase Frequency
* Average Lifespan of customer
Where,
Average purchase Value = Total revenue / Total Number of purchases
Average Lifespan of Customer = Sum of Customer Lifespan / Number of Customer
Average Purchase Frequency = Number of Purchase / Number of Unique Customer
5.0 A comprehensive media plan that supports the planned
marketing campaign
5.1 A media budget
Media Channels October November December
Blog 9£ 12£ 17£
Visual Advertising 150£ 100£ 150£
SMA 45£ 20£ 15£
Design Software 30£ 35£ 40£
Marketing 20£ 20£ 20£
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5.2 Recommendations and rationale for selected and integrated
multi-media activities within the set budget that meet the marketing
objectives
Tesco is recommended to keep its marketing techniques more focused over
the social media form of marketing. This is because of the reason that company
should keep in mind the current trends that are prevailing in the market. In the
current era people spend a significant amount of their routine hours on the social
media (Ortega-Toro and et.al., 2019). So the possibility of the company to engage
with its potential customers’ increase to a great extent. The company can hire few
social media influencers so that the customers are attracted easily.
5.3 Appropriate digital, offline and social media channels for
communication
The current world is highly tending towards the digitization of processes. It
has become highly important for the company to go with the trend. The company
uses emails, video calls, SMS, etc. as a part of digital communication (Ingle and
Mahesh, 2022). For offline communication mediums such as newspaper
advertisements, magazines, press conferences, etc. Social media communication
channels used by Tesco are Facebook, Instagram, Twitter.
5.6 Full justification for a multi-media plan based on quantitative
and qualitative criteria
The quantitative results of using multi – media plan are in the number of
responses received, number of people viewed posts, number of followers, etc.
(Rafa’ti and et.al., 2019). The qualitative criteria are inclusive of the insights
collection and way customers get attracted to the brand effectively.
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References
Chiu, C. H. and et.al., 2018. Optimal advertising budget allocation in luxury fashion
markets with social influences: A mean‐variance analysis. Production and
Operations Management, 27(8), pp.1611-1629.
de Ruyter, K., Isobel Keeling, D. and Ngo, L. V., 2018. When nothing is what it
seems: A digital marketing research agenda. Australasian Marketing
Journal, 26(3), pp.199-203.
Fahey, L., 2022. Competitor intelligence: enabling B2B marketing strategy.
In Handbook of Business-to-Business Marketing (pp. 138-158). Edward Elgar
Publishing.
Hatzijordanou, N., Bohn, N. and Terzidis, O., 2019. A systematic literature review on
competitor analysis: status quo and start-up specifics. Management Review
Quarterly, 69(4), pp.415-458.
Ingle, P. V. and Mahesh, G., 2022. Construction project performance areas for
Indian construction projects. International Journal of Construction
Management, 22(8), pp.1443-1454.
Köseoglu, M. A. and et.al., 2020. Competitor intelligence and analysis (CIA) model
and online reviews: integrating big data text mining with network analysis for
strategic analysis. Tourism Review, 76(3), pp.529-552.
Lo, F. Y. and Campos, N., 2018. Blending Internet-of-Things (IoT) solutions into
relationship marketing strategies. Technological Forecasting and Social
Change, 137, pp.10-18.
Ortega-Toro, E. and et.al., 2019. Design, validation, and reliability of an observation
instrument for technical and tactical actions of the offense phase in
soccer. Frontiers in psychology, 10, p.22.
Rafa’ti, M. and et.al., 2019. Assessment of Performance and Position of the
Mainstream Media in the Socialization of BARJAM) Joint Comprehensive Plan
of Action () Keyhan, Hamshahri and Etemad Newspapers. Political and
International Approaches, 9(4), pp.35-60.
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