Marketing Strategies and Models

The assignment provided is a comprehensive analysis of marketing strategies and models used by companies to attract customers and increase sales. It discusses the importance of marketing in businesses, various marketing theories and models such as AIDA, Porter's generic competitive strategies, push and pull marketing, and the role of digital marketing in engaging customers. The document also includes references from books and journals, online sources, and illustrations to support the discussion.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Research into the promotional tactics of Tesco......................................................................1
TASK 2............................................................................................................................................6
Push and pull strategies..........................................................................................................6
AIDA model...........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is a process and activity of promoting products and services of the company.
On the other words it is an activity of creating values and increasing sales in order to achieve all
the goals of the company. Tesco is a British general merchandise and multinational groceries
retailer company. Headquarter of this company is in England, United Kingdom. In the term of
gross revenue this company is the 3rd largest retailer in the world. This study will show different
techniques and strategies of marketing that the company uses in order to increase and promote
their products. It uses various marketing theories of marketing for attracting more customers
towards its products. The company makes the strategies according to information that it collects
from marketing which may related buying behaviour and needs and demands of consumers.
Push and pull strategies, AIDA model are used by the company as a promotional strategy (Baker,
2016). This report also defines its past and current concept of marketing and evaluate the results
which it receives and take measurement and effective solutions for that.
TASK 1
Research into the promotional tactics of Tesco
Marketing
Marketing is one of the major function for Tesco. It includes all those activities which
foster and help them in the growth of its business by promoting and increasing brand value of its
products and services. The main objective of the company is to satisfy their customer needs by
providing good quality products and services.
Tesco is a British multinational groceries and retailer so it is important for them to use the
best strategy in order to increase their sales and maximize profits. It is the 3Rd largest retailer in
the world so being in a competition it uses effective and attractive marketing strategies. The
company uses social media marketing and sales promotions. It also organises some events and
marketing campaigns in which it tells customers about their products effectiveness.
Marketing work as a science and art because it provides some principles which guide
manager in their management process. It is art also because in this function, every situation and
problem need to be solved in an effective manners and in different manner. It always exchanges
values to each other.
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Marketing is a purposeful activity of Tesco. It focuses on achieving the organisational
goals by satisfying all the needs of customers. It becomes difficult sometimes to satisfy everyone
in the market so Tesco select target market and satisfy each market.
Marketing can attract, capture and nurture of customers by providing the best quality
products. It is a goal oriented strategy. With the help of this the company and marketer can
achieve their determined goals and objectives.
The communication process is the best way of marketing which Tesco uses.
Communication play a vital role in the company. Miscommunication is a barrier in the growth of
the company. The main aim of using this theory is to convey message and informations to
customers. Feedback is the way of communicating and solving the problems. When customers
receive message then they respond to it by feedback cycle whether they liked products or if they
wants to modify in their products etc. the most effective communication occurs in term of
resource expended. Sometimes communication is effective but not efficient. There are different
elements involved in communication process such as: sender, message, encoding, channel,
receiver, decoding and feedback.
Characteristics of marketing
Marketing is the most important function for any type of company as it helps them in
promoting their products and services. It not only helps in building brad awareness of the
company but also it maximizes profits, sales and engage customers. There are some importance
and characteristics of marketing that include:
Customer engagement: It is the key and important reason of the success of the
company. Customers play a vital role in the company because they are the reason of increasing
sales as they buy products from the company. It is only possible when the customers are engaged
with the firm and are loyal towards the organisation. Marketing helps in solving all the problems
which customers have regarding products and the company. Marketing helps customers in face
to face interaction with seller of the services and products (Budimansyah and et.al., 2019).
Customer orientation: The main aim of marking functions is to satisfy all the needs and
demands of the customers. It makes all the decisions on the basis of customers which impact on
the company. Tesco try to make the products that are best suited to its customers so it can say
that every activity of marketing is customer oriented. It carried out the best and effective
marketing campaigns which concentrate on customers only.
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Continuous activity: Marketing is a continuous activity that are designed to promote,
plan and distribute products and services. It is the main characteristic of marketing function. It
addresses the current as well as future needs of the customers. It uses effective communication
The message and informations are transmitted through the best channel that link and connects the
sender with receiver. It may be transmitted through computer, telephone, television. Receiver is
the person who gets the message and the message is meant for. It may be listener, reader or a
viewer ((Tuten and Solomon, 2 017).). Any negligence on behalf of receiver create a barrier and
ineffectiveness of communication.
Promotional mix and tactics
There are various reason of the success of Tesco. Marketing strategies is the important
reason of the success of the company. It makes effective strategies related marketing for
promoting its products and services. The main aim of this marketing strategy of Tesco is to gain
the trust of its stakeholders to the brand. Promotional mix is a technique of a firm to
communicate with various potential customers. There are some elements in its marketing mix
and strategies that includes: sales promotion and social media marketing etc.
Advertising: Tesco use print and media advertising in its marketing strategy because
they are the tested and trustworthy channels to send marketing message to potential consumers.
It has increased its efficiency on print and media advertising. It advertises through posters,
billboards that are very effective to deliver the message related to products and services to their
customers.
Sales promotion: There are various form of sales promotion that Tesco uses in its
marketing strategies and promotional tactics such as: Free gifts, point of sales materials and club
card. It is the main strategy to attract customers as it offers free gifts to its customers like buy one
get one free that help them in increasing their sales and specific range of products (Caber and
Albayrak, 2016).
Personal selling: Personal selling is another way of promoting products. For personal
selling Tesco focus on maintaining customer relationship. It involves the interpersonal relations
between supplier and buyer. It has some disadvantages and limitations as the company need to
hire and employ staff to attract and sell its products to customers which becomes more expensive
and costly. Example of personal selling of Tesco is it uses its staff in the shop to advice its
customers that what should they buy and what they want to buy.
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Customer relationship management
Customer relationship management is another strategy of retaining customers. Tesco tries
to sustain retention of its customers and try to amplify the loyalty of customers. There are
different tactics which are applied by Tesco to manage customer relationship successfully.
Objectives of Tesco of maintaining customer relationship are:
 To recognise each type of customer and improve their satisfaction.
 To access the values and needs of the customers to rise the revenue and growth of the
company.
 To develop strategies in order to achieve all the objectives.
It uses multi-channel client management strategy for CRM and to achieve the goals. In this
strategy it focuses on coordination, deployment, design and assessment of channels in order to
improve and increase the value of customers. It also analyses customers and according to this it
grouping them into different segments (Yan, Zeng and Zhong, 2015).
Segmentation, targeting and positioning
There are different type of people and it is not possible for Tesco to attract all type of
people towards their products and the company because they have different needs and tastes.
Therefore, it focusses on segmentation and targeting strategies. Market segmentation divide
people into group according to their wants, needs and criteria.
Segmentation: Segmentation can be divided into demographic, geographic and
behavioural basis. Tesco divides people into two group. One group of consumers who are
looking for value and the other group of customers who are quality conscious. In the type of
Demographic segmentation, the company divides the market into group that are based on gender,
age, family size, income, occupation, education, race, generation and nationality.
Psycho graphic segmentation is based on lifestyle, personality characteristics and social
class. Behavioural segmentation divides the market into group on the basis of attitudes,
knowledge and respond to a product (Chaffey and Ellis-Chadwick, 2019).
Targetting: After the process of segmentation and divide the market into smaller group,
the company requires to target all these markets. Targeting is process of evaluating each group
and segment in order to attract them towards the company. There are mainly three types of
targeting theories such as: Concentrated, undifferentiated and differentiated.
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Positioning: Implementing the target market and each segment and concentrate on the
marketing mix which includes product, price and promotion. Positioning is about the reaction of
customers for products and its value. The main objective and aim of Tesco of positioning is to
serve products and services to each segment at their store or make shopping at their campuses
stores. It becomes easy and convenient for students and customers as it saves their time and
money.
Porters generic competitive strategies
Porters competitive strategies refers and defines the way and method of competing of the
company. The main aim of using this strategy is to achieve sustainable competitive advantage.
There are three main generic strategies that a company use for achieving average performance in
the same industry such as: cost leadership, differentiation and focus.
Cost leadership: A company can take advantage of cost leadership when it uses and
reduce its cost of producing goods and services. Sources of cost advantage depends upon the
structure of the company. When a company sustain cost leadership then it can be counte above
average performer in this industry.
Differentiation: In this type of strategy the company wants to be unique and different
from another company. For that it has one or many attributes that several buyers in this industry
perceive important. The company can achieve success in this strategy if it has creative and highly
skilled product development staff members. The company can face problems and risks by
competition and changes in the customers’ needs and tastes.
Focus: In this type of strategy, the company and focuser select each segment and group
in the industry. In cost focus, the company wants and seeks cost advantage in its target segment.
The company enjoy the higher degree of customer’s loyalty if they use focus strategy. There are
some risks involved in focus strategy like changes in the target segment and imitation (Kotler
and et.al., 2015).
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TASK 2
Push and pull strategies
It is promotional strategy which is used by the company in order to get products and
services to the target market. Push strategy means to push products and services at a customer.
On the other hand, pull strategy is to pull customers towards services and products of the
company.
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Illustration 1: Porter's generic strategy
Sources: (Porters-generic-competitive-strategies, 2016.)

Push strategy: Tesco uses push strategy for promoting and selling their products and
services to the customers. The main objective of this strategy is to make value and awareness of
brand and push that brand to the customers. It uses various strategies for this that includes free
trial offers, monetary and non monetary allowances etc. It is an opportunity for retailers to
increase their productivity. It is called promotional strategy. The term push is used because the
marketer and the company attempt to push their products to their customers. Most of the
businesses generally use push marketing strategy when its launch a new product and it wants to
expand its business. The main aim of Tesco of using this strategy is to make consumers aware
for their products. It is suitable when the brand loyalty is low and when the company wants to
expand its new products (Lovelock and Patterson, 2015). Tesco wants to expand its business in
another country so this strategy help them in increasing sales by attracting them towards theory
good quality products.
Pull strategy: Pull strategy is just opposite of push strategy. In this strategy Tesco tries to
get customers to their stores and shops. The term pull is used as marketer tries and attempt to
pull its customers towards the company. For this strategy Tesco uses common sales tactics that
includes mass media promotions, advertised sales promotions etc. this strategy is useful and
comes in force when customers already know that what they want to buy. Pull strategy needs a
lot of investment on advertising. Advertising is the only way of attracting customers towards the
products and services of the company. The main objectives of using this strategy is to encourage
customers in order to purchase the products and make brand value. It is suitable when the
company's brand loyalty is high.
Effectiveness of this strategy is it helps Tesco to attract the customers towards the
company's products and services and encourage them to buy that products. Tesco provides the
best quality products and offer some benefits like buy one get one free and give sample products
in order to create interest and attract them. This strategies is beneficial for both customers and
the company as it provides its products to customers which consume their time and cost. With
the help of pull strategy it attracts customers which consume the company's time.
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AIDA model
The AIDA model is stands for attention, interest, desire and action. It is the best model
which many companies use in its marketing functions. It describes the process and steps which
helps to explain the marketing communication message that involves customers in brand choice.
It describes 4 stages in which consumers needs to go through to become a customer. The main
aim of using this model is to attract attention of customers and generate interest of customers in
the services and products of the company (Muchiri, 2016).
Attracting attention: In order to boost Tesco's brand awareness, the company needs to
research and target customer's problems and passions. According to that problems and research
they have to create contents that can solve their problems and can concentrate on their passions.
Through social media and Google, customers try to know and discover about contents of the
company. Content should be appropriate and in an effective manner that can grab the attention of
the customers. If contents grab the attention of potential customers, then target and potential
customers become curious about the product and the company's processes.
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Illustration 2: Push and pull marketing strategies
Sources: (Pull and push marketing strategy, 2018.)

Generate interest: When customers are interested in the company's products then they
want to know more about that products, services and brand. It is the toughest part for the
company to create interest of customers towards the products of the company. This strategy of
model defines and explains the way of attracting customers and to present the benefits of the
services and products. For maintaining interest, the company should provide the details and
whole information related products like product description on websites.
Desire: It is another main strategy of this model to stimulate desires. For stimulating
desires and interest of customers, the company focus on satisfying all the needs of the customers.
It is very important for every type of company to provide the services and products according to
requirements of the customers. To create desire in customers to buy the products.
Action: It is the final step and strategy of this model. Company needs to take actions.
When the product completely satisfies customers then the company needs to take actions. After
creating desires about to make a purchase, the firm provides the sample products for using them.
Before taking the final decision it supports customers by providing the best quality products.
Retailers can increase their productivity and profitability by using this model of marketing.
The effectiveness of this model is to develop approaches that can be used to optimize
processes. It is the hierarchical model which impact on decision making process. It can be
effective if customers take interest for products of the company as it can maximize the profits
and sales of the company (Ryan, 2016). Tesco uses this model in order to maximize their sales. It
is the best marketing strategy which help them in effective marketing and attracting more
customers towards their products. The company takes appropriate actions after generating
interest of customers for buying their products. For generating interest Tesco provides the best
quality products and include all those features in their products that are required by the
customers. Hence, this strategy of marketing is very effective and useful.
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CONCLUSION
From the above study it has been concluded that marketing functions plays an essential
role in any type of company. Theories and model of marketing as a promotional strategy is used
by the company in order to attract customers towards the services and products of the company.
It used different modes and way of promoting products like social media marketing, personal
sales promotion in which it focused on building relationship with customers. Main aim and
objective of all that strategies that it has used is to increase sales and maximize profits of the
company. It segmented and targeted each market segments for satisfying all type of people on
the basis of age, financial statement and nationality. It has many characteristics of marketing as it
helped in engagement of customers with the company, it also satisfied all the needs of the
customers and it increased the revenue and sales of the firm.
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Illustration 3: Marketing strategy
Sources: (AIDA model, 2018.)

REFERENCES
Books and journals
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Budimansyah, D. and et.al., 2019, February. AIDA Model PC Extension (Attention, Interest,
Desire, Action, Based Projectcitizen) to Address the Practice of Bullying among
Students in the Regency of Pangandaran. In 5th UPI International Conference on
Technical and Vocational Education and Training (ICTVET 2018). Atlantis Press.
Caber, M. and Albayrak, T., 2016. Push or pull? Identifying rock climbing tourists'
motivations. Tourism Management. 55. pp.74-84.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Kotler, P. and et.al., 2015. Marketing. Pearson Higher Education AU.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Muchiri, M.N., 2016. The Effectiveness of Marketing Mix Strategies On Performance Of Kenol
Kobil Limited (Doctoral dissertation, Thesis. University of Nairobi).
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Yan, H., Zeng, J. and Zhong, G., 2015. The push–pull strategy for citrus psyllid control. Pest
management science. 71(7). pp.893-896.
Online
AIDA model. 2018. [ONLINE]. Available through <https://www.communicationtheory.org/aida-
model/>
Porters-generic-competitive-strategies. 2016. [online]. Available through:
<http://www.quickmba.com/strategy/generic.shtml>
Pull and push marketing strategy. 2018. [ONLINE] Available through
<https://www.dmn3.com/dmn3-blog/why-you-need-push-marketing-and-pull-
marketing/>
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