Marketing Tools: PESTLE, SWOT, Promotional Mix, and Pricing Strategies

This report explores the importance of marketing tools like PESTLE and SWOT analysis in market planning. It delves into the significance of promotional mix in producing effective promotional material and analyzes the stages of new product development. The report also examines various marketing/distribution channels, including direct selling, selling through intermediaries, and dual distribution. It evaluates three methods of promotion (advertising, public relations, and digital promotion) and discusses the key characteristics of price competition. Finally, the report evaluates the effectiveness of three pricing strategies: premium pricing, competitive pricing, and price skimming.

Marketing tools

Executive Summary:
The PESTLE and SWOT analysis are key success factor for the organisations in competitive
world. The finding from the analysis helps the professionals working in the organisations to
take important decisions regarding future plans. It helps the organisations to tackle the
competition. Promotional mix gives information about the audience targeted by the
organisation. The promotional material is chosen accordingly. There are various kind of
marketing or distributing methods followed by the organisation in order to come up on top in
the marketplace. It also focuses on the pricing strategies and tactics to gain advantage over
their competitors. Thus this is the overall function.

Table of Contents
Task 1.........................................................................................................................................5
1.1 Evaluate the use of PESTLE and SWOT analysis in market planning................................5
1.2 Discuss the importance of promotional mix in the production of promotional material.....7
2.1 Analyse the stages of new product development.................................................................7
2.2 Conduct a product portfolio analysis incorporating the product life cycle..........................8
Task 2.......................................................................................................................................10
3.1Evaluate at least three types of marketing/distribution channel for consumer which is used
by your chosen company..........................................................................................................10
Task 3.......................................................................................................................................11
4.1Evaluate three methods of promotion and the media used.................................................11
5.1Discuss the key characteristics of price competition..........................................................12
5.2Evaluate the effectiveness of three pricing strategies.........................................................12
Conclusion................................................................................................................................13
Reference list............................................................................................................................14

Introduction
Marketing strategy has become an important tool globally for an organisation to remain in
competitive market environment. The chosen organisation in this project is TESCO.
Marketing professionals all over the world use various methods to enhance the organisations
sales and popularity. To perform this immense task PESTLE and SWOT analysis is
performed to get a picture of the current scenario. This provides pivotal information about the
competitive environment and the strategic decisions an organisations needs to make.

Task 1
1.1 Evaluate the use of PESTLE and SWOT analysis in market planning
PESTLE and SWOT analysis are required in market planning to look after the pros and cons.
PESTLE and SWOT analysis judges the effectiveness of the market plan by the organization
to be implemented.
PESTLE can be used for marketing planning in following ways
Political As we all know that for marketing of any product
or services we must have a proper idea of
political scenarios in a broad sense. As ‘P’ in
PESTLE means the political atmosphere where
the product is to be marketed (Newton, 2014).
Political factors that affect the marketing plans
are taxation policy, government stability and
related changes, consumer protection and e
commerce and many others.
Economic ‘E’ in PESTLE stands for Economic which is
related to the GDP (Gross Domestic Product) of
the country. As in marketing we need to look
about all the pros and cons of the country in
terms of their economy for marketing about a
product. For example, if an organization needs to
do marketing about a food product like Lay’s
chips so we need to see the country economic
background, as countries like Africa does not
consume fast foods/snacks as compared to
countries like USA which has huge market
demand for these sort of products and even the
profit margin earned in latter is more than the one
before (Newton, 2014).
Social ‘S’ stands for Social in PESTLE which relates to
factors like lifestyle of the people in the area
where the product to be marketed, buying habits,

educational level, attitude towards customer
service and product quality, health consciousness,
religion and beliefs and many more .
Technology ‘T’ stands for Technology in PESTLE which
relates technological factors affecting the market
plans are new machinery for manufacturing
process, new software, availability of the product
in that market etc.
Legal ‘L’ stands for Legal in PESTLE which relates
legal factors affecting market plans are
monopolies and margarines, trade descriptions,
competitive activities etc.
Environment ‘E’ stands for Economic in PESTLE which
relates economic factors affecting the market
plans are inflation rate, income levels, GNP and
GDP etc.
Similarly SWOT analysis can be used in marketing plan in following ways:
SWOT analysis is simple but delivers great input for decision making. The information is
divided into two segments: internal issues (Strength and Weakness) and external issues
(Opportunities and Threats).The SWOT analysis gives the company a summary about all

resources which it can use for its marketing strategies. It is a primary tool that helps to take
focus on specific issues. The analysis gives an organisation an overview about the factors that
can lead to its growth and determine the threats which it needs to overcome. If the
organisation identifies an opportunity which it can use for its favour, it can take immediate
actions .This analysis can immensely impact an organisations success. Once the SWOT
analysis is done, the organisation can leverage them to pursue new markets or can take steps
for introducing new products and services. SWOT analysis can aid an organisation to counter
competition and other external issues like economic downturn, shift in consumer behaviour
etc. All the negative factors within the organisation that decrease the overall value of
products or services provided can be accurately identified using SWOT analysis (Dyson,
2004).
1.2 Discuss the importance of promotional mix in the production of promotional
material
Promotional mix is a concept of combining various marketing strategies to promote products
and services a company intends to offer. This is very important as it combines all tools and
offers far great impact in influencing buyers’ choices. Marketing professionals have lots of
tool to attract people but each comes with its own advantages and drawbacks, therefore
mixing them ensure better results. The promotional mix is an important factor in the
production of promotional material as it gives an overview of the organisations products and
services, buyer’s choices and preferences. Thus, it helps in creating better promotional
content for the organisation, which in turn results in setting them apart from its competitors.
The promotional mix combines all the information of the organisations aims and objectives
which gives an idea about the audience it is targeting. This helps in the production of better
promotional material (Borden, 1964).
2.1 Analyse the stages of new product development
Developing new products involves several stages which are as following:
Idea: Firstly the idea of developing new product is generated. A new concept is introduced
about the product. This stage involves coming up with something unique and different thing
to offer to existing customers as well as attract new customers.

Research: Once an idea has been selected, the next stage is to analyse the market. This helps
to check the demand for this type of product. This stage also aids in understanding the
potential of the product (Ernst, 2010).
Develop: This stage involves development of the new product. First new prototypes are
developed and later with new designs and modifications the finished product is created.
Testing: The newly developed product is tested in a smaller market before the organisation
spends large sums of money on production. This stage may involve distribution of the
product to several employees for testing.
Analysis: After testing the new product in smaller market, the analysis of its performance is
determined. The required changes and decisions about launching the product in the market
are done.
Commercialisation: After the product has been successfully tested and analysed, its full
production begins and is therefore introduced in the market.
2.2 Conduct a product portfolio analysis incorporating the product life cycle
Product name Quantities sold ( in millions)
2016 2017
Trimmer 1.6 2.1
Air fryer 0.23 1.02
Oven 0.65 0.89
Washing machine 1.56 1.48
According to the above product sales, the market of electronic goods for the company Philips
has proved to be profitable. The market capitalisation in terms of electronic goods has
increased in the year 2017 as compared to 2016. The company should focus on launching
more products in trimmer section as that segment has shown maximum growth. New strategic
decisions need to be taken to increase the sales in washing machine. The product introduced
in the market (Air Fryer) has become immensely popular and gained huge customers
satisfaction.

Air fryer was initially introduced in the market in the third quarter of 2010. Since then it has
seen high growth and customer satisfaction. The product has shown immense growth in sales
in the year 2017. Cooking nutritious food with less amount of oil has made it a household
product. After analysing the above – mentioned product, it has been evident that this product
is in the maturity stage (Anderson, 1984).

In recent years, as people are inclining more towards health and fitness, the sale of this type
of product is expected to increase more. New competitors have entered the market. The
product is expected to reach maturity state in few years. If the company wants to exist as a
major player in this segment, it needs to focus more on its marketing strategies.
Task 2
3.1Evaluate at least three types of marketing/distribution channel for consumer which
is used by your chosen company.
Direct selling: Tesco uses direct selling techniques for marketing/distribution to its
consumers. This technique/method often eliminates several of the middlemen involved in the
product distribution. Instead, the products are supplied from manufacturer to the direct sales
company, to the distributor and to the consumer itself. The products sold through direct
selling are often not found in retail locations, getting a distributor are the only way to buy the
products and services.
Selling through intermediaries:

Tesco also applies the method of marketing/distribution by selling through intermediaries. By
applying this method/technique Tesco utilizes dealers and distributers etc to distribute and
sell its products to the consumers. The distribution intermediaries help Tesco to promote and
sell the products at a mass rate. The intermediaries working for Tesco are paid on a
percentage of the total transaction.
Dual distribution: Tesco uses the method/technique of dual distribution. Dual distribution
opens or provides a wide variety of marketing arrangements for Tesco by which Tesco
utilizes more than one specific channel to get to the end user or the consumer.
3.2Analyse the role of two intermediaries your chosen organisation use
The two intermediaries Tesco uses are:
1. Dealers: Dealers are basically individuals or companies that act as an extension for Tesco.
Dealers’ main and most important job is to represent/introduce the producers or
manufacturers to the end users or the consumers in selling the product. They don’t own the
product; they take upon the responsibility of the product in the distribution/marketing
process. Dealers make their profit by receiving a commission based on the price of the
product sold by them.
2. Distributors: Distributors take the ownership of the product. They store the product and
sell it off at a profit to retailers and other intermediaries. Distributors of Tesco will distribute
the products of Tesco only to maintain a goodwill and good relation with the organization.
3.3Discuss reasons for the growth of direct marketing
Direct marketing provides interactive system of marketing /distribution of the products of an
organization. This technique/method often eliminates several of the middlemen involved in
the product distribution. Instead, the products are supplied from manufacturer to the direct
sales company, to the distributor and to the consumer itself. Direct marketing increases
visibility of the brand/organization. It plays a vital role in developing trust and loyalty with
the consumers (Zeff,1999). In direct marketing the consumer receives fresh product from the
manufacturer which helps the organization/manufacturer gain the trust of the consumers. By
direct marketing, the organization creates strong brand image. Thus, these are the reasons for
the growth of direct marketing.

Task 3
4.1Evaluate three methods of promotion and the media used
1. Advertising: Advertisement includes the development of an organization. It plays a
significant role in marketing and selling of the products. Advertising of a product makes it
reach to a large amount of audience in a very short amount of time. Advertising departments
are the ones who take upon the responsibility to advertise products of the organization for
which they are paid a sum/amount of money by the organization (Zeff,1999).
2. Public Relation: This is one of the most important methods of promotion used. It is very
important to maintain goodwill and strong brand image with the audience or the public. It is
basically a long-term strategy for both small and big organizations. Wide range of tactics is
used for maintaining public relation to reach out to the consumer base or the customer base.
One of the most effective ways of maintaining public relation is to praise the customer base
via news channels and news papers.
3. Digital Promotion: Digital promotion is one of the most effective way to promote the
products of a company or an organization digitally with the use of internet. Internet is now
the most significant media to endorse and promote the products of an organization via social
networking sites, email, and other search engine platforms. Digital promotion not just only
promotes the products but also makes it visible throughout the world and enhances the
opportunity of an organization to reach out consumers globally.
5.1Discuss the key characteristics of price competition
Price competition plays a vital role for an organization to have an edge over their competitors
in the market. Various types of strategies and tactics are developed by the organization in
order to gain the upper hand in the marketplace. It is really very tough to develop a strategy
on pricing of the products. It has to look for large number of buyers and sellers, product
differentiation from the rest of the competitors, to sell quality products at affordable and
cheaper rates than its competitors. The organization has to be elastic and flexible while
providing quality products at an very affordable rate so that they can hike the rate without
hampering their own brand value.

5.2Evaluate the effectiveness of three pricing strategies
1. Premium Pricing: Premium pricing also known as Image pricing is the ritual of keeping
the rate or the price of a product or service high in order to intrigue different and favourable
perceptions among the buyers and based in the price.
2. Competitive Pricing: Competitive pricing is generally setting up the price of an product
or the service based on what the competition is demanding (Nagle, 2016). Competitive
pricing is basically used companies selling similar or identical products. In this type of
pricing the services vary from company to company but the attributes of the service and
product remains the same.
3. Price Skimming: Price skimming is generally a product or service pricing strategy in
which the organization charges or sets a high price at the initial stage and then starts lowering
the price gradually over the time. This process is also known as price discrimination or yield
management.
Conclusion
After implementing the PESTLE and SWOT analysis, it is considered that it is really
important for an organization to analyse the market. Assessing the market before launching
the product gives the organization a brief idea about the pros and cons it has to face in the
marketplace. For this sole purpose wide range of marketing tools are utilized to implement a
proper and effective plan into play. Thus from the above PESTLE and SWOT analysis it is
concluded that it provides the organization with all kind of resources that are required for
proper and effective planning.

Reference list
Anderson, C.R. and Zeithaml, C.P., 1984. Stage of the product life cycle, business strategy,
and business performance. Academy of Management journal, 27(1), pp.5-24.
Borden, N.H., 1964. The concept of the marketing mix. Journal of advertising research, 4(2),
pp.2-7.
Dyson, R.G., 2004. Strategic development and SWOT analysis at the University of
Warwick. European journal of operational research, 152(3), pp.631-640.
Ernst, H., Hoyer, W.D. and Rübsaamen, C., 2010. Sales, marketing, and research-and-
development cooperation across new product development stages: implications for
success. Journal of Marketing, 74(5), pp.80-92.
Lawson, B., Krause, D. and Potter, A., 2015. Improving supplier new product development
performance: the role of supplier development.
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing:
Newton, P., 2014. What is the PESTLE Analysis?.
Zeff, R.L. and Aronson, B., 1999. Advertising on the Internet. John Wiley & Sons, Inc.