logo

Practice and Principles of Marketing - Tesco

   

Added on  2020-10-22

12 Pages3487 Words473 Views
Practice and principles ofmarketing

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Promotional techniques used by TESCO....................................................................................1TASK 2............................................................................................................................................4Theoretical aspects of the promotional mix................................................................................4CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9

INTRODUCTIONMarketing is very crucial and vital business function for any business. Marketing is abroader concept and it includes functions like product design and development, promotion andcustomer services, research etc. The company taken in the report is TESCO. The company is aBritish multinational general merchandise and groceries retailer headquartered in WelwynGarden City, Hertfordshire, England, United Kingdom. The company is the third largest retailerin the world measured in terms of revenue. It is biggest UK supermarket. The report will firstdiscuss some of the promotional techniques used by the company TESCO. After that the reportwill outline the theoretical aspect of the promotion mix. And also with that it will highlight thetheories of enhancing the promotional mix of the company. The theories used in the report areAIDA model and above/ below the line model.TASK 1Promotional techniques used by TESCOPromotion means the methods which are used by the business for making its customersbeing aware of some specific products or a product range. Business makes a promotional mix bycombining the different types of the methods and techniques of the promotion (Pererva, Nagyand Maslak, 2018). Currently the TESCO' s marketing mix intents at regaining the trust of itsstakeholders towards the company TESCO. The company is concentrating on “Every LittleHelps” strap line to modify its core outstanding competitive advantage. A company uses various types of promotional activities and techniques in order tocommunicate its product and services with the target market and the customers. The promotionalmethod can be of two types. One is direct technique which focuses on creating a relationshipwith each client for example personal selling, direct marketing etc. Another type of promotionaltechnique is indirect which is based on mass communication. Here the massage is identical andserves a high number of potential customers. Examples of indirect techniques are advertising,sales promotion, public relations etc. The promotional mix used by TESCO for promoting theproducts and services are as follows:Advertising- it is a process of spreading the product information among the potential buyersand the users of the products and services through a public medium in order to maximise thesales of the company. TESCO' s marketing mix comprises of the print and media advertising to1

share the marketing communication messages to the current and prospective buyers andconsumers. TESCO has reduced its advertising budget because of the aim of massive cost savingbut then also the efficiency of the print and media advertising has been increased. This has beenachieved because of the use of market differentiation (Parrott, 2014). Market differentiation is apromotional strategy employed to create a strong hold in a specific target market. TESCO printand media advertising contains valuable advises on cooking or home styling. For example thecompany has recently released reactive print ads around the Great British Bake off. Sales promotion- it is an component of the promotion mix which makes use of both the mediaand the non- media marketing communication for a restricted time to increase the demand amongthe consumers. Various forms of sales promotion plays an integral role within TESCO' smarketing strategy. The supermarket chain assist sales promotion in the following formats:Clubcards-it is a form of sales promotion tool in which the company provides membershipschemes to its customers. These schemes allows the customers to save money on shopping byproviding them price- offs and discount vouchers. In this scheme the customers gets a point onevery pound they spend shopping at any stores of TESCO. Once a customer collects 150 pointsthen these points are converted into clubcard vouchers which helps the customer in savingmoney on shopping.Free gifts- the supermarket also offers free gifts such as buy one get one free offers to rise thesales of specific range of products. For example for promoting health section of the supermarketTESCO ha started TESCO Healthy Living Club. In this club the members get a free “40 stepsto healthier life” booklet and also some free magazines offering useful tips on diet, exercise andhealth issues. They also provides price off coupons on food products such as dairy farms andorganic foods.Shifting towards digital marketing- every business needs to invest billions in the marketing ofthe products and the services of the company to face the cut throat competition and have anadvantage over its competitors. Now a days everything is going online whether it is doingbusiness, or buying anything or selling anything (Rogers and Davidson, 2015). TESCO realizedthat there are tremendous changes occurring in the market and the marketing trends of theproducts. Digital marketing is characterized as the selling and the promotion of products,services and the different facilities provided by the company with the assistance of the digitalplatform. The different types of digital marketing are internet, e- commerce marketing, display2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Digital and Social Media Marketing: A Case Study of Tesco
|11
|2783
|423

Role of Advertising and Branding in Business
|9
|758
|135

Integrated Marketing Communications for Colcci
|8
|814
|51

Marketing Mix and Its Application to TESCO's Clothing Segment
|9
|2406
|52

Marketing Mix of Garnier
|1
|676
|101

Principles and Practice of Marketing INTRODUCTION
|18
|4732
|243