An Analysis of Marketing Principles and Practices

This assignment provides an in-depth analysis of marketing principles and practices. It covers the AIDA model, above/below-the-line marketing strategy, personal selling, and promotional mix. The assignment also discusses direct marketing, online advertising, and the importance of brand image and promotional mix in consumer buying decisions.

Principles and Practice
of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Promotional mix.....................................................................................................................4
Advertisement.........................................................................................................................4
TASK 2............................................................................................................................................5
AIDA model...........................................................................................................................5
Above or Below line...............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing refers to the process of promoting the products or services of an organisation
for attracting more customers towards the offerings of the business firms. Marketing is done by
various tools and methods such as advertising, promotions, offers and discounts for attracting the
customers in order to raise the profit and productivity. The taken firm in this assignment report is
Tesco which is a supermarket chain based in England, UK. This firm is providing a wide range
of books, clothing, electronics, furniture, toys, petrol, software, financial services, telecoms, and
internet services to the customers. The company is employing more than 460000 employees in
their 6569 stores across the World. This report will cover the promotional techniques which are
used by the organisation along with the practical promotional mix policies. Further this report
will cover the theoretical aspects of the promotional mix which are used by the supermarket
along with the evaluation of the effectiveness of these tactics.
TASK 1
Background of the company
Tesco is a British based Supermarket chain which was founded by the Jack Cohen as a
group of market stalls in the year 1919 at England, United Kingdom. The headquarter of the
company is in England, UK. The company is also listed on London Stock Exchange and is a
constituent of FTSE 100 Index. Tesco is providing a wide range of products to the customers
such as books, clothing, electronics, furniture, toys, petrol, software, financial services,
telecoms, internet services etc. The company is providing employment to more than 460000
employees in their 6569 stores across the World. Tesco is the market leader of UK in terms of
providing the groceries with a market share of around 28.4% (TESCO COMPANY PROFILE,
2019). Currently the firm is operating in more than 7 countries i.e. Thailand, Hungary, United
Kingdom, Ireland, India, Malaysia, Czech republic etc. The vision, values, and mission of
Tesco are connected with each other for generating a good brand image in the mindset of the
customers. The value of the company is to serve the customers with the good quality products
for their satisfaction (Our Core Purpose and Values, 2019). Tesco is the 3rd largest retail firm in
the world in terms of the gross revenue and 9th largest retailer in terms of revenue.
Tesco is dealing in various segments such as supermarket, Hypermarket, superstore,
convenience shop. Tesco Extra shops are comparatively larger then the supermarkets and

established mainly outside of the town in which all the products of the firm are available.
Whereas the Hypermarket are located near public places for attracting the customers. The
largest Tesco Extra in terms of floor space is present in England at a place known as Walkden.
This store is spread in area of 17,230 squares meters and 185,500 square feet of floorspace.
Tesco has also purchased several small firms such as Dobbies garden, Harris+hoole,
Giraffe etc. Dobbies was acquired by the Tesco in 2008 which is a garden centres across
Scotland, England and Northern Ireland. Harris + Hoole is a coffee chain which was acquired
by the Tesco in 2012 and sold it to Caffe nero in 2016. Giraffe is also acquired by the company
in 2013 which was a restaurant chain in the United Kingdom and sold it to Boparan Holdings in
June 2016. The market share of the Tesco in the grocery section was 28.4% in UK. From 2018,
the market share of the firm starts decreasing and the market share of the ALDI and LIDL
started to increase (Aliata and et. al., 2012). Tesco has faced various allegations from the
customers and heavily criticised for aggressively pursuing critics of the company in Thailand.
Tesco has also faced problem from Office of Fair Trading of UK for fixing the prices of the
milk, butter and cheese. In the recent years ,TESCO company has faced many allegations of
exploiting the small farmer of UK. Also horse meat was found in the Burgers of Tesco due to
which the firm has to withdraw their 26 products from the market.
Promotional mix
Promotional mix refers to the one of the P of the 4p's of marketing mix which includes
various promotional tools and methods such as advertising, Public relations, personal selling,
sales promotions etc. for increasing the profit and sales of an organisation (Promotional Mix,
2016).
 Advertising: It is the major factors of promotional mix which is useful for the firms in
building the brand and for determining the ways through which the market will perceive
the firm. Through this, the firm can provide the information to the customers regarding
their products. Advertising is mainly done through the newspapers, social media,
internet, banners etc. through which the Tesco can reach the customers for offering their
products (Ennew, Waite and Waite, 2013).
 Personal Selling: It is the traditional form of promotions in which a salesman interact
and approach the customers by visiting their house or offices. The salesman face to face
interact with the potential customers for influencing their decisions to purchase the

products offered by the company.
 Direct marketing: In this type of promotions, company like Tesco uses the direct
marketing technology for targetting their potential customers by using the telephones,
messages, calls etc.
 Sales promotions: It is also a promotional technique which is used by the Tesco for
attracting the customers so that they can purchase the products. Sales promotions
includes providing offers, discounts, samples of the products etc.
 Public relations: In this technique, firms try to build better relationship with their
customers in order to raise the brand image by providing the information of the offering
of the company (Promotional mix – What are the different types of promotions, 2019).
When any thing goes wrong which can negatively impact the brand image then Public
relation department is responsible for maintaining the image of company in the mindset
of the customers.
Advertisement
These refers to the promotional activities which is used by the organisations for
marketing and promoting their offerings to the customers. A firm can reach to a large number of
customers by using the advertising (Advertising, 2019). Tesco is mainly doing the
advertisement in two types i.e. In-Store advertisement and Out-store advertisement which are
discussed below:
In-store advertisement: This is an effective promotional technique in which Tesco
advertises their products and services to the customers. In this, Tesco promotes their products in
the stores for influencing the customers to purchase the products when they enters in the stores.
For this, the company is providing offers, discounts, large and airy stores, proper ambience,
fragrant environment etc. for influencing the mindset of the customers. Also the company is
using the cost and differentiation strategies for providing innovative and unique products at low
prices to the customers for enhancing their satisfaction. Tesco is currently using the software of
Right now who is providing CRM software to the firms. Tesco is using the Sassy CRM
software for enhancing the experience of the customers who purchases the products online.
Tesco is targetting the all segments of the people for providing their products (Goworek,
McGoldrick and McGoldrick, 2015).

Out-store advertisement: In this type of advertisements, Tesco promotes their products
outside of their stores for attracting more consumers. Company uses the outdoor signs at some
locations which is visible to the customers and grabs the attention easily. Tesco is using the
billboards, social media, newspapers, magazines etc. for promoting their products outside of
their stores so that the potential customers can purchase the offerings of the company.

Digital: Tesco is using various types of digital technologies in promoting their products
such as social media, website, e-commerce platforms etc. For selling the products. The website
of the Tesco is quite good and the content along with the pictures are quite attracting which can
influence the mindset and thinking of the customers for buying the products. The website is
also interesting, colourful, easy to navigate which provides the ease to customers in searching
for the products they are looking.

Evidence
From the above shown photos, it is evident that Tesco is using various in-store and out-
store advertisements for attracting the potential and existing customers effectively. SWOT
analysis is used for the evidence of In-store and Out-store advertisement which will provides
the strengths, weakness, threats and opportunities of these promotional techniques. Through
these promotional techniques, company is attracting more customers towards the offerings
which will also enhance the market share and profit of the company and it is a strength for the
Tesco. Whereas the company is also promoting the products according to the seasons such as in
rainy season, company advertises their umbrellas, washing machines etc. for attracting the
customers but these type of advertisement also negatively impact the demand of other products
which is a weakness for the firm (Jobber and Ellis-Chadwick, 2012). Whereas this can be
proved as a opportunity for the Tesco in launching a new product in the market as the customers
recognises the products of the firm. These advertisement can also becomes the threat for the
Tesco as the competitors are aware of such promotional techniques of Tesco which can be
copied by the competitors. This can leads to the shifting of customers to other brands if their
promotional tactics are more beneficial for the customers.
Direct marketing
Through this type of promotions, Tesco is communicating directly with the customers
by using the various types of communication tools such as messages, emails online adds and
websites etc. Tesco is also using the techniques such as e-leaflets, catalogue marketing, discount
codes, etc. in their out-store advertisements for influencing the customers to buy the products
of the company (DIRECT MARKETING, 2019).

The evidence for direct marketing can be supported by the Customer relationship model
which is used by the companies for managing the interaction with the customers. For building a
better customer relationship, Tesco is using the catalogue marketing and e-leaflets, discount
offers which also assist the firm in improving the customer base and the satisfaction of
customers. Through these, customers tends to purchase the products of the company as the
products are also of good quality. Tesco is building the better relationship with their customers
with the help of discount offer system in which the customers are provided with half price, club
card fuel save unto 20% etc. so that the customers take the advantage of such techniques.
Personal selling - These methods are used by each firms whether it is performing at
small or big level for selling their products in the marketplace. In this method of selling,
company uses their human resources in optimum manner so that sales figures of firm can be
enhanced. In it, Organisations hires or recruits sales representatives to meet with the potential
clients and provide all details to them about the offerings of firm. In the context of Tesco, the
firm use this method in both manner in store or out of store. In the case of in store, sales
executives have to show the sample of product to the customers and define features of it along
with providing future benefits of using the product to them. Whereas, in case of out of stores
representatives of organisation have to visit door and door and contact with potential clients
personally so that desired wants of customers can be identified and fulfilled accordingly.
Evidence of personal selling

Management of Tesco can use CRM Model for making evidence of the personal selling
which will helpful for them in spreading awareness about the new offerings of firm among the
customers. With the help of this model, better relationship will be made with the customers
which will ultimately leads the firm towards growth and sustainability (PERSONAL SELLING,
2019).
Sales promotion- This is a process which encourages the customers to buy specific
products or services of organisation. It is a technique which is used for a short time period with
an objective of enhancing the sales figures.

Evidence of sales promotion
In the context of Tesco, company use this method in their stores through using BOGOF
technique. BOGOF can be defined as buy one get one free this technique can be used by the
managers when the warehouse cost is increasing and quality of stock is decreasing. For
instance, winter season is starts and no one wants to buy summer clothes then this technique is
useful because it will save the cost of warehouse and remaining stock will be finished in a small
period of time (Sales Promotions, 2019).
Public relations- This is a kind of practice which helps to the managers of a firm in
managing information spread among the customers or other firms. It mainly consists of entity to
gain exposure to the customers through using informations or beliefs that does not require any
kind of payment.
Evidence of Public relations
For spreading informations or promoting products or services Tesco uses out of stores
techniques so that effective relations will be build with the customers. For example if any
information which is necessary to spreading so that a good image of firm can be made in the
mindset of customers. Therefore, Tesco uses press and media coverage through sponsoring the
sports activities or charity events so that positive image will be build in the mind of customers.
Management also use CRM Model for supporting the evidence of public relation because it
helps them in building awareness about the products and services in the marketplace and also
assists them in building effective relations with customers (Public relations, 2019).
TASK 2
There are various marketing theories which can be used by the Tesco for attracting the
targetted customers towards the products and services provided by the firm. These marketing
strategies are also useful for the Tesco in accomplishing higher profits and revenue. Two of these
marketing theories are chosen in this report which are AIDA model and Above or Below line.
These are important for the firm as through these, Tesco can improve their performance in the
market when launching a new product.

AIDA model
It is one of the founding principles for advertising and promotion which includes
attention, interest, desire and action (The AIDA Mode, 2013). This model was developed by the
E. St. Elmo Lewis, in the year 1898. It is a marketing and advertising approach which is
developed for enhancing the interaction between the buyer and seller who are concerned with the
products of an organisation. It is useful for the Tesco in getting the insights about the mindset of
the customers and provides the steps which can be used for generating leads and sales. If Tesco
miss any one element of the model in implementation process then it can leads to the failure of
the firm. So, it can be said that this strategy is useful for the Tesco in increasing the awareness
regarding the new product which is introduced by the company. Also the company can influence
the customers for purchasing this new product which can satisfy their needs and requirements.
The new product which is launched by the Tesco is organic chocolates which are also healthy to
consume.
Illustration 1: AIDA Model
Source: AIDA Model, 2017
Attention: For getting the attention of customers towards this new organic chocolates,
Tesco needs to promote their product with the help of digital media. Also Tesco can promote the
new product by placing the adverts on bill boards which can easily be seen by the customers

which will also increase the attention of organic chocolates in front of the customers in terms of
personalized messages and features of the product.
Interest: This is the second element in which the interest among the consumers is aroused
for the organic chocolates. For raising the interest among the customers, Tesco can hire the
actors or celebrities which are famous among the people. If such people promotes the product
themselves, then a large number of customers gets attracted towards the organic chocolates.
Desire: After successfully generating the interest of the customers towards the organic
chocolates, Tesco needs to create strong desire among the customers so that they can purchase
the product (Lefebvre, 2012) . This can be done by providing the information of the organic
chocolates in terms of features, quality, benefits etc. Also the company can state the reason why
these organic chocolates are better then the similar products provided by the competitors and by
showing the versatility of these chocolates. This can be done by placing the features of the
product on their website.
Action: It is the last element in which the customers decides whether to purchase the
product or not. If Tesco has properly raise the interest and desire for the new organic chocolates,
then customers will purchase the product for their satisfaction. Also the health benefits of
organic chocolates can attract the customers to purchase the product if successfully done by the
Tesco.
Strengths and weakness of the AIDA
The most important strength of the AIDA Model is that the Tesco can build better brand
image in the mindset of the customers which will also strengthen the relationship of firm with the
customers. Through this model, customers get the information regarding the features of the new
organic chocolates which will assist the firm in creating the desire among them for purchasing
the product which is also a strength (Wood, 2012). Whereas there are several weakness also of
this model. When implementing the model, Tesco will face the issue of cost and time as it is a
time and cost consuming process as the firm needs to organise the testing activities for
promoting the product which will needs time and money.
This model is very effective for the Tesco for launching their new organic chocolates as
the company can attract a large number of people towards the organic chocolates which will
enhance the market share and revenue of the company. Also the customer base and productivity

of the company can improve which is beneficial for the firm in sustaining in the market and the
company can ensure the satisfaction of the customers when the profit and sales increases.
Above or Below line
Above/Below line are the two different strategies which are used by the organisations for
promoting their products. Above the line strategy is useful for the companies when they are
targetting a wide market or segment whereas Below the line strategy is useful for the
organisation when they are targetting a niche market or potential groups. Tesco can use the both
of the strategies for their promotional activities. Above the line is useful when the company is
promoting their products on a global level whereas below the line is useful when the company is
promoting their products to the local people.
This strategy can be effectively used by Tesco for targetting a large number of people for
the new organic chocolates(Oladepo and Abimbola, 2015). Most of the people or Youths in this
world are using the social media apps such as Facebook, Instagram etc. for connecting with the
people. Tesco can target these people and youth through the above line strategy as they are
active on these sites most of the time. Similarly, for attracting the local customers who does not
use the social media, Tesco can use the below line strategy. This can be done by distributing the
pamphlets, brochures, stickers etc. for attracting such people.

Illustration 2: Above/Below the line marketing strategy
Source: Above/Below the line marketing strategy, 2018
Strengths and weakness of above line
When using the above line strategy, Tesco can capture large market share as the company
can use the social media platforms such as Facebook, twitter, Instagram etc. for promoting or
advertising their products. Through this, the firm can enhance their online presence and brand
image for reaching a wide range of audience (Above the Line (ATL), Below the Line (BTL),
2018). Whereas the weakness is that the firm can target the wrong audience which will proves to
be waste of time, efforts and money and it can adversely impact the performance of new product.
Also the online magazines and blogs has replaced the newspapers and magazines which leads to
the weakened position of above the line marketing strategies.
Strengths and weakness of below line
The major strength of using the below line strategy is that the firm can develop better
relations with the customers due to focus on niche portion of the market or local customers. Also
Tesco can gain the loyalty of the customers through this strategy. Whereas weakness of this

strategy is that the Tesco can face problem in targetting the people from different cultures which
can results in acquiring less market share due to exclusivity. Also some of the people can have
bad experience from such similar promotions by other firms which can acts as obstacles.
This strategy is effective when used by the Tesco as the loyalty of the customers can
increase along with the brand image of company which is beneficial in enhancing the market
share and productivity of the company. Also the firm can maintain healthy and better relations
with their customers when using the social platforms or targetting a small segment of people.
CONCLUSION
It has been concluded from the above report that the marketing plays a major role in the
growth of a firm. Companies can use the promotional mix for attracting more number of
customers towards the products offered by them. These customers can be attracted by using the
advertising, public relation, personnel selling, sales promotions etc. Firms needs to determine the
methods and techniques through which they can reach the maximum number of customers. There
are various types of Marketing strategies which can be used by the organisations in attracting the
customers towards their products. AIDA and Above or Below line are the two strategies through
which companies can influence the mindset of the customers for purchasing the offerings of the
organisation.

REFERENCES
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