Principles and Practices of Marketing

Running Head: Principles and Practices of Marketing
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Principles and Practices of Marketing
Report
Student Name
3/18/2019

Principles and Practices of Marketing
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Table of Contents
1.0 Introduction.....................................................................................................................................2
2.0 Task 1 - Promotional Mix.......................................................................................................................3
2.1 Advertising.........................................................................................................................................4
2.2 Direct Marketing................................................................................................................................7
2.3 Public Relation.................................................................................................................................11
3.0 Task 2 - Promotion strategies..............................................................................................................13
3.1 AIDA Model......................................................................................................................................13
3.2 Above and below the line activities.................................................................................................14
4.0 References...........................................................................................................................................16

Principles and Practices of Marketing
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1.0 Introduction
TESCO is a supermarket chain of UK and is the world largest British retailer in term of sales and
market share. The company was founded by Jack Cohen in 1919 as a grocery shop later on it
expanded into other sectors. TESCO has 3,739 stores in UK in 2017 and 500,000 people are
employed worldwide in 7000 stores and its product portfolio includes food and beverages,
clothing, home appliances and financial services (TESCO, 2019). Most of the company profit is
generated through the sales in UK and some other from European and Asian countries. The
biggest competitors of TESCO on the basis of market share are Asda and Sainsbury. The current
scenario in this retail industry is that most of the customers are attracted towards discounted
outlets such as Lidl or Aldi which is affecting the sale of these big giants in high street
supermarkets (Vizard, 2018).
Tesco took a step to take over the food wholesaler Booker for £4bn, this major step was taken to
survive in the market and to respond the challenges the retail sector faced. Merger and
acquisitions become the way to compete in the market and to grow market share. The deal with
Booker gave an edge to company by accessing to wholesale market that is growing faster than
retail sector (Rovnick & Odell, 2018). The company focuses on consumer needs through its two
core values; no one tries harder for consumers and, treats people how we like to be treated. Tesco
follow different schemes to promote their brand in different countries firstly through spending in
advertisement that include banners, billboards, television and print media. The loyalty scheme
Club Card for customers is another way of promotion. Indeed they use direct marketing to
connect with people and to make an emotional touch with them (Turner, 2016). All these things
basically connected with the implication of practical theories of promotion that are AIDA model
and above and below the line activity.
The aim of this project is to evaluate the different promotion mix strategies of the Tesco and its
practical implication. In the first task, promotion mix would be explained briefly followed with
the strategies employed by Tesco. Further the evaluation of the theories of promotion and its
impact on the company.

Principles and Practices of Marketing
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2.0 Task 1 - Promotional Mix
Promotional Mix is a mixture of different tool opted by the companies to promote their products
or helps in to create the demand of goods and services. Promotion is included in 4 P’s of
marketing mix; promotion means to reach the audiences and make them aware about the
products to initiate the purchase and the promotional mix is considered as integration of some
tools that help in reaching to the customer that are advertising, personal selling, public relation,
digital marketing and direct marketing (Blakeman, 2018).
Elements of Promotion Mix
Promotion mix is a strategy that is used to create brand awareness for selling of product and
services. This include several factors to keep in mind such as the goal of the company, target
market for understanding the customer behavior, designing the content that is to be delivered,
setting up of promotion budget and then choosing the best promotional tool to reach the
audience. To compete in the market promotion become an essential element every company
promote their product by using different ways for gaining larger market share. The concept of
promotion mix can be better understood with the example of TESCO a giant supermarket chain
in the UK. Tesco used different techniques for promoting their product which include billboard,
discount code, television ads, in-store announcements and social media marketing.
Promotion
Mix
Advertising
Direct
Marketing
Public
Relations
Sales
Promotion