Principles And Practices Of Marketing

This report examines the promotional tactics used by TESCO, a leading British multinational retailer. It analyzes both practical and theoretical approaches, including in-store promotions, advertising campaigns, social media strategies, and customer relationship management. The report also explores relevant marketing theories like the AIDA model and the communication process, providing insights into how TESCO effectively reaches its target audience.

Principles And Practices Of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Practical Promotional tactics of high street supermarket............................................................3
TASK 2..........................................................................................................................................13
Theoretical Promotional tactics of high street supermarket along with Theories.....................13
CONCLUSION..............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
In today's era, it is very essential for business to use marketing tools for promoting and
creating awareness about their products in minds of customers at market. In order to survive in
competitive world, it is necessary to do proper marketing for each and every products for
surviving and sustaining. Marketing is the activity of any organisation which is associated with
selling and buying of product and service (Alserhan, 2017). This includes advertising,
promotion, selling and delivering goods to individual. The given assignment is based on TESCO
which was founded in 1919 at England, United Kingdom. It is British groceries and merchandise
retailer dealing in different products such as supermarket, superstore, hypermarket and
convenience shop. It highlights promotional tactics required in business and theoretical aspects
for promotional mix used in business and evaluating effectiveness of these tactics.
TASK 1
Practical Promotional tactics of high street supermarket
Background related to TECO Marketing
Promotion is the kind of marketing communication that is used for persuading or
informing target audience for product, brand, service and issues (Boulton and et. al., 2013). It
main aim is to create awareness, generating sales, creation of brand loyalty and creating interest.
This is elements in promotional plan or promotional mix. It includes advertising, direct
marketing, personal selling, sales promotion, event marketing, trade shows and exhibitions. It

covers ways of communication which marketer uses for providing information about goods and
it can be in form of both visual and verbal. Promotional mix define number of promotional
variables that is chosen by marketers which helps firm for reaching its goals. It is known as
subset of marketing mix. The policies are formulated for creating proper and effective promotion
to reach maximum consumers. There are various types of organisation running in market having
different goals and objectives. According to size of business that is small, medium and large,
promotion tools are adopted.
Here, chosen enterprise is TESCO which is British multinational retailer deals in various
products. It is considered as third largest retailer in world in terms of gross revenues and ninth
largest retailer in terms of revenues. Its headquarter is in Welwyn Garden City, England, United
Kingdom. It was established by Jack Cohen in 1919. The key people of this firm are John Allan
who is non executive chairman and Dave Lewis who is CEO of group. It is serving it products
and services at United Kingdom, India, Thailand, Hungary, Ireland, Malaysia, Czech Republic.
There are many subsidiary company of TESCO such as TESCO stores limited, mobile, family
dinning limited, bank, Ireland, Dunnhumby, Booker Group, Spenhill and Jack's. It deals in
various products such as supermarket, superstore, hypermarket and convenience shop. There are
seven countries where TESCO has its shops such as Asia, Europe and UK where market share is
around 28.4%, Hungary, Thailand and Ireland.
The prices of product of TESCO is high as it sell high quality good having brand value
and market image. It has focused on high class and rich people for selling of goods. According to
data of 2017, it has more than 476000 number of employees working and 6553 shops are located
in different places for serving their consumers. From the data of 2017, it can be said that TESCO
has earned £55.9 billion revenue, operating income is £1,280 million and net income is £54
million. As it is large organisation so requires promotional activities for creation of awareness in
mind of customers. It focus mainly on high group people of society and uses promotional
activities such as advertising, social media and others. The effectively used tool is social media
as large number of people are connected to social networking. Through help of this tool it can
earn maximum profit and survive in market.
Promotional techniques used by TESCO in practical and tactical manner

Each and every organisation doing their business need to use proper promotional
techniques within target market. The depending on communication channels, promotional
techniques can be used which are described below:
Direct (Personal) communication techniques- It means focusing on creation of
relationship with clients in form of personal sales, direct marketing (Armstrong and et, al., 2014).
Indirect (Non – Personal) communication techniques- It means focusing on
communication, delivering message for identical and high number of consumers in form of
public relations, advertising, sales promotion (Bowie and et. al., 2016).
There are number of techniques through which promotion can be created for their
consumers such as inside store, away from store, digital, newspapers. They are explained below:
Inside Store
It means the ways of creating promotion of product inside store when customer coming
for purchase of goods and services. The personal relationship also helps in creating awareness of
products to their loyal consumers. There are various tool that can be used inside store for
creation of promotion of goods such as:
Layout- It is the way through which products are arranged in store. Proper arrangement
helps in influencing customers for buying of products (Dahl, Gorn and Weinberg, 2018). Here,
TESCO can use such tool for promoting of their products to visited consumers. This is the new
method for promotion.

(Source: Layout of TESCO)
Service- TESCO can provide various services inside store to their consumers such as
proper sitting arrangement for people, gaming activities for kids, good environment, behaviour
of staff, acceptance of cards, net banking. This influence customers to purchase products and
creates promotion. It also provide self service to customers while buying product as they can
scan their goods through machine and take it.
Illustration 2: Self service of TESCO
(Source: Self service of TESCO)
Illustration 1: Layout of TESCO

Special Offers- TESCO can use this tool for promotion as it can provide specials offers
during occasions and whenever sale is low. This helps in increasing sales and profits as products
are sold at discounts. As there are many consumers who wait for discounts for buying of goods.
Illustration 3: Special offer of TESCO
(Source:Special offer of TESCO)
New Launches- In this promotion techniques, whenever TESCO launches new products
for first time in market, it can provide it on free basis to their loyal consumers for a day. This
helps in creating awareness about products in mind of customers. New launches creates huge
profits and maximum sales (Duncan and Goddard, 2016).

(Source:New Launches of TESCO)
Staff- The behaviour and nature of TESCO staff should be very polite and good with
their consumer. This is the most important tool in every organisation. The effective and efficient
staff can easily convenience and encourage individual for buying of goods and services. They
should treat each and every people in good manner so that they get attached with organisation
and comes to that place only (Ennew, Waite and Waite, 2013).
(Source:Staff of TESCO)
Atmosphere- It means internal surrounding of organisation where employees and staff
works. It should be good enough so that workers can work in effective and efficient manner
(Gordon, 2012). This creates positive relationship among employer and employee through which
Illustration 4: New Launches of TESCO
Illustration 5: Staff of TESCO

they can serve their consumer in better way. Atmosphere should be positive and they should get
opportunity to learn new things, provide training and development for improving themselves.
Thus, this is the most attractive and innovation ways of creating promotion at TESCO.
Porter Generic Model
There are two approaches in this model such as cost leadership and differentiation
strategy. Here, TESCO has used cost leadership strategy where profit increases by reducing cost
and increment in market share by charging low prices. It is the strategy where organisation need
to lower cost in order to increase profits and market share in competitive market. This helps in
achieving set goals and objectives. This can be done if business has lower cost in technology,
efficient logistics and low cost labour. They need to provide high quality and continuous
improvement need to be done on regular basis. For example, if consumer get high quality goods
at low price with all benefits then obviously they prefer to purchase from that outlet or shops.
There are many competitors of TESCO such as Sainsbury's, ALDI, Marks and Spencer. In order
to compete with them, price for products should be lower.
Customer Relationship Management (CRM)
It is an approach used for managing company's interaction with potential and current
consumers (Lawless and Heymann, 2013). This need to use data analysis about customer's
history in an organisation for improving relationship with their consumers and focusing on
retention of their potential and increasing sales growth. There are mainly three types of CRM
which are described below:
Operational CRM- It helps in generating leads, converting them into contacts, capturing
relevant information and providing service through user life cycle. This CRM is used mainly in
marketing automation, service automation and sales automation.
Analytical CRM- This helps to top administration, sales, marketing and supporting
individuals for better serving to consumers and making proper decisions in organisation.
Collaborative CRM- It is also known as strategic CRM, that enables enterprise for
sharing information of consumers in business sections such as marketing team, support team,
sales team and technical team. This helps in uniting all groups into one and using information for
improving quality of customer service for gaining loyalty and acquiring new people for sales
increment.

After analysis different types of customer relationship management, it can be concluded
that TESCO can use collaborative for running business in effective and efficient manner. As it is
large corporation in market which consists of multiple data and information of consumers. Te
future strategy and goal of TESCO is vast so with help of collaborative their vision and mission
can be achieved.
STP (Segmentation Targeting and Positioning)
Segmentation is the way through which customers are divided into various categories
such as demographic, geographic, physiographic and behavioural (Lees-Marshment, 2014).
TESCO has segmented consumers according to loyalty, types of club cards. As it is serving its
products into different countries such as Asia, Africa and divided markets on basis of income,
religion, family size, education and others. Targeting is choosing target market from
segmentation. This focus on particular group of people such as religious, nationality and others.
Positioning is creating brand value and image in mind of customers. TESCO provide high
quality products to their consumer so they have brand loyalty towards their goods.
Position in Market
TESCO has good market position which has been created by providing high quality, good
will, brand value. As it is self created in mind of consumer through their goods and service.
Being recognised brand in market, it has created good position in market as well as in minds of
customers. This leads to high profit earning and sustainability of products and company.
Away from Store
The promotion activities done externally then it is called away from store promotional
techniques. This tools helps in better promotion of goods and services. Some of techniques
which can be used by TESCO for external store are described below:
Advertising Campaigns- It is an advertisement messages which is used for sharing
single idea and makes an integrated marketing communication (Malik, 2013). There are different
types of advertising campaigns for promotion used by TESCO are as follows:

(Source:Advertising Campaign)
 TV- It is the most easy and convenient tools used by TESCO for promoting their
products in market. There are many consumer who prefer to watch TV and get awareness
about upcoming products. It provide message of product and its quality and targeting all
group of people for goods and services.
 Radio- This can help in reaching target audience and attract new customers. It provide
message related with goods and services to new and old consumers. Basically it focus on
particular group of people as specified station is available in certain place.
Digital Promotion Techniques
When promotion done electronically with helps of different media it is called digital
promotion. There are different types of digital promotion techniques such as:
Social Media- TESCO uses social media such as twitter, Skype, whatsapp for promotion
of products in minds of customers. It is the most easiest and simplest way of creating awareness.
Facebook- Through sharing of product information, price, quality, promotion can be
done. It is used by all companies as many of the consumers are connected in Facebook for
gaining information and knowledge (McClements, 2015).
Screenshot of Website and Review of Customers
Illustration 6: Advertising Campaign

(Source:Website of TESCO)
(Source:Review of Customer regarding TESCO)
Illustration 7: Website of TESCO
Illustration 8: Review of Customer regarding TESCO

Company Performance By Outside Agencies
According to BBC, supermarket has increased its sales. CEO has done progress from last
year in food sector. Under TESCO ownership, Premier, Londis and Budgens store brands has
rose 14.3% in first quarter. As supermarket continuously focusing on re launching their brands in
the market for market share and increment of profits. As per latest figure, TESCO has 27.7%
market share which is biggest supermarket in UK's market. Performance of organisation is
increasing day by day which is good for market (Tesco says growth 'on track' as sales rise again,
2019).
Promotional Mix Elements
The other types of promotional mix used by TESCO are described below:
Advertising- It is referred as non personal and paid form of promotion if goods, services,
by sponsor. This can be used by TESCO as it covers mass people at a time and one way
communication which is always true and includes such as television,newspaper, outdoor, radio,
magazines (Newman and Jennings, 2012).
Sponsorship- It is advertising in which company pays for special event. This is prevalent
with charitable events where TESCO can sponsor local sporting team, sports tournaments,
community events and fairs.
Public Relations- This is the way of maintaining relationship not only with suppliers,
customers, middlemen but with other public too (Patil and Pradhan, 2014). TESCO can create
effective relations with public which is paid form of promotion where organisation has to bear
expenses. It includes both formal and informal groups.
Direct Mail- It includes various marketing materials such as brochures, postcards, sales
letters, catalogues. Here, TESCO can use such promotional tools as it is effective and profitable
methods for reaching existing and new clients. The organisation directly mail to their consumer
regarding upcoming products in market.
Different Theories Used By TESCO
The theories used by TESCO for promotion of products are described below:
Above / below the line (ATL/BTL) – ATL is advertising mass media which is
used for promotion of brand in order to reach target consumers. It includes radio, internet, print
and television (Smith, 2014). TESCO can use this advertising tool for targeting large number of
customer. This tries for reaching out to mass people. BTL involves distribution of handbills,

promotions, stickers, pamphlets, brochures placed at point of sale on road side through placards,
banners. TESCO can use this and provide demo at malls, residential complex for creating
awareness.
Push and pull strategies- Push strategy is the way or idea for pushing product of
company onto consumers with help of making them aware at purchase point. Here, third party
promote company's product. Similarly, pull strategy is the way to get consumer come to
company for buying of products. The customer demand for product of enterprise from sellers.
Both strategies can be used by TESCO for creating profits and increasing market share along
with fulfilment of need and demand of consumers.
TASK 2
Theoretical Promotional tactics of high street supermarket along with Theories
There are many other methods through which promotion can be done and create
awareness in mind of customers. Apart from practical approach such as radio, television,
advertising, direct marketing, there are some theoretical approach which can be used for
promotion. This requires use of various theories by TESCO such as AIDA model and
communication process which are described below:
AIDA Model
AIDA is acronym which stands for Attention, Interest, Desire and Action. This model is
used in adverting and marketing in order to explain stages which occur from time whenever
customer first became aware of good, brand, through its trails and make decision regarding
purchase (Tricker, 2015). This helps in explaining about communication message involved and
engage in choosing brand by customers. This model is effective because one can make better
decision regarding products. TESCO can also implement this model as per the requirements
which is given below:
Attention: The first phase of AIDA is all about the perception, initiate the activation and
other similar term. According to this phase attention of the customers attracted towards product
with using of various strategy that relate to content of an advertising message, presentation, or
placement. TESCO can also apply that model for acquiring attention of customers by
implementing various modes of advertising these may be in the form of direct and indirect
communication. This helps in knowing about requirement of consumer and products.

Interest: This is second phase of AIDA framework, in this phase interest is maintained
of potential customers with help of implementing modern analysis tools. TESCO can also apply
techniques of maintaining interest of customers such as, with implementing tools to retaining
customers in future. For example if any customer visit continuously website of TESCO for a
particular product then it have to do a interaction with customer through help team and provide a
appropriate solution for requirement. The analysis should be done effectively and efficiently in
order to create interest of customers regarding products.
Desire: In third phase of AIDA model, general interest of customers develops into a
concrete purchasing Intent. TESCO can also create desire into customers mind with help of that
phase, at this time it have to show products or display before interested customers through online
stores and other methods. Through this phase, interest converted into desire as consumer want
that product and think a lot for buying it.
Action: This is the last stage of AIDA model where advertiser should have succeed in
creating demand for particular product. TESCO can apply this stage for creating demand for its
supermarket products. At this stage, customers ultimately buy product from supermarket for
which advertiser create attention, maintain interest and create desire in customers mind. Here, the
organisation get success and customer finally purchase goods and services.
The communication Process
It is the process through which data and information are transfer from one person to
another with help of various channels in proper sequence or steps (Varey, 2012). The main aim
of communication process is to send information successfully. This includes sender, message,
encoding of messages, media, decoding, receiver, feedback and noise which are described below:

(Source:Communication Process)
Sender- It is the first stage where sender sends message or communicates and convey it
to their receiver. The person starting communication is called source (Armstrong and et, al.,
2014). TESCO is the sender who sends message to their suppliers, retailer, consumers. It
depends upon organisation to whom they are sending message. The effectiveness of this stage is
that sender should be very clear about their goal and objectives.
Message- Message is the idea, information, fact, feeling, view which is generated by
sender and communicated further. The person sending message should know purpose behind it.
The manager of TESCO should send message in effective and under-stable form. The
effectiveness of such stage is to be very clear about work or message which is required to their
respective parties.
Encoding- It is the third stage where encoding took place. It means message send by
sender are encoded symbolically in form of words, pictures, gestures before conveyed. This
Illustration 9: Communication Process

make message simple and under-stable form for user. The message send by TESCO manager are
also encoded for better understanding. This helps in proper conversion of message into images.
Media- In this stage, the encoded message are transmitted through use of media channel.
It can be in oral or written form for sender. The medium are telephone, post, fax, e-mail, internet
and choice is decided by sender as per convenient and easiness. TESCO can use any media for
sending encoded messages as per their effectiveness and which can save their time and cost.
Decoding- It is the stage for converting symbols encoded by sender. The symbols are
easily under-stable by receiver. This has effectiveness as it make easy to understand message
send by sender to receiver.
Receiver- They are the person for whom message has been sent by sender. They are
considered as real owner of message. As TESCO has sent sent message to any consumers,
clients, suppliers so they are regarded as receiver. Once message has been received by receive in
proper way which sender wants to send then communication is regarded as successful.
Feedback- It is the stage where receiver confirms to sender about message received and
understood and process of communication complete. The receiver after receiving and
understanding message reply back to sender. The receiver of message by TESCO supplier, client
confirms same. It is effective if everything done properly otherwise creates problems.
Noise- This is regarded as obstruction which is caused by sender, receiver, message
during communication process (Alserhan, 2017). This stage is occurred in each and every
communication. There reason behind it are bad telephone connection, faulty encoding &
decoding, poor understanding of message, inattentive receiver, inappropriate gestures and others.
CONCLUSION
From above report, it can be concluded that marketing plays an important role in creating
promotion and advertising in mind of customers. There are various channels used for promotion
such as advertising, direct marketing, personal selling and other in order to sell products in
competitive market. There are theories such as AIDA model which convert attention to action in
which consumer pay attention towards product and finally purchase it. Communication process
is the step through message is send by sender to receiver which comes across various steps.
Through this channel also promotion can be done for goods and services.

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Online
Tesco says growth 'on track' as sales rise again. 2019. [Online]. Available through:
<https://www.bbc.com/news/business-44493414,>.