Principles and Practices of Marketing

This presentation provides an overview of the principles and practices of marketing. It covers topics such as the SOSTAC model, PEST analysis, objectives, strategies, tactics, and more. The presentation also explores the process of expanding a business in Romania. The course for this presentation is Marketing, and the college/university is not mentioned.

Principles and Practices of marketing

 Introduction
 SOSTAC Model
◦ Situation
◦ Objectives
◦ Strategy
◦ Tactics
◦ Action plan
◦ control
 Conclusion
 References
Table of content

 Marketing refers to the critical framework of the business enterprise that is
made for profit and not profit criteria of the businesses. It is a wide
process that includes the proper research, design, customer satisfaction,
promotion, development and retention of employees who provide the
services to the customers in a very efficient way. It can be done by using
the core elements of the principles, strategies and tactics decision making.
This report is based on the Tesco which is a fashion retail store in the UK
and want to spend their business in Romania so that they will increase its
market growth and profits for a long term survival.
Introduction

SOSTAC Model
SOSTAC model is represent as a
marketing model that is proposed
by PR Smith since 1990s. It
includes the six acronyms that
shows the fundamental results of
the marketing.
Situation
This is the first step
which shows the marketing
planning framework that helps in
expanding the business and earns
a high market growth.

Pest analysis
 Political factor – Political factor of Romania is a republic independent
parliamentary that is linked with judiciary and legislative branch of the government
of country. It has strong relation with European countries and United States due to
this fact Tesco want to expand their market in the country because of good relation
between the country and they follow a liberalizing rule that is very helpful for the
company to expand their business without any extra cost and trade tariffs.
 Economical factor – The economic growth of the Romania is stable and due to this
country has be managed all the economic activities in a good way. They try to avoid
the uncertainty that was present the problem.
CONTINUE…

 Social factor - This factor shows that Romania is far from ethnic composition in
the country. In this if a Tesco expand their market in romaine it is very difficult
by this factor as there people are far from ethnic composition. Also there
language are different form UK they follow a Romanian language to operate the
business they need to appoint the local employees who know that language. In
this Romania contains low score on Normative culture in the society.
 Technological factor – This factor show the using of advanced technology by
the country in this Romania is high- technology user country in the world and
there is tough competition with other high-tech country due to this expanding the
business of Tesco is favorable in the country.
Continue…

SMART Objectives
 Specific – In this organisation is expecting to encourage large customer
base with high profit margin related to their fashion store and their related
products.
 Measurable – In this Tesco is planning to increase their consumer base in
Romania by 20% and profit by 15%.
 Achievable – In this company is plan to accomplish and reach the goal by
providing proper training and development session to their employees so
that they work efficiently and effectively and give the positive outcome in
the Romania.
Objecvtives

Continue…
 Realistic – In this Tesco is enhancing their
revenues and sales by examining their
present and past data of the profit margin
and sales. In this it is notify that company
increase the total revenue by selling their
product to the customers.
 Time constraint – to achieve the high
market growth and large customer base in
the new market Tesco need 8 months in
achieving this target.

Porters generic model
 Cost leadership strategy - To enter into the new market Tesco can
choose the cost leadership strategy where they increase the profits by
charging the lower price and provides a variety of offers that may attract
the large customer base in the new market and company enhance their
profits and revenues.
Ansoff matrix
 in this Tesco is enter into the new market i.e. Romania and it helps in
increasing the sales and profits of the firm and also make new customers
within the new market. That helps in increasing the sales of the products
and profit margin of the firm.
Strategy

Market entry mode
Green field investments – Tesco choosing this mode of entry to enter into
the Romania as it is the largest fashion retail store in UK so to expand their
business unit and enhance the profit company need to directly enter into
the market by opening their stores to attracts the large customers base.
Pricing and positioning strategy
Penetration pricing strategy – In this firm charges the low price for their
quality products to enhance the market share.
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Product
 Product portfolio – in this Tesco offers in their fashion store a variety of
range including men’s wear, women’s wear, kids fear, jewelery etc. All this
product range attracts the number of customers as they offers the all age
group fashion products this will attracts the large customers base and
enhance the profit margin.
Price
 Penetrate pricing – It refer to that pricing that is initially low to garb the
large market share and earns a high margin profit.
Tactics

Continue…
Place
 Distribution – In this Tesco
distribute their products in
Romania where there are large
customer base and set a location
according to that where there are
majority of population is living.

Standardization Adaption Glocalisation
Product It suggest the consistency and
uniformity in the products
company offered to the
customers.
In this Tesco can modify their
products like sale only western
outfits because Romania
people enjoy this.
Tesco enter into the new
market with globalization that
means they sale the fashion
product that is need to the
global and international
market.
Price Tesco cannot follow the
standardized price in the new
market. And there is no
consistency present in the price
of goods.
They could choose the
penetrate pricing that is new to
the tesco to enter into the new
market.
They could choose that price
which is familiar to the
international level.
Place Tesco choose the consistence
place where they sale their
products and services.
They provide a online service
where they did not need any
store to sale their products.
Tesco develop their market
where economic stability is
strong.
Continue…

 It is the last stage where company can monitor and control all the activities
and plan that was made earlier in this they need to use the key performance
indicator to measure and evaluate the performance at every stage that is
helpful in earning the high profits. They also use benchmarking process to
set the goals according to the marketing standard and taking regular
customer feedbacks on the products and company so that they reduce the
drawbacks in that.
Control

 Political - due to openness in the government rules regarding the foreign
direct investment Tesco can easily enter in the market and sales their
products to the people of Romania.
 Economic – The economic condition is stable of the country due to this
company can easily maintain the large customer base. Economic condition
plays an important role to achieve the set objectives of the company.
 Social – They follows a Romanian culture so it is difficult to stay in the
market by the Tesco but their penetrate pricing strategy is attracting the
large customer base because they also offers a good quality products.
Justify the chosen country as a new market by doing PEST analysis of the SOSTAC

 From the above using information it is to be concluded that principles and
practices of marketing play an important role to identify the customers,
environment, geographical, technological, social factor etc to enhance the
profit margin and sales of the company. This rep[ort examine the facts
related to expanding the business unit in other country with their products
and for this they could use the SOSTAC model so that they can easily
operate their business unit in the new market and attracts the large
customer base.
CONCLUSION

 Duncan, S.F. and Goddard, H.W., 2016. Family life education: Principles
and practices for effective outreach. Sage Publications.
 Dumont, A.M. and et. al., 2016. Clarifying the socioeconomic
dimensions of agroecology: between principles and
practices. Agroecology and Sustainable Food Systems. 40(1). pp.24-
47.
 Vos, L., 2015. Simulation games in business and marketing education:
How educators assess student learning from simulations. The
International Journal of Management Education. 13(1). pp.57-74.
 Юровская, М.Б., 2017. Use of the SOSTAC model and SMART method
in developing marketing campaigns. In Наука, образование,
общество: тенденции и перспективы развития (pp. 238-239).
 ALIF, A.P., 2018. PENGEMBANGAN SOSIAL MEDIA MARKETING
MENGGUNAKAN SOSTAC MODEL UNTUK MENDUKUNG STRATEGI
PEMASARAN (STUDI KASUS REZZA CLOTHING). Skripsi.
REFERENCES

THANK-YOU