Principles of Marketing Management

This report discusses the principles of marketing management and their importance in business success. It focuses on TESCO, a multinational retailer, and analyzes its macro and micro factors, competitive analysis, and strategic priorities. Learn about the impact of external and internal factors on TESCO's performance.

Principles of
Marketing
Management

EXECUTIVE SUMMARY
Marketing is the function of persuading the buyers towards the organisation. It is seen that
following the principles of marketing is fundamental need of the company. In this report there is
discussion about a company as well as the external and internal factors that impact the company
are discussed. It is important to identify the competitors of the organisation so a competitive
analysis of industry is done in the present report. SWOT analysis and some strategies for the
future are also formulated and presented in this report.

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
About Company......................................................................................................................3
Macro analysis........................................................................................................................3
Micro Analysis.......................................................................................................................5
Competitive analysis..............................................................................................................6
SWOT Analysis of TESCO....................................................................................................7
Strategic priorities for the coming year..................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
It is vital to understand that marketing is one of the most important functions of
management. Marketing is the process of attracting customers towards the company as it helps to
enhance the sales of the organisation (Amin and Priansah, 2019). Present report is based on
multinational groceries and general merchandise retailer known as TESCO. The company has its
headquarters in Welwyn Garden City, England. The report is based on market audit of TESCO in
UK. There is discussion related to current scenario going on in UK and its impact on company.
There is discussion related to internal as well as external factors that have impact on the
performance of company. In the end of the report there are strategic priorities that help to deal
with the current situation.
MAIN BODY
About Company
TESCO is third larger in world if measured in gross revenue and ninth largest if measured
in revenue. It is vital to note that the company was found 102 years back in 1919 by Jack Cohen
in Hackney, London, England, and UK (Kotliar and Yurchyshyn, 2018). The products offered
by the company are retailing of books, electronics, clothing, furniture, toys, software, financial
services, petrol, telecoms and internet services. TESCO is multinational organisation and has its
operations around the globe. The company has 7,005 shops in total as per the records of 2020. It
is seen that the company provides employment to around 423,092 employees.
2016 2017
2018
(restated)
(a)
2019
(restated)
(b) 2020(c)
Financial statistics (£m)
Sales
UK & ROI 37,189 37,692 38,656 44,883 45,752
It is important to note that COVID 19 has impacted all the business organisations. In
relation to TESCO it deals in essential goods also. So it is vital to know that the company is
facing losses in some business but the business of fruits, vegetables and all the essential goods
has grown up.

Macro analysis
Macro analysis is the study of external factors that have impact on industry. It is important
to note that these factors have impact on the performance of company. PESTLE Analysis is a
framework that analyse the key factors of the environment. These factors are external to the
organisation but have impact on the company (Bezus and Golovko, 2021). PESTLE analysis is
study of Sociological, Political, Economic, Legal Technological, and Environmental Factors.
The PESTLE Analysis in relation to TESCO is mentioned below:
Political Factors: It is seen that all the policies and procedures formulated by the
government come under political factors. It is seen in regard to TESCO the company is
multinational and has its operations in various parts of world. It is seen that the company follows
all the policies and that in turn helps the company to get the support of government. The political
conditions in UK are also stable and that is also beneficial for the organisation.
Economic Factors: There are number of economic factors that may impact the condition of
an organisation such as inflation rate, interest rate, leverage cost, demand and supply (Manea
and Purcaru, 2017). It is seen that the demand for goods of TESCO is high and that helps the
company to earn more profits. It is seen that TESCO has 30% market share in UK.
Social Factors: It is important to note that a business operates in society and it is important
to satisfy the needs and wants of customers. The trends and preference of customers keep on
changing and that impacts the business. It is vital to note that TESCO studies the trends in the
market and satisfy the needs and wants of customers.
Technological Factors: It is seen that technology is updating at a fast rate. It is important to
go with flow and make right use of technology. It is beneficial for the company to use
technology as it helps to serve the customers in an effective way (eturi and Urotadze, 2017). In
regard to TESCO the company is using technology and have started the concept of online
shopping. As well the self-checkout point is also an example of use of technology. It helps to
attract the customers and serve them effectively.
Legal Factors: It is vital for an organisation to follow the laws and legislations that they are
eligible and important to follow. In regard to TESCO the company follows the laws and takes
care of price and take licence from food authority. It helps TESCO to work effectively and serve
the customers in a smooth manner.

Environmental factors: It is important that all the resources are from environment and it is
the duty of company to take care of environment (Giyazova and Zayniev, 2020). In relation to
TESCO the company uses all the resources optimally and along with that they make efforts
reduce the carbon footprints that harm the environment.
These are the Marco factors that impact TESCO. The company should follow all rules and
regulations. As well as serve the customers as per the trends as kit helps the company to earn
profits. These are the external factors that have impact on the performance of the business. It is
vital to note that these are helpful to formulate strategies.
Micro Analysis
It is analysis of all the micro factors that have impact on the performance and operations of an
organisation. It helps in decision making as well as formulating strategy for the company. So for
effective decision making it is suggested to conduct proper study of the micro factions. The
micro analysis in relation to TESCO is done below:
Customers: It is important to note that customers are most important part of an organisation. It is
seen that the real success of the organisation depends on the customers they serve (Tokarev,
Shkarovskiy and Soldatova, 2020). It is seen that company is 27.9% in United Kingdoms. It is

seen that company target the customers and then provide them goods and services according to
needs and preference of customers. It helps to retain customers in the organisation.
Suppliers: Supplier is the person that supplies the goods and services to other company. It is
seen that all the goods and services are made available to the company by supplier and the
person is responsible for timely availability of goods. There are number of suppliers that are
loyal for TESCO. Branston is one of the suppliers that are supplying the goods and services since
last 25 years. AMT is another supplier that supplies goods and services from last 20 years and
from 2014 AMT focuses on supplying citrus fruit, pineapples grapes, and melons to Tesco.
These suppliers play a vital role in success of the company (Olha, Viktoriya and Samuel, 2019).
If the products will not be available on time then it may cause problems for TESCO to provide
the goods to the customers.
Marketing intermediaries & publics: It is seen that the company conducts research of the
market and takes care of the trends of the market and the forms strategies that benefits the
business. It is important for an organisation to form marketing mix and work on all the 4P’s of
Marketing as that helps the company to serve the customers in an effective and efficient manner.
Competitive analysis
It is vital to note that competition is present at every level. It is important for a business
organisation to know about the competition and formulate strategies that help the business to
form strategies that helps them to gain advantage over the competitors. It is vital for a business to
serve the customers in an effective way than the competitors. The competitive analysis of
TESCO is discussed below.
Strategic Group Analysis
It is an analysis based on group of companies that are part of same industry. As all of
them have similar business model are close competitors of each other. In relation to competitors
of TESCO the main competitors are ASDA, Sainsbury’s, and Morison’s. All these business
organisations lie in same strategic group. It is seen that the companies have similar price and
TESCO provides goods and affordable price with good quality. When a company wishes to
increase its market share and therefore needs a new plan, it must consider the various strategic
categories (Hunt, 2018). The restructuring of these strategic groups may have a significant
impact on each individual's performance. It is important for an organisation so as to become

market leader of the industry. It will help the company to serve the needs and wants of the
customers and attain lead in the market.
Perceptual mappings
It is the visual representation of the company in regard to its competitors. It is seen that
the company stands is shown in map. A perceptual map is used to describe the images that
customers have of brands, products, services, and other business offerings, as well as their
reactions to them. During the product development process, this data will assist a company in
identifying possible new products (Samad, 2019). It is seen that in relation to TESCO company
serves the customers in an effective way. All the competitors are serving the market but TESCO
is leader of the customers in UK. It is seen that the company is famous for providing goods and
affordable prices that are higher than that of customers. The company is able to establish a strong
brand image in the market and serve all the customers in an effective manner. TESCO has strong
position that is of high quality at high price.
Market share in comparison with competitions in UK
Tesco 27.9%
Sainsbury's 16.3%

Asda 15.5%
Morrisons 10.8%
SWOT Analysis of TESCO

Strengths
 The company has taken right expansion
decision and it is largest chain of
supermarkets in UK. The company has
always grabbed the opportunities and
become successful.
 TESCO conducts proper research about
customers’ needs and wants and
innovates the product accordingly to
satisfy them (Fine, 2017). Along with
that the marketing strategies of
company help them to attract the
customers.
Weaknesses
 There are various competitors of the
company. Along with that they get
tough competition with online stores.
So the company sets prices that are
lower that then the competitors and that
reduces the profit margin of the
company.
 The company launches various
programmes to attract and engage
customers, but still there is less
switching cost and TESCO is unable to
retain the customers.
Opportunities
 The products offered by company are
also used by rural people. This shows
the market covered by company is
large. This shows the company has
taken opportunity of serving customers
in remote villages.
 The company also partners to explore
new markets.
Threats
 The biggest threat faced by company is
that of competition. There are direct
competitors of the company like
Sainsbury’s, Asda.
 COVID 19 is one of the challenges that
is faced by the organisation nowadays.
Strategic priorities for the coming year
Some of the strategies that must be formulated by TESCO for coming years are mentioned
below:
 As there is huge competition in the market, it is vital to innovate the products and
enhance the accessibility of the products and make them available for the customers.

 As COVID 19 has cause pandemic around the world. The company should take care of
safety of its customers and enhance the option of online shopping as it will be beneficial
for the organisation.
 The company should provide offers and discounts to the customers. It will help the
company to attract and persuade the customers in an effective manner.

CONCLUSION
From the above report related to principle of marketing it can be concluded that
marketing is one of the most important function of management and it helps in success of the
business. The report is based on the principles of marketing followed by TESCO. There is brief
discussion related to macro and micro analysis of the company. Competitive analysis is also part
of this report. SWOT analysis is also done to analyse the strengths as well as weakness of the
company that will help to formulate strategies for the coming year.

REFERENCES
Books and Journals
Amin, M. and Priansah, P., 2019. Marketing Communication Strategy To Improve Tourism
Potential. Budapest International Research and Critics Institute-Journal (BIRCI-
Journal), 2(4), pp.160-66.
Bezus, R. and Golovko, L., 2021. System approach to organic producers’ marketing activities
based on the sustainable development concept. Bulgarian Journal of Agricultural
Science, 27(1), pp.88-96.
Fine, S.H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12).
Routledge.
Giyazova, N.B. and Zayniev, A.A., 2020. Types of marketing communications and their
classification. In International scientific review of the problems of economics, finance
and management (pp. 32-38).
Hunt, S.D., 2018. Advancing marketing strategy in the marketing discipline and beyond: From
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management, 34(1-2), pp.16-51.
Kotliar, V. and Yurchyshyn, I., 2018. Marketing principles of «Apple» corporation.
Manea, N. and Purcaru, M., 2017. The evolution of educational marketing. Annals of Spiru
Haret University, Economic Series, 17(4), pp.37-45.
Olha, P., Viktoriya, B. and Samuel, C., 2019. The Theoretical And Methodological Bases Of
Peace Marketing. Economics and Management, 16(1), pp.99-111.
Samad, N., 2019. Social & Non-Profit Marketing. Contemporary Issues in Marketing: Principles
and Practice, p.337.
Seturi, M. and Urotadze, E., 2017. About Marketing Process Model and Relationship Marketing.
In Proceedings of International Workshop „Model-Based Governance for Smart
Organizational Future (pp. 169-171).
Tokarev, B., Shkarovskiy, S. and Soldatova, N., 2020, March. Concept of Marketing Models
Combining at Stages of Innovative Startup Implementation. In Institute of Scientific
Communications Conference (pp. 1687-1695). Springer, Cham.