Role of Technologies in Improving Relationship Marketing in Tesco

This report discusses the role of technologies in improving relationship marketing in Tesco and how data obtained about different customers improves customer experience through online means. It also explores the segmentation strategy of Tesco and its impact on targeting and positioning strategies. Additionally, it discusses the needs and requirements of new target segments for Tesco.

SALES AND MARKETING
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Role of technologies in improving relationship marketing in Tesco..........................................3
How data obtained about different customer improves customer experience through online
means...........................................................................................................................................5
TASK 2............................................................................................................................................6
Segmentation strategy of Tesco and how it can enhance the business and the impact of these
strategies on targeting and positioning strategies........................................................................6
TASK 3............................................................................................................................................9
Needs and requirements of new target segments........................................................................9
TASK 4..........................................................................................................................................12
Recommendations for fulfilling the customer needs and customer satisfaction.......................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Sales operations of an organisation help the business in selling the goods and services
that are provided by the company. Marketing is a approach that is adopted by the companies
through which the business promote the products and services that are provided by the
organisations. With the help of marketing, the business can increase the potential sale by
promoting, advertising the products and services that are sold by the company (Ahlemeyer-
Stubbe and Müller., 2020). The roles and responsibilities of sales and marketing department are
interrelated and dependent on each other. Tesco was founded by Jack Cohen in 1919 and is one
of the largest retailers in the industry. The company operates as a retailer and aims at delivering
the services worldwide. There are several other subsidiary companies which are introduced by
Tesco to deliver their products and services worldwide. This report is based on the operations of
sales and marketing department and on the approaches and strategies that are adopted by the
companies for effective sales and marketing functions.
TASK 1
Role of technologies in improving relationship marketing in Tesco
Marketing is a process of establishing a profitable relationship with customers by
achieving organisational objectives. Relationship marketing involves different innovative
strategies and plans for engaging with target customers and achieve organisational objectives. In
context of Tesco, which a a multinational retailer based out of UK. It uses different marketing
approaches to reach the target segment and attain customer satisfaction to achieve organisational
goals. In the era of technological advancement, relationship marketing involves marketing via
internet from online and digital platforms. Internet and social media marketing involves
engaging with customer by using internet as digital media platforms from different connected
devices.
Digital marketing
Digital market helps to promote goods and services via online platforms. In the modern
technological era, where everything is getting digital where the basic things like buying groceries
and vegetable are getting digital. Tesco uses digital media platforms to promote goods and
services to via online platforms (Chalmers., 2019). Digital marketing helps to engage with target
customers and reduces cost of interacting with each customer specifically. It reaches vast target
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segment with just a click. Tesco has established online site where it interacts with target
customer via online website. Customer can access online website of Tesco from anywhere and
order their groceries even sitting at home. After the delivery of the ordered items, customer can
also upload feedback in online websites regarding products and service quality. Tesco uses
different attractive pricing strategies to like discounts and attractive deals to attract customers.
Customers an also interact with each other as uploading recipes of different food items which
influence customers and helps in maintain a strong customer base (Chernev., 2018). Digital
marketing strategies used by Tesco helps to engage with customers from anywhere and
everywhere. Digital marketing helps in maintaining strong customer base and helps to achieve
profit and sales goals. Different digital media platforms used by Tesco are discussed below:
 Social media marketing- It involves marketing via social media platforms like
Facebook, YouTube, Instagram, Twitter. Social media platforms helps the marketer to
reach the customers with just a click. Tesco has indulged in social media marketing to
majorly segment and attract youth. To engage with target customer Tesco promotes it's
goods and services using social platforms. Engaging, communicating and responding to
customer feedbacks and questions helps Tesco to build a strong customer relationship and
experience. Tesco creates social media accounts where it uploads pictures and videos
regarding new launched products responds to each customer queries.
 Email marketing- Tesco uses email marketing is a digital media marketing for engaging
with customer by sending emails to selected prospects of customised advertising
message, reviews about different products and services and customer feedback
experience. Relationship marketing via email media helps Tesco to target different
selected prospects more effectively. Tesco renders customised emails to customers to
establish a long lasting and profitable customer engagement (Cummins, Peltier, and
Dixon., 2016).
 Search engine optimization (SEO) marketing- Tesco uses Search engine optimization
marketing by optimization search results for better user experience. Search engine
optimization ensures that search results in Google appears at the top. Where Tesco and
other organisation spend millions for marketing good and services using Search engine
optimization platforms. When user searches for related goods and services in Goggle,
Search engine optimization marketing helps to appear organisation name in top results.
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 Software application- Tesco has software application which helps to build a personal
means of communication with different customers. customers can have all the necessary
information regarding their purchases and offered products and services by Tesco which
is accessible from anywhere.
 Affiliate marketing- Tesco uses affiliate marketing techniques where different social
media influencer promotes different brands to large audience via social media platforms.
It is a relationship marketing techniques which helps to engage and attracts large
customers (Deepak and Jeyakumar., 2019).
 Content marketing- Content marketing is a marketing technique used by Tesco to
spread awareness among customers via online platforms. It creates effective contents
about the brand and advertise products and services to large section of people.
How data obtained about different customer improves customer experience through online
means
In order to communicate with target customers, organisations uses different modes to effectively
interact and respond to the queries of the target prospects. Tesco maintain cloud software and
data analytics tools in order to keep the data records of different customers which helps
customers to analyse needs and wants of customers and provide them quality services. It helps to
analyse customer behaviour which results as flexibility and adaptability to different external
changes. Tesco also implement different innovative and strategic plans and policies to determine
for rendering quality services and enhancing customer experience.
 Customer relationship- Effective communication enhances customer relationship as
customer feel satisfied when they are been served. By collecting and analysing data about
different customers it helps analyse desires of each customer. Tesco communicates with
different customers using customer service channels which helps to maintain profitable
relationships. Customer issues are been resolved and they also gets personalised attention
which improves customer relationship.
 Customer needs and wants- When information regarding different customers are been
gathered it helps in anticipating the needs and desires of customers. An organisation can
focus and monitor customer preference and can determine strategies and policies which
will help to improve customer services (Desai and et.al., 2021).
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 New product launches- Tesco spreads awareness about their new product launches to
the targeted customers, via customer services channel and other online platforms. Data
driven marketing objectives helps to create awarenesses which helps to boost sales and
profitability.
TASK 2
Segmentation strategy of Tesco and how it can enhance the business and the impact of these
strategies on targeting and positioning strategies
Tesco adapts corporate marketing strategy which enhance stability of the business. With
the help of productive marketing strategy, Tesco have became the third largest retailers in the
world. The business values accessibility of the products rather than valuing diversity. The
marketing strategies such as segmentation, targeting and positioning help the business to analyse
the micro and macro environment which can affect the decisions and other functions of the
organisation (Gentsch., 2018). By environmental scanning, Tesco analyses the
political,economic, socio-cultural, technological, legal and other factors which can affect the
operations of the business. The company is engaged in the marketing strategy of market
segmentation, targeting and positioning of their products and services through which the can
attract numerous customers and deliver the demands of the consumers.
SEGMENTATION
This is the first stage of marketing strategy which help the business top classify different
types of consumers in various categories based on the geographic, demographic, psychographic
and behavioural factors. This process help the business to divide and classify the target market in
different small categories based on their parameters. This approach help to divide the
heterogeneous market into homogeneous segments. The segmentation strategies adopted by the
company help to deliver products and services which can increase the customer satisfaction. The
strategies that are adopted by the business for segmenting the target market, are explained below:
 Identifying the target market- Segmentation strategy of marketing help the business to
classify the market on different parameters which can be based on demographic,
geographic, psychographic and behavioural parameters. Through segmentation, the
business can broadly classify the consumers based on their categories through which the
business can easily analyse the consumers and their behavioural patterns (Johnson.,
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2015). With the help of the research and marketing team, Tesco analyse the environment
and the consumer demands and then divide the consumer based on their age, religion,
gender, income, occupation, country, state, social interest, values, patterns of use and
brand loyalty.
 Identify the buyers- With the help of the segmentation strategies, the business can
identify the potential buyers of the products and services which are rendered by the
organisation. Tesco conduct an effective research through which they scan the market
and analyse the potential and loyal buyers of their products and services. Through
evaluating the potential buyers, Tesco aims to deliver the best possible products and
services which can help them to retain their loyal customers and attract numerous
consumers.
 Analysing the consumer needs and demands- By environmental scanning, the business
can analyse the consumer demands and interest and can grasp more opportunities that can
help the business to gain competitive advantage. The consumer demand can be analysed
through evaluating the micro and macro environment and evaluating the preferences of
the consumers of the targeted market (Johnson, Matthes and Friend., 2019). Tesco
analyse the consumer needs and demands by conducting an research and through
analysing the outcomes of the research by which the consumer interests can be evaluated
and the business can gain competitive advantage.
These strategies can help the business in different ways, some of the benefits that an organisation
can get are explained below:
 Effective environmental scanning- Segmenting the market help the business in
scanning the environment effectively through which the organisation can take necessary
actions which can help the company in organisational growth.
 Optimum utilisation of resources- Through classifying the targeted market and
identifying the consumers, the use of resources can be done effectively which will help
the business in minimise the wastage and complete the tasks and activities within the
specific time (Keszey and Biemans., 2015).
 Effective data analysis- The data can be analysed effectively through data analysis tools
and by conducting various surveys and other methods through which accurate data can be
collected and the consumer demand can be effectively evaluated.
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 Competitive advantage- The segmentation strategies help the business in gaining
competitive advantage through environmental scanning by which the organisation can
identify the micro and macro environment which can affect the functioning of the
organisation.
 Effective recognition- Segmentation strategies can help the business to build and
maintain the goodwill of the organisation as the company will focus on providing
efficient products and services to the targeted market through which the image and
goodwill of the company within the consumers can be maintained. The business can gain
recognition and maintain goodwill through effective segmentation strategies by providing
quality products and services to the consumers (Kotler., 2015).
Impact of segmentation strategies on targeting and positioning strategies are mentioned below:
 Market analysis- The segmentation strategies help the business to analyse the targeted
market and position the products and services effectively and efficiently. The analysis of
the market can be done effectively through which the needs and demands of the potential
customers can be analysed.
 Resource utilization- It helps the organisation to utilize the resources effectively through
which the business can gain competitive advantage. These strategies also help the
business in using affordable resources which can be beneficiary and also help in
completing the tasks and activities within time which can enhance the productivity of the
organisation.
 Identification of customers- Segmentation of the market also help the business to
identify the customers, buyers and the market that needs to be targeted. An effective
segmentation strategy help the business to critically analyse the consumers and the
overall market through which the company can position the products and services to the
accurate market.
 Competitive rivalry- With the help of segmentation strategy, the business can introduce
products to the market which can help the organisation in competitive rivalry (Kotler.,
2016).
 Profit maximization- Segmentation strategies help the business in getting better returns
and maximise the profits. The market segments help the organisation to set the products
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in the in the segmented and targeted market. The competitors can also be analysed and
competitive products and services can be offered through that analysis.
TASK 3
Needs and requirements of new target segments
Tesco is planning to expand its customer base, the new customer target is customer living
in rural areas. Tesco has conducted research analysis and surveys to analyse actual neds and
wants of people in rural areas (Kotler and et.al., 2017). According to the data analysis and
interpretation the major needs and wants of people in rural areas are having budget friendly
products which are accessible from anywhere. Tesco has implemented different strategies and
policies in order to meet consumer needs and wants. Some suggestions to cater the needs and
wants of the new target prospects are been discussed below:
 Resource optimization- Resource optimisation refers to optimise use of resources in
order save cost of production, low cost of production further helps in reduced market
prices of the products and services, it involves different process by optimise use of
available resources which involves human, raw material and other manufacturing items.
optimise use of resources leads to improve the quality of products and services.
 Supply chain management- Effective supply chain management involves flow of goods
and services from different suppliers. it involves transfer of goods and services from
raw ,material , semi finished and finished goods. an effective supply chain management
involves low cost of production with timely availability of goods and services. Tesco
selects effective supply chain management which helps in timely production and
availability of finished goods and services to customers.
 Store localities- For engaging with customers, Tesco has established different store
localities in rural areas to render services which is accessible to everyone. in rural areas
people do not have proper infrastructure facilities to access different store. Developing
store localities at different location will not only expand customer base but build strong
customer relationship (Kumar, Choi and Greene., 2017).
 Budget friendly products- Tesco uses unique pricing strategies so that rural customer
can purchase products and services. It sets lower prices of the products and services so
that customer can easily afford desired goods and services.
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 Human capital management- Tesco recruits efficient human capital which will help to
achieve organisation objectives. effective human capital will ensure efficient production
and meeting production flexibilities and challenges of changes in demand. It helps to
render continuous improvement in production activities.
 Capital intensive- Establishing capital intensive manufacturing techniques helps easy
production and manufacturing activities. It will also help to manage wastage of resources
as all production activities will be conducted accurately, help to achieve technological
economies to scale will reduce errors and issues, efficient managing and control of
production activities (Liguori and Pittz., 2020).
 Product differentiation- Product differentiation is a technique used by Tesco, where
company produces innovative products which are different from this competitors. It
offers different unique packaging of groceries items, low prices, better customer
experience and pre and post sales services etc. which attracts customers to buy goods and
services.
 Reduced cost of production- Reduced cost of production strategies are used by Tesco in
while production of goods at large scale. Large scale of production promotes low cost of
production which further also reduces reduces selling and other production expenses.
 Quality products- Tesco manufactures quality products and services with optimum use
of resources. It focuses on unique packages and designs to the product. after analysing the
needs and demand of the customer in rural areas the company design the products
accordingly, the company also focus on rendering quality products which are basic or
staple food and other grocery items. It also renders innovative product features which
meets current need and demand of the customers (Liu and et.al., 2019).
 Delivery strategy- Company renders delivery of products at the doorstep of people living
in rural areas, Tesco provides services to the people who are not able to visit the physical
units, they can either order groceries via online channels or can even make phone calls.
Tesco provides speedy deliveries which render quality services and build strong
profitable relationship with customers.
 Quality services- Tesco render quality services to people living in rural areas, they
provide 24* 7 services to the customers, which attracts customer to and lighten customer
10

experience. Tesco has development call centre to respond to customer issues from online
or offline post or before sales services.
 Green production strategy- Tesco fulfils the social cost of green rendering products and
services. It uses different means like reduce the usage of polythene bags or plastic bags. It
uses different production techniques too reduce pollution in the environment. it also uses
different measures to recycle the waste and use biodegradable packaging to promote eco-
friendly products and services (Malshe and Al-Khatib., 2017).
 Flexible production strategy- It uses flexible production strategies to meet the current
needs and demand of the market. Tesco implement necessary changes according to needs
and demand of customers. It formulates plans and policies to implement adaptability and
flexibilities in production activities. Consumer satisfaction is been achieved by meeting
consumer current needs and demand for the purpose of accomplishing organisational
profit gaols and objectives.
 Advertising strategies- It uses different advertising strategies to promote the goods and
services to the final prospects. Tesco uses advertising strategies involves effective
marketing and promotional tools to implement adverting campaigns. It involves outdoor
media, print media, online media to advertise the brand of organisation. Effective
advertising strategies helps to attract customers to buy products and services which boost
sales, further reduces the cost of production and fulfils the organisational objectives of
production low budget products.
 Distribution channels- Tesco uses effective distribution channels which helps in proper
availability of goods and services to customer living in different locations. Distribution
channels involves medium of transportation, for timely availability of goods to reduce the
shortage of goods in physical units (Malshe and Krush., 2020).
Above are some strategies and suggestion that Tesco as implemented to achieve organisational
objectives of expanding customer base in rural areas. Tesco has segmented the customer market,
analysed the neds and wants, developed products and services which are affordable and
accessible from different locations.
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TASK 4
Recommendations for fulfilling the customer needs and customer satisfaction
There are several strategies which can help the organisation in meeting the consumer
demand and delivering the products and services that can help the organisation to gain
competitive advantage. Some of the suggestions which can help the organisation in meeting the
consumer demand and consumer satisfaction are mentioned below:
 Identify the customer and the market- The identification of the customers and the
market is the basic fundamental which help the business in rendering the products and
services to the accurate market and to right potential consumers (Malshe and et.al., 2017).
As Tesco is expanding their business in the rural areas, the company should focus on
identifying and analysing the customers. The company should conduct an effective
research which will help to analyse the potential customers and evaluate the customer
demands.
 Distribution of the products at the targeted market- After analysing the targeted
market business must focus on distributing the products and services to the targeted
market through which the customer satisfaction can be accomplished. Tesco must use the
right team for distribution of the products and services through which the consumer
demands can be met.
 Delivers quality customer services- The consumers plays an important role in the
success of the organisation and the business must consider to provide quality services to
their customers which can help in retaining loyal customers and it also help in earning
more profit (Malshe, Sohi and Krush., 2017). Through effective quality customer services
the organisation can maintain their goodwill in the market and sustain for long-term.
Tesco must focus on providing valuable services to their customers by timely assistance
and effective communication.
 Promotion- The business should promote their products and services which can attract
numerous customers. The promotion activities can be performed through various modes
which can newspapers, TV, broacher, pamphlets, social media and other platforms.
Tesco should use different promotion strategies and advertise their attractive offers
through which they can attract numerous customers. The company must advertise their
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offers on their products and services through several media platforms and gain
competitive advantage.
 Accessible location- The location of the stores are also crucial aspect which can affect
the sales and profits of the organisation as easily accessible locations can help the
business to increase their sale and the company can also earn more profit (Mohammadian
and Makhani., 2019). Tesco must conduct an research and evaluate the locations which
can attract wide number of customers and which is easily accessible by the consumers.
The company must focus on opening their store on those locations only through which
they can maximize their sales.
 Establish contact with local retailers- The business must build and maintain contact
with local retailers through which they can distribute their products and services to
several customers. As Tesco will provide their products and services in the rural areas,
the organisation should build the contacts with the local retailers through which the
business can deliver their services to different targeted market.
 Delivery of products at home- As per rapidly changing environment, many companies
are providing the home delivery services through which the company can attract
customers. The business can adopt home delivery services through which the products
and services that are provided by the business can be delivered and customers can be
attracted. The company, Tesco should opt the home delivery services through which they
can deliver wide variety of products to the customers and the sale of the business can be
enhanced.
 Budget friendly products and services- For increasing the sale and for earning
maximum profit, the business must introduce low-budget products and services which
can help- the organisation in attracting potential customers. Tesco must manufacture and
deliver quality products which are budget friendly through which the organisation can
attract wide number of customers. The company must aim to sell the products at low
price with maintaining the quality through which the business can enhance the sale and
earn more profits from their operations (Olsen, Wagner and Thack., 2016).
 Focus essential products- By focusing on manufacturing and delivering essential
products the organisation can attract loyal and potential customers. The business must
focus on producing essential products rather than focusing on luxury products. By
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introducing the essential products the company can attract valuable consumers which will
increase the sale of the company. Tesco must focus on manufacturing and providing
essential products and services which can be analysed through an effective research and
analysing the customer demand and the market.
 Build effective communication- By maintaining an effective two way communication
will help the business to attract and retain their valuable and loyal customers and this will
also help in better understanding of the opinions (Park., 2020). Tesco must focus on
building and maintaining the effective communication through which the values and
opinions of the company and the consumers can be accurately understood and
communicated.
 Take feedbacks regularly- By taking regular feedbacks the company can increase the
sale of their products and services that are provided by the business. By taking regular
feedbacks, the opinions of the customers about the products and services can be analysed
through which the business can gain competitive advantage. Tesco should take regular
feedbacks from their customers through which they can take recommendation and
analyse the customer opinion and take necessary action which will increase the sale and
profit of the organisation (Peltier and Deeter-Schmelz., 2020).
 Maintain customer centric services- By building and maintaining a customer centric
approach will help the business to attract and retain loyal consumers. Tesco must adopt a
customer centric approach through which they can meet the customer demands and attain
customer satisfaction from the products and services which are provided by the company.
CONCLUSION
Sales and marketing are the activities which involves strategies and policies for
promoting and transfer of goods and services to the final prospects. marketing activities involves
segmentation, target and positioning which involves identifying the needs and wants, producing
the products and services in accordance of the identified needs and wants of the target customers.
it also involves different promotional techniques to advertise and aware about goods and services
to the final prospects. To boost sales and achieve profit goals organisation uses different pricing
strategies, supply chain management to achieve organisational objectives.
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