Tesco's Marketing Strategies and Customer Behavior

This report analyzes Tesco's adoption of various marketing concepts, including product, selling, and marketing concepts. It examines the company's strategies to attract customers and retain their prestigious clientele. The report also delves into consumer behavior factors influenced by cultural, social, personal characteristics, and online versus offline shopping preferences.

MARKETING PRINCIPES
AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1.1 Use of Marketing concepts and key terminologies in Tesco...............................................3
1.2 Buying decisions of customers under various situations......................................................4
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Marketing is a concept for profit as well as non profit business. It is a broad process that
includes research, product design and its development along with promotion and customer
service. marketing mix , Customer retention, research and development and promotional mix are
some of the elements of marketing. Tesco., is a multinational company engaged in the business
of grocery and general merchandise. It is the third largest retailer in the world (Jobber and Ellis-
Chadwick, 2012).
PART 1
1.1 Use of Marketing concepts and key terminologies in Tesco
Marketing concepts are used by companies in order to promote the products of company.
These are different concepts by which goals and objectives of firm can be best achieved through
identification and satisfaction of the customers stated and unstated needs and wants. Tesco is the
public limited company which is engaged in the grocery and general merchandise retail
business. It has 6902 stores and revenue of 54,455 billion pounds (Donovan and Henley, 2010).
The company has adopted effective marketing strategies in which it has involved 3 marketing
concepts . The concepts which Tesco use are: Production concept- it is the concept of marketing in which consumers prefers products
that are widely available and inexpensive. It is more operation oriented than any other
concept. The company has adopted this concept as it enable the managers of Tesco to
achieve higher volume with low cost and intensive distribution strategy. By adoption of
this concept,Tesco aims to maximize its profitability by increased economies of scale.
Tesco compares needs of consumers with need to increase the output. Selling concept- In this concept it is clearly mentioned that the customers will buy
products only if Tesco aggressively promotes or sell its products. As, in this present
world, only selling is not the tool by which company can sell its product but marketing is
also needed as well. It is the concept in which customers of Tesco does not buy products
unless they are not supposed or persuaded to do so through selling efforts by company.
So the company should use effective selling strategies to influence its customers
(Lefebvre, 2012).

 Marketing concept- it is the concept which has been used by Tesco which focuses on
needs and wants of targets and delivering value better than its competitors like Primark
and Asda. It involves making huge efforts in marketing of its products so that customers
can get attracted and buy products and services of Tesco.
The said company Tesco, has adopted these 3 concepts of marketing. Consumers of Tesco
prefers those products which are of good quality and also of innovative features. The company
have adopted various attractive methods of selling its products to its customers with effective
marketing strategies (Hagberg and Kjellberg, 2010). Company wants its customers to prefer their
brand only. There are 4 Ps of marketing :
 product
 price
 place
 people.
1.2 Buying decisions of customers under various situations
Buyer decision process is the decision making process used by customers regarding
market transactions before, during or after the purchase being done of any goods and services.
The consumers want the companies to understand about their needs and wants and render
products and services accordingly. As goal and objective of every company is to satisfy its
customers, so it is necessary for the company to adoption of marketing strategies that will attract
the customers. There are many factors by buying behaviour of buyers can be influenced.
Costumers of Tesco can make their decisions under various situations like: locally,
internationally, online and offline. Decisions under various categories are:
 Local marketplace: local market is a market which includes local market area presenting
the particular city. Consumers are sometimes, not want to purchase products and services
from an international brand or online. So they prefer going for shopping in local
marketplace (Luca and Suggs, 2013). The factors they consider while purchasing goods
and services and which affect the buying decision are as:
1. whether the particular product is of good quality or made up of certified materials. They
do not want to purchase the materials which do not offer good quality. Customers of
tesco wants it to offer good organic and healthy food products so as it will not affect their
health. Also, in local market, buying behaviour is also influenced by the gesture of the

workers, as if their behaviour is not appealable then customers will not prefer the cited
company.
 Internationally : international consumer markets are described as all the individuals and
house holds international markets who buy or acquire goods and services for personal
consumption (Lefebvre, 2011). Buyer behaviour in international market is influenced by
buyer decision process. There are many factors which affects customers of Tesco,
internationally:
▪ customers can be affected by cultural, social and personal characteristics. The
customers of tesco can according to their cultures prefer products of company. It
means they prefer goods and services that match up their culture and social
environment. Also, customer can also affect their buying behaviour by personal
reasons. It means they will prefer those products in which they have any personal
interest.
 Online versus offline: Now a days consumers prefers online shopping. It is easier for
them to overcome large amount of options. Online shopping is easy for the customers as
they have more options of the products of tesco. The customers wants products at
reasonable prices along with good quality products. Customers prefers online shopping
when they do not have good options for store. While offline shopping is preferable when
they do not have good options online (Wood, 2012).
RECOMMENDATIONS
It has been recommended that the company namely Tesco has been adopted product and
marketing concept both as they form products according to the needs of customers. They have
adopted effective marketing strategies so as to attract customers (Varey, 2010). On the other
hand it has also been recommended that buyer behaviour is affected by cultural , social and
personal characteristics, so the company namely Tesco should adopt effective strategies so as to
attract its respective customers and get its goals and targets done.
CONCLUSION
It has been concluded from the above report that company namely Tesco has adopted
product concept, selling concept and also the marketing concept for delivery of their services.
There are four principles of marketing namely people, Price, product, and place. The company

wants to retain its prestigious customers by implementation of effective strategies so as to
achieve success. It has also been concluded that consumer behaviour are affected under various
situations like . International level and national level and also they are influenced by online
versus offline shopping. Thus, the company should always aim to implement strategies which are
effective and found attractive by consumers.
REFERENCES
BOOKS AND JOURNAL
Donovan, R. and Henley, N., 2010. Principles and practice of social marketing: an international
perspective. Cambridge University Press.
Hagberg, J. and Kjellberg, H., 2010. Who performs marketing? Dimensions of agential variation
in market practice. Industrial Marketing Management. 39(6). pp.1028-1037.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Lefebvre, R.C., 2011. An integrative model for social marketing. Journal of Social Marketing.
1(1). pp.54-72.

Lefebvre, R.C., 2012. Transformative social marketing: co-creating the social marketing
discipline and brand. Journal of Social Marketing. 2(2). p.118.
Luca, N.R. and Suggs, L.S., 2013. Theory and model use in social marketing health
interventions. Journal of health communication. 18(1). pp.20-40.
Varey, R.J., 2010. Marketing means and ends for a sustainable society: A welfare agenda for
transformative change. Journal of Macromarketing. 30(2). pp.112-126.
Wood, M., 2012. Marketing social marketing. Journal of Social Marketing. 2(2). pp.94-102.