Marketing Process & Planning: The Marketing Concept, Functions and Mix

This report covers Tesco’s marketing management, including the marketing concept, functions, and mix. It explains how the marketing function works and interacts with other departments, and evaluates how the marketing mix contributes to the success of the organization. The report includes recommendations and a comprehensive media plan.

Higher National Diploma in Business
Management
Unit 2 Marketing Process & Planning
The Marketing Concept,
Functions and Mix (Part 1)
Marketing Planning (Part 2)
Name:
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ID:
Table of Content
Part 1: Briefing Paper
1.0 Introduction p
2.0 An explanation of the concept/definition of marketing in the 21st century
p
3.0 Description of the role of marketing function with examples from the
chosen organisation p
4.0 An analysis of how the marketing function works and interacts with other
departments p
5.0 An explanation of the extended marketing mix and examples from selected
supermarket p
2.0 An evaluation of how the marketing mix adopted by the selected
business (or business unit) contributes to the success of the organisation in
meeting their overall business objectives p
3.0 Recommendations p
9.0 Conclusions p
References p
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1.0 Introduction
Marketing is the set of activities and operations that are done for communicating with the
target audience and persuading them for buying brand goods and services. It plays an
important function in management. It also assists in enhancing sales of a business
organisation with creating a brand image. There are major losses that have been faced by
business organisations that has resulted in need of marketing after pandemic (Abdullaev and
Nabieva, 2021). It is important to make effective strategies along with implementing for
attaining success of entity.
The present report is covers Tesco’s marketing management. It is a British multinational
retailer that sells groceries and general merchandise which is headquartered in UK. It
revenue makes it world’s third largest retailer. This report is related to marketing and its role
in business. In this report, the interrelation is also discussed. There is marketing mix
comparison that is being used by Tesco for its competition. There is discussion in this report
about media plan of business organisation.
2.0 An explanation of the concept/definition of marketing in
the 21st century
Marketing is a procedure which consists of creating, exploring as well as delivering a value
in form of products and services to its potential customers. It engages target audience
towards business organisation along with retaining them for a longer time in the company. It
is important as to use marketing effective tools for gaining competitive advantages from
market.
3.0 Description of the role of marketing function with
examples from the chosen organisation
Marketing operations are important and needed for success of marketing department. It is
important to have upgraded technology and data analysis in business. In Tesco, all
campaigns are overseen as well as approved from marketing department for attaining
success in market.
There are various functions of marketing and are discussed in context to Tesco:
Distribution: It is important marketing department operation. Distribution strategy helps
business in deciding the ways or channels of delivering their product to final customers
(Stewart, 2019). It is important to select correct marketing channels for reaching more target
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audience. There are greatest distribution channels of network that is adopted by Tesco in UK
that are used for reaching customers with both stores and online mode.
Market research: There is a need as it is important for success of a business organisation.
It is necessary for launching new product as to have complete research that is related to the
trends present in market. It is observed that Tesco guarantees complete conduction of
proper research about products and market for launching a product (Graham, Nilsen and
Payne, 2019). The company targets its market after its research. It helps in carrying its
operations by conducting research in proper manner.
Market planning: After the research, market planning is done by business organisations. It
is important function which brings changes in operations in an effective manner. Marketing
team of Tesco plans and then operates accordingly for launching effective campaign in
market. They make different plans that are related with costs and budgets as well as plan
accordingly the campaign.
Designing and development of product: After analysing various trend of market,
designing or developing a new product is done as the next step. For attaining success in
market, a company needs to improve its product or to do some addition of new features in it.
Tesco sets product’s design by analysing various customer’s needs and wants. It is
important to have feedbacks also from its target audience for more improvisation in its
product portfolio.
Promotion: Marketing department promotes the offered products and services of company.
It is necessary to do advertisements in a good way for carrying out advertisements. Tesco
practises correct strategies for creating valuable brand reputation of it in market. There is a
need for using right and updated marketing methods for more target reach. It is important
that problems and their solutions are addressed on correct time for its customers.
4.0 An analysis of how the marketing function works and
interacts with other departments
The relationship of marketing function with other functions is explained below:
Marketing and research: The research department works for collecting all data and
information that is related to market. The trends are analysed and this helps in carrying on
various market changes. It is important to know changes that are in external environment as
well as they are analysed by Tesco’s research department. After research, they provide all
this information to marketing department (Rouban, 2022). Then it takes necessary actions
with help of addition of new features in product. The marking department explains innovation
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plan also for bringing necessary innovation with research department. The research and
marketing departments of company share all information and bring changes along with
innovation that leads to success.
Marketing and Finance: The finance department of Tesco formulates budget. They
help in taking monetary decisions that are related to funds allocation and their mobilisation.
The marketing department of Tesco has to approve all finances for undertaking any new
project as well as for launching new campaigns (Kang, Diao and Zanini, 2020). They
deliberate plan and then take approval of finance department that is related to monetary
requirement. The marketing and finance department of Tesco calculates investment return
for analysing benefits. This represents relationship in between them.
Marketing and Production: The production department works to convert raw
materials into final products. The process of production should ensure quality of products
that are available for target audience. The production department of Tesco enhances
products quality that are offered to market by the company. The information is
communicated to the customers by the marketing department. It helps in increasing sales of
company as well as help in knowing enhanced products quality. The marketing department
collects customer’s feedback and then it gets to know about changes (Maslova, Bozhuk and
Smirnova, 2019). The same concern is communicated to department of production for
making changes in production process.
5.0 An explanation of the extended marketing mix and
examples from selected supermarket
Marketing mix is a marketing tool used by organization to promote its products and services.
In context to Tesco, the marketing mix is below- Product- There are various products that are provided to market by Tesco. It offers
various products in market like household stuff, electronics, bakery products and
many others. Price- It is value that customer pays for product. Tesco uses pricing to attract sales
for its growth in target market. It uses a reasonable price for its products. Place- It is connected with place that will make the product available in market for
easy accessibility to target people of Tesco. It is present in 4673 different locations in
world. Promotion- It involves use of various strategies that promote product. Tesco uses
newspaper advertisement, social media and others for its promotion effectively.
Social media platform is mainly used by it.
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 People- It is related to the people that are associated with company and products.
Tesco has highly trained employees and experts in its organisation. Process- It is the process that is involved with product delivery. Tesco uses the
process that ensures speedy billing and delivery system of products with both online
and offline mode.
 Physical evidence- It consists of physical atmosphere of stores offline and online
that attract customers.
2.0 An evaluation of how the marketing mix adopted by
the selected business (or business unit) contributes to the
success of the organisation in meeting their overall
business objectives
The marketing mix helps in the gaining of more and more customers from market for Tesco.
The marketing mix helps in increasing and enhancing profits of it from market. It helps the
company to achieve the business objectives by completing its procedure and other
operations like delivery of products on time to its target audience in the market (Khudair, Abd
and Fahmi, 2019). Thereby resulting in increased profits and sales of the company in market
as well as also enhancing of brand value and reputation. With delivery of products in proper
time, the clients will be happy, thereby leading to increased value and reputation in the
market of company, Tesco. The products that are available for the target audience is going
to have a reasonable pricing range in the market. The product of the company will be
available on a fixed time period with a lot of ranges. The comparison of Tesco and Morrisons
marketing mix is as follows:
Marketing Mix
Elements
Tesco Morrisons
Product Tesco is organisation that deals
in products. The product range
includes electronics, stationary,
clothing, financial services etc.
The company provides quality
products to the customers. They
focus on providing fresh food.
Price Tesco follows cost leadership
strategy. It maintains low price for
its products.
The company uses multiple
pricing strategies. It is seen that
they use premium pricing for
products.
Place The distribution channels used by There are round 600 offline
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Tesco are offline and online
stores. Tesco has around 7000
offline stores.
stores of the company.
Promotion The promotion helps to reach
more customers. Tesco uses
television, newspapers, and other
media for customers.
Morrison’s uses various
rewarding schemes for retaining
customers. Social media
platforms and sales promotion
techniques to satisfy customers.
3.0 Recommendations
The recommendations are as follows:
 It is recommended to Tesco to focus on goals and objectives clearing for
understanding the requirement of products and services in market for success and
growth.
 It is recommended that complexities that come because of dynamic environment for
the company, management team should be ready always for accepting changes.
 One more recommendation is to motivate its people for doing work with more
productivity in Tesco’s operations.
9.0 Conclusions
It can be concluded that marketing plays an important role in the operating of business
activities. Marketing mix consists of various elements that help a business organisation in
developing and increasing the profits and sales. The marketing function is completely related
to various other functions that are being operated in the business organisation.
References
Abdullaev, A.M. and Nabieva, N.M., 2021. MARKETING STRATEGY AS THE BASIS OF
EFFICIENT DEVELOPMENT OF THE ENTERPRISE. Theoretical & Applied Science, (4),
pp.374-379.
Graham, R., Nilsen, P.W. and Payne, R.J., 2019. Visitor activity planning and management
in Canadian national parks: Marketing within a context of integration. In Social science in
natural resource management systems (pp. 149-166). Routledge.
Kang, J., Diao, Z. and Zanini, M.T., 2020. Business-to-business marketing responses to
COVID-19 crisis: a business process perspective. Marketing Intelligence & Planning.
Khudair, A.H., Abd, K.M.A. and Fahmi, A.M., 2019. Impact of Strategic Planning Practices
on Academic Marketing in Iraqi Higher Education. Academy of Strategic Management
Journal, 18(2), pp.1-8.
Maslova, T.D., Bozhuk, S.G. and Smirnova, D.V., 2019. Marketing changes
management. Дискурс, 5(1).
Rouban, A.S., 2022. Marketing Management and Its Role in Business Development and
Growth. Issue 1 Int'l JL Mgmt. & Human., 5, p.2363.
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Stewart, D.W., 2019. The Financial Imperative of Marketing. In Financial Dimensions of
Marketing Decisions (pp. 7-31). Palgrave Macmillan, Cham.
VIDHYA, M., 2019. Marketing. MJP Publisher.
Table of Content
Part 2: Marketing Plan
1.0 How the strategic marketing plan links with the overall organisational
mission, corporate strategy and objectives p
2.0 Clear and SMART marketing objectives p
3.0 Marketing research to support the new product line launch p
4.0 A situational analysis p-p
4.1 Marketing audit, making use of appropriate analytical tools including
SWOT, Pestle and 5C analysis p
4.2 A competitor analysis including the market segments p
4.3 Sub-segments p
4.4 Articulation of the new product value-proposition in the eyes of the
customer p
4.5 Development of the marketing strategies applied to the extended marketing
mix p
4.6 Setting of an overall marketing budget, including allocation of planned
spend p
4.7 Tactical actions p
4.8 Identifying appropriate control and monitoring measures to ensure
achievement of objectives including metrics to measure success such as
Return on Marketing Investment (ROMI) and Customer Lifetime Value (CLV)
p
5.0 A comprehensive media plan that supports the planned marketing
campaign p-p
5.1 A media budget p
5.2 Recommendations and rationale for selected and integrated multi-media
activities within the set budget that meet the marketing objectives p
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5.3 Appropriate digital, offline and social media channels for communication
p
5.6 Full justification for a multi-media plan based on quantitative and
qualitative criteria p
References p
1.0 How the strategic marketing plan links with the overall
organisational mission, corporate strategy and objectives
The marketing plan is important to attain goals and objectives of an organisation. The
mission of Tesco is to give better to its customers along with keeping them together. The
vision is to become highly valued by serving customers effectively as well as maintaining
good relationship and providing shareholders with information. Marketing plan is necessary
for developing and gaining various benefits that are there in market along with increase in
profits and sales.
2.0 Clear and SMART marketing objectives
The marketing objectives are important to be set for gaining more profits and sales by
Tesco. Some of the marketing objectives that are set such as enhancement of the customer
base by 5% that too in the time period of 6 months. It also aims to increase profitability by
10% within one year of company (El-Gindy and El-Mehy, 2020). It also objectifies to use and
implement newly and latest advanced marketing tools for more catching and attracting the
customers from the market on a great level.
3.0 Marketing research to support the new product line
launch
Marketing research is important is important for knowing the market, customers’ needs and
wants, marketing trends, even for determining strategy for marketing, for various marketing
campaigns that are needed to be undertaken for the growth and development of the new
products that are being launched in market. These steps are necessary to be undertaken
with the motive to gain and increase the profits, sales, market value, reputation of company
in market along with its brand value.
4.0 A situational analysis
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4.1 Marketing audit, making use of appropriate analytical tools
including SWOT, Pestle and 5C analysis
SWOT Analysis
Strengths Weakness
Tesco has maintained a good brand image
as well as reputation and it helps in
gaining loyal customers from market.
There is increased competition in market
because of various competitors. For
example, ASDA, Morrison’s.
Opportunities Threats
There are many opportunities present in
market and with the use of latest
technology success can be attained and
expansion of the business operations can
also be done.
Pandemic is a major threat faced by
Tesco. The lockdown situation caused
many issues in its operations.
PESTLE analysis:
This is a framework that is useful for an organisation to have information about the impact of
various external factors on the performance of company. It is important that Tesco has uses
proper implementation as it has its operations in international market (Fredman, 2022). So, it
is necessary for company to know about external factors and suitable strategies are
formulated accordingly. All the change drivers of external factors and their impact in context
to Tesco are described as follows:
Political factors: Political factors consists of various taxation policies, act of
legislation, rules and regulations as well as and other that are being formulated by the
government in an economy. It is important to note that political factors influence performance
of the company. It is seen that there is political stability that is present in UK and the
headquarters of Tesco are present in UK. It helps the company to have its operations in an
effective manner. The stable political conditions of UK help Tesco to do expansion of the
operations and trade smoothly.
Economic factors: It is seen that the world has faced the pandemic issue of Covid-
19. This has resulted in a negative impact on the economic conditions in world. Tesco has
started working with the help of online mode to reach its customers in world. Along with that,
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the company did not fire its employees as well as it also provided them with more
employment opportunities.
Social factors: It is important to see the company works for satisfying needs and
wants of customers. Customers are important section of society. Tesco works its operations
according to needs and wants of target customers. They provide services to its customers
with all the products under one roof for great conveyance of them (Grewal, 2018). Along with
that, they are aware regarding health issues as they provide quality goods to customers.
Technological factors: Tesco uses new and latest technology as it helps it to serve
its customers in an effective manner. There are various self-checkout points in Tesco that
are important at present time. The company uses various digital technologies for gaining
customers in an effective manner.
Legal factors: The laws and legislations are important as they need to be followed
by the company, Tesco. It is observed that Tesco assures that the follow up of the code of
practice that is given by Food Retailing Commission (FRC) in 2004. It also follows all the
applicable and needed employment laws for retain its employees in company for a longer
time.
Environmental factors: Tesco operates to use the resources in an effective way by
reducing the wastage in environment. It is observed that they also operate to reducing carbo
footprints for taking proper care of the environment and its elements.
5C analysis:
The 5C analysis is a framework that helps a business organisation in analysing the
environment of it. There are customers, company, collaborators, climate and competitors
that are its important 5Cs present in market. These 5Cs in context to Tesco are explained as
follows:
Customers: The customers of the company are people that are needing and wanting
products and services of it that are present in market. Tesco believes in creating its strong
customers base with the motive to earn them for a longer time period.
Company: Tesco is a multinational retailing company that sells general merchandise
products and services in the market for its customers. It has its operations and functions in
various sizes and price ranges that differentiate its products in market like large, small and
many other (López Choque, 2021). It has nearly 4673 shops that are located in various
countries of the globe.
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Collaborators: The collaborators are the third parties that directly operate with companies
with the motive to support and help business organisations or companies in developing as
well as in the execution of various strategies that are being undertaken by company for its
growth and development in market. Collaborators of Tesco are ROI, CE, Coca Cola, Nestle
and many others.
Climate: It is also called context. Tesco offers a wide variety of products in market that are
both branded and its own products with the motive to satisfy needs and wants of customers
from different-different economic backgrounds of products in market.
Competitors: The competitors are those people or other organisations that are present in
market who are selling the same products and services in market and giving stiff competition
to each other. Some of the competitors of Tesco are Morrisons, Sainsbury, ASDA and many
others.
4.2 A competitor analysis including the market segments
STP
STP is a model used for competitor’s analysis from market by a business
organisation. It is important to target right customers by serving them in an effective manner
(Prashar, 2022). It is observed that STP model will be helpful for Tesco in knowing about its
target customers.
Segmentation: There is basis of segmentation or segments that are available for
doing partition in market. It is important to know the appropriate segments in market for the
business organisation. These segments are classified as geographical, psychographic,
demographical as well as behavioural.
Targeting: The company, Tesco targets its urban and rural region of market. The
gender of middle class as well as upper class families are targeted by Tesco for its products
in market.
Positioning: Tesco has been targeted as high class brand that is generally selling all
its products and services in market that are being required by the target audience in market.
4.3 Sub-segments
There are many products that are being provided by Tesco to its customers in the market.
There are many sub segments that it can divide its products that it is selling in market. It
sells various products such as fresh food and drinks, bakery products like cakes, biscuits
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and others, frozen food, beauty and healthy work as such medicines and all, baby products
for small kids to infants, clothing for men, women and kids, household appliances in every
context, home as well as entertainment products, electronic items and many other products
and services.
4.4 Articulation of the new product value-proposition in the eyes of
the customer
Value proposition means the value or perception of the products that is holding various
benefits in eyes of customers in market. The value is measured by the customers with the
help of product’s value and the price that is being paid by the customer (Sutherland, 2021). It
is of great convenience for customers because it is easily available in market with online
mode that is on mobile, as well as offline mode that is on stores and other departments
malls. The other value product is offering is that it is affordable as Tesco is selling at a
reasonable price in market to its target audience.
4.5 Development of the marketing strategies applied to the
extended marketing mix
A company must use best tactics for reaching more customers. The right distribution
strategy by Tesco helps it in reaching more customers as well as attaining of goals and
objectives. It is important for Tesco to implement right promotional techniques. There is
important to have right marketing mix for reaching high performance. Tesco should use
qualitied products and that too at a low cost for maintaining customers for a longer time
period.
4.6 Setting of an overall marketing budget, including allocation of
planned spend
Marketing budget
Particulars 1st year (In
Pounds)
2nd year (In
Pounds)
3rd year (In
Pounds)
4th year (In
Pounds)
Investment 10000 10000 6000 5000
Initial money 10000 5000 5000 5000
Total 20000 15000 11000 10000
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Marketing
outlay
15000 1000 3000 5000
Sales
publicity
2000 2000 1000 1000
Direct selling 4000 3000 1000 1000
Promotion 4000 1000 5000 2000
Total 25000 7000 10000 9000
4.7 Tactical actions
The possible actions that are taken by Tesco are as follows:
 For product it can use by sustaining products of quality by Tesco that will enhance
profitability.
 By providing products at low cost for attracting more target audience.
 The loyalty of customers by providing products and services will be enhanced at right
time.
 The company need to use latest technology like digital marketing for reaching more
customers.
 They need to use latest technology like digital marketing for reaching more
customers.
 The company should work on using the process for greater reaching to the
customers.
 The regular and continuous training will result to enhance employee’s skills. This will
lead to building of customer relationship.
 Physical evidence is important for enhancing Tesco’s reputation in market.
4.8 Identifying appropriate control and monitoring measures to
ensure achievement of objectives including metrics to measure
success such as Return on Marketing Investment (ROMI) and
Customer Lifetime Value (CLV)
It is necessary for Tesco to control the performance as that will lead to increased profits and
sales in market. This can be done by the company by using KPI and benchmarking in its
operations. It will lead to knowing about various deviations for attaining their goals and
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objectives effectively for Tesco (Touri, 2020). This will result in increasing the profits and
enhancing the sales with longer customer retention of customers. The KPI is key
performance indicator that helps the company to know about that their decisions are worthy,
smart and making changes in market trends or not with their projects. These KPIs can be
measured with the help of various indicators such as increase in revenues, profits margin,
satisfaction of customers and many others.
5.0 A comprehensive media plan that supports the planned
marketing campaign
5.1 A media budget
Particulars Amount (In Pounds
Equipment 160000
Advertising 40000
Promotional tools 10000
Media house 10000
Total 2, 20,000
5.2 Recommendations and rationale for selected and integrated
multi-media activities within the set budget that meet the marketing
objectives
The recommendations for multimedia activities within set budget are as follows in context to
Tesco:
 The advertisements and promotion needs to be on a greater scale for reaching a
large market for target audience.
 The company needs to make sure that there is easy availability of its products to its
customers in the market with the help of online and offline mode of reaching to its
customers.
 The company should be using proper channel of distributing for its products to reach
with its products on proper time and that too in a good state in market in an effective
and efficient manner.
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 The budget that is used by Tesco should be made in an effective way for gaining
proper costing advantages for it.
 Tesco needs to make sure that it maintains and gains competitive advantages from
market by setting a great competition for its competitors that are present in the
market.
5.3 Appropriate digital, offline and social media channels for
communication
With the main motive to provide a best plan for a business organisation, there is need to take
care of various marketing channels that are used by company for reaching more customers.
It is observed that Tesco should use advertisement banners as offline marketing tool
(Wachtler, 2020). For online advertisement, Instagram and Facebook are used as social
media channels. It is important for the company to use appropriate and best suited channels
for attaining success in market. This will result the company to reach more customers from
the market.
5.6 Full justification for a multi-media plan based on quantitative
and qualitative criteria
The multi-media plan needs to be checked with the help of both qualitative and quantitative
criteria. It is important to check along with proper evaluation of the performance of the
company. Tesco checks that conversion rate, engagement, reach as its various quantitate
measures. Tesco also takes regular and continuous feedbacks from its target audience. The
feedback that is received can be negative and positive both that will help Tesco in checking
its qualitative criteria.
References
El-Gindy, R.M.F. and El-Mehy, E.Y.M., 2020. A Proposed Design plan for Clothes and their
Accessories as an Advertising Media. International Design Journal, 10(3), pp.359-375.
Fredman, S., 2022. Inching Forward: Preliminary Victory for Equal Value at Tesco and
Asda. Industrial Law Journal, 51(1), pp.166-173.
Grewal, D., 2018. Retail marketing management: The 5 Es of retailing. Sage.
López Choque, M.M., 2021. DISEÑO DE PLAN SOCIAL MEDIA E IMPLEMENTACIÓN DE
ESTRATEGIAS PARA HACER CONOCER LOS PRODUCTOS FARGA EN EL MERCADO
COCHABAMBINO.
Prashar, A., 2022. Supply chain sustainability drivers for fast-moving consumer goods
(FMCG) sector: an Indian perspective. International Journal of Productivity and Performance
Management, (ahead-of-print).
Sutherland, K.E., 2021. Social media monitoring, measurement, analysis and big data.
In Strategic Social Media Management (pp. 133-172). Palgrave Macmillan, Singapore.
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Touri, M., 2020. Producer-Consumer Communication Through Digital Media: Empowering
the Consumer. In Sustainable Development and Communication in Global Food
Networks (pp. 179-215). Palgrave Macmillan, Cham.
Wachtler, V.M., 2020. From information transaction towards interaction: social media for
efficient services in CRM. In Data-Centric Business and Applications (pp. 371-407).
Springer, Cham.
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