Unit-3 Introduction to Marketing : Assignment

Unit-3 Introduction to
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Describe how marketing technique used to market products................................................1
P2 Presenting limitation and constraints of marketing...............................................................2
TASK 2............................................................................................................................................3
P3 Explaining how a firm uses marketing research....................................................................3
P4 How an organization uses data and information through market research............................4
TASK 3 ...........................................................................................................................................4
P5 Describing how and why groups of customers are target......................................................4
TASK 4............................................................................................................................................6
P6 Developing a coherent marketing mix for new product........................................................6
CONCLUSION................................................................................................................................7
References........................................................................................................................................8

INTRODUCTION
Marketing is a business process that creates relationship and satisfy the needs of
customers. Therefore, the chosen firm for this report is TESCO which is public retail company
who provides different products and another is Arcadia Group Ltd, which is Private company
and multinational retailing firm. Study will describe the marketing technique and also describe
the limitation and constraints of marketing as well. Further, it also present how a firm uses
marketing research and discuss how and why group of customers are target. Then it describe a
marketing mix for a new product as well.
TASK 1
P1 Describe how marketing technique used to market products
Both company uses specific marketing technique, such as growth strategies, survival
strategies which are as mention below:
Ansoff Matrix: It is a strategic planning tool that provides a strategies for a future
growth. These are as follows:
 Market Penetration: This strategy helps a firm to grow the existing products in current
market. This strategy helps to increase market share in present market scenario.
Therefore, this is consider one of the least risky strategy which a firm can used.
 Market development: Under this strategy, the firm tries to expand new market by
offering existing products. This growth strategy is used by TESCO because the firm has
a unique product technology, which can be an advantage in a new market. Therefore,
TESCO use its potential products to establish a new market in other country that is why it
is operated at international level (Palmatier and Martin, 2019).
 Product Development: In this, a company tries to create a new product in its existing
market in order to achieve growth. In the same way, Arcadia group uses this strategy
such that recently it launches kid-wear in its UK store. Therefore, it involves extending a
product range which is available for a firm's existing market (Fyall and et.al., 2019).
 Diversification: It is one of the most risky strategy because an organization tries to grow
its market share by presenting new product in new market. It requires high investment
and there nay be high chances of return as well, but, generally it is not used by
organizations.
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Survival strategy: In the modern era, marketing is consider one of the important role and
with the tough economy, new and emerging competitors, company needs to implement the
survival strategy that is mainly designed to survive and thrive. Therefore, Explore alternative
markets is the survival strategy that is used by TESCO because as it used market development
strategy, thus new market will includes new customer segments which helps a business to
generate more revenue and establish good market share as well (Survival marketing strategies,
2019).
On the other side, Revaluate Positioning is another survival strategy that is used by
Arcadia Group as due to competitive landscape changes on a regular basis, there is a need to
make sure that firm is positioned competitively.
Branding and Relationship marketing:This is another important marketing technique in
which the firm can make good relationship with customers. For that reason, both firm uses
Social media marketing as a marketing technique in which the firm sustain its brand image in
market. In this, company post new product detail, any offers and changes in the price of existing
product in order to let customer know about a product. This help to maintain relationship with
the customer (Jahantigh and Masoumi, 2019).
P2 Presenting limitation and constraints of marketing
The limitation and constraints generally restrict a firm to achieve the target and this is as
follows:
Legal Constraint:
 Sale of Goods Act, 1979: The law state that whatever the products are sell by the firm
should have proper description, therefore, this apply to selling goods with good quality.
This is applied to both Tesco and Arcadia such that they promote the products through
promotional tool instead of describing it (Gwiriri and et.al., 2019).
 Consumer Protection Act, 1974&2006: This law make sure that a business should act
fairly with regards to their customers and that is why it is applied by both firms because
they sell the product to customers. So that It will allow the customers to be protected and
secure without from unfair means.
 Consumer Protection from Unfair Trading regulation, 2008: This regulation make
sure that businessman, should act honestly and fairly towards their customers (Wymer
and Polonsky, 2015).
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Voluntary Constraint:
 Codes of Advertising Practice: The ASA is mainly not a part of legal framework but it
promote or maintain the code of advertising. This also states the rules which a firm must
follow such that comply with all legal framework, protect customers from misleading
claims and do not breach any law.
 Acceptable language:This creates a direct impact upon the organization such that as firm
sell the TV then they have to make sure that they use acceptable language to ensure they
don't offend any customers (Boddy, 2016). Apart from this, the advertising standards
authority also identify the members of public whose main concern is to unacceptable
language which includes strong language, mocking religious and people belief.
TASK 2
P3 Explaining how a firm uses marketing research
Market research is used by TESCO in order to assist a business to improve its goods and
service. This also increases customers choice by including different promotions to attract
customers. Therefore, market research is of two types such as:
Qualitative and Quantitative Research: TESCO uses quantitative research such as
interview and surveys in order to determine taste of customers while quantitative research help to
improve branding which can be look over previous interview.
Primary research: This research will help TESCO to get exact information because it is
a first hand information and firm chooses hand out questionnaire to determine what customer
think about TESCO's product. Or it may also uses interview which is based upon person
experience, though it is a time consuming process (Pike, 2016). Therefore, questionnaire is
beneficial as it is quick way to collect information or trustworthy method as well. By using this,
company will easily manage the products by offering good promotional offers to attract
customers.
Secondary research: This research is also used by TESCO in order to find out its rivals.
Therefore, it uses old reports, newspaper, Internet to identify their competitor's performance.
This research also beneficial for business as quoted firm can find out about competitor's pricing
style and they may closer to lower their prices so that it will help to increase revenue (Grier,
Thomas and Johnson, 2019).
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P4 How an organization uses data and information through market research
The market research will help to make better marketing planning such that TESCO has a
wide range of products and services which appeal to their target audience. For example, during
market research through questionnaire, in which a question asked that, what they like more about
TESCO store. Therefore, majority of the respondents state that they like quality of a product. On
the other side, through a market research it has been analysed that TESCO target mostly old age
group people and as a result, it miss out on the lot of sales from other age group people (Lee and
et.al., 2019). Therefore, it will be more beneficial for the firm if it target the people whose age
group is around 30.
In addition to this, it has been further analysed that company's promotional activity is
good such that it also uses innovative products in its store which means that it put extra efforts in
order to expand its target market. Even through primary research it is evaluated that most of the
managers are satisfy with the company's promotional tool. On the other side, through a
secondary market research such as newspaper and Internet, TESCO analyses that it faces tough
competition, but it has a strategy that also helps to overcome this challenges. Such that currently
company uses cost leadership style in which it offer low rates products to their customer in order
to enhance its sales and maintain brand image as well.
TASK 3
P5 Describing how and why groups of customers are target
Segmentation refers to identify the common needs and buying behaviour in a market and
it also allow the business to develop plan that helps them to produce satisfactory products which
may fit the needs of a customers in more effective way. Therefore, the selected target products of
TESCO are Ethnic wear, toys and organic food.
Consumer market segmentation: It is the factor that varies from different group within
market and it is further divided into four segmentation such as:
 Geographic Segmentation: It is based upon some regional variables such as region,
climate and population density. For example, lifestyle products which is sell by TESCO
such as it offer clothes to all age of people includes man, women and kids (Jones and
et.al., 2019).
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 Demographic segmentation: It has different variable such as age, occupation and
education which are commonly used for market segmentation.
 Psycho-graphic Segmentation: This are the people which are divided upon attitude,
values and lifestyle.
 Behavioural Segmentation: it is based upon an usage rate and pattern, brand loyalty and
benefits as well.
There are some example which are chosen for a business to consumer marketing
Product Customer profile Methods of
segmentation
Why this method is used
Ethnic wear Young adults, Women Psycho-graphic
Segmentation
Not all the age group people are
used to wear this pattern.
Toys Young children Demographic
Segmentation
This is specifically used for young
children and though effective
advertising and packaging,
company can attract wide range of
customers (Dost and et.al., 2019).
Organic food All kind of group
people.
Geographic
segmentation
This food is mainly used by health
conscious people and old age group
people and by offering the products
in particular region will be more
helpful for the people to attract
towards it.
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TASK 4
P6 Developing a coherent marketing mix for new product
The new product is energy soft drink which is offered by the TESCO and the coherent
marketing mix is as mention below:
Product: The new product which is offered by TESCO is energy soft drink so that it will
help to increase the market share up. In this, the product contain different flavoured energy drink
which contain low sugar that did not affect the diabetic people. This product is sugar free so that
it can be used by every age people.
Price: Price is the significant key aspect, therefore, TESCO uses skimming pricing
strategy for the new product so that it will help to maximize the profit. It has been analysed that
using this strategy, the company can reach with large target group and if the rival company also
uses the same, at that time, TESCO needs to be adopt cost leadership style in which it offer the
new product at lower rates as compared to its competitors (Fitriah and et.al., 2019).
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Illustration 1: Coherent marketing mix
(Source: 4 P's of marketing mix, 2018)

Place: It is how a business gets its products to customers who are situated in different
location. Therefore, initially, TESCO sold its energy soft drink at its own stores and even the
product is also sold online as well through its headquarters. Apart from this, company also select
selective distribution for a new product.
Promotion: It is the activity that help to reach a wide range of people and for a new
product, company uses modern promotional tool that helps to draw attention of many customers
(Palmatier and Martin, 2019). Apart from this, company uses social media for promoting the
energy soft products and initially it uses some discount offers as well to promote the products
and increases the sales too.
CONCLUSION
By summing up above report it has been concluded that marketing plays an effective role
in every organization. Such that TESCO uses market development and Arcadia Group uses
product development under Ansiff growth strategies. Further both company uses social media as
a marketing tool that helps to sustain its brand image. Report also concluded that TESCO uses
primary and secondary market research that contribute to the development of marketing plans. In
addition to this, study also concluded the needs of selecting or targeting customers for three
different products and through coherent marketing mix, TESCO defined a group of a potential
customers.
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References
Books and Journals
Boddy, C. R., 2016. Sample size for qualitative research. Qualitative Market Research: An
International Journal.19(4). pp.426-432.
Dost, F. and et.al., 2019. Seeding as Part of the Marketing Mix: Word-of-Mouth Program
Interactions for Fast-Moving Consumer Goods. Journal of Marketing, 83(2), pp.62-81.
Fitriah, A. W. and et.al., 2019. The Effects of Marketing Mix on Small Fish Farming Business
Performance. Revista Publicando. 6(19). pp.1-16.
Fyall, A. and et.al., 2019. Marketing for Tourism and Hospitality (No. Halshs-01957604).
Grier, S. A., Thomas, K. D. and Johnson, G. D., 2019. Re-imagining the marketplace:
Addressing race in academic marketing research. Consumption Markets & Culture.22(1).
pp.91-100.
Gwiriri, L. C. and et.al., 2019. Constraints to the sustainability of a ‘systematised’approach to
livestock marketing amongst smallholder cattle producers in South Africa. International
Journal of Agricultural Sustainability, pp.1-16.
Jahantigh, H. and Masoumi, M., 2019. Identifying Marketing Limitations to Rural Organic
Products (Case Study: Villages around Lake Hamoon, Sistan). The Journal of Spatial
Planning.22(4). pp.83-112.
Jones, S. and et.al., 2019. Audience segmentation to improve targeting of conservation
interventions for hunters. Conservation Biology.
Lee, Y. O. and et.al., 2019. Peer crowd segmentation for targeting public education campaigns:
Hip hop youth and tobacco use. Preventive Medicine Reports, p.100843.
Palmatier, R. W. and Martin, K. D., 2019. Big Data’s Marketing Applications and Customer
Privacy. In The Intelligent Marketer’s Guide to Data Privacy (pp. 73-92). Palgrave
Macmillan, Cham.
Pike, S. D., 2016. Destination marketing organizations–research opportunities in an era of
uncertainty. In Book of Abstracts-6th International Conference on Tourism. International
Association for Tourism Policy (IATOUR).
Wymer, W. and Polonsky, M. J., 2015. The limitations and potentialities of green
marketing. Journal of Nonprofit & Public Sector Marketing.27(3). pp.239-262.
Online
Survival marketing strategies. 2019. [Online]. Available through: <https://bizfluent.com/info-
8302557-survival-marketing-strategy.html>.
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