Marketing Fundamentals Analysis and Evaluation - Tesco Plc Report

This report provides a comprehensive analysis of marketing fundamentals, focusing on the case study of Tesco Plc. It delves into the processes and stages of marketing, highlighting the role of the marketing mix (7Ps) in influencing customer purchasing decisions. The report explores the importance of marketing in creating customer value, examining factors like quality, branding, and pricing. It also discusses stakeholder engagement and its impact on marketing activities. Furthermore, the report includes an analysis of external factors using the PESTLE framework and internal factors using SWOT analysis. The report emphasizes the significance of market segmentation, resource allocation, and the creation of a clear marketing vision. Finally, it reflects on tactical communication tools used to generate awareness and concludes with a summary of the key findings and their implications for Tesco's marketing strategies.

Marketing Fundamentals Analysis and
Evaluation.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1A.........................................................................................................................................2
Processes and stages of marketing including the role of the marketing mix...............................2
The role of marketing in creating value for customers................................................................4
Stakeholder engagement and their impact on the marketing activities of an organization.........6
TASK 1B.........................................................................................................................................7
Conclusion and reflection of the tactical communication tools to generate awareness..............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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·INTRODUCTION
Marketing refers an important process and action that helps organization in promoting
and selling their products by effective market research (Kerin and Hartley, 2015). This present
essay is based on Tesco Plc that is a British multinational grocery. Headquarter of this company
is in Welwyn Garden city. This essay is going to show about stages of marketing that is being
followed in proper manner for accomplishing goals. It will also show about importance of
marketing mix and all 7P's which helps customers in making purchasing decisions. Marketing
functions do not only have positive impacts but also have some negative impacts if the company
do not follow them in an effective order. Further this essay will show about stakeholder matrix
on which basis the company makes its strategies and perform its marketing functions.
·TASK 1A
·Processes and stages of marketing including the role of the marketing mix
According to (Kotler and et.al., 2015) marketing can be defined as a process and action
of promoting brands and products of an organization by doing market research and advertising.
It is an important function for any type of organization because it helps the company to develop
demands and sales for their products and services and fulfilling customers' needs.
As per the view of (Martynenko, Lysytsia and Prytychenko, 2018) it is stated that
marketing processes involves 5 steps which plays an important role for completing marking
functions successfully. It includes setting a clear vision, analysing internal factors, target
audience, analysis of required resources and take actionable metrics. They said that developing
vision before marketing strategy is vital to marketing success and by developing a clear vision,
Tesco and other organization can attract the right strategy. 1st stage is setting a clear vision and
then target audience is an important process of marketing. With the help of clear vision the
company can propel their marketing and on that basis it performs its further functions. After
setting out clear vision it is important for the company to analyse all internal factors with the
help of SWOT analysis. This analyses of internal factors support an organization to take
competitive advantages.

Pestle is the analyses and framework that helps in identifying the different external
factors and their impact on the TESCO. It is analysed and monitored to have a profound impact
on the performance of the organisation. Furthermore, the term PESTLE stands for political,
economic, social, technological, legal and environmental factors. The following are the impacts
of this discussed below:
·Political factors: The political factors are concerned with the intervention of the governmental
factors where it includes rules and regulation set by the government of the country, subsidies,
taxation, terrorism, etc. If the tax prices minimises then this will have impact the TESCO
positively, because with this the company will be able to increase its sales and also export
becomes relatively cheaper which will enhance the growth opportunities for the company.
·Economic factors: The economic factor relates to the description of financial stability and
level of profitability which the company is earning. It includes factors like inflation, deflation,
recession, etc. So, during the period inflation when the rate of inflation will be high, then this
will have negative impact on operations and functioning of TESCO because prices of all the
products will went up and customers will focus on spending their disposable income on useful
products only. Furthermore, this will have adverse impact on the organisation.
·Social factors: The social factor relates to the changes in tastes and preferences of the
customers. It involves factors like social belief, demographics, age, gender, religion, etc. This
will have positive impact on TESCO because of the changes in needs and demands of the
customers, the company will be focussing towards innovation on regular basis that will
ultimately help them in competing.
·Technological factors: The technological factor is concerned with advancement in innovation
and research and development department. This will have favourable impact on TESCO because
with this the company will be able to invest in research and development department and new
and innovative products and services will be produced.
·Environmental factors: Such factors are gaining most crucial attention in the present business
world. It involves factors like use of renewable sources of energy, work on minimising carbon
footprints, etc. This will again have favourable impact on TESCO as they will work on installing
solar plants in their premises in order to control the electricity, furthermore, they will adopt the
paper packaging rather than plastic bags, etc.

·Legal factors: The legal factor is concerned with different legislation relating to the
employment, customers, etc. This will have favourable impact on TESCO as by adopting the
different employment laws, the workforce will remain motivated as they will experience the
protection of their rights and interest.
Further the company need to target their potential customers. It is not possible for
Tesco Plc to focus on different needs of customers at a time, so they need to target a specific
segment. By dividing market into some segments, an organization can increase sales and
productivity. After targetting customers, the next step of marketing is to segment the market on
the basis of demographics, gender, etc. For instance, the segmentation which will done on basis
of income will going to target those people who have middle and higher income people, on the
basis of gender, it will target both men and women who are working, on basis of age, the
TESCO provides products for all age group people, from children to the adults and to the senior
citizen as well. After this analysis of all required resources like distribution channels. The
main aim of performing this stages is to deliver products to customers before deadline and
efficiently.
(Colicev, Kumar and O'Connor, 2019) argued and said that for making a marketing
function more successful there is essential for the company to follow more few processes.
Rather, then above discussed 5 stages it includes conducting a marketing audit, determining a
budget, developing an implementation schedule and creating an evaluation process. It interpreted
that marketing audit plays a significant role in the process of marketing because it makes the
company understand and review about all marketing activities that have occurred in the
company's marketing practices over the past 3 years. By making marketing budget, Tesco Plc
can outline all its expected costs for implementing marketing plan. The main importance of
following this stage is to perform all functions of marketing in effective manner on the basis of
budget.
For supporting this view (Payne, Frow and Eggert, 2017) also said that evaluation and
implementation schedule also plays important role in the process of marketing. The company
can develop its strengths and make changes in the process of marketing by marketing
implementation. In this stage, Tesco Plc requires to implement all its developed plans and

strategies for accomplishing marketing objectives. By following the last marketing control
process, it can evaluate performing results and make further changes if required.
In the context of role of marketing mix (Masabanda Guanin, 2019) stated that 7p's of
the company like product, place, pricing strategy and promotion plays a vital role in marketing
of the brand. All these elements provides a convenient framework to the company about
choosing the best marketing strategy. Products and price shows customers that what is the
company is going to sell at what prices. It can also help them to make buying decision by
comparing these marketing elements of Tesco with other retailer.
For supporting this view (Boisen and et.al., 2018) interpreted that marketing mix brings
different concepts of marketing into one and make marketing function easier. Place and
promotion of marketing mix helps customers to know about locating from where they can get
products. Place refers to the geographical location of the availability of products which Tesco
Plc sells. Promotion includes advertising, sales promotion. It includes all those activities that can
help the company in increasing their sales by introducing their products to customers.
On the other hand (Loo and Leung, 2018) said that physical evidence, people and process
also plays a vital role and without these 3p's an organization can not complete its marketing mix.
Physical evidence shows products details like delivery and packaging date which is considered
by customers while purchasing products. People involve all employees that work with products
and make them available to customers. Process in marketing mix also plays a vital role because
it shows customers about ingredients and process of making products and services.
For arguing these views, in the context of importance of marketing mix it is stated by
(Shaw, 2016) that With the help of marketing mix, the company can not consider their potential
customers' behaviour because marketing mix considers customers as passive and not capture
relationship.
l壱The role of marketing in creating value for customers
According to the (Gemser and Perks, 2015) customers value can be defined as the degree
of satisfaction of customers have towards an organization products. Marketing is the main
function that can help Tesco plc in creating, communicating and delivering value to customers.
In the context of role and importance of marketing (Lindsey Hall and et.al., 2016) stated
that it creates value for products and services as it meets target customers needs and creates

interest in the company's offering. In addition, they said that marketing function provides all
details of products and services like features, characteristics to customers. It also explains that
how that all features will benefit the customers. The ultimate aim of performing marketing
functions is to sells of products in a way that can increase satisfactions of customers needs.
For more supporting this view (Zhu and Chen, 2015) said that marketing helps customers
in understanding that why they need the products and services. For example, Tesco Plc
provides several products like clothing, furniture, financial services, internet services etc. There
are several other supermarkets and retailers who offer all these products, so customers have
numerous choices. Marketing and all its functions help customers to understanding and believe
them that they must have Tesco's products because they fit their needs. So it can be said that
marketing is an integral that can create value for customers and influence them about buying
products.
In contrast, (Fuciu and Dumitrescu, 2018) said that there are several disadvantages of
marketing and it is not the only one who can create value for customers because there is a lack of
attention in marketing. For example, middlemen and marketing agency work with several
organizations at 1 time, and they have several clients. Due to having lots of clients, marketing
agency often give less attention to each customer by which the company may have to suffer.
After influencing customers about company's products, marketer do not respond to phones, E-
mails and their queries which can decrease customers experience.
(Dale and Plunkett, 2017) discussed some drivers and elements which plays a vital role
in creating customers value in the context of marketing. It includes quality, branding, products
functions and points of differentiation. The main important factor which is being considered by
customers while making buying decision is quality of products. In the process of marketing, the
company focuses on introducing its products' features and quality to customers. Customers do
not consider only prices but also focuses on non-price terms like efforts, time, convenience,
energy etc.
(Aschemann-Witzel and Zielke, 2017) argued and said that pricing of products and
adapting the right price plays important role rather than quality of products. Customers make
buying decision on the basis of prices of company's products and services. So it is important for
the company to focus on pricing strategy rather than quality in the process of marketing. So it

can also be said that the most important factor in all elements of marketing process is price
which can create value for customers.
As per the views of (Davcik and Sharma, 2016) Other roles and importance of marketing
is it manages customers expectations and increase company's reputation. The main reason of
company's success is its brand image and reputation. Marketing helps them in accomplishing
their goals because its all functions are customer centric which satisfy them, Hence it can
increase Tesco Plc reputation. It can also help in taking competitive advantages. Marketing
helps the company to maintain balance of its customers' expectations and competitors offerings
by monitoring the market closely. So it can be said that market research function of marketing
can help the company in taking competitive advantages.
l壱Stakeholder engagement and their impact on the marketing activities of an organization
A stakeholder matrix refers an effective tool that is being used to analyse a project
stakeholder in order to determine their actions which can impacts on marketing activities.
Stakeholder engagement helps the company in identifying and developing marketing strategies.
Different types of stakeholders have different impacts on the marketing activities of Tesco Plc.
With the help of stakeholder engagement assessment matrix, the company can analyse the
direction of stakeholder engagement and their impact (Bourne, 2016).
According to this matrix there are 5 categories such as unaware, resistant, neutral,
supportive and leading. All stakeholders of Tesco Plc like government, employees, customers
are being classified into their current and desired status. This status helps the company in
knowing their impacts on marketing activities. Level of engagement and impacts of stakeholders
are being described as below:
Unaware: It includes all those stakeholders of Tesco Plc who are not aware about
marketing activities and project of the company. These stakeholders can decrease the sales of the
company so it is important for Tesco to focus on these stakeholders the most.
Resistant: It includes all those stakeholders who are aware about marketing functions
and their impacts, but they resist changes. It can also impact on the company to the company less
than unaware stakeholders.
Neutral: It involves all those stakeholders of Tesco Plc like customers who are aware of
marketing project and their impacts but neither support nor resistant to company. These type of

stakeholders do not impact marketing activities in a negative manner, so there is no need to
focus and develop marketing strategies for these type of stakeholders.
Supportive: These type of stakeholders are aware of project of the company and also
support them about changes. These type of stakeholders have positive impacts on marketing
activities. By more focusing on these type of stakeholders, Tesco Plc can remain them loyal
within an organization for the long run.
Leading: It includes all those stakeholders who are aware about company's project and
actively participate in making changes. It may include business partners and shareholders of
Tesco. So it is important for the company to focus on providing more developed services for
being them loyal and stay within an organization for the long run.
So it can be said that according to the stakeholder engagement level, the company can
make changes and develop their marketing strategies for increasing sales and accomplishing
goals (Herremans, Nazari and Mahmoudian, 2016). There is a requirement for the company to
more focus on unaware and resistant types of stakeholders because they can impact negatively
on marketing activities.
·TASK 1B
l壱Conclusion and reflection of the tactical communication tools to generate awareness
It can be said that tactical communication tools plays an important role in generating
awareness about marketing. Marketing functions can be successfully done only when marketer
communicate their products amongst segments of people in which the company can maximize its
profit. Communication tools includes E-mail, telephones, computers, video, search engine
optimization etc. I can say that all these communication tools help the company in building
relationship with its customers and making them aware about their products and services
(Camilleri, 2018). There are some importance of using tactical communication tools for
generating awareness in the context of marketing. It can also be stated that tactical
communication tool is being used when the company wants to plan and manage a rapidly
changing communication network in a high stress environment.

In the context of marketing, there are several tools of communicating with customers
which can help the company in generating awareness such as:
Social media: This type of marketing is being done via some social media platforms like
Facebook, Instagram etc. I can say that it is the most trending way and tool of communicating
with people in the context of marketing. By providing video ads, viral content companies can
increase and communicate effectively with their target customers.
E-mail: It is also called an effective marketing tactics and communication tool. I believe
that this tool can help Tesco Plc in building brand awareness as well as converting E-mail
recipients into potential customers. E-mail goes directly to an individual's inbox, so there is very
fewer chances for a message to get missed as compared to other communication tools. If we
compare E-mail to other communication and social media tools then we can say that there (other
platforms) are more chances of ignoring and getting missed out of posts and marketing messages
by customers.
Search engine optimization: In the context of search engine optimization, it can be said
that a marketer can help increase SEO by publishing quality content and by using strong
keywords that can specify their brand and can make sense for web searches.
So it can be said that all communication tools can help any type of company in increasing
brand awareness amongst targeted audience. Most of the people spend their lots of time on
internet and all these are the best tools for communicating and interacting with people in order to
influence them and making them aware about products.
·CONCLUSION
From the above study it has been summarized that marketing functions played a vital role
for accomplishing pre determined goals and increase sales. This essay has also shown that
marketing function do not only have positive impacts but also can have negative impacts on the
productivity and image of the company. It all depends on the way of following stages of
marketing. All stages of marketing like targetting customers, setting a clear vision, making
budget helped organization to increase their sales and taking competitive advantages.

Stakeholder engagement also impacted on the marketing activities because all activities and
functions of marketing are played for stakeholder and are customer oriented.
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·REFERENCES
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Camilleri, M.A., 2018. Integrated marketing communications. In Travel marketing, tourism
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Zhu, Y.Q. and Chen, H.G., 2015. Social media and human need satisfaction: Implications for
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