A Report on Contemporary Issues in Marketing Management for Tesco

This report provides a comprehensive analysis of contemporary issues in marketing management, focusing on the British multinational retail company Tesco. It delves into the concept of knowledge management and its role in relationship marketing, exploring how ICT supports customer relationship management and the benefits it provides. The report also examines stakeholder analysis for voluntary and public sector organizations, compares marketing methods, and addresses key issues in marketing for virtual organizations. Furthermore, it discusses the use of the extended marketing mix in Tesco, value enhancement through product/service mix, and the difficulties in marketing services, along with the role of IT in service marketing management. Ethical issues and their impact on marketing planning are also assessed, including the concept of CSR and the influence of pressure groups and media on ethical and social marketing policies. The report concludes with recommendations for improving customer relationship management and highlights the importance of ethical considerations in marketing strategies.

CONTEMPORARY ISSUES IN
MARKETING MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Concept of knowledge management and its role in relationship marketing..........................3
1.2 Ways how ICT supports the customer relationship management process in Tesco..............4
1.3 Benefits of customer relationship management in Tesco......................................................4
1.4 Recommendations for the improvement in customer relationship management for Tesco. .4
2.1 Stakeholders analysis for voluntary and public sector organization......................................5
2.2 The nature of relationship with customers.............................................................................7
2.3 Comparing the marketing methods........................................................................................8
2.4 Key issues involved in marketing at virtual organization......................................................9
TASK 3............................................................................................................................................9
3.1 Use of extended marketing mix in Tesco..............................................................................9
3.2 Enhancing value through product/service mix....................................................................10
3.3 Difficulties in marketing of services....................................................................................11
3.4 Role of IT in Service marketing management.....................................................................12
TASK 4..........................................................................................................................................13
4.1 Impact of ethical issues on the marketing planning.............................................................13
4.2 The concept of CSR.............................................................................................................14
4.3 Role of pressure groups in influencing the ethical social marketing policies of Tesco.......14
4.4 Role played by published or broadcast media in influencing the ethical and social
marketing policies......................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing is the management process that is responsible for identifying and satisfying the
customers’ needs and wants (Pepall, Richards and Norman, 2005). In addition to this
contemporary issues are the term that describes various issues based on national and
international scale in terms of terrorism, stock market fluctuation and so on. In this Tesco a retail
firm has been taken into consideration. Tesco is the British multinational retail company
headquarter in Welwyn garden City, Hertfordshire. In this report importance of relationship
marketing in context of contemporary business unit is discussed. In addition to this role and
marketing in context of non-traditional organization are mentioned. In this report importance of
marketing mix in different service sectors is also interpreted. At last in this report role played by
different pressure group in influencing ethical and social marketing policies for Tesco is
depicted.
TASK 1
1.1 Concept of knowledge management and its role in relationship marketing
Knowledge management is the term which comprises of wide ranges of practices that
take place within an organization in order to create, identify and represent insights and
experiences. In other words, it can be said as the organized management of intellectual capital
and knowledge of the organization. By using the concept of knowledge management, every
company is able to identify the requirements of its employees. Besides this, knowledge
management assists the firm to capture and identify the entire information related to the assets of
company (Boone and Kurtz, 2013). The basic idea behind this knowledge management is that it
aids the organization to identify the needs of employees with an aim to satisfy them. This in turn
will help the firm to generate more profits. It is because if employees are satisfied then they
would with more efforts and dedication. Large numbers of organizations is considering the
concept of knowledge management in order to convert tacit knowledge into explicit knowledge.
Turnover of tacit knowledge into explicit knowledge is one of the major functions of knowledge
management.
Role of knowledge management in relation to marketing
Knowledge management in relation to marketing will aid company to know about the
changing trends, fashion, tastes and living standards of customers (Moyer and et.al., 2011). In

addition to this, knowledge management is an important role in identifying the changing
perception of customers about company and its offered products. Knowledge management also
helps company to develop various strategies by identifying different strategies that are developed
by its competitors.
1.2 Ways in which ICT supports the customer relationship management process in Tesco
There is variety of ways through which ICT supports the customer relationship
management process in Tesco. Tesco offers wide range of ICT tools to the customers through
which they can easily purchase the products that are provided by them. Use of this tool attracts
more and more customers towards the products of the company. In addition to this Tesco also
offers loyalty cards to their daily customers so that customers can avail various benefits on the
purchase of the products. Tesco also provide online services to its customers in order to purchase
the variety of products that are sold by them.
Concept of ICT also proves various benefits to the Tesco also. By using this technology
company is able to access the customers. This in turn will aid the company to identify and
produce the products according to the wants and requirements of the customer (Levi, 2007). Use
of ICT also assist the company to monitor and control the working of various projects and
marketing plans that are taking place within and outside the organization.
1.3 Benefits of customer relationship management in Tesco
Customer relationship management provides various benefits to Tesco. Some of them are
as follows. Customer relationship will aid the company to maximise its customer’s equity against
the products offered by the company. In addition to this Tesco will be able to create lifetime
value in mind of the customer in context of the products offered by them.
By creating a healthy customer Relationship Company will be able to recognise its brand
image and its reference groups. Along with this all, Tesco will be able create trust and
commitment in mind of the stakeholders about the company. A healthy customer relationship
with the customer will assist the company to easily cope up with the changing competitive
environment (Faiers, Cook and Neame, 2007). At last, it can be said that bouncing customer
relationship management will help the Tesco to identify and understand the behaviour of the
customer in relation to the corporate identity in order to generate best products according to
customer demands.

1.4 Recommendations for the improvement in customer relationship management for Tesco
Tesco is the large multinational firm that is operating its business in a healthy manner.
But there are still many areas where company needs to improve. Therefore, some of the
recommendations for company which they should undertake in order to improve its customer
relationship management are as follows:-
 Tesco should provide responses to the queries that are raised by the customers (Grant,
2010). These queries may arise when they are purchasing the products from Tesco’s
direct catalogue or for Tesco’s stores by using the latest technology.
 Tesco should also start using various social networking sites in order to provide better
services to the customers.
 Tesco should introduce its products as a range of angles in order to attract customers and
to let them decide what they should purchase.
 Tesco should make efforts to take continuous feedback from the customers by making
direct contact with the customers. This in turn will help company to examine the area
where they are lacking. In addition to this, company will also be able to know about the
requirements of customers and then, it needs produce the products accordingly.
 Tesco should also start using the latest technology in order to produce high quality
products at low cost of production. Use of latest technology will also help company to
easily expand its online business.
 Tesco should start introducing new features in its products in order to attract the
customers against its competitor products.
TASK 2
2.1 Stakeholders analysis for voluntary and public sector organization
Stakeholders are the one who directly or indirectly affects and benefits the function of the
organization. Some stakeholders are in the internal environment of the organization and some are
present in external environment. Stakeholder analysis is the process of gathering and analysing
qualitative information to order to select the person whose interest should be taken into
consideration at the time of developing and implementing a program or a policy (Scott, 2006).
Voluntary sector organization includes:-

 Voluntary workers: - Voluntary works are those who work for the betterment of the
society. These workers main aim to provide better services to the society, profit
maximization is not there main objective. These stakeholders help the voluntary sector to
move towards the growth rate.
Stakeholders of public sector are customers, employees, government and many more.
1. Customers want that an organization should provide them the products according to their
desires and wants. In addition to this, they also want that Tesco should serve them a high
quality product at an affordable rate.
2. Government wants that every organization should work for the welfare of society.
Organization should increase its business size which in turn will reduce the rate of
unemployment.
3. Employees desire that company should provide them fair salary. In addition to this, they
should also provide them remuneration and bonus at regular intervals.
BBC is the public limited company headquartered in London. This is one of the largest
and oldest broadcaster organizations operating its business in with around 16,672 staff working
in the public sector. This organization helps the government to create awareness in the mind of
the customers about smoking and use of condom.
National Health Service is the public limited company in England. It is one of the oldest
and the largest healthcare system in the world. This organization works for the betterment of
society. They provide various treatments and medicines to the persons who are ill. This
organization also creates awareness in the mind of the people about the benefits of no smoking
and use of condom at the time of sex. This organization provides free treatment to everyone in
case of emergency or to cure an infectious disease, even to the non-resident.
Some of the example for voluntary sectors and its benefits are as follows:-
No smoking: NHS and BBC help the create consciousness in the cognition of the society
members about the harmful effects of smoking. Smoking is injurious to health. These
organizations continuously make efforts to tell the people about the benefits of leaving the
smoking. Leaving smoking will improve the health of the people and will reduce the
consumption of tobacco. It is because; excessive consumption of tobacco leads to cancer. Thus,
in order to reduce the consumption the government has introduced E-Cigarettes.

Similarly, on the other hand, government is creating awareness in the mind of the
customers about use of condom at the time of sex. Of condom at the time of sex reduces the
chances of unwanted pregnancy. This in turn will reduce the death rate of the females at the time
of deliver.
 Government grants: - these are other stakeholders who work for the development of the
voluntary sectors organization. Government provides grants to the organization in terms
of money in order to achieve their desired objectives. Grants provided by the government
are not repaid back.
Marketing in voluntary sector helps company to attract customers, donors and investors
in order to force them to invest in company. Firms operating under this type of sector are
available with less capital and they want money to expand its business. Company's functioning
under voluntary sector can use various methods and techniques in order to promote the products
manufactured by them. They can use virtual marketing method, direct marketing method and
intervention marketing methods.
Public sector organization includes:-
 Private investors: - Private investors are the one who invest into the various projects
that are started by the government. This stakeholder work with an aim to generate more
income and profit.
Marketing of product in public sector helps the firm to expand its business in various
segments. Marketing of the product manufactured by public limited company help the firm to
move towards the desired goals and objectives. This in turn will help company to move towards
higher growth rate. Objective of public limited company is to work for the betterment of society
by availing them the best thing as per their requirement.
Criticism of marketing in public sector: Marketing put a bad impact in the mind of
customers when company emphasizes on fulfilling their desire of attracting customers.
Marketing is done by public company which is immoral in nature. Marketing face some issues at
the time of innovation.
2.2 The nature of relationship with customers
The nature of relationships with customers can be defined in two selected non-profit
organizations namely Human Rights Watch (HRW) and Museum of Modern Art. Here, Human

Rights Watch (HRW) is nongovernmental organization that conducts advocacy on human rights.
Almost 400 staff members are working with them and they are human right professionals
including country professionals, lawyers etc. The company is well known for its effective use of
media and publishing of impartial reporting. The company meets with government as well as
various corporations and press for changes in policy and practice that promote human right and
justice around the world. On the other hand, Museum of Modern Art is a not-for-profit company
which provides a place that fuels creativity, ignites minds, and provides inspiration. For both the
non-profit organization, it is crucial to reflect upon the ways in which they treat their customers.
This is because these ways define the relations that their customers maintain with the company.
These organizations follow the strategy of constituent relationship management (CRM). In order
to maintain healthy relationships with the customers, these not for profit organizations focus too
narrowly on the constituents that provide income. These include retail customers, donor
foundations etc. the relations with customers in Human Rights Watch (HRW) and Museum of
Modern Art are defined by personal interaction, fast response to the requests, easy access etc.
these elements are ensured by both the customers as well as the organizations. Further, there are
various other policies in Human Rights Watch (HRW) and Museum of Modern Art (These
ensure that the employees, volunteers, teachers, program managers etc. treat the customers with
respect. It can be determined that both companies need to develop effective relations with their
customers in order to enhance their loyalty. For the same, they require to provide them several
other benefits as well as recognition to the loyal customers. It boosts up their motivational level
and makes them satisfied towards company. Both, Human Rights Watch (HRW) and Museum of
Modern Art provide effective training to their workers so that they can better serve their
consumer’s needs. In this concern, they can ask for the feedbacks from their customers about
their level of satisfaction towards the work and service quality. With the help of this, companies
can enhance their service quality and provide better services to consumers as per their desires.
Moreover, friendship and social interaction are two other elements which define the nature of
relationships at Human Rights Watch (HRW) and Museum of Modern Art (Oxfam International,
2016). They usually go through social interaction with their customers through internet or
various social networking sites. It keeps them connected and provides various ways to interact
with each other.

2.3 Comparing the marketing methods
The marketing methods of organizations vary as per the nature of business. Broadly there
m are three types of organization, public, private and voluntary. The difference in marketing
methods of these enterprises is explained as follows:
Marketing methods used by Private organization: The private entities tend to focus
majorly on its marketing to enhance customer base and brand recognition (Grant, 2010).
Therefore, both direct and indirect channels of communication can be used to enhance the level
of promotion. These are the most effective ways of marketing of any product or service. Through
this, company can easily enhance its customer base by reaching to the large intended audience.
By using direct communication, they can use personal selling on the basis of which they can
personally sell their products to customers on the basis of face to face interaction. On the other
hand, indirect communication methods are related to the marketing through media sources such
as internet as well as hoardings, banners of company’s products, etc.
Thereafter, heavy expenditure is done by private firms on marketing campaign. The
intense marketing efforts help private entities in encouraging the sales by creating distinct image
of brand in the market.
Marketing methods used by Public: The moderate level of expenditure is done by public
enterprises on its marketing campaign. The major concern of public enterprises is to increase the
benefit for society in terms of qualitative and ethical products rather than maximizing
profitability. Therefore, they spend money in enhancing the quality of products and services.
Therefore, less costly marketing methods are selected by company. Public company majorly
focuses on the use of print media like newspaper, radio, etc. to target the customers and to boost
the sales. They can give different advertisements about their products in the newspapers and can
telecast it through radio as well. With the help of this, they are able to grab the attention of
customers and provide them the latest information regarding product.
Marketing methods used by Voluntary organization: Major interest of voluntary
organization is on maximizing the welfare of society. They do not spend too much on marketing
and promotional activities. Therefore, they mostly rely on social media marketing and e-
marketing which involves negligible cost (Kazmi, 2007). With the help of social media, they are
able to reach to the target audience worldwide. It also provides them several options related to
communication and for developing relations with each other. Further, many a times the

marketing of NPOs is done by other corporation in form of sponsorship etc. Main goal of
voluntary organization is to generate the awareness and to get funds for its operations from
public.
2.4 Key issues involved in marketing at virtual organization
While going through marketing process of virtual organization, there are several issues
faced by them such as majority of time people are not showing their interest towards such
voluntary firms. Consumers are not sure about their services provided by them as they usually
provide online services. Trust is the major issue which virtual organizations are not able to create
among all their customers. Inappropriate selection of media may also incorporate various other
issues that are related to the reach of customers. It might lead to decrease the sales and profit of
company as well. Further, it can be effectively determined that most of the virtual organizations
are trying to incorporating several highly as well as technological advanced marketing process
into their business operations. Through such process, they can easily market their products as
well as services and attract huge base of customers. Virtual organization i.e. Amazon.com only
exist on the web. Buy.com. They is the leading Internet superstore and low price leader as well
as sells a broad range of categories. The issues are with respect to
 Loss of control
 Need for the new managerial skill.
 Huge difficulty at the time of convincing their employees as they do not have any
physical evidence.
 Consumers are not sure with the service quality of the products as it is only visible to
them in terms of images.
TASK 3
3.1 Use of extended marketing mix in Tesco
The marketing mix can be defined as a combination of various marketing activities which
Tesco uses to best meet the needs and demands of its target market. There are mainly 4P’s of
extended marketing mix which is equally important for the successful business. These elements
are highly useful such as: Physical evidence: It is the most important type of marketing mix which determines the
environment in which company operates and sells products. Tesco has always maintained

their quality standards and deliver an excellent service to their customers. Quality
physical layout is one of the most important parts in a range of service providers such as:
Tesco always provides good ambience, facilities and attractive layouts for the shopping
(Zastrow and Kirst-Ashman, 2006). It further makes sure to provide adeqyute training to
employs so that they are prentable in front of consumers. Process: At the time of delivering customer services there are number of process
involved in making marketing more effective in an organization. Handling customer
complaints and identifying their needs and requirements make their customers loyal and
retain them as well. It further makes sure to include proper means of consumer complaint
handling. This is likely to aid in making better relationship with their customers by
providing them excellent customer support services People: Customer service lies at the heart of the management of Tesco. They are highly
responsible for delivering high quality services to their customers. Consumers are likely
to be loyal if company serves them well (Hollensen, 2015). In this regard, Tesco is
regularly organizing training sessions for their workers so that they can become more
effective and productive.
 Promotion: It is the last element of extended marketing mix through which Tesco can
easily attract huge base of customers towards their services. For the same, company is
promoting their services through internet as well as various other sources (Roberts-
Lombard, 2010).
3.2 Enhancing value through product/service mix
Product mix is all about the total range of products or services offered by company. It is
considered to be the most important part for enhancing the value for the customers as well as
organizations. A range of products or services of Tesco are involved in this process which yields
larger sales as well as revenue when marketed together. Moreover, an organization’s value can
be easily enhanced by continuously improving how they meet out the requirements of customers.
By setting appropriate product/service Mix Company can easily enhance its customer value.
They require setting the width in which they can measure that how many different types of
products Tesco offers (Ansari, Mela and Neslin, 2008). Each of their products required to be
distinct with each other in terms of providing huge benefits to their customers. Further, Tesco

can enhance its overall firm’s value by adding any latest product as well as services in their
business operations.
There are various services which are intangible in nature and all of them add a value to
product mix. As per the depth of product mix company need to add various additional services
within their business operations by the means of better satisfying the needs of customers. Product
mix is a tool to enhance the value of a customer organization by designing its marketing mix in
terms of width, depth, positioning and product characteristics. In addition to this, by setting
appropriate positioning as well as product characteristics they are able to attract more number of
customers. Sometimes, Tesco can also enhance its customer’s value by repositioning its product
mix. Majority of customers are highly centred with the three qualities i.e. quality, functionality
and style (Keller, 2009). Further, it is essential for Tesco to maintain the brand’s durability by
delivering promised benefits to their customers. It significantly strengthens the competitive
strength of brand as well as increasing service sector growth.
3.3 Difficulties in marketing of services
Customers are the key elements of every organization and providing them quality
services are becoming their major responsibility. Managing the quality of services provisions are
becoming major concern. At the time of marketing their services Tesco might has faced several
difficulties due to the changing perception of their customers. In this case, it is essential to
manage the quality of service provisions in terms of attracting huge base of customers (Ziska,
George and Frenz, 2007). Company can easily overcome with the problems on regard to the
marketing of their services by entailing appropriate service provisions. Through this, they can
enhance the satisfaction level of customers and change their perception towards the quality of
services. In this regard, it can be determine that Tesco can overcome with their existing
marketing issues with the help of measurement of customer satisfaction level.
They need to take feedbacks from their customers and provide them appropriate solution
as per their problems. With the help of satisfaction survey company can easily identify the
problem faced by customers and try to resolve their queries. It is the only source through which
company can identify the requirements of their customers (Newell, 2001). With the help of
managing the quality of service provisions Tesco can retain their customers and manage their
satisfaction level. For the same, they can provide them various solutions regarding their queries