Marketing Essentials: An Analysis of Tesco's Marketing Strategies

This report provides a comprehensive analysis of marketing essentials, using Tesco as a case study. It begins with an introduction to marketing concepts, including production, product, selling, marketing, and social marketing concepts, along with current and future market trends like digital marketing, text message advertisements, and internet video advertisements. The report then outlines the marketing process steps, including market opportunity analysis, target market selection, marketing mix development, and the management of marketing efforts. The role and responsibilities of a marketing manager within Tesco are explored, along with the influences and interrelations between the marketing department and other functional departments such as finance, sales, human resources, R&D, and operations. The report also details Tesco's marketing plan, objectives, and strategies. The report concludes by emphasizing the significance of marketing in the business world, particularly in the retail industry. The report uses various academic sources to support the arguments.

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concept of marketing and current and future market trends............................................1
1.2 Marketing process steps...................................................................................................4
1.3 Role and responsibilities of a marketing manager in Tesco.............................................7
1.4 Marketing influences and interrelates with other functional departments of the
organisation............................................................................................................................8
1.5 Marketing role in Tesco and its importance.....................................................................9
TASK 2............................................................................................................................................9
2.1 Objectives of Tesco and strategic marketing plan to achieve themselves........................9
TASK 3..........................................................................................................................................12
3.1 Marketing plan of Tesco Plc...........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing essential is the technique to analyse the internal and external environment by
identifying strength and weakness of the organisation and opportunities and threats which affect
the organisation (Berkowitz, 2016). In this report Tesco has been selected which is leading retail
brand which focus on selling their product and services at low prices as compare to its
competitors. In this report & 7 p's of marketing strategies are analysed and through
implementation of 7 P's they are able to attain their objectives.
TASK 1
1.1 Concept of marketing and current and future market trends.
Marketing concept is divided into five concepts, that are discussed below
Illustration 1: Concept of marketing
(Source: Marketing concept, 2016)
 Production: This is the oldest concept in organisation. Managers focus on this concept
because they want to achieve the highest target for sales. The does not focus on consumer
needs and want, they just concentrate on production. Company thinks that if they produce
more, they will able to sell more
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 Product: This strategy/concept focus on high quality of goods and services. They think
that consumer will favour those products which have the best quality, performance and
innovative features (Bradford, 2015). They focus on producing superior quality of
products and improving them overtime. Sometimes manager just focus on the quality of
goods and services and do not realise that what customer need and want.
 Selling concept: In this concept, the organisation just focus on selling and promoting the
products. They just focus on distribution of goods and services. When a company thinks
that they have efficient sales force who have good convincing skills at that time entity
adopt the selling strategy.
 Marketing; This concept hold achieving organisational goal by knowing the desire and
wants of the target market and delivering the desired satisfaction better than their
competitors. The focus on consumer first approach (Calabretta and Gemser, 2015). For a
company, customer values and focus are the routes for achieving profit and sales. The job
is not to find customer for your products, it is fining right product for the consumers.
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Illustration 2: Social marketing concept
(Source: Marketing concept, 2016)
 Social marketing concept: It is the strategy where a company deliver value to the
consumer in a way that it maintains the customer's or society's well being. Organisation
focusses on socially and environmentally responsible marketing that satisfy the current
needs and desire (Chen, 2016). Company keep the human welfare at the top priority and
then earn the profits by satisfying consumer wants.
Future trends of marketing
 Digital marketing: it is the form of advertisement where message is communicated to the
customer through digital platform such as search engine, social media, websites, mobile
apps and email (Dickinson, 2015). This include content, email and mobile marketing
where content is the king because it attracts the customers by the attractive keywords and
mobile or email marketing is the channels through which content is communicated.
 Text Message Advertisements: It is the great way to connect with the target customers
about promotions, deals, upcoming events and other opportunities and offers. In 2010
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Frost and Sullivan survey found that 90% of the text message are read in average 3
minutes, with compare to 22% for email and 29% for tweets and 12% for Facebook.
 Internet Video Advertisements: It is the way of online display adds that have video
included in them (Douglas and et. al., 2016). Broadcast websites such as Sky.com and
Itv.com have such advertisement on their sites. It provides the virtual interaction between
the company message and the customer.
Illustration 3: The curious case of video advertisements
1.2 Marketing process steps
Analysis of the opportunities in the market.
Selection of the target market.
Development of marketing mix.
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Management of marketing efforts
 Analysis of the opportunities in the market: The first step of marketing process is to
analyse the market in order to evaluate the opportunities, these are related to needs and
desire of the consumer. If a company focus on opportunities at the initial level and then
satisfying the target market needs will beneficial to the run of success. Organisation can
adopt marketing information system which provide the significant information to an
entity (Henrick and Holland, 2015). Marketing research can be organised to analyse the
value of customer, competitor, supplier and future trends. The company identified
potential opportunities for the target market, collect information and the split whole
market into segments on the basis of geographical, age group and gender so that they can
able to attain large market share.
 Selection of the target market: In this process, target customers are selected. Company
organise careful analyse of the target market in order to select the final consumer. It is
obvious that a entity can't satisfy the needs of whole market so they distribute that market
into small segments. It includes
1. Market segmentation: It is the technique where the total market are decided into the small
segments where each units have similar characteristics, values, income, ethics, wants and
norms. After that strategies are made to deliver goods and services to that target market.
2. Market targeting: In this process, target market are evaluated so that company can
compare the segment with its internal policies, strategies and objective. The simple rule
for selecting the segment is that it should provide the opportunity to the company to
select the potential customer value for the long run (Kang, 2015). Organisation should
only focus one or two segments so that they can able to have competitive advantage in
that sector and able to gain large market share.
3. Market positioning: The concept is relating to positioning the product of company in the
eye of the target market as compare to the goods of competitors. Company tries to create
a clear and particular picture/perception in the customer about the brand. Positioning is
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done only when organisation truly competitive and efficient offering to the clients in
order to capture maximum value as compare to their competitors.
 Developing marketing-mix: It is certain variable of market that are mixed by the
company in order to create respond in the target market (Maurer, 2016). It includes:
 Product: It is offering of goods and services to the target customer by the organisation.
 Price: It is the value which is paid by the customer to enjoy the products and sevices by
an entity.
 Place: It is means by the goods and services are distributed to the clients which includes
whole-seller, retailer and agents.
 Promotion: Effort made by the company that make sure about the selling of goods and
services by generating awareness in the eye of consumer such as advertisement, sales
promotion and publicity.
 Management of marketing efforts: It is implication stage of marketing program in
which suitable marketing-mix is set for the target customer. For management of
marketing efforts, four function are to be undertaken, these are as follows.
1. Analysis of market: SWOT analyse are made where organisation find their own weakness
and strength and market opportunities and threats.
2. Marketing planning: Top level management and marketing manager plan some strategies
that are developed for the achievement of objectives.
3. Marketing implementation: Developed strategies and plans are practically implemented
in order to achieve long term goals (Maurer, 2016).
4. Marketing control: It is performance measurement tool where the organisation compare
the actual performance with the standard decided to finding out any deviations, if it arises
measures are taken to solve them.
1.3 Role and responsibilities of a marketing manager in Tesco
For the Businesses, there are several organisational approaches to marketing. A manger
need to play various responsibilities in order to attract large number of customer and gain
competitive advantage over its rivals. These are as follows:
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 Marketing research: The manager must have good knowledge about the customer.
He/she need to make clear image using the resources which are available. The
information can be gathered by the means of questionnaires, internet, interviews, focus
groups, buying habits etc (Mintz and Currim, 2015). Proper statistical tools should be
applied to find out final conclusion that what to produce, how to produce, for whom to
produce and what will be the expenses.
 Develop marketing strategy plan: Planning is core for execution and it is presented in
the form of written marketing plan. It includes:
1. Situation analyse: What is the position of the company in market.
2. Objectives: what the entity want to achieve.
3. Strategy: how the organisation is going to reach at their objectives.
4. Tactics: it is details plan of the strategies.
5. Action: what is the job responsibilities of the individual.
6. Control: Caparison of actual performance and standard decided.
 Management of marketing-mix: It is all tangible elements that allow Tesco to market
their products and services. These includes employee, cost strategy, products, facilities,
process of selling and how to promote the products. Marketing manager has to focus all
these activities in order to attract large number of customer and generate sales and
profitability. Marketing-mix make the business focused that start with customer and try to
find out what they want to buy.
 Customer relationship management: It is the process of communicating to the target
market through the different stages of purchasing process, and it also includes the past
and loyal customers (Noori, 2015). It is most important to retain that old consumer than
to attract new customer. Marketing manager should identify the needs and wants of
consumer to satisfy their wants by serving them what they want to buy in to build
relationship with them.
 Managing sales force and marketing agencies: Marketing agencies like advertisement
companies and personal selling sales force. Websites, brochures and other promotional
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items will usually involve some form of outsourced such as graphic design or printing.
Careful management of these agencies is essential to serve integrated marketing approach
for promotion.
1.4 Marketing influences and interrelates with other functional departments of the organisation.
Marketing plays a vital role in the organisation of building interrelationship. The
department need to focus all the other departments of the organisation in order to attract large
number of customer, defining the budget for marketing, requirement of sales for distribution of
goods and services.
Finance department: It ensures that there are adequate budget and capital to meet the need of
research, promotions and distribution.
Sales department: They link with sales force to move toward the market and create the sales by
selling the product to customer through personal selling (Maurer, 2016). Motivate them increase
sales and brand awareness.
Human resource management: It makes sure that the employee have quality skills for doing
the marketing and attract large customers, hiring the good candidate who have good
communication and convenience skills.
R&D: Marketing department always try to identify the need of the customers, and come to R&D
for the solution. Some time R&D come with a new product, and marketing try to make a market
for it. So the relationship of marketing and R&D is really important for a company’s progress.
Operation department: Outlining the operation volume for the market demand. Marketing one
need to work closely to operation department because it helps to identify the volume of orders
generated by the marketing which can be met up with the particular time frame (Kang, 2015).
Though R&D come up with the customer’s solution, operation does the most important job of
making the solution a reality. Marketing department helps operation department by assessing the
market demand of the product which outlines the operation volume.
1.5 Marketing role in Tesco and its importance
Marketing is most important part of business throughout the world. Telecommunication
market is a place for good opportunities for any company. But industries like grocery and general
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merchandise retail industry demand a strong marketing department to ensure the brand image of
a company, some of important role of marketing are as follows:
 Attracting customers: Tesco create awareness about their products and brand by doing
advertisement, sales promotion and publicity so that they can able to attract large market
share and gain competitive advantage (Noori,2015).
 Retaining old customers: As the customer are attracted and aware about the product, next
step is to retain them by providing the special services by doing sales promotion such as
providing discounts and coupons so that customer does not switch to other competitor
product.
 Innovation: Every product has its life cycle which start from introduction and ends with
decline. At the stage of decile, company should make change in their old product so that
customer will buy their innovative product.
 Market research: It includes identify the internal and external environment and finding
that how that factors effect the organisation culture.
TASK 2
2.1 Objectives of Tesco and strategic marketing plan to achieve themselves
Objectives of Tesco
 The company core purpose is to create value for customers to earn their lifetime loyalty.
 Understand the Target market and Be first to meet their needs.
 To develop retailing services such as Telecoms/Phone Shop and Tesco Personal Finance.
 Tesco tries to develop their other Retailing Service which is Tesco Telecoms/Phone Shop
by promoting their Mobile Phones & SIM Cards, Broadband and Home Phone
 Maintaining relationship Marketing to achieve their aim by advertising their latest deals
to new and existing customers online.
Marketing strategy to achieve their objectives.
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The organisation is able to achieve their objective by proper implementation of marketing-mix
that is product, price, place, promotion, people, physical evidence and process.
 Product: Tesco offers variety of products, specially, along with foods and grocery
products. Following are the product categories that can be brought from the supermarket
chain
 Jewellery and clothing
 Health and beauty
 Entertainment and books
 Technology and gaming
 Home electrical
 Home appliances
 Garden
 Baby and toddler
 Toys
 Car accessories
Tesco bank offers range of popular banking products such as credit cards, mortgages, savings
and personal loan. The company have its own brands such as everyday value, Tesco lotus, kalpa,
loves baby and F&F clothing. In 2016, the company reduces the product lines by 18%
 Price: The company focus to maintain low prices as possible without reducing the quality
of the products. The company focus on price penetration where they keep their price low
to attract large customers (Kang,2015). Low pricing strategy helps the company become
the leading supermarket chain in Britain and leaving behind its competitor such as
Salisbury. The company adopt cost leadership strategy in order to maintain economy of
scale and best channel for procurement to maintain low prices. The company closely
work with its supply chain so that they can able to build good relation with its supplier in
order to reduce cost of production. They have adopted brand guarantee where they assure
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