Marketing Essentials: Tesco Marketing Strategies and Analysis Report

This report delves into the essential aspects of marketing, using Tesco as a case study. It begins by defining the roles and responsibilities of the marketing function, emphasizing market research, strategy management, product development, sales, communication, and event coordination. The report then examines Tesco's marketing operations, analyzing the interrelationship between marketing and other functional units, including human resources, information technology, consumer service provision, and research and development. Furthermore, it explores Tesco's marketing mix, potentially including product, price, place, and promotion strategies. Finally, the report may conclude with a basic marketing plan designed to help Tesco maximize profits through effective strategies. The content covers key concepts of marketing and its application to a real-world business scenario.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................2
P1. Roles and responsibilities of the marketing function............................................................2
M1 Roles and responsibilities of marketing................................................................................4
P2. Roles and responsibilities of marketing.................................................................................5
M2 Interrelationship between marketing and functional unit......................................................7
D1 Marketing functions and interrelation with functional unit...................................................7
TASK 2............................................................................................................................................8
P3. Marketing mix of Tesco.........................................................................................................8
M3 Different tactics applied by organisation to demonstrate business objectives to accomplish
....................................................................................................................................................11
TASK 3..........................................................................................................................................12
Covered in PPT..........................................................................................................................12
....................................................................................................................................................13
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Marketing is an essential component which is required to perform organisation’s
operations and management as well as to increase the profits of organisation. Strong marketing
strategies and planning can assist organisation in attaining goals and competitive objective in the
market (Prewitt, Weil and McClure, 2011). This is important in order to inform and make
customers aware about new product’s features as well as with the modifications of existing
goods. Market research studies company needs and requirements and new trends that have been
occurred in industry and amend and innovate existing product or to launch product. Also this
specify target consumers through segmenting customers that can be used and attracted toward
services. Cause of changes in industry, marketing essential is important in order to understand
market and consumers needs and expectation and study all factors of company as well as seeking
better technique to make an impact over consumers.
This study discusses about function of marketing and their roles and responsibilities in
internal and external environment of Tesco. This will also analyse the promotion mix and its
procedures as well as build a basic marketing plan for Tesco in order to gain maximum profits
out of strategy.
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TASK 1
P1. Roles and responsibilities of the marketing function
Marketing is a combination of promotional and operational activities that proceed to
promote and sell products through advertising and market research. According to AMA,
“Marketing is the activity, set of institution, an processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners and society
at large. ” This is the main source of expanding business, increasing customers, reaching target
audience and gaining revenues and profitability of organization. Marketing can be considered as
the backbone of a company that helps in accomplishing goals and objectives effectually.
Procedure of marketing promotes goals and mission of organisation as well as balance external
and internal environment through coordinating all functions together and monitoring them
(Osterwalder, and et. al, 2011). This not only helps in promoting organisation and to meet
customers, society, investors and catalogues but also represent a positive images of company and
portray its positive face of management and function. Here are some roles and responsibilities of
marketing which are explained as below:
Market Research
Research assists company in analysing the strengths, opportunities, weaknesses and
threats of company as well as requirements of consumers, effective strategic ideas and
approaches and promotion techniques that can be effectively applicable with company and its
products in order to influence their target customers. Research is significant for everybody or
organization to understand market trends, customer’s needs and recent technologies along with
identifying the mission of organisation. Market analysis whereas helps in identifying company’s
strengths, weaknesses, opportunities and threat that can obstruct growth. Organisation in
industry always requires to promote themselves and attract customers to sustain in the market.
Market research assists company to analyse the response, feedback, reports, data, statistics and
consumer expectations. Behaviours can help in building new and effective strategy to
accomplish objectives.
Strategy
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Management of company form and designs plans, strategies, targets and objectives of
company. An effective strategy helps company in achieving the goals and mission of
organisation and commercialise their products and services through influencing them with
providing a reason to purchase the product. Strategies are developed after making analysis of
different factors of business and market trends along with new trends and change in consumer
expectation and needs. This is built to develop and imply new innovation and concept in industry
that depends upon various components of market essentials.
Product development
Evolution in existing products and providing services is essential according to the market
trends and customers’ demands. Product development is necessary to sustain in market and
make consumer stick with company through providing them new features and facilities before
any other company in same prices and brand too. Business analysis is done to identify new
trends and expectations of customers (Mohammad Mosadeghrad, 2014). Company cannot
sustain in the market with same facility for a long period as market is dynamic and therefore,
requirements and preferences keep vary in market. Product development and improvisation
innovate and improve features of company and increase the sales of services of business.
Sales
Marketing and sales are interdependent and interrelated to each other. Marketing helps in
increasing sales through promoting and advertising products and communicating company’s
specific message to consumers that must influence their minds and perception to make the
purchase products. Increased sales will directly raise revenues and profits of company that
indirectly assist in the management of employees and in satisfying consumer needs. Thus,
income of company depends upon the sales of products and services as well as to promote and
develop this, organisation uses promotion, marketing tools and essentials to attract maximum
customers. Also, company offers many packages, schemes, coupons and gift vouchers to
influence them to buy services (Laudon and Laudon, 2011). This is very complex process to
promote in minimum budget to optimize its results and get consumer attention. For this,
company has to set and build innovative products and build strategies of marketing and imply it
in industry.
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Communication
Communication of company aims to consumers as well as their internal public that is
important for constant functioning and management of various operation that occurred and will
occur in organisation. Marketing focuses over communication activities such as interaction of
conveyed content through advertising, promotion, publicity and personal selling methods.
Communication between consumers and company is required to identify customer’s demands
and requirements and convey message of enterprise. This depends on company’s financial
situation and tool they use such as electronic media newspapers, campaigns, events and online
media. They use the best and most effective medium of media that can directly connect them to
their target customers. This also helps in conveying message and features of products and
services in message form that influence their emotions and perception. For that it is important to
use specific media tools to communicate specific message through a specific target customer
within a specific period of time to get maximum result in minimum expense of capital.
Events
Department of marketing is liable for coordinating programmes including conferences,
seminars, campaigns, exhibitions and consumer oriented events, etc. These events are being
organised to attract and influence consumers and build a positive brand image in the
organisation. This is a technique of marketing and promotion in which company performs some
events and activities to portray a brand image in the society and community. Social goodwill
does not help company in increasing sales and achieving company’s goals and objectives but
also in accepting company change, supporting business in crisis and their conflict situation and
benefit them directly and indirectly in various ways. Organisation can also initiate through
organising online campaigns, supporting social issues, game activities and promote their
company services and products. Online media provide an easy access to mass number of people
in effective and quick way.
M1 Roles and responsibilities of marketing
Marketing is very significant elements of organisation used for effective functioning.
This is often understand as business concept that assist an enterprise in gaining in level of
profitability as well as this conveniently study the change in preferences and predilection of
consumers of cited company. It is a wide concept that consist of manufacture, commodity,
merchandising and using promotional tools effectively. For undertaking this function under the
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process, it requires to analyse whole environment including internal and external along with
consumer and market trends study for determining minimum cost of products, identify and
compete the competitors, and portraying a unique recognition in market. Later the promotional
activities so public to inform them about the feature and USP of service.
P2. Roles and responsibilities of marketing
Marketing is interrelated with organisation’s other operations and management in various
ways. Through marketing, entity and other departments set their goals and objectives of
company according to the demands and requirements of consumers through analysed data.
Organisation have one motivate that is provide consumer best services and attract as much
customer through marketing as company possibly can. Tesco has deployed its business
worldwide and is one of the largest retailing groups in UK (Kock, 2014). Marketing of company
not only influence consumers but affect society and its culture as well as trends in several ways.
Tesco has some roles and responsibilities while marketing which influence other management
entity which have explained below:
Human resources –
Human resources of an organisation control and manage personnel of internal as well as
external environment through organising and coordinating several activities such as training,
selection, development, recruitment of vacant jobs and staffing process. Through these
approaches and practices, HRM motivates, stimulates and inspires employees along with
monitoring and protecting their rights with avoiding workplace conflicts and disputes in order to
provide better environment and build relationship in between employer and workers. It is HR job
to recruit right candidates at specific place in order to optimize specific skills on right time for
gaining better outcomes of operations. Marketing handles and promotes the assets of company in
order to get maximum revenues and benefits from market through selling products and services.
Marketing provides help in recruitment needs, job profile and description process through online,
written advertisement. Also, it helps in coordinating with induction and interview process as well
as publishing newsletter and magazine articles along with communicating through these policies,
terms and new events of company.
Information Technology -
Information technologies refer to data saving software, hardware of computers,
information framework of company and other information related assets that provide ease and
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help in analysis and other operational activities through electronic tools. In marketing and
promotion activities, it helps in designing and operating information and content in advertising,
branding, information dissemination activities and creating various videos, images and graphics
for promotional prospective. This facilitates various communication technologies including
intranet, internet and extranet for customers, investors and employees of company. Online and
internet marketing is new and the most utilized terms that are being used by Tesco for that IT
help in such activities. Buyers like to purchase products on online websites and shopping which
is now in trending in industry. To cope up with new advanced and technical era of technology
and methods of marketing, IT helps Tesco.
Consumer service provision -
Customers satisfaction through providing better and satisfactory services is the main
objective of Tesco. To control this function, Tesco monitors different departments that focus
over the services of consumers. This can practically be controlled through the help of internet. IT
of company assists in customer support activities and make it more effective and efficient. IT
protects and collects data and statistics along with providing quick process and facilities in Tesco
stores. Consumers can be attained through promotional and marketing activities which is
required to increase shares and revenues of a company. Therefore, customer services and
satisfaction depends upon marketing essentials and activities for operating functions of business.
Research and development -
Research and development is the main function of organisation and engine for sustainable
growth of a company. By this, it is easy to access new changes and development along with
understanding and identifying wants and requirements of company through research reports,
examining consumer responses and expectation as well as their values, attitudes and behaviour.
Research can assist in identifying new trends, consumer demands and market needs as well as it
helps in building new strategies, planning and approaches that can be effectively implied in the
market in order to influence industry and attract more consumers (Hair, 2015). Through analysis,
company can develop and improve their products as well as services, system and culture
according to requirements and business environment. Many revolutionary strategies are brought
up in the market after analysis of industry and consumer. This is a process which is used in
marketing and promotional activities through identifying environment and creating new
innovative marketing plans.
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Manufacture / Functional Division -
Manufacture transforms raw material into company assets and and operate various
activities which is needed and help in administrate them. Functional division keep engage in
various practices including manufacturing goods, packaging, reposting, supplying and
arrangement of services. In manufacturing process, Tesco produce their products and services
which they provide to customers. Thus, supply refer to manufacture in warehouse in which
products are stored in them, and after supplying products they arrange them to suppliers and
distributors. Marketing help in retailing and functional activities occur Tesco. Marketer help
company in procedure of retailing and selling of their products and determine the market in
which customer demand for products and company can sell product in more quantity. Marketing
is only key through which Tesco can gain revenues and profits from market.
M2 Interrelationship between marketing and functional unit
It is declared that the marketing act as the communicator in between he outside world and
company. Where areas, other customers also want systemic interaction with department which is
fundamental and attain all the goals of organisation. Marketing equally helps to the other
functions also to increase the quality and performance within the enterprise. The plan of the
merchandising include financial information to new and existing product. Commercialism
support then while taking investment decision. Marketing strategies stimulate definite responses
of markets so they influence demands of goods, services and terms of level. The research of the
marketing provide understanding of product and also measurable with standards of consumers.
Sales also cultivated with the marketing actions and offer product to their clients and try to make
it profitable for enterprise.
D1 Marketing functions and interrelation with functional unit
Marketing is very broader function and it critically develop business by promoting
products and services. In market research it demands to gin insight into the customers and also
intend to serve products which need to develop by identify strength of products . So the research
basically a perpetual function of marketing which help in improvise new products so they can
improve the subsisting products. The research is core which becomes exact point in developing
with fresh solutions and which also exceed expectation of competitor. There are various
mediums through which they advertise, selling, public relation and either promotional functions
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by using various mediums. The consumer services includes calls of follow up to make sure that
their positive as well as negative experiences also follow through various services commitements
by resolving complaints.
TASK 2
P3. Marketing mix of Tesco
Marketing Mix is combination of components which influence buyers to purchase goods
and services of enterprise. This refer to allocation of all elements in various spheres and keeping
specific product on right time with specific technique of production for specific customer.
Company need 7P's of marketing mix in order to meet successful launch of strategy for a specific
product which consist of place, physical appearance, promotion, price, product, people and
process. Those 7P's of Tesco help in developing Tesco growth which are explained below:
Place –
Place refer to all location where the arrangements of products and services is being made
for sale and where consumer can purchase them. Tesco stores have been deployed in many
countries from last decade. Tesco has expanded its stores in more than 111 countries and own
approx 8000 stores of it worldwide. UK only make more than 2/3 of its sales of products which
function in superstore, extra, metro formats. Tesco is no2w selling their products online too. Its
website is named Tesco direct that access to main domain of Tesco website. Customer uses of
online shopping is being increased and it provide them ease, convenience in shopping. Tesco
majorly deployed its stores in United kingdom and European Countries.
Product –
Tesco is one of the largest supermarket chain and merchandiser in UK with wide variety
of products (Harison, 2012). Tesco contains comprehensive reach of services and goods. They
provide their consumer various products such as baby products, gardening tools and toys,
entertainment and books, technical and game programmes, cloths and necessaries and home
products & groceries and many others. Tesco services quality as well as cost is major factors that
attract consumers most.
Price –
Cost leadership is most effective component that is one of strength of Tesco. Tesco
improve their costing strategy in basis of business planning which help in achieving in
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competitive advantages. Tesco keep their prices low and quality of products higher through
decreasing cost of production and management function. Company uses various pricing
techniques such as product line, premium pricing, economy pricing and geographic pricing
methods. The concept of “ Every Little Counts” is major attraction of Tesco which refer to
providing law prices and high quality products in larger stores. Tesco analyse market pricing
techniques and understand customers needs and then finalise their cost of products and try to
keep them as low as possible through saving cost of operations of company.
Promotions –
Main advantages of Tesco is cost effective technique. This makes it different from other
chains of supermarket and merchandise companies. Tesco advertise their products over this
concept and try to influence consumer on price and quality basis. Tesco use various promotional
tools in order to promote their products and its features such as ads on TV, promotion on
discounts and offers periods, through participating on charitable events and sponsoring in movies
and events and through point of sale technique etc. the advertisement concentrate on cost of
products (Guffey and Loewy, 2012). They use emotional theory of promotion and make
customer feel like they purchased more quality and amount of services in less prices through
offering offers such as 'buy one get one free'. Tesco also promote their products through
advertising online.
(Source: 7p's Marketing Mix, 2017)
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People -
As Tesco is largest merchandising organisation in UK, they have large group of
employee which are more than 460,000 in entire stores at worldwide. Main goals of Tesco
people is to provide customer satisfaction and fulfil their quires and requirements through
various tools. Also to develop employee skills and abilities Tesco spend a lot of money in extra
circular activities as well as organise training and development activities for enhancement of
their skills and knowledges. Also The company provide many reward activity such as best
performance award, proper discipline activity award and many others. To increase loyalty and
potentiality of workers, many programmes is being organised such as Buy as you earn, save as
you earn etc.
Process -
Process defines all activities and practices that is being undertake by company in order to
accomplish a goals or objective. Tesco have a standardized process of production and
distribution of products and services in entire stores like consumer order process. Customer
choose commodity and pay to assistant in offline stores of Tesco. Now in advance technology,
customer can make their payment process by themselves on counters (García-Peñalvo and et. al,
2013). Thee are heavy staff and employee members which assist and suggest as well as provide
quick services to customers.
Physical Evidence -
Physical appearance of an organization not only depict stores infrastructure and
availability but also their interior, hygiene, maintenance and availability of products and services
within them. Tesco have significant and unique logo and perfect use of colours that depict
organisation very well. Tesco present their products in categories which make them easy access
of services in their stores. Stores are fully furnished, clean and perfect lighting techniques are
used so it is convenient for customer examines products quality at stores. As on website of
Tesco, all product are perfectly categorised, websites is simple, and easy to access and the
ordering process in not complicated that there is no complex in the process.
Element Tesco Sainsburry
Price Low and competitive cost of High prices of products more
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