TESCO: Marketing Mix and Organisational Context Analysis Report

This report provides a comprehensive analysis of TESCO's marketing strategies, focusing on the key roles and responsibilities within the marketing function. It examines how TESCO manages its operations, identifies customer preferences, and implements promotional activities to increase sales and profitability. The report details the relationship between the marketing department and other organizational units, such as finance, human resources, and sales, highlighting their interdependencies. It compares how TESCO and Sainsbury's apply the marketing mix (7Ps) to their planning processes, evaluating their product strategies, pricing, distribution, and customer service. The report concludes with an assessment of how these strategies contribute to TESCO's market position and overall success, emphasizing the importance of adapting to changing market dynamics and customer relationship management.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
M1 Analysing the roles and responsibilities of marketing function ..........................................2
P2 How roles and responsibilities relate to organisation in wider context.................................3
M2 Relationship between the marketing and other units of organisation...................................4
D1 analysing and evaluation of key elements and their interrelationship..................................5
TASK 2............................................................................................................................................5
P3 Comparing the ways in which organisations apply marketing mix to planning process.......5
M3 Tactics used by the organisation in achieving the objectives...............................................7
D2 Designing the strategic marketing plan with the application of 7 Ps...................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Marketing refers to the process of satisfying customers by producing goods and services
and delivering them in an effective manner. Marketing essential is an integral part that deals with
how the company products can make place for itself in the market. The main aim of this activity
is to increase the sales and profitability of business. The company which has been selected for
the purpose of studying this aspect is TESCO. It is situated in UK and was founded by Jack
Cohen in the year 1919. TESCO is well known brand that deals in retailing business. The
following report consist of detailed description about the roles and responsibilities of marketing
function within the organisational context and how different organisations use marketing mix for
the achievement of goals and maximising the growth of enterprise (Arguello, 2013).
TASK 1
P1 Key roles and responsibilities of marketing function
TESCO has made niche for itself in the market due to it's effective marketing strategy.
The company is known for using aggressive promotional techniques that is turning out
successfully in the attracting large number of customers. This has happened due to the organised
way of roles and responsibilities in marketing function. These are explain below in detail:
Management process- It refers to the process of managing the activities and
programmes related functioning of enterprise. TESCO appropriately applies this function in it's
working by training employees. The role played by this function is to set goals and providing the
direction to organisation. Responsibilities of this function are Planning which is concern with
thinking what could happen in future and how organisation can be prepared accordingly to deal
with unforeseen circumstances and Organising involves in defining the roles and responsibilities
and establishing relationship between them. This leads to the proper arrangement of
organisational structure Directing and controlling lead and ensures optimum utilisation of
resources.
Giving customers what they want- This function is about identifying the preferences of
customers and taking measures to increase their satisfaction level. Major role of this activity is
acknowledging the changing demands and taking responsibility to fulfil them. TESCO deals with
customer on daily basis that's why it keeps updating ways to satisfy them by incorporating new
features in the business. This aspect is a part of every business therefore it maintains effective
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customer relationship which helps in proving constant feedbacks and suggestions to the
company.
Promotion- This function is associated with inducing the customers to buy products or
services offered by the company. It plays the role of attracting potential buyers towards the
business along with having the responsibility of increasing sales and maximising profits. It is
important to communicate with customers before launching products in the market. There are
various promotional techniques used by the business entity. TESCO is one such organisation that
involves in extensive advertising of it's offerings in various media outlets (Desai, 2013).
Pricing- This is related to charging appropriate prices for the offerings produced and sold
by the business. Major role of this function is to set price, it should be based on the value of
product and services so that cost occurred on producing it can be covered therefore it is difficult
to determine them for the managers. Increasing the profits for the company is function's main
responsibility. TESCO decreases the operational, purchase cost and then charges lower amount
for the purpose of attracting wide number of customers.
Fulfil customer requirements profitability- It is concern to meeting the requirements of
customers and doing in such way that it increases the profitability. Role of this function is to
make sure that buyers needs are fulfilled by taking the responsibility of understanding the things
that they require. TESCO by wide range of products to it's customers and sometimes the
employees goes extra miles in helping them therefore the company is enjoying high profits and
market value.
Changing Role of marketing- due to the complexity of business managers indulges in
updating the marketing strategy this aspect is associated with determining new ways to gain the
attention of buyers. Customer relationship management is new role which companies are
involving themselves with. The responsibility of this function is to extend present customer base.
TESCO has effectively developed it's base through continues relationship with customer by
using strategy named multi channel client management.
M1 Analysing the roles and responsibilities of marketing function
The roles and responsibilities of management function is important to determine as the
major source of achieving the organisational objectives lies in clearly defining them and using
for the purpose of increasing the profits. Each and every function plays significant role in
business. Roles and responsibilities regarding pricing promotion distribution are the key
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elements. They helps in providing confidence to customers and persuade them to buy products.
TESCO managers took the responsibility of marketing and focused completely on market
segmentation that has led to the growth in revenues and acquiring the large market share.
P2 How roles and responsibilities relate to organisation in wider context
Marketing department helps the organisation to market its product and create a brand
image for the TESCO PLC. The marketing department act as a communication channel between
the organisation and the customers. The responsibility of the brand image is depended on the
marketing Department. The marketing department is an important part of any organisation as it
helps the organisation to create the brand image for the products of the company. The marketing
department acts as a face of the company for the customers. The customers recall the name of the
company only because of the marketing department (Eng, 2017).
Inter relationship of marketing department with the other functional department of the
organisation are as follows:
Marketing and Finance Department: Marketing and finance department are directly
connected to each other, as the marketing department needs the funds to conduct different market
surveys and market research to create the brand image of the company which requires funds and
the finance department provides the fund to the other functional departments. It is also the
responsibility of the finance department to keep a record on the funds utilized by the marketing
department, and also to check whether the funds are properly utilized or not. Marketing
department is also connected in a way that if any sales for TESCO PLC will come from the
promotional activities conducted by the marketing department will be recorded by the finance
department.
Marketing and Human Resource Department: Marketing and Human Resources
department are interconnected in a way that the Human Resource department will hire the
eligible candidates for the marketing team. It becomes the sole responsibility of the Human
Resource department to manage their work force and providing them with the suitable and
qualified candidates that can help the marketing department in achieving their target and creating
a brand image of the company products and services (Rossi, Allenby and McCulloch, 2012).
Marketing department of TESCO PLC send the performance report of the candidates to the
Human Resource department so that they can plan their compensation according to the work
done by the candidates. Human Resource department plays an important role to support the
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marketing departments as it hires the new and more suitable candidates for the job of marketing.
Marketing is an essential job for the company as the company image is totally depended on the
marketing department.
Marketing and Sales Department: Marketing department and the sales department are
directly connected with each other. The main objective of the marketing department is to create
the brand image of the company and its products and generate the leads which can be converted
into sales by the help of sales department. These lead are generated by the marketing department
and later on that leads are transferred to the sales team for the purpose of converting that lead
into the essential sales. Sales department is also considers to be an important department as it
helps the TESCO PLC to generate the revenue which is most essential part of the organisation.
Sales department gives the data to the marketing department of the areas where the promotional
activities are required to generate the lead.
Marketing and Information and Technology department: Marketing department and
the Information Technology are connected indirectly with each other. Information technology
department uses the new technological advancements to helps the marketing department to work
more effectively and efficiently to generate more leads which can be converted into sales.
Marketing department gives the requirements of the new technologies to generate the lead and IT
department tries to meet up with the requirements given by the other departments (Fejza and
Asllani, 2013).
All the departments are connected with each other in different ways every department has
its own importance in the organisation the interrelation between all the departments are properly
managed so that each department can help the other departments.
M2 Relationship between the marketing and other units of organisation
Marketing is interlinked with other functional units of business which are as important as
marketing function. There lies a close relationship between HR and marketing as the every
activity in the organisation is performed by employees therefore skilled and talented people are
hired through this activity. Relationship between Finance and marketing department gets often
conflicting due to funds availability hence balance and adjustments are required on employees
part.
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D1 analysing and evaluation of key elements and their interrelationship
Management process function is related with all the department of organisation as it
provides guidance to every divisions and involves in decision making. On the other hand
Promotion and pricing and customer relationship function is related to marketing unit as they
deal with satisfying customers demands and achieving the organisation objective which is to gain
large market share by improving the sales and profitability of business.
TASK 2
P3 Comparing the ways in which organisations apply marketing mix to planning process
Marketing mix is a framework that provides different ways to strategies products of
company in order to increase organisation's market share and profitability. It consist of 7Ps
which are part of this tool named Product, Price, Place, Promotion, People, Process and Physical
evidence. Each of the strategy perform different function, analysis of these strategies helps the
organisation in determining ways to maximise profits (Fields, 2016). The reason for the growth
of TESCO and Sainsbury is due to incorporating these strategies into their working. They are
discussed below in detail:-
Marketing mix TESCO Sainsbury
Overview TESCO is the largest retailing
brand which was founded in
Jack Cohen in 1919. It
indulges in B2C business and
provides fast moving
consumer goods
Sainsbury is the second largest
chain of supermarkets founded
by John James in 1869. This is
also involve in B2C business
and FMCG products.
Objectives The main objective of this
brand is to develop brand and
increasing the customer base.
The main objective of this
brand is to increase it's market
share and regain the position
of Top retailing brand
(Ressler, 2013).
Product Product strategy is related to
what the organisation is
This brand believes in
delivering innovative and
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offering to the customers.
Being involve in retail
business TESCO offers wide
range of products and services
like clothing, food etc.
distinctive products to it's
customers.
Price TESCO charge low amount for
it's products to customers by
lowering the operational and
purchase cost. This helps in
making the TESCO more
successful than Sainsbury.
Sainsbury on the other hand
uses competitive pricing policy
that helps in retaining
customers and increased
market share. This policy is
beneficial in the long run.
Place TESCO provides it's products
on various stores in UK along
with dealing in online business
through it's official website.
Sainsbury also offers it's
products both online and
offline. There are total 174
stores operating and providing
home delivery services to the
customers.
Promotion TESCO uses extensive
marketing strategies. In
advertising it puts emphasis on
low prices which the brand is
charging for the
products(Gummesson and
Grönroos, 2012).
Sainsbury promotes the brand
on various platform such as
television, radio etc. It uses
above the line and below the
promotional strategies.
People TESCO employees are known
as great salesman. They are
one of the important factor for
the brand's success. They
provides extra services to
clients which helps in building
Talented worker of Sainsbury
workers provides effective
services to the customers.
They are well groomed and
trained by the company to
satisfy customers needs and
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relationship and loyalty. achieving organisation
objectives.
Process TESCO keeps systematic
arrangements of products in
the store so that customers find
them easily. It also involves in
quick billing services and
effective management of
customer relationship
department.
Sainsbury manages the website
efficiently by sorting products
billing and delivery system in
an organised manner and it is
also making changes as per
customer requirement.
Physical Evidence This is concern with
architecture of shop. TESCO
does not spend too much
money on the stores as the
owners don't seen any point in
that but still it maintained
hygiene and keep shops in
good condition.
Sainsbury spend huge money
in designing the store as it
believes in luring customers
through this strategy. They get
attracted towards the lavish
style of the stores.
M3 Tactics used by the organisation in achieving the objectives
Various tactics are used by the organisation in achieving the objectives. Managers
tactfully deal with customers and employees by acknowledging their demands. Effective pricing
and promotional tactics are used by the TESCO and Sainsbury to establish themselves in the
market. TESCO uses low price strategy to the attract traffic of customer by cutting costs while
Sainsbury uses celebrities like David Beckham's for the brand endorsement. These strategies
helps in increasing the profitability of organisation as due to this customer are becoming aware
about the brand this increases their interest and push them to try products offered by them
(Hashim and Hamzah, 2014).
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D2 Designing the strategic marketing plan with the application of 7 Ps
In order to create an effective market plan knowing your business target is very
important. So the first step involves in complete information regarding customers age, gender,
location etc. This aspect is used for the product strategy. Next step is the identification of
competitors about the strategies used by them and their competency thus pricing strategies are
determined by the organisation based on this. Afterwards appropriate media channels to promote
the products are determined this is done for the promotional part of marketing mix. Organisation
should take measures in case customers are facing any issue. This aspect can be analysed through
obedient people working and paying attention towards customers. Using these strategies helps
the organisation in the achievement of goals (Pappas, 2017).
CONCLUSION
It has been concluded from the above report that marketing essential involves in multiple
phases of business and plays key roles in maintaining and increasing the growth of business.
Analysis of various functions of business has been discussed along with strategies of marketing
mix such as Product, price, place promotion, people, process and physical evidence helps the
managers to survive in ever changing business environments. At last building an effective
marketing plan provides strong base to the business.
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REFRENCES
Books and Journals
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college of business and marketing faculty. Journal of Business & Finance
Librarianship. 18(4). pp.309-329.
Desai, S. S., 2013. An Analysis of the Competitive Marketing Strategies of the Hospitality
Industry in UAE. IUP Journal of Management Research. 12(1).
Eng, P., 2017. Erste Schritte im Online-Marketing. Wiesbaden: Springer Vieweg.
Fejza, E. and Asllani, A., 2013. The importance of marketing in helping companies with their
growth strategies: The Case of Food Industry in Kosovo. European Scientific Journal,
ESJ. 9(16).
Fields, E., 2016. The essentials of finance and accounting for nonfinancial managers. Amacom.
Gummesson, E. and Grönroos, C., 2012. The emergence of the new service marketing: Nordic
School perspectives. Journal of Service Management, 23(4), pp.479-497.
Hashim, N. and Hamzah, M.I., 2014. 7P's: A literature Review of Islamic marketing and
Contemporary Marketing MIx. Procedia-Social and Behavioral Sciences, 130, pp.155-
159.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Ressler, P., 2013. Marketing pedagogy: Nonprofit marketing and the diffusion of monitorial
teaching in the nineteenth century. Paedagogica Historica. 49(3). pp.297-313.
Rossi, P.E., Allenby, G.M. and McCulloch, R., 2012. Bayesian statistics and marketing. John
Wiley & Sons.
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