Detailed Report: Marketing Concepts and Consumer Decisions at Tesco

This report provides a comprehensive analysis of Tesco's marketing concepts and consumer buying behavior. It begins with an introduction to marketing concepts and key terminologies used by Tesco, a leading British multinational grocery and retailer company. The report delves into the five main marketing concepts adopted by Tesco, including production, product, selling, marketing, and societal marketing concepts, and examines how Tesco applies these concepts to satisfy its customers and maintain its market leadership. The report further explores the various types of consumer buying decisions, such as complex, variety-seeking, dissonance-reducing, and habitual buying behaviors, in different conditions. The conclusion summarizes the key findings, highlighting Tesco's successful implementation of these marketing strategies and its impact on its market position and customer satisfaction. The report includes references to books and journals to support its analysis. Part 2 includes a presentation on the topic.

Report on Marketing
Concepts of Tesco

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Marketing concepts and key terminologies of Tesco.........................................................1
2. Consumers buying decisions in various conditions............................................................2
CONCLUSION................................................................................................................................3
Part 2 Presentation...........................................................................................................................5
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing concept is the strategy that every organisation applies to analyse the
requirements of the consumers and make decisions to satisfy those requirements. Tesco is British
multinational grocery and retailer company whose headquarters are located in Welwyn Garden
city, Hertfordshire, England, United Kingdom. It is grocery market leader with market share of
around 28.4% (Claiborne and Sirgy, 2015). It sells 40,000 food products, clothing and other non-
food items in its superstore. This report primarily focuses on key terminology and marketing
concepts of Tesco. Further, it includes consumers buying decisions both locally and
internationally.
1. Marketing concepts and key terminologies of Tesco
Tesco is world’s leading company and therefore has adopted various marketing concepts
to satisfy its customers. Marketing strategy of Tesco involves analysis of market, examination of
product to sell at what price. It also gives idea to the company about the customers, relating to
their fashion, demand, season, sizing etc. The organisation has made marketing concept to regain
the trust of stakeholders to the product (Dinnie, 2015). There are mainly five marketing concepts
used by Tesco.
1. Production concept: Tesco has several stores in 12 countries and believes that goods
and services must be available at many places with lower cost which help them to sell
their products with high quantity. In order to make product cheap the company has made
every possible effort to increase their production. The utility of this thing increases when
product demand exceeds.
2. Product concept: Tesco believes in giving effective quality of products and services to
their customers. It believes that customers will automatically get attracted towards their
brand if they are of good quality (Samiksha, 2016). Therefore, the company focuses on
increasing the quality of products so that customers can buy their product in large
quantity.
3. Selling concept: The main philosophy of the company is that goods are not bought but
they have to be sold. The company is putting more efforts so that customers will be
attracted towards them. This concept gives the idea that repeated efforts can sell
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anything. The organisation is hiring more persons so that they can help it to give more
services to the customer. Company has started its online services for the convenience of
their customers.
4. Marketing concept: Customer satisfaction is key factor in achieving success. The basis
of this philosophy is that only those products and services should be made available
which the customers desires and not the things which they easily manufactured by the
company. (Sela and et.al., 2017). This concept helps in achieving the customer's
satisfaction and long-term profits. It also helps in increasing revenue of the company.
5. Societal marketing concept: This concept is used by the organisation to give importance
to Consumer Welfare/Societal Welfare. Tesco believes that customer satisfaction along
with welfare of the society must be kept in mind while selling its products. Social welfare
includes high standard of human life and pollution free environment (Joshi, 2016).
Therefore, the firm has made all marketing efforts towards social welfare of the society
and consumer satisfaction. It is the latest concept used by the company which helps in
achieving its long-term objectives and profits.
2. Consumers buying decisions in various conditions
Consumer buying decision changes with their needs, desire, fashion and season.
Consumer gathers more information about the product if it is highly expensive so that they can
choose the best product with lower cost. There are four types of consumer buying decision which
helps the organisation to know the customers’ needs. Various buying decision of customers are
described as follows.
 Complex buying behaviour: Complex buying behaviour occurs when customer involves
in buying and there are differences in brand of the product. Tesco provides detailed
information regarding product attribute and customer also collect details about the
product features (Kaurav and et.al., 2016). For example, customer who purchase clothes
from the company is highly involved in the purchase and collects information about the
different brands of clothes.
 Variety seeking behaviour: In variety seeking behaviour, customers involvement is very
low and there are various differences between brand. Consumers also take active part in
purchasing different varieties of brands. In this way buyer and marketer interacts with
each other and seller tries to achieve customers satisfaction.
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 Dissonance buying behaviour: Dissonance buying behaviour of customer takes place
when the customer shows their full involvement and there are few differences between
products. For example, consumer purchase tiles quickly as there are only few differences
between them.
 Habitual buying behaviour: In this buying behaviour, customers involvement is very
low. And few differences among brands are available. Tesco customers are potential
buyer as they purchase every product from them (Landwehr, Wentzel and Herrmann,
2013).
Tesco has provided online services with facility of home delivery. This helps customer
lot as it saves their time and money. It benefits the customer as they are getting the best quality
of product with fewer expenses. Customers are highly involved in these type of services of the
company. On the other hand, high involvement of the customers is seen towards offline services
of the company. Customers are purchasing various products from the stores that are easily
accessible to them (Oliver, 2014). The organisation has also made all the products available to all
stores so that consumer can easily access them.
CONCLUSION
From the above report, it can be concluded that, Tesco is using various marketing
concepts like production, product, selling, marketing and societal marketing in order to grow and
explore its business. With the help of these marketing concepts, the organisation has successfully
established 2,318 stores and become the world largest company. It has secured ninth position
when measured in terms of revenue and has third largest retailer in the world when measured in
terms of profit. The company has analysed buying decision of the customers in different
conditions in order to know customers involvement under different situations. The organisation
has achieved its long-term objectives and goals with the help of marketing concepts and knowing
customers buying decision. It also gets success in achieving customers satisfaction.
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Part 2 Presentation
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REFERENCES
Books and Journals
Claiborne, C. B. and Sirgy, M. J., 2015. Self-image congruence as a model of consumer attitude
formation and behavior: A conceptual review and guide for future research. In Proceedings
of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 1-7). Springer
International Publishing.
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Joshi, R. M., 2016. International Marketing (Book Review). The African Journal of Finance and
Management. 14(02).
Kaurav and et.al., 2016. Internal Marketing: Review for Next Generation Businesses. Journal of
Services Researc. 16(1). p.81.
Landwehr, J. R., Wentzel, D. and Herrmann, A., 2013. Product design for the long run:
Consumer responses to typical and atypical designs at different stages of exposure. Journal
of Marketing. 77(5). pp.92-107.
Oliver, R. L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Sela and et.al., 2017. Latent Viral Marketing, Concepts and Control Methods. arXiv preprint
arXiv:1704.01775.
Online
Samiksha, S., 2016. 5 Important Concept of Marketing Management Philosophy. [Online].
Available through: <http://www.yourarticlelibrary.com/marketing/5-important-concept-of-
marketing-management-philosophy/1076/>. [Accessed on 16th June 2017].
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