Evaluating the Effectiveness of Digital Marketing at Tesco Company

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This report assesses the effectiveness of digital marketing strategies employed by Tesco, a multinational grocery and merchandise chain. It begins by defining the marketing mix and its key elements (Product, Price, Place, Promotion) and how Tesco utilizes them to enhance its market position. The report then describes key elements of the communication mix, including advertising, digital marketing, public relations, personal selling, and sales promotion, detailing how Tesco integrates these channels to interact with potential customers. Furthermore, it examines the influence of various social media platforms such as LinkedIn, Facebook, Twitter, and Snapchat on Tesco's communication strategy, highlighting the benefits and unique contributions of each platform in boosting brand awareness, customer engagement, and overall market growth. The report concludes by emphasizing the effectiveness of social media content in attracting online traffic and building brand awareness for Tesco.
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Effectiveness of
Digital Marketing
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Description of key elements of communication mix:.................................................................4
Influence of social media platforms on company's communication strategy:............................6
Effectiveness of social media content:........................................................................................8
Conclusions......................................................................................................................................8
References........................................................................................................................................9
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Introduction
In the digital era, marketing through digital platforms is increasingly practised by
corporate players in order to enhance sales growth and market size of their products. Digital
marketing is the way of selling goods and services through various digital channels such as
social media, email etc. In this report TESCO company is taken into consideration which is a
largest British owned multinational chain of groceries and general merchandiser headquartered
in Welwyn Garden city, England. The report will describe about marketing mix and its
importance. In relation to this, the report will cover key elements of communication mix and also
discuss about important role of social media channels in building company's communication
strategy for market growth and development.
Main Body
Marketing Mix is referred as the marketing strategical tool which includes number of
elements in order to enhance products image in the market and help organisation in selling their
goods and services in effective manner. It is basically concerned with positioning and selling of a
product in the right place , at the right time and at right price in order to increase sale of
products . In context to TESCO, the company uses marketing mix as a marketing tool in order to
promote and increase the sale of its product in the market(Mintza and e.al., 2021).
There are 4Ps in marketing mix which is taken into focus while developing marketing
strategies by mangers. The 4Ps are:
Product: The product is the goods manufactured in order to satisfy the needs of group of
individuals present in the society. The developing to selling phase of products follows a
fluctuating life cycle process which includes Growth phase, maturity phase and the sales decline
phase. In addition to this, Growth phase includes the development of product in factories,
Maturity phase includes finished products that is ready to sale in market and sales decline phase
includes the products that are rejected by customers. Furthermore, The product should create
positive impact in the minds of customer which aids the firm in building positive brand image in
the market. In context to TESCO, the company deals in wide range of products such as grocery
items, electronics, clothing and many more. This tool support the firm in doing extensive
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research of product before launching it in market and helps the firm in order to stimulate more
demand in the market(Warrink, 2018).
Price :The pricing strategy of company is the most important factor in marketing mix for
defining organisation growth and success in the market. Price is basically a charge imposed by
firm in relation with the usage of their products and services. Moreover, the firm needs to
practice extensive measures in order to determine the cost of the product such as analysing
competitor's price, list price, location of customer and many more. In context to TESCO, this
tool guides the firm in setting right pricing strategy in order to sustain in the market. The
company provides less costly products in relation to their competitors and enjoys large customer
base.
Place: This element of marketing mix is concerned with distribution of products in the right
place where it is easily accessible for the customers to buy the products. There are various
distribution channels such as Online store or retail stores that can be adopted by firm in order to
supply their products. This tools helps the marketer to adopt cost effective distribution channels
in order to increase competitive position in the market. In relation to TESCO, this element of
marketing mix assist the company to undertake efficient channels of distribution in order to
supply their products at the right place in the market(Jindal and et.al., 2020).
Promotion: This the activity undertaken by company in order to create an image of their
products in the mind of large customer base. This tool of marketing mix is very crucial as this
strategy influence the customers to buy products and services. In relation to TESCO, the firm
adopts numerous promotional strategies in order to publicize their products in the market. In
relation to this, the firm undertakes use of digital marketing platforms such as Facebook in order
to reach to target audience in a cost-effective manner.
Description of key elements of communication mix:
Communication mix is the tool adopted by company in order to interact with potential
customers of the target market. This tool provides various ways through which the company can
publicize their products in order to tap the customer base of selected market. In relation to
TESCO, the firm practices numerous ways of doing interaction with the customers by
undertaking advertisement program in newspaper and TV or with the help of digital marketing
platforms(Odvářková, A., 2018).
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There are five key communication channels which the firm must adopt in order to
promote goods and services are:
Advertising by TV, Radio,Press: This promotional technique is an old and costly technique used
by firms to publicize their products in the target market. In this, the company runs its
advertisement campaigns on TV or Radio channels or through posting an advertisement article in
newspapers. In relation to TESCO, the firm runs its eye catchy promotional campaigns with the
support of TV, radios and newspapers and allow it to grab attention of customers in target
market(DWINANDA, 2018).
Digital marketing:This type of promotion mix is significantly cheaper and effective than other
forms of promotional strategies. This involves usage of digital marketing platforms such as
Facebook, Instagram and many more in order to cover large customer base of the selected
market. In relation to TESCO, the firm promote their products through online shopping
applications and social media platforms which aids it to cover large market share in the cost
effective manner.
Public relations: The role of public relations is to promote the brand message of company to the
media and target audiences. It exaggerate the strategies and promotional campaigns of firm in
order to create positive view for products by taking help of newspapers and journalists. In
relation to TESCO, the company hires public relation personnels in order to transfer their
objective and mission to customers of target market. In relation to this, It helps the firm to create
positive brand image in the market.
Personal selling: This tool of promotion involves selling of goods by doing face to face contact
with the customers. In this, the company hires salesperson which inform and encourage
customers to buy the product. In relation to TESCO, the firm uses this tool to ensure covering of
every customer in the market and helps the firm to identify customer tastes and preferences in the
target market(Tuten, 2020).
Sales promotion: This technique of promotion is very useful in order to increase short term sales
by creating lightening deals in order to attract large amount of customers. In context to TESCO,
the firm attracts customer to buy their products by providing discount coupons, prizes and many
more.
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Influence of social media platforms on company's communication strategy:
Social media platforms provide golden opportunity for company in order to boost their
promotional strategies. The importance of key digital platforms are:
LinkedIn:
This is the famous digital platform used by several companies in order to boost their
brand awareness and recognition among customers present in the global market. Linked platform
guides the firm in making connections, leads generation and improving product awareness in the
market. In relation to this, this platform is the great way to enhance business relationships and
partnership with the customers. Moreover, it helps the firm to write and share promotional
content describing its mission and vision to potential customers. This digital platform is very
helpful for the company in increasing their professional networks by developing new base of
customers for products and services (Heggdeand Shainesh, 2018). Along with this, Linked-in is
the worlds largest network of professionals as it brings 227% more leads than Facebook and
twitter making this is a crucial tool when it comes to marketing. In relation to TESCO, this
digital tool helps the firm in developing professional connections with customers in the fastest
and in most efficient manner. Furthermore, It allows the organisation to know view points of
customers regarding their products and provides an opportunity to understand customer
feedbacks and make change in their products as per the feedback. (The Beginners Guide to
Linked-in Marketing)
Facebook:
This is the other important digital platform which helps the company to tap large number
of customers in the fastest way. The Facebook platform supports organisations to reach into wide
audiences than other famous digital platforms. This digital platform covers users of all
generations as it includes 62% of young users falling between 18 years old to 34 years old and
38% of people falling between 35 to 65+ that leads the firm to cover all customers irrespective of
age. Furthermore, It offers an opportunity for business entity to connect with both B2C and B2B
business which helps the firm to diversify its current customer base. Moreover, the Facebook
provides exciting ad formats, diverse targeting options and measuring capabilities in order to
support different marketing objectives of the company. In relation to TESCO, the company
practice promotional strategies by undertaking this digital platform into consideration. This
social media platform assist the company to interact with large number of audiences irrespective
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of age, caste and race. Moreover, It helps the firm to keep high level of control and transparency
of business actions while communicating with the target audiences. Furthermore, it provides an
opportunity for the company to drive large number to its website by posting in Facebook's add
options. (Top 10 Advantages of Facebook Marketing for Your Business)
Twitter:
This is the least used platform by business entity in order to drive their promotional
strategies. As compared to other platforms, Twitter also have direct messaging feature which
helps the company to build genuine connections ensuring that the conversations are worthy and
authentic. The usage of @ symbol in tweets encourage the engagement of potential customers in
the digital platform. In addition to this, the relatively short life of posts as compared to other
platforms provide an opportunity to the marketers to introduce varied mix of contents that can
entertain and educated twitter followers. Furthermore, this platform helps the firm to showcase
brand voice in the mind of potential customers by practising robust posting schedule. Moreover,
the influencing campaigns in this platform can yield higher return by attracting large base of
customers. In context to TESCO, the firm use this type of platform in order to target new range
of customers in the market. The company runs many influencing programs such as protection of
nature etc. which support the firm in yielding higher growth in the market place(Zahay, 2021).
Snap-chat:
This platform is becoming popular among young people as it allow to take quick photo
and send it to number of selected people. The business firms takes this platform as n opportunity
to conduct its promotional strategies in the cost efficient manner. This digital platform offers
tagging Geo-filters on the photo that provides good impression on the potential parties.
Increasing use of this platform helps the firm to increase their social media presence and guides
them to do business with the potential customers. In relation to this, it provides an advantage for
the company to increase brand awareness of the products. In relation to TESCO, the company
uses this platform as it allows the firm to share important updates and exclusive content to the
connections which can assist the company to make an good image about the company's products
and services(Yadav and Rahman, 2018).
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Effectiveness of social media content:
The use of social media content helps the firm to bring large amount of online traffic
consists of potential customers and business entities. The use of social media platforms helps the
company to attract attention of customers and build brand awareness by showing them the
features and quality of the product. In the digital era where more and more people are searching
online for the best product and services helps the business entity to leverage to this opportunity
by covering large number of market share and knowing their needs and wants. In addition to this,
the creative and authentic social media content helps the company to successfully tap in the new
unexplored market where the company can take an advantage to increase product market share
and growth. Furthermore, social media content creates a platform for tracking customer
comments, questions and complaints through which the company can reinvent new product
features in order to attract large number of customers. Along with this, social media content is
the most affordable ways through which the company can boost its sale and growth in the
market.
Conclusions
It is concluded from the above statements that marketing mix is an essential tool for
company in order to improve its product features and target new customers in the most
appropriate manner. In addition to this, It was concluded that the communication mix is the
proven tool that helps the firm to interact with large number of customers. It is further
concluded that social media platforms are the most cost efficient method to perform promotional
activities of the firm. It was also concluded that social media content is the best strategy to tap
into new market.
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References
Books and Journal:
Mintza and e.al., 2021. The right metrics for marketing-mix decisions. International Journal of
Research in Marketing, 38(1), pp.32-49.
Warrink, D., 2018. The marketing mix in a marketing 3.0 context. International Journal of
innovation and economic development, 4(4), pp.7-11.
Jindal and et.al., 2020. Marketing-mix response across Retail formats: The role of shopping trip
types. Journal of Marketing, 84(2), pp.114-132.
Odvářková, A., 2018. Návrh komunikačního mixu: Proposal of Communication Mix (Doctoral
dissertation, Brno University of Technology).
DWINANDA, J.B., 2018. Effectiveness of Marketing Communication Mix in the Community
Based Agrotourism. Studi Pustaka.
Tuten, T.L., 2020. Social media marketing. Sage.
Heggde, G. and Shainesh, G. eds., 2018. Social media marketing: Emerging concepts and
applications. Singpore: palgrave macmillan.
Zahay, D., 2021. Advancing research in digital and social media marketing. Journal of Marketing
Theory and Practice, 29(1), pp.125-139.
Yadav, M. and Rahman, Z., 2018. The influence of social media marketing activities on
customer loyalty: A study of e-commerce industry. Benchmarking: An International Journal.
Online:
The Beginners Guide to Linked-in Marketing.,2021.[Online]Available
through<https://blog.hubspot.com/blog/tabid/6307/bid/23454/the-ultimate-cheat-sheet-for-
mastering-linkedin.aspx/>
Top 10 Advantages of Facebook Marketing for Your Business.,2020.[Online]Available
through<https://www.searchenginejournal.com/facebook-marketing-advantages/229849/#close>
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