Impact of Digital Technology on Tesco's Marketing and Market Growth

This report provides a comprehensive analysis of Tesco's marketing strategies within the context of a rapidly evolving digital landscape. It begins with an introduction to the influence of digital technology on marketing, highlighting the importance of an online presence for brand awareness. The main body delves into Tesco's marketing activities, emphasizing the company's use of digital technologies such as social media and online platforms. The report explores key concepts like buyer-seller relationships, nature of demand, and market segmentation, while also applying Porter's Five Forces analysis to evaluate the competitive environment. The report covers market segmentation strategies, including geographic, demographic, psychographic, and behavioral bases. It examines Tesco's targeting and positioning strategies, including personal branding, to attract and retain customers. The report concludes with a reflection on the impact of digital technology on Tesco's marketing efforts and overall market growth, providing a valuable overview of Tesco's approach to digital marketing.

Marketing And
Markets In A Digital
World: 2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFLECTION...............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is influenced by digital technology in various ways. Now a days people spend
more time in their mobiles, laptops and tablets. They stay online at least 75% of day time to
increase their knowledge. It is very important for company to get connected to digital world.
They need to connected their brand online for creating awareness. Marketing can use various
channels for awareness such as social media, television, internet, public relations. An
organisation perform various activities and functions related to marketing which help them in
attracting large number of customers towards goods and services (Baker and Saren, 2016). The
report is based on Tesco which is British multinational groceries and general marketing retailer
and it is situated in United Kingdom. The main purpose of the assignment is to analyse the
influence by rapid development of digital technology in the company. Along with this,
understand the marketing and market which have been influenced growth and development of an
organisation.
MAIN BODY
Marketing is the business procedure which create and develop relationship in order to
satisfy their customers regarding products and services. This is required for firm is to analyse
whole market place while gaining attention of desired buyers. Marketing play an important role
in business which assist in performing various activities such as promoting, researching and
selling desired goods and services for target market. It is essential for use marketing method in
order to promote the business, brand and offering in the market place. This will help in
increasing sales and revenue of organisation effectively and efficiently. It maximize customer
connections through personalization and increase experience. It helps in saving time and cost of
company for doing digital marketing so this will enhancing income and revenue.
Tesco is third biggest retailer company in the world which is measured by gross income
and revenue. They are cover around seven countries across Asia and Europe and it is become
market leader of groceries in the UK (Spiekermann and et. al., 2015). Along with this, Tesco use
various digital technology which help them in gaining higher development and growth in the
market place. There are different methods which can be used by firm such as social media,
Facebook, YouTube, etc. in order to attract large number of customers towards company

products and services. Marketing is the process which influenced by rapid growth and
development to digital technology.
There are various key characteristics of Business Markets which are described as under:
 Buyers sellers relationship – It is required for Tesco is to develop new and innovative
products and services for attracting large number of customers. This will help in
developing relationship among buyers and sellers which enhancing goodwill of an
organisation in the market place. With the help of building strong relationship, company
can easily analyse their customers needs and demand so they can offer them required
goods (Canniford and Bajde, 2015).
 Nature of demand – It is determined as the amount of goods which consumers desires
and are capable for buying at given point in time. Tesco is selling their products through
digital marketing so they can easily identify nature of demand in better manner.
Porters Five Force Analysis:
It is strategic management tool which analyse industry and understand underlying levels
of profitability in given industry. Tesco Plc managers can use Porters five force in order to
evaluate how marketing influenced by fast growth and development to digital technology. Along
with this, it directly influence profitability and develop strategy in order enhancing Tesco
competitive advantages and long term profitability in this industry. Tesco is one of the leading
company in the retail sector. Recently, Tesco Plc has specify various ways for doing business in
providing best consumer services. The five forces of Tesco are described as follows:
 Threats of new entrants – Tesco is one of the leading company which sell variety of
goods and services among their customers. There are various competitors of Tesco such
as ALDI, ASDA, Sainsbury, Marks and Spencer, etc. which create issue while enter in
new market (Ryan, 2016). For this, Tesco used digital technology for attracting different
category of customers in order to gain huge income or profitability.
 Bargaining power of suppliers – Tesco has large number of suppliers and there is a
minimum and no supplier switching cost for supermarket chain. Most of the companies in
retail sector purchase their raw material from numerous of suppliers. They are developing
efficient supply chain with multiple suppliers. It is required for company is to attract
large number of suppliers which can help them in taking good position in the market

place. It will assist them in analysing customers needs and wants as per this they are offer
them required goods and services.
 Bargaining power of buyers – In this, buyers can easily switch from one brand to
another which shows their bargaining power where they are buying any good from any
company. It can be analysed that customers are attract towards low prices with online
shopping availability where they can easily compare each product with another and thus
selected (Sexton, 2015). With the help of online marketing, Tesco can provide variety of
goods on online where customers can select their desired commodity.
 Threats of substitute products and services – Tesco sell a wide range of goods and
services such as clothing, technology, health, entertainment and home appliances. The
range of unique products and services sold by Tesco is highly comprehensive. There is no
threat of substitute for Tesco company because they have variety of goods as well as
substitute of majority of such products. It will assist them in promoting new and
innovative products in the large market place which promote via social media and other
online methods.
 Existing competitors – There are various rivals which are create major issues and
problems for Tesco company so they does not smoothly run business operations and its
functions. Tesco major competitors are ASDA, ALDI and Sainsbury, etc. that are develop
problem in the market place. For gaining attention of large number of customers. They
are required to use online method in order to promoting their goods and services.
On the basis of this method, Tesco can easily analyse their target market which help them
in gaining attention of customers by using new products and services.
Along with this, there is set of macro and micro environment factor which directly affect
marketing decisions of Tesco marketing management in direct and indirect manner. Market
segmentation is based on true concept where company is target large number of customers by
divide them into different segmentation (Lamberton and Stephen, 2016). Market segmentation is
divided population members into small groups as per their needs, wants and demand which
develop innovative goods effective goods and services in order to fulfil their requirements.
Segmentation – Market segmentation is the procedure which is divided whole market of
desired customers into small groups and various segments that are based on characteristics., age,
gender and religion. Tesco is segmented their customers on the basis of geographic,

demographic, psychographic and behavioural bases. The company target adults, youngsters and
old age people by providing them desired goods and services in order to satisfy their demand in
proper manner. They are target people who willing to purchase required goods and services of
specific company. Along with this, Tesco gain attention of different type of customers who have
desire to purchase specific goods and services. With the help of segmentation, Tesco can easily
attract their customers towards potential commodities. They are target different type of buyers
through social media, Facebook, YouTube and other technology. This will assist them in gaining
accurate response and feedback of each customers regarding specific goods and facilities. If
company use digital technology so they can easily divide their customers on the basis of age,
gender, characteristics and so more (Strauss and Frost, 2016). Technology use help in supporting
specific, customer driven motive and enable to provide most appropriate kind of engagement to
target segment at the right points in the procedure. This should help company in serving existing
and current development needs in proper manner. Marketers of Tesco firm adopt latest methods
and tools which can be used for acquiring rapid development and growth level. It helps in
segmented large number of customers whether they are domestic and international.
Positioning – It refers to that place where brand occupies in the mind of customers and it
is different from competitors products and services. In order to position the brand or product, an
organisation should ensure that their product features and characteristics must be different from
other rivals. Positioning is one of the powerful marketing concepts which can be used by Tesco
for make good position in the large market place. Along with this, if company sells their goods
and services among desired customers in order to acquire high growth and development.
Positioning is considered as effective marketing strategy which main aim is to develop a brand
occupy a different position, related to competing the brands and make good image in the mind of
customers. Tesco adopt this strategy which emphasising unique features of their brand. This will
create appropriate image by using social media or advertisement. Once brand or product is
positioned in the market, it is complex to reposition it without destructing their credibility in
better manner (Sundström and Radon, 2015). It is directly influenced by rapid growth and
development level so that this will assist in taking desired position effectively. With the help of
digital technology, company can easily analyse whole market where they positioned their current
brand for attracting large number of customers from different segments. Tesco use digital

technology which help them in examining current buyers needs and demand via analysing their
response regarding products.
Targetting – A target market is the large group of customers within an organisation
where business main aim is to market their efforts and resources. Tesco target customers on the
basis of age, income, location, lifestyle and so more that can be helpful in dividing buyers. For
target buyers, Tesco required to develop marketing plans and strategies for target them within
different segments. They are target different type of customers such as old age, young or adults
and children who have desire to purchase company goods and services. Along with this, Tesco
use digital technology for analysing their target customers who are willing to purchase their
company goods and services (Straker, Wrigley and Rosemann, 2015). Thus, targetting is
concerned with measuring and evaluating each segment for attracting desired customers who are
purchase their goods and facilities. There are various methods which can be used by Tesco firm
for target customers such as social media, Facebook, YouTube and Instagram where they are
post new products images and full description for the knowledge of buyers.
On the basis of above description, it can be analysed that Tesco use segmentation method
for dividing customers into small groups and target them on the basis of their age, gender,
lifestyle and income status. Along with this, Tesco target different type of buyers such as
children, adults and old age people. In this, they are offer comfortable clothes to old age people
which satisfy their demand and fashion based clothes distribute among young individuals. This
help them in analysing each and every customer choice and preferences regarding firm goods
and services in effective way.
Personal branding – It is an essential ongoing procedure which has been establishing a
prescribed image and impression in the mind of single person, group and organisation. It
involves with application and usage of one's name to different products and services. It is used
for creating personal brand good image in the large market place with the uses of digital
technology (Taiminen and Karjaluoto, 2015). Personal branding can be evaluating with the help
of such elements which are assist in enhancing growth and development level of an organisation
that are described as under:
 Brand Image – In current time period, brand image is quite impressionable and it is
assist in increasing their personally which meet with social standards of the company.
This brand image is simply impression or an imprint of brand developed or formulated in

given time period. Brand image is deciding factor which determine product sales. Tesco
required to make good image which assist them in developing good beliefs and view
regarding specific product. Recently, Tesco is successful supermarket chain of United
Kingdom which currently regulate in around 11 different countries and attract large
number of buyers. By using different digital technology, company can gain attention of
customers towards goods and services in proper manner. Along with this, it will assist in
building good and effective image among potential buyers regarding firm new
commodities (Kerr and et. al., 2015). It can be helpful in increasing organisation growth
and development level in the huge market place.
 Target audience – Tesco is one of the leading supermarket chain which is situated in
United Kingdom and there are variety of goods and services that are offer to their buyers.
Tesco major target audience involves adults, children and old age people. In addition to
this, there are different methods for target large audience towards firm products and
facilities. They are use social media method which assist in increasing growth and
development pace of an organisation. There are large number of people who have access
to the internet are growing at rapid manner, the members on such platforms are also gain
development at high level. Respective firm are use social media for conducting online
marketing campaign. Marketers are use different other tools in order to attract domestic
as well as international customers towards company desired products and services.
 Medium/platform – It is required for company is to select medium or platform in order
to gain attention of large number of buyers effectively. Tesco is using different methods
for promoting firm products and services among customers. In this, an organisation use
different tools and methods which can help in gaining attention of large number of
customers such as Social media, Facebook, YouTube and so more. They are post their
goods and services by sharing of videos internet through YouTube, Viddler, Vimeo and
Flickr (Baron, 2015). On the other hand, there are various other social networking sites
which includes Facebook, LinkedIn, My space and Ning. Along with this, sometime
Tesco use social objectives that can be helpful in promoting business operations and
functions which includes distribute business cards and logos of company. This will assist
in enhancing rapid growth and development of business operations in all over the world.

 Safety – In an organisation, manager required to make focus on safety and security of
business operations and functions. They need to deliver products and goods to the final
customers in order to fulfil their requirements in better manner. Tesco main role is to
distribute required products and commodities among desired buyers effectively. For
using digital technology, respective firm can easily secure their goods while deliver to
their customers (Rao, 2015). By conducting personal branding, an organisation need to
concentrate on delivering demanding products and facilities among potential buyers. This
will help them in increasing loyalty among users regarding firm unique and new type of
commodities.
CONCLUSION
From the above described report, it can be analysed that marketing is the business process
which create and create relationship in order to fulfil their customers needs and demand
regarding products and services. In this, Marketing play an important role in business which
assist in performing various activities such as promoting, researching and selling desired goods
and services for target market. Along with this, Tesco use various digital technology which help
them in gaining higher development and growth in the market place. There are different methods
which can be used by firm such as social media, Facebook, YouTube, etc. in order to attract
large number of customers towards company products and services. Tesco Plc managers can use
Porters five force in order to evaluate how marketing influenced by fast growth and development
to digital technology. Recently, Tesco Plc has specify various ways for doing business in
providing best consumer services. Along with this, there is set of macro and micro environment
factor which directly affect marketing decisions of Tesco marketing management in direct and
indirect manner. The company target adults, youngsters and old age people by providing them
desired goods and services in order to satisfy their demand in proper manner. Tesco adopt this
strategy which emphasising unique features of their brand. This will create appropriate image by
using social media or advertisement. In current time period, brand image is quite impressionable
and it is assist in increasing their personally which meet with social standards of the company.
There are large number of people who have access to the internet are growing at rapid manner,
the members on such platforms are also gain development at high level.
In future, respective company can use key trends of digital technology which directly
affect on marketing functions and activities in proper manner. They are adopting artificial

intelligence method which can assist in analysing consumer behaviour and search pattern that
can use data from social media platform and post different blogs. It will help businesses to
understand how customers and users find their desired goods and services. On the other hand,
chatbots can be used for sending relevant messages to their clients in order to promote their
potential products and facilities. Tesco also adopt this method for interacting with their
customers regarding new commodities which are offered by them. Such type of methods are
helpful in future time period for the firm.
In addition to this, voice search is another method which can used by company in future
time period. It is that tool which allow users by speaking on mobile phone and computers. These
are such methods and tools that can be used for making interaction with their buyers regarding
different goods and services.
REFLECTION
On the basis of mentioned report, I learnt various things which are helpful in increasing
my knowledge and understanding effectively. It can be analysed that I develop report on how
marketers and markets influenced by rapid development and growth level. This can be evaluated
that firstly I am able to analyse major key characteristics of business markets which involves
describe relationship with buyers and sellers and examine nature of demand in proper manner. I
analysed that, by using porters five force model company can easily identify its strength and
weaknesses so that it will assist in gaining higher growth and development. I can used this model
for understanding and evaluating such forces which shape the major competition within an
organisation. It is helpful in aligning specific strategy which suits in the competitive environment
and it will help in making improvement for desired profits or income. Along with this, it directly
influence profitability and develop strategy in order enhancing Tesco competitive advantages
and long term profitability in this industry.
I learnt that company require to segment their customers into different groups where they
are easily reach with desired users and satisfying their specific needs and wants in better manner.
It can be seen that they are capable to use their corporate resources in more effectively and
develop suitable strategic marketing decisions. During this module, I am capable for identifying
target customers as well as market place where company can positioned their goods and services.
It will help me in analysing whole market area where organisation target different income level,
lifestyle and categorised people. In this, I learnt that positioning of brand is very important for

gaining higher growth and development level. With the help of this, I can understand and
evaluate where firm required to place their desired goods and services. I am able to identify
brand image in the large market area in which firm develop good image of products in the mind
of customers. In addition to this, I need to develop my personal skills and knowledge by using
strategies or policies effectively. This is required for me is to analyse whole market place while
gaining attention of desired buyers. While conducting this report, I will face various issues and
problems regarding analysing whole market place where company required to position their new
goods and services.

REFERENCES
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