Marketing Fundamentals: Analysis of Tesco's Strategies and Practices

This report provides a comprehensive analysis of marketing fundamentals, using Tesco, a leading UK retailer, as a case study. It begins with an introduction to marketing fundamentals and their importance for organizational success. The report then delves into the analysis and evolution of these fundamentals, exploring the stages of marketing from product development to decline, and the role of the marketing environment. It examines the marketing mix (product, place, promotion, price, people, process, physical evidence), segmentation, targeting, and positioning strategies employed by Tesco. The report also discusses the internal and external factors influencing Tesco's marketing strategies. The conclusion summarizes the key findings, highlighting the significance of marketing fundamentals in Tesco's success and the importance of adapting to the evolving market landscape. The report uses academic sources to support its analysis.

MARKETING FUNDAMENTALS

Table of Contents
MARKETING FUNDAMENTALS................................................................................................1
INTRODUCTION...........................................................................................................................3
ANALYSIS AND EVOLUTION OF MARKETING FUNDAMENTALS...................................3
Stages of marketing.....................................................................................................................3
Role of marketing environment...................................................................................................4
Marketing mix.............................................................................................................................6
Segmentation, targeting and positioning.....................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing fundamentals is defined as strategies that are adopted and are the initial ways for any
organisation in order to take up the task of marketing. The marketing fundamentals contribute for
an effective promotion of the product (Baines and et.al, 2017). In order to cope up with the
confusion that are related with the uncontrollable measures of the government policies a good
marketing executive will have to be initiated in the company in order to tackle with the works of
marketing. The entire report deals with the marketing fundamentals and the factors involved. The
company that is adopted in this regard is Tesco. Tesco is one of the largest retailer chains in the
United Kingdom. It is known for its product quality and the brand it maintains by providing all
the groceries that a required for the domestic use.
ANALYSIS AND EVOLUTION OF MARKETING FUNDAMENTALS
In the product development cycle marketing plays a major role from concept decision till the
manufacturing and distribution. The companies that are less strategic are said to be having a
limited marketing role in their organisation (Bocigas Solar and et.al, 2020). Marketing is not just
related to bringing the product only when it is ready into the market but the innovations and
demands that are related with marketing or to be initialised as a first step.
Stages of marketing
Product development:
The marketing department in any organisation works along with the research and development
department in the initial stages that will contribute to process determine and collect the data
regarding what kind of products that the customers demand. This will help in brain the greatest
results and the fullest development. This stood as a determining factor in fulfilling the consumer
needs and how the new market need will be fulfilled (Krishnamoorthy and et.al, 2020). This with
regards to Tesco is such that the Tesco company employees identify the customer need for a
particular product and focuses upon developing the product and based on that product
development marketing is put forth. Every department in the organisation is allotted with a
manager who is in charge of dealing with the customers. Based on the statistical data about
which product is more likely to be sold, the company focuses upon manufacturing the product in
the numerous counts.
Introduction and roll out:

Soon after the product is developed, it will go through a life cycle where the product will be
introduced to its consumers. Whether the market is small or big the initial sales will probably be
low (Saura and et.al, 2017). This phase of introduction of the particular product is essential to
demonstrate the growth of the product which will in return increase the sales of the company.
Growth stage:
The second stage in the marketing process where the product life cycle is determined and the
marketing campaign character changes significantly. In this particular stage there is likely to
have a heavy competition where the promotional strategies will have to be maximized. Strategies
like conducting marketing service in order to know the customer demand and the features that
are to be improved in the product quality will be known.
Maturity stage:
Once the product has developed with all the regards the next stage will be the maturity stage
where the sales with regards to the particular project will reach a level of maturity. In this stage
instead of focusing more on the new customer demand the organisational management will focus
more upon the existing customers and try to maintain pace with them. This is the stage where a
brand awareness is already maintained and the advertising budgets have seen a reduction.
Decline stage:
This stage refers to the end of the product life cycle (Ibrahim and Harrison, 2020). In this
particular stage the product loses its glory because there are many substitutes that are developed
with regards to this particular product. There will be an immense price drop where the sales will
be falling apart and there will be a decline in the market share. In this particular stage the
organisation will have to focus upon bringing a substitute for the product or decline the entire
product life cycle.
Role of marketing environment
The various internal and external factors that surround a business on a daily basis is known as
marketing environment. The marketing environment influences the marketing strategies and the
operations of the organisation. The marketing environment can be divided based on the internal
micro and macro environmental factors within the management control.
Importance of marketing environment in a company:
Essential for planning:

The organisation will first have to understand the importance of marketing in order to study the
environment absolutely which helps in planning of the business operations. The business
operations plan will include the nature and features of the products and the services that the
company is offering (Camilleri, 2018). The plotting will include different promotional strategies
that are acquired by the company in order to carry on and cope up with the marketing
environment.
Understanding customers:
Customer understanding it plays a vital role in the company Tesco full stops that is course
marketing environment is such that the existing as well as prospective customers are given more
importance. The factors that will impact marketing environment in the company include political
influences advancements in real names of technology increase in a market share competitors
brand and change in government rules. There is a particular tractor that the companies Rises up
on the tastes and preferences of the customers are prioritised. Marketing environment will help to
bring back the customers that developed the negative impression of the company.
Tap new trends:
The modern is there is such that the Dynamics keep changing and developing at a very fast pace.
There is a definite competition between the domestic and international brand that for the
customers of for the things that are of good quality and trendy in the market. It is important to
know the brand and tab to embrace amidst the changing dynamics.
Keeping a check on threat:
Tesco company gives importance to its marketing environment where the company is able to
keep a check on all the positive and negative impacts of the business operations. the growth
trajectory of Tesco company is determined by the strategies that it adopts in order to minimise
the threats of substituting.
Understand the competition:
Tesco gives importance to the marketing environment which helps the company to build various
business strategies. The company decides on nature and unique attributes that offers a wide range
of competitive advantage. The management box on the channel of distribution where there are
many others planning and marketing strategies in order to bring out a potent mix for all the

marketing platforms such as the television, radio, print, Social Media, Outdoor hoarding, digital
marketing and so on.
Marketing mix
Tesco initially started as a small market where the sale started increasing with the service that is
offered by the company. The marketing mix of Tesco is as follows:
Product mix:
The company provides products of different categories starting from food coma clothing,
electronics, financial services and many goods. Because of the popularity that the company has
retained its management decided to expand its trade on the online marketing platform.
Place mix:
The headquarters of Tesco is in Chestnut, Hertfordshire England. there are two channels of
distribution for this company online and offline. The online store operates in 6 different kinds.
Many customers are not likely to shop in So many store that is core is operating there for the
company manage to execute online forum.
Promotion mix:
Advertisement and promotional campaigns are designed in such a way that will attract customers
with the offers all year round. online purchases are considered to be cheaper than offline ones.
the revenue generated through online purchase will be small when compared to the offline
purchases.
Physical evidence:
Tesco will not overly elaborate its management like all other stores. This is because there is no
point that Tesco finds in spending unnecessary amount of money. The store is maintained in a
hygienic manner that it attracts more customers and market with all products with well
categorised and easy to find approaches.
People mix:
There an excellent sales assistance in the management who are responsible for its success. Tesco
utilizes programs such as colleague privilege card, save as you earn and buy as you earn.
Process mix:
Process mix of Tesco mainly focuses on keeping its customers happy through the easy invoicing
strategy that is an aquarium mint of product in the stores both offline and online (Thabit and
Raewf, 2018).

Segmentation, targeting and positioning
Segmentation is as follows:
Geographic segmentation:
In the aspect of Geographic segmentation, the company focuses upon the region, density, age
and gender of all the people in the place that is operating.
Demographic segmentation:
In demographic segmentation the company focuses upon income, occupation, education social
status and family size.
Physiographic segmentation:
The company prioritises Lifestyle personality and behavioural patterns.
Targeting of the company is to extend the entire management all over United Kingdom and 13
other kingdoms. The main target of the company are the lower and middle class income category
students employees professionals high school technical bachelors working class skilled working
class and many other. The positioning of TESCO includes the different types they are
Functional positioning:
The functional positioning includes increased range and quality of functionalities and the
products that are being served by the company.
Symbolic positioning:
In this subject the company aims at the values and aspirations of the customers in the price
positioning that is core team values about the product prices and the cost effective measures that
are to be implemented.
CONCLUSION
Entire report concludes up explaining the marketing fundamentals of an organisation. The report
brings to the readers notice that the marketing fundamentals are an essential part of every
organisation where the marketing rituals are to be employed and to be performed. The different
marketing fundamentals that are related to the company Tesco are being explained in this report.
The marketing mix, segmentation targeting and positioning along with the marketing

environment are put forth which will bring forth the importance of marketing fundamentals that
are being employed in the company Tesco.

REFERENCES
Books and journals
Baines and et.al, 2017. Fundamentals of marketing. Oxford University Press.
Bocigas Solar and et.al, 2020. Fundamentos de Marketing/Fundamentals of Marketing.
Krishnamoorthy and et.al, 2020. Marketing 4.0: Impacts of Technological Developments on
Marketing Activities. Solid State Technology, pp.2362-2367.
Saura and et.al, 2017. Understanding the digital marketing environment with KPIs and web
analytics. Future Internet. 9(4). p.76.
Ibrahim and Harrison, 2020. The impact of internal, external, and competitor factors on
marketing strategy performance. Journal of Strategic Marketing. 28(7). pp.639-658.
Camilleri, 2018. Market segmentation, targeting and positioning. In Travel marketing, tourism
economics and the airline product (pp. 69-83). Springer, Cham.
Thabit and Raewf, 2018. The evaluation of marketing mix elements: A case study. International
Journal of Social Sciences & Educational Studies. 4(4).
Online
Marketing fundamentals with respect to TESCO: [ONLINE] Available through:
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