Role of Marketing and Interdepartmental Relations in Tesco

This report provides a detailed analysis of Tesco's marketing strategies, encompassing the concept of marketing, marketing processes, and a situational analysis using SWOT. It delves into the development of a marketing plan, exploring designing marketing tactics with an emphasis on the extended marketing mix (7Ps) and its application in achieving business objectives. The report also outlines the roles and responsibilities of a marketing manager within the context of Tesco, differentiating between B2B and B2C marketing approaches. Furthermore, it includes sections on implementation, control, and evaluation phases of the marketing plan to ensure its effectiveness and alignment with organizational goals. The report incorporates analyses of external factors influencing Tesco's business, such as customers, suppliers, competitors, and special interest groups, providing a comprehensive understanding of the company's marketing environment.

Task 1: Brief Paper
Title: Role of marketing and significance of interrelationship
between functional departments of Tesco
Prepared for : Marketing Manager, Tesco.
Prepared by :xxx xxx xxxx,
Senior Marketing Executive, Tesco.

Table of Contents
Introduction...........................................................................................................................................3
1. Concept of marketing: .................................................................................................................3
2. Marketing processes:....................................................................................................................5
Situational Analysis:..........................................................................................................................7
MARKETING PLAN:............................................................................................................................7
Designing Marketing Tactics:............................................................................................................9
3. Roles and responsibilities of marketing manager in context of Tesco:......................................11
Conclusion .........................................................................................................................................13
Figure source: Market Segmentation Study Guide..............................................................................22
Competitor Analysis: ......................................................................................................................24
Customer Analysis..........................................................................................................................24
Testing Research.............................................................................................................................24
Customer Feedback........................................................................................................................24
Cost Analysis...................................................................................................................................24
REFERENCES.........................................................................................................................................27

Introduction
Marketing can be defined as a process where buying and selling of goods and services
takes place. In this ideas are also planned and executed so as to give products and services
and satisfy the customers and organisational goals. In this, variety of services are conducted
like making, communicating, delivering and exchanging offers that can create value for
company. It is considered very helpful for company as it helps in identifying customer's
needs and demands. Once, company gets all this information then they can produce goods as
per their choices. In short, marketing helps in discovering, analysing and gratifying
customer's demands (Berthon, 2012). The company which is referred here is Tesco. It is a
British multinational grocery and general merchandise retailer headquartered in UK . It is the
third largest retailer in the world if measured in terms of profits. This report will discuss
various prospects of marketing like its principles, role of marketing. Interrelationship
between various functions of marketing, use of marketing mix elements in achieving
company's objective and a marketing plan for Tesco will also be designed in this report.
1. Concept of marketing:
Marketing can be considered as a very important activity of company which is
associated with buying and selling process of product or services. Various activities that are
included in marketing are like advertising, selling and delivering products. Company has a
separate marketing department in a company and the staff which are working in that company
always tries to gather attention of target customers by using various tactics.
Nature of Marketing:
1. It is considered as a management function where management fulfils responsibilities
of planning and decision making regarding marketing activities.
2. It plays an important role in identifying needs of customer and it can be conducted
through market research.
3. Marketing team of company always tries to satisfy the customers by providing them
products as per their choices (Day, 2011).

4. Profit making is also one of the objective of marketing so prices of goods should
always cover its costs.
Development of marketing concept:
It includes strategies that are implemented by company to satisfy customer's needs
and maximising profits of company by beating up all the competitors in market. There are
basically five marketing concepts that are adopted by organisation which are:-
 Production concept:- The basic idea behind this concept is that customers will prefer
only the products that are easily available in market and is highly affordable (De
Vries, Gensler and Leeflang, 2012). Companies who are following this concept are
actually loosing out their sight of the real objective and focusing more on these kinds
of problems.
 Product concept:- According to this concept, people will prefer these products that
are good in quality and performance and also have some good features. The
marketing strategies that are prepared are focusing continuously on product
improvement.
 Sales concept:- Through this concept company gets to know that customers will not
prefer their goods unless and until large scale selling and promotional activities are
conducted. Here main focus is on creating sales transactions and nothing else.
 Marketing concept:- Under this concept, company tries to identify the needs and
demand of customers and then delivering them the same so as to provide satisfaction.
In this, customers are given first importance (Grönroos and Ravald, 2011).
 Societal concept:- The idea used behind this concept is that company should make
such marketing strategies that is able to deliver value to customers in such a way that
both customer's and society's well being is well maintained.
Marketing activities that are conducted in an organisation are very much impacted
from the external environment. The four main external factors that affects Tesco's business
are:-
1. CUSTOMERS -Satisfaction of customers is one of the major aim of company. If
company gives good customer services or after sales services then business can
become successful (Grönroos, 2011).

2. SUPPLIERS – Every company needs a reliable supplier and financial sources so as to
fund activities and growth.
3. COMPETITORS – There are many company's who are selling goods in market and
they are regarded as market competition. So, how these company's are able to
maintain their sales should be taken into account always.
4. SPECIAL INTEREST GROUPS – Groups which are involved are like trade unions,
church groups etc. The activities conducted by these groups sometimes creates
problems in companies.
2. Marketing processes:
The strategic marketing process used by Tesco to reach its customers are:-
1. Planning phase – In this company checks their inner strengths and weaknesses which
will help in performing marketing activities in the organisation. Preparing a marketing
plan is not and easy task, lots of research is done by companies to reach at final
result. After all this also it is not confirm that plan implemented will be successful or
not.
2. Implementation phase – in this phase, plan which is prepared by company after
conducting all the research work is finally implemented. In this, it is checked that
whether all the work is being applied properly or not (Hsu, 2011).
3. Evaluation Phase:- All the activities that are being implemented in company is to be
monitored to know that it will be successful in market or not.
 Situational Analysis:
SWOT ANALYSIS of Tesco is as follows:-
STRENGTHS WEAKNESS
 They are having their own private label
brands through which they are gaining
high brand equity in market.
 They are not having much stores in the
emerging countries.
 They have faced lots of controversies

 They have a primary listing in the
London stock exchange.
 They are having diversified businesses
like clothing , retailing of books,
electronics, furniture etc.
 They have employed more than
5,20,000 employees worldwide.
 They are having innovative marketing
strategies and advertising strategies.
which have created few issues.
 Sometimes there is absence of important
skills in employees which acts as a
weakness for the company.
OPPORTUNITY THREATS
 They can enter into new markets and
expand their areas of operations.
 More use of digital technologies for
conducting the work in the company.
 They can easily enter health and beauty
sector as well.
 Tough competition from other brands as
well.
 lots of substitutes are available in market
if Tesco is not available
 New brands are continuously entering into
markets.
Developing Marketing Strategy:
A marketing strategy are those effective tools that helps in analysing the market
situation and clearly determining which products to offer to the customers. According to
Tesco, they have decided to provide specific core European range of environmentally
friendly products which will be exported throughout the Europe and they will be providing
other range to the local customers as well.
The marketing strategy that is adopted by Tesco to attract customers are :-
 They are organising marketing campaigns with the help of TV and radio advertising,
advertising in newspapers etc.

 Creates jobs for people through which they try to come into limelight.
 Billboard campaigning
 Introducing club cards to the known customers so that become loyal to the customers .
Tesco is also applying Ansoff matrix strategy through which they can can develop
themselves in the market of UK.
Designing Marketing Tactics:
Role of extended marketing mix in achieving business objectives:
Extended marketing mix or 7P's is a tool which are used by the company to influence
the demand of the product. The tools are influence and manipulated by the company for
financial gains. The components of the 7P's are interrelated and change on the one element
determines the other. The significance of the people, physical environment and process have
been understood therefore added to the components of the marketing mix.
Product
Product is the company's offering to the market. It is the output produced by the
company after a series of tasks and activities. The market research identifies and the
requirement and output tries to fulfil the same. Product is crucial element as it helps in
increasing the sales volume of the company which is one of the objectives of this
multinational corporations
Price
It is the amount which the customer pays for the product. The price of a product is
crucial and it is determined after careful consideration of various factors such as price set by
competitor, profit margin and cost of production.
Place
It refers to the place where the operations are carried out. Tesco possess a strong
distribution network in all the major urban and cities. However the rural network of the
company is always criticised improving that will help in enhancing the sales and fulfilment of
objectives.
Promotions

Promoting the product is essential for the company as it increases the brand awareness
and profitability of the company. The company have utilised all the major platforms of
promoting of product such as advertisement, sponsorship and promotional events.
People
People constitute customers, employees, social interactions and relationship with
others. It is necessary for the company to maintain cordial relationship with employees so
that they perform with full potential and customer satisfaction. The efforts every company is
diverted to get the best out of the employees and retaining customers. Both the elements are
vital in achieving organisational objectives.
Physical environment
It refers to sign, symbols, facilities and equipment of the company. All the factors help in
building perception of the company. The signage and symbol of the Tesco are well
recognised all over the globe. The company caters the premium segment and budget segment
therefore its evidences are believed to be better than other retailing stores.
Process
This element of the marketing mix undertakes the process, operational efficiency and
standardisation of the product. Tesco brings products for their customers from all over the
world. This helps in increasing their efficiency and position in market.
Implementation and Control:
This is the step in which the marketing plan prepared by the company is taken into
action . In this monitoring and evaluating the results of the marketing plan is also analysed.
While checking the implementation , Tesco will have to check that they are working as per
goals and objectives or not and the whole project is under the budget set or not. This is the
responsibility of the marketing manager to make sure that all these changes are applied
effectively.
While checking the control, Tesco will monitor that :
 Revenues – Tesco will notice the revenues the are earning monthly as well as
annually after applying the marketing mix.

 Expenses - They will also check that how much they have spent or will be spending
in implementing this project.
 feedback – Client's feedback is very important as this will help them in klnowing
whether they are performing good or not.
 Improvements - after taking feedback , it will be analysed that where improvements
are required to be done.
3. Roles and responsibilities of marketing manager in context of Tesco:
Role of marketing in B2B and B2C context is given below:-
Source B2B Marketing B2C Marketing
Decision making
process
Very complex and high risk Easy and low risk
Focus Lead generation and relationship
management
Brand building
Orientation Product oriented Relationship oriented
Geographical area Limited area It is spread across
Goals Increase sales and volume of
products sold maintaining best
quality
Aims to increase brand recal

MARKETING PLAN:
A MARKETING PLAN can be defined as a plan which consists of details of activities that
are to be conducted by company in the hole year. It is a part of business plan of company and
is designed by studying the marketing strategies of company properly. It tells its prospective
customers and existing customers the current position of company and where they want to
reach in few years. The main aim behind preparing the marketing plan is to provide a road
map to those people who are working in an organization. It contains past data and present
data of company.
Marketing plan is valued very much in an organization because each and activity in an
organization is conducted as per that. Marketing plan of Tesco is as follows:-
 Introduction of company – Tesco company is among the top most multinational
Retailing brand in the whole world. It is basically a British multinational company
hardhearted in UK. This company aims at providing good quality products to its
customers and that is why they are being loved by consumers so much. That is why
they are the market leaders in UK. Their products are of excellent quality and are
being supplied all over. They are working in this sector since 1919 and are now
planning to bring modifications in their existing products and relaunching it in
market.
 Vision and Mission statement- Main vision of company is always related with
making plans and procedures that will be implemented in an organization to expand
their business activities in different parts of the world.
Mission is mainly prepared ion order to gain competitive advantage in market. This
will help them in achieving higher positions from rivalry businesses. In case of Tesco,
they are already market leaders so they don't fear of loosing their customer base
much.
 Target market- Company is maintaining good relations with big manufacturing units
and retailing companies so that they help in producing products or gathering required
resources and supplying it all over. This is very important for the company to
maintain its high profits.
 Marketing Budget:-

Particular
(Marketing
Expenditure)
1st year 2nd year 3rd year
Advertisement 9000 7000 6000
sales promotion 5000 6000 3000
Direct marketing 5500 12000 14000
Total 20500 26000 23000
 Monitoring and controlling:- here, all the plans that are executed are evaluated and
monitored so as to know that how is the product performing in market. It is very
important for the company to know the customer's preferences as well.

4. Marketing influences and significance of interrelationship between functional
departments of Tesco:
There are several type of functions that are performed in Tesco. Marketing is one of
the most important function amongst them. They are the ones who directly deals with
customers and helps in creating good customer value of company in market (Day, 2011).
Inside marketing department, five different types of marketing functions are included, they
are:-
 Corporate Marketing
 Strategic Marketing
 Product Marketing
 Field Marketing
 Product Management
5. How marketing influences and interrelates with other functional departments:
Interrelationship of marketing functions with other functions of Tesco are:-
Functions Marketing
Human resource Marketing helps HR department in searching talented
candidates whose is the right candidate for the profile
available in Tesco. HR department is able to conduct all
the activities of recruitment with the help of marketing
team only. Marketing team prepares plans as to how
candidates should be informed about the recruiting
process conducted in company (De Vries, Gensler and
Leeflang, 2012).
Finance Function When a marketing plan is made, it includes financial
information of both new and existing products of the
company. These plans help the company taking the
investment decision. These financial inputs provided by
marketing is very helpful for the company.