LCBB4004 - Marketing Fundamentals: STP & Marketing Mix at Tesco

This report provides an analysis of Tesco's marketing strategies, focusing on the core principles of Segmentation, Targeting, and Positioning (STP), and the marketing mix. It begins by defining marketing and its importance in promoting products and services to a target audience, highlighting Tesco as a case study. The report delves into the STP process, explaining how it aids in understanding market segments, target audiences, and competitive positioning. It details the segmentation process, including demographic, psychographic, geographic, and behavioral factors specific to Tesco. The report further discusses targeting strategies, emphasizing size, profitability, and ease of reachability. Finally, it examines positioning strategies, including functional, symbolic, and experiential positioning. The report also explores the marketing mix elements—product, price, place, promotion, people, process, and physical evidence—and how Tesco utilizes these to enhance brand awareness and market share. The conclusion underscores the importance of STP analysis and marketing mix in achieving competitive advantage and organizational growth.

Marketing
Fundamental

Table of Contents
INTRODUCTION................................................................................................................................3
MAINBODY........................................................................................................................................3
Understanding and discussing the process of Segmentation, Targeting and Positioning................3
Determining the overall marking mix strategies..............................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
Marketing refers to various aspects that are utilized by an organization in order to effectively
promote its products and service to it target audience in an optimal manner. The concept of
marketing allow a business to ensure that its customers are aware of their offerings relative to
products and service in order to attract large number of customer base. In addition to this, marking
consists of aspects such as marking mix which is an essential tool for an organisation when
developing its marking strategy (Homburg, Theel and Hohenberg., 2020). Moreover, effective
marking functions allow a business to gain competitive advantage in the market through enhanced
brand awareness. For the following report TESCO has been taken into consideration which is a
British multinational groceries and general merchandise retailer headquartered in Welwyn Garden
City, England. The following report will focus of the markets segmentation, target audience along
with positioning of the chosen organization. Furthermore, it will highlight and discusses marking
mix strategies of the organization in an effective manner.
MAINBODY
Understanding and discussing the process of Segmentation, Targeting and Positioning
Market Segmentation, Targeting and Positioning.

The market Segmentation, Targeting and Positioning refers tom a three step process that
allows an organization to develop specific and actionable marking strategies. The primary
functioning of STP is to effectively understand the overall segment of the market that the
organization want in function in along with its target audience. In addition to this, it enables an
organization to evaluate its particular position within the market relive to its competitors. Moreover,
STP allows a business to evaluate its marketing broader into smaller sections which makes it easier
to develop specific approaches in order to enhance engagement with customers in an optimal
manner (Shchepakin and et. al., 2018). In context to TESCO, marketing segmentation, target and
positioning allows the organization to evaluate its market and gain assistance while developing
specific marketing strategies. It helps the management to understand its target audience in an
efficient manner and ensure it is able to attain a large customer base.
The STP analysis provide assistance to the management as well as marking team at TESCO
by ensuring it is able to develop a specific as well as effective brand message that is based on the
overall needs and wants of customers. Moreover, STP model help the organization to develop
optimal marking mix for the organization along with enhancement of its marking research in order
to make its marking strategies and plan efficient and optimal (Kartajaya, Kotler and Hooi., 2019).
STP analysis
The STP analysis is a marketing model that help in establishing strategic approaches relative
to marking in the modern-era. It is one of the most commonly applied marketing model due to its
leading marketing credibility and streamlined communication practices. Given below is the STP
analysis in context to TESOC:
Segmentation:

The segmentation aspect of the analysis refers to the division of marketing into specific and
distinct groups through process of segmentation. It consist of various groups that are developed on
the bases of particular traits as well as criteria. These groups further help the organization to
understand its target market through effective analysis of its segmented market. The segmentation
process consists of factors such as age, gender, lifestyle along with location in order to understand
the bases of group (Alsem., 2019). In context to TESCO, the segmentation process allows the
organization to understand the overall wants and needs of their customers. In addition to this, it
enables the business to be more efficient relative to time, money and resources. Given below are
varies divisions in segmentation process in context to TESCO.
Demographics:
This group focuses on dividing the market on the bases of specific aspects such as age,

gender, income along with education of the customers. It helps TESCO to understand common traits
and interest of their customers when developing marketing strategy.
Psycho graphic:
This group of segmentation process pays emphasise on the particular lifestyle along with
attitude and opinions for customers. This allows the management at TESCO to segments the market
for their products and services on the bases of similar interests.
Geographic:
The geographic group of the segmentation process focuses on the particular location of the
market and segments on the basis of region, city along with county. This help TESCO to evaluate
the optimal market for their business operations.
Behavioural:
The behavioural group of the process divides the market on the bases of customer behaviour
which consists of aspect such as how often is a product purchased along with its ability to meet the
expectation of customers. In context to TESCO, this group of division allows the business to
develop specific products and service that will cater to the needs of customers and provide optimal
levels of satisfaction.
Targeting:
This aspect of STP analysis involves targeting a specific customer audience based on the
segmentation process. It allows a business to identify the most attractive customer audience which
will provide the organization with the ability to enhance its market share. In context to TESCO, the
targeting process helps the management to identify which customer audience is suitable for their
products and service and will provide optimal levels of growth. Given below are factors based for
targeting customer audience in context to TESCO:

Size:
This factor allows the management at TESCO to analysis the overall size of target customer
base in order to develop suitable products and service.
Profitable:
This factors allows TESCO to evaluate the generation of profits relative to the chosen target
customers base in an effective manner when developing marking strategy.
Ease of reachability:
This factor enable the management at TESCO to evaluate the level of difficulty in engaging
with its target audience and develop appropriate marking operations to attract customers.
Positioning:

This is the final step in the STP analysis and involves components from both segmentation and
targeting. This step of the process enables an organization to position its products and service in a
unique manner relative to its competitors in order to gain market advantage (Gupta and et. al.,
2021).In context to TESCO, it allows the management to develop products and services that will
gain high level of positioning in the market thorough their uniqueness relative to this competitors.
Given below are three standards that help an organization determine production positioning in
context to TESCO:
Functional positioning:

This aspect can allows the management at TESCO to determine development of products
that will help customers to solve problems and provide benefits in order to gain advantage in the
market.
Symbolic positioning:
This particular aspect can provide assistance to the organization to develop product and
service of luxury statues in order to develop unique symbolic positioning in the market.
Experiential positioning:
This aspect can enable TESCO to develop products and services relative to emotional
attachments in order to attract customers based or segmentation and targeting to attain competitive
advantage.
Determining the overall marking mix strategies
Marketing Mix:

It is a tool that helps the organization to evaluate various strategies relative to an
organizations marketing operations. In addition to this, it allows a business to evaluate various
component involved in marking in order to develop suitable marketing strategies that will provide
high level of growth as well as market share. In context to TESCO, marketing mix is an essential
tool for the organization in order to evaluate its marking operations and develop appropriate
marking strategies for their products and services based on market segmentation, target along with
positioning. Given below are elements of marking mix in context to TESCO:
Product:
This element of marking mix refer to the overall products and services offered by an
organization in order to attract customers in an effective manner. In context to TESCO, the
organization offers various products and service in order to cater needs of their customers in an
effective manner. The various products and services offered by the business allow in gaining a
larger market share relative to its competitors (Ndofirepi, Farinloye and Mogaji., 2020).
Price:
The price element refers to the various price points of products and services offered by an
organization in order to gain market competitiveness. In context to TESCO, the management offers
products and service at various price points in order to attract customers in an effective manner. It
allows the business to ensure it is able to provide high quality good it its customers at affordable
price points in order to attract large customer base.
Place:
This element refers to the location and place of the organization in order to offer its products
and services to customers and develop reachability in an optimal manner. In context to TESCO, the
organization is established at various locations in order to offer its products and service to
customers in an effective manner. This helps the business to expand its reachability and engagement
with customers leading to enhanced brand awareness (Abedia and et. al., 2021).
Promotion:

This element consist of activities that are utilized by an organization in order to promote its
products and service in an effective mmarketing mixanner in order to market it producers to
customers. In context to TESCO, the marking department of the organization pays emphasis on
utilizing both tradition as well as digital methods of promotion in order to attract customers in an
optimal manner. It enables the organization to develop positive engagement with customers and
boost brand image.
People:
This element of the marking mix consists of individuals that help an organization in its
marketing operations and development of strategy in order to attain market competitiveness. In
context to TESCO, the organization hires and trains it employees in an optimal manner who provide
essential assistance to the business in achieve marking objectives such as customer service and
sales. This allows the business to attain growth as well a generate high levels of profitability.
Process:
This aspect of marking mix allows an organization to develop its products and services in an
effective and efficient manner in order to save cost and utilized resources in an optimal manner. In
context to TESCO, the organization has effective process within its business that allow the business
to attain high level of productivity as well as performance relative to marking functions. In addition
to this it helps the business to utilized appropriate resource which helps in cost reduction as well
(Soroya and Ameen., 2021).
Physical evidence:
This elements of marking mix refers to offering of physical evidence to customers in order
to enhance brand image and develop engagement with customers in order to enhance marking
operations. In context to TESCO, the business provide it employees with various physical evidence
such as logo of their organization on grocery bags and receipts along with gift cards in order to
boost their marketing operations in an effective manner (Iwu-James, Haliso and Ifijeh., 2020).
CONCLUSION
From the above report it has been concluded that, it is crucial for an organization understand
its overall markets through the utilization of of STP analysis. It allows a business to understand
crucial factors such as suitable segments and target audience for the business along with
development of unique products in order to attain competitive positioning within the market. In
addition to this, it is vital for an organization to evaluate its marking mix in order to analyses
various marketing strategies as well as approaches which will help in enhancing brand awareness
along with growth of the organization.

REFERENCES
Books & Journals:
Abedia and et. al., 2021. A game theory approach to selecting marketing-mix strategies. Journal of
Advances in Management Research.
Alsem, K. J., 2019. 25 years Marketing, and innovation.
Gupta and et. al., 2021. Big data and firm marketing performance: Findings from knowledge-based
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Homburg, C., Theel, M. and Hohenberg, S., 2020. Marketing excellence: nature, measurement, and
investor valuations. Journal of Marketing, 84(4). pp.1-22.
Iwu-James, J., Haliso, Y. and Ifijeh, G., 2020. Leveraging competitive intelligence for successful
marketing of academic library services. New Review of Academic Librarianship, 26(1).
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Kartajaya, H., Kotler, P. and Hooi, D. H., 2019. Marketing 4.0: moving from traditional to
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Ndofirepi, E., Farinloye, T. and Mogaji, E., 2020. 13 Marketing mix in a heterogenous higher
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Shchepakin and et. al., 2018. Marketing tools of innovation development
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