LO1

1.1
The way a firm develops its strategies and formulates ways to fully understand the
needs of its potential customers in order to bring out new and improved products in
accordance to the customers need is called marketing. Marketing is not a single step
procedure rather it is an amalgamation of many interrelated steps that needs to
undertake in order to make sure that customers needs are rightly met and on time.
Marketing process includes marketing steps like analysis of situation, marketing mix
decision, implementation and control and marketing strategy.
Firstly the firm needs to fully understand the environment and situation in which the
business is currently running in. so in order to fully analyze the situation important
analysis needs to be done which includes the 5 Cs analyses. It looks into factors
including customers, competitors, company, climate and collaborator. Moreover
PEST analysis also needs to be conducted whose main aim is to analyze political,
economic, society and technological factor analysis. SWOT analysis on the other
hand is important in terms of understanding strengths, weakness, opportunities and
threats that can be present for the organization as a whole. Marketing strategy is the
next step in line that requires organization to fully understand the needs of the
customers so that appropriate strategy can be formulated in order to cater the needs
of the old as well as potential customers in an effective way. Marketing strategy is
effective when it is able to fully convey the message to its customer regarding the
availability of the products and its usefulness. Marketing mix decision is also a very
crucial step and is difficult to develop. Marketing mix requires the firm to developed
strategies in terms of product development, pricing decisions, distribution techniques
and promotion techniques for its products. Implementation and control is the last
step for the organization which needs to implemented after the development of
marketing plan and introduction of product in the market.it is now the crucial steps
that requires that firm constantly upgrades its strategies in accordance to the
changing perceptions and trends that appears in the market.

The marketing process of TESCO includes conducting insight and sight research,
marketing at various places of potential customers, brand marketing and strategies
including pricing and promotion of products
1.2
Marketing is a very crucial factor for a firm for which it is willing to spend millions of
pounds. Some of the marketing strategies used by various organizations include
advertising through television commercials and newspaper advertisements. Sale
force advertisement is another way by which new products can be advertised.
Marketing orientation is a building block of marketing. The aim of marketing
orientation is to satisfy the market by understanding and by giving constructive
response and putting effort to fulfill the needs of the stakeholders in terms of
customers, competitors and others in order to have an edge in the marketing in
terms of performance. As Tesco is in the retail industry market orientation is even
more important when there is entry by new powerful firm in the market. So Tesco will
be only successful when it has closely understood the needs of the market.The values
of the firm are integrated in the internal marketing strategy which includes distribution of current
updates of the company to its employees. Values originate from UK but they can be altered
depending on the country specific conditions and norms. The priorities of various customers all
differ from one and other so strategy must be formulated as such to cater maximum needs. The
benefits of market oriented approaches used in Tesco are:
1. Customer centric: This process is customer centric, Tesco gives importance on the
customers demands and needs-for example Tesco have a worldwide isles for other
cultures, microwave meals for certain age groups also provide services such as car
insurance and many more. If they keep their customers happy they will benefit from
consistent customers.
2. Addressing demand: Tesco reacts with customer demand-they do this by online
feedback, also do regular online researches.
3. Making customer benefit: This process helps Tesco to create buyer value that
increase customer loyalty and frequent shopping. Tesco use a club card system to
maintain customers for example send them vouchers depending on how much points
they have on their Tesco club cards.

4. Reasonably competitive advantage: As Tesco develops products and services

based on customers demands and needs; it ensures the full use of products and
services that gives competitiveness over its competitors. Tesco tries to keep prices
low to be competitive also do regular promotions to invite customers.
The disadvantages of customer orientations are:
1. Comprehensive and costly research: It is really cost ineffective and Tesco spends
a lot of money in marketing research which is not possible to perform by small
organizations.
2. Increasing benefit increases price tag: As consumers are getting their desired
products they have to pay higher price.
3. Lack of liability: In market orientation product development is really tough because
different customers have diverse choices.
Cost and benefit analysis of marketing campaign will now be discussed. The cost
can be in terms of monetary cost of advertisement. Moreover late response of
advertisement can also be a cost for the firm. However the benefits of marketing can
be immense if the message is rightly conveyed to the customers. Benefits can be in
terms of increased market shares and revenues for the organization in the long run.

LO2
2.1.1 Micro Environment Micro environment consist of the internal environment of
the firm. Firm has control of such environment and thus can change its operations in
order to bring about positive change in the operations of the organizations. Micro
environment is made of people working inside the firm and various effective
strategies can be adopted in order to increase the productivity of those people and
increase the customer satisfaction. Micro environmental factors are competitors,
media, employees, shareholders, customers and suppliers and these factors
determine organizational resources and capabilities. Tesco take responsibility in
marketing decision making by using internal and external factors such as macro and
micro environmental factors, example of these are:

o Customers: customers are the key focusing substance of Tesco, attracts and
retains customers by providing excellent products and services.
3

o Employees: The employees of Tescos are skilled, motivated and

knowledgeable and they play significant role in the success of Tesco and they
better sales and provide customer services.
o Suppliers: Another important factor is suppliers, Tesco has good supply chain
it is able to achieve competitiveness and are able to provide quality products
to end customers.
o Shareholders: to expand a business shareholders are needed Tesco have a
good relationship among shareholders to ensure long term success and
higher profit.
o Media: this plays an important role as it promote positive matters, Tesco draw
more customers attractions.
o Competitors: Tesco has many competitors and it must be aware of the
activities and products of its competitors. It should use modern technology in
its production and understand the trading condition and customers behaviour.
Macro Environment:
Environment can have major impact on the working of the organization. Micro as well
as macro factors in the environment. Macro environment consist of wide range of
elements that affect the firm through outside forces. Some of the macro environment
factors that can have an impact on the firm include factors like suppliers, agents and
distribution related to the firm. The factors that indirectly impacts the firm includes
cultural, legal and technological environment existing that can affect the firm
operations indirectly. Tesco should try to keep themselves updated with the
technology changes, Tesco will benefit from their stakeholders communicating better
between each other also will help Tesco run their business more efficiently.
The macro factors are P.E.S.T.E.L.M which stands for political, environmental, social,
technically, legal, economical and marketing. Macro environment presents threats
and opportunities that are often difficult to handle, than with events in the micro
environment, few examples of these would be:

Political: Politically, the recession is one of the main spectrums that are
currently affecting all the countries which may lead to higher numbers of
unemployment. As one of the largest and fastest growing retailers more jobs

will be available with Tesco therefore helping to reduce the levels of

unemployment.
Economic: One of Tescos competitive advantages at present relates to their
overwhelming physical presence, there are issues about Tesco driving out the
competition from other retailers. Under EU law, there is presumption that an
organization with a large market share is dominant. The concerns with this are
that quality of products and services will slip and there is a risk of paying

higher prices.
Social: so these aspects involve lifestyle trends, demographics consumer
attitudes and opinions. Tesco look and asses there location well for instance if
near a supermarket the population is high for Asians and single applicants
then Tesco are going to take this in consideration and try to increase their
profits by selling cultural foods, and quick microwave products.

Finally both micro and macro factors have influences on the marketing strategy of
Tescos. If Tesco continue to focus and maintain these factors their opportunities of
expanding even more worldwide is very promising. In addition, this can lead Tesco to
making more profits and coming above other supermarkets.

2.2
Segmenting Strategy
Firm needs to develop its marketing segmentation so that it can focus on the
segment that is most profitable for the business. Marketing segmentation can be
done by a two-step procedure. It includes name of broad predict market and the
second thing is to divide the product market into segments. It is important to divide
the markets into segments because not all the individuals possess similar
characteristics, these subsets may be divided by criteria such as age and gender, or
other distinctions, such as location or income. So it is essential for the firm to
conduct research on smaller fruitful segments of people so that marketing strategies
can be developed separately.
Market segmentation occurs in two steps which include the name of broad predict
market and the second step is to divide that product market into segments. This
segmentation is done because not all the people possess similar characteristics. So
the firm needs to research on smaller segments of people separately so that
5

customized marketing strategies can be. Taking the case of old people and
understanding their needs products should be kept as such that are required for the
elderly people as well. This is because they are also any important segment of the
society.
Tesco needs to focus not only on food but other items as well because it being a
retail business needs to constantly remain in contact with its suppliers.
Using segmentation analysis, this has helped Tesco PLC, Britain's largest retailer
stores to decide on their future marketing strategy and to appraise their competitive
strengths. Tesco realized the requirements for effective segmentation and that it
must be measurable, accessible, differentiable, substantial and actionable.
To measure the size, purchasing power and characteristics of each segment Tesco
used Club card program, giving cardholders discounts in exchange for their name,
address and other personal information and optional questions about the size of their
household, the ages of their children and dietary preferences they used this data to
gain customer feedback which allowed Tesco to do further study on consumer
segmentation on their purchasing behavior resulting from their lifestyle.
Tesco has wide range of products and it develops different products for different
customers. First of all it segments the whole market in different parts based on
different aspects. Tesco may segments its market based on the following aspects:

Geographic Criteria: Tescos market on basis of population, size and

atmosphere of a region or a geographical area. In slough Tescos there is a lot
of Asian population so Tesco have a halal section also worldwide section for

this particular culture.

Demographic Criteria: Tesco focus on sex, race, age, status, sexual
orientation, education, income of the people. In the slough Tescos
supermarket there is a lot of students so Tescos taken their age and time in

consideration and have made more microwave meals for them.

Psychographic Criteria: Tesco use their market on basis of customers
thoughts, feelings, beliefs, interests, values, lifestyles, social status and class,
personality and so on. Here the slough Tescos supermarket are taking
everybodys needs inconsideration for instance sell a lot of products from
6

food, exercise machines, toys, cloths, and so on, also priced different

depending on quality preferred.

Behavioural Criteria: Here Tesco segment the total market based on
customers purchasing behaviour like readiness to buy, loyalty to the
organization, users status and occasions. This could be to see different
attitudes of customers toward the current products also the response to new
goods. For instance selling video games-to see what is popular and relate
sales to price, for example if a particular game is selling really well there is no
need to sale for low price and add promotion.

By considering the above factors Tesco segmented its whole market in different parts
namely pharmacy & health, Beauty, Fragrance, Mother & baby, Toiletries, and so on.
All the criterias above help Tesco to meet the customers needs as well as reflect on
how they can develop and accomplish well as well as make profit.

2.3
Targeting Strategy
Firm needs to have a deep understanding regarding the potential customers and
thus appropriate products can be kept by Tesco that are needed by their valuable
customers.
The Tesco product is-Seven Seas Extra High Strength Cod Liver Oil 1050Mg the
plan could be marketing segmentation It should preferably be positioned in those
markets where there is likely deficiency of vitamin A and D in general food habits due
to non-availability or cost prohibition. It will also attract market in colder times. The
three factors status symbol which this product can come below are:

Firm capabilities: Tesco need to think who are the key people, what are the

strengths and resources available to sell this prod uct:

External environment: what are the beliefs, cultures and age this is going to

be targeted too?
Attractiveness of target segment: Tesco need to get knowledge of how
attractive he market is to sell the seven sea product.

External environment factor is what this product comes under for instance its
important due to certain beliefs that this product does not contain anything that does
7

not allow them to take. Age will also be considered while selling this product,
additional lots of research and study on the environment is considered.
There are a number of strategies which can be put in place to sell an item in Tesco,
for example using the 7 Ps when targeting these stand for product, place, price,
promotion, process, physical people and productivity. There are also different
targeting strategies such as:
Strategy

Description

Example

Undifferentiated target

Sending the same

Item that hasnt changed is

promotional message to

still the same?

everyone only having one

product. The reason why it
might be this is because
the business does not
have much money or
Differentiated target:

resources.
Targets more than one

Coke-as thy have got diet

party, reason for this is

coke, zero, cherry, apple

acknowledges different

and so on so more than

groups of customers with

one product.

different needs, Lots of

money is used.

Concentrated

This is to target a small

Sandwiches in Tesco so

TargetingNiche target

amount of people.

competing with subway

This approach is used if

and so on.
Bake beans can be an

you need to focus on two

example as they have lots

or more well defined

of different varieties

Multi-Segment Targeting

market segments and want available such as sausage

to develop different

and beans and many

strategies for them. Multi

more.

segment targeting offers

many benefits but can be
costly as it involves greater
input from management,
increased market research
and increased promotional
strategies.
Source: Lecture note by Adeboye Dada (2015) and www.tesco.html last accessed
2pm on 12/11/2015
Prior to selecting a particular targeting strategy, you should perform a cost benefit
analysis between all available strategies and determine which will suit your situation
best.

The targeting strategy which this product falls into is differentiated target-as there are
different age groups which this can be used for. Also different beliefs so there are
certain ingredients in the seven sea product-which need to be taken out to make it
available to everyone. Also can keep creating new products with different iron and
vitamins to develop in the market.
Mission Statement To enhance the sale of Seven Seas Extra High Strength Cod
Liver Oil 1050Mg 60 for aged 18-45years of age.

Product - Seven Seas' pure cod liver oil contains 525 mg of pure cod liver oil, 120
mg of omega 3 nutrients. Other ingredients include capsule shell, Vitamin A and
Vitamin D3. Recommend to take one capsule with liquid each day.
Price- 7.50 for 60 capsules.
Place The product is superior to others due to quality control, placing it where
there is a high possible of sales. As this is a new product could be placed on their
own in the first isle of coming in that section.
Promotion Through internet, TV advertisement could also do promotions for
example buy 2 for 12, as well as use the logo to sell the product.
Competitors There are a number of companies which are providing cod liver and
fish oil. So this is important to be able to have quality control and provide better and
new items
The list above are the few ways in which a product can be targeted to sell,
additionally, If possible, do market testing That will be done through various
contemporary methods in vogue. This is a great way of targeting the product seven
seas; this should increase the sells as well as put the product out there for the
customers to have knowledge of.
2.4
Consumer behavior refers to the choice, purchase and expenditure of goods and
services for the satisfaction of their wants/needs. When purchasing any product, a
consumer goes through a decision process. This process consists of up to five
stages:
Stage 1: problem recognition,
stage 2: information search,
Stage 3: evaluation of alternatives,
Stage 4: purchase decision
Stage 5: post purchase behavior.
10

An example of the above procedure is; initially the consumer tries to find what
product they would like to buy, and then selects only those things that promise
greater value. After selecting the item, the consumer makes a decision how much
they would like to spend. Lastly, the consumer analyzes the existing prices of item
and takes the decision what he should consume. Meanwhile, there are various other
factors influencing the purchases of consumer such as social, cultural, personal and
psychological. An understanding of the influence of these factors is essential for
marketers in order to develop suitable marketing mixes to appeal to the target
customer.
Buying Behaviors is the way Tescos makes their decisions for instance they
question themselves and say:
Why consumers are purchasing certain products?
What factors influence consumer purchases?
The changing factors in our society?
The length of this decision process will differ. A consumer may not act in isolation in
the purchase, but rather may be influenced by any of several people in various roles.
The number of people involved in the buying decision increases with the level of
involvement and complexity of the buying decision behavior.
Social factors can affect the marketing activities; the important factors are groups,
references, families and role and status. This explains the outside influences of
others on Tescos purchase decisions either directly or indirectly References makes
an impact in varies of products and services, an example of this can be in tesco if a
product is visible such as a dress, then the influence of references group is high, as
they can persuade others- have knowledge. Family can be a big influence, thats
why Tesco are trying to find the roles of wife, husbands and childrens. If the buying
decision of a particular product is influenced by wife then Tescos will try to target the
women in advertisement. Here the buyers roles changes, with change in customers
lifestyle.

11

Culture factors can also affect the marketing activities of buyers behavior; these
factors are often inherent in our values and decision processes. Each culture
contains different subculture such as religions, nationalities, racial groups and etc.
Tesco can use these groups by segmenting the market into various small portions;
an example of this can be Tesco can design products according to the needs of a
particular geographic group. Marketing activities could be tailored according to
different social classes, this could include there income, education, occupation and
many more.
Personal factors can affect the consumers behavior, economic situations,
occupation, age, personality and self concept-these may explain why our likings
often change as our `circumstances changes. Age and life cycle have potential
impact on buyers for example these stages such as young singles, married couples
and etc help Tesco to develop appropriate products for each stage. Tesco also keep
a regular in sight of how the population is increasing, having more children so family
budgeting products are introduced. Another factor is occupation and economic
situations-if the income of a customer is high then he will purchase more expensive
product for example a marketing manager will try to purchase business suits,
whereas a low level worker in the same organization will purchase the inexpensive
products.
Psychological factors these are perception, motivation also beliefs and attitudesother people often influence a consumers purchase decision. Perception is the
process in which Tesco try to attract the customers attention, retain information that
supports their beliefs. Customer possesses specific belief towards various products,
so Tesco might want to launch a campaign to change customers beliefs and
attitudes.
Organizations are formed to earn profits and they can do it if they are able to fulfill
the needs of its customers. It is thus essential for the firm to not only get as much
information of the needs of the customers but also get a good idea as to why people
require those problems. This will allow the firm to understand the reason why
customer requires those products so that the firm can firm their needs in a very
unique manner.

12

Firm like Tesco needs to understand the requirements of its customers in terms of
the grocery range they expect to find from a well reputed retail store. There should
be large variety of products for customers to choose from.

2.5
After segmenting a market and then targeting a consumer, Tesco proceed to position
a product within that market. Product positioning is an significant aspect of a
marketing plan, Product positioning is the process Tesco use to establish how to best
communicate their products attributes to the target customers based on customer
needs, competitive pressures, available communication channels and carefully
crafted key messages. This also consists of maintaining a clear and appropriate
positive image of the product or service into the minds of the consumers. One
product which Tesco need to consider the positioning of is mountain dew this is the
most effect and high energy drink which is drank by all age groups, this is one of the
most selling drink in ASDA, allot of youngest are buying this as it keeps them
energized, this also helps to keep you awake as it is high in caffeine. In ASDA they
have advertised this drink near the drink section, also have placed this drink in many
rows, Tesco have not done any of his. It is not positioned well, and there is no
marketing mix plan shown here. Additionally Tesco should sell this in all their stores,
this is not visible either. The shopping experience in terms of product range should
be able to cater all class of people from very high to low income families. Wide
variety allows people to choose products that are under their give budget. This will
allow Tesco to increase the customer base and generate greater revenues. Product
positioning helps marketers consider how their offerings are different from others that
consumers have to choose from which Tesco always do and need to maintain. to
market the drink I would have a small poster for people to have a look at when
entering Tescos, then Tesco should look at what made the target decline in the first
place. Also should consider what the price or promotion can be given on the product.
Place it very clearly and in the front row. Also see what they can do to make the
product noticeable.

13

LO3
3.1
The way Tesco has developed itself and its products to sustain an advantage over its
customers; firstly by its continuous expansion. Tesco was founded in 1942, and since
then has grown to having over 1878 stores. Tesco have proven to have the
competitive advantages as they were the first supermarket brand that made 2 million
in annual profit. Tesco also have expanded globally where as the other supermarkets
have not expanded as much. Tesco also effectively employ good marketing
strategies for all if its products in general. Tesco also sustain a competitive
advantage by having an effective online shopping system. These online services
allow the customers to see what store contain, and then purchase online and have
delivery to their door. There are different techniques in the development of new
products, firstly generation-research, brainstorming could be used to allow Tesco to
come up with new products. The next technique would be further development; this
is where Tesco could add things to the product that they would be of interest or
importance to customers. Furthermore testing to evaluate the product when being
introduced to different markets and at different prices-to find out what way the
product could most effectively be marketed.
Good design of product is not just about working properly; It is also about how a
product looks to the customer. In Tescos clothing, kitchen equipment and etc are
designed to have a great effect on how customers spend their money. The basic
model is to create products or services and sell them to customers for a profit. These
products or services must live up to a certain quality standard expected by
customers. If the quality level is not met, there are consequences to face. The
characteristics of good products are: it should be functional and fulfill the needs of
customers. For example, food should taste good and have quality. A good product
should be also affordable, aesthetically pleasing, environmentally and socially
friendly.

14

The demand side of product markets includes consumption expenditures, investment

expenditures, government purchases, and net exports. The supply side of product
markets is production of the business sector.
Tescos products are very good quality, the products are always available and cheap,
very good branding on the products also is an advantage to their competitors with
recommended slogan on their products every little helps. Competitive advantage is
most crucial for the firm if it wants to stand out in the market of retail shopping. It also
allows firm to stay in the market for a very long period of time.

3.2
There are four elements of marketing mix, which is product, price, place and
promotion, this distribution comes under the category of place this is because Tesco
want to be accessible for customers this enhances the potential of sales. Tesco
ensures customers convenience by certifying that they have all the information
needed, accessibility and availability, and choice variance on their products. Tesco
have a number of stores for example Tesco extra, Tesco express and many more
these are excellent as availability is very promising for costumers. Also making sure
items are available on the store shelves, creating stores all over the UK for easy
access of costumers and so on.
Tesco also distribute online this is simple and easy to use and available to everyone,
and anything can be brought also the offers are online as well as stores. Additionally
offer home delivery which is very superior for customers. Tesco do allot of advertising
on TV also on bus stations and etc to show the offers and products, this is to make
people aware and t engage customers. Furthermore a good example of distribution
is at Ramadan time for Muslim, leaflets are posted door to door to keep customers
also to demonstrate the offers available. One of Tescos objectives are to satisfy
customers, so Tesco have an online feedback section on their website this is great
however can be very damaging for Tesco however they put customers first so are
very positive about having his procedure in place. Finally Tesco also have customer
service areas in their main stores, these are to deal with any enquires and return of
goods.

15

3.3
Pricing is an important marketing strategy in all manners, In order to properly price
products, Tescos marketing strategies are required-can the customer afford
products, suitable sales channels, product cost, competitors and expected profit.
The price of a product will need to be worth the value of the product. For this reason,
prices are always subject to the character and beliefs of Tescos they also examine
the market and look at the way certain products are performing. This is how they
determine if a product is going to be included in their own product lines or services
that they offer. This is also how they decide if they are going to continue to produce a
particular product, products that don't perform well are often discontinued.
Sometimes, prices may be lowered, but this is difficult to do if production costs are
still high. If Tescos cannot see a profit on a particular product then this will simply
discontinue, rather than lower the purchase price and lose money on production
Tescos also look at market conditions in terms of competitor performance and
pricing in order to set their own success measures. If Tescos wish to increase sales
and win customers from competitors, they have to produce good products and price
their items lower than the competition. This is just one of the many ways in which
prices are set by an organization's objectives and market conditions.
Tesco have being able to achieve this buying in bulk products, and getting it through
just in time for distribution strategy. It has been able to reduce the management cost
by increasing the mechanization of the services provided. Moreover it has been able
to decrease the inventory cost and storage cost.
The pricing policy of Tesco generally reflects the market in which it is aiming to sale
their products. Services prices are set, not only to maximize the sales or profits but
there are many other factors, which are also considered by Tesco for instances they
might sell an item for a high price to customers because they are aiming to sale
products and services as exclusive not because the production cost is high.
Tesco attribute the price by keeping in consideration various factors such as:

Level of competition in the market

Fixed and variable cost to Tesco
Target group
Wiliness and ability of potential customers to pay for the product/service.
16

Skinning pricing Tesco can adapt different pricing strategy for example first charges
higher prices, afterwards lower prices with a view to make a product available in all
stores.
Penetration pricing-Tesco lower prices for the product/service to increase
saes/profits, by ding this Tesco an increase their market shares.
Competitions pricing-under this strategy price of the goods/services are fixed by
Tesco due to other supermarkets having low prices. An example of this is Asda and
Sainsburys have holvis bread 2 for 1.50 then Tesco have to do the same to maintain
customers.
Tesco manipulates with each element of the marketing mix to a great extent in order
to offer competitive benefits to target customers. The cut of price on Tescos main
brands and also other products will get them more customers and therefore Tescos
would beat its competitors and dominate the market.
Their other objective - is to create value for customers and earn their lifetime loyalty.
This is done by splitting this objective into the 4 Ps.
These are Product - having the right product range for the customers. This differs
from store to store and area to area.
Price - keeping their prices competitive.
Place - accessible locations for customers.
Public - thinking of their public. Their corporate and social responsibility and they
do give to charity and the local community out of their profits.
Tesco can see buying patterns from their Club card information and this gives them
the insight into what people want and what is in demand which helps achieve these
customer led goals.
In summary of above Tescos objective is to have a good competitive price for
customers, an example of this is Tescos does a brand check at the end of every
purchase shop, as they believe in their prices. It is good for Tesco to be competitive
however this can lead to making small or no profit at all.

17

3.4
Promotion decisions are those various aspects of marketing communication; it is the
source of information about the product with the goal of generating a positive
customer response. It increases publicity of Tescos which therefore increases sales.
TESCO promotional activity TESCO promotional activity is integrated into its
marketing objectives as follow:
Advertising: Is any non personal paid form of communication this can include media
services such as TV, radio, inter=net, magazines and printed leaflets. This method is
flexible communication which has the potential to reach out a vast audience.
Sales promotion: Commonly used to obtain an increase in sales short term, could
involve using money off coupons or special offers. This is used as a direct
inducement; this can be employed as incentives to all members-staff for instance are
offered a reward or incentive to sell goods to the customers.
Personal selling: Selling a product service one to one so this way people are aware
as they have being told.
Direct mail, this can involve direct mails, telemarketing, direct response, catalogues,
door to door. This is a very good way of promoting, as people be at work during
working hours so if staff cant go door to door then they can mail and email
customers.

3.5
The marketing mix is a business tool used in marketing and by marketing
professionals. The marketing mix is often important when determining a product or
brand's offering, and is often synonymous with the four Ps: price, product, promotion,
and place; in service marketing, however, the four Ps have been expanded to
the seven Ps or eight Ps to address the different nature of services.
The 4 P products include:
Product - A product is seen as an item that satisfies what a consumer needs or
wants. It is a tangible good or an intangible service.
Price The price is the amount a customer pays for the product. The price is very
important as it determines the company's profit and hence, survival.

18

Promotion - represents all of the methods of communication that a marketer may use
to provide information to different parties about the product.
Place - refers to providing the product at a place which is convenient for consumers
to access. Place is synonymous with distribution.
The additional Ps has been added because today marketing is far more customer
oriented than ever before. These 3 extra Ps are particularly relevant to this new
extended service mix.
The three extra Ps are:
1. Physical layout environment service is delivered and any tangible cues that
communicate the service. Things like building, layout, furnishing, colors, staff
uniforms, or even pictures can be included as physical layout. Today consumers
typically come into contact with products in Tescos- and they expect a high level of
presentation - e.g. right pricing everything labeled and many more. Not only do they
need to easily find their way around the store, but they also often expect a good
standard or presentation. Tesco will do his b ensuing al their products in store are as
high standard as can possible be. Tesco also needs to maintain cleanliness
internally-the store however externally such as delivery van.
2. People-provision of customer service this can be people and products
abilities/motivations and behavior of staff affects the quality of service offered to
customers. Tesco regular train their staffs, so customer cares are vital and obtained
in Tescos. Customer service lies at the heart of Tescos, so Tesco must ensure they
employee people who stick to the culture of Tescos as well as consistently delivering
on the products. Customers are likely to be loyal to organizations that serve them
well - from the way, in which a query is handled, to direct face-to-face interactions.
Employee competence
Employee satisfaction
Employee commitment

Service quality
Customer satisfaction
Customer engagement, Service

innovation
3. Processes this can be services provided also the series of actions performed to
same something or achieve a result- the process will be put n place to suit the
needs, the main need is profit, therefore the process will need to suit the
19

requirements of consumers. Customer service are a number of processes involved

in making marketing effective in Tescos e.g. processes for handling customer
complaints, processes for identifying customer needs and requirements, processes
for handling order etc.
The 7 Ps - price, product, place, promotion, physical presence, provision of service,
and processes comprise the modern marketing mix that is particularly relevant in
Tescos, but is also relevant to any form of business where meeting the needs of
customers is given priority.
LO4
4.1
Tescos, their entry to the Chinese market should significantly adapt to the culture of
the consumer in the said location however, the company should keep in mind the
basic standards to which their company adheres to.
Product: The management of Tesco should set off product development strategies
once they have taken control of the shop in China by marketing their existing
products, exporting products in different province of the country this will push forward
on the possible opportunities of boosting the company's market and market share.
Products also need to have Chineses language on there, so this attracts wide range
of population.
Price: Looking at the situation of Tesco, one way that it could acquire cost advantage
is by enhancing process efficiency, expanding exclusive contact to a large supplier of
lower cost materials, or steering clear of several costs in general. This price of
course needs to be low and attracting customers with good quality and qualitative.
Place: To develop its success in its retail operations, the Tesco should make multimillion pound investments in store expansion in low-income districts and localities.
This should first open in the central city of china as allot of population is available
and then expanded to different cities in china.
Promotion: The Tesco's approach should constitute a long-standing strategic plan
that canters on generation value to expand the loyalty of the customers which takes
20

account of preserving a well-built central Chinese business, promotions need to be

put in place so people are aware of the Tescos being opened in china. This can be
done through TV to spread information quick, also products on sale, of course in
their language so they understand.
The bottom-line is that object of the marketing mix is to satisfy the customer and in
this we realized the population is china is big however the product, price is contribute
to get success of Tesco in the UK. Tesco is a number one retail company, different
between domestic and international market.
Consumer market for Tesco requires the marketing department to look deeply into
the marketing mix in order to develop the name and to increase revenues. Two
different segments of markets are the organizational markets and international
markets.
Business to business related marketing is a crucial for the firm. Conducting business
to business research is difficult because researchers have to find out the appropriate
respondents have enough time to answer the questions. Moreover businessmen are
hesitant in participating in the research because most of their responses lead to
strategic planning for the firm
4.2
Business operating in business to business markets
Such firms have other businesses as their consumers, for example, the
manufactures of fork lift trucks do not market their product for use in consumers
homes, and instead they are aimed at businesses who are interested in buying these
products, such as warehouses. Some simply adopt an undifferentiated strategy
towards marketing, for instance local newsagents will want to sell to the entire
market, and the nature of the service offers means that this market will be local. If a
business is producing a commodity sold in bulk, like wheat, copper or oil, there is no
need to produce specific products for specific segments of the market, customers
wants to buy a standard product. It could also be that the cost of producing different
products or services to satisfy different market segments also what customers are
prepared to pay for the differentiation. Some businesses even deliberately produce
brands to appeal to all customers. They want to capture as much of the market as
21

possible with an undifferentiated product, a good example of this would be, the tea
brand-PG Tips or Typhoo Tea are aimed at the mass market.
Consumers markets
Many marketing theories and concepts have been developed to explain the behavior
of consumer markets, especially those for high sales, mass market goods. Most
businesses operating within such markets tend to focus upon all aspects to the
marketing mix, paying a great deal of attention to every element.
The differences between consumer and businesses, to business markets are that
the marketing mix for businesses operating in these two areas may vary a great
deal. Whereas the marketing mix for many mass market consumer goods often
places emphasis upon advertising campaigns in the media, business to business
marketing relies more upon personal contacts and the role of personal selling.
International shows are important events, where producers can make contact with
actual or potential customers.
Intangibility of service:
Service cannot be defined as physical attributes because it cannot be seen, tasted,
felt, heard, touched or smelled before it is bought, so it is difficult for consumers to
tell in advance what they will be getting. The experience consumers obtain from the
service has an impact on how they will perceive it. And perceived service is risky and
difficult to evaluate, customer tend to rely more on personal references, reputation,
facilities of the service provider as an indication of quality. Service marketers identify
the feelings that they want the customer to experience as a result of the service.
They stress the positive elements of tangibility in the service, make all
communications with the customer very clear and focus constantly on service
quality-when anybody buys a car; he/she takes it to test drive, if they like it, then they
only pay and buy the car, never pay for test drive. But if you buy a meal at a Tescos,
you do not know what it s going to taste like. Now buyers only look at tangible
evidence like cleanliness, decoration, staff movement, which provide the information
of quality of intangible service.

22

4.3
At one time businesses may have thought that marketing products overseas was an
adventurous act. It was generally undertaken by large businesses which had grown
too big for domestic markets. Today the world has shrunk due to rapid changes in
international transport and telecommunications. One effect of this is that a business
now needs to consider the threat from foreign competition and the opportunities
which might b gained from marketing internationally. For many firms international
marketing is no longer an option, it is necessary if a business is to survive in a
competitive business environment.
Domestic marketing is the selling of a companys products within a local financial
market. It deals with only one set of competition and an economic issue which
makes it more convenient to do. There are no language barriers in domestic
marketing and obtaining and interpreting data on local marketing trends and
consumer demands is easier and faster to do. It helps the company make decisions
and develop marketing strategies that are more effective and efficient. The risks are
also less with domestic marketing and it needs less financial resources. Local
markets are not as broad as the international market though and most companies
are aiming at doing business globally.
International Marketing
International marketing is the promotion and sale of company products to consumers
in different countries. It is very complex and requires a huge amount of financial
resources.
Every country has its own laws on business and a company that aims at entering
into business in another country must first know about them. Consumer tastes and
preferences may also differ so marketing strategies must be formulated to cater to
the needs of different consumers. International marketing requires more time and
effort, not to mention its being very risky too. The international market is very
uncertain and a company must always be ready for changes that may suddenly
occur. It requires a higher level of commitment to succeed in an international market.
References
(Online) Available at: http://www.slideshare.net/tuulbna/basic-conceptsofmarketing
(assessed on 7th November 2015).
23

(Online) available at: http://www.ducttapemarketing.com/blog/the-easiest-way-toexplain-the-marketing-process (assessed on 3rd November 2015).

(Online) available at: http://learnmarketing.net/orientations.htm (assessed on 16th
November 2015).
(Online) available at:
http://www.globalspec.com/reference/47105/203279/Undifferentiated-Concentratedand-Differentiated-Targeting-Strategies (assessed on 22nd November 2015)
http://www.slideshare.net/bberlinn/extended-marketing-mix-24154489 online
available at (assessed on 20th December 2015).
http://www.learningmarketng.net/servicemarketingmix.htm
http://www.market magazine.co.uk/
http://www.learn marketingweek.co.uk/brands/Tesco

24