The objective of this report is to evaluate importance of marketing practices in order to develop effective customers experience. These kind of practices are essential in order to maximize business profitability effectively by considering:
- Provide a background of industry, market positioning and USP of TESCO.
- Conduct a marketing audit in order to analyze market attractiveness of TESCO.
- Evaluate a competitor analysis by considering three main industry players.
- Critically discuss new marketing mix which helps in achieve gap between external environment and present marketing strategy.
Marketing management is defined as the procedure of directing business resources towards reach the target customer segment with the objectives of improving financial performance. It is considered to be the important activity which assists an organization in reducing the costs associated with the marketing or promotion of goods or services. Marketing management procedure includes several tasks such as planning, organizing, directing, and controlling marketing activities .These tasks are executed to achieve personal or mutual gain. In addition to this marketing management also involves tracking as well as reviewing the resources and promotional activities carried out by firm. The objective of marketing management procedures is to help an organization in developing as well as maintaining the strong relationship with customers. It also intends to support business entity in communicating business goals to the customers and informing them about the goods or services offered by company. Marketing management is also refers to as the art or science of selecting the suitable market for poisoning the products or services. It helps business entity in retaining the profitable customer for long time. Marketing management also assist a firm in increasing market share.
The purpose of the report is to develop the understanding about the concept as well as importance of marketing management in an organization. Study will include the detail about several tools which can be used for measuring the effectiveness of an industry as well as analyzing the intensity of completion in the market.
The Tesco company is operating in retail industry which has highly competitive market. An organization is performing well in an industry and has able to achieve good position with the support of effective strategies. Marketing objectives of an organization is to increase market share and maintain leadership position in an industry. There are different approaches, concepts, strategies and tactics has been adopted by firm in order to improve the marketing activities and for achieving desired objectives. One of the approach that unique selling concept has used by the Tesco which has assisted an enterprise in differentiating itself from competitiors.It has supported an organization in attracting the more number of customers as well as helped business entity in increasing sales. Unique selling is defined as the additional benefit provided by an organization to its customers which allows enterprise in making it different from other companies in an industry (Tomczak Reinecke and Kuss, 2018). The unique selling approach has helped an organization in increasing competitive strength and assisted firm in gaining the competitive advantage in the market. Marketing manager in Tesco has planned to develop innovative products and has planned to add more features or value in existing goods which has helps business entity in delivering high level of satisfaction to the customers. In addition to this market manger in cited business venture has adopted the strategy to facilitate research in order to develop the understanding about the target market as well as customers. It has also supported business entity in identifying the needs and demands of the customers. Research techniques has supported manger in making the plans related to the product development .Tesco company has established the several retail outlet which has enabled an organization to reach wide number of customers and provide them product or services. Marketing manager in Tesco has established Smart marketing objectives. An effective marketing plan has been created by manger in an enterprise which has supported employees in identifying the ways or techniques for accomplishing several long as well, as short term target (Villeneuve and Pasquier, 2017) . Marketing manager in Tesco has also adopted the retail strategy in order to recognize the target customer in the market .An organization has conducted the several retail procedures as trade system which has provided by the legal authority which has helped firm in communicating their objectives to customers. Marketing manager in an organization have focus on analyzing the demand of customers and are more concerned about delivering high level of satisfaction to client. Marketing manager in Tesco has adopted the cost leadership strategy which has provide firm an ease in entering into new market and helped business entity in gaining the attraction of customers (Jaworski, 2018). Cost leadership is the marketing strategy which enabled an enterprise in fostering growth and achieving success at very rapid rate.
Marketing audit or assessment has helped manager in making suitable plans as well as policies. It has also supported the management in providing the suitable response to changing business environment and helped an organization in increasing capability to maintain its position in an industry. Marketing audit is considered to be as a tool utilizing which an enterprise can utilize for analyzing weakness as well as strength which can be further related to the external opportunities and threats. As per Anshof matrix model, it is required by marketing manager in an organization to make major business decisions considering several factors such as resources , business structure. In context of Tesco, objective of marketing audit is to develop the understanding about the changes in the environmental variables which have direct effect on the marketing system. Other purpose of executing the marketing audit for Tesco is to measure the effectiveness of Tesco marketing system in relation to the fulfilling the demand of situation. There are two types of constituents in the environment such as micro as well macro factor which either have direct effect or influence on the marketing activities, plans, policies and strategies adopted by the firm for promoting goods or services (Chernev, 2018). Macro environmental variables includes social, cultural, legal , political , environmental , economical and technological variables. Macro elements are customers, suppliers, drib tutors and competitors.
Social factors are those which encourage company to adopt the new marketing techniques and bring improvement in practices especially conducted for promoting goods or services. It is required by manager in Tesco to make marketing or promotional plans on by analyzing the trends in an industry. As this strategy will provide firm an ease in attracting more number of customers. Marketing manager should also conduct research, as this will assist business entity in identifying the needs of the customer. It will also allows company to develop strong relationship with customers and retain profitable client for long term. When making the marketing plan it is required by manager to consider the cultural factors ,m as this will aid business entity in eliminating the negative effect of these elements on the marketing activities. As cultural factors can be create major barriers in accomplishment objectives of firm.
Political factors, includes the rules enforced by the political parties related to the marketing activities executed by the companies. It is required by manager to consider these rules, as this will help firm in eliminating legal obligations.
Economical factors , these variables are considered to be as very important as it defines the potential of the firm to facilitate marketing activities. Economic constituents have direct influence on marketing plan of Tesco.
Technological factors , these variables have positive impact on the marketing activities. Technological constituent has provided very modes through which a form can easily reach wide number of customers. Some of the technologies such as social media sites and internet has provided business entity an opportunity to communicate directly with buyer and influence them to purchase product or services offered by an organization. It has provided company a chance to attract people by developing new products as well as delivering additional facilities to them.
Environmental variables, these constituent can create hurdle sin organizing the marketing campaign for promoting brand , products or services. These elements also include the environmental law which has direct as well as major influence on marketing activities.
All the above factors has direct as well a major influence on the potential of Tesco organization in relation to operate profitably in an industry as well as at market place. Market manager in an organization has develop several, effective strategies in order to explore as well as capture different market opportunities and protect the firm from the competition or threats (Usui, 2017). It is very much important for marketing manager in an enterprise to gather information about competitors. As this strategy will support an enterprise in addressing the risk which might have adverse effect on the business performance as well as position in the market.
Tesco company has market share approximately 30 percent. Competition within an industry has direct as well as significant influence on the market share as well as business performance of Tesco. Many of the competitors of Tesco have adopted the aggressive strategies which have significant impact on the profitability and sales of business venture. Tesco competitors by developing the innovative product has lead to the decrease in demand for products of the company. It has been analyzed that Tesco Company emphasizes on expanding the business operation rather than on the market. This factor has significant as well as negative effect on the financial performance and market growth of firm. An organization has an opportunity to form strategic alliance with the global companies. As this strategy will help business entity in reducing the negative effect of macro environmental factors on its business operation. It will also allows business entity a chance to gain competitive advantage in international environment and increase its sustainability in global market. It is required by marketing manager in an organization to develop innovative products .As this tactics will help firm in attracting more number of new as well as existing customers.
In addition to this marketing manager in Tesco has adopted the environmental open policy which has assisted firm n representing the ethical behavior. This strategy has assisted business entity in gaining the loyalty of customers and provided an organization an ease in influencing people to buy particular product or services. Marketing strategies include the activity or procedure of analyzing the needs of customers (Moutinho and Vargas-Sanchez, eds., 2018). All the strategies are applied by the marketing manager with the support of suitable marketing plan which contains the detail information about the several elements such as the price as also detailed about the way product should be distributed. Marketing manager in Tesco has developed the websites and has used social media sites for promoting good or services. Tesco is competing with the domestic as well as international companies in successful manner due to effective marketing strategy and plans. An organization has adopted the different marketing approaches in order to attain the marketing objective of delivering high value to customers as well as earning life time loyalty. Unique selling strategy has helped firm in reducing the negative effect of several micro as well as macro environmental factors on the marketing activities. An organization has invested its financial resources on conducting the marketing campaign for directly directing the customers and influencing them to buy the product or service offered by an enterprise (Sharma and Syam, 2018). It is required by marketing manager in Tesco to overview as well as monitors the strategies or action taken by its direct as well as indirect competitors. Direct competitors are those who offer same products. Indirect competitors are those who sell the same type of goods but they generally have different targets. The third type of competitors in an industry is Replacement competitors. Replacement competitors are those they have high potential to develop substitutes of the products by utilizing the same resources. It is quite a difficult as well as challenging task for marketing manager in an organization to identify the replacement competitions.
In addition to this marketing manager in Tesco has also planned to adopt the market development strategy with the purpose of increase market share and foster growth. This marketing strategy has assisted business entity in increasing the revenue and rising sale. Manager in Tesco has planned to expand business operations in international market most preferably Japan as the country is developing there is the great scope of market growth . Company fan also expand business in Asia market as the nation has favorable economic condition which will help an enterprise in increasing sales .By expanding the business in this countries Tesco can explore as well as capture market opportunities.
Porters diamond Model can be used by marketing manager in an organization for measuring the intensity or level of completion in an industry. It is required by marketing manager in Tesco to develop the understanding about the different tactics or plans adopted by competitors in the market for attracting customers. As this will assist n organization in determining the effect of the action taken by the firm on competitors. It will also help an organization in gaining the competitive advantage on an industry. Gathering the detail information about the competitors will support marketing manager in formulating the suitable strategies as well as tactics for providing suitable response to the competition. It also assist business entity in dealing with the changes in trends which have direct as well as significant impact on the marketing or promotional activities of firm. Development of the understanding about the competitors is also important as the steps or action taken by them can have negative effect on the sales as well as profitability of an organization . In context of Tesco , Asda , Sainsbury are the major competitors in an industry, Competitors of Tesco has the high potential to influence the market. For instance , change in the pricing policy by the Asda and Sainsbury can have negative impact on the sales as well as profitability of firm. The strategy for analyzing the competitions has been propounded by Michael Porter. The strategies provided by the porter for analyzing the competition as well as measuring the effectiveness of an industry is based on the different aspects these are:
Competitors objectives-In context of the Tesco , its competitions can have both financial as well as non financial motives. The marketing manager in Tesco is required to develop the effective organizational structure, and need to establish corporate level goals which will help an organization in influencing competition in an industry. Analyzing the structure of competitors can assist marketing manager in identifying the objective of competitors (Arkadan, Macdonald and Wilson, 2017). It will also support marketing manager in developing the tactics or plans providing the appropriate response to the action taken by competitor.
Competitor assumption – An assumptions made by the competitors are dependent on regional factors. These assumptions can be related to the trends in an industry, past experience, position of competitions etc. All constituent has direct as well as significant influence on the market plan as well as customer policies of firm. It is required by marketing manager in Tesco to gather the information about the assumption made by its competitors and foundation for the same. As this will help firm in ensuring the success in an industry and gaining the competitive advantage in the market. This activity will support marketing manager in determining the suitable strategy which can be applied in the highly competitive market. It also help san organization in exploring as well as capturing several growth opportunities.
Competitors capabilities –this factor including present strategy and assumptions exemplify the way Tesco competitor wants to respond to competition but the competitor’s potential and resources determine the way they quickly and effectively provide response to the competition.
Competitor’s strategies- It is required by marketing manager in an organization to keep check on the plans made by the competitors. There are mainly seven elements in marketing mix are:
Product: Tesco offers a big range of goods including electronics, food, clothing and also financial services. Marketing manager in Tesco has plan to expand product line in order to cater the needs as well as demands of customers. An organization also provides wide variety of choice ranging from brand, regional produce, type etc.
Price: The marketing manager in Tesco Company has focus on the lowering the price as well as delivering the good quality of products to customers. There are numerous measures have been taken by employees towards helping the firm in achieving the target of gaining customer loyalty. It is required by manager in an enterprise top implement technology at workplace. As this strategy will assist company in improving or maintaining the quality of goods and delivering products top customer at reasonable price. Low pricing strategy has provided Tesco an ease in entering into new market. It has enabled firm to achieve leading position in an industry. An organization has introduced club card system in order to provide the additional benefit or incentives on the frequent purchases made by its customers. This strategy has helped business entity has supported an organization in providing high level of satisfaction.
It is required by marketing manager in Tesco to launch several offers and provides discounts .As this strategy will assist an enterprise in attracting more number of customers. It will also help business entity in increasing sales as well as profitability. Low pricing and other strategies will also assist firm in improving financial performance of company.
Place: Tesco has many stores or retail and retail outlets located in both domestic and international market. These stores have helped an organization in delivering the products or services to customer at different locations. Retail outlets are established at the center location of the country in order to provide customer an ease in getting access to the services or products offered by organization. By facilitating the research marketing manager of Tesco has realized that its clients are not comfortable with the big outlets and due to the limited resources, it is not all possible for Tesco to open more big outlets (Steenkamp, 2017). An organization has online as well as offline distribution channel which has provide firm an ease in reaching to the wide number of customers. Marketing manager in Tesco has created the official websites from where the customers can get the complete information about the company as well as products or services offered by an enterprise. Business entity seeks to enter highly competitive market.
Promotion- it is considered to be as important element in marketing mix. Low pricing strategy adopted by Tesco has enabled firm to attract more number of customers and attract more number of buyer. The objectives of the company are to enhance its reputation and get brand recognition in the market. Business entity in order to achieve such target has taken high initiatives as well as efforts to fulfill their commitment. This strategy has helped an enterprise in delivering high level of satisfaction to customers and gaining their loyalty. It has also helped business entity in increasing profitability (Fotiadis and Folinas, 2017). Discounts have been offered by the company for attracting consumer. In addition to this an organization has also used various marketing tools such as advertisement, internet, print media, for promoting its brand, products and services. Tesco also offers many attractive offers to its customers. Business entity intends to provide memorable shopping experience to clients. Easy accessibility and availability has also helped Tesco acquire more loyal customers. Marketing manager in Tesco utilizes mainly online platform for promotional activities which h helped an enterprise in reaching to m number of customers. It also allows business entity to gain customer loyalty by communicating business objectives. By utilizing the internet business entity has able to provide payment and self-service options to customers.
Physical evidence- Tesco company does not have much resources to invest on the redeveloping its infrastructure or designing its outlets. Still an organization has attractive store. All retail stores of Tesco are located at the location from where the customer can easily access the services or goods offered by company( Datta, Ailawadi and van Heerde, 2017). Manager in Tesco have much focus on maintaining the quality of products and persevering the financial resources which could then can be used for dealing with difficult situations. As this strategy will also help firm in reducing the negative effect of changes in economical factors on its marketing or other business activities.
Procedures- the several procedures are created by marketing manager in Tesco for delivering services and high level of satisfaction to customers. Such as speed billing system has been implemented and easy acquirement of product in its stores offline and online are provided by business venture. Manager in Tesco has appointed the skilled as well as competent employees for handling and managing the processes(Eggert, Ulaga, Frow and Payne,2018). An organization has focus on developing the understanding about the problem faced by customers when availing services or products and emphasizes on delivering suitable solution to client.
People - Employees working in sales as well as marketing department has supported Tesco in achieving success and fostering growth. Workers has encouraged an organization to facilitate innovation which has further assisted business entity in influencing people to test the product .Employees has also helped an enterprise in identifying new solutions for eliminating the barriers which might occur in organizing the marketing campaign for promoting product or services and also generating brand awareness (Tomczak, Reinecke and Kuss, 2018). Manager in Tesco have focus on making the p[roper training arrangement for workers those who are associated with sales or promotional activities. As this strategy will help workers in developing the skills or core competencies which are required for solving the customer problems , handling complaints by clients and also for understanding the needs of shopper.
It has been concluded from the project that unique selling approach adopted by an organization assist a firm in differentiating itself from competitions. Report has also conducted that Tesco company is performing well in the market and has great scope to foster growth. It has been concluded from the assignment that marketing management is very important in order to accomplish several business objectives. Study has successfully explained the various macro as well as micro environmental factors which might have effect or influence on marketing activities.
It has been suggested to Tesco that instead of concentrating on the expansion, business entity need to focus on improving marketing activities. Studies have suggested several strategies which can be adopted by an enterprise for improving its promotional activities. It has been suggested to the marketing manager in an enterprise to conduct market audit at regular interval of time. As this strategy will assist business entity in identifying and capturing market opportunities. It will also assist organization in developing as well as gathering the depth information about the market which is very important in order to develop suitable marketing plan.
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