Unit 4 Marketing Principles Assignment Tesco Services

Program	Diploma in Business (Marketing)
Unit Number and Title	Unit 4 Marketing Principles Tesco Services
QFC Level	Level 5

Introduction

Marketing principle is important aspect of developing and managing the operational and functional activities for promoting the business following the standard approach. It refers to consideration of activities that involve in transfer of goods from the seller to customer by using the different process like advertising, inventory, transportation and distribution. Additionally, term marketing principle used for proper optimization of market opportunities to achieve the goals and objectives of business. The  marketing principles  Tesco services report will explain elements of marketing process that can be adopted by British SME for effective marketing in their chosen areas. It will also conduct the internal and external audit of organization to identify the factors that influencing the growth and can affect in future. Moreover, the report will focus on the development of sustainable products and services for British SME to gain the competitive advantage and explain how the distribution arranges to meet the customer convince. In the next task, report will analyze the segmentation criteria for Tesco and plan the marketing mix for two different segments according to given scenario. For a long time, Tesco, Britain’s biggest retailer could do no wrong: in just 13 years its profits grew more than four-and-a-half times to £3.4billion in 2010. For years, anyone who had dealings with Tesco would come away with respect for the apparent clinical efficiency of its business model. It boasted an incredible 30.5 per cent share of the grocery market. Fast forward a couple of years and the company is regarded as something of a basket-case.

Task 1

1.1 Various elements of marketing process for British SME

For an organization marketing plays critical role to expand the business as well meet the objectives by attracting the target customer using the different techniques. Marketing is mode of offering the information and key features of products and services that can help to gain the competitive advantage. According to Kotler, marketing is set of guideline and process that focus on the communication, exchange and delivery of the products and information considering the need and values of them. This is been consider as social approach for managerial process for organization to achieve the goals and objectives by creating the exchanging the values with others. Moreover, in current scenario organizations are using this process for developing right products, in right place and introducing them at right time at optimum price to gain the attention of the customers (Dudin, 2013). Following are the key elements of marketing process that can be used by British SME to encourage the business:

• Understanding of needs:  For development of marketing plan or strategy, it is essential for organization to understand the needs of the target customers that will help to analyze the trends and perception for developing and design of the products and services.
• Marketing strategy: In this step, marketing department of organization will develop and choose the strategy to market the products and services in cost and time effective manners. For British SME can choose the brand, product and prices marketing strategy (Jobber and Ellis-Chadwick, 2012).
• Customer delight: In order to attract the customer and gain the competitive advantage, British SME need to provides the additional benefits and relationship marketing options. This will help to retain the customer for longer period of time and establish the brand.

1.2 Marketing orientation and cost benefits

Marketing orientation is process that helps the organization to identify and meet the target customer needs considering the values and culture in best manners. If British SME will follows the marketing orientation than will get the following benefits:

• Built the customer value: Through marketing orientation, organization will able to built and meet the customer values that will help to maintain the effectiveness of brand and products sales in the market (C?toiu,.et.al. 2010). For that organization needs to focus on the needs and quality of products that expected by the customer.
•  Long term profitability: Marketing orientation is beneficial for organization like British SME to maintain the long term profitability by offering the additional benefits for customer and managing relation. In current scenario, use of online services for managing the relations are very effective that helps to understand the needs and provide the immediate resolution of issues to retain them for longer period of time.
• Cost of marketing orientation: According to analysis, the cost of marketing orientation is high as organization need to focus on the various aspects of market to develop the strategy. The major cost that organization need to invest is on market research to identify the needs of customer and develop the strategy to meet the objectives. This process also consumes time and requires the quality human resource that can analyze the market as per the culture and values of organization (Christopher and Peck, 2012). British SME will requires the funds in marketing orientation for conducting the research and appointing the  human resources  for analyzing the international market conditions to built the strategy for marketing of products and services.

1.3 Macro and Micro environmental factors have influence on marketing decision

Following are the key factors that have significant impact on the marketing decision of British SME:

• Political factors: For developing the internal marketing strategy and plan, organization needs to consider the political scenario of target nation as rules and regulation of current government can influence the strategy of British SME.
• Economic factor: This is an important factor that manipulates the decision of marketing for organization as rate of currency exchange and interest on borrowing money for developing and implementing the plan have direct impact on marketing activities.
• Social factors: For organization like British SME it will be difficult to make adjustment according to different culture and value of various geographical areas to meet the needs of customers. Management needs to focus on the social values for better marketing planning (McDonald and Wilson, 2011).
• Technological factor: In current time, use of technology in marketing activities is essential as it cost and time effective for gaining the attention of customer by offering the detail information through website and emails. British SME needs to focus on that area for more positive results in marketing.
• Environmental factors: For business organization, environmental factors like pollution and proper waste management is major issues that affecting the growth of business. British SME needs to consider the environmental condition before making the decision for marketing.
• Legal factors: To sustain the business, British SME has implemented legal approach for marketing and development of clot products. IT has positive impact on their brand and customer loyalty       

Micro factors:

• Strength:  The key strength of British SME is to quality and range of products that having positive influence on marketing decision making.
• Weakness: The less use of ICT tools and technology is one of the major micro factor that affecting the decision making of organization.
• Opportunities: For marketing it is essential for organization to analyze the opportunities, if organization is lacking to identify the area where it can expand the business will than it will be difficult to develop strategy for marketing (Peattie and Peattie, 2009).
• Threats: The high competition in market, ecumenical changes and emerging low cost retailer industry are potential threat for organization and having significant impact on the marketing decision.    

1.4 Difference in international marketing and domestic marketing

Table 1: Difference between international and domestic marketing

International marketing	Domestic marketing
It is a large market areas where identification of culture and values is difficult	This is consider small target market where planning of marketing have major influence of social values.
This characterized by traffic and non traffic barriers	There are less barriers in the plan of marketing activities
Requires high amount of investment	Less costly and effective (Welford, 2013).
There are many legal process of licensing and consideration of marketing regulations	Short process of marketing licensing as well as have good understanding of marketing limitation
Requires good and knowledgeable human resource that can deal with different cloture	It is simple as management knows about the needs of the target audience.

1.5 Development of products to sustain competitive advantage

British SME is having good brand image in current market that is helpful in developing and implementing the marketing plan to achieve the objectives. By considering this fact, it will be easy for organization to gain the competitive advantage in market but design, development and delivery of products play critical role in today’s culture. For gaining the competitive advantage, British SME needs to focus on the quality and range of products as it will be for upper and middle class people considering their disposable income. By developing the wide range of products and services organization will able to gain the competitive advantage for long term period. In addition to this, to attract the customer and gain the competitive advantage, British SME need to provides the additional benefits and relationship marketing options (Wright, 2014). This will help to retain the customer for longer period of time and establish the brand as well gain the advantage over the competitors.

1.6 Distribution of products to provide customer convinces

In marketing distribution of products and services plays critical role to maintain the sales and growth in the market. For British SME it is essential to make the products available in market which will help to meet the objectives more professional manners. For that organization could choose the following option:

Online sales: This is effective distribution method in current scenario as people are also giving preference to online buying and selling of products. British SME needs to focus on the online marketing and distribution of products that will be less costly as there is no fund requires for establishing the infrastructure and sales human resources. Additionally, it will be more convincing for customer to choose the products from wide range as well comparing the prices over different websites for more satisfaction (Anderson.et.al. 2009).  

1.7 How prices reflects the objectives and market condition of organization

The prices that set by the organization are reflecting the objectives and market conditions of organization. The objective of organization is to be competitive in the market and entire pricing strategy of the business will be depending upon the prices initiated by the other companies in the market. If the organization is having good response from the customers and profits is good than prices of products and goods are optimum that reflect that organizational market conditions are good. The market condition for the product launch is very feasible as young youth is moving at a very faster phase for the adoption of new products. In order to achieve this objective British SME is going to set out their prices based upon competition based pricing (Mish and Scammon, 2010).  The organization is looking to establish the brand in  international marketing  therefore organization can consider the prices of competitor in market to set the objectives and maintain the growth more profitable manners.

1.8 Promotional activities to achieve the objectives

In order to meet the objectives of business it is essential for organization to choose the activities for marketing according to trends that re more result oriented. For that purpose, organization can choose the online marketing activities in which it can involve social media, digital media and smart phone applications that will help to reach the maximum number of customers. Additionally, , use of technology in marketing activities is essential as it cost and time effective for gaining the attention of customer by offering the detail information through website and emails. British SME needs to focus on that area for more positive results in marketing (Lovelock, 2011). Use of these tools technology will help to achieve the objectives.

1.9 Additional elements of marketing mix

Following are the additional elements of marketing that have significant impact presentation of organization:

People: This is been consider one of the most important element of marketing as British SME needs to appoint the skilled and knowledgeable human resources for designing and delivery of products and services. In that training of staff is also plays critical role as communication and interaction with customer needs to be effective.

Process: The process of marketing provides edge over competitor organization as payment and delivery of products and services of British SME make significant impact on decision making of customer. For that British SME needs to analyze the new standard and process like online and personal selling.

Physical evidence: Physical evidence all about the area which business select for delivering their service. This aspect will be considered crucial for the British SME when they will be operating their activities out the retail outlet (Sunday and Bayode, 2011). Organization can open new outlets at different locations such as malls and supermarket with superior internal to attract the customers.

Task 2

2.1 Segmentation criteria for products and services of Tesco

Marketing segmentation is process of dividing a broad marketing into the subset of customers that will help to develop the strategy more specific manners. According to given scenario, Tesco is facing tough competition from the organizations like M&S, Morrison, Aldi, Sainsbury and Waitrose. To develop market image and maintain the effectiveness in industry organization can segment the products according to demographical criteria. By using this kind of segmentation, Tesco management will able to develop and design the products for different age and income group people that will help to built the customer base as well craft improvement in the planning of the marketing activities according to needs to target customers. Moreover, by using this segmentation criteria organization will able to gain the alternation of the young and middle class income group people which will help to encourage the sales which is the main objectives of organization to meet (Donnelly and   Harrison, 2009). Apart from that demographic profile will exhibit similar purchasing and motivation that would be translated in the design and offering of the products.  Hence, demographical segmentation will be beneficial for Tesco to encourage the business conditions and capture the different markets.

2.2 Targeting strategy for clothing products of Tesco

For introducing and promoting the clothing products, Tesco can use concentrate targeting strategy. By following this strategy, organization will design and develop the marketing activities according to young age people and middle level income group people of UK. In this promotional strategy for targeting the people, Tesco will focus on the values and belief of customer that will have significant impact on the targeting of customers. Concentrate targeting strategy is useful got specific segment planning. Apart from that, for targeting according to this strategy Tesco will also design and develop the clothing products as per the current trends that will help to create the place in market and gain the competitive advantage (Jeffs., 2010). Tesco management needs to focus on the concentrate marketing and distribution of products that will be less costly as there is no fund requires for establishing the infrastructure and sales human resources. Additionally, it will be more convincing for customer to choose the products from wide range as well comparing the prices over different websites for more satisfaction.

2.3 Impact of buyers behaviour in different situation

The buying behaviour of customer has direct impact on the marketing activities of organization. For retail organization it is more important area for concern for developing the strategy and planning of activities. For example, buying behaviour of customer in UK has impact of social standard and living and Tesco need to make changes in the marketing activities to influence the decision of these customers. By using the social and emotional appeal in the marketing activities organization can target the potential buyers and encourage the sales in the existing market. In spite of that, buying behaviour of individual is getting influence as the cost of the products and services (Jobber and Ellis-Chadwick, 2012). This is an important factor that also affects the sales of organizations. Tesco needs to consider the cost of the competitor product and develop the  marketing planning  that highlights the cost benefits for customers.

2.4 Positioning strategy for clothing products

For organization like Tesco, brand positioning strategy would be more appropriate for clothing products. The organization is having good brand reorganization in market of UK and it can avail the opportunity by using the brand name for promoting the products. Organization is one of the leading brands in the retailing industry of UK and having significant numbers of stores at different locations that would be helpful in gaining the competitive advantage over other brands. For clothing products, this type of positioning will be effective as brand Tesco is known as cost effective and quality product offering organization. This strategy will help to improve the efficiency of the organization in the promotional activities of organization as well planning of the supporting tactics to improve the control over the utilization of resources. This would be major advantage for Tesco by implementing the brand positioning and make the decisions more professional manners.  People have trust on organization as it is offering the standard products and services since establishment (Hill, 2013). Hence, implementation of brand positioning strategy for Tesco clothing will be beneficial for organization.

2.5 Marketing mix for two different segments

Marketing mix for two different segments:

• Product: For segments like demographic and geographic, organization will develop and design the clothing products in different range and quality. For demographic segmentation, Tesco will focus on current trends in the market to select the fabric and design of the clothing products. This will help management to gain the competitive advantage over the leading organizations like M&S, Sainsbury and Next which are dealing in quality clothing products. Apart from that, for geographic segment Tesco will develop and design products as per the values and culture of target people.
• Price: The prices of clothing products will depends on the quality and cost of distribution as the manufacturing for both segment will be at one place. By considering this fact the price of clothing products will vary according to requirements and logistics for both the segments. For acquiring the market in both segments, organization could use penetration pricing that will help to gain the attention of the target population (Wright, 2014). According to this strategy, Tesco will set the low prices of clothing products in both segments which will influence the decision of customers.   
• Place: In the current scenario, online order making and delivery of products is in trend that is cost and time effective for both customers and organization as well help to analyze the different range of products at single time. Tesco will give the preference to online distribution as well as make the products available in existing stores for both the segments. The chain of stores for Tesco is very effective and wide as there are no issues for customer convinces for availability of products and services.  
• Promotion: The organization will promote product through celebrity endorsement for geographical segment and use the social media tools for promoting the clothing range in the young people. Both marketing tactics will be effective for organization to meet the objectives. The cost of promotional activities for organization would be major factor in  decision making  of management (Welford, 2013). In order to meet the objectives in both segments, Tesco can use print media for offering the information in wider areas in low investment.    

2.6 Difference between marketing for B2B and B2C

Table 2: Difference between B2B and B2C marketing

B2B marketing	B2C marketing
The marketing in this areas focus on specific organizations to deal with	Marketing activities design and developed for mass audience
The content of marketing plan is need to be specific	It will include general needs and profile of customers
No need of consideration of values and culture for developing the marketing plan	Organization needs to gain the in-depth knowledge about the target audience to develop the plan (Christopher and Peck, 2012).
Highly details content is required for marketing planning	Organization can use past experience and secondary information for planning
It is more relationship driven process	Product effectiveness and brand value

Conclusion

From the above study, it is been considered that use of marketing principles and planning of the promotional activities are having the significant impact on the growth and effectiveness of organization. Report has analyzed the process of marketing for British SME and identified the factors that would have significant impact on the decision making for marketing and development. Additionally, report has explained distribution and pricing methods for British SME to achieve the goals and objectives in specific manners. In the next part report has undertaken the case study of Tesco and provided the information about the segmentation, targeting and positioning of products and services in market. Report has proposed marketing mix plan for two different segmentations for Tesco using the examples for demographic and geographic. Furthermore, report has explained differences between market in B2B and B2C.    

References

Books and journals 
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Hill, P. 2013. Pricing for Profit. Kogan Page.
Jeffs., C., 2010. Strategic Management. SAGE
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