The Elements of a Marketing Process - Coursework Example

Marketing Principles The Elements of a Marketing Process In the modern day, marketing is a critical procedure in virtually all business organizations. This results, owing to the perceptible competition within diverse business organizations, and the continuous globalization that significantly affects the nature of business (Kotler and Armstrong, 2013). Besides, incessant improvement in technology and innovations within the marketing structures compels various investors into considering various marketing processes as such are the case of Tesco Company Limited. Tesco Company Limited operates numerous supermarkets and hypermarkets within the UK, making it one of the key players within the UK retailer markets. The firm also operates other businesses within various nations such as Malaysia, Ireland and Thailand. Recent survey shows that Tesco is the current leader in the retail industry, owing to its use of various elements of the marketing process. Such involve production orientation. Production orientation aims at reducing costs, and thereby increases on the profits (Bush and Shelby 2011, 26). Besides, Tesco Company also incorporates Product orientation within its businesses. The products sold within Tesco retail outlets prove to be of high quality, owing to the increasing number of Tesco’s loyal customers. The firm also orientates itself in the sales and marketing aspects. One of the key objectives of Tesco is to increase in its sales. However, this is not possible without the key consideration of the target markets (market orientation). Besides, since the customer is the most significant individual within Tesco, they endeavor to know the various needs and wants of the customers (Leadley and Patrick, 2004, 402). As such, the products availed for sale by Tesco emanates from various from the research on the various product development and improvements with a key consideration of the consumer needs. The firm also incorporates the 4Ps (Product, Price, Promotion and Place) of marketing. Benefits and Costs of Tesco’s Market Orientation Though marketing orientation is critical in the marketing process, Tesco ought to incur dissimilar costs in this endeavor. However, the benefits of marketing orientation are fulfilling. Tesco’s marketing orientation aims at critically meeting the needs of the consumers, and thereby makes timely transformations of the products, based on the customers’ needs and the ongoing research customers (Leadley and Patrick, 2004, 402). Tesco evidently conducts numerous researches, and this research has enabled the incorporation of a wide range of products that include mobile electronics, fuel, and other assorted products under Tesco Company. Tesco marketing orientation has capacitated the firm t increase the number of loyal clients across the various nations where they conduct business. Besides, Tesco’s reputations of diverse innovations and technological improvements are perceivable. For instance, Tesco consumers’ Clubcard has been significant in attracting and retaining a strong client base. Tesco has also significantly increased efficiency across its retail outlets, particularly in the UK. The incorporation of technology has also increased the customer base, owing to the emergence of online customers. This has enabled the firm to have a significant growth, thereby making it the third leading retail firm within the UK. The profit maximization within the firm is also evident, owing to the continuous expansion and incorporation of diverse products and services under Tesco business. However, this comes at a significant cost (Kotler and Armstrong, 2013). Tesco ought to embark on employing dissimilar skilled individuals, tasked with the responsibility of conducting these researches, and negotiate with various firms for collaborations. Additionally, the decision-making process within the firm may be slow. Additionally, since the firm operates numerous retail outlets within UK, the central management of these firms may prove to be challenging. The introduction and management of technology-oriented sales also prove to be extremely costly. Macro and Micro Environmental factors influence on Tesco Various internal and external factors have a significant influence on how Tesco Company operates it business. While looking into the macro environmental factors, one ought to consider the PEST analysis. To begin with, the political factors have significant influences on the way Tesco conducts its business (Kotler and Armstrong, 2013). In the UK, the government policies endeavor to promote a fair platform for various business firms to conduct their operations. As such, the firm has grown tremendously, leading to its significant expansion in other nations. However, Tesco may implement various policies that do not auger with the policies of the government. For instance, the case of Tesco practicing unjustified business practices received critical opposition from the government. Such practices involved Tesco’s purchase of vast land tracts aimed at discouraging competition. Additionally, Tesco once involved itself in anti-competitive practices, in the pricing of their milk products. Economic challenges such as the recent economic recession significantly influenced the consumers purchasing powers within UK and significantly reduced sales within Tesco retail outlets (Kotler and Armstrong, 2013). Social factors also significantly impacted Tesco sales. Owing to the shift from buying junk foods to healthy foods, Tesco sales increased significantly since these products were available within their outlets. Technological advancements have also increased Tesco sales, owing to the introduction of online sales. The consumer base has increased significantly, leading to increased sales. The microeconomics had significant impacts in Tesco’s business conduct. The availability of loyal customers, owing to the marketing orientation crucially boosts on Tesco’s expansions (Leadley and Patrick, 2004, 402). Besides, Tesco has strategically positioned itself, in their endeavor to have an advantage over its competitors. Tesco also conducts imperative researches, in order to increase the supplier base, making it a leader in the sale of diverse products. Such include Technika and Telecoms among others. Marketing Segmentation Criteria for Tesco and Easy Jet It is critical for Tesco and Easy Jet to create subdivisions to within their respective firms, in order to ascertain that the needs of customers within various environmental settings. For Tesco, the firm controls an imperative number of retail outlets within UK and other nations such as Ireland and Malaysia. The firm endeavors to provide products, based on the specific needs of these customers (Kotler and Armstrong, 2013). The collaboration of Tesco and with numerous suppliers, particularly in the UK has critically capacitated this segmentation. Additionally, Easy Jet also has segmented its markets based on price. Most individuals opt to use other means of transport, based on the price factor. As such, Easy Jet provides cost effective mode of air transport, thereby making numerous client resort to this transport mode. Additionally, the operations of one category of flights significant serve to reduce unwarranted costs for the firm. The firm operates short distances flights, thereby attracting clients who may opt to travel by air instead of motoring. Besides, the firm also links travelers of long-distance travels via its numerous airports that reduces direct competition from other major airlines within the UK and globally. Buyer behavior and impacts on Tesco Marketing Activities Marketers working in Tesco ought to consider various buying patterns of their customers, and consider improving on the products that are highly demanded, and look for ways of promoting other products. It is also critical for the employees mandated with the marketing plan within Tesco to consider the consumer psychology when it comes to purchasing diverse products (Kotler and Armstrong, 2013). The consumer buying behavior may have significant impacts from consumer needs, price, advertisements and capability of the consumers to purchase various items. As such, at Tesco, the marketing managers ought to settle on marketing research on the buying behavior of their clients, and embark on satisfying their needs. Owing to Tesco’s ability to regulate prices and promote their products through various advertisement means, their customers are perceived to purchase the most popular products that are also cost effective. New Product Positioning for Tesco A key aspect to consider when understanding the marketing of a commodity is the positioning of the product. This point becomes even more important if the commodity is new to the market. In the case of Tesco, there is the marketing of new flowers from the company. The positioning ought to be in a manner that it accommodates for fast transportation of the commodity (Kotler and Armstrong, 2013). It is thus important for a company to ensure that it incorporates the use of new and faster airplanes to ensure that the commodities arrive at their destination and in appropriate condition. In a collaboration with the mobile manufacturers, Tesco ought to position their mobile devices, in order to ascertain that the product overcomes the stiff competition from other business institutions. Product Development to Sustain Competitive Advantage using a Mobile Phone Seller There are many companies in the modern world that deal with mobile phones solely. This creates a significant amount of competition in the market and thus it is necessary for these companies to stay ahead. One of the ways through which these mobile phone sellers ensure that they have a competitive advantage is by incorporating new designs in graphics that make them more attractive as compared to those of the other mobile phone sellers. Another manner through which the mobile phone seller ensures that they stay ahead of rival phone sellers is by having new applications in their mobile phones that are bound to capture the attention of the customers (Leadley and Patrick, 2004, 402). Focusing on the memory capability of mobile phone is another issue that the mobile phone sellers use in order to lead in the competitive mobile environment. This is by ensuring that the mobile phones they sell have a high memory-holding rate and thus attract a high number of customers. As such, Tesco has initiated the sale of assorted iPhones from its collaboration with Apple International Company. Survey also shows that Tesco surpassed their initial target sales. Arrangement of distribution to provide customer Convenience by Tesco In order to ensure that Tesco never inconveniences customers, it has ensured that it has a well-elaborated distribution structure. After the products leave the company premises, various tracks are always ready for the transportation of the products (Leadley and Patrick, 2004, 402). The vital commodity of all the ones that this company distributes is grocery. Grocery is important for the commodity is highly perishable and may spoil fast. It is thus essential to understand that these distribution tracks are lined with freezers to ensure that the commodities reach the target market in a proper condition. For the distribution of other commodities such as furniture, the company has various warehouses where individual customers and wholesale sellers can get to them and then distribute to their clients. There is also the distribution service that involves the provision of the products to international customers through agents. Setting prices to reflect Tesco’s objectives and market conditions. Tesco is very careful when it gets to the setting of prices. The key concept of the extra care is the fact that if it sets the prices too high, this may not auger well with the prevailing market conditions (Kotler and Armstrong, 2013). Moreover, if the company sets the prices too low, this may affect the company with regard to the objectives that it had previously set. It is thus imperative to recognize that the company sends out marketing professionals when the market conditions are not appealing. By sending these people, it aims at having these people market the commodities in a manner that they convince the potential customers the importance of purchasing Tesco commodities at the initial set prices. This marketing is by showing the superiority of these commodities as compared to those of other companies and this is done by offering insight on the various positive characteristics of the commodity. This is effective in that the company gets to retain and get more companies without changing prices because of market conditions. Moreover, the objectives of the company are still in line. How Tesco integrates Promotional activities and Elements of Marketing Mix Tesco has successfully managed to remain on top of its industry. The company has done this through the incorporation of the extended marketing mix. One of the ways through which it has attained its position is by having appropriate promotional activities. One of the effective promotional activities is through marketing. The company has engaged in different marketing models one being through advertisements where it has promoted its commodities by advertising in newspapers and websites. Another mix that it incorporates is place (Kotler and Armstrong, 2013). This is by determining the place where they are to market their commodities and it always ensures that the location is convenient for customers. There is also the price of a commodity, which significantly determines the success of a commodity, and the company has done this by effectively setting fair prices for some of its commodities. Marketing Mixes for Two Different Segments in Consumer Markets One of the key commodities offered by Tesco is furniture. One of the most popular marketing strategies for the company is through promotion. Plan with regard to the sale of furniture is quite comprehensive. Looking from the planning front to the lower class sector of society, the best manner to do this is by marketing through planning personal selling to convince the customers (Kotler and Armstrong, 2013). Additionally, Tesco ought to consider the price at which these products sell, and enhance cost effectiveness. While focusing on the upper members of society, it is appropriate to note that the best plan to incorporate with relation to this is by having the furniture sold at auctions in order to get high bidders. Disparities in Marketing Products and Services to Businesses Rather Than Consumers in Tesco There are many differences when it comes to the marketing of products to consumers while compared to the marketing carried out to businesses. One of the factors to consider is that businesses have higher bargaining power as they understand the business and industry thus cannot be sold commodities at high prices. Another difference regards to the amount of products to purchase. When selling to a business, it is assured that the amount of products they will buy is high for their purpose of reselling (Kotler and Armstrong, 2013). However, in the case of consumers, they purchase the commodities in small amounts since they are buying for their own use and not reselling. Differences in International and Domestic Marketing In Relation To Tesco PLC International marketing and domestic marketing are two different concepts and this can be seen from the manner Tesco performs both from a local and international perspective. The company has developed over time and has even created branches in other countries. However, it is appropriate to understand that domestic marketing has improved and increased greatly in Britain. The rationale for this emanates from the fact that the country has embraced the company to a manner that it has remained loyal and promoted local business (Kotler and Armstrong, 2013). The company has not succeeded this well over the past years in international, owing to the complexity in finding loyal customers in international areas because there are many and diverse companies, as opposed to the localization in Britain. Bibliography Bush, Ronald and Shelby, Hunt, 2011, Marketing Theory: Philosophy of Science Perspectives, Marketing Classics Press, Texas. Kotler, Philip, and Gary Armstrong, 2013. Principles of marketing. 6th European ed. Pearson Education Limited, Harlow, England. Leadley, Peter , and Patrick, Forsyth. 2004, Marketing: Essential Principles, New Realities Kogan Page Series, Kogan Page Publishers, London. Read More