Marketing is the most important tool in the developed industries. It includes the knowledge of market place, demands of consumers, building profitable relations, customer driven market strategy and provide quality among the customers. The business organizations have analyzed the importance of customer relationships and they are taking initiative to get a creative approach towards marketing strategy in the business. The knowledge related to marketing essentials is too high in the recent market environment around the world. The key concepts of marketing startegy include situational analysis of the company, competitive analysis, market research, marketing mix etc. This report focuses on the marketing essentials in business organization. It describes the roles of marketing and their interrelations with the other functions
a) Key roles and responsibilities of marketing function
Marketing function can be described as the roles of the business organization which helps in identifying and source potentially successful products in the market and also helps in promotion. They are the common functions in the organization and include marketing research, product plan, development process, promotion, sales, etc. The functions are responsible for the growth of the organization and involve strategy management, marketing research, sales support system, distribution system, etc. The key roles and responsibilities of marketing function are market research, finance, product development, communication, etc. They have the important role in the business organization. Marketing functions have a close link with other organization function within the workplace. Universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking and market information.
The relation between the market functions and other functions shows the connections of functional unit with each other. This can be described as marketing are required to backup by the other operational departments as well as to perform effectively. When a company formulates a plan they need the help of the production department, human resource department and sales department of the organisation. Further more if the Tesco team want to give a discount offer on larger quantity of purchase of the product for example buy 3 get 1 free scheme, then the organisation needs to coordinate with the production department and finance department first. The marketing functions are treated as separate identity within the organisation but to increase the productivity the organisational departments connects together. The main objective of the firm is to increase its profit and it can be achieved only if the departments of the company work together. Thus all, the functional departments of the company works together to create a successful market plan in the organisation.
b) Concept of marketing, including the current and future trends
The marketing concept is subdivided into five concepts which describe the centre of marketing at Tesco. These markets concepts include the current and future trends for a successful market plan. The concepts of marketing are: production, product, selling, marketing and societal responsibility.
- Production concept: This concept is based on the thinking of the customer, which shows that the customers are bended towards the low cost products with high quality.
- Product concept: Under this concept the customers choose a product which is easily affordable, quality and innovation.
- Selling concept: Promotion is the major tool for selling a product and customers purchases products which are assertively promoted in the market.
- Marketing Concept: The marketing concept elaborates the need of concentration over the targeted customer for the distribution of goods and services. Moreover to have a competitive advantage, the company needs to produce better value of products and services.
- Societal Marketing concept: This concept depicts the focus on the targeted customer needs so that the consumer will choose their product over the other products brand in the market.
c) Roles and responsibilities of marketing with respect to marketing environment
The marketing management refers to the process of planning and implementation of the different concepts of marketing. The marketing concept includes pricing, promotion, distribution, sales, etc. The roles of marketing are discussed.
- Market strategies: The major role of the marketing shows the development of marketing strategies and planning for the organisation. The needs and requirements of targeted customers must be analysed by the manager of the company so as to give satisfaction to the customers.
- Marketing information system: The marketing information system provides information related to different factors such as product, planning, implementation, controlling of the marketing strategies.
- Monitoring of market environment: Marketing have a major role in the determination of new innovations in the marketing environment, these innovations provide a good response to do innovation in the products and services of the firm.
- Marketing research: It is one of the important concepts of marketing. This marketing research includes the particular awareness about the product, price and costumers so that they can deliver the best products and services in the market.
- Market segmentation: The business needs to have a accurate market segmentation due to the modern era of globalisation. This process helps the organisation to increase their sales within the market as it creates a strong value of the brand and company between the customers.
- Brand equity: Products and services which provides added value to their products and services attracts the customers. Therefore marketing helps in building a goowill and creates a brand of the product in the market among the customers. This process helps the organisation to increase their sales.
d) Key elements of marketing functions and interrelations with other functional units of the organisation
Marketing functions includes a various different functions such as advertising, finance, distribution, etc.
The key elements of marketing function are explained below..
Research: In any organisation research place a vital role in an organisation. A successful market research leads to a successful business of any organisation. Research helps in gaining the knowledge of all the useful information about the business processes. It also help in other prospectus like logistics, finance, raw materials, resources and more can be achieved by marketing research. That is why it is treated as the most important function of the organisation in marketing.
Strategy: After doing the research, the data is being collected, the next step is to analyse the advantages and disadvantages of the information or data being collected in the operation of the business. This data helps to make an idea of the procedures which can be implemented in the organisation. These procedures give the advantage and guidance to the organisation to get succeeded or face the competition in the market. The results of which are measurable through research are created by the possibilities in the realistic state.
Planning: The next step after doing research and making strategy is to make a plan. The marketing function includes financial planning, distribution, forecasting of sales figures, communication and other factors of the business. The departments do planning for the successful achievement of the goals and objectives of the company.
Tactics: Tactics is the next key of elements of marketing. Tactics refers to the plans which are for shorter duration to attract the targeted customers. These involves the short plans which is applicable for a limited period of time to do the promotion of the brand or marketing plan like buy 3 get 1 free or discounted offers.
The interrelations of the key marketing function with the other functional units of organisation are discussed:
The connection of the marketing functions with other departments can be elaborated with an example of marketing department connection with the finance department. The marketing function requires money for the implementation, planning and measuring of the marketing strategy which is given by the finance department of the organisation. Marketing Function cannot resist in the organisation without having interaction with the financial department within the organisation. Likewise the marketing function is related to other functions of the department as well. The marketing function needs the correct information about the product from the production department. As the production department have the knowledge about the good and services they produce and it also help in making a effective marketing plan. They also require the need of human resource department for the human resource to work in plan, logistics from the distribution system etc. The marketing operations are needed to be delivered and implemented which is possible only through the link of the other departments within the organisation. For example the HR policies is linked with the marketing department to increase the volume of sales, collaborating to them production department also needs to spread knowledge about the product and services so that they can build a effective marketing plan.
Comparison of application of marketing mix in marketing planning process in different organisations
The marketing mix is implemented in the planning process of marketing for the achievement the group as well organisational objectives and targets. Various methods are being used by the company for implementing marketing mix in company. This tool is mainly laid upon products of company, size of market and organisation, demographics etc. With the help of this the marketers can easily evaluate value of their own product. This approach involves 7P’s of marketing which are: Product, Price, Place, Promotion, People, Process and Physical Evidence.
The customer centric approach of the company Tesco helped the firm to make its brand popular in the international market, because of the implementation of the marketing mix approach in the firm and was focused on the satisfaction of the customer. Many business organisations spend a lot finance in the marketing activities and other core areas of research and promotional and advertisement strategies yet they are not able to get a positive as Tesco. The reason behind the success of the company is using the marketing tools for analysing the market and the customers and creating objectives in regard to customer satisfaction approach. The implementation of the marketing mix strategy in the marketing plan concentrates on the activities of the firm such as product dimensions, place where the product needs to be sold out, pricing structure, promotional strategies, delivery processes, delivering physical evidence to the customer and concentrates on the people.
Different tactics applied by the organisation to achieve business objective
Tactics are being applied to the different organisation culture. Tesco uses the 7 P’s of marketing mix in their marketing planning procedure in order to attain their objectives of the organisation other organisation. Other organisation such as Marshfield ice creams uses the market segmentation process to achieve the objective of the company. The marketing segmentation process of Marshfield follows the discussed process.
First they describe the require market for company for instance marked market. At next, market segment is created. Further analysis of various kind of segments are conducted for specific role. Segment process is constructed. It also measures relevancy of segments. The target markets are then selected. Positional Strategy of the company, is created and taken into action. At last the feedback and evaluation process of segmentation takes place.
Tesco utilise the marketing mix within the company for the achievement of the targets and goals, the process is as follows:
- Product: Customer satisfaction is the main priority of the company. The company produces products and services which are according to the requirements of the cunsumers.
- Place: The products and services of the company must be purchased by the customers with an ease. Therefore the stores must be located near or at a approachable location for the targeted customers. The delivery of the products should be at the door steps of the customers.
- Price: The customer should get a wide range of products at a affordable prices. They should give offers in the products and services for the seasonal periods and should provide money valued products and services to consumers of the product and services.
- Promotion: This involves advertising, sales promotion, social media promotion and more. Tesco is a retail industry which concentrates on personal selling apart from sales promotion and advertisement.
- Process: It includes the way the products and services are rendered by the organisation. For example Tesco produces the products keeping in mind the customer requirements and satisfaction.
- People: It includes management, organisational culture, employees and consumer service of Tesco are important part of the company.
- Physical Environment: Physical environment involves rundown, facilities, comfort and user interface in the organisation.
Basic marketing plan of Tesco
Marketing plan is considered as written statement related to business for describing the marketing position of the company. It also involves the procedures and strategies of marketing which a company adopts for achieving its goals and objectives. A plan usually covers a period of approx one to four years. The main motive of a making a marketing plan is to analyse the course of actions which needed for the organisation for achieving its goals and objectives. For instance, the marketing plan of Tesco might involve the plans to be used for improvising or modifying their business to achieve a higher market share. The plan than determines the procedures to be used for achieving the targets of the company.
Overview of the company
Tesco is one among multinational retailers across the globe and was founded in 1929. The company follows the plans which insisted the suppliers to sell their goods and services at a set price. There are around 2319 outlets and around 326100 employees works at Tesco and has the largest market in UK. The company also produces grocery products which include clothing and non-food items. The three levels at which Tesco sale their own branded products are value, normal and finest.
Vision: The vision is described by the five key elements
- Global wants and needs.
- Increasing opportunities because of the expanding business environment.
- Innovation and great deals of ideas
- Great market share
- Inspiration and winning the loyalty of the consumers.
Mission statement: It maintains the sustainability of the loyal people. It requires the need for determining the loyal customers for achieving its mission.
Marketing objectives: The objectives of the company are connected with each other. These are goals of the company and are for short period of time.
Marketing plan which is tactically applies 7 P’s to achieve marketing objectives
The coherent marketing plan of Tesco using 7 P’s of marketing are as follows:
Product: Tesco provides a variety of products which includes food, clothing, electronics, financial services and more. It has also expanded its business through online marketing sector strategy. It also offers groceries delivery and various choices of products ranging from brand, regional produce, type, international cuisine in food and more.
Price: It follows a low pricing strategy without reducing the quality in its products and services. It also uses a club card system which allows customers to collect points which can be converted into money later on. It is the excellent price promotional strategy of giving loyal customers discounts and offers.
Place: It has headquarter in England and it has its outlets and stores spreaded widely in the world. It has two channels of distribution. The offline channel has six different kinds of stores which are Tesco Express, Tesco extra , Tesco home plus and Tesco superstore and its online channel is Tesco Direct comprises of its official site.
Promotion: Tesco has the major advantage as it has low cost products that gives a advantage over other firms. It also make use of television advertisements, offers promotional strategies, sponsors charitable events and more to do promotion of its product and brand.
Physical Evidence: The Company find a waste in expending money on furbishing its stores. All the stores are clean and hygienic. Navigation of the products is easy and are being kept in well categorised manner.
People: the people involved in the sales department are responsible for increasing productivity and profit of the company. It uses different programs such as Save as you earn, colleague privilege card, etc for their workers. They have a highly skilled staff which contributes to the success of Tesco.
Process: It refers to the way of keeping people happy by doing speedy billing services and easy procurements of the products and services in its online as well as offline stores.
This report concludes the role of the marketing function and connection of it with the other functional departments. The main aim of the company is to provide efforts to the customers to excel in their business. The ways in which the elements of marketing mix can be used in the overall business strategy and to create a marketing plan. It also shows the development and evaluation of marketing plan.