Strategic Marketing Management | Global Edulink, Schemes and Mind Maps of Marketing

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TESCO PLC

Strategic Marketing

Management

Table of Contents

• Introduction
• TASK
  • 1.1 The role of strategic marketing
  • 1.2 The processes involved in strategic marketing
  • 1.3 Relationship between strategic marketing and corporate strategy
• TASK
  • 2.1 Models used in strategic marketing planning........................................................................
  • 2.2 Link between strategic positioning and marketing techniques
  • 2.3 Analyzing the merits of relationship marketing in a given strategic marketing strategy.
• TASK
  • 3.1 marketing techniques to ascertain growth opportunities in a market
  • 3.2 How to use marketing strategy options in a market
  • 3.3 Strategic marketing objectives for a market
• TASK
  • 4.1 The impact of changes in the external environment on a marketing strategy.
  • 4.2 Internal analysis to identify the current strategies and weaknesses
  • 4.3 Strategic marketing responses to key emerging themes in a marketing strategy
• Conclusion
• REFERENCES

TASK 1

1.1 The role of strategic marketing

According to the Guardian (2008) the major role of strategic marketing in an organization is to supply their customers with opportunities that will help them to create a personal value by participating in their brand. Due to the customer relationship, it helps to increase the profit level of the Tesco organization. Strategic marketing helps towards the prosperity of the business. With the assistance of strategic marketing the relationship with the external business factors, competitiveness occurring in the industry, developing the sales targets, quality, price and distribution can be maintained in a high perspective (Nag et al, 2007). In order to maintain the role of strategic marketing quite well the business management should be able to understand the importance of planning the strategic marketing process. Strategic marketing is offering security and guidance to the individuals and the companies through good and difficult times. It gives the power for the management to control the future of the organization according to Strickland (2005). According to Aaker (2008) strategic marketing is a vital element that can be used by companies so as to obtain their targets and goals. Finally in conclusion we can say that the role of strategic marketing in an organization is to see to the fact that the companies reaches their goals, develop the business, future implementations and innovations that could be used to develop the business, developing the relationship among the internal and external factors of the business, its competitiveness, quality of the products, deciding the prices and distribution.

1.2 The processes involved in strategic marketing

According to Kerin et al. (2007) there are many processes such as understanding the customers, analyzing the market, analyzing the competition, researching the distribution, defining the marketing mix, financial analysis and review and revise involved in strategic marketing of a company such as the Tesco Plc.

Understanding the customers analyzing the market analyzing the competition Marketing Strategic Process Review and revise researching the distribution Financial analysis defining the marketing mix Figure 1: Processes involved in strategic marketing Let us see the processes involved in the strategic marketing of Tesco Plc. In order to understand the customer Tesco Plc has being developing a clear picture of their targeted customers by using market researches and analyses. This helps to develop their pain points and benefits. By analyzing the market Tesco Plc is able to find out the market data such as the total available market, trends in the market and the market growth. The next process is analyzing the competition. The Tesco Company, in order to analyze the competition, carries out researches and assesses the strengths and weaknesses of each. The next process involved in the strategic marketing process is the research of distribution channels. By conducting these researches they try to figure out what is the best method which could be used to deliver their products and services to their targeted customers. Next process is the defining of the marketing mix. The sixth process is the analyzing of the financials. For example the Tesco Company put the marketing budgets together and evaluates the projected marketing ROI and customer acquisition costs. The final process is the review and revises. Here the effectiveness of their marketing strategy and revise is extended as necessary. By having a strong strategic marketing process the Tesco Plc has being able to ensure their marketing activities aligned with their goals and targets maximizing the business return from their marketing efforts.

how strong and important each of these is. Let us now see a diagram of the Porter’s Five Forces model. Threats of New Entrants Bargaining power of Rivalry among the competitors Bargaining power of the the suppliers buyers Threats of substitute products Figure 2: Porter’s Five Force Model This framework can be used for a particular industry and all the businesses included in it. Next is the product life cycle model. This consists of five stages such as product development, introduction, growth, maturity and decline. This model can be applied to a product class, product form and product brand. Ansoff Matrix helps an organization to identify existing markets and new markets. The PESTEL model is used to identify the impacts of macro environmental factors on a brand or a product. It includes political, ecological, social, technological, environmental and legal factors. All these are models that are used in strategic marketing planning. Each company can choose the best suiting model for their company in that particular industry. Many organizations such as Tesco Plc choose all of these models for various kinds of situations.

2.2 Link between strategic positioning and marketing techniques

Strategic positioning complies with the developing of products and services and marketing mix in order to obtain a specific place in the targeted customers minds (Aaker, 2008). Positioning is necessary for the perceptual processes of the customers, high competition and the growth of commercial messages. It is allowing the company to gain more information, to share more

customers and to promote the clutter. Marketing techniques are the measurable targets that a company tries to achieve for their target market within a certain time period. The most famous techniques used for strategic positioning are the 5 D’s of positioning. They are Documenting, Deciding, Differentiating, Designing and Delivering. Some organizations such as the Tesco Plc develop their strategy in such a way that it will position them closer to their competitors so that the customers could make a direct comparison when they are purchasing the products. And some companies use marketing techniques such as offering superior benefits depending on its marketing mix strategy. These are the links between strategic positioning and marketing techniques.

2.3 Analyzing the merits of relationship marketing in a given strategic marketing

strategy.

The spirit of relationship marketing is an individual or an emotional connection too the brand. This relationship is centered on the trust which is created through the reliable delivery of a product or a service which exceeds the customers’ expectations. The goal of this relationship marketing is to develop the loyalty between a specific brand or an organization and a targeted consumer base. The merits of the relationship marketing are given below.  Helps an organization such as the Tesco plc to recognize their long term customers  To understand the customer characteristics  Distribution and meeting expectations  Repeat business  Avoids negative transition  Word of mouth marketing  Increasing the customer base  Reduces the marketing cost  Minimize the customers price sensitivity  Product market expansion

segments and development of new products for new market segments. In order to use these marketing strategy options in the market a marketing strategy should be developed. Let us now see how it is done. The first step is to define the products or the services that the Tesco Company offers as well as its intentions determining how beneficial they are to the customer base. According to Stolley (2013) the next step is the establishment of a marketing plan of action in order to position the products and the services of Tesco plc in the market place. The third step is to develop a study on the market in order to determine the type of customer the company is targeting with their products and services. The fourth step is to know who the competitors are so that various options available for the targeted customers can be determined. The next step is to find what is setting the particular product apart from the competition. Next decide a budget and make sure that this plan fits into it. Then determine various marketing methods which can be used to implement to promote that particular product. The final step is to be prepared to response to the changes occurring in the industry. By creating a good strategic marketing plan marketing strategic options could be used in the market.

3.3 Strategic marketing objectives for a market

According to Leroux (2010) strategic marketing objectives of any organization would be to maintain or increase the market share, develop new products, meeting customers’ needs, market positioning and gaining competitive advantage. Product life cycle management is a strategic business approach which is applied by the Tesco plc in order to achieve their strategic marketing objectives. Here the products enter to the life cycle when they enter the market. Profits grow when the product is popular. Competitors’ threats are directed towards the brand image. As the sales saturate the sales declines. For example, the decisions change from maturity to decline. This is how the product life cycle management is done in order to achieve the strategic marketing objectives by the Tesco plc. For example, Tesco’s best grated cheese is in growth phase as the prices at this phase is low.

TASK 4

4.1 The impact of changes in the external environment on a marketing strategy.

Each and every business has impacts made by the external environment. These external environmental factors which influence the business can be identified by the conduction of a PESTEL analysis. Let us find out the impacts of changes in the external environment on a marketing strategy by conducting a PESTEL analysis. POLITICAL FACTORS These factors which affect the business are beyond the company’s control. Tesco’s financial division during the resection showed how the government inspects over the business and the customers’ reaction for this. ECONOMICAL FACTORS Affects the performance of the business. When the demands fell, it lead to the low income and employment Tesco responded by reducing their food costs as it is an essential need to everyone. SOCIAL FACTORS Help Tesco to target their business products and services. The company has a wide spectrum of services. TECHNOLOGICAL FACTORS The internet and consumer behaviors changing towards the e-world affected Tesco Plc negatively as there was a decrease in the sales in the section of books. On the contrary the launching of online shopping made Tesco expand because they had all their products in one place. This allowed Tesco to gain customers as they never expected before. ENVIRONMENTAL FACTORS Relates to social, political and legal factors

4.3 Strategic marketing responses to key emerging themes in a marketing strategy

According to Vladimir (2009) Tesco provides responses to the key emerging themes as a part of their marketing strategy. The responses made by Tesco are:  Re-engineering the process of the business by making changes in the channel of distribution and changing the marketing mix  Attracting their customers through e-commerce by fascinating the website and allowing the customers to order goods online.  Benchmarking their performance by introducing a balance score card.  Re-structuring the cost functions by controlling and reducing the cost.  Building a more market driven global network which is being updated with the world and relationship marketing So, as we can see these are the strategic marketing responses made by the Tesco plc to the key emerging themes in a marketing strategy.

Conclusion

This assignment provides details on the role of strategic marketing, processes involved in strategic marketing, the relationship between strategic marketing and corporate strategy, the models used in strategic marketing planning, the link between strategic positioning and marketing techniques, the advantages of relationship marketing, the marketing techniques used to ascertain growth opportunities in a market, strategic marketing objectives, impacts of changes in the external environment, internal analysis on strengths and weaknesses and strategic marketing responses to key emerging themes. Here in this assignment we can see that strategic marketing management is aiming to assist the company to achieve competitive positioning within a few years. We can say that while developing the marketing strategy it is vital to analyze both the internal and the external factors of the environment and also to identify the opportunities and threats. The organizations should always keep their customers in mind, by creating a value and developing the marketing strategy (Mckeown, 2012). This strategy should also include pricing and distributing systems and define communication methods to customers. The most challenging and difficult task in the process of strategic marketing management is implementing it practically. Tesco Company should identify its weaknesses and response to its key emerging themes in the marketing strategy. In conclusion, we could say that this report covers a wide range of details on the strategic marketing management of Tesco plc.

Vladimir, K. (2009). " The Global Emerging Market: Strategic Management and Economics". Routeledge.