MARKETING PRINCIPLES

Marketing Principles

Table of Contents

TASK 12

Marketing Process2

Benefits and Costs associated with Marketing Orientation or Tesco3

TASK 24

Impact of Micro and Macro Environmental Changes4

Segmentation Criteria for Tesco4

Targeting Strategy for Tesco's Ice Cream5

Buyer Behaviour and Marketing Strategy5

Proposed Marketing Position6

TASK 37

Gaining Sustainable Competitive Advantage7

Customer Convenience - The Case of Tesco7

Pricing Strategy and Organisational Strategies8

Integration of Promotional Activities into Marketing Objectives - Example of Tesco9

Additional Elements of Marketing Mix9

Physical Layout10

People (Customer Service)10

Processes10

TASK 411

Marketing Mixes for Market Segments of Tesco11

Difference between Marketing Tactics used for Customers and Business11

Marketing Locally versus Marketing Internationally12

REFERENCES13

Marketing Principles

Task 1

Marketing Process

According to the literature, the marketing process is a five-step process with the following steps.

Analysing the macro and microenvironment for marketing opportunities

Selecting a target market

Deciding on a marketing strategy

Formulating a marketing mix

Implementing Marketing Control

Consider the example of Starbucks for practical application of the marketing process. First, the former marketing chief and the current CEO, Chairman and President of the company, Howard Schultz began with closely analysing the changing dynamics of the macro and microenvironment to explore any possible marketing opportunities. Schultz realised that there is ample potential to revamp the coffee culture of the United States to ensure that it could closely resemble the coffeehouse culture of Europe (Ellis et al., 2010, p. 41). Second, Starbucks decided to target young, urban, upper middle class and upper class customers who would be willing to pay for a “coffee with a refreshing experience”. Third, the company decided to follow a marketing strategy that would aim at creating a blue ocean in the coffee industry of the United States. Fourth, the organisation formulated a marketing mix that assisted the company in, simultaneously, inventing and capturing this new market. Lastly, the organisation uses its marketing effort to keep a close eye on the changes in the industry so that it could adjust its strategy and marketing mix to cope up with the changes in a better way (Stevens, et al., 2012, p. 79).

Benefits and Costs associated with Marketing Orientation or Tesco

Much of the success that Tesco has enjoyed over the past few decades has been a result of Tesco ability to follow, religiously, the marketing orientation. First, marketing orientation has allowed Tesco to show more responsiveness to changing customer preferences, needs and wants; thus, it has allowed the company to better satisfy the customer demand. Second, Tesco has a market share of over 30 percent in the UK retail market, which is almost 200 percent of the market share of Asda and Sainsbury, retailers that rank a distant 2nd and 3rd in the UK retail industry (Cant, et al., 2009, p. 127). The point here the ability of Tesco to provide value to its customers has escalated customer satisfaction and subsequently, customer loyalty levels. Third, companies like Tesco that follow a marketing orientation are less likely to spend their time wandering around for competitive advantage in other aspects of their business since their ability to generate superior value for their customers becomes their greatest sustainable competitive advantage (O'Reilly & Kerrigan, 2010, ...