STRATEGIC MARKETING MANAGEMENT

Strategic Marketing Management

Strategic Marketing Management

Introduction

Consumers Lifestyles are changing rapidly in this growing market, it a very challenging task to grab attention of our consumers with so many products in the market. Marketing has been viewed before as simply taking orders from our customers. Today, in this dynamic world the most vital task is to achieve customer loyalty. Environment keeps on adapting changes with time; the organization should understand how consumers change their buying behaviour and perceptions. (Wilson, n.d, p.2)

A global Retail chain company scattered all over the world needs to focus on both internal and external environment. The marketing function helps an organization to increase their sales and promotional activities. Retailers are dealing in a growing competitive market; they need a competitive advantage over others for effectiveness (Theodoridis.K, Panigyrakis.G, 2011,p.33)

Tesco is a well-known and world's leading supermarket which dominates the whole retail industry. Worldwide it is operating 2318 stores. It also operates in Asia and Europe. The vision of Tesco is to achieve customer value, providing services to the community, having committed employees, continual growth opportunities. The diversification includes food and non food lines, clothing sector, health care products, personal finance, petrol retailers, tesco.com and company owned labelled products (www.tescoplc.com p.1). The company has been founded by Jack Cohen; the first store had been established in 1929. Today, Tesco is a conglomerate business which means it is a diversified business. It is the strongest and biggest British retail outlets (www.thetimes100.co.uk p.105)

Discussions

Current changes in the marketing environment

Marketing environment consist of a number of forces which directly or indirectly affects the performance of an organization. The external forces, which are uncontrollable, and can exert little influence, have been included in the industry analysis of an organization. It includes political, economic conditions, technological advancement and competitive analysis. (www.mhhe.com, p.49)

According to (2012) Tesco is entering an era of change and development. This is very significant in the role as a profitable & strong company. In order to attain success in this moderate growth market, companies need to have a planned marketing strategy. The crucial issue is to manage change which results in the business overall benefit. The company needs to exploit the opportunity for a company's following benefit and long term objective. Tesco is willing to explore new opportunities for the long run. In case of minimum profitable earnings, they avoid taking risk. They wait for pursuing better opportunities (Anonymous, 2012,p.1) According to a report given in 2012, Tesco highest sales growth was 7.4%. Profit margin was modest because of its international performance.

Economic environment

Economic factors have a direct impact on choosing a particular strategy for any organization. It includes economic conditions of a country, Inflation rates, interest rates, unemployment trend in the market and tax rate of a particular country. It also includes the government policies, economic trends and pattern of a country. These factors have a great impact on the marketing activities. The economic variable having significant value in strategic planning, will lead to gross domestic production, especially across ...