Functional Areas of Tesco

Last Updated: 27 Jul 2020
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A marketing strategy is a process that can allow Tesco and other organizations to concentrate their resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Market research enables Tesco to find out information about their customers needs and wants in a different range from creative surveys to interviewing customers face to face. A customer may be asked questions referring their job or how much income they receive.

Marketing strategy is most effective when it is an integral component of corporate strategy, defining how Tesco will engage customers, prospects and the competition in the market arena for success. Marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, The marketing function at Tesco is aiming to meet their customers' needs and wants in order to keep them happy and content. This will enable customers to keep shopping at Tesco if they think they are saving money or being looked after professional. This will keep competition out from the likes of Sainsbury's, Morrison's, Asda, Iceland, Marks and Spencer, Waitrose and Somerfield.

The marketing function at Tesco has also come up with a marketing technique where they produce different quality products at different price so that a wider range of customers can shop there. The have produced a Value range of products which are aimed at customers with little income. They also have a Finest range of products which are aimed at customers with high income. Other product ranges that Tesco produce are Organic, Healthy Living and Low Fat. The marketing function uses this process so that different ranges of their products appeal to all people with different incomes. These different types of products are also used to suit customers' needs whatever their income is.

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They have produced a 'Clubcard' scheme where each customer is issued with a small swipe card which can be used at Tesco. This creation is used as a loyalty bonus to customers due to shopping at Tesco for that they feel respected and valued for shopping at their stores. Points are awarded to customers when they spend a certain amount of money at their stores. Points can be used for discounting your total of money when spent petrol or diesel.

Each customer's details are stored on their clubcard so that the marketing function at Tesco can view the wants and needs of a customer which are stored on that customer's clubcard. Tesco can find out a range of information from their customers' clubcards as each card will store that customer's name, address and personal information. It may also have results from previous questionnaires that they have filled in. This helps Tesco supply products to their customers which they are likely to purchase if they need them in their every day life. If there was a certain area for instance in England and a high number of people liked a certain product then they would distribute more to stores in that area if they are selling well.

Every company has a unique selling point; this strategy encourages members of the public to shop at their stores. The unique selling point at Tesco is the summary of what they do and how they do something better than their competition to lure customers to them. Tesco's marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Every company uses a process called the four p's. The four p's represent Product, Price, Place and Promotion. The product must meet customers' needs and wants. The price is set according to lifestyle, income and job of the target audience and in line with the competition.

The place is about distributing a product or service from a manufacturer to the customer and must be convenient and quick for the consumer. The Promotion is the brand awareness using methods of communication to promote consumers' interest in product or service. By using variations of these four components Tesco have the ability to reach multiple consumers within their target market. Tesco have created a successful marketing mix that will increase results often takes experimenting and market research. There are many methods that can be used, both in person and the use of impersonal presentations.

If Tesco wants to attract more customers then they would have to promote their business by creating television and radio advertisements and producing posters, leaflets, catalogues, banners and brochures. When producing an advertisement, they will make the product or service look or sound interesting and eye-catching or specify a range of offers in order to draw customers to a certain product, this could be used by doing different camera techniques or equipment.

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Functional Areas of Tesco. (2018, May 13). Retrieved from

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