Last Updated 12 May 2020

Tesco Marketing Techniques

Words 1539 (6 pages)

Marketing is the term where companies create their products or services awareness into the market. This goes ahead with identifying the customer’s needs and then working on purpose. The customers found to be in the centre of the whole process as they help in profit making. Marketing techniques can be defined in to different strategies which are:

Growth strategies: It is the strategy which always aims high and tries to get as larger shares in the market as it can.


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Diversification is when a business introduces a new product to new a new market. It is one of the great ways to seek the profit by introducing new products and hoping to sell. This can be done in either corporate level or business unit level. Business unit level is when At the corporate level, it is generally [and it is also very interesting entering a promising business outside of the scope of the existing business unit. The business level is where a company may invent a new product in a new area. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix: [pic]

Market penetration: Market penetration is attracting more and more people from market. The companies enters the market in the aim to conceive more customers from their chosen segments to buy certain products/service. Market development:

Market development is when a business introduces the same product/service to a different market. An example for this can be Mega bus start running in Laos. Nothing is changed about the service but it’s just extended to different county. Product development:

This is the certain situation when a company introduces a new product to the same market. Survival strategies: This comes under the situation where companies consider the daily needs without making long term goals. Branding:-

Branding simply includes all sorts of items which make up the companies identity. This includes a logo a name for example centre parcs and a slogan. This stops other companies to use the same name as the other organisations as creates the unique ID of each business. Branding is the key to success for a business. A customer would buy more products from the well known and trustworthy business. Of course, if a company have a great brand influence on their customers, they can they can then look further to sell new products to their exciting customers with less risks of failure with the help of their brand name.

Brand building and positioning:-

Brand building is defined as making a specific image in customer’s mind of a certain company. This basically means for example Mercedes-Benz stands for high performance, prestige and safety. It can be achieved through many ways such as choosing specific letters of words for the name of the company. The slogan can also describe specific company’s name for example JUST DO IT represents Nike. Furthermore some business’s train its staff to represent a convinced image to the customer. A business would consider how the brand is positioned in the market. Strong brands have clear and a unique brand in the market. Communication also takes a key role in building a well strong brand of the company. The brand value is depended on the customer’s awareness. The communication between the customer and the company is the key fact which creates the brand values in the eye of the consumer.

Brand extension:-

Brand extension takes place once a brand is been fixed in a market. It is the strategy where a company would produce new products or services with the same brand (Name, slogan etc) by hoping to extend the business. For example Nike has extended its brand from sports shoes and clothe to electronics with Nike product range.

Relationship marketing:-

Relationship marketing is the methods which are used to make a long term relationship with customers in order to retain them. This kind of marketing is mostly used in the organisations like banks. They deal with customers by introducing them with such kind of offers which will not provide as much profit however will retain the relationship.

Transactional marketing is the form of marketing which would not consider as much but on a single transaction with the expectation of developing relationship with the customer. This certain type of marketing would not allow for brand building. Building brands and relationships is vital for customer retention which is why most companies are leaning that way.

Centre Parcs use marketing techniques in order to create awareness for customers of the organisation. There are several ways in which they identify the needs and achieve the wants of their customers. They use both growth and survival strategies to achieve its objectives.

One of the technique that centre parc uses in the term of growth strategies is market penetration. The attract the existed market by putting news on village of what’s on break period. This helps to attract those living customers for example if Mr john had stayed in hotel for two days, after hearing what’s on a new offer on for a next day after would might persuade him to stay a bit longer. Furthermore the use of centre parcs website informs the people about their new offers on for holiday break. As people who are interested would visit the website and the new offers can conceive them to stay. Websites also works in the survival strategies. only describes centre parc which means it helps in branding its name. Moreover the website contains the information such as its achievements and the success which positions the brand.

The use of email and Enews letters helps to inform the customers about the upcoming offers and what’s on the break time. This also helps in survival strategies as it build long term relationships between a consumer and the company. Centre parcs have special offers for their existed customers. This process is known as relationship marketing. They build the brand by the use of publicity of the company via press and online broadcasts.

Centre Parcs use social media in market development. The type of social media they use for example is face book and twitter. This spread the awareness of the organisation. For example people who are not interested in visiting special websites or reading brochures can use social networks in their spare times to find out what’s going on out there.

Brochures are another way which helps in branding. This helps in brand awareness. Product development is used when a company introduces a new product to the same segments. This is done by the use of email, brochures and website as the information can be reached to the customers.

Another marketing technique which Centre Parc uses is TV Advertising (Jan - March annually. This is the secondary marketing technique which means that the organisation don’t use this as much as others. They advertise this from January to March due to many reasons. One is the advantage because this is during the time when people make plans for their summer or easier holidays term. Another is as TV advertising is cost effective so they can not advertise through TV for though out the whole year. TV advertising can get many customers as TV is one of the most common and easier way to brand the awareness of organisation as high number of people found to watch TV then using internet or reading new letters especially the aged people. Tesco is another example of the organisation which I will use in order to see the differences between their marketing techniques. This chosen organisation also uses marketing techniques in order to create awareness for customers of the organisation. There are several ways in which they identify the needs and achieve the wants of their customers. They use both growth and survival strategies to achieve its objectives.

Tesco marketing strategy has been driving a vast marketing campaign. One primary marketing technique they use is the mailing system. They email their clients based upon demographic and transactional data. As the objective of Tesco is to provide existing customers with the est quality of products of their needs and wants. They are working on diversification as they are now expanding the company as world wide. The thought of opening a new branch in china covers the diversification as it wil provide new market (people in China) with a new product service.

Tesco's marketing strategy has been based around a database strategy driving a huge direct marketing campaign. There customer base (as recorded by the details provided by the hugely successfull ClubCard Scheme) almost exactly mirrors the demographic make-up of the UK. Simply this means they have somehow managed to be all things to all men. They have between 7m and 8m different variations on the mailings going out to their clients based upon demographic and transactional data. The objective has always been to up-sell to their existing customers through acquiring better customer data and meeting their needs. Now, through providing customers with what they want, the most significant strategy has been aimed at increasing the non-food section by capitalising on the growing need for one-stop-shopping created by an increasingly time-starved population

. They do this with very powerful computer databases and mathematical techniques, each customer has a category based on what they buy, eg value goods, health goods, and they will offer you promotions to try to get you into the next highest spend category.

Tesco Marketing Techniques essay

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