Paper type: Essay Pages: 5 (1150 words)
In this assignment I am going to be looking at the roles of marketing in two contrasting organizations, Tesco’s and the Oxfam. Tesco is a multinational food chain based in the UK and is the second largest retailer in the world after Wal Mart. On the other hand Oxfam is an international charity consisting of seventeen organisations which work together with partners and local communities throughout 90 countries to try and help erase poverty, this is a non-profit company as at the end of the day it is providing a service.
Marketing is finding ways to provide products or services to customers through advertising and promotion. Organizations set up a list of marketing objectives to which they hope to achieve by a certain time goal. Marketing objectives are goals which are set up by the business when promoting its products or service to customers. Tesco’s marketing objectives are offering customers the best value for money at the most competitive prices, they seek to meet the needs of the customers by constantly seeking feedback on service, product quality and gathering opinions and they want to work closely with suppliers so they can build a strong relationship.
On the other hand Oxfam’s marketing objectives are to set fundraising targets so they can try and get as much money as possible raised so they can guarantee that they can help people in third world countries, this means they want to make sure they advertise in the right demographic to ensure that people will donate, there is no point promoting and advertising the charity in a run-down area because people aren’t likely to have enough money to look after themselves as well as giving to charity. Both companies have different marketing objectives because they have different aims at the end of the day, Tesco’s main aim is to make a profit whilst Oxfam wants to make money like Tesco but the money will be used to help people by providing a service. Whilst Tesco state that they want to have a good relationship with suppliers Oxfam have no need for that.
Tesco need a good relationship with their suppliers because they want as much products coming to them to put on the shelves, Oxfam don’t need suppliers because they are a charity and they only rely on the donations that people give to them. Marketing techniques are ways in which a company and try and attract customers to come and buy their product or service. Igor Ansoff developed the Ansoff Matrix which is one of the best known marketing techniques around today. There are four marketing strategies to the Ansoff Matrix; market Penetration, product development, market development and diversification. Market penetration is a percentage of the market that use a service or a product, it is possible to expand your business by growing the number of customers in the current market who have purchased a product from you.
Product development is when a business develops a new product or service to retail to existing customers so if your customers bought a cutlery set, they have the option to buy extra eating utensils or kitchen valuables. Market development is the third strategy in the Ansoff Matrix, this is when you expand where your product is sold, for example if you have a product which is only retailing in the UK, as a business you might decide to expand and sell in in America for example, the product hasn’t changed, it’s just being sold elsewhere. The last marketing strategy is diversification, this is when a business brings out a new product to a new market. There are two ways in which this can happen, related diversification and unrelated diversification.
In related diversification a product will create a product to a market that it is already familiar with or in the unrelated diversification case, the business might try and sell a product into a market or an industry which they have never dealt with before. Branding is another marketing technique used my companies, this is when a business will try and create a name and an image which people can associate with and remember, such as using various images and colours to try and attract people’s attention to make them remember the name. A company wants to try and stand out from other companies so by making sure that their brand is recognisable will attract more people. Once a company builds a good customer base it can start charging high prices for its products as it should have a good reputation and people will be willing to pay a high price for a product they know is good.
Also if someone buys a product from a company and finds that it is good quality and value, there is a higher chance that they will buy from that company again and even consider purchasing another product from that brand. Relationship marketing is where a business will aim to keep a customer who has been using their product for a long time, to the company this customer is very valuable as they have been using their company for a long time and haven’t moved to any other competitors. A company’s aim is to try and keep a good customer base by making sure that the customer still has an interest in the business, if they can get a good customer base they will be able to generate more profit for the company.
Tesco use many marketing techniques to attract customers to come and shop with them, such as relationship marketing, Tesco’s have set up a clubcard scheme, this is when every time the customer shops they scan their clubcard and they get a certain amount of points depending on how much money they have spent, when enough points have been accumulated the customer can get bargains on products or promotions, by doing this customers will be keen to spend a lot so they can gain more points, as a result it means more revenue for Tesco. This makes them stand out from the crowd because although other shops offer this scheme, they aren’t as well-known as Tesco’s so it make them standout, so it makes it unique to Tesco and will make people more intrigued to shop there and find out more.
Aside from the clubcard Tesco have built strong brand awareness, this is through their logo and the slogan that they use. People associate blue, red and white colours with their brand and when their slogan ‘Every Little Helps’ is mentioned most people will know that it is Tesco’s. Tesco’s make their shop attracted to a wide demographic from young children to elderly people and lower-working class to upper- working class people. It gets them all in the stores and then they may well end up buying a lot more than the item they first came in for.
http://business-finance.blurtit.com/3352336/what-are-tescos-marketing-techniques http://www.tesco.com/investorInformation/report95/corpobj.html http://www.ansoffmatrix.com/
BTEC Business Level 3 Book 1 (Edexcel)
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Tesco’s and the Oxfam Marketing Strategies. (2016, May 01). Retrieved from https://studymoose.com/tescos-and-the-oxfam-marketing-strategies-essay