Marketing and Its Components Essay Example for Free

Marketing and Its Comp hotshotnts EssayEnvironmental depth psychology of UKIn order to achieve achievement in implementing some tradeing plan, PEST analysis plays a major graphic symbol because it allows the schemes to do a complete analysis of political, economic, social and scientific flavours of the organization and the recite finish be taken from the example of Tesco UK. The success factor of Tesco buttocks be analyzed from the marting dodging it has assumed in order to drive with the authority customers of United Kingdoms. However, this company has taken all the basic concepts of marketing under conside proportionalityn slice making its strategic plan. Here is the PEST analysis of Tesco UK.PoliticalThe organizations which meet political backup and keeps the political aspects under conside proportionalityn while marketing its service get promulgation within no time. For instance, Tesco is an international supermarket its policies ar always compatible to the regions in which it provides its operate. In UK, it has to a fault kept this thing under consideration and thats why, got exceptional response from the customers. In this regard, avocation steps have been taken It has fulfilled legislative requirements of United Kingdoms There is no violation of Labor law, environmental law, trade law, health and tariff restrictions Policies have been developed keeping the political scenarios under consideration Tesco has also developed its have ethical and sustainability policy keeping the national ethical policy of UK in viewEconomicSince UK market is maven of the most sensitive markets of the world, economic sustainability is another factor that needs thorough analysis in order to flowerpot with any marketing situation. Most of the consumer within UK requires a product that suits not only if their lifestyle but also their budget. Though brand loyalty and institutionalise is also a positive factor that idler buoy be regarded as a strong reason for the success of this organization, still some consumers recollect it backbreaking to buy bely products. Tesco UK has also kept this thing in view and provided polar solutions in the form of competitive prices and sales. However, the economic analysis of Tesco indicatesPotential enthronement of company authorities within UKPayment of taxes on each productAdoption of sensitive price strategyPaying interest rate drawn-out participation in regional economic growthSocialThe analysis of social factors of Tesco UK is as followedTargeting young people for product marketingIncreasing indigence of the international products due to increasing migrantsMulti-cultural customersBargaining power of customersSafety issues like inability of customers to understand product precautionsTechnologicalAs farther as technological factors are concerned, Tesco has also kept this aspect under consideration while marketing its services in United Kingdoms.Automatic payment systemAuto-checking wh ile entering and exiting from supermarketUse of electronic system for cash and balanceImplementation of safety cameras in supermarketsWireless devicesRFIDControl of Tesco over environmental factorsAs far as the environmental factors that are beyond the control of Tesco UK are concerned, it is the competitive forces, suppliers, customers, inflation ratio and technological advancement which have affected sustainability of Tesco in one way or other.CompetitorsPotential competitors of Tesco UK are as followedWal-MartCostcutterCarrefourAs far as online competitors are concerned, they involveEbay UKAmazon UKCustomerAnother aspect that is beyond the control of Tesco UK is bargaining power of customers. The demands of customers vary with the passage of time and Tesco UK has to assume exchange management strategy keeping the changing demands of the customers. In this regard, the factors that can affect Tesco directly involveBargaining power of customersRecessionLimited budget of customersCh anging requirements according to the trendInflation ratioInflation ratio is another aspect which is beyond the control of Tesco UK since there are several factors which contribute in such cases and if this supermarket gives potential discounts on each product that threats the sustainability of their analogy with suppliers. However, this thing is controlled to a small extent through providing different packages and sales in low seasons,Technological advancementSince with the advancement in technology, consumers are also attracting towards online shopping, online platforms have taken the position of strong competitors. A consumer seeks ease through purchasing products from online portal that can deliver the objects at home. Though Tesco also has its own web portal yet the technological advancement makes it complex for this organization to adopt appropriate strategy in each country. However, through adopting timely change management strategy, this organization can deal with such situ ation.Section 2Creating and sustaining competitive utilitysTesco is the third gear largest grocery store of the worlds and there are ample potential competitors which can be regarded as the core vient of this organization. However, still this organization has been gaining competitive profits through sustaining and presume competitive advantage strategy.As far as the core competitors of Tesco in this industry are concerned, Wal-Mart and Carrefour are two leading organizations that compete with Tesco on global level. The reason why it had remained on third position is that it had initiated its service after a long time. However, it is the competitive advantages which it has sustained in regional as well as global competitive market that it has been positioned on third rank among all supermarkets of the world.As far as the strategies in order to gain competitive advantage are concerned, there are several creative and sustainable competitive strategies which can be developed in ord er to gain competitive advantage in this industry. In this regard, doormans generic strategies can be utilized because all the successful organizations like Wal-Mart and Carrefour have gained such position only through assuming exceptional competitive strategy. The first strategy that can be promulgated in this regard is cost leadership strategy which would enable Tesco to offer its services and products to not only national but international consumers and markets in lowest cost. For this purpose, they would also have to control the overall cost of the operations so that they can easily corroborate investment and this price control strategy never affects this organization in one way or other.Through assuming this strategy, Tesco would be able to generate not only potential profit but also competitive advantage as well. If Tesco would use differentiation strategy as indicated by Porter, it would enable this organization to offer its products and services to its customers promulgati ng unique features and value added services that would attract potential customers a lot. This would also give competitive advantage in the form of brand loyalty of customers and double profit. Differentiation can be generated through assuming novel technological feature, providing value added service, exceptional customer service etc. Another option to create and sustain competitive advantage in local as well as international markets is market acuteness.For instance, for Tesco, it might be difficult to assume differentiation or cost leadership strategy since it requires price maintenance. It can also make its marketing sources exceptional. For this purpose, as indicated in Ansoff Matrix, market penetration strategy would prove ample lucrative. It means this organization can gain competitive advantages through penetrating in animate market, find potential sources for promulgating its products and services and then focusing on internal efficiencies in order to come up with the requ irements of the consumers.Nevertheless, Tesco can gain competitive advantage through assuming cost leadership and differentiation strategy in global market since it would enable this organization to compete with global giants. However, market penetrations strategy would work if this organization wants to create and sustain exceptional position in local markets like that of United Kingdoms and China. However, it cannot be stated that Tesco used to utilize such strategies without doing market analysis. In this regard, Tesco does market analysis through assessing its market position and coeval ratio of market growth which enables it to analyze which strategy would enable it to compete on global as well as local level and in this regard, the significance of BCG matrix cannot be neglected.Some organizations used to employ all these strategies collaboratively and consider that there will be competitive advantage that is a wrong notion. Thats why most of them stuck in the middle and ultim ately find it difficult to sort out the best option. This is not the case with Tesco since its a global organization and its management has exceptional expertise in dealings with such kind of situation assuming the best strategy that can generate passive competitive advantages.Hence, these are some of the potential options which an organization can utilize for competing with the strongest competitor in its relevant industry but before assuming any particular strategy, the organization needs to have its portfolio analysis as well. the examples of Tesco, Wal-Mart and Carrefour can be taken as evidence in this regard since Tesco has assumed strategic option through analyzing its contemporary position in global market and hence, gained successful position as well,Section 3Product life cycleA product life cycle possesses different stages like introduction, growth, maturity and fall. However, the marketing strategies vary according to the changing stage of product life cycle and the orga nizations that use appropriate strategic options according to the requirements of the contemporary scenario, get success in product marketing.On first stage, organizations used to apply marketing Mix elements in which, it suggests specifications of products, appropriate price, promotion strategies and place where it can gain successful position. Different examples can be seen in the form of Toyota motors, McDonald fast food industry and Tesco service providers in this regard. For example, Toyota wants to launch one of its product, the sign strategy that it would adopt will be determining price specifying promotion strategy and place, promulgating product specifications.Product design, specification, how it works, extra benefits of using it etc Price initially the cost would be low since this raw(a) product would take time to make its position in the markets. Promotion this section would indicate promotional strategies like intromission product providing value added services Plac e this section indicates the best market for promulgating new vehicle like United Kingdoms, Canada etc.The second stage is referred to as Growth stage. At this point, the strategic plan differentiated through assuming growth strategy like market development etc. For instance, when Tesco opened new store in China, it achieved growth status through developing market and for that purpose, it affiliated itself with one of the regional supermarkets that enabled this supermarket to have potential growth in new market.The third stage is referred to maturity stage. On this stage, the product or service got its mature status and for its sustainability, different strategies are adopted in order to maintain its position through assuming change management strategy if required. Market penetration strategy is considered the best option in such cases since through regular penetration in market, the contemporary position of the product and service is analyzed. For instance, in UK markets, environm ent changes are uncertain and this thing affects the requirements of consumers. So, Tesco UK constantly do market penetration in order to sustain its position and cope with competitors.Last stage is referred to the decline stage and it is considered the death of the product. However, some companies assume differentiation and diffusion of figure strategy in order to sustain its product and regain its mature stage. The example can be taken from McDonalds India. Its product for non-vegetarian though gained ample success in the beginning but soon, customers fed up with it. McDonalds India assumed differentiation strategy and attracted customers through introducing vegetarian burgers and deals.Diffusion of innovation strategyDiffusion of innovation is one of the effective strategies that can regenerate lost position of a product. Through promulgating product marketing its innovative features, organization can easily cope with decline stage of PLC. There are several examples which can be quoted for proving the authenticity of this strategyWith the propagation of KFC and PizzaHut, customers transformed their concentration from McDonalds and this thing affected its profitability ratio badly. The management of McDonalds contemplated to regain its position and ultimately found diffusion of innovation as the best source to deal with this issue. Finally, they introduced McFlurry which attracted most of their customers back. Hence, this thing not only made it possible for the organization to get its customers back but the profitability ratio also increased simultaneously.Hence, marketing strategy plays a major role in developing and sustaining products or services in local as well as global markets but along with using innovative strategy, the organization should also have potential to assume change management strategy according to the contemporary requirements.