marketing mix

BSBMKG502 Establish and adjust the marketing mix

  1. Applicable Market Research

Tesco for maximizing the sales in the geographical area apply marketing research in order to recognize and satisfy the needs of the target audience (Tesco, 2017). Tesco carries primary and secondary research for evaluating and improving the products and services in the dynamic business environment.

  1. Marketing Plan

Pricing– Tesco provides its products at fair prices or at affordable prices for attaining competitive advantage over the competitors.

Distribution– Tesco has multi channel approach for distributing the products to the customers through online mechanism or by retail stores.

Advertising and Promotion– Tesco frequently checks its in-store promotional activity for attracting more customers. In addition, print and electronic media is used for promoting the products.

Customer Service– Tesco provides online services for enhancing the customer’s experience. The online grocery delivery services are provided to the customers for enhancing development in the product.

iii. Demand and revenue projections

Tesco follows synchronized and collaborative planning approach for anticipating the demand and designing the shelves with well stocked material. In addition, revenue is projected by the company for carrying out day to day activities (Kafetzopoulos et al., 2014). Revenues for new product are also forecasted for making it successful in the market.

  1. Marketing Budget

Tesco spends huge amount on various mediums such as electronic, print, outdoor, radio, cinema etc for spreading awareness about the product and services to the customers. In the financial year 2013(110.6m), 2014 (£101m) and 2015 (£77.7m) was the total budget spend by the company.

  1. Operational Planning

The operational planning of Tesco includes sourcing and procurement, conversion, supply and logistics management activities. In addition, coordination and collaboration activities are also designed with the channel partners such as suppliers, intermediaries, third-party service providers as well as customers.

  1. Relevant Policies

Tesco operates its business under the ethical approach for maintaining the principle under four pillars such as values, monitoring, improvement and transparency (Boyland & Whalen, 2015). Moreover, corporate social responsibility helps the company to maintain strong relationship with the customers, local communities and the environment.


The key characteristics of the business products and services comprises of quality, design, packaging, features, brand, functional performance, innovativeness, durability, brand, technical features etc. In addition, the listed key characteristics play a significant role in the market for informing, persuading and reminding the customers about the products and services. The products and services helps in attracting more customers and attaining competitive edge over the competitors in the ever changing business environment (Leonidou et al., 2013). The unique characteristics assist the company to make the customers loyal towards the particular brand.


Price (in ) Quantity




2 20 40
4 18 72
6 15 90
8 12 96
10 10 100
12 8 96
15 6 90

From the above graph, it can be analyzed that there is an inverse relationship in between price and demand. Moreover, with the increase in price there is a decline in the demand of the goods and services at a particular period by keeping other factors constant.  The total revenue of the company increases but at a certain period it starts declines due to reduction in the quantity demanded. At the same time, the increase in the prices affects the profitability of the company because of tremendous decline in the demand.


  1. Importance of Promotional Methods

Tesco makes extensive use of electronic and print media, which helps in spreading awareness among the customers. Sales promotion through club-card, free gifts, point of sales material etc. supports the company to attract more customers as well as facilitates in increasing the profit margin.

  1. Importance of Channels of Distribution

The channel of distribution with the support of online and retail stores helps Tesco to make the products and services available to the customers at right place and right time.

  1. Importance of level of customer service provided

The level of customer’s services helps in satisfying the needs and desires of the customers on time. It also supports in handling the queries of the customers in an appropriate manner for making them loyal towards the particular brand.


The potential customer base is identified by the company with the help of market research. In addition, the company by analyzing the product & services and evaluating the strategy of competitors is enabled in identified the target audience. The target market can be divided into demographic, geographical, behavioral and psychographic parameter (Lee et al., 2015). At the same time, there are various strategies such as mass marketing, differentiated marketing strategy, concentrated marketing and niche marketing helps the companies to successfully reach the target audience on time.


The components of marketing mix comprises of product mix, price mix, place mix and promotion mix. The each marketing mix elements is used by Tesco in the following manner:-

Product Mix– The wide range of product such as food, clothing, electronics, financial services etc. is provided by the company for satisfying the needs of the ever changing customers.

Price Mix– Low pricing strategy is used by Tesco for offering high quality products and services to the customers well on time.

Place Mix– The products are offered to the end users with the assistance of online and offline stores.

Promotion Mix– The products and services are promoted in the market with the help of low pricing strategy.

The marketing mix helps in developing the new product, increasing the product portfolio, creating differentiation and providing guide to the marketer for improving the business in the competitive business environment (Zikmund et al., 2014). At the same time, marketing mix is relevance because it helps to aware and educates the customer about the current offering for developing strong relationship with them.


There are various external environmental factors such as economic, socio-cultural, political, legal, technical and technological that has a potential impact on the marketing mix (Bragg et al., 2013). The material, production, distribution, machine, law, rules, regulations, customer’s preferences, competition etc has a major impact on the marketing mix of the company.


The consumer priorities, needs and preferences are right product, sold at right price, at right place by using effective promotional techniques (Rahim, 2013). The customer’s needs impact the marketing mix in a significant manner because the goods and services are manufactured after evaluating the demand of target market for maximizing the profit margin.


The marketing objective of Tesco is to become one of the major leader in food and non- food sector after meeting the needs of the customers with SMART goals and quality standards. The products and services are designed by Tesco after evaluating the needs and requirements of the customers. The products are targeted to the single individuals, nuclear and extended families with low and middle income group (Tesco, 2017). Tesco has positioned itself as a high value and easy going brand for maintaining the lifestyle of the people. In addition, the company provides variety of products by offering cost advantage to the target audience.


  1. The most appropriate marketing mix is process in respect of organizational, strategic and operational marketing objective.
  2. The integrated effect on one marketing mix on another is considered as effective and dependable like best quality products is provided to customer at reasonable price to customers by promoting the products features efficiently in the market on time (Rutsaert et al., 2013).
  3. The specific objective behind using process marketing mix in the organization is the improvement in operational efficiency.


The legislations, codes of practices, organizational policies are developed by Tesco in relation with employee policy, performance policy, workplace policies, moral & ethical code of conduct etc for controlling and governing the operational activity of the company. The legislations are framed for maintaining the ethical standards such as privacy, confidentiality etc in the conceptual framework (Moss, 2013). The fair code of practices by using corporate social responsibility in the marketing mix helps the company to achieve its goals on time.


Boyland, E. J., & Whalen, R. (2015) Food advertising to children and its effects on diet: review of recent prevalence and impact data. Pediatric diabetes, 16(5), pp. 331-337.

Bragg, M. A., Liu, P. J., Roberto, C. A., Sarda, V., Harris, J. L., & Brownell, K. D. (2013) The use of sports references in marketing of food and beverage products in supermarkets. Public health nutrition, 16(4), pp. 738-742.

Kafetzopoulos, D. P., & Gotzamani, K. D. (2014) Critical factors, food quality management and organizational performance. Food Control, 40, pp. 1-11.

Lee, Y. K., Kim, S. H., Seo, M. K., & Hight, S. K. (2015) Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, pp. 28-37.

Leonidou, C. N., Katsikeas, C. S., & Morgan, N. A. (2013) “Greening” the marketing mix: do firms do it and does it pay off?. Journal of the Academy of Marketing Science, pp. 1-20.

Moss, M. (2013) The extraordinary science of addictive junk food. Expanding addiction: Critical essays, pp. 127-140.

Rahim, M. M. (2013) Legal regulation of corporate social responsibility: A meta-regulation approach of law for raising CSR in a weak economy. USA: Springer Science & Business Media.

Rutsaert, P., Regan, Á., Pieniak, Z., McConnon, Á., Moss, A., Wall, P., & Verbeke, W. (2013) The use of social media in food risk and benefit communication. Trends in Food Science & Technology, 30(1), pp. 84-91.

Tesco (2017) Tesco PLC [Online] Available at: 3rd July, 2017).

Zikmund, W. G., D’Alessandro, S., Winzar, H., Lowe, B., & Babin, B. (2014) Marketing research. Cengage Learning Austra

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