P4 p5 p6 m3

6/8/2016

Marke ting planni ng P4 P5 P6 M3

Ibrahim Turay

BARNET AND SOUTHGATE COLLEGE

Section1 Content pages P4 Introduction……………………………………………………………………………………………………………………………1 Marketing planning process definition…………………………………………………………………………………………2 Marketing planning process model………………………………………………………………………………………………3 How does marketing plan play a part on marketing plan of Tesco………………………….......................4 The use of market research PESTLE, SWOT and SMART OBJECTIVES…………………………………………...5 Conclusion…………………………………………………………………………………………………………………………………...6

Section 2 content page P5 introduction of segmentation targeting and positioning ……………………………………………………….7 Explain how marketing planning include segmentation targeting and positioning………………………8 Link between market research and segmentation targeting and positioning………………………………9 Explain How and why organisation use marketing segmentation, targeting and positioning………10 Basis of Market Segmentation E.g. Geography, Demography………………………………………………………11 purposes of segmentation and reasons, how organisation choose their segments……………………...12 six different customer group Tesco target or product include B2B and B2C………………………………….13 conclusion…………………………………………………………………………………………………………………………………….14

section 3&4 content page P6&M3 introduction ………………………………………………………………………………………………………………………15 Briefly introduce Segmentation, targeting and positioning…………………………………………………………….16 Briefly explain how marketing planning includes of segmentation, targeting, positioning………………17 Link between market research and segmentation, targeting, positioning……………………………………….18 7Ps ………………………………………………………………………………………………………………………………………………….19

P4 explain how your chosen organisation uses marketing research for its marketing planning Tesco use different techniques in other for them to improve their marketing plan, in this task I will be explaining how they use marketing research for their marketing plan. Moreover, because they are a successful business and want to keep been UK number one retail they always carry out research in other for them to improve their product and services so that they will be able to create customer and employee satisfaction, by using marketing plan to do so. But what is marketing planning process?

Marketing planning process Is the way in which Tesco determine how they will compete with other businesses in a way that they will be ahead of them and also have a competitive advantage?

Marketing planning process help Tesco to develop new way to improve their product and service moreover marketing planning process help them to identify their various aspect of marketing. marketing planning is also the way in which Tesco is able to set a specific path in marketing. It is the technique that Tesco will use to take any action in other for them to achieve their plan goals.

Marketing planning model:  

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Formulating overall business objectives Tesco overall business objective is to maximise their sales and also by doing this the will be able to increase their profit.

Conducting market research e.g. primary secondary research. They use this research method in other for them to obtain information about their customers and employee so that they will know how to improve their product and train their staff Completing audit e.g. SWOT they use this to find their weakness and strength in other for them to know how to use their strength as an advantage and their weakness to strength Set marketing objectives based on principle and function marketing Tesco announced in December 2010 that they want to achieve zero net deforestation by 2020 Write marketing plans determine strategy and marketing using marketing mix 7Ps Design marketing tactic, segment, relationship marketing, branding this a technique that Tesco use in other for them to attract new customers, as you know they have good customer relationship and their brand is one of the top brand in the UK. Implement plan after they have research and find way to improve both their product and services then they will have to apply this method that they have find out.

Monitors and evaluation they need to make sure that every week or every day they monitors their employee to make sure that follow what they have implemented.

Marketing plan gives Tesco the opportunity to bring out innovative ideas so they will have different way in which they can offer their product and services to their customers. There is also negative impact in that too because if they don’t carry out research correctly they will not be able to have new ideas instead they will suffer a big problem which is either from customers or their product and their profit. Moreover, this help them to identify the following:      

To understand their potential customers To have a better understanding of their competitors To also be able to test other new market To also identify the performance, pricing, promotion and opportunities To also be able to learn more about their existing and new customers To also achieve their goals.

PESTLE it is a structure in which Tesco use to analysis different business environment. this is a concept that help Tesco in their marketing research in other for them to know how and what type of

method that they will use to either operate in or they are planning to launch a new product or services in that businesses environment or countries. Moreover, this concept is use by Tesco to be able to analysis and monitor the macro business environment on some factors that have an impact on their company. This result is also use to know their SWOT which their strength, weakness, threats and opportunities in other for them to either do product development, marketing development and diversification this is relate to PESTLE because in other for them to be able to diversifier or marketing development or to target non buyer they need to do lot of research to help them find out different solution or strategic to help them achieve their aims and objective.

Political this factor greatly influences Tesco because they operate worldwide, global political factor affects the performance of Tesco which include legislation and also stability of the country in which they are operating. Due to the constantly ongoing instability in the world this impact Tesco in a good way because government will encourage retailers to help them create jobs for the national population. This is where Tesco paly a great role because they create employment opportunities for them, in return the demand for its product will increase and also they were able to diversifies their workforce to create lot of job opportunities.

Economic this factor is one of Tesco main concern because it influences their cost demand, their profit making and price. Which makes them more watchful of any changes in the policies for instance taxation, inflation, price of goods and interest rates, wages rates and exchange rate this factors have a great influence on their accessibility of finance. Even though the company is growing internationally but it still quite depends on the UK market in which they have a market shares of around 30%. internationalization and diversification this two strategic have been the company major reason for success over the past years. Furthermore, because of the drop in disposable income and household incomes, Tesco have moved most of it attention in the direction of advertising its value brand instead of them having more luxurious product.

Social this factor has a great influence on Tesco because it changes every period of time so businesses need to make sure that they are well prepared if they want to survive this changes. due to the changes in the social lifestyle of the UK population the trends indicate that most of the UK customers prefer to do bulk shopping and one stop shopping. Which Tesco have make sure that they respond to and increase the number of non-food product that they offer to them. As you know customers are becoming more health aware and so the type of food and service which influence them. so Tesco have adapted to these changes by accommodating the demand for organic product in other to meet their customers’ demands.

Technological this factors as you know the advancement in technology have brought about lot of opportunities for Tesco in two different aspects the first one is it gives them the opportunity for their customer to do online shopping with facilities for home delivery. Secondly the most popular at Tesco stores is the self-checkout point, which have provided customer with a convenience and ease to pay for product instead of them queuing to pay for product. This has also reduced labour cost for Tesco.

Furthermore, Tesco have also invested on energy in other for them to fulfil their long-term objective to reduce carbon footprint. They have find different way in which they can:   

New ways of producing goods and services New ways of distributing goods and services New ways of communicating with target markets

Environmental the increase pressure on businesses from the government and pressure groups have impacted on Tesco because they want them to operations which will benefit the society. this why

Tesco have make this one of their long term goal in reducing carbon footprint by 50% by 2020. And also Tesco is helping decreasing the amount of waste that they produce in the environment that they are located. Moreover, they will also want to reduce the amount 30% reduction in GHG emissions on their agricultural product by 2025. They also want to reduce the amount of water that they use in other to improve for targeted water stressed area.

Legal the government policies and legislation also have a direct impact on Tesco business activities for example the FRC in 2004 suggested a code of practice should be introduced which would ban many practise for instance changing price without notice or demanding payment from suppliers. To facilitate this policies Tesco that is why Tesco have provided their customer with price reductions on their fuel in agreement to the amount they spend on their grocery store they also have lot of promotion offers where prices are lowered. And also some of this other laws are:   

Data protection this law state that Tesco need to make sure that they protect their customer data from and hackers or misusing their information.

Sales of goods act this law state that Tesco need to be aware of the quality of product that they sell to their customers and they are willing to pay for the product.

Sales description this law state that Tesco need to make sure that the product that they are selling to their customers need to be as they describe it on the label, if it is not they have breach this law and they will be fine for misleading their customers.

SWOT this is method in which Tesco uses to find out their strength, weakness, opportunity and threat this system is divided into two internal and external.

Internal aspect Strength 

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Increase market share Tesco hold about 13% of the UK retail market share. it multi capacity mean that they will continue to grow it share in food. Tesco has grown it non-food product to the extent and it total revenue is about 23% of it earning. Which also has make Tesco’s regional market to keep growing stronger.

Brand values Tesco business activities in Europe, Asia and Ireland increased by 78% for the first economic year it brands name have developed a great connection with it customer it means good quality trustworthy. they are there to improve customer shopping experience.

Weakness 

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Reliance upon the UK market even though the international market is still growing which have contributed to the amount of Tesco profit figures over the past few years. But the company is still depending on the UK market over 73.8% which at some point doesn’t consider it as a weakness but if the UK supermarket changes it will be a weakness for instance their competitor Morrison have purchase the Safeway chain which has affect Tesco market shares and also the UK supermarket power.

Debt reduction Tesco need to pay off their multibillion debt after the homeplus sale a debt of over 3.35bn they have already sold some of their asset including blinkbox video streaming service and also the dunnhumby the company behind the clubcard up for sale in other for them to pay of their debt

External aspect Opportunity

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Non-food retail Tesco non-food product have help their share to clam up to 13% and has a sale of over £7billion it growth overseas will increase which will take Tesco to virtuous circle growth which I estimate that their sales will double over the next two years.

International growth Tesco now offer it product and services to over six countries in Europe in addition to the UK the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland, china and more. They have a sale of over £770million they are nearly 10 times larger with a profit of £306 million. In the current year Tesco have add 2.5million on their major market growth which makes them to be really serious about their hypermarket.

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UK structure change could cause a price war the UK price follower are getting really aggressive to investors in price this because new ownership is happening and new management are rising because of this Tesco competitor like Morrison have reduce their price down to 6% which make Tesco to reduce it profitability by 25% Competitors since the US shopping giant Wal-Mart have join forces with Asda it has threaten Tesco rank as the top UK supermarket which make it now Asda can now compete with Tesco extremely well on price and range of goods. Not that Asda it the second largest retail in the UK it shows that have already throw a direct challenge at Tesco for the top spot and also Tesco need to keep up with Asda price cut or special offers.

Tesco SMART objectives, Tesco announced in December 2010 that they want to achieve zero net deforestation by 2020    

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Specific they want to achieve zero net deforestation this mean that for every tree cut don for Tesco use they will replace them Measureable Tesco will work out the amount of trees that are cut down and also how many have been planted and also how much has been recycled Achievable this also shows that the objective is achievable because of the method that they are using replacing every tree that they cut down Realistic the goal is realistic because right now they own Wood and Wood Products Sourcing Policy, in other for them to buy any timber product or timber the suppliers need to have a legal certificate and also approve by the standard of (FSC or PEFC).

Time frame by 2020 they will achieve their goal on the net deforestation which shows that have a targeted time to achieve their goals.

The data they get from PESTLE they will use it to analysis if they will be able to achieve their smart objective which is one of their long term goal to have a branch around the world and be a wellknown brand in the world by 2019 using SWOT to know if they have the capability to achieve their goals using the SWOT they will know their strength which is their brand name to influence customer in that country and also by using their strength they will be able to improve their weakness which is debt Tesco have great sum of amount of debt to pay it about 3.35billion. using PESTEL they will know what step they will take to gain the customer in the country trust and make more profit. Using PESTLE, they will know the country economic stability and also the type of customers that they are going to meet their want and needs they will know their lifestyle and also to know how to deal with any ongoing problem. Having PESTLE information to improve their SWOT by creating a roadmap to the company successes and also to use the type of threat that they will face in the country.

Tesco use SWOT analysis in other for them to combine their internal and external influence so that they will pinpoint what they lack and how they will be able to identify potential customers and target them. They will also investigate ways in which they will raise money to be able to overcome their

weakness which is debt in other for them to achieve this they have some objective, one of them is to increase their sales and maintain their existing customers, they have achieved this by retain their high quality product and keep their customer service to best quality possible and also make sure that all their food product is fresh and attractive to their customers. they will be able to target new market segment in other for them to achieve growth and be able to pay their debt In conclusion I think that Tesco have long way to go in other for them to achieve their goals this because looking at the amount that they are owning it show that most of their objective is not been met and also research has not benefit them yet because maybe they are not using the right method to be able to pay off their debt this is one weakness that they need to improve on because if they don’t they will not be able to achieve their goal. It is important for Tesco to look at their business activates from a different direction and sue their strength to solve this problem and also implement and evaluate changes in their company and monitor their plan regularly to know how well they are doing in terms of market shares, product quality, customer and staff satisfaction and the brand name.

P5 explain how and why groups of customers are targeted for selected products In this assessment I will be explaining how and why group of customers are being targeted for selected product at Tesco. Tesco is a big company it has different customers and offer a varieties of product so looking at the product that they offer will tell you what type of segment it trying to offer this product Market Segmentation this a method that Tesco use in other for them to target new customers by using a specific product to target this customers group, the purpose of this is to identifying this customer specific needs and want and using that insight to make sure that they offer product and services that will meet their needs. There also different characteristic that Tesco use to segment different customers group, they are also divided into various categories.

Market Targeting after Tesco have separate it market into segment they will then choose a specific group that they will target depending on the product that they want to offer, as you know they are a big company they target all sort of segment in other for them to achieve their sets of goals. They will look at the product then target a group that they know will buy that product for any price and they like the product.

Market Positioning this a concept which plans what a business should do to market it product or services to its customers. positioning is a way in which Tesco product is place ahead of all its competitors this is created through the use of price promotion place and product. Tesco s class as one of the best retailer in the UK this because of the image it product and service has impacted on customer and the emotional connection that it has on it customers to provide them with the best quality product for a reasonable price, that is why most customer say it the number one in the UK. There are different type of positioning that Tesco uses to attract target segment.  

Functional positioning this refers to the increase in the range and quality Symbolic positioning this refers to the values and aims objective of the customers

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Price positioning this refer to it wide range of product price that they use to attract segment

The way in which marketing planning involves segmentation, targeting and positioning is that they will tell the company what type of customers exist and which ones they are going to offer their product and do some research on what they like, who they are and what type of product they love to any given price. Marketing planning relate to all three point above because it need all three factor to compete the circle to know their customers and give them the product or service they want and looking at their image if I appealing to their customers. as you know there are different type of customer so Tesco need to make sure that they meet their needs and expectation in other for them to achieve their goals.

Moreover, marketing planning link around this three factors segmentation, targeting, positioning because they have

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Geography segment these refer to the location that Tesco customer based and also were their store is if its convent for the customers to go do their shopping that why most of Tesco stores are in a high street and high way and shopping centre so that it will be easier for their target market to locate them.

Psychograph segment these refers to the lifestyle, belief and values of their customers. An Example will be some of Tesco customers do not eat non halal meat or contain pork because of their belief so that why Tesco need to make sure that they offer their customers halal meat that doesn’t contain pork. The lifestyle of their customers always change most customers are now health concern so they need to make sure that they provide them with less fat food.

Demography segment these refers to gender, age and family is also help Tesco to target it customers accurately, they can also categories their customers’ needs Behavioural segment this is the attitude of the customers towards the product this also talk about the benefit of the product that Tesco is offering their customers.

The purpose of segmentation is to make sure that Tesco break down large target audience in other for them to deliver their product to the right customers and also is help Tesco to generate higher sales volume by making a specific group of their target audience believe that they are the best company to satisfy their want and needs. Tesco also know one main fact that them trying to sell their product to everyone will not always them to advertise or have a unique selling benefit on it product.

Furthermore, another purpose of Market segmentation this also allow Tesco to develop product at a lower cost, Tesco use different way to narrow their product features so that they can target specific group of people that will be interested in that product instead of them want to provide their product to multiple for multiple example halal meat not all Tesco customers eat pork so they narrow their product so that it will suit both parties offering them halal meat and non halal meat.

B2C business to customer’s segmentation this refers to the transaction that is directly between a company and its customers who are its end user of I product or service. For example, someone buying a television set from Tesco which will be B2C.

Career status this refers to the employed or unemployed customers, the way in which Tesco target this customer group is by using their clubcard data they will know how to customise their website to suit this customer. working class customer are referring to as upmarket shopper at Tesco and unemployed are refers to as hard-up shoppers. The way they target upmarket customers is through their income.

Belief Tesco look at the belief of their different customers to in other for them to segment so Tesco need to make that they cater for this, all of their customers have different belief if they segment based on customer that relating to the benefit of their product has on the environment they will segment by identifying customers segment that are really have concern for the environment.

Lifestyle customer’s lifestyle is changing so this why businesses need to make sure that they keep to date with this trend. This also breaks up information concerning customers into subgroup, this the sum of all customers that are important to Tesco they must be identify in other for them to learn what they need want, wish to get from the brand this were marketing research link using the data that they have collected from primary and secondary research that they have collected from customers. after this has being identify it is easier for Tesco to have more option for to offer their product to them in return subgroup customers will be loyal to the brand.

B2B business to business segmentation this when another business sells it product to another business this technique is common in the business environment like coca cola sell it product to Tesco Size and value the size of Tesco has make a big difference to the way in which their suppliers and the type of goods that they purchase. Coca cola segment big businesses because of its size that why they chose Tesco if they choose small business like the corner shop they will have to be sympathetic to them because they don’t make enough income or have specialised financial advice but at Tesco they have different well train and specialised staff to do the financial bit for them and also there are lot of people to help make decision concerning the type of product that they buy or produce and offer to their customers.

Moreover, the value of Tesco is also an important aspect by which it may be segmented by coca cola because if they always make a high value purchase then coca cola will have a different approach to sell their product to them one approach that coca cola will take is to use a contract method meaning they will deliver the product at the end of the sales they will pay them the money which is similar to debt but not a debt.

Region most businesses will sell their product on focusing on their geographic location.

Tesco focus to be the number one retailer in Europe so they focus on selling their product to different country like china this because they are trying to sell their product to new segment or market development. They try to go to US but it was a failure. They now offer their product to all most all of the European country so they focus on different geographical location because of their aims and objective.

By product and industry Tesco also use their existing product to segment also know also market development, they use this strategy to target new customers group. Tesco can also

segment in an industry they use product and service to achieve this for example independent grocer, Tesco banking and clothing. Each segment will purchase different type of goods in different quantities for different purpose.

In conclusion I think that market segmentation, targeting, positioning has a great impact on both customer and the business in terms of the product that they offer and the type of product that customers buy P6: Develop a coherent marketing mix for a new product or service In this task I will be choosing one service that Barnet&Southgate college don’t offer but it has different ranges/categories I will be relating this service to the 7ps this course is theology and Religious vocation course. But first what is marketing mix Marketing mix this is a technique that businesses use to present it product and service to its customer it is use in other for them to meet their customers need. Moreover, businesses need to make sure that they create a successful mix like the right product, the right price, sold in the right place they should also use a suitable method to promote their product or services.

The way in which marketing planning include marketing mix is that its designed to help meet the company marketing objectives by offering its customers great values this two are combine in other to establish the product position within its target audience.

Product this is anything that can be offer by businesses in other for them to create fill in where there is gap in the that market and also satisfy their customers want and need.

My Product is theology and Religious vocation course this course comprises of different sub subject which link with it, this course is all about religion it also goes into religious music.

The college can also be class as a brand in terms of the educational industry it reputation for outstanding college experience and teaching will be of great help to this product. to make it more interesting it will have an exam at the end of each term      

Bible/biblical Studies Missions/Missionary Studies and Missiology Pastoral Counseling and Specialized Ministries Religious Education Religious/Sacred Music Theological and Ministerial Studies

The product life cycle for this product is will only have two stage out of the four stage of it life cycle which are:  

The introduction Growth of the course

Price – this talks about the method in which you are going to sell this product or services there are lot of way to price a product some example are:  

Premium pricing Penetration pricing

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Economy pricing Skimming pricing

For my course I will choose from the above two pricing method as you know my target it to get this course know to my target segment and my pricing will be periodically timing meaning I will change it every year but I will stick with the too price method that I choose  

penetration pricing for the first 2 year I make the price low so that I will be able to attract lot of customer/student of all ages so that I will be able to make lot of income. premium pricing after the course has grown to an extent of which it has deliver and have reach it final face which is to attract more student then then I will introduce high price.

Place this refers to the location in which this course will be offer it will be available in two different way online study and college Barnet&Southgate college Promotion – I will be using two different advertising platform which will help me to make this course reach my target market, design a poster or leaflet for the service  

Billboards TV advert

People this refers to everyone who comes in contact with my target market and also make an impression my service, as you know customers will not separate my course from staff member who provide it I will have to make sure that this course have a profound effect on my customer’s satisfaction either negative or positive but I am looking for a positive effect from staff and also have the follow:    

They are well train on about the course How to teach the student Have lot of knowledge about the course Excellent communication skills

Process this refers to the way in which I deliver my service and the behaviour of my staff that deliver he teaching and also the online course the user need to have a wonderful internet experience and also the teaching and information are very useful to them in other to achieve their grades and also every teaching and thing they do need to benefit the student and first impression Presentation The way the layout of the class room and the college as a whole is it comfortable for the student and are they pleased with the infrastructure of the college and the dress code of teacher health and safety of both student and teachers  

College appearance from a far distance what does it you the student the moment they spot its clean and tidy safe for me to go to my lesson.

Emergences exist and health and safety

M3 - Analyse how your developed marketing mix for a new product and service is targeted at a defined group of potential customers In this task I will be analyse how I developed my marketing mix for my new service is targeted to my chosen customers Psychographic segmentation the reason why I choose this category is because it links with my chosen target group another reason is because it based upon different customer’s personality their belief, values and interest. Moreover, this segmentation has a great advantage because it helps me to develop wen way in which I can offer this course and market it and also stay focused on my target market.

Belief different people have different belief but combing this belief together and make people see how other religion do things and also how to engage in a conversation with them without any argument or fighting this course also teaches how to think religiously towards other even though there a lot of people out there that don’t believe in God so my course main focused is for does people to see the beauty in religion and have more knowledge about different religion.

The benefit of marketing mix it provides a valuable guide for resource distribution. Every business need to be able to allocate it resources both human and financial they should be able to share it in other for them to know their limit or their product limit to be able to satisfy their customer’s needs. It helps them to allocate responsibilities as you know every company can achieve the best result because it depends on their staff team work is an important aspect in a work place. They need to also have a perfect mix of different skills and specialists to do the job. It also helps them to provide opportunity to analysis cost and be able to increase their sales as you know the more the sale the more profit. Another benefit off marketing mix is that it helps to get you product across to your customer in a satisfying manner.

The consequence of not putting marketing mix together is that you will not have the knowledge that is required by customers most customer always ask for the features of the product from the staff to know more about the product so if the company don’t put together a marking mix it will be a great disadvantage and also the way they present their product will also affect the product because if they don’t know how to present the product or the company in way that will suit their customers, the customers will not feel satisfy like see the class room dirty and the whiteboard messy and the teacher do not dress professionally the student will not take the course or think it’s important and they will not pay attention in class.

The course I have chosen if design to provide knowledge to student that are willing to accept the teaching of their various teachers. The course is also design to suit the student and also at the end of every term they are given two exams one is a written exam which comprise of different topic that they have cover from the starting of the term and also they are given a speech exam as you know the course is all about religious aspect so they will choose a topic that they are comfortable with and then present it to a group of teacher and student on at a time they will be asses how well they present and communicate with large audience.

The course is also design to make student have their 3 weeks of work experience this type of work experience is different from the one they are used to this one they will have to choose either a church or mosques to go and do a work experience or a missionary job in other for them to pass. At the end of the course they will have a trip of their choice. Furthermore, the course has a clear objective which is to help religious student to know more about their religion.

The service and the price this two have a common in sight because the link with the price it need to be cheap for student to pay for the course it should have and train teacher to do teach the student in other or them to achieve their goal. The most important one is the course because it is the backbone and the general idea for the student to go to the college and also want to achieve their goals is the price this because it is a combination of quality and purpose which will lead to different aspect of the course so in other word the service I offer is the important one.

Promotion and place both of this are similar in their because they way in which I present the college is also important as the location where the college is located this why both are important but place this because is the element that ensures that the service is distributed and made conveniently available to student at the right location it is important for student to do their studies without any problem for them.

Furthermore, Asda has also use this techniques in other for them to satisfy their customers and also choose a specific customer group that they want to target which was successful because their price is cheaper than Tesco even their slogan will show that their product is affordable “save money live better” whiles Tesco slogan say “ever little helps”.

In my opinion I think that all of the 7Ps are really important because one cannot do without the other if I say I take out 2 pf the 7ps like process and presentation how will be able to deliver my product to my target market and also present how will my service look like if in the eyes of my customers they if I don’t consider this factor it will have a great impact on my service the way the college look like and the appurtenance of the teacher.