Marketing and Its Components

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Table of contents

Environmental analysis of UK:3
Political:3
Economic:3
Social:4
Technological:4
Control of Tesco over environmental factors:4
Competitors:4
Customer:5
Inflation ratio:5
Technological advancement:5
Creating and sustaining competitive advantages:5
Product life cycle:7
Diffusion of innovation strategy:8

Section 1:

Environmental analysis of UK:

In order to achieve success in implementing some marketing plan, PEST analysis plays a major role because it allows the organizations to do a complete analysis of political, economic, social and technological aspects of the organization and the evidence can be taken from the example of Tesco UK. The success factor of Tesco can be analyzed from the marketing strategy it has assumed in order to deal with the potential customers of United Kingdoms. However, this company has taken all the basic concepts of marketing under consideration while making its strategic plan. Here is the PEST analysis of Tesco UK.

Political:

The organizations which have political backup and keeps the political aspects under consideration while marketing its service get promulgation within no time. For instance, Tesco is an international supermarket; its policies are always compatible to the regions in which it provides its services. In UK, it has also kept this thing under consideration and that’s why, got exceptional response from the customers. In this regard, following 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 own ethical and sustainability policy keeping the national ethical policy of UK in view

Economic:

Since UK market is one of the most sensitive markets of the world, economic sustainability is another factor that needs thorough analysis in order to deal with any marketing situation. Most of the consumer within UK requires a product that suits not only their lifestyle but also their budget. Though brand loyalty and trust is also a positive factor that can be regarded as a strong reason for the success of this organization, still some consumers find it difficult to buy costly products. Tesco UK has also kept this thing in view and provided different solutions in the form of competitive prices and sales. However, the economic analysis of Tesco indicates

Potential investment of company authorities within UK
Payment of taxes on each product
Adoption of sensitive price strategy
Paying interest rate
Extensive participation in regional economic growth

Social:

The analysis of social factors of Tesco UK is as followed:

Targeting young people for product marketing
Increasing demand of the international products due to increasing migrants •Multi-cultural customers
Bargaining power of customers
Safety issues like inability of customers to understand product precautions

Technological:

As far as technological factors are concerned, Tesco has also kept this aspect under consideration while marketing its services in United Kingdoms.

Automatic payment system
Auto-checking while entering and exiting from supermarket •Use of electronic system for cash and balance
Implementation of safety cameras in supermarkets
Wireless devices
RFID

Control of Tesco over environmental factors:

As 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.

Competitors:

Potential competitors of Tesco UK are as followed:

Wal-Mart
Costcutter
Carrefour
As far as online competitors are concerned, they involve

Ebay UK
Amazon UK

Customer:...
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