Report and Presentation of Tesco

1. Marketing concepts and key terminologies of Tesco

Tesco is the world's leading company and therefore has adopted various marketing concepts to satisfy its customers. The marketing strategy of Tesco involves analysis of the market, and an examination of products to sell at what price. It also gives an idea to the company about the customers, relating to their fashion, demand, season, sizing, etc. The organization has made a marketing concept to regain the trust of stakeholders in the product (Dinnie, 2015). There are mainly five main marketing concepts used by Tesco.

1. Production Concept: Tesco has several stores in 12 countries and believes that goods and services must be available at many places at a lower cost which helps them to sell their products in high quantity. In order to make a product cheap, the company has made every possible effort to increase its production. The utility of this thing increases when product demand exceeds.

2. Product Concept: Tesco believes in giving effective quality products and services to their customers. It believes that customers will automatically be attracted to their brand if they are of good quality (Samiksha, 2016). Therefore, the company focuses on increasing the quality of products so that customers can buy their products in large quantities.

3. Selling Concept: The main philosophy of the company is that goods are not bought but they have to be sold. The company is putting more effort so that customers will be attracted to them. This concept gives the idea that repeated efforts can sell anything. The organization is hiring more people so that they can help it to give more services to the customer. The company has started its online services for the convenience of its customers.

4. Marketing Concept: Customer satisfaction is a key factor in achieving success. The basis of this philosophy is that only those products and services should be made available that the customers desire and not the things that they easily manufactured by the company. (Sela and et.al., 2017). This concept helps in achieving the customer's satisfaction and long-term profits. It also helps in increasing the revenue of the company.

5. Societal Marketing Concept: This concept is used by the organization to give importance to Consumer Welfare/Societal Welfare. Tesco believes that customer satisfaction along with welfare of the society must be kept in mind while selling its products. Social welfare includes a high standard of human life and a pollution-free environment (Joshi, 2016). Therefore, the firm has made all marketing efforts toward the social welfare of society and consumer satisfaction. It is the latest concept used by the company which helps in achieving its long-term objectives and profits.

2. Consumers buying decisions in various conditions

Consumer buying decisions change with their needs, desires, fashion, and season. Consumer gathers more information about the product if it is highly expensive so that they can choose the best product with lower cost. There are four types of consumer buying decision that helps the organization to know the customers' needs. Various buying decisions of customers are described as follows.

Complex Buying Behaviour: Complex buying behavior occurs when a customer is involved in buying and there are differences in the brand of the product. Tesco provides detailed information regarding product attributes and customers also collect details about the product features (Kaurav and et.al., 2016). For example, a customer who purchases clothes from the company is highly involved in the purchase and collects information about the different brands of clothes.

Variety-Seeking Behaviour: In variety-seeking behavior, customer involvement is very low and there are various differences between brands. Consumers also take an active part in purchasing different varieties of brands. In this way, the buyer and marketer interact with each other and the seller tries to achieve customer satisfaction.

Dissonance Buying Behaviour: Dissonance buying behavior of the customer takes place when the customer shows their full involvement and there are few differences between products. For example, consumers purchase tiles quickly as there are only a few differences between them.

Habitual Buying Behaviour: In this buying behavior, customer involvement is very low. And few differences among brands are available. Tesco customers are potential buyers as they purchase every product from them (Landwehr, Wentzel, and Herrmann, 2013).

Tesco has provided online services with a facility for home delivery. This helps customers a lot as it saves them time and money. It benefits the customer as they are getting the best quality of product with fewer expenses. Customers are highly involved in these types of services of the company. On the other hand, the high involvement of the customers is seen in the offline services of the company. Customers are purchasing various products from stores that are easily accessible to them (Oliver, 2014). The organization has also made all the products available to all stores so that consumers can easily access them.

Conclusion

From the above report, it can be concluded that Tesco is using various marketing concepts like production, product, selling, marketing, and societal marketing in order to grow and explore its business. With the help of these marketing concepts, the organization has successfully established 2,318 stores and become the world's largest company. It has secured ninth position when measured in terms of revenue and is the third largest retailer in the world when measured in terms of profit. The company has analyzed the buying decisions of the customers in different conditions in order to know customers' involvement under different situations. The organization has achieved its long-term objectives and goals with the help of marketing concepts and knowing customers buying decisions. It is also gets success in achieving customer satisfaction.

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