The marketing concept is the strategy that every organisation applies to analyse the requirements of the consumers and make decisions to satisfy those requirements. Tesco is a British multinational grocery and retailer company whose headquarters are located in Welwyn Garden city, Hertfordshire, England, United Kingdom. It is a grocery market leader with a market share of around 28.4% (Claiborne and Sirgy, 2015). It sells 40,000 food products, clothing and other non-food items in its superstore. This report primarily focuses on key terminology and marketing concepts of Tesco. Further, it includes consumers buying decisions both locally and internationally.
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. Marketing strategy of Tesco involves analysis of the market, an examination of product 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 organisation has made a marketing concept to regain the trust of stakeholders to the product (Dinnie, 2015). There are mainly five 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 with a lower cost which help them to sell their products with high quantity. In order to make a product cheap, the company has made every possible effort to increase their production. The utility of this thing increases when product demand exceeds.
2.Product Concept: Tesco believes in giving effective quality of products and services to their customers. It believes that customers will automatically get attracted towards 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 product in large quantity.
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 efforts so that customers will be attracted towards them. This concept gives the idea that repeated efforts can sell anything. The organisation is hiring more persons so that they can help it to give more services to the customer. Company has started its online services for the convenience of their customers.
4.Marketing Concept: Customer satisfaction is key factor in achieving success. The basis of this philosophy is that only those products and services should be made available which the customers desires and not the things which 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 revenue of the company.
5.Societal Marketing Concept: This concept is used by the organisation 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 towards social welfare of the 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 decision changes with their needs, desire, 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 which helps the organisation to know the customers’ needs. Various buying decision of customers are described as follows.
Complex Buying Behaviour: Complex buying behaviour occurs when customer involves in buying and there are differences in the brand of the product. Tesco provides detailed information regarding product attribute and customer 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 behaviour, customers involvement is very low and there are various differences between brand. Consumers also take active part in purchasing different varieties of brands. In this way buyer and marketer interact with each other and seller tries to achieve customers satisfaction.
Dissonance Buying Behaviour: Dissonance buying behaviour of the customer takes place when the customer shows their full involvement and there are few differences between products. For example, consumer purchase tiles quickly as there are only few differences between them.
Habitual Buying Behaviour: In this buying behaviour, customers involvement is very low. And few differences among brands are available. Tesco customers are potential buyer as they purchase every product from them (Landwehr, Wentzel and Herrmann, 2013).
Tesco has provided online services with facility of home delivery. This helps customer lot as it saves their 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 type of services of the company. On the other hand, high involvement of the customers is seen towards offline services of the company. Customers are purchasing various products from the stores that are easily accessible to them (Oliver, 2014). The organisation has also made all the products available to all stores so that consumer can easily access them.
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 organisation has successfully established 2,318 stores and become the world largest company. It has secured ninth position when measured in terms of revenue and has third largest retailer in the world when measured in terms of profit. The company has analysed buying decision of the customers in different conditions in order to know customers involvement under different situations. The organisation has achieved its long-term objectives and goals with the help of marketing concepts and knowing customers buying decision. It also gets success in achieving customers satisfaction.