Lesson Objective • M1 compare marketing techniques used in marketing products in two organisations • Compare –say what is the same and what is different about two products and how they are marketed. Give reasons for your answer What to Do Identify which techniques Tesco used to market Club card and which techniques Subway used to market the Sub. M1 compare marketing techniques Identify which techniques they use are the same used in marketing products in which ones are different. two organisations Explain how Subway use the technique then how Tesco use it. Next comment on if they use it in the same way –why, does it have the same result-why Finally comment on why the Techniques only used by Tesco, why do they use these techniques and Subway don’t . Then do the same for Subway. Task 1 • Complete worksheet Tesco Marketing techniques for Club Card • Carry out research to identify which techniques Tesco have used to market the Club Card. Sources • Leaflet Boxes • Magazines • http://www.marketingmagazine.co.uk/news/191867/S coring-points-Tesco-Clubcard-hits-10/ • http://en.wikipedia.org/wiki/User:Bladeofgrass/Tesco • http://ar2010.tescoplc.com/business-review/coreuk/core-uk-cont2.aspx • http://www.tescoplc.com/plc/media/pr/ • Carry out research to find out which marketing techniques Subway have used to market the sub. • Write these down Compare the marketing techniques used to market the Sub and the Club card • Which ones are used to market both products. • How and why are the techniques used be each company • What is similar about how Tesco and Subway use these techniques and how are they used differently. • E.g How has Relationship marketing been used by Tesco to market the Club card and Subway to market the Sub • • • Tesco used relationship marketing to promote the club card. They did this by offering the card to it’s existing customers and offering them points for every £1 they spent. This encouraged customers to return (i.e become loyal). Tesco did this to build a relationship with its customers. The club card records all products a customer buys, this enables Tesco to offer them related goods. It also means Tesco have customers contact details on their database so can contact them direct with details of new products and services. The card was promoted in store through leaflets, application form and by check out staff. It was also part of an advertising campaign which saw Prunella Scales collect points and swap them for treats. The Club Card enables Tesco to use relationship marketing more effectively and allow them to build on the existing relationship they have with all their customers by selling them more products and services. Subway used relationship marketing by offering a loyalty card, where customers could collect stamps each time they visited and earn free products. This was designed to build on their existing relationship but did not allow for the relationship to be used to market new products. New products could only be offered if the customer returned to store. Subway have recently introduced a loyalty card similar to the Tesco club card, once they build up a database of the customers and their spending habits, they will be able to use the relationship to promote new and existing products direct to the customer in their own home. This could encourage them to come into the shop. Relationship marketing is used by both Subway and Tesco to build a relationship with the customer, encourage and reward loyalty, whilst trying to get them to buy more products. Tesco use this technique more frequently and effectively than Subway but this is because they have many more products and services to offer, so can build on the existing relationship