Alfreda Meshi
Academy of Finance Group 5
BTEC NATIONAL DIPLOMA
UNIT 3: INTRODUCTION OF MARKETING ASSIGNMENT
NEWHAM COLLEGE OF FURTHER EDUCATION
UNIT ASSIGNMENT: MARKETING
Part 1
Describe the concept and principles of marketing
Marketing definition:
1) Marketing is function which links the keys of Business together Company with Customer it
is taste to get the right product to right place at the right time.
2) The Marketing it is very important key in business ensuring the products the customer wants
are ready available
3) Marketing is the management to process responsible for identifying,
4) Anticipating, and satisfying customer needs.
5) Is the mangmnet process responsible for identifying an disatisfying costumer requirmnets
and profitably.
The Marketing concept is based on the idea that organisation can best meet their objectives on
concentrating on customer needs and satisfy those needs better than competitors
The production concepts usually concentrate production and distribution economies this usually
based on customers who look for the cheaper price which are already available
The selling concept
Is usually based on the customers needs to be persuaded to buy through aggressive selling
promotion they are regularly reports in the news about electricity and gas companies they use
tactics selling characteristics
The product concept
They believe their product is the best product in market is a top quality and brings different features
this usually describes some electrical manufacture that offer products with plenty of feature which
customer perhaps never really uses
The marketing mix
Once the organisation has set objectives to carry marketing plans has to develop to achieve the goal
s, Marketing mix is made up with 4 parts 1) product, 2) place 3) price 4) promotion
Product
Is Element of the marketing mix anything that can be offered to a market that may satisfy the need
or want?
Promotion
Is n element of the marketing which include all the communications with customer
Place
Is an element of marketing mix detailing how the product /service is supplied to the customer
Price is element of the marketing mix, is an amount of money consumer have to pay to acquire the
product,
Alfreda Meshi
Academy of Finance Group 5
Part 2
Describe how the concept and principles are applied to the marketing of products in your
selected tow organisations
1ST Organisation the Tesco plc
High Bridge Road
Barking
Essex
IG11 7BS
Introductin of tesco plc
The 1st organisation which it comes in my mind is the most popular supermarket store in UK tesco
the business growth has spread all over the world here are some e.g. This kind of supermarket it
provides a product and service to the customer starting from lower goods up electronic goods, car
insurance, banking and those days’ broadband and telephone. Brief information about the tesco
supermarket the development of the business is growing through every year, with initial planned
capital expenditure of up to £250 million a year. Tesco is the biggest private sector employer in the
UK with over 260,000 employees. They offer a market-leading package of pay and benefits such as
childcare vouchers and two share schemes, Save as you earn a savings scheme with an option to
buy shares at a discounted rate, and buy as you earn. In addition, their shares in success scheme
rewards eligible staff for their hard work and commitment with free Tesco shares and our awardwinning defined benefit pension scheme, which has around 150,000 members, allows members to
build up a pension based on their earnings and service. The USP of this Organisation means the
business have everything available to meet their customer needs and every pence of money it counts
to business
The aim of this business:
The aim of this organisation is expansion, profit in order to achieve those objectives they keep the
highest standards of corporate behaviour and ensure that Corporate Responsibility is included
throughout their business They are working with suppliers to ensure that they give the customers
high quality, they listen and respond not only to customers but to a wider range of stakeholders staff, suppliers, investors, and non-governmental organisations they work hard to ensure the
standard of e behaviour in all their business. A significant step forward in 2008 has been the roll out
of their corporate responsibility management system to their international operations. Core purpose
is to create value for customers to earn their lifetime loyalty. Their success depends on people. The
people who shop with them and people who work with them customers like what they offer.
Alfreda Meshi
Academy of Finance Group 5
2nd organisation I have selected a Sainsbury’s Plc
Introduction
Sainsbury’s Supermarkets is the UK’s longest standing major food retailing chain, it is one of
popular organisation ore store where the customers shop, Sainsbury’s brand is built upon a heritage
of providing customers with healthy, safe, fresh and tasty food. Today the company differentiate
itself by offering a broad range of great products at fair prices with particular emphasis on fresh
food. Products are improved and developed continually to ensure the company leads in terms of the
ingredients used and the honesty of sourcing. A large Sainsbury’s store offers around 30,000
products and many stores also offer matching non-food products and services, 114 stores of this
organisation provide an internet-based home delivery shopping service. Sainsbury’s offers bank as
well bank is jointly owned by J Sainsbury plc and HBOS plc with access to over 16 million
Sainsbury’s customers each week, operating costs are low, enabling Sainsbury’s bank to offer
excellent value products with extra benefits, all delivered in a simple, reachable way to their
customers
Sainsbury’s USP (try something new today) USP stands for unique selling point (or unique selling
proposition). To market a business or product successful it is always important to establish what its
unique selling points are it gives knowledge to eh customers what make difference from other
organisations in way cheaper products or better quality of product, it has features that other products
in this example mentioned above it is classier than the competitors.
The aims of this business
The Sainsbury’s objectives are simple, making profit growth of the business. In order to achive
those aims and objectives they continually work hard to improve and develop their product ranges,
e.g. work hard to give customers an ever improving shopping experience, serving their customers
with high standards, The Sainsbury’s stands for great products at fair prices and they also aim to
fulfil their responsibilities to the communities and environments in which they operate.
Marketing principles of Tesco and Sainsbury’s are:
1st organisation tesco Understanding the consumer needs
In way the customer be happy with their products and become potential customers as life has
become busier and more complex and living costs are more expensive, Tesco has helped the
customers to make shopping simpler, more suitable and reasonable.
During 2006/07, here are some records on Tesco products offers and discount e.g. they have offered
at least five fresh fruit and vegetable products at half price every week during the whole year. They
have extended the range of whole foods and include even wider choice of pulses, beans, dried fruit
and nuts, breads, oils, cereal bars, breakfast cereals and cooking oils, they have also made more
viability of organic products and have also increased their range of Value non-food products to
make setting up home cheaper and halved price of energy-efficient light bulbs making them even
more cost-effective than traditional light bulbs over their life-span also they offered a range of
Healthy Living non-food fitness equipment such as skipping ropes, pedometers, exercise bikes and
rowing machines all of this offers and discount has made it easier for customers to understand the
practical to use.
Alfreda Meshi
Academy of Finance Group 5
2nd organisation Sainsbury’s plc understanding the consumer needs
To understand the consumer needs and satisfy them this organisation has looked for growth of new
products the skills and qualities needs to work.


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In depth knowledge of food, ingredients
Well developed practical skills (food technologists, or home economists, and restaurant
chefs often work together) A new trends understanding an understanding of science of food
chemistry and nutrition
Up to date a knowledge of food market eg via trade press, food, magazines competitors
shopping and internet
Here are same facts which Sainsbury’s used to satisfy the consumer in latest years , this
organisation was the first UK retailer to launch a ‘multiple traffic lights’ nutritional labelling system
in January 2005. It was developed to help customers to see at a look the healthier food choices
within a range of similar products, it shows how much fat, saturated fat, total sugars, salt and
calories are in a serving of a food, there by making it easier to make a healthier choice in
Sainsbury’s stores. The ‘multiple traffic lights’ labelling is consistent with the recommendations of
the Food Standards Agency (FSA), last year this organisation set up a target on 4,000 of their
products by January 2007. They also grew their healthy food (be good to yourself) range by 5.3% in
2006/07 and this was short of target of 10%, with the popularity of new healthy ‘Supernatural’
range partly responsible in addition. They took salt reduction very seriously and were the first
retailer to introduce challenging salt reduction targets for own-label products in 1998. They are
fully committed to the FSA’s 2010 salt reduction targets across all of the 85 product categories they
have identified where they can achieve targets before 2010 they will do so, as evidenced by using a
reformulated standard sliced loaves, soups, baked beans, frozen pizzas and tomato ketchup e.g. by
2007 there were removed salt from fresh sausages to meet the 2010 target and in August 2006, they
became first mayor UK supermarket to set a date the removal of Hydrogenated Vegetable Oils
(HVO)they had successfully removed all hydrogenated vegetable oils and fats from all food and
drink made up to Sainsbury’s by 1st January 2007 last year .
1st organisation tesco keeping a head of competition
Keeping a head of competition is very relevant point which every organisation should keep eye on it
for that particular Business in order to achieve those terms they organisation have to work very hard
such providing high quality of service and high quality of products in order to meet the customer
needs in return will bring a good reputation of the organisation gain a trust from customers as result
long relationship with customers, potential customer. In this case the tesco supermarket it is open 24
hours which gives to their customers a flexible time to visit their store but other supermarkets such
a Sainsbury’s, Asda and Morrison are closed by 8pm, so this makes easy for the Tesco to gain more
customers other point which is very relevant tesco is checking what the competition are doing by
using a mystery shop going once a year to visit the competitors store an find out their products
price, quality, new products produce, the other way visiting the competitors website in return all of
this activities are making Tesco to succeed profit growth and bit competition and become the
number one .
Alfreda Meshi
Academy of Finance Group 5
2nd Organisation Sainsbury’s keeping the head of competition ? (do you mean ahead?)
The Sainsbury’s organisation also is working very hard to keep the head??? of the competition such
as working hard, providing high quality of the products and bringing new products to their store,
offering the different services, such insurances, banks, Sainsbury’s believes is the UK one stop
grocery market largely competitive today??, However it has changed significantly since October
2000, while tesco remains the market share leader the gab between it and following pack winded
Sainsbury’s has significant improved its position since the lunch of its recovery plan making
Sainsbury greater again, ??? The Sainsbury’s as concern about the way the structure of the market
has developed over last 5 years, its likely to develop in future and the impact this will have on
consumers, tesco have high lead of the market share in same areas this way will restrict the
consumer choice and creates a potential consumers harm. This situation is likely to worsen based on
current growth.
Communicating effectively with consumer:
Communication effectively with consumer is other good point, which this organisation is using to
succeed
Utilising new technology tesco
Using the technology it is very relevant for those certain years’ website to publish individual’s
consumer inspections reports and annual review emails, becoming more adventures in their
approach, flyers,
Sainsbury’s utilising new technology
PART 3
Describe how the marketing research information has been used by one of your selected
organisations to understand the behaviour
The Tesco organisation
Marketing Research definition and purpose of it is to make effective decisions by providing
information on consumers, competitors and the market.
In the marketing Research they are 2 main types of marketing it is a primary and secondary
research.
Primary data or primary market is research obtains new information, is an original data obtained
from the field Primary, in the primary data the information is update e.g. they mystery shoppers go
to the market place and find out the competition are doing. Also my ask the customers in street
questioners about the competitors also can ????
The observation method is used in primary data to gather information without any questioners
Secondary data is also known as desk research it is a information carry out from someone else or
can be taken from, books, internet, government statistic’s and annual report, in the secondary data
the information may not be up to date.
Alfreda Meshi
Academy of Finance Group 5
-Customers
The Tesco organisation is using both the primary data and secondary data to collect more
information and opinions from their customer about their products satisfaction and future
improvement e.g. designing new product, taste, price, for their customers.
The last year the tesco Customer Plan has been focusing on how they can provide a better 'Every
Little Helps' shopping trip for ethnic customers. They have extended food ranges, reduced prices,
increased promotions and improved availability - especially at times of key religious events such
(for Jewish customers), (for Hindu/Sikh customers) and Ramadan/Eid (for Muslim customers).
They are working with Asian, Afro-Caribbean, Jewish, and more recently, Polish groups and they
are looking at how we can improve the range for Muslim hallal food to the customers.
They are training their managers to be more aware of these different cultures and religions and to
enable them to understand and satisfy customer demands. Since early 2006 they have given
managers a 'religions toolkit' with information on diet, prayer, dress and festivals of people from
different faiths, also is receiving information of the customer taste through the questioners, loyalty
cards, threw the records of their sales. This organisation is using 12,000 Customer each year to
listen to their views on everything, from products, price, quality and service to their role in the
community, They also employee a range of qualitative research techniques, such as focus groups;
accompany shops, home visits and others, to explore issues as they arise, they use quantitative
techniques, such as on-street, telephone or on-line questionnaire, to talk to a wider number of
customers, or to quantify views and opinions gather in qualitative studies.
However, these tools on their own are not enough to get a true understanding of customer behaviour
and motivation. They use multiple sources of information, which allows us to look at many aspects
of consumer lifestyles, to understand a problem, or discover opportunities to do more for customers.
As conclusion using external research for them they recently identified an opportunity to improve
their range. The research the Polish & Eastern European products and they appointed one of our
Polish decision-making who began by listening to customers and held their first ever Polish
‘Customer Question Time’ they find it out what kind of products their customers would like to buy.
After talking to polish customers, they finalised their product selection then sourced the products
from a new supplier. They know from the feedback they get on a daily basis that many customers
like the products, prices, and service in stores. Customers also tell them when they don’t get it right
- but they do listen and respond to concerns the focus of their business is customers and they work
hard to meet their needs and that’s the only reason Tesco is successful.
-Competitors
The supermarket tesco is using the research on competitors to find out more information this
organisation is using both primary data and secondary data e.g. some examples on secondary data
e.g. checking on annual records of the competitions a year before, check out the price the
competitions are valuing the same product also if the competitions are successful on nay product
they going to copy them. They are concerned that so far the Competition Commission has hardly
made any mention of customers. They believe intensely that customers have benefited in so many
ways from the deep competitive fight in this industry.
They understand the merits of competition, and benefits it brings to the consumer the focus find out
whether the market is functioning effectively. Any Competition Commission Inquiry is required to
look how to find a solution on beating or avoiding the market competition. The Competition
Commission also has to identify whether any unpleasant effect on competition has a negative effect
Alfreda Meshi
Academy of Finance Group 5
on customers in the form of higher prices, lower quality or less choice of goods or services; or less
improvement in relation to such goods or services. They also every year took a place on the mystery
shopper one or tow people goes to their competitions to shop in order to benefit on checking in their
prices their quality of food ext???
-Market environment
The market environment of tesco it uses primary data and secondary data, Tesco does business with
nearly 2,000 own-brand primary suppliers in 98 countries.
They are using the techniques e.g. PESTEL to help them on verifying easily to the what kind of
product or business to use in order proceeding and satisfy the customers
Political they look for the political changes the government statistics changing in new low and
policy, taxation rates ext
Economic is also important on understanding if there are going to be inflation the cost of products
to produce, employment or unemployment people, They check also in population growth or the
average of the age of the people there are going to be more young, middle age or old customer it
makes them clear what kind of product to produce,
Social cultural demographic changes lifestyle change new fashion coming up, religions and
traditional providing more goods for the majority of religious who lives in the borough
Technical changes e.g. new technology e.g. now Day’s people are using less envelopes incisions
they are writing an email or text instead.
Environment changes like weather global warming the customers are going to buy less old bulbs
but they going to use an up to date energy saving bulbs
Legal is also important on legislation of the product to bring to the market
Part 4 and Part 7
Apply tow analytical techniques to a select product (goods or services) offered by one of your
selected organisations the techniques should include two of following:
A SWOT analysis
A PESTLE analysis
A Product life Cycle analysis
Compare the analytical techniques used in supporting the marketing decisions of one of your
selected organisation business or product.
Analytical techniques are very important in way the organisation use them, every marketer has a
variety of analytical techniques available to help them consider their options
A common approach is SWOT (strengths, weakness, opportunities, and threats) A SWOT analysis is
summary all of the information collected during the situational analysis.
I am going threw to look how the organisation I selected uses those techniques e.g. One service
provided by tesco organisation is an Internet –broadband they have brought the 'Value' brand ago to
give the customers the choice of straightforward,????
Strengths define:
Strengths refer future to the internal features of the organisation, which provides a competitive
advantage. Strengths are internal positive skills of hard working to organisation; the organisation can
work on building those strengths more to become more powerful and no one.
Alfreda Meshi
Academy of Finance Group 5
The strengths of the service selected from tesco plc (the finest broadband service with Tesco Company
Establish Brand name, which is easy, recalled by consumers as good reputation and good image of the
organisation, also the trust of the potential customer familiar with tesco.
Differential of service (Low cost position just £24.99 per month,)
Differentiation of product (free wireless router, free Internet security, free Internet phone
Free connection), (no download limit,)
Service quality (the fastest broadband speed, 50MB of web space, Access to newsgroup and
Good service Up to 2Mb speed with free upgrades, using the net wherever the person is because of the
wireless
Weaknesses are internal aspects of the organisation, which may not stand comparison with competition
or are not performing effectively. Weaknesses are internal aspects, which the organisation could
minimise them in order to continue forward; in this aspect I am going to look the tescos broadband
weakness, New concept of experience of this service, the plan package is higher price than competition
Service dependent on broad brand spread in this area in order to make it active,
Tesco broadband dependent on BT line is subject to availability in that area and has a minimum 12
months contract with them, the brand name has to be promoted locally.
Opportunities focus on events and development external to organisation .The organisation need to
respond to those chances in order to sell or produce more products in return increase of profit. In my
organisation I am going to look how the service broadband is giving opportunities to the tesco
organisation .Changing and open a new service to the customer, Extended of the new service
Change in economy and profit of the organisation. An opportunity to sell the other services or products of
specific organization direct to consumer threw the Internet.
Threats are negative development external to the organisation, which potentially could damage the
performance of the organisation, the service provided by tesco plc threats e.g. Threat of the competitions
services such they may provide better service, better deals of broadband e.g. low price well known broad
bands companies ,Increase pressure of the customers and suppliers Change of the new lows the
Government policy and social developments, Unemployment of the people may cause effect to the
organisation on low sales .
Pestle analyses
Political
Economic Inflation, unemployment, Business cycle,
Social Demographics, level of Education
Technical
Legal
Environment
A Product life Cycle analysis
Product portfolio analysis is a tool for assessing the potential of a firm it helps the Business to
identify which product needs investments.
The portfolio like cycle it has 5 stages of identifying the products,
Introduction stage is usually when the products growth in sale is very slowly, usually just same few
organisation use the stage because it costs money it is an expensive in the profit is slow, and it is
high level of risk
Growth stage
In this stage the product improvement and sale promotion gets control market position the profits
rise but the Competitions usually starts to enter to the market
Maturity stage this stage it the longest and more successful life cycle but however sales growth is
slower and more competitions will enter , the sales starts to fall and market find themselves in
many producers, so however the business stats to manufactures a loyalties brands ,
Alfreda Meshi
Academy of Finance Group 5
Decline stage is the stage when the product eventually dies, sometimes the organisations used to
leave same few brands which are still able on making low sales.
The techniques, which are used to support marketing as I mention in part 4 there are many but I am going
to talk in brief about same:
Segmentation also is very important because it allows the tesco plc create competitive advantages
Segmentation Bases include
Geographic it helps the tesco plc to identify the place where to establish the Business e.g. now Days the
tesco plc went to US
Demographic it helps also very organisation identify by age, gender,
Psychographic
PART 5 and Part 8
Following on from this market analysis you are asked to describe how marketing techniques are
used by one organisation to increase the demand for a selected product (goods or service)
Explain the marketing techniques used by on of your selected organisation and analyse why this
techniques has been chosen
The techniques of marketing which usually the marketing uses to increase the marketing demand for
these Tesco organisations are:
Advertisement is to advertise different sources e.g Internet, TV, radio, and helps to increase the demand.
Promotion is a part of marketing mix it used to promote???
Segmentation it divides up a market into groups of customers with shared characteristics, Geographic,
Demographic, and Psychographic. Segmentation it is very important because it allows the organisation to
a competitive advantage, Identify marketing opportunities,
MERIT CRITERIA –Complete parts 1-8
PART 6
Compare the effectiveness of the concepts and principles applied to describe how the marketing of
Products by your two chosen organisation.
Comparing the effectiveness of the concepts of the tow chosen organisation Tesco & Sainsbury’s
Here are some effective production concepts of tesco and Sainsbury’s
The tesco has launched the fruits and vegetable pledge they offer at least five fresh fruits and vegetable at
half price every week during the whole year and they have made organic products more affordable.
Than the Sainsbury’s and they sell also offer a range of Healthy living non–food ropes, fitness
equipments such as skipping, pedometers, exercise bikes ad rowing machines to make keeping fit and
more affordable which the Sainsbury’s doesn’t produce in their store.
At Tesco share ownership is not limited to directors and senior managers. Staff at all levels
throughout the company has the chance to invest in Tesco plc shares through our three all-employee
share schemes - Shares in Success, Save as You Earn and Buy As You Earn.
Alfreda Meshi
Academy of Finance Group 5
Communities
A Tesco store in a local community brings benefits by creating jobs and generating taxes, and indirectly,
by helping to attract further inward investment. We are sensitive to both the opportunities and concerns
raised when we invest. We try to work within the grain of planning law and social change - embracing
town-centre stores and bringing life back to declining urban areas where possible rather than building
edge-of-town stores accessible only by car. We strive to balance the interests of all our various
stakeholders and take a sustainable approach
Tesco does business with nearly 2,000 own-brand primary suppliers in 98 countries. The supply chain is
made up of a complex range of relationships - from individual farmers and growers through to
processors, manufacturers, and distributors (REPETITION)
Some effectiveness the selling concepts of tesco and Sainsbury’s
Tesco does business with nearly 2,000 own-brand primary suppliers in 98 countries. The supply
chain is made up of a complex range of relationships - from individual farmers and growers through
to processors, manufacturers and distributors. Britain's favourite supermarket Tesco has teamed up
with The University of Manchester in a £25 million investment that will bring together the world's
leading experts to tackle climate change and help deliver a revolution in green consumption.
The Sainsbury’s effectiveness made on 20 September 2007, Delta Two has informed Sainsbury's
that it is seeking increased funding of approximately £500 million of additional equity in respect of
the proposed acquisition of Sainsbury's at an offer price of 600 pence per share in cash.