Principles of Marketing – Essay Example

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Tesco marketing orientation has capacitated the firm t increase the number of loyal clients across the various nations where they conduct business. Besides, Tesco’s reputations of diverse innovations and technological improvements are perceivable. For instance, Tesco consumers’ Clubcard has been significant in attracting and retaining a strong client base. Tesco has also significantly increased efficiency across its retail outlets, particularly in the UK. The incorporation of technology has also increased the customer base, owing to the emergence of online customers. This has enabled the firm to have a significant growth, thereby making it the third leading retail firm within the UK.

The profit maximization within the firm is also evident, owing to the continuous expansion and incorporation of diverse products and services under Tesco business. However, this comes at a significant cost (Kotler and Armstrong, 2013). Tesco ought to embark on employing dissimilar skilled individuals, tasked with the responsibility of conducting these researches, and negotiate with various firms for collaborations. Additionally, the decision-making process within the firm may be slow. Additionally, since the firm operates numerous retail outlets within UK, the central management of these firms may prove to be challenging.

The introduction and management of technology-oriented sales also prove to be extremely costly. Macro and Micro Environmental factors influence on Tesco Various internal and external factors have a significant influence on how Tesco Company operates it business. While looking into the macro environmental factors, one ought to consider the PEST analysis. To begin with, the political factors have significant influences on the way Tesco conducts its business (Kotler and Armstrong, 2013). In the UK, the government policies endeavor to promote a fair platform for various business firms to conduct their operations.

As such, the firm has grown tremendously, leading to its significant expansion in other nations. However, Tesco may implement various policies that do not auger with the policies of the government. For instance, the case of Tesco practicing unjustified business practices received critical opposition from the government. Such practices involved Tesco’s purchase of vast land tracts aimed at discouraging competition. Additionally, Tesco once involved itself in anti-competitive practices, in the pricing of their milk products. Economic challenges such as the recent economic recession significantly influenced the consumers purchasing powers within UK and significantly reduced sales within Tesco retail outlets (Kotler and Armstrong, 2013).

Bibliography

Bush, Ronald and Shelby, Hunt, 2011, Marketing Theory: Philosophy of Science Perspectives, Marketing Classics Press, Texas.

Kotler, Philip, and Gary Armstrong, 2013. Principles of marketing. 6th European ed. Pearson Education Limited, Harlow, England.

Leadley, Peter , and Patrick, Forsyth. 2004, Marketing: Essential Principles, New Realities Kogan Page Series, Kogan Page Publishers, London.

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