Tuesday, August 13, 2019

Discuss the impact of marketing strategy on profits in two businesses Essay - 1

Discuss the impact of marketing strategy on profits in two businesses of your choice - Essay Example Kotler (2011) suggests that a company prepares its marketing strategy by dividing the larger market into different segments and positioning itself in one target market. J Sainsbury and Tesco plc are retail companies based in Europe. They have developed almost a similar marketing strategy by focusing on the mid-market segment and using the marketing mix to position themselves in order to meet the needs of their customers. Since marketing strategies enable management to achieve organisational objectives, and one of the main organisational objectives of Tesco and J Sainsbury is to make profits, it is evidently plausible to argue that the marketing strategies of the two companies enable them to increase their profits. Achieving organisational objectives requires a business to satisfy its customers’ needs, wants and demands (Jobber, 2010). This is exactly what marketing strategy in Tesco plc and J Sainsbury is all about. Tesco plc has customer focused marketing strategy implied by its mission and vision statements, as well as its dealings with customers in and out of their stores. One of Tesco’s missions is to provide customers with the best marketing trip. This simply means to satisfy customers with quality and variety of products, effective customer service, sustainable shopping environment, product price and availability of products. The company employs many employees to serve customers in order to improve the quality of service. This customer experience improves customer satisfaction and as a result increasing sales in the company. This leads to overall increase in profitability of the company. Other marketing strategies of Tesco include refreshing its stores for customers and staff, online marketing, international expansion, market development, and helping communities (Tesco, 2012). In terms of online marketing, Tesco has developed online transaction services which serve to improve the sales and consequentially the profitability of

No comments:

Post a Comment