Need help with my writing homework on Tesco Plc and Their Use of the International Marketing Mix. Write a 4000 word paper answering; The traditional marketing mix is considered to be the 4 Ps – product, price, place, and promotion. For service industries, a further 3 Ps were added (McGrath, 1986) – people, physical evidence and processes. For the purposes of this essay, the focus will be on the four Ps, with their international variations considered as they apply to Tesco later in the essay.
Keegan and Green (2011, p.399) define a product as “a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user”. One of the key attributes associated with a product is branding, which can be useful for organizations extending operations overseas. Price is defined as “a function of the demand for the product as determined by the willingness and ability of customers to buy” (ibid, p.365). For international markets, consideration must be given to price floors, price ceilings, and optimum pricing. The place is “the availability of a product or service in a location that is convenient to a potential customer” (ibid, p.399) although it can also include the when and how products and services are available as well. Promotion refers to “all forms of communication used by organizations to inform, remind, explain, persuade and influence the attitudes and buying behavior of customers and others” (ibid, p.431) and includes a wide variety of options, all of which should be used to convey and reinforce a consistent message.
Tesco plc a leading food and grocery retailer in the UK operating out of 4,331 stores in 14 countries worldwide: the UK, other European countries, the USA and Asia (Datamonitor 2010b p.15). It is one of the major retailers within the UK food industry, within which hypermarkets, supermarkets, and discounters hold 61.3% by value of the market (ibid p.10). Within the UK, Tesco is perceived to have reached the extent of its expansion.