Unit 3: Introduction to Marketing
P1: Describe how marketing techniques are used to market products in two organisations
In this assignment I will have to be discussing two organisations, and how they use marketing techniques to market their products, there are three main marketing techniques which are the production concept, sales concept and marketing concept I will also be explaining what they mean. The two organisations that I will be writing about is Tesco and HSBC Bank, Tesco uses production concept and HSBC uses marketing concept. These two companies are very different from each other. I will be writing about their aims and objective also their achievements and their targets. I will also be explaining how marketing techniques are used to market products in the two organisations..
Strategies (production concept):
Tesco uses the marketing technique of ‘the production concept’ they offers club cards, vouchers this allows the customers to spend the vouchers. I think that Tesco uses production concept which means that their products are cheap and affordable because this lets their customers have good quality food for a very affordable price. The main reason why Tesco sell their products at really low is because more people will buy that products and this would make them increase their profit than if they sold their products very expensive and then fewer customers buying it. Tesco has been very successful and plan to give products to the customers at an affordable price. This is a good technique for the business. Not only can they expand their business if it is very successful concept to use, they can go global and beat their competitors. By giving out club cards and vouchers the customers will buy more to earn points this would make the customers want to buy more of Tesco to earn more points, also giving out vouchers will increase their sales and their profits.
The Production Concept: This is where the company wants to increase sales so they put the prices down. Having low prices is the main reason someone would buy something. Tesco has many companies internationally, with that many companies and low prices more products are being sold and this makes the company a lot of money.
The Sales Concept: This is known as ‘the hard sell’ when a company is producing products and try to persuade you to buy it. What they do is try to persuade the customer that he needs this product. This helps the business because customers give in and buy it, other times the customers get convinced that they might actually need this product.
Marketing Concept: This is where the company puts the customer in the middle of things this allows them to know that they are in charge and it will be up to them what she/he chooses to do. Feeling in control is one of the main things that a customer would be very satisfied with.
Tesco use the production concept because that is one of the best ways to increase your profit. This is because Tesco knows that the cheapest price attracts many people. So they can get a lot of people buying a lot of cheap things instead of people buying one or two expensive products that wouldn’t be making Tesco any money.
Marketing Techniques: Growth Strategies: every company must have a growth strategy because this is what helps them expand and improve their business. Growth strategy is a way to make sure the business is improving and moving forward. Every business must have this because they need a plan to take the business to the top and work for it. Market Development: This is where they market their existing products to a new market range. This means that the product stays the same but it is targeted to a new audience. This would make the company more money because the product would now be sold to a different audience and the company would have more new customers.Product Development: This is a new product to be marketed to our existing customers. Here we develop