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Evaluate the contribution of R.M activities in TESCOs to the effectiveness of the marketing function.

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Introduction

Evaluate the contribution of R.M activities in TESCOs to the effectiveness of the marketing function. Relationship Marketing develops relationships between customers and the company and it entails meeting customer's needs and gaining customer loyalty for the company. Relationship Marketing is about long term customer loyalty and TESCOs marketing function is about meeting customer needs. Relationship Marketing assists in helping the company to: 1. achieve their objectives 2. increase their profits 3. increase their market share 4. increase the number of stores worldwide 5. gain a greater percentage of profit from overseas Relationship Marketing is the on-going process of identifying and creating new value with individual customers and then sharing the benefits of this over a lifetime of association. It is basically creating customer loyalty. 1. Achieve their objectives Tesco will be a growth business. With achieving the status as a global retailer, Tesco will want to keep hold of it so their objective will be continuous. This objective focuses on increasing the market share of the business. In September 2005, Tesco acquired a 50% share in the hymall hypermarket chain through a joint venture with tin and sin. ...read more.

Middle

Tesco have already branched out into new markets and have their own clothing range, Cherokee. They also supply electrical items such as TV's, microwaves and kettles and toasters. Tesco have also gone into the telecommunications field and now sell mobile phones for excellent prices. Increase their profits Tesco- Britain's largest retailer, had so many consumers through door- here and aboard, over phone and internet, profits jumped from 17% to 2.2 billion They revealed its pre tax profits rose 16.9% for the 12 months to February 2006 while sales climbed 13.2% to �38 billion. It isn't just food consumers pile into Tesco trolleys these days, it also includes clothes, books, telephones, electricity, electrical goods, music, travel, telephone services, insurance banking and petrol. Tescos founder the late Jack Cohen began trading on the market in London's east end in 1919 with �30. Tesco said that their profits are due to the growth of sales of their non-food market such as TV's and DVD's - which helped produce profits of �1.07 billion, up 12% since last year. Increase their market share Tescos share of the UK supermarket sales rose to 30.6% in the 12 weeks to 29th jan 2006 up from 30.5% the previous quarter, while its market share is up from 29% a year ago. ...read more.

Conclusion

Table stating number of international stores. Table Stating Tescos No Of International Stores. International 2001 2002 2003 2004 Jun-05 Number of Stores 215 250 309 440 554 Number of Hypermarkets 68 102 152 194 273 Total sales area (000 sq ft) 10,397 13,669 18,115 22,111 24,928 They opened their first overseas store in Eastern Europe in 1995, three years later, it opened its first store in Asia. Today operates in 440 stores in twelve international markets including a recently purchased hypermarket chain in China. Their overseas operations now account for 41% of its operating space and nearly 20% of all its revenue - 11% in mainland Europe and 8% in Asia. Picture of Tescos operations across the world. * Rep of Ireland * CRepublic * Hungry * Poland * Slovakia * Turkey * South Korea * Japan * Taiwan * Malaysia * Thailand * China Tesco saw strong sales both in the UK and Abroad, with UK sales rising 10.7% and foreign sales increasing by 23% in 2005. Tesco said sales at its international operations in Asia and Central Eastern Europe where up 13.1% they also added that it intended to create 25000 jobs worldwide this year, including about 11,000 in the UK. ...read more.

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