The disadvantage of having the marketing team based in the headquarters is that they might not be able to attract the minority groups, because the offers may be irrelevant to them, an example of this is if the marketing team has a promotion on ham/bacon it will be irrelevant to vegetarians as they don’t have meat, it will also be irrelevant to Muslim as they are not allowed to eat it, another disadvantage of marketing is that they don’t collect market data through the customers but resources so they won’t know what their customers actually want and require
Clubcard:
One o the main function of the main functions of the clubcard is to help the marketing department to know the buying habits of their customers so they are able to advertise promotions that would appeal to customers, this is also efficient as they won’t have to spend money hiring people to market research as they acquire it all though the clubcard. The clubcard is a service that has been introduced to their customers of Tesco PLC, this is a service which allows customers to collect clubcard points which they are able to use in the future for anything that they require but the clubcardpoints can only be used in order to obtain anything that is offered by Tesco plc such as travel packages or car insurance. The information that is on the clubcard consist if the products that the person purchases from Tesco PLC supermarkets so they are able to target different branded but similar products at the person in hope of them being persuaded in purchasing the product. The whole point of the clubcard is for Tesco to identify customers buying habits and build promotional and merchandising campaigns around them
The data that can be collected include the buying habits of their customers, their personnel data such as name, age, address, email account, gender, phone number etc. They use the data that they have collected for marketing and promotion reasons, e.g. they would use the information to find out the buying habits of their customers, they will then market promotional offers based on products that customers regularly purchase, they also use this to target promotional offers directly to the customers i.e. emails, so they know that the product that they regularly purchase is up for offer so they will be intrigued to purchase it on promotional prices. The information that is collected has to be up to date and relevant in order for the organisation to use it for strategic decision making
Finance:
Through the use of the information of the financial report Tesco PLC are able to use the information to plan for the future budgets and spending’s.
The finance department will collect information on their customers to see in which departments they are doing better in compared to their bitter rivals, they will then pick out the departments that they are not doing well and see which changes that they can make that will undermine their competitors, for example if Tesco PLC was spending more money on marketing and got the same results as Asda and they were spending less than they would find out ways in reducing cost to less than Asda and also get the same output
The finance team use the information that they have collected to their advantage as they are able to research the different marketing that are doing well and then invest in it if it is worthwhile and are financials successful for the company. The finance team also set budgets and realistic targets that can be achieved by the different sectors in which Tesco PLC have entered e.g. set financial targets and budgets for the communication sector. The finance team in Tesco also use all the information to find out the amount of sales that have occurred in Tesco. They also use the information and data collected for investment, budgeting, sales etc
The way that Tesco PLC would obtain financial information is through deducting the cost by the profit in order to find out the operating costs and the revenue. It will also be used to set budgets. Analyse sales, and also predict profits
The advantage if this is that Tesco PLC are able to tell in which areas of their business are making a lot of profit and which are making not a lot of profit so they are able to make drastic changes in order to improve the profit and cost market for those different Tesco PLC departments
The disadvantage of this is that if they changes are already made and not much has changed in the profit margin then Tesco PLC might have to scrap the department which may have a small or big impact on the financial statement but it will have an impact
Conclusion:
The report has stated the effectiveness of business information such as finance and marketing which is used to make strategic decision.It has also stated how the marketing and finance team actually do their research and what they do with it in
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serhadsdeadhotmailcom (student)
