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
Club card
The main function of the club card is that it encourages the marketing department to know the buying habits of their consumers so they are able to advertise promotions that would appeal to their consumers, this is very efficient as businesses won’t have to spend money hiring people to research are particular market, as they acquire it all through the club card that consumers use. The club card is used in Tesco PLC, this is a service which allows their consumers to collect clubcard points, which they are able to use in future for anything that they require but the club card, however the points needs to be used in order to obtain anything that is offered by Tesco plc such as travel packages or car insurance etc. 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 products, but related products the person in hope of them being persuaded in purchasing the product. This indicates the club card is for Tesco to identify customers buying habits and build promotional and merchandising campaigns.
The data that is collected from their consumers buying habits, their personnel data such as name, age, address, email account, gender, phone number etc. businesses use the data that they have collected for marketing and promotion reasons. For example, they would use the information to find out the buying habits of their consumers, and then market promotional offers based on products that customers regularly purchase, they also use this to target promotional offers directly to the customers, such as emails, so they know that the products that they regularly purchased is up for offer so they will be encouraged 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
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 competitors, they will then pick out the departments that aren’t not doing well and see which changes that they can make that will undermine their competitors and develop that department, 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, because they are able to research the different marketing that are doing well and then invest, if it’s useful, and then their financials successful for the company. The finance team will then set a realistic target and budget that the organisation can achieve by different aspects in which the organisation has entered. For example, set financial targets and budgets for the communication sector. The finance team in Tesco plc uses all the information to find out the amount of sales that have occurred in Tesco. This indicates that they also use the information and data collected for investment, budgeting, sales etc
Tesco PLC would obtain financial information is through taking 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 of this is that Tesco PLC are able to tell in which aspects 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 their 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 get rid of the department which may have a small or big impact on the financial statement but it will have an impact.
In 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