M1
In this task, I will compare the marketing techniques used in marketing products and services in
Tesco and Oxfam.
Relationship Marketing:
Relationship marketing is vital as it attracts the lifetime loyalty of customers. To begin with, Tesco
and Oxfam both have similar strategies to boost the relationship between them and the customers
and donators. Both organisations use comparable methods of communication to reach their
customers. For example, the two companies make use of newsletters and updates to keep in touch
with potential sources of income. Tesco provides brochures to keep customers informed about
special deals and offers and Oxfam distributes leaflets to notify the general public about their
progress and thus encourage them to donate. In addition to this, both organisations have their
customer service, which enables them to clarify any ambiguities through enquiries. This facility
encourages verbal communication between the company and the public and in most cases
strengthens their relationship. Furthermore, nowadays technology has earned a considerable place
in our daily lives. As a result, the website of Oxfam and Tesco can be used to further promote their
businesses and indulge the interest of potential buyers and donators.
On the other hand, there are also differences in the marketing techniques of the two organisations.
Tesco is a profit-making company, whereas Oxfam is a charity and relies on donations. This means
that Tesco can afford to spend more on events and magazines. The organisation can also distribute
loyalty cards and monitor customers’ purchases. Therefore, if a client is regularly buying baby
products, it will be indicated on the system. Consequently, Tesco can send vouchers and inform
them of offers on related products. Services like these nurture the loyalty of customers and
encourage them to shop at Tesco. It costs a considerable amount of money but the organisation
knows that if they are successful in impressing them, then the lifetime value of a customer will more
than cover the cost of these. Oxfam however, has limited resources as it has to save as much money
as possible to help those in need. As a result, it cannot afford to spend much on exclusive privileges
and has to stick to simple newsletters, updates, blogs, websites, press releases, free pens and T-
shirts. The organisation must try to identify who the valuable customers might be, and then find a
way to attract and keep them.
Branding and Buyer behaviour:
A strong, unique and successful brand can stay in customers’ mind and influence buyer behaviour.
Once a company has established a brand, which is the case for Tesco and Oxfam, it can bring out
new products and services with less fear of failure. The reason being is, customers already know
about the brand, either because they have tried it before, heard about it, or simply because it has a
long history. Companies can build their brand by using a consistent image, font, corporate colours,
shapes and slogans.
Both Oxfam and Tesco work towards reinforcing their brand. Oxfam has the green symbol and its
slogan is ‘Be Humankind’, whereas Tesco has its name in red and underlined in blue, with the
following slogan: ‘Every Little Helps’. Their brand is then reinforced through different way; staffs’
uniforms, shop fronts, packaging, badges, hoardings, banners, posters on delivery vans...
In this task, I will compare the marketing techniques used in marketing products and services in
Tesco and Oxfam.
Relationship Marketing:
Relationship marketing is vital as it attracts the lifetime loyalty of customers. To begin with, Tesco
and Oxfam both have similar strategies to boost the relationship between them and the customers
and donators. Both organisations use comparable methods of communication to reach their
customers. For example, the two companies make use of newsletters and updates to keep in touch
with potential sources of income. Tesco provides brochures to keep customers informed about
special deals and offers and Oxfam distributes leaflets to notify the general public about their
progress and thus encourage them to donate. In addition to this, both organisations have their
customer service, which enables them to clarify any ambiguities through enquiries. This facility
encourages verbal communication between the company and the public and in most cases
strengthens their relationship. Furthermore, nowadays technology has earned a considerable place
in our daily lives. As a result, the website of Oxfam and Tesco can be used to further promote their
businesses and indulge the interest of potential buyers and donators.
On the other hand, there are also differences in the marketing techniques of the two organisations.
Tesco is a profit-making company, whereas Oxfam is a charity and relies on donations. This means
that Tesco can afford to spend more on events and magazines. The organisation can also distribute
loyalty cards and monitor customers’ purchases. Therefore, if a client is regularly buying baby
products, it will be indicated on the system. Consequently, Tesco can send vouchers and inform
them of offers on related products. Services like these nurture the loyalty of customers and
encourage them to shop at Tesco. It costs a considerable amount of money but the organisation
knows that if they are successful in impressing them, then the lifetime value of a customer will more
than cover the cost of these. Oxfam however, has limited resources as it has to save as much money
as possible to help those in need. As a result, it cannot afford to spend much on exclusive privileges
and has to stick to simple newsletters, updates, blogs, websites, press releases, free pens and T-
shirts. The organisation must try to identify who the valuable customers might be, and then find a
way to attract and keep them.
Branding and Buyer behaviour:
A strong, unique and successful brand can stay in customers’ mind and influence buyer behaviour.
Once a company has established a brand, which is the case for Tesco and Oxfam, it can bring out
new products and services with less fear of failure. The reason being is, customers already know
about the brand, either because they have tried it before, heard about it, or simply because it has a
long history. Companies can build their brand by using a consistent image, font, corporate colours,
shapes and slogans.
Both Oxfam and Tesco work towards reinforcing their brand. Oxfam has the green symbol and its
slogan is ‘Be Humankind’, whereas Tesco has its name in red and underlined in blue, with the
following slogan: ‘Every Little Helps’. Their brand is then reinforced through different way; staffs’
uniforms, shop fronts, packaging, badges, hoardings, banners, posters on delivery vans...
