Marketing Essentials

This essay explores the fundamentals of marketing, analyzing the roles and responsibilities of a marketing department, its interrelationship with other departments, and the application of the marketing mix. It examines IKEA's marketing strategies, comparing them to Walmart's, and outlines a basic marketing plan for IKEA, including SWOT analysis, financial projections, and evaluation methods.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing department.............................................................1
P2 Roles and responsibilities of marketing relate to organisational context...............................4
TASK 2............................................................................................................................................5
P3 Various organisations apply marketing mix to the marketing planning.................................5
TASK 3............................................................................................................................................8
P4 Basic marketing plan..............................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing activities are important of every organisation to build good communication and
relation with customers. It is the duty of the management of organisation is to adopt different
marketing approaches which contribute to attain long tern sustainability in the market. Marketing
activities have the direct impact upon the sales and profit of organisation which is enhanced to
the optimum level through spread awareness among the customers about their different offerings
and special features of their products (Baker and Saren, 2016). All such activities are performed
by the marketing department of the organisation. There are many other activities which are
associated with marketing department functioning includes development of the product,
establishment of effective distribution channels and determination of the price of products etc.
IKEA is multinational retail organisation which designs and sells different kind of products. This
organisation was established in 1943 and provides the products and services in many countries in
all over the world. The different kind of products in which this organisation deals includes
kitchen appliances, furniture and home appliances. It is recognised as one of the biggest retailer
of the furniture.
In the present report explain about different kind of roles and functions of the marketing
department and interrelation of the marketing function with other departments. Also,
development of marketing mix of this organisation with another same industry organisation and
formulation of marketing plans which assist the employees in accomplishment of their
objectives.
TASK 1
P1. Roles and responsibilities of marketing department
Overview of IKEA
This organisation was founded in 1943 in Sweden. It is retail organisation which
conducts their business activities across the boundaries of their domestic nation. In terms of
workforce, they have large number of employees to provide their final products to en customers.
This organisation performs two types of actions which are designing and selling of the products
in which they deal. The different kind of product lines under which it provides their product
includes furniture, home accessories and kitchen appliances. In 2008, this organisation is
recognised as the largest furniture retailer in world. The organisation is able to earn the large
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number of profits because it provides innovative furniture and home accessories which are Eco
friendly. For attaining sustainability in market many initiatives are taken by the management of
organisation regarding controlling of their costs, making of their operations more effective and
efficient and development of the products according to the preferences of customers (Bastable,
2016). This will provides the opportunity to the management of organisation is to attain control
over the process of their products which assist in the global expansion of their business
operations.
Marketing
It is refers as the activities which are provided by the marketing department of the
organisation regarding transferring of their products to final customers. One of the most
important functions which is performed by the marketing department is to assess the conditions
and trend which is present in market. On the basis of the analysis of such trends, preferences of
customer are identified. This will provides the opportunity to the management of organisation to
build the new features in their products which satisfies their different needs. This will also
includes determination of the number of competitors prevail in market and the strategies adopted
by them. It enhances their decision making power which contributes in the process of
formulation of effective strategies which drive their competitors out of the market. It is
considered as marketing is the combination of 4P’s. All such different kind of P’s and their role
is defined below:
 Development and selection of suitable product as per the needs of customer and market
trends
 Identification of the most suitable price which helps to attract the large number of
customers through influencing their buying behaviour (Desai, 2013).
 Establishment of the more appropriate distribution channels which provide the function
regarding timely distribution of their product to different stores in the different countries
with the help of suppliers.
 Formulation and adoption of effective promotional strategy which helps to aware the
customer about their different offerings and product lines
One of the important aspects of marketing is about the promotion o the existing and potential
products of organisation. This is most useful method for IKEA to expand their operation in
market and improve their market share through improving their customer base. There are
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many promotional methods are available such traditional and modern. One of the best
methods according to the current scenario time is modern approaches of marketing. This
medium includes the use of digital platform to promote their products. For ex. Social media
which is most suitable and cost efficient method to attain the place in the mid of youth. This
method also helps to build good elation with their customers through redress of their various
problems. It provides the opportunity is to gain their trust and loyalty towards their brand.
Roles and responsibilities of marketing department
It is observed that many roles and responsibilities are posses by the marketing manager in
the department which is required to perform to accomplish the targets within stipulated
period of time (Dibb and Simkin, 2013). Such different responsibilities are defined below:
Product: There are the core business offerings which are provided by organisation in
market. But in this regard, they have the many responsibility is to provide the best product to
their customers which is not available with their competitors in terms of quality and features.
To attain such kind of competency need to analyse market about the strategies of their
competitors, quality and features of their products and technologies which persist in market.
It helps to identify the new ideas and their effective implementation through adoption of new
technologies within the organisation. The products which provided by IKEA are home
accessories, furniture’s and kitchen appliances.
Selling: One of the important functions which is performed by the marketing manager of
organisation is to sell their products in market for generating profits and running of business
activities on regular basis. For improvement of the sales of their different products marketing
manager of IKEA is need to adopt new strategies which helps to improve their distribution
channels and their products are timely available in different stores according to the demand
present in market. Another aspect which helps to improve their customer base is
advertisement of their products through different mediums like print, digital media etc. It
influences the behaviour customers and provides opportunity to IKEA is to become leading
retail organisation through attaining good level of sales (Hugos, 2011).
Pricing: One of the important aspect which has direct negative or positive impact over
the sales and revenue figures of organisation. It is the responsibility of the marketing
manager of IKEA is to assess the pricing policies of their competitors and the buying
capacity of the different segment of society. This will improve their understanding helps to
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fix such prices which assist in the process of attaining high position in market. At present, the
pricing policy which is adopted by IKEA for their products is affordable in nature and in the
budget of customers.
Promotion: This includes the activities regarding advertisement of products and services
of organisation through application of different channels. The main purpose behind the use of
promotional techniques is to provide the information about the features of products to their
customers and build effective bond with them through they can retain them for longer period
of time. There are different medium which are available for promotional activities includes
newspaper, television, social media etc. One of the best method is social media because wide
in range and cost efficient which helps in reduction in the amount of expenses also.
Financing: Funds are essential requirement to carry out different functions. It is the duty
of the marketing manager is to assess the need of amount which is required for effective
performance of their functions and prepare budget which guides the employees is to follow
such budget while give their functions (Jones and Rowley, 2011).
Distribution: This includes the process of identification of suppliers which helps to
effectively distribute their products at their various stores. IKEA is multinational organisation
need to appoint suppliers in different nations to make availability of their products. This will
provides the opportunity is to improve their sales through satisfaction of the preferences of
customers.
P2 Roles and responsibilities of marketing relate to organisational context
Marketing is one of the important function which assist the other department of
organisation is to perform their function which effectiveness. It helps to bring coordination in
different departmental activities which reduce the chance of mistakes and duplication of efforts.
The interrelationship of the marketing department with others is understood with the help of
points which are defined below:
Marketing with operating: IKEA is retail organisation which also designs their products.
Marketing department of IKEA conduct the research and identifies the designs which are trend.
Such information is further used by the operation department is to bring changes in their old
designs of products and cope with the trends which are present in market. Simultaneously,
marketing department helps ion implementation of new technologies within organisation for
faster the designing activities of their furniture’s.
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Marketing with HR department: The main role of HR department within the IKEA is to
appoint the candidates who are skilful and knowledgeable. Also, many functions are provided by
them includes determination of remuneration, training of employees, appraisal of performance
etc. It regards to marketing department, it helps to find out the deviation in the performance of
the employees of this department and provide adequate solutions. Development of effective
training programmes helps in improvement of the skills through which they can use innovative
techniques of marketing (Lipsman and et. al., 2012).
Marketing with finance department: The main aim of finance department in IKEA is to
maintain the liquidity within the organisation to perform daily functions effectively. In regards to
marketing department they prepared budget as per their activities and effectively allocate the
funds which improve their working efficiency. Such budgets play an important role in
completion of the objectives within given amount funds. This will provide the opportunity to the
management of IKEA is to improve their profit margin through reduction in the amount of
unnecessary costs by completion of tasks within given amount of budget. Also allocation of the
adequate amount of funds improve the strength of marketing department is to use the modern
tools of marketing for attraction of the customers of their competitors also and makes their
position strong.
TASK 2
P3 Various organisations apply marketing mix to the marketing planning
On the basis of view point of Kotler, 2018, it has been stated that marketing mix is set of
controllable variables which an organisation can use to influence the response of purchasers.
Under this, four different variable s are included for an instance product, price, place and
promotion to in order to develop unique selling point along with brand image. On the other hand,
According to Borden, 2018, marketing mix has weaknesses in context to application in
management of marketing as well as relationship of industrial goods and services. It is not
helpful in see the shortcomings in products at market place.
It is an effective tool of marketing management which employed through marketers. It is
an area in which there is a requirement to marketing managers to take better or effective decision
which is beneficial or effective of an organisation. It is an effective marketing tool which
available to business in order to gain reaction from target market (Baker and Saren, 2016). In
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marketing mix, there are 7ps included and these are product, price, place, promotion, people,
process and physical evidence. Under this, there is a comparison among the IKEA business firm
and Walmart organisations.
Marketing mix of IKEA Firm
Product- First IKEA organisations understand requirement as well as preferences of
consumers and then provide different variety of goods which can satisfy their needs in an
effective manner. In addition to this, it has detailed list of goods catalogue ranging from the all
furniture products as well as fittings. It is global leading retail chain which provides its products
in all over the world.
Price- IKEA business firm competed with different international retail chain and also
local supermarkets. Minimum cost substitutes the concept, vision and idea of business. This firm
provides its services as well as goods at the reasonable cost so that everyone can use its goods in
an effective or better manner. Its main focus on better operation details and also cost control. It
permits IKEA organisation to minimum its cost over decade to year 2010 at the time of global
expansion (Bastable, 2016).
Place- This firm has got better place along with the distribution strategy. In addition to
this, distribution depends on some principles. It has more volume on production side and also
flat packages. It provide its goods through online by its online application.
Promotion- Its main focus on the marketing activities by using effective promotional
tools such as television, billboards, print media and online ads. It launches its promotional
campaign in all over the world. With the help of using cost discounts, festival coupons and some
of the other marketing related gimmicks in its bag, IKEA business firm assures that consumers
get continuous benefits from different deals which are offered through large scale producer.
People- This brand is based on consumer satisfaction as well as strong relationship. In
order to this, staff members of front line are directly included with consumers, IKEA
organisation has sales persons in front stage (Desai, 2013). The employees of this organisation
deal with customers in better manner and offer them effective quality of products.
Process- The selling process of IKEA organisation based in show rooms. Under this,
purchasers come, see and then chose payment as well as furniture with the help of using delivery
vehicle of IKEA organisation.
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Physical evidence- Escape of design services as well as offer tangible evidence of the
services or product preformed better. This firm has large number of stores in all over the world.
After entering in to the stores of this organisation, firm has particular layouts of paths.
Marketing mix of Walmart
Product- This organisation is a multinational retail brand store and also combination of
all the departments. In addition to this, different types of departments in this firm consists
movies, home, electricians and many others (Berkowit, 2016). Every department has different
variety of products like for an instance tablets, cell phones, computers etc.
Price- The main focus of Walmart organisation is on making effective pricing strategies.
This firm sets its records in this marketing mix through costing its goods. Walmart Company
procures goods at the large quantity and provides them in all over the world. Walmart
organisation uses various pricing strategies which are based in purchasing behaviour of
consumers in an effective manner. It offers its all products to consumers on minimum cost so
that every person can afford them in an easy manner.
Place- In all over the world, this organisation has more than 11500 retail stores. In
addition to this, in its distribution strategy involves direct delivery to the stores trough vendors
which are suppliers of retail stores. Products as well as services are placed in urban and rural
areas on the shelves. It has different kinds of stores which consist super centres, neighbourhood,
discount stored and express stores.
Promotion- Walmart business firm place its order to consumers through online by
earning more revenue. The website of this business firm is working in a better manner and also
its design is very attractive. Walmart firm makes the use of sales promotion, advertising, public
relations and some of the other methods in order to reach to the consumers.
People- Walmart conduct its business in all over the world and its main focus on
satisfying needs and demands of people by providing better quality of goods at reasonable cost.
The staff members of this firm are well trained and motivated in order to provide services to
people (Dibb and Simkin, 2013). They are able to handle all complaints as well as queries of
customers in an easy manner at stores. They provide satisfactory answers to consumers and solve
their all problems in an easy manner.
Process- The process at Walmart stores is effective as well as efficient in order to help
consumers in an easy manner. In its process includes systematic placement of goods, trolleys,
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categorization, different payment modes and many payment countries. The production system of
this firm is of good quality and it provides its products at minimum cost.
Physical evidence- The physical evidence of this organisation is seen through more than
the 11000 stores which are in all over the world. Every and each store has many categories of
goods, better product placement and many others. In context to this, Walmart organisation has
many offices which are spread in all over world and add some value to brand.
TASK 3
P4 Basic marketing plan
The marketing plan refers to an outline of all the marketing components like for instance
objectives, mission, vision, SWOT analysis, marketing mix and many others. In addition to this,
the four Ps of marketing mix are helpful for marketing manager of IKEA business firm in order
to create effective strategies for promoting services as well as goods to consumers in an effective
or successful manner (Hsu, 2011). With the help of effective marketing plan, an organisation can
do it all activities in an effective or systematic manner.
Company Background
IKEA organisation is Swedish- established based multinational firm and it produce as
well as sells its ready furniture, home accessories and also kitchen appliance to people at lowest
cost. It is one of the largest furniture brands since year 2008. This firm is known as for modernist
design for different kinds of furniture, interior design and appliances which are associated with
eco- friendly environment. In context to this, IKEA business firm is also known for cost control,
continuous growth of its products and also operational details.
Vision
The Vision of this organisation is to develop better every day for several people.
Mission
Mission of IKEA organisation is to make business of IKEA more productive and expand
business in to different markets (Hugos, 2011).
Objectives
There are some objectives of IKEA organisation given below as above:
 Make improvement in discounts as well as offers.
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 Per year, the growth rate of this firm increased 10%.
 Make improvement in quality of its goods. Outstanding value for the money.
SWOT analysis of IKEAS
Strengths
 The vision, objectives and goals of this
organisation is clear and they add some
value in order to make business firm
more successful.
 An integration of supply chain.
Diversified brand portfolio (Jeffery, 2010).
 This firm has great presence and brand
reputation at market place
Weaknesses
 Its main weakness is negative publicity
 The quality of these firm products is
reduced.
Opportunities
 Developing the online sales.
 It can be expand in to the developing
grocery market.
 IKEA business firm can expand its
business in growing economy.
Threats
 Large competition.
 Develop of income of consumers.
 Change in legal system
Marketing mix of IKEA
Product- IKEA organisation is one of leading retail organisation and it provides wide
range of services as well as products to people. It deals in furniture and provides wide range of
better quality products to consumers.
Price- For IKEA business firm, basis of costing value which is minimum cost. It provides
its goods at reasonable cost so that every person can avail in an easy manner (Jones and Rowley,
2011). This organisation design, manufacture, distribution and then sold to retailers at minimum
cost framework.
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Place- It is an international marketing business and sells accessories as well as furniture
in Australia, Europe, Asia and North America. Its business is related with retail stores. Most o its
stores are in out of the town. But this firm also provides its products through its online
application.
Promotion- It is an effective way to aware people about existing service or goods in
better manner. In its promotion mix involves sponsorship, newspapers, television advertisement,
magazines and some o the other elements (Lipsman and et. al., 2012). In addition to this the
recent campaigns involve IKEA kitchen advertisement.
Segmentation, Targeting and Positioning of IKEA
Psychographic, demographic and geographic segmentation is used through an
organisation in order to segment market to make available to dynamic marker of kitchen ware,
appliances and also furnishing industry.
IKEA organisation differentiated the target strategy in context to fulfil wants and
requirements of customers which are looking towards value for the money furnishing related
solutions.
This organisation has transformed its business being product based organisation in order
to positioning itself as value based positioning (Mihart, 2012).
Marketing strategy
In order to achieve the set objectives as well as target in the particular period of time then
in this case it is necessary for management of IKEA business firm is to formulate better
marketing related strategies. Regarding this, relationship marketing is an effective option which
assess in showing the effective or great relationship of an organisation.
Financial Projection of IKEA
Income statement All numbers in thousands
Revenue 31/12/17 31/12/16 31/12/15
Total revenue 22820400 24621900 25413000
Cost of revenue 12199600 14417200 15623800
Gross profit 10620800 10204700 9789200
Operating expenses
Selling general and 1068100 2460200 2643700
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administrative
Operating income or
loss 9552700 7744500 7145500
Income from continuing operations
Total other
income/expenses net -57900 6300 48500
Earnings before
interest and taxes 8573500 6866000 6555700
Interest expense - - -
Income before tax 8573500 6866000 6555700
Income tax expense 3381200 2179500 2026400
Net income from
continuing ops 5192300 4686500 4529300
Non-recurring events
Net income
Net income 5192300 4686500 4529300
Net income
applicable to
common shares 5192300 4686500 4529300
Execution
Under this, there is a necessity to follow all important steps in a proper manner. Through
this, an organization to formulate effective strategies in addition to attaining aims and goals
within specified period of time (Nguyen and Simkin, 2012). It will be helpful in providing many
advantages to an organisation and enhance growth rate as well as market share.
Evaluation
It is related to making effective judgement concerning to value, number and also amount.
Under this, there is an evaluation of all activities in a better manner. Some different methods of
an evaluation mention below:
Sales Analysis- In this, it is concerned with the sales volume on the yearly basis on the
basis different variety of products like furniture, kitchen goods, accessories etc.
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Market-Share Analysis- It is related to the study concerning about marketing shatter
whether it is high and also low. The market share of IKEA business firm is large (Novak, 2011).
Efficiency Ratios- Asset Turnover Ratio- Revenue (Sales)/Net Assets
Cost-Profitability Analysis- It includes an examination of profit in regards to pricing.
This shows a gap among the cost and also sales.
CONCLUSION
It has been concluded from the above given report that marketing is helpful in meeting
consumers as well as suppliers. It is a responsibility of business firm to provide effective quality
of goods as well as services to customers on the basis of their demands or perception. Under this
above given report studied about the roles as well as responsibilities of marketing department.
This department is work with the other departments in order to achieve aims and objectives of
firm within given time period. In mention report also studied about the differences among the
marketing mix of IKEA and Walmart business firms.
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