Marketing Essentials Assignment Sample - IKEA

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing functions.................................................................1
P2 Marketing impact and interrelates with other functional department....................................4
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix...............................................................................................6
TASK 3..........................................................................................................................................10
P4 Evaluate a marketing plan....................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is defined to informing and communicating about goods and services to
prospective buyers (Babin and Zikmund, 2015). By using marketing methods, a company will
be able to increase the demand of goods of the firm continuously. Along with that company use
the techniques of marketing its main aim is to show the items usage, features, uniqueness, its
price and many more. IKEA is an worlds biggest furniture retailer firm which consists design
furniture. It was introduced by Ingvar Kamprad in 1943. In this report, it covers the roles and
responsibilities of marketing functions and its size as well as scope of functional department of
marketing. In this, preparing a plan of marketing along with that comparison of marketing mix is
done with their competitors.
TASK 1
P1 Roles and responsibilities of marketing functions
Marketing
It is defined as a process of creating, interacting, delivering and exchanges of
commodities that are having value for society, partners and customers at large.
Current trends
In this, mobile marketing is having very less utilization in previews years. Various
companies are using emails, desktop and templates applications. Through this it aid in growth
and opportunities are very much bigger and brighter as well. Performing activities online is
based on its cost per actions as it is wider in advertisement along with that they also evaluate the
brand awareness as well as effectiveness.
Future trends
In this, their will be an emerging trends of smartphones mobile are one of main
component influence on marketing (Baker, 2014). Transparency will dictate the relations with
brand customers. As customers are much demanding in their expectations of transparency. Social
networking is an internal part of discipline in marketing.
Different process of marketing
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 Mission: IKEA refer to give higher product quality to their buyers. In this, organisation
have to make a mission initially. So, they can implement in the firm properly (Batt,
2013). Situational analysis: Company is having a competitive benefits which is driven by their
commitments for understanding the customer requirements, focus on items as well as
services and collaborating work culture or environment.
( Source: Marketing process, 2018) Marketing strategy: Firms is offering new schemes to their buyers and it relies on brand
loyalty from existing consumers. They are using strategy by introducing a new products
or services. Marketing mix: Organisation gives various range of items, it value on premium pricing
as well as government strict the guidelines of distribution. It will aid buyers to purchase
products according to their budget. Implementing and control: In last, organisation apply all the strategies according to their
plans as well as control them. If they are able to apply the process properly it will help in
attracting buyers and increase the level of profits as well.
Roles and responsibilities of marketing functions
IKEA is also performing marketing functions as it is very main part of the firm. They
organise a proper research which help in taking effective decisions for achieving goals and
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Illustration 1: Marketing process, 2018

objectives within a span of time. Their are several kinds of roles and responsibilities of
marketing functions which are given below: Product: The products are manufactured with an aim to satisfy wants as well as needs
of buyers. It will aid in attracting lots of customers towards organisation. Goods should
be promoted in an effective way by which they can earn higher profits. Organisation also
have to analyse their competitors products before launching a new services for producing
a new item within a market (Functions of marketing, 2017).
( Source: Functions of marketing, 2018) Price: It is very much important for IKEA to manage a fix cost of their services and
goods. They have to set up price through analysing pricing strategies of their competitors
and manufacture costs of products along with assessing external environment factors.
IKEA marketing team keep on analysing buyers wants and taste for taking a proper
decisions of pricing (Walliman, 2015). Distribution: Company's purpose is to increase the level of profits as well as fulfilling
the buyers requirements. IKEA are distributing items as well as services to lots of
customers. Firms distribute their goods to various areas within a marketplace which can
be further identified through marketing practices.
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Illustration 2: Functions of marketing, 2018

 Promotion: IKEA is using several promotional activities for making aware of their items
to their buyers. Some of methods of promotion are used by firms are websites,
newspapers, press releases and so on. It is important for IKEA to identify the best
opportunities by which companies can provide detailed information of items for
enhancing of sales. Financing: IKEA should have proper funds for accomplishing business activities
effectively. If firm is not having efficient finance then company will not able to compete
market for a long run. The Marketing activities assure that sales are maximised so that a
business is possessed with right financial resources.
 MIS: It help in gathering large numbers of data and information for analysing market
condition in an proper manner. Marketing department get effective informations which is
provided by MIS to them. So, they can take a appropriate decisions. Hence, organisation
can aid in taking effective decisions of their items or services (Swenson, Rhoads and
Whitlark, 2014).
P2 Marketing impact and interrelates with other functional department
In today's times, company is having several functional department within the companies.
So, they manage all functions or activities efficiently and properly within a market so that better
results could be availed. Their are various functional departments which are interrelated with
marketing department are discussed in detail below: Production department: If organisation have to take proper decisions it is important to
coordinate with marketing department before manufacturing a products and services. It
will assist in fulfilling their consumers requirement in the best possible manner.
(Rudden, 2016). Organisation will provide goods according to customers demands as
well as needs within market. In order to make a new product successful they have to
interact with marketing manager for knowing buyers wants and needs as well.
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( Source: Functional department, 2017) Finance department: It is an very essential part for organisation to have a effective
finance for operating a business properly within a market. For completing a market
research there is a requirement of funds which is being provided by the finance
department for an organisation. Therefore it is essential for both the manager of
departments to have a proper understanding for running a enterprise successfully. Sales and marketing department: This division is interrelated with marketing. In order
to make a effectively apply marketing plan within organisation it will assist in grabbing
attentions of buyers. It will gave an advantage of enhancing sales which will be better for
both divisions (Chinn, 2017). Human resource department:Human resource manager is responsible to hire talented
workers within the company. The team of marketing is hired by human resources. So, it
is important to have proper coordination within both the departments for accomplish
their work successfully. IKEA is known to be provider customer with new services or
products to their customers for achieving a goals as well as higher level of profits as
well.
 Research and development department: IKEA is having several sub divisions which aid
in offering various new offers by accomplishing the research. In this, both divisions are
having a favourable situation for an organisation. Company attempts to identify need and
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Illustration 3: Functional department, 2017

wants of customers through market research which is later fulfilled by the R&D with
development of suitable products.
TASK 2
P3 Comparison of marketing mix
This elements of marketing mix is very much essential for any organisation. It is
important for each company to keep on mind about buyers needs at a time of making fresh
products and services (Purvis, 2016). Their are several techniques as well as tools which are
utilized by IKEA. Organisation make their techniques by analysing their competitors like as
WALMART so that competitive position could be achieved. The analysis of competitors is
helpful in making effective decision relating to marketing mixIt includes product, price, place,
promotion, process. People and physical evidence. Therefore, comparison made within
WALMART and IKEA are given below:
( Source; Marketing mix)
Marketing mix IKEA WALMART
Product This model aid the
managements of IKEA to meet
top positions within
marketplace in the field of
housing furnishing across the
globe. It products are outdoor
furniture, goods of children
WALMART is a multinational
retailer of America. This firms
has wide-ranging nature of
goods such as: Movies and
music, home and furniture,
clothing, Jewellery, Footwear,
Health and beauty, Toys, Photo
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Illustration 4: Marketing mix, 2018

and baby, eating, desks, chairs
and many more (Desai, 2013).
finishing, Pet supplies, Craft
supplies, Sporting fitness and
goods etc. As per products
nature of various department
are established as well as they
are making appropriate
research in their marketplace.
Price Managements of IKEA is
adopting a premium pricing
strategy which covers all
expenses as well as attract
higher numbers of buyers to
purchase their items. IKEA is
having various numbers of
stores all across the globe it’s
natural organisation sale
several category of products
along with that the cost of
them are fixed as per country
consumers buying power.
Because of managers of IKEA
is able to understand the policy
of pricing as well as fix the
cost accordingly.
WALMART understand the
work of multinational
cooperation in various
products field as well as
determination the pricing
policy naturally which vary
from one another. The
WALMART managers mostly
prefer to adopt the bundle
pricing policy which covers all
the expenses and aspects of
company and buyers as well.
WALMART firm is running
their business in various
nations (Perreault, 2010).
Therefore, the techniques are
changes as per their consumers
buying power so they can
maintain balance.
Place IKEA's availability of services
and products are good due to
effective management of
distribution techniques and
WALMART is having approx
11600 stores across the globe.
Managers of company are
using most effective channels
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processes. Organisation is
having approx 500 stores in 50
nations so it is important that
all the products are distributed
timely within the stores
without any wastages
(Papasolomou and Melanthiou,
2012).
of distribution as well as
formulation of strategy like as
wholesaler, retailer etc. As per
their demands and needs of
buyers they hire a number of
vendors from various nations.
These suppliers timely provide
the products in WALMART
stores within a given time.
WALMART cooperation’s is
having 150 + centres across the
globe. Company several nature
of stores are their as per their
areas such as discount stores,
neighbourhood stores, express
stores and super market stores.
Promotion This company is having its
major concentration on
advertisement a products so
that buyers can be aware about
their goods. IKEA mainly
preferred to adopt latest
promotional techniques as per
present scenario such as
television, social media
advertisements, display on
hoardings, printing medium
and many more. IKEA is also
taking part in various events
are conducted across the
WALMART company is
presently adopting a digital
promotions mode are print
media, newspapers and many
more. The marketing managers
mainly work on WALMART
websites. So, it would be easy
to utilize all kinds of
consumers. Companies are
using various activities for
promoting their products are
Television, online advertising
and many more. (Ogunmokun
and Tang, 2012).
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world.
Process IKEA buyers visits the
showrooms as well as choose a
desire kitchen appliances,
household accessors’, and
furniture as well as select the
payment mode. At last, deliver
of products left which is
accomplished by organisations
WALMART process is linked
with all procedure and works
are followed at a time of
selling goods to their buyers
such as delivery procedure,
Displaying of products in
stores and particular area as
per their buyers preferences
etc. WALMART stores adopt
the well -designed process by
increasing the buyer
satisfaction level.
People In this model, IKEA customer
account or buyer level of
comfort as well as maintain a
secure relationship. It is
performed by members of
front line as well as companies
purchasing and sales division
of work. It is important to gain
the trust of buyers as well as
maintain them for a long run
(Mitchell, 2012).
WALMART is providing
multiple divisions of goods to
their buyers. It will aid in
satisfying their wants as well
as improve the living
standards. Goods provide by
organisation involve the best
parameters. The well -trained
workers treat all the buyers in a
polite way as well as any
problem arises they try to solve
the problems in well -behaved
way.
Physical evidence IKEA always select the areas WALMART areas of stores
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which give comfort and
security experiences to buyers.
Organisation prefer those
services areas which enhance
the level of environments
smoothly.
depend on buyers easily for
reach their stores. Over 11600
stores are established in
locations where buyers are
more conveniently to reach the
store. Companies employees of
WALMART are available
across the globe.
TASK 3
P4 Evaluate a marketing plan
Executive summary
IKEA is an global retail chain which is spread all over the globe. It was established by
Ingvar Kampard in 1943. Firms are having stores across 38 nations. This company is having its
headquarters in Sweden. It gives its buyers low price functional furniture is very easy to set up.
The main IKEA principle is to develop by using their own resources.
IKEA Vision
“For creating a best life each day for various peoples”
IKEA Mission
“To give a wide range of well designed furniture and functioning a products of home
furnishing at lower rates so that various people can afford their goods ”
Objectives of IKEA
 To grab higher numbers of persons
 To enhancing enterprise in others areas such as distribution and operations. To improving the system through which inventories are converted in an effective way.
SWOT Analysis of IKEA Strength: IKEA biggest strengths are diversified product portfolio, market presence,
brand reputation, supply chain integration, buyers knowledge and constantly utilization of
innovation to drive their prices down.
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( Source: SWOT Analysis, 2017 ) Weakness: Organisation is having their weak points are having a negative publicity,
standards goods and declining of its quality (Gummesson, 2011). Opportunities: Companies are having opportunities of growth in online sales, expansion
into economic development and increasing growth of grocery market. Threats: IKEA is having threats of intensifying competition as well as growing of
average customer income.
STP OF IKEA Segmenting: Organisation segments can be predominately demographic as well as
psycho-graphic (Jones and Rowley, 2011). Customers are younger who are very much
educated people of white collar which are having strong values as well as beliefs of
culture.
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Illustration 5: SWOT Analysis,
2017

( Source: STP Process, 2018 ) Targetting: IKEA is targetting a market which is relocated in the urban regions.
According to United Kingdom, 54% population of globe is living in urban areas of the
country, expected proportion is increasing 66% within the year 2050. It will help in
expanding business internationally as well as growth and expansion. Positioning: IKEA is positioned as a leader within the world of retail chain of home
furnishing. Various areas of urban location in this company is positioned by investing
directly (Forrester, 2010).
Marketing mix Product: Organisation is having several goods as well as continuously manufacturing and
selling items. They are providing home goods such as kitchen, living room, bathroom,
seasonal items and many more. Company can be utilize natural resources of Peru's like as
gold, timber, copper and silver to create goods by saving funds. Price: IKEA is providing affordable price of every goods as well as it is used by
particular market they are entering. Organisation are using a premium pricing strategy.
Having a range limited of articles along with higher volume of sales allow firm to keep
price low. (Diana, 2013). Promotion: IKEA is having its key promotional campaigns is to mail directly to high
catalogue, it features all of its goods. For promoting their products they are using social
websites, televisions and print media. It spend around 70% on its annual budget of
marketing within catalogues of printing. In this, 84% household are promoted through
internet.
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Illustration 6: STP Process, 2018

 Place: Organisation are located in Peru's. Lima is an capital of Peru's which is an urban
area. It manufacture a highest part of Peru's Gross Domestic Product as well as various
universities are found in capital, it is an age group which they want to target. Firms
introduce the site of E-commerce in which they displayed the goods in an effective way
and buyers choose the items after that make a online payment by selecting a appropriate
payments mode.(Durand and Barlow, 2012).
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 59000 15700 17300 24000 20000
Investment 23600 17900 20000 17300
Total 59000 39300 35200 44000 37300
Marketing
expenditures
Advertisement 10000 7100 6700 6400 6600
Sales promotion 2500 2500 5000 3600 9000
Direct marketing 7500 6500 2500 7500 2500
Total 20000 16100 14200 17500 18100
Available balance 39000 23200 21000 26500 19200
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Marketing strategy: It is related with customers relations which is utilize by IKEA organisation
for making a condition favourable for them in several locations. Organisation is having its
strategy of adopting internet advertising for attracting higher numbers of customers through
undertaking of digital tools.
Implementation and Control: Activities are related to marketing plan which help in meeting
goals properly as well as efficiently manner. IKEA stores is planned to recruit 300 workers per
store along with that approx 500 construction employees to met the timeline. It will emphasizes
their catalogue online as well as enhance their business online ordering by their enterprise
websites.
Evaluation: Obstacles and barriers are decreasing in the place of marketer. It aid in effective and
efficient working environment of company.
CONCLUSION
As per above report it has been concluded that IKEA is having its clear vision by adding
up the value to their customers without considering market conditions. Organisation is having a
long lasting relations with their suppliers as well as its customers. It is having a good reputation
of their brands as well as its presence within a market. In this, company had make a comparison
of marketing mix with their rivals. Also describe the roles and responsibilities of marketing
functions as well as interlined functional department with marketing divisions. Along with that
also prepared a marketing plan of IKEA. Proper analysed of all the activities will aid in
achieving higher profits and goals within a marketplace.
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Functions of marketing. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/functions-marketing-business-32399.html>.
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