Marketing Essentials

This document provides an overview of marketing essentials, including a comparison of marketing mix strategies used by Walmart and IKEA. It also includes an assessment of various tactics used by IKEA to attain business objectives and the formation and assessment of a marketing plan for IKEA. The document covers the subject of Marketing and includes the course code, course name, and college/university information if mentioned.

Marketing Essentials

Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3) Comparing the ways in which various entities applying marketing mix..............................1
M3 assessment of various tactics use by organization to attain business objectives...................5
P4 Formation and assessment of marketing plan for IKEA........................................................5
M4 Detailed coherent and evidenced based Marketing plan for IKEA.......................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the process by which products and services are promoted utilizing advertising
and sales techniques. It is a process that enables an organization to raise its net revenue as well as
improve its productivity (Malhotra, Birks and Wills, 2013). The primary objective behind all the
development of this review is to gain an understanding of a marketing strategy and how it is
produced. IKEA is listed to present the clearer picture of marketing essential concept that is a
multinational company London based, UK. In this study, marketing mix research is carried out
that covers all facets of 7Ps. In addition, a promotional campaign toward IKEA is also being
established where company expects to promote their product across web advertisements
and sponsorship.
TASK 2
P3) Comparing the ways in which various entities applying marketing mix
Marketing mix relates to a scenario evaluation method that is used by an organization to
analyze its industries and conditions in that sector. it also assists an organization to determine the
appropriateness and efficiency of the products they produce (Dawn, 2014). Usually advertising
mix has four factors that are price product position and promotion, but this marketing mix
incorporates three additional components that are physical proof, method and people owing to
change in the service sector. The way in which marketing and advertising mix can be applied can
differ from organization to organization. To grasp such forms efficiently, a comparisons are
made among the two entities. Such firms are Walmart and IKEA. Walmart is also involved in the
retail sector, but it also has its offices in Arkansas, USA.
Marketing mix of both the companies is conducted below:
IKEA’s Walmart
Product IKEA's is among the biggest
supermarkets with about 12,000
lines of goods. The products of this
company's portfolio includes
furniture, cookware, household
products, decoration, textile,
Lightning, baby and children,
Walmart is a dual-brand grocery chain
that has a variety of products. All such
stores ' range of products involves
equipment as well as department,
residence and courtyard furnishings,
apparel goods, jewelry, drugstore,
health products goods, etc.
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bathroom products and much more.
Price The price dimension of marketing
mix refers to the approach adopted
by a company to assign rates to its
goods. IKEA's market model is
based on its "value for money"
mindset. In conjunction with such a
strategy, IKEA's aggressive pricing
strategy methods under which they
assign their product prices as per
their monopolistic tendencies '
prices and do not negotiation with
reliability (Vahlne and Jonsson,
2017).
Walmart's price approach is "cost
governance." Walmart's approach is
even strongly endorsed as this firm's
motto is also correlated with such a
business model that says "everyday
low prices." Walmart takes advantage
of those opportunities by retailing its
goods at minimal but good quality
prices.
Promotion Marketing mix promotion element
refers to the strategies and
strategies followed by an
organization to advertise their
brand. IKEA's strongly encourages
its brand through the use of various
advertising sources and
promotional strategies. IKEA
spreads its product in this way and
use all methods including
advertising on TV, internet, shop
signs, etc. Using celebrity
advertisement and athletics
promotions, this also encourages its
premium brand.
In Walmart's situation, this company
has limited the methods of selling its
luxury products and its goods.
Walmart primarily delivers its brand
on the websites of e-commerce where
it offers its customers with deals and
strategies to retain customers. It
delivers on multiple platforms of
social networks with such a emphasis
on Youtube, Twitter and facebook due
to their high daily use On such sites, it
has more than one thousand thousand
views or consumers who are subjected
to daily material posted by Walmart.
Place This component of marketing mix
refers to the business's production
Walmart is an international market
representative with more than 11,500
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approach. IKEA's is a wide-scale
company of roughly 433 stores and
714 shops, many of which have 24*
7 service. IKEA's allocation
approach also involves grocery
delivery facilities 52 countries. This
business have even partnered with
distribution partners who are able to
allocate their goods to application
developers (Tiwari, 2015).
retail outlets. The business operates
with its global branches in nearly 28
nations. Rather than partnering with
the other distribution partners,
Walmart controls all the assets at
which its goods like farm equipment,
trucks and operators can be
manufactured and distributed.
Physical
evidence
IKEA's huge warehouse designs are
physical evidence which provide
much more than a buying
experience. Once an
individual enter the store, it has
particular route maps and guides
daggers to assist customers get to
the required product. Physical proof
is an expanded product mix
component that has been created to
promote the organization of
operation. IKEA's retail model or
design are their physical proof.
Shops are also fitted with beverage
eateries as well as mother's baby
carrying regions. This also offers
public parking space since most
shops are situated in vast areas
outside of the towns.
In Walmart's situation, this
organization has limited the methods
of selling its luxury products and its
goods. Walmart primarily delivers its
brand name on the websites of e-
commerce in which it offers its
customers with deals and strategies to
retain customers. Walmart sells its
items in a separate, highly visible
product box on store shelves. This is
put on the firm's unique racks, which
have a distinctive hue and style. This
renders the location of these shelves in
crowded retail outlets simpler for
clients.
Process IKEA's system is its online retail
app, making it easy for consumers
This corporation's process is its
comfort that offers its clients with
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to purchase items with one tap.
IKEA's manufacturing process and
inventory control methods are by
far the most special. IKEA also
provides producers with a code of
ethics which sets out guidelines to
support them that reduce their
environmental politeness controls.
The models are priced differently.
This nearly purchases goods from
the manufacturers of 1800. The
final product is also produced in
fragments that clients can gather to
save costs (Ahrens and Guetz,
2015).
minimal effort. Wal-Mart’s shops have
shopping carts, deliberate advertising,
and classification that enables them
deliver the goods successfully. In To
order to determine customer
requirements, Walmart is actively
engaged to exploring new markets. It
also evolves knowledge of customer
requires by collecting in-store input,
its counselling service or social media
accounts.
People Workers are the IKEA's citizens
who are highly qualified and
educated because they have granted
Level 2 design apprentice. The
firm's managers and executives
have a wide range of skills which
further support them in improving
customer engagement. IKEA offers
people, i.e. their clients and staff,
the utmost priority. IKEA workers
believe in the concept that
individuals with an enthusiasm for
house decorating are simple and
clear. The culture of employees is
predicated on unity, passion and
enjoyable. The centre of the
Under sales force, Walmart has
individuals who play a crucial role
from its marketing campaigns. Such
individuals are educated in persuasion
strategies, and also show respect to
customers keeping the needs into
account. Walmart's managers or
workers are the citizens who are
treated as the property. Walmart has
over 2 thousand highly trained and
inspired staff.
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principles is employee satisfaction.
In contrast to both the advertising mix, each business uses its own advertising strategy to
reach higher target audiences.
M3 assessment of various tactics use by organization to attain business objectives
IKEA's goals involve increasing the brand through improving the brand awareness through
the use of new advertising strategies to reach the decent target audience (Baharuddin and
Rambli, 2017). There will be methods and techniques that this organization wants to enforce in
order to accomplish this goal Such approaches are identifying and successfully applying new
marketing tactics. Tactics may include web series support that can attract young consumers for
their shops. For several citizens, especially old and lower class group, installing furniture can be
a challenging task. IKEA must enhance its customer care and increase the convenience and
affordability of delivery and installation facilities.
P4 Formation and assessment of marketing plan for IKEA
Advertising strategy is described as a report that the business has established to formulate
and enforce techniques to effectively and efficiently carry out its business activities and
procedures (Bergmann. and Turelli, 2018). Such advertising strategies have proposed a new
marketing tactic in which IKEA will support various web sequence as a marketing tool through
which they can readily catch youngster's attention to their company goods and services.
Objectives
To achieve a marketing strategy, IKEA has to make intelligent targets that are as continues
to follow:
• IKEA aims to improve the income through revenue together with client base growth by
endorsing across television series (Hedlund and Andersson, 2017).
• Raising income and revenue by 20 percent and raising customer base by 20 percent.
• IKEA aims to boost its revenues and profits with enticing television series support that is
commonly used customers.
• By analyzing current and past information and data, the corresponding company forecasts
revenue and profit growth.
• The business has projected a span of one year reach revenue, income and clientele.
Situation Analysis (SWOT)
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IKEA's scenario assessment can be calculated by means of SWOT assessment as defined
below:
Strength - IKEA's are considered to be the biggest supermarkets hiring over 150,000
workers. Through internet initiatives, TV, sponsorship, this has encountered management team
and marketing and adverts. This has more than 800 stores in the Us, 600 stores. The main
strength of the firm is its simple philosophy which leads into a variety of products that the
consumers themselves may manufacture, led to humorous reductions that are then carried on to
the clients. IKEA has arose as the world's top seller of furnishings in its third-minded emphasis
on cost governance (Brad and Brad, 2015).
Weaknesses - There is a strong brand change from one to the next in the retail sector. For
IKEA, keeping their customers for the longer term is difficult. Because of its overemphasis in
cost leading, value often falls for a flip, especially in the present context in which the prices of
several products and manufactured goods have risen and have affected the firm's productivity.
The point to note is that, in the sense of rising healthcare costs and a need to duplicate standards
globally, sometimes it is difficult to keep performance. Many retail companies have low-cost
goods that reduce the gross margin.
Opportunities - By joint project and strategic partnership, IKEA does have an opportunity to
increase its company in many other new markets such as Europe, Africa. It has the chance to
grow in communities where citizens were more informed of the product and the brand which is
market opportunity (Campos and James, 2017).
Threats - As globalization has increased, it has developed a danger to the proper behaviour
of their commercial activities and operations by the respective organization. There have been a
lot of IKEA rivals like Amazon, ALDI, Asda and so on that are company warnings.
Strategies and tactics (STP)
The approaches must be based on STP as defined beneath:
Segmentation - IKEA's division their consumer base based on statistical variables like age,
wealth and demographic categories. These differentiated people chose to look at various
television series as people were more dependent.
Targeting - IKEA's typical age demographic from 18 to 30 as they watch many new show
on a regular basis which allows advertise their products and service on both the market. It has
aimed both men and women watching web series giving their maximum amount of time.
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Positioning - IKEA's is the biggest business company that markets to its customers retail
items. The reliability is quite high, which helps support large numbers of buyers. They used
sponsor schemes for pacing to promote their products and facilities using web series.
Action Plan
Its action strategy is based on the 4P advertising mix mentioned below: Product-IKEA's
is a general merchandise organization that retails several goods. All these goods will be sold
through a new advertising approach in this business plan.
Price - Cost of such a products or services must change price approach and selling by
incorporating the cost of the new partnership marketing strategy where they sell services at the
usual price.
Place - IKEA's retail stores will sell the items.
Promotion - With both the aid of Promotion, IKEA can support its product and items. This
support will be performed on specific web show content on the internet as they eat highly
popular in youth (Oh, Han, Nah and Kwon, 2016).
M4 Detailed coherent and evidenced based Marketing plan for IKEA
PARTICULARS
First Year amount in million
(£)
Second
Year
amount
in
million
(£)
Third
Year
amount
in
million
(£)
Fourth
Year
amount
in
million
(£)
Fifth
Year
amount
in
million
(£)
Opening capital 5000 10000 6000 2000
START-UP CAPITAL 9000
INVESTMENT 11000 15000 25000 12000 18000
TOTAL 20000 20000 35000 18000 20000
MARKETING
OUTLAY:
MARKETING 8000 9000 15000 3100 2800
PUBLICITY 8000 15000 5500 4500 2500
TOTAL 16000 24000 20500 7600 3500
Closing capital 36000 44000 55500 25600 23500
Monitoring and Control
IKEA will track its marketing strategy by evaluating and monitoring the site's results. It
helps companies finish the works with interruption on schedule. The business can also track and
supervise marketing sales and profit return on equity by examining them. This will assist them
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track product quality and advertising methods as well as minimize the risks associated with
wasting as well as the chance of activity derailment (Marketing Mix. 2017).
CONCLUSION
In the above study, it was deduced that an organization's marketing team plays a key role in
the organization's growth. The report notes that to increase the market share and sales, all
organizations need to create a marketing strategy. It is clearly interrelated that companies adopt
various marketing strategies and marketing mix is one of the traditional techniques to analyse the
competitive position. The market control and positioning also interpreted in the given context.
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REFERENCES
Books and Journals
Malhotra, N. K., Birks, D. F. and Wills, P., 2013. Essentials of marketing research. Harlow:
Pearson.
Dawn, S. K., 2014. Personalised Marketing: Concepts and Framework. Productivity. 54(4).
Vahlne, J. E. and Jonsson, A., 2017. Ambidexterity as a dynamic capability in the globalization
of the multinational business enterprise (MBE): Case studies of AB Volvo and
IKEA. International Business Review. 26(1). pp.57-70.
Tiwari, S., 2015. Standardized marketing strategies: a solution to the global competition? A case
study of IKEA in Norway, Sweden, France and China (Master's thesis, Universitetet i
Nordland).
Ahrens, I. and Guetz, T., 2015. Transnational Strategy Shift: The Importance of Cultural
Awareness:-Case Study: IKEA.
Baharuddin, N. A. and Rambli, D. R. A., 2017. A Conceptual Model of AR Based Experiential
Marketing.
Bergmann, N. and Turelli, D., 2018. The IKEA Effect in Restaurants: Testing Do-It-Yourself
Effects in Restaurant Meals.
Hedlund, C. and Andersson, E., 2017. Offline Stock-Outs in an Omnichannel Context: Assessing
Consumer Behavior in a Digitalized Retail Landscape-a Case Study of IKEA.
Brad, S. and Brad, E., 2015. Enhancing SWOT analysis with TRIZ-based tools to integrate
systematic innovation in early task design. Procedia engineering. 131. pp.616-625.
Campos, A. and James, R., 2017. Dirección estratégica.
Oh, S., Han, Y., Nah, K. and Kwon, K., 2016. Development Direction Research Of Korean
Lifestyle Brands Through Analysis For Global Lifestyle Brands-Focused On The Trend
Analysis. The International Business & Economics Research Journal (Online). 15(2).
p.41.
Online
Marketing Mix. 2017. [Online]. Available through: <https://marketingmix.co.uk/>.
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