Marketing Essentials Report: IKEA, Marketing Strategies, and Analysis

This report provides a comprehensive analysis of IKEA's marketing strategies, focusing on the roles and responsibilities of the marketing department within the organizational context. It delves into the application of the marketing mix, exploring how IKEA utilizes product, pricing, promotion, and place to achieve its marketing objectives. The report also examines the interrelation of the marketing function with other departments such as operations, research and development, human resources, and finance. Furthermore, it includes a discussion of the marketing plan for IKEA, outlining strategies for the coming period. The report concludes with an overview of marketing concepts, processes, and the importance of understanding consumer behavior and market trends to achieve business success.

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 plays key role in building strong relationship and effective
communication with target customer. The primary duty of management of any company is to
adopt various marketing approaches that contribute significantly towards attain long term
sustainability in the marketplace. With the help of marketing, firms are able to determine
unfulfilled desire and needs of potential buyers and take necessary steps for fulfilling the same. It
define company activities mainly related with advertising, buying, sailing or distributing a
product or service. The main objective of every business entity is to satisfy the diverse needs and
wants of target consumer and for achieving this in an appropriate manner, company uses
marketing tool (Baker and Saren, 2016). The chosen organization for this report is IKEA which
is a leading multinational group that chiefly deals in designing and selling ready to assemble
furniture, home accessories and kitchen appliances. The main purpose of this report is to identify
roles and responsibilities off different marketing function, how marketing function is inter-
related with other functional department of organization. Additionally, it also covers marketing
mix of two different organization and marketing plan of selected association for the coming
period.
TASK 1
P1. Roles and responsibilities of marketing department
Overview of IKEA
In 1943, Sweden was the place where IKEA's first store was launched where company
started selling products and services to consumers. From then this firm has achieved many
awards and made or generated high revenue which has helped them in having world's largest
workforce from all other business firms who are doing business at international level. It has been
located that this organisation mostly does two works and these are: designing and selling of the
products that company made to sell them s that consumers can fulfil their needs and
requirements (Bastable, S.B., 2016). This retailer mostly deals in furniture, home accessories and
kitchen appliances and has awarded as world's largest retailer in furniture sector. Along with this,
business firm also believes in bringing in innovation in their produces that they are offering so
that to grab good position at marketplace of United Kingdom and in other countries as well. In
the year of 2016, revenue which was generated by IKEA was €35.074 billion and carried around

€53.967 billion as value of asset of this organisation. But, if this firm needs to maintain
sustainability strong it is must for this organisation to keep on making modifications with the
help of marketing department of IKEA.
Marketing
The concept of marketing can be defined as an art and science of exploring, satisfying,
developing and delivering high value to satisfy the diverse requirement of a target market or
customer at a profit. According to the American Marketing Association " it refers to the set of
processes, activity and Institution for creating, delivering, communicating and exchanging
offering that creates value for buyers, society and clients at large. Basically, it define the manner
by which company engage or connect themselves with customer so as to sell their goods or
services. It's also help in building strong relationship with customer's overtime. In today's era,
where nothing is constant not even the likes and dislikes of consumer. Therefore it become
essential for association to keep aa constant eye on latest trend or choices of customers so that
they can modify their product or services accordingly. One of the important element of
marketing is related with promotion and its various channels. The main aim of organization is to
earn maximum profit by selling their goods and services and for achieving this they are required
to offer their product to such customer who actually needs it (Desai, 2013). With the help of
marketing function, firm can easily create value for their product and as a result customer gets
instantly attracted towards such goods or services that creates value for their money.
Development of marketing concept: Marketing concept is developed in order to attract
more and more customers in a speculated period of time as it includes strategies and plan of
action which company can follow for better growth at market area. This includes five concept i.e.
production, product, selling, societal and marketing concept as well.
Marketing process: This mainly consist of 5 components which are given below so as to
understand it in a better manner:
 Understanding of market areas along with the customer's needs and wants. Marketing
offerings are taken into consideration as in this consumers look out for products, services
and facilities that are provided by company so as to identify whether these are according
to choices and preferences. In addition to this, marketing myopia is also considered in
this company majorly focus on needs of existing customers so that they cannot loose their

loyalty. Market and exchange is also included in this as both give a perspective of market
area where company is operating its business.
 Design a customer-driven marketing strategy helps company in identifying potential
customers from where they can gain maximum benefits. This assist firm in analyzing
what commodities are needed by them. Further marketing segmentation which aid
company in dividing market into various segments as per customers whereas target
marketing comes after this.
 Construction of integration marketing program that deliver superior value and for this, a
proper plan is being made which includes marketing mix which is a set of tools which is
further used for making strategies. In addition to this, integrated marketing program
which assist company in delivering goods that are required by customers.
 Building up profitable relationship and create customer delight as it helps company in
increasing its sales and profitability in speculated time frame.
On the other hand, it has been examined that marketing department majorly consist with
4Ps and these are given beneath:
 Per current trends and requirements of users that are present in the market plays an
important role in modifying or manufacturing products of a company.
 Buying behaviour of customers may put both positive and negative impact on profit
margins therefore, it is required for firm to set prices of a product in the way where rich,
poor and moderate people can buy easily.
Roles and responsibilities of marketing department
Some of responsibilities of marketing department are given below:
Product: Development of a product is being done in an appropriate manner if marketing
department helps operation department through delivering the information of all the current
trends or perceptions of consumers (Dibb and Simkin, 2013). IKEA manufactures various sort of
products like home fittings, kitchen appliances and many more where this organisation mainly
focuses on furniture based products.
Pricing: Another element which stays connected to marketing department of IKEA
where perspective which has coordinate negative or positive effect over the deals and income
figures of association. It is the duty of the promoting administrator of IKEA is to evaluate the
estimating strategies of their rivals and the purchasing limit of the distinctive portion of

society. This will enhance their understanding fixes such costs which aid the way toward
accomplishing high position in advertise. At introduce, the valuing strategy which is received
by IKEA for their items is reasonable in nature and in the financial plan of clients.
Promotion: Advertisement plays vital role in modern era when a company is looking
forward to deliver information of products and services that are being made by them.
Promotion of goods can be done through many mass media. But, it is required for manager of
IKEA to locate techniques that are being used by their rivals and select the best so that to
gain competitive advantages at marketplace of whole world. With the help of this, firm can
grab attention of consumers in ample number and can expect high rate of return on all the
investments which has been done by them in order to enhance sales of existing or new
products.
P2 Roles and responsibilities of marketing relate to organisational context
In modern world, every single organisation looks forward to have their marketing department
strong as all innovation and commercialisation related to products and services can be brought in
the company properly (Hugos, M.H., 2011). Along with this, marketing section of an
organisation helps in many ways like making strategies in order to give rivalry to competitors or
it may also aid in selecting the best approach of doing promotion of goods and services that are
being offered by them to consumers. With the help of this, company can expect high sales along
with profit at the same time. But, it is mandatory for this department to stay connected with other
sections of affirm in order to develop appropriate strategies and in this context some of
correlation among different departments are given beneath:
Marketing with operating: It is mandatory for IKEA's marketing and operating manager
to have good relation in between them so that all the current trends at market can be understood
really very well and through this modifications can be made among products and services that
company is offering to its consumers. On the other hand, failure in any of these may lead IKEA
to face many sort of losses which may put impact on their reputation at both international and
domestic market.
Marketing with research and development department: Research and development
department of IKEA stays much effective all the time and does investigation and try to improve
their strategies in order to deliver products and services to consumers in an appropriate manner.

Therefore, it is very much required for marketing department to deliver all the information to
manager of R & D section of IKEA which directly helps them in giving competition to rivals.
Marketing with HR department: IKEA comes under one of largest company of United
Kingdom that do business in all over world (Jones, and Rowley, 2011).
). Under IKEA it has been analysed that HR department plays an important role when it
comes to recruiting high end talented employees that may aid firm in hitting targets in short
period of time then it was expected. In context to correlation of HR department and marketing it
has been located that if marketing section is making proper strategy then it is may be possible
that HR department have to develop T & D development program so that to enhance their skills
and knowledge of employees and make them much effective in nature at workplace.
Marketing with finance department: Finance and marketing department should have
proper relation as funds are only being provided by finance department if marketing section will
develop appropriate strategy and to implement it. Manager of finance department passes the
budget of a task in order to attain goals of company in right on time and keeps an eye on all the
excessive expenses that has been created by task and try to make alterations in it so that company
do not face any sort of losses. Strong bonding among manager of both of these department may
aid firm in hitting their desired goals and objectives right on time.
TASK 2
P3 Various organisations apply marketing mix to the marketing planning
Marketing mix can be understood as a tool that plays a vital role when a company looks forward
to enhance its growth rate at domestic or at international business market. Marketing manager is
the person who develops a proper plan in order to enhance both profitability and productivity of
products and services that company is offering. This can be done through many ways and the
moment best sort of strategy is to advertise goods on online websites. Along with this it has been
located that if a business manager of marketing department makes wrong decision it is possible
that firm directly affects profit margins. On the other hand, targeting consumers are also being
set by this department through analysing the needs and wants of consumers that they are looking
for (The Marketing Mix 4P's and 7P's Explained, 2017). In context to this, 7ps are being
considered as some components of marketing mix which has been done in between two firms

and these are IKEA and Walmart which are giving good rivalry to each other and are also helping
United Kingdom through putting positive impact on their economical conditions.
7Ps and comparison of two business firms:
Marketing
Mix
Basis IKEA Walmart
Product Under this,
products and
services that are
being made by
company comes
under.
On the basis of gathered
information, IKEA locates all
the needs and wants of
customers that they have and
then try to manufacture
products according to their
needs in order to improve sales
and profitability both at the
same time. Main aim of
business firm is to improve
profitability and productivity at
the same time through
enhancing experience of
consumers in regard to their
goods.
Walmart does business in most
of countries of this world and
offers consumers all over the
globe with basic daily routine
goods and services that are
being used b people on daily
basis (Berkowit, 2016). Doing
business in different sectors has
helped Walmart in coming to
good position at marketplace in
short period of time.
Price Strategies that
made by
organisations do
comes under this
factor.
IKEA has already made their
objective as to deliver quality
products and services to
consumers through charging
them with minimal rates
(Bastable, 2016). This
Walmart mostly looks into
different aspect in order to build
up pricing strategy so that
customer satisfaction and their
pockets both can be filled in an
appropriate

process has helped IKEA to
giving rivalry to its competitors.
manner. Walmart adopts
appropriate service and offers
arre being giveen by custoki to
consumer prices of products
that are being offered by them.
Place Firm doing
business in many
places.
IKEA's managers and leaders
have understood about today's
human behaviour that they do
not likes to visit stores as it is
time taking process which both
consumers and this company
cannot afford if any sort of
wastage is being done of time.
Hence, company have
introduced their products and
services through online
websites in front of customers
which has helped firm in
grabbing good position at
marketplace of United
Kingdom.
Walmart is doing business in
almost 150 countries and have
thousands of stores in them and
believes in making long term
relationship with consumers
through taking in or considering
direct marketing strategy in
order to enhance sales of
products and services.

Promotion Advertisements of
products and
services.
In digital and modern era, firms
are taking in different online
mass media in use in order to
promote its products and
service some of tools like
television, print media and
online advertisements are being
considered as main one
Walmart mostly try to deal with
consumers when they visit their
stores and deliver them
information of products and
services which are recently
being launched by them. along
with this, it has been analysed
thay company
which can help a firm in
enhancing sales of products and
sevice.
keeps on making changes in
their prices and offers discounts
to consumers so that to sustain
at marketplsce for a longer
period of time.

People Employees and
customer and
their perceptions
in regards to
policies or
services which are
being given by
them comes into
this context.
Improvising satisfaction level
of consumers is the main aim of
IKEA
Wal-Mart is one of famous
orgsnoration that may that is
rapidly helping economical
conditions of countries in which
company is doing business.
Process Sale enhancing
process that are
being developed
by managers.
The offering procedure of IKEA
association situated in indicate
rooms. Under this, buyers
come, see and afterward picked
installment and furniture
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,
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
Stores of
company.
Seepage of shape benefits and
additionally offer substantial
confirmation of the
administrations or item
preformed better. This firm has
extensive number of stores in
everywhere throughout the
world. In the wake of entering
in to the stores of this
association, firm has specific
formats of ways.
In context to Walmart it is seen
through more than that it carries
around 10000 stores which are
in everywhere throughout the
world. Each and each store has
numerous classes of
merchandise, better item
situation and numerous others.
In setting to this, Walmart
association has numerous
workplaces which are spread in
all finished world and enhance
mark.
TASK 3
P4 Basic marketing plan
In modern era, it has been analysed that a marketing plan plays an important role if an
organisation is looking forward to expand its business. Marketing plan is being considered as a
blueprint that helps managers to take decisions that are related to enhancing sales of products and
services that company is offering to its consumers. There are many things that do comes in a
marketing plan and some of them are: advertisements and many more. A Plan in this context can
help a firm in attaining all the goals and objectives in much effective and efficient manner. On