Marketing Essentials Report: Roles and Functions of Marketing at IKEA

This report provides a comprehensive analysis of marketing essentials, focusing on the application of these principles within IKEA. The introduction highlights the importance of marketing in the current business landscape, emphasizing its role in market competition and information gathering. The report delves into the roles and functions of marketing, including market information, product management, pricing, promotion, selling, MIS, distribution channels, and financing, all within the context of IKEA's retail operations. Furthermore, the report examines the roles and responsibilities of the marketing department in relation to other departments within IKEA, such as human resources, finance, sales, research and development, production, and distribution. The analysis includes a comparison of how different organizations apply the marketing mix to marketing planning and concludes with a basic marketing plan for IKEA. This report is a valuable resource for understanding the practical application of marketing principles in a global retail environment.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Roles and functions of marketing....................................................................................1
P2) Roles and responsibilities of marketing in context of IKEA...........................................5
TASK 2............................................................................................................................................7
P3) Comparing ways in which different organisations apply marketing mix to marketing
planning..................................................................................................................................7
TASK 3..........................................................................................................................................11
P4) Basic marketing plan for IKEA.....................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In the present scenario, marketing plays an essential role in a business organisation. It is
required for an organisation to perform better in the market competition in the most effective and
appropriate way. Its is necessary for a company to gather information about its products and
services from it's targeted market which can be done with help of marketing activities. It is
essential for the company to make a separate department of marketing as it plays a vital role. The
concept of marketing is very wide and it is very important to adapt them in appropriate manner.
This will lead in sustaining in market (Al-Hasan, Thomas and Mansour, 2016). Ikea has been
chosen in this report which is a retail firm that is located in 392 places and is served in
worldwide. Its revenue is around €35.074 billion. In this report, role of marketing and its
function in context to the chosen organisation will be explained. Comparison of marketing mix
with marketing planning will be discussed. Company's marketing plan will also be considered in
this report.
TASK 1
P1) Roles and functions of marketing
Marketing is a base for the company which supports in the production, sales and finance
department. As IKEA is working in the retail sector they are having a huge need of the marketing
activities which can help to them to make a better change in the sales and products variations.
Some of the significant role of the marketing are here;
Market information: Marketing team is having the main role and responsibility to conduct
market researches, and gather market informations which can help to them to make changes in
the products range and in their service providing. Marketing department is having a proper team
to conduct market analysis and gather informations about their customers needs and informations
of their competitive company's activities in their targeted market.
Game changer: Marketing function can play a game changer role for the company because they
are having a key role in the change in the business and performance of the organisation.
Gathered data by the company can be used in creating a differentiation in the products and
services of the IKEA and make a competitive edge for market rivalries. Marketing is a concept
where organisation needs to analyse the scope to make changes in the products and services in
the market area. The core aspect of marketing is to create awareness of company's goods and
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administration that they are offering to their targeted customers. It is one of the tools to
communicate with the people so that they can be able to convey information about company's
products (Anderson and et. al, 2014). Ikea is working in the international market and getting
success at every place where it expands business due to effective use of marketing strategies.
Ikea is adapting effective techniques of marketing to sustain in market for longer span of time.
Along with that, firm is attracting a large number of customers towards its products and services.
Company needs to take in consideration some aspects of marketing so that they can carry out
their operations and functions in the most effective and suitable manner (Babin and Zikmund,
2015).
There are several tactics of marketing used by company so as to promote its products and
services in the market. It is essential for the firm to adapt these promotional techniques so that
more efficient and effective working can be carried out by the firm. Diverse way can be
embraced by organization for advertising of their item. To use marketing plans and strategies
appropriately, it is very necessary for Ikea to understand all the functions of marketing (Beatty
and Samuelson, 2014). Below are some of the major functions and roles of marketing in IKEA-
(Source: Seven marketing function, 2016)
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Seven marketing function

1. Product management- It is essential for the IKEA to focus on their markets from where
they can increase their sales, revenues by improving their marketing activities. It is a
furniture company which provides a ready to use and assembled furnitures to their
customers. So product management is essential by working on the appropriate needs of
the customers. They have to manage their marketing information and data with the ready
products which can help to them to accomplish the needs and demands of the customers
(Al-Hasan, 2015)..
2. Pricing- This is another very important element that has to be taken in consideration.
With the help of marketing, company will be able to know the aspects related to price of
its products. Marketing helps in setting right and affordable price of its items. There are
many strategies of pricing like skimming, premium and penetration. All these are the
tactics that can be adopted by IKEA. The strategy adopted by firm is penetration pricing
where its products and services offered to customers are reasonable and affordable (Clow
and James, 2013). With the help of proper planning, IKEA is cutting down its cost which
is leading to increase the profit share.
3. Promotion- It is a technique through which company can be able to get large number of
prospective growth. This is one of the major elements of marketing. With this aspect,
company can be able to create awareness about its products and services in the market. It
is essential for an organisation to use this technique as it will result in developing in
competitive market with attainment of success (Cobanoglu and et. al, 2011).
4. Selling- With the help of marketing, organisation can be able to increase its sales volume.
It is also helpful in reaching at a large number of people in the international market. The
sales are directly boosted by the marketing function of a company. Hence, it is directly
related to sales department..
5. MIS (Management information system) - It is a software that is used by the organisation
so that they can be able to keep a proper record of each and every aspect of business
activities. It includes required data and information that supports the management in its
smooth and effective working. IKEA is utilizing this framework as they are having
business in numerous nations. They have to receive this system with the goal that they
can exchange their data. By this, firm can get less influenced by the unfriendly variables
which occur inside and outside the association.
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6. Distribution channel- It is essential for an organisation to choose the correct form of
distribution channel. With its help, company is able to provide products and services to
its end users. It is imperative to pick right channel with the goal that more clients can
purchase their products. There are two different channels of marketing which are direct
and indirect method. In guiding the firm to specifically approach the clients to whom
product is offered and indirect path. There are intermediators those assists firm to offer
their items. There are different channels for distribution like retailers, wholesalers,
merchants and others. IKEA marketing fragment is having fundamental goal to fulfil
clients demand by understanding their needs .
7. Financing- Financing is an imperative asset. It underpins all exercises that are there in
commercial centre. Back up plan is required at each phase of business (Cua, Reames and
Chai, 2013). IKEA is having extensive operations. According to its goal they required
more fund. There is separate office in an association for finance management so all
operations can go in smoother way.
P2) Roles and responsibilities of marketing in context of IKEA
Marketing is a subject which is having a huge impact on the all functions of the IKEA,
information collected through the market is beneficial for the company to make change in the
product, price, place and promotions of the products of the IKEA. There are various roles and
responsibilities that have to be played by marketing department in a company. As Ikea is
carrying out its activities in retail sector, there are many different departments which are having
their own roles and responsibilities (Dioko, 2016). This is useful in improving the performance
of company and to attract a large number of people. Below are the roles and responsibilities of
different departments-1. Human resource department- It is essential part of the company which works with
employees to manage their efficiencies to manage a balance in their performance. These
works as per the standardized performance level and as per the needs of the employees it
works with them to enhance their productivity by conducting development program.
Marketing team is also connected with this department to make changes in the
performance as per the needs of the market conditions. For an example marketing has
analysed that company has to improve their sales assistance services, they are not
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working appropriately so the HRD team has to conduct programmes to make some
improvement in the sales team.2. Finance department- The department provides funds to conduct marketing activities in
their targeted markets. As they are dealing in the furnitures so it is essential for them to
analyse the requirements of customers in products size and pricing. Data collected by
marketing activities is highly significant for the product manufacturing so according to
these market information company has to make changes in their products which can help
to the company to make some effective changes in the product range. The management
is dependable to plans that are related to budgets. They records all exchange which are
taking in business. They likewise need to deal with receivable and payables (Green,
2012). So income can be oversee in appropriate way.3. Sales department- It is the duty of the company to provide their products to clients as per
their needs. It is required that all teams of the IKEA to get into coordination so deals can
be made. IKEA is gaining great incomes because they are dealing in an appropriate
manner with the sales of the company.4. Research and development- Each firm needs to do innovative work. In this, advertise
form marketing department about clients and their necessities, R&D team has to work on
the needs of their customers. They gather information from various sources, for example,
essential and auxiliary. This exploration took long time and cost.5. Production- It is a process in which the raw materials are transformed into usable and
finished products (Guffey and Loewy, 2012). Production of products has to be made on
the customers needs which can help to the company to make some effective changes as
per their market needs. Each and every department of company coordinate with each
other so this process can occur in legitimate way. There are diverse assets which can be
use to create merchandise and ventures, and organization need to guarantee that these
assets ought to designated and utilized as a part of legitimate way. With the goal that
great nature of item and be produce in minimum cost.6. Marketing department- This team works for the company to enhance products clients
should reach to its products effectually. They help in making advertising activities of the
items. This team works to analyse the needs and market expectations with them which
can be fulfilled by them. The principle rationale of this office is to satisfy clients needs
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and needs. There are distinctive sort of strategies by which development should be
possible. IKEA is advancing their items through person to person communication
destinations. Since by this they can reach to vast number of clients.7. Distribution- This is another very important aspect of the firm as this is a channel through
which produced goods and services are availed to customers or the end users. Method
that is being used by IKEA is the online basis and it is also having several stores in the
market. This is one of the best technique used by company as because this will lead in
attaining maximum number of people in the market.
8. Customer services- This is one of the most important element and department of
company as it is the reason why firm is surviving in the market. In the present scenario,
customers are also very much educated and rationale as well as they are very well aware
about the products and services. Hence, it becomes more important for company to
develop an appropriate customers service base (Hair, 2015).
All the divisions of firm is very much interlinked with each other. Therefore, it is very
necessary to inform every aspect to all its department. This will also help in attaining goals and
objectives of firm in the most effective and appropriate way. Following are the functions and
roles of marketing department in IKEA- Market research- It is the vital part that is been performed by marketing section in a
company. To sustain and survive in the competitive world, market analysis is very much
required. With the help of marketing, firm will be able to know about the market needs
and wants. It is necessary for IKEA to carry out market research so that they can
introduce new ideas as because customers are the one who need to get satisfied that can
only be done if products and services are provided to them as per their needs (Harris,
Schwartz and Brownell, 2010). Product development- Marketing also helps in producing new products in the
marketplace. Company is able to develop and innovate new products and services as
indicated by client inclinations and tastes. It is a long process in which they have to
analyse the needs and needs of clients by doing research. It ought to be done in a
legitimate way so that exact data can be gathered by the advertisers. Market segment- Marketing toll is very beneficial for company to segregate the market
into different parts so that they can be able to serve clients as per the segments.
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Segmentation is an important element as this is helpful in attaining customer’s attention
in an appropriate way. With its help, firm can target the right people according to
products and services that are availed to the people of society. Marketplace can be
divided into several parts on the basis of demography, geography, behavioural and
psychological factors.
 Communication- Marketing's another major function is to convey information and
awareness about the products and services of IKEA to public so that they can be able to
attract more customers and knowledge about same can be given to them. It is highly
important as this will lead in sustaining and surviving in the market.
TASK 2
P3) Comparing ways in which different organisations apply marketing mix to marketing
planning
Marketing mix are the tools and techniques that are used by company to pursuit the
customers of target market so that they can be able to attain set goals and objectives effectually.
At the time of making several decisions regarding new products and services, it is necessary to
use the guidelines of marketing mix so that company can be able to perform appropriately
(Javier, 2012). Marketing mix comprises of products, place, price and promotion. In
administrations three all the more additional blend has been included. . As IKEA is offering just
items the item blend just contemplated. The correlation of IKEA is finished with B&Q. It is
significant contender of IKEA and they are pitching home enriching things to its clients. Them
two are managing same sort of items (Joshi, 2014). Both of organizations are attempting to
utilize this advertising blend with the goal that they can get edge of market. Following is the
short legitimization of these components-1. Product - Product is the physical element which is offered by firm to its clients. As IKEA
is putting forth Kitchen alliances, lavatory adornments, kitchen modules, lightning and
others. Nature of items are great and huge range of products and offered by company.
Comparison: - IKEA is availing goods that can be used without any more modifications
and changes. Raw material and crude items are provided by B&Q to its clients that need to be
further processed to convert them into consumable products. They both are in same line but
offerings are one of the major aspect that differentiate them from each other in their products.
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2. Price - It is one of the factors that are to be considered by the customers. Price is another
component which has to be considered by the firm. It is an exceptionally fundamental
component. Since firm needs to set their items price as indicated by obtaining energy of
clients. On the off chance that item prices are high client don't willing to pay that much
costs. There are distinctive sort of evaluating techniques . Which firm can embrace so
they can draw in more clients.
Comparison: - Both of these organizations are offering their items in exceptionally
moderate costs. In any case, the distinction is IKEA gives free help to their clients. So they can
know client's needs. Then again B&Q is given distinctive methods, for example, giving rebates
and offers to clients. There are numerous different systems likewise which firm can receive to set
their costs and pull in clients (Kirby, 2012).3. Place - Place is a critical factor at which clients can discover the item. The firm needs to
pick effective and appropriate location at which more clients can visit and offers of the
firm can be improved. IKEA is having a worldwide business as they are having around
330 stores in 38 nations. They likewise give their merchandise through online sites.
similarly they provides rules to their clients with the goal that they can reach to stores in
compelling way. Then again B&Q is additionally having business in numerous nations.
They have 371 stores in various places in entire world. They showcase their items in
racks with the goal that client can undoubtedly review them. Area is imperative in light of
the fact that if firm grow in wrong market piece of the overall industry can be influenced
by this.
Comparison: - Both organizations are offering their items from same sources. They
merchant their items by the means of retailers, on the web and by their restrictive stores. In any
case, their operation mode is diverse, IKEA particular its item by logically and B&Q is making
racks to show its items with the goal that client effortlessly observe and assess the quality (Lane,
2014).4. Promotion - Promotion is extremely vital. At the point when any firm is creating
anything, it is very essential for the company to promote and make advertisement in
market so that firm's products and services can be able to avail to the public . IKEA is
utilizing strategies of displaying the goods of the firm so that customers can see plans of
items. They advance their items through online moreover. Since it is having huge reach
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of clients. IKEA likewise advance through UNICEFF and spare youngsters in this they
bring better life for penniless individuals.
Comparison: - Both of firm are utilizing practically same sort of apparatuses. B&Q is advancing
its item through online networking. Both the company is doing welfare and they advance their
brands through well-being association. They both plan indexes in which clients can overlook the
items and their costs. As both the firms are extraordinary but the fundamental intention of these
firm are to make benefits and development their business.
5. People: This components assumes an indispensable part in limited time blend. It
comprise of labourers and clients wills identity purchasing the items which are offered by
firms. In the event that they are effective in keeping up sound relations with there clients
that it will brings about increment in benefit proportions for firms. There primary point is
to procure those representatives who could give powerful administrations to their
customers which can without much of a stretch fulfil them. Workshop and preparing
projects can be sorted out keeping in mind the end goal to make the representatives
mindful about how administrations can be helpful for firms so as to hold their clients for
long terms at work put. The greater part of the organization have outlined clothing
regulation for there representatives keeping in mind the end goal to look after uniformity.
Comparison: B&Q has low client benefit as it don't help its clients in item choice. The
explanation for this is it has distinctive segments for various items which decreases the
prerequisite of representatives. The organization pays its workers at high rate and furthermore
gives at work preparing to its new representatives. The representatives of the organization are
agreeable, prepared and get aptitude level for playing out the job
6. Process: It is the undertaking which is connected with the useful exercises keeping in
mind the end goal to ensure that products and enterprises are conveyed to clients on time.
The items ought to contain quality so as to keep up their image esteems. In the event that
any association utilizes straightforward process than it will give comfort to clients in
choosing the items as indicated by there needs. With a specific end goal to draw in clients
they are utilizing distinctive bundling styles keeping in mind the end goal to make their
items appealing. IKEA offers chances to individuals to check the fixings which are
utilized as a part of nourishment handling.
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