Marketing Essentials Report: Analysis of IKEA's Marketing Functions

This report provides a comprehensive analysis of IKEA's marketing strategies, focusing on the roles and responsibilities of its marketing function and merchandising. It delves into the application of the marketing mix (4Ps) in planning, examining how IKEA adapts its products, pricing, promotion, and placement to meet customer demands. The report highlights the importance of the marketing information system (MIS), distribution channels, product management, pricing strategies, promotional activities, selling techniques, and financial considerations within IKEA's marketing operations. Furthermore, it explores the relationship between marketing and various functional areas, including finance, production, human resources, purchasing, and sales, emphasizing their interconnectedness in achieving organizational goals. The report concludes with an assessment of the effectiveness of IKEA's promotional activities in achieving its business objectives, including customer satisfaction and market share.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of a marketing function of IKEA,...........................................1
P2 Roles and responsibilities of merchandising in context with organisation.......................4
TASK 2............................................................................................................................................6
P3 Role of marketing mix to planning process......................................................................6
TASK 3..........................................................................................................................................10
P4 Marketing plan................................................................................................................10
CONCLUSION..............................................................................................................................13

INTRODUCTION
Marketing process supports to organisation to enhance their products according to
customers demands and also supports to enhance sales. Traditional marketing approch is based
on the development of the sales by different promotional activities of products but now new
marketing concept is works on the development of the products and services as per the needs and
demands of the market. Different promotional tools can be used in the marketing of the products
and service. This report mainly focus on promotional strategies of IKEA which is a one of main
multinational gathering mainstream for its household furniture, kitchen appliances and also home
adornments, and have their branches crosswise over national limits (Wertime and Fenwick,
2011). so organisation uses it's elements of marketing when they showcasing their goods in
stores along with technical advancement. Rather, then this, it likewise highlight essential part of
7 P'S in achievement of objectives and targets of an enterprise by considering influence of micro
as well as macro environmental elements, which additionally plays an exceptionally famous part.
Apart from this, report will nicely describes important role and duties of marketing segments
regards attaining their specific objectives,goals,and targets. Finally, principle point of assignment
is to break down adequacy of promoting exercises in accomplishment of a firm.
TASK 1
P1 Roles and responsibilities of a marketing function of IKEA,
Marketing: It is procedure through which products can be developed according to the
needs of clients. This is coordination of four components that is called 4P's of marketing as:
 Change in the products
 Appropriate pricing according to the target market
 Promotion of the product by effective promotional tools
 Place to sale products in the targeted market
Many advertising methodologies are embraced by the referred to organization. This is
essential for different organizations to consider such strategies with the goal that they can better
address needs and demands of their clients. It has world acclaimed promotion mix that is useful
for development and improvement of their business. There are distinctive systems that are used
by IKEA as to maintain a strategic development of the products as per the demands of their
1

different targeted market by this the company can enhance their sales of products and develop
better relations with their customers.
Illustration: New products which are developed and sold by IKEA are well as per the demands of
their customers, consumers can easily handle these goods and user friendly is the key factor of
these household items.
For every organisation it is important to showcase their products precisely. It gives help
to them to improve their administrations and to reach to huge number of clients. Diverse way can
be embraced by organization for promoting of their item. There are seven advertising capacities
and its parts and duties are clarified as:-
Marketing Information System (MIS): It is data framework that helps to promoting
choice This is useful a software that is utilized to assemble, store, investigate the information to
utilize information in the organisation to make a proper changes in the work as per the
situational need. MIS serves to collet all revenant data with respect to show so association can
manage on better choice. This is essential for future development and improvement of
organization since it benefits presentation of data to management with the goal that company can
distinguish factors where they can make changes. This gives help to them to reach to many
individuals.
Distribution (Channel administration): This is key part of the company, it is required
IKEA to utilize different tools and tactics of products distribution in their targeted market to
enhance their sales and make a grip in their targeted market. Diverse ways that can be utilized
by them to upgrade their administrations so most extreme fulfilment of their clients can be
accomplished. It assumes imperative part on the grounds that if item is not effectively accessible
to individuals then it can make an adverse impact on the company's sales (Garrigos-Simon,
Lapiedra Alcami and Barbera Ribera, 2012). So it is vital for them to utilize effective channels so
they can make conveyance for their target customers as per the set goals by the administrations
for particular time and place market place. Through advertising capacity, association can
recognize conveyance channels that can be utilized by them to give products to clients.
Product (Service management): It is ultimate piece of administrations that are provide
by organization. Clients always seeks for benefits that are associated with item that has been
purchased by them. This is essential for them to furnish subordinate administrations with item.
At some point, it draws in clients toward the offers of business. Showcasing is utilized by
2

organizations everywhere level with the goal that they can mindful individuals in regards to their
products and ventures. It is one of the key fragment that is utilized to improve commercial center
of association(Ratiu and Avram, 2013).
Pricing: Basically, pricing attracts. One of the major key that influence purchasing power
of customer. It is required for IKEA organization to utilize evaluating procedures with the goal
that they can standardised the cost for every customer in accordance of needs. This is essential
capacity of advertising since it improves number of shopper of association. The business can
make successful estimating of their merchandise by utilizing promoting fundamental since it give
finish data in regards to offers of their competitor in advertise.
Promotion: Many special methods are received by organization to reach to extensive
number of individuals. Promoting is utilized by organization with the goal that they can
distinguish the requirements and needs of client so they can give their administrations as
indicated by their wants. This technique will used when organisation wants to showcasing their
product or service with the goal of informing them to purchase their offers. This assume key part
for development and improvement of association.
Selling: Marketing is utilized to build offering of organization with the goal that they can
reach to huge number of individuals. selling is just all about setting selling techniques in very
adequate manner that customer can easily reach up to their desired product or service. It is
development open door for organization. This is utilized by organizations with the goal that they
can give their administrations to clients and it upgrades deals. The items that are offered by them
can be perceived in showcase by utilizing viable advertising systems. Showcasing capacities can
be utilized by business with the goal that they can recognize future desire from the business so
they can try in such manner (Biggemann, 2012).
Financing: Marketing is utilized by organization so they can recognise future desire of
market. It is utilized by them so they can recognize the ranges where change can be conceivable.
Fund is required at each phase of creation so it is essential for association to settle on successful
choice in such manner. This is basic part to estimating necessities with item so business can
isolate particular sum. Association can gauge the fund necessity by utilizing showcasing basics
with the goal that they can satisfy request of clients and market.
P2 Roles and responsibilities of merchandising in context with organisation.
3

Functional levels of organization have their own importance because they are very
specific in their work allotted to them. Fundamental goal of marketing functional level is
distribution of company's offerings in adequate manner. Requirement of this is for establishment
of connection with logistic department. Corporate house wants more earnings as well as high
reputation in marketplace. Marketing is a very crucial element for every organisation as it aids
them to promote their goods and services at market place. Along with this, it helps businesses to
manage their business operation and run organisational activities effectively. Also, marketing is a
process of exchanging, creating and delivering product and services that make value for society,
customers and many more in the market. In marketing mix includes four elements such as price,
Promotion, place and product and it use for promoting a particular brand or product at domestic
or global level.
4

It is very easy to sell products in open shops if company is operating in domestic market
but it becomes complex when enterprise is operating globally because it is very difficult for them
to monitor those shops (LEHTINEN and MÄKINEN, 2012). It is helpful in matching demands
with supply. Success of corporation depends upon healthy interaction between finance and its
additional market division. For accomplishment of task in best way funds are like bloods for
them. Funds maintain regular functioning of association. With adequate support from finance
team, marketing personnel can expand their corporate house's market share and reputation in
competitive world. Along with this they will be able to borrow loans from other financial
institutions for their business expansion and quality of goods.
More than one way of developing connection between these two functional areas can be
examined. If financial department is unable in arranging funds for marketing functions then
marketing personnels wont be able to conduct their activities properly. To perform entire
functions of enterprise fund is as needed as blood in the body (Lipsman and et .al., 2012). To
improvise efficiency of marketing department, performance of financial function should be
enhanced that will consequently increase task efficiency.
Taste and consumer preferences changes time to time. Proper decision on investment in
manufacturing method increase profitability and overall outcomes. . Manager of IKEA can run
market research; as it provides information about needs and wants of customers that will drive
assistance to them. As a consequence, company can improvise their entire profitability.
Company should synchronise their activities with changes that are occurring in external
climate. It will lead them to attain higher position than their competitors in high rate of
competition. Manager can upgrade his methodologies and tools to increase efficiency of
working. Launch of new products and services can only be possible by great functioning of R&D
department in field of needs and wants of consumers (Maghaireh, 2016). with the help of this
activity they can expand their goodwill in mind of target customers.
Relationship amongst marketing and production function: Manufacturing operations
widely depends upon proper marketing activities as it is provider of information regarding no of
productions according to consumer demands. It will bring quality to company's products and be
easily maintained also. With knowledge of consumer wants marketing department is able to find
out proper attributes of product and no of productions (Batt, 2013).
5

Relationship between marketing and human resource function: It is as necessary as
other functions of corporation because human resource department is mandatory for smooth
functioning of association that is why it is called as fundamental function of every organization.
As they placed candidates with best skills and virtue which is required for designation for which
they was hired in marketing division. Connection amongst human resources division and
marketing functions is not directly associated with outsiders or consumers but they affects client
criteria and other stake holder's interest into company. Working of marketing team will be affect
if hired executives are not having required skills with desired level. Positioning of product into
market relies on understanding of opportunities in marketplace to acquire potential customers.
Relationship between marketing and purchase function: Marketing function works as
source provider for material purchase not only for doing manufacturing operations but also
reaching on demands of customers by making available finished item. It is mandatory that to
provide material as per requirements and this can be possible by appropriate supply chain
(Desai, 2013). It helps in regular manufacturing that will lead in continuous supply of offering
when demand is high and profit can be increases.
Relationship between marketing and sales function: Sales function is a sub part of
marketing operation. People think that both activities are same as they are not aware about the
fact that marketing is much wider than selling and it includes selling in it. For an idea, selling is
associated to sale products to people means once product is sold and price received selling
operation is done. On the other hand, marketing is a broad concept. There main focus area is to
determine needs and wants of target people; hence, they can satisfy them within time when
demand is raised because once demand is fulfilled by competitor is will be a weakness of
company that they are not able in matching client demand. Division of marketing gives
information to sales part; therefore, they will be able to sold their offerings accordingly. They
can employ numerous type of tools and techniques to attracts consumers towards company; for
example advertisement. As an upshot, they can raise their lucre and goodwill at mart.
Relationship of marketing function with Research and Development Unit: Activities of
marketing depends on R&D functions because it gives full view from idea of new product to post
delivery task that decides marketing actions which its personnels has to take. Research &
Development unit states about whether market is favourable or unfavourable.
6

Relationship amongst marketing and Procurement: Sometimes company faces shortage
of raw material and lower level unit members that generates lack of product availability and
enterprise has to switch nearest available options that is acceptable by its costumers and to fulfil
these objectives marketing department has to find out that what will be best suitable options that
can be replaced by current offerings.
Therefore, it has been illustrated as, relationship amongst entire operational levels is
requisite to win craved quarry and goals in an brilliant way (Desselle, Zgarrick and Alston,
2016). It is very clear that If any of the department is not working their activities inadequate
pattern then, it will affect income on higher rate. Overall growth and position of organization
relies upon interrelated functions of each and every department of corporation that will bring
quality in working styles and greater level of skills and efficiency to its employees as well as
employers.
TASK 2
P3 Role of marketing mix to planning process.
As these are two primary organizations in retail market of United kingdom,they sue their
own particular extraordinary strategies to contend and increase most extreme upper hand in long
haul (Chan, He and Wang, 2012). IKEA is a furniture firm, on other hand, Tesco is non
producing retail venture of United Kingdom. They both have diverse component like item, put,
value, advancement, individuals, process and physical confirmation as followings.
Marketing mix IKEA Tesco
Product This Organisation has colossal
assortment of item like lavatory
stockpiling, work areas, reflect,
seats, garments stockpiling,
couch, easy chair, kitchen
cupboards, little stockpiling,
tables, beds, sleeping cushions
and floor coverings. The
organization continues changing
its item includes as indicated by
This enterprise gives all item
identified with basic need and family
units in United Kingdom. For
instance, sustenance, garments,
hardware, money related
administrations and different
classifications. It keeps nearby and
universal request to give redid
products to customers as various
sorts of foods. So the firm offers an
7

shopper requests with the goal
that it can expand deals in long
haul. Everything outlines of
furniture things is crisp and
separated fro different brands in
industry. ultimate key to earn and
brand loyalty.
immense scope of items to cover
most extreme piece of market
(Lehtinen, 2011).
Place IKEA utilizes numerous
dissemination channels to
interface most extreme clients
among which diversifying to
disperse its item in many place
like center east, Europe and Asia
pacific. It has 300 stores in 38
countries in retail showcase. It
tries to grow its business and
make its item accessible for
buyers. Its store network
administration is compelling
which helps in showing signs of
improvement and simple
accessibility of merchandise to
open.
It has headquarter in England and
outlets everywhere throughout the
world contending in various nations.
Fundamentally two sorts of
dissemination channels are utilized
as on the web and disconnected. As
individuals are utilizing on the web
strategies at most extreme, so it is
growing its business through this
channel. Disconnected spots of this
organization are Tesco additional,
Tesco metro, Tesco general store
and numerous other. Place should be
defined to It offers customers their
products at discounted rates and
rebates serve.
Price As IKEA is an entrenched brand
in United Kingdom, it doesn't
slice its cost however tries to
enhance nature of item with the
goal that client can be fulfilled
and sees it worth the cash. Some
of its item are accessible on bring
It keeps up low cost with normal
amount of merchandise so typical
class of society can purchase its item
or administrations. It utilizes
economies of scale to keep adjust
amongst cost and nature of things. It
receives evaluating approach as
8

down cost in contrast with
different brands like Tesco
(Laczniak and Murphy, 2012).
"each and every tallies" to make its
all item feasible for most extreme
individuals of society.
Promotion IKEA utilizes numerous limited
time exercises and plans to boost
deals in long haul. For instance,
it has directed a crusade which
was identified with kitchen called
"Be upbeat inside".Its claim logo
is gigantic in itself to enhance
item advancement. There are
different techniques like online
promotions, TV and
announcements. For rooting the
business in market it is
necessary.
The promotional activities are
conducted by managers of TESCO at
low cost. It offers customers their
products at discounted rates and
rebates. It focuses on simple
openness of place and stores. Its
instalments process are anything but
difficult to hold clients in long haul.
It gives free conveyance of products
through online stores of Tesco. It
offers club cards administrations to
give rebates.
People It offers significance to
individuals identified with
organization like clients, workers
and other provider as they
assume key part in picking up
destinations of benefit expansion.
It concentrates on consumer
loyalty through giving best
quality items. On other hand, it
tries to keep up a solid air at
working environment for its
specialists so they can put their
Tesco concentrates on giving best
help to its clients at stores with the
goal that they can feel associated and
esteemed by organization. It has
astounding deals associates who
helps in building a superior picture
of firm in sight of clients. It
embraces some real projects like
collogues benefit card and spare as
your acquire to pull in greatest
number of clients and increase upper
hand through these procedures
9