Marketing Essentials: IKEA's Marketing Function and Strategies Report

This report offers a comprehensive analysis of IKEA's marketing essentials, delving into the roles and responsibilities of its marketing function, its relationship with other organizational departments, and its strategies within the marketing environment. The report examines the marketing mix, including the 7Ps, and evaluates the tactics employed by IKEA to achieve its business objectives. Furthermore, it presents a detailed marketing plan for IKEA, designed with the 7Ps framework, and critically evaluates the key elements of the marketing function. The analysis covers various aspects, including product, selling, pricing, promotion, financing, distribution, and marketing information systems, as well as the interrelation between marketing and other functional units like R&D, customer service, HR, finance, sales, production, administration, and distribution. The report highlights the importance of these interrelationships in maintaining a strong market position and achieving competitive advantages. Finally, it provides a critical evaluation of the core marketing functions, including tactics, planning, research, and strategy, to offer a holistic understanding of IKEA's marketing approach.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function..................................................................1
M1. Duties of marketing with respect to marketing environment..............................................3
P2 Relation of roles and responsibilities with wider context of organisation.............................3
M2 Significance of inter-relationship between marketing and other functional unit.................5
D1 Critically evaluate the key element of marketing function ..................................................5
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix applied by different companies.............................................6
M3 Evaluate different tactics chosen by IKEA to achieve business objective...........................9
TASK 3............................................................................................................................................9
P4 Marketing plan for IKEA.......................................................................................................9
M4 Produce detailed marketing plan for IKEA........................................................................12
D2 Design marketing plan with the use of 7Ps.........................................................................12
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Marketing is identifying as an effective process of interesting potential clients and
customers in business services and products. It is important and essential tool which is beneficial
for the company to attract large number of customers in a systematic manner (Al-Ekam and et.
al., 2012). According to American Marketing association, marketing is referring as a best activity
and process of developing delivering, communicating and serving that have value for partners,
clients and customers. Marketing is significant functions which includes different components
such as advertisement, public relation, sales promotions etc. all these are valuable for the firm to
introduce their new services and products in marketplace. In each and every organisation,
marketing assist in exchange of goods, it supports in raising the standard of living of the
community and many other. In this report, selected company is IKEA, it is a retail industry
which deals is ready-to-assemble furniture, homeware and many other. There are different
elements which are covered in this projects such as role of marketing functions, interrelation
between organisational departments and marketing. Along with them 7P's of marketing mix is
also determined in this project which is essential for them to innovate their services and products
to the clients. At last, marketing plan is also identifying as a part of this report.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing functions is identifying as a role to recognise and source potentially successful
goods and services for the marketplace and thus advertise them by distinguishing them from
same products. There are different functions which are connected with the tool of marketing
including sales support system, development of product, marketing research, human resource
management, management of strategy, distribution system and so on (Baker and Magnini, 2016).
These are play vital role in achieving long term growth and success of company internationally.
In IKEA, there are various roles and responsibility of marketing functions which are explained
under this:
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Illustration 1: Marketing Functions
(Source: Seven Marketing Functions, 2018)
Product: It is necessary and beneficial part for each and every organisation because with
the help of these they can easily increase their sales. IKEA produce different products including
outdoor furniture, eating, children's products, desks, bathroom stage, chairs, cooking, and many
other appliances. In this role of the marketing function is to provide entire detail about business
products and services to the customers.
Selling: It is considering another important and beneficial element which play vital role
for providing goods and services to the end user. It is essential for the company to maximise their
revenues and turnover in limited time period, beside this functions of marketing play important
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role by applying different kind of promotional mix considering sales promotions, advertisement,
public relation and many other (Campbell and Martin, 2015).
Pricing: IKEA competes with different local supermarket as well as global retain chain.
Low price of the business products constitutes its concept, vision and idea. Company makes low
cost readymade furniture for offices and households. It is good for the enterprise to maintain
strong relation in marketplace as well as customer also. Thus, marketing functions in the
business has more necessary for the success and development of organisation.
Promotion: In this IKEA emphasis on different activities and functions of marketing
(Functions of marketing, 2018.). For this purpose, company uses various tools of promotion like
online ads, print, TV, Billboards etc. All these are highly essential for the company to introduced
their new and unique products at marketplace. It is possible with the help of marketing functions
because without this, they cannot gain more attention to the clients.
Financing: It is another important role of marketing manager is to find out optimum
resources of finance where they collect accurate amount of fund for the activities of company. It
supports the enterprise in accomplishing the objectives of developing IKEA together 2020. Main
purpose of this function is to render relevant, timely, accurate, understandable and comparable
financial data. Therefore, it is necessary for the business to do their all activities in proper
manner (Dibb and Simkin, 2013).
Distribution: The products of the company are shipped from provider to distribution
centers, where they are stored in racking, unloaded and them re-loaded onto road transport
vehicles when served by stores. Distribution of the company products are divided into three parts
such as convenient shopping, a day out the whole family, communication and interior design.
Thus, it is important functions of marketing which support company to improve their position at
global level.
Marketing information system: It is useful system which is applied by the IKEA in
order to identify basic needs and preferences of audience. This system provides best opportunity
to the manager regarding collecting of all information in sequential manner. Role of this function
is to take an appropriate decision which facilitates company to gain competitive benefits in
market.
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M1. Duties of marketing with respect to marketing environment
In respect to marketing environment, tools of the marketing play vital role for
achievement of long term objectives and goals in limited time period. There are various
functions of marketing in the context of environment which are shown as below:
Market strategies: In this marketing manager play vital role for planning of effective
strategy. It supports them to attract various number of customers in easily (Draelos, 2010).
Marketing research: It is the part of marketing functions which assist manager to do
effective research program. This functions assist them to find out basic requirement of customers
about IKEA products.
Monitoring marketing environment: Under this, company manger is responsible for
controlling the issues with are arise in the environment. It also assists them to increase sales and
revenue of the business in certain period.
Market segmentation: Marketing function also support the company to divide
marketplace as per the needs and wants of customers. Thus, it helps in the attainment of long
term objectives.
P2 Relation of roles and responsibilities with wider context of organisation
Marketing is essential and beneficial tool for the all departments who are working in the
IKEA. It supports them to accomplish their predetermined and set objectives in limited period. In
the business different departments are work with the assist of marketing. There are main
functions with an organisation which are determined as below:
Research and development: In IKEA, R&D department play critical role for analysis
needs and wants of customer by doing proper research program (Eslinger, 2014). It supports the
business to attract wide range of customers as well as capture large number of market share.
Along with them marketing manager play significant role for using various tools and techniques
of marketing. Hence, marketing and R&D division are important for the success of business.
Thus, it interprets both are interrelated with each other.
Customer services: It is the role of manager to provide accurate service to their potential
and target clients in an effective manner. IKEA provide different services to their clients
including: Home delivery, picking with delivery, assembly, Kitchen/Bathroom installation, Old
Kitchen removing facility, Removal and return of mattresses, Sewing, payment, return policy,
IKEA restaurant/cafe, IKEA exit bistro, Children's and many other services. All these are
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possible with the use of various marketing tools considering promotional mix, communication
channels and so on.
Human resource: In the IKEA, role of HR manager is to hire knowledgeable person in
the vacant post. After this, they provide various benefits to the employees such as effective
learning, training, compensation, reward management, development, employee of the month,
rising star and many other. Beside this marketing manager render all information to the HR
manager regarding workers background, experience and many other. Thus, bother determines
interrelated for the growth of company at international level (Hsu, 2011).
Finance: It is another department in IKEA which has various responsibility for arranging
accurate amount of fund. It supports the company to do their whole functions and activities
within predetermined period of time. In this marketing role is to find out best source of finance.
Finance and marketing both are connected with the motto to fain competitive advantages easily.
Sales: IKEA is a multinational company which deals is ready made furniture, in this they
need to sales their products to the customers who are interested for buying it. On the other hand,
marketing play vital role for giving whole information about furniture quality, feature, price to
the sales department. Thus, it proofs it sales and marketing are important part for the company to
make their strong position at market.
Production: In this role of production manager is to make a well-design furniture as well
as sales to the end user. In this role of the manager is to make quality products which assist them
to increase their sales and revenues. Beside this, marketing manager play critical role for
rendering entire information about customer taste, preferences, income level to the production
manager. So that they are understood regarding this further make a better quality in furniture for
office as well as house also (Lancaster and Massingham, 2010).
Administration: All success and growth of the company is completely depending of
administration department. In this they have various role for planning an effective policy and
strategy which assist them to make a long-lasting relation in global and international
marketplace. Management level of the IKEA use different kind of marketing tools which
benefited to them to maximise their revenues and sales in an effective and efficient manner.
Distribution: IKEA has various departments beside this distribution division has various
responsibility to provide quality in readymade furniture to the customers at reasonable price.
Thus, it assists to gain maximum amount of capital and increase their market share within
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predetermined time of period. Under this, marketing manager find out best places where they
produce their goods to the customers. Thus, marketing and distribution are interrelating with
each other for the success and development of company globally (Lane, 2014).
M2 Significance of inter-relationship between marketing and other functional unit
Interrelationship between functional unit and marketing support the IKEA to keep their
strong market position for long duration. There is different importance of better relation between
marketing and organisational department which are determined as below:
 It helps the business to maximise their profitability and productivity level.
 Support to capture minimum number of market share.
 It helps the company to reduce conflict situation which are arise in the enterprise.
 Strong relation support in gaining competitive advantages within predetermined period.
D1 Critically evaluate the key element of marketing function
According to the Malhotra, Birks and Wills, 2013, Different types of marketing functions
are benefited to the company to attract large number of clients and maintain effective position in
market. There are four core functions of marketing which are described as below:
Tactics: This functions help the manager to apply advanced technology and innovation in
their business operations. It is useful aspects for the enterprise to increase customer base in the
organisation.
Planning: Another and main function of marketing is planning which support the IKEA
to plan an effective policy for the accomplishment of long term goals and objectives in limited
time period.
Research: In each and every business, research plays vital role for analysing needs and
demands of customers about furniture quality, price, size and many other (Martin, Campbell and
Harmsen, 2014).
Strategy: It is a core marketing function which is used by the all company to achieve
future goals and objectives. In this company set an appropriate pricing strategy which attract
various number of customer.
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TASK 2
P3 Comparison of marketing mix applied by different companies
Marketing mix is useful element because with the use of this all businesses are easily
informing entire data regarding new services and products to large number of clients. This
component has seven aspects including price, place, promotion, physical evidence, people,
process and products (Marketing Mix. 2018). All these are considering as a vital part for the
business growth and success.
Marketing Mix of ScS and IKEA, both are related with the same industry and apply 7P's
of marketing which are shown as below:
Marketing Mix IKEA ScS
Product Products of the IKEA is
divided into different parts
such as outdoor furniture,
desks, chairs, clothes storage,
cooking, bathroom stage, baby
products, decoration, safety
products, mirrors, mattresses
and beds. Apart from this
company also keeps kitchen
appliances and cabinets, small
storage, lighting, furniture,
Swedish food and many other.
Products of the ScS is
classified into different types
of furniture like file cabinets,
bookshelves, desk, office
decors, sofa, custom installed
office solutions, chair mats and
accessories. All these are
important part for the
development and growth of
company.
Price Company provide their
products at low price that
assist them to attract large
number of customers in an
effective manner. It is essential
for them to maximise their
sales and revenues in limited
time duration. Price of the
Product of the price are
divided into different strategy
such as market penetration,
market skimming and neutral.
All these are important and
beneficial for the business to
increase customer base in the
organisation (Moons and et.
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IKEA products are divided
into its size and quantity. Thus
it benefited to them to
maintain strong position at
marketplace.
al., 2010).
Place Products of the IKEA is
available at different places
which show its strong and
better position in marketplace
(Perreault, 2010). They have
maximum volumes on flat
packages and manufacturing
side for example; it is essential
and valuable for maximising
value to weight ratio.
Distribution centres of the
company is approximately 25+
which is operates in more than
fifty nations.
Products and services of the
company is available in
different location which
support them to maximise their
position at international as well
as global level effectively and
efficiently. In this company
use different distribution
strategy including intensive,
exclusive, selective and
franchising.
Promotion IKEA use different kind of
promotional channel for
introduce their services and
products at various places. In
this business apply TV, online
ads, print, billboards etc. All
these are better for the
company to achieve long term
objectives and goals in limited
period of time.
There are different number of
promotional tools which are
followed by the ScS including
public relation, advertisement,
sales promotions, public
relation and many other
(Wieser, 2012). In this they
advertise their products by
using communication approach
like radio commercials,
television, print media and
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many other.
People IKEA provides utmost
significance to the large
number of persons including
employees and customers.
Workers in the organisation
believes in the innovative idea
which is essential for them to
maintain better relation with
them. In this enterprise provide
different training to their
employees then they easily
accomplish long term goals
and targets.
In the company different
employees are work, they are
needed accurate training which
assist them to increase their
knowledge and skills on
particular level. Thus, it is
important for the business to
increase their revenues and
sales effectively (Baker and
Magnini, 2016).
Process In place, business entity has
some process, it has
approximately 44 unites of
production which is located
across 10+ nations. Company
creates its own wood by
having sawmills and supply
higher quality in its furniture.
Company has effective
inventory management tool
and supply chain which assist
them to maximise their sales.
Further the finished goods are
transport in pieces to be
collected by clients which save
cost (Eslinger, 2014).
Company use an effective and
simple process which assist
them to attract different
number of audience for the
achievement of long term
growth and development.
Further, it supports to
maximise their turnover and
sales in certain time period.
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Physical Evidence Physical evidence of the
company is its more store
layouts which give maximum
shopping experience. Also, it
renders maximum space of
parking as different stores
which are located outside of
the nations in large place.
It is more attractive part which
assist in the maximisation of
sales and turnover. Further, it
is useful for the business to
maintain long-lasting relation
with customers in future time
period.
M3 Evaluate different tactics chosen by IKEA to achieve business objective
IKEA use different kind of tools and tactics which benefited for the company to increase
their goodwill and reputation at global marketplace. Useful and beneficial techniques is
Marketing mix which support the enterprise to introduce their new services and products in
marketplace. Thus, it is valuable and useful for the organisation to accomplish their
predetermined objectives and goals in limited time period (Malhotra, Birks and Wills, 2013).
Further, it assists to gain competitive advantages and capture large number of market share
systematic manner. It is also important for the company to maintain strong position
internationally. It is also beneficial and important for the organisation to develop an innovative
products and services which aid them to seizure various number of share in market.
TASK 3
P4 Marketing plan for IKEA
Marketing plan is known as a business document outlining the marketing tactics and
strategy. It is most essential and valuable part for the all organisation because with the help of
this document they easily achieve long term objectives within predetermined time period. This
plan is developing by the business manager including different aspects such as overview,
mission, objectives, vision, SWOT Analysis, STP, Marketing budget and other needed
information. All these are considering as an important part for the development and success of
company.
Overview of IKEA: It is a retail and privately held organisation which was established in
1943 by Ingvar Kamprad at Leiden, Netherlands. They mainly deal in homeware and ready-to-
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