Marketing Essentials: Roles, Mix, and Plan for IKEA Report

This report provides a comprehensive analysis of IKEA's marketing strategies, focusing on the roles and responsibilities of marketing functions within the organization. It delves into how IKEA applies the marketing mix (product, price, place, promotion, people, process, and physical evidence) to its marketing planning process, examining each element in detail. The report also outlines the key roles of marketing in relation to the wider organizational context, including human resources, finance, customer service, and production. Furthermore, the report includes a basic marketing plan for IKEA, demonstrating how the company integrates various marketing activities to achieve its business goals. The analysis covers marketing information management, distribution management, product and service management, pricing, promotion, and selling strategies employed by IKEA to attract customers and maintain a competitive edge in the global market.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing functions...........................................................1
P2 Roles and responsibilities of marketing relate to wider organisational context....................3
TASK 2............................................................................................................................................4
P3 Ways in which IKEA organisation applies the marketing mix to marketing planning
process.........................................................................................................................................4
TASK 3............................................................................................................................................7
P4 Basic marketing plan for IKEA.............................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Marketing refers to developing, delivering and promoting services and products to
businesses and customers. It is an activity, processes and set of institution for developing,
exchanging, communicating offerings which have some value fort partners, consumes, society
and partners at large (Askeland and Wright, 2013). It is a responsibility of manager to conduct
all marketing related activities in an effective manner, this project is based on the IKEA
organisation. It is a multinational group that prepare and sells ready assemble kitchen appliances,
home accessories and furniture. In this given report discuss about the roles and responsibilities
of marketing function for firm. Ways under which IKEA company applies marketing mix to
process of marketing planning in order to attain business goals. Firm develop the marketing plan
for doing all marketing related activates or operations in systematic manner.
TASK 1
P1 Key roles and responsibilities of marketing functions
Marketing is consider as an important activity for business because it helps in exchanging
as well as delivering positive relation which their customers by providing them quality services.
As it is vital for business owner to understand all the function of marketing to execute all the
activities in most effective manner. This will contribute in attaining set goals and objectives in an
appropriate time frame. AS there are some major roles and responsibilities of marketing function
in IKEA which leads in grabbing customers attention towards its products and services. All these
are as follows:
Marketing information management: MIS consider as an important function which
helps in gathering as well as collecting information about market and customers taste as well.
With the help of this function, manager of the marketing department to develop effective report
of entire activities of operations. This will lead in delivering quality products and services in
market place and at the same time also aid in capturing customers attention by fulfilling their
needs (Blacher-Wilson, Mense and Richardson, 2011).
Distribution management: This marketing function is also an important for business
organization which helps in managing all the products and services for attaining desirable results.
In context of IKEA, it is important duty of manager to understand marketing needs in order to

serve their products and services at global level. This will contribute in capturing larger market
share from its rivals by delivering right products to right customers.
Product and service management: It is another important marketing function for firm
because it contribute in managing products and services. As products are tangible in nature so
that it is important duty of manager to manage all the products effectively. For accomplishing
positive brand image, IKEA should deliver quality products to right customers by understating
their needs and wants. As it helps in increasing profitability level of the company.
Pricing: It is an important term which change by the company to its customers for
exchanging specific products and services. As it is important for IKEA to use effective pricing
strategy for maximizing the portability level and at the same time also reduce the any kind of risk
factors (Clow and James, 2013). Along with this, company should set their product price
appropriate in order to grab customers attention towards its quality services.
Promotion: For attaining higher success at market place, this function play vital role
through which firm promote their products and services in market with the aim of enhancing
sales. As a famous company IKEA, they use effective promotional tools to invite larger number
of customers towards its new and innovative products. This will contribute in capturing market
share form its competitive at market place by establishing positive brand image.
Selling: It is important function for company in which customers pay money for
exchanging goods and services in market place. With the help of this, company easily generate
profitability level at market place. In context of IKEA, they serve their grocery items to buyers
with the purpose of attaining productivity level at market.
Financing: Financial fund is important component for every department to execute entire
activities in an effective manner. In this marketing team define requirement of fund to products
quality products and services. Along with this, marketing functions is also vital for firm to
increase profitability level of the company by using effective process. In context of IKEA, for
attaining better success at market place, company should keep proper funds to make quality
products and services.

P2 Roles and responsibilities of marketing relate to wider organisational context
Under this, business is composition of different activities or tasks which aid for
companies in context to achieve set targets and aims in an efficient manner. In an organisation,
there are many functions which need to be taken place properly. It will be helpful in process of
decision making to managers of firm. The base of most of the organisation structure on their
functional areas of firm to developing more division in such functions and also segment
responsibilities as well as roles of staff members. Under this, there are responsibilities and roles
of marketing relate to organisational context mention below:
Human resource management & marketing: In this, there are different department on
the division which are working in company and interrelate with the each other in better manner.
In marketing function, human resource function plays a necessary role. Manager provides
training to employees of marketing so that their core competencies and knowledge will be
enhanced and they can interact with consumers in better manner (Desai, 2013). It will be helpful
in providing competitive advantage of company. In IKEA firm, HR manager should know about
their responsibility and roles effectively.
Finance and marketing- These both functions are related with the each other and for
conducting business operations and activities in significant way. In order to launch any new
service and products, finance department provides funds to IKEA organisation. In addition to
this, it is a responsibility of finance manager to examine every and each aspect of finance ion
proper manner and also make some of the necessary corrections, according to operations and
activities, finance function lead to be allocate funds for launch event by which firm can provide
information of services and goods to consumers.
Customer service & marketing: Productivity and success of business based on efficiency
of leaders and managers. It is necessary for all staff members to understand about their
responsibilities in proper manner. Through this they can work in systematic manner. In addition
to this, there are different divisions which are identify in firm. The customer service is necessary
in firm. In customer service, employees resolve any queries and issues of consumers related to
any product and service. Through this, marketing department can make some required changes in
its goods to satisfy demands of consumers in an effective way.
Production and marketing- Under this, team of marketing gather information or data
from market place regarding its existing services and products. From this they can manage their

manufacturing process systematically. It is a responsibility of production department to produce
goods of better quality and on the basis of demands and preferences of consumers. Marketing
department should make some innovation in existing goods to attract large number of consumers
towards firm (Getnet, Kedir and Yousuf, 2014).
Research and development function & marketing: New innovation and invention both
are main things for each organisations which need to be taken to to an account to increase sales
along with the profit level. In addition to this, invention and renovation make the marketing
functions by which the marketing department able to be perform its work in proper manner.
Before developing any new product, research and development department conduct an
investigation to know about requirements as well as needs of people.
TASK 2
P3 Ways in which IKEA organisation applies the marketing mix to marketing planning process
Main target for each firm to retain at the market place for long period of time. There are
different techniques and tools to get adopt through firm in a proper manner by which firm can
able to achieve aims and objectives in a systematic manner. In addition to this, marketing mix
refers to foundational marketing model which facilitate option tough which IKEA company can
achieve its long term aims and objectives. The marketing mix of IKEA and Walmart.
Basis IKEA
Product IKEA is famous retail company which operate their business at global level. As
they offer their products in wider market. Along with this, IKEA also divides
their products into outdoor furniture, children's product, beds, chairs, clothes
storage, bathroom stage and more products in market. All these will help in
attaining profit at market place (Griffitts, 2016).
Price As a famous retail chains IKEA set their product price affordable so that
customers can easily buy and consume. Along with this company produce low
cost furniture for various purpose with the purpose of attaining better success at
market place.
Place IKEA having excellent place where they serve their products and services to
number of customers. Along with this, IKEA has more than 25 distribution

centres in various countries. In this the products are distribute by suppliers
directly. It helps in reducing the cos of transportation as it helps in increasing the
profitability level at market place.
Promotion IKEA focus on marketing activities in which they use various promotional tools
such as T.V online advertisement, billboards and many more to increase demand
of the products and services. In addition of this, they also launched marketing
advertisement campaign to promote their services ion market place with the
purpose of attaining profitability level form its rivals. This will aid in increasing
public awareness towards its products and services (Jones and Rowley, 2011).
People It is refer to the workers and customers as well. As IKEA employees are skilled
and capable as they implement new and innovative ideas to produce quality
products and services. Along with this, they also understand customers needs
and wants to provide them better satisfaction. This will enhance the profitability
level of the company. In addition of this, company provide training and
development programs to their workers to enhance their performance level at
workplace. By this they effectively execute their business activities with the
purpose of grabbing customers attention.
Process IKEA has effective process with their production process as they easily produce
quality furniture to its customers. As they use new and innovative technologies
within manufacturing process to reduce the overall cost of the company. With
the help of this company may enhance customers base by producing quality
products in market place.
Physical
evidence
IKEA is biggest company as they having more than 350 stores which cover
various countries. As they include attractive outlets which helps in providing
positive shopping experience to its customers for grabbing their attention
towards its products and services. Along with this, they also provide better
parking space to to customers. Currently, the biggest stores are in Sydney and
Montreal. As they enhance the profitability level at market place.

TASK 3
P4 Basic marketing plan for IKEA
Marketing plan consists different things like for an instance mission, business, vision and
objectives of an organisation. It consists regarding budget that require to incur in different
activities of in in an effective manner. The marketing plan is helpful in at the time of doing all
marketing activities or operations in a systematic manner or with in set period of time. In
addition to this, there is marketing plan develop by company for launching its new product so
that it can increase its sales and profit level in better manner. It is helpful in establish its new
products at market place by target large number of consumers. Under this the marketing plan
which is IKEA company made related to develop home products or accessories.
Under this, IKEA company develop an effective marketing plan involves various elements as
well as aspects:
Vision of IKEA: Its vision is to develop each day of like better of people by providing effective
quality of home furnishing and well designed products.
Mission of IKEA: Mission of this business firm is to expand it business in all over the world and
make life of people more comfortable.
Objective of IKEA: Its main objective is to provide broad range of home furnishing products of
better function and design, durability and also excellent quality. It provides growing direction to
employees and employers in better manner (Kennedy and Parsons, 2014). There are some other
objectives of IKEA organisation given below:
 Through launching new product, main aim of company is to increase sales by 10% in 2
year. Under this, firm wants to target large number of people from different cities and countries
by provide them better quality of goods.
STP
Segmentation- IKEA company segment its goods and service on the basis of
demographics, geographical etc.
Targeting- The main target to new product that will be launch by IKEA organisation are
girls, housewives etc. Because they take more interest in home accessories as well as products.
Positioning- The IKEA company wants to make its position better at market place and
also work on achieving the competitive advantage.

Situational IKEA: It is necessary for business in order to examine internal situation of business
by which firm can develop this type of strategies in an effective or better manner. In addition to
this, basic evaluation of IKEA firm can be done by SWOT analysis.
Strengths Weaknesses
 The knowledge of consumers about the
services and products is better.
 An integration of supply chain is better.
 The market presence along with the
brand reputation of company is better at
market place.
 It measure its capabilities by using
metrics given through Key
Performance Indicator that consist
enhance use of raw materials.
 The services and products of IKEA
organisations are cost effective so that
consumers can easily purchase goods
(Ryan, D., 2016).
 The research and development
department of IKEA firm helps in
making products more innovative.
 IKEA company conduct its business
operations in several countries and face
troubles of local market. In addition to
this, because of expansion issues, IKEA
firm got in to corruption.
 It is not able to maintain its standard
and in Asia it has weak position.
Opportunities Threats
 It has better opportunities to expand its
business in to the emerging markets.
 It can make its production in China and
India.
 Adding the premium quality of home
accessories, furniture products and
many others.
 It can make strategic partnership with
 Competition emergence from Asia.
 Enhance raw material costs.
 Reduction in demand because of
enhance income level of customers.
 Financial crisis and also global
economic

some other brands (Swenson, Rhoads
and Whitlark, 2014).
 It can provide the cost leadership
competitive benefit with the help of
using technological innovation.
Marketing mix of IKEA
Product  Range of goods which are sold through
IKEA organisation is vast.
 It has large number of products such as
baby products, bathroom stage,
mattresses, clothes storages, furniture
etc.
 It also attracts its customers by offering
them money back guarantee if they are
not satisfied by the products. This
company is famous among its
customers as they meet all of their
requirement under one roof.
Price  Cost of this company's products are
low.
 Its main focus on better operational
details as well as cost control.
 The company offers huge variety of
products which ultimately makes the
price reasonable. It prefers different
pricing strategies to retain its existing
customers & attract new one.
Place  Distribution network depends on
necessary principles (Urbina, 2014).

 It provide services an products in
international markets.
Promotion  IKEA promote its products with the
help of television, newspapers, print
media, social media and many others.
 This firm also conducts public relation
campaign.
 Promotion is very important for the
organization to make their customer
recognise them. It also increases sales
of the products. On shopping from
website customers also gets gift which
attract them to shop more.
Marketing Budget- IT is helpful for company by which business will able to make its all
activities along with operations better. Manager of IKEA company developed effective
telemarketing budget under which different savings as well as budgets are involved in proper
way.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 55000 12600 14200 20000 16000
Investment 20500 14800 16000 14200
Total 50000 33100 29000 36000 30200

Marketing
expenditures
Advertisement 9600 6700 6200 6000 6400
Sales promotion 2000 2000 4500 3000 8500
Direct marketing 7000 6000 2000 7000 2000
Total 18200 14700 12700 16000 16900
Available balance 31800 18400 16300 20000 13300
CONCLUSION
It has been concluded from the above given report that marketing is a broad concept in
which all various functions are working. Under this, it is necessary to understand concept of
marketing in better manner. Marketing function play a necessary role in business and also able to
increase the operations and activities of firm with in given period of time. Roles and
responsibilities of marketing concerned to broad organisational context has been studied in this
report. Under this given report discussed about comparison among the different organisations
like for an instance IKEA and Walmart.