Marketing Essentials: IKEA Report - Roles, Mix and Plan

This report provides a detailed analysis of IKEA's marketing practices, focusing on key roles and responsibilities within the marketing function and their relationship to the broader organizational context. It examines how IKEA applies the marketing mix to its planning and evaluates the effectiveness of its marketing strategies. The report covers various marketing concepts, including production, product, selling, marketing, and societal concepts, as well as the functions of a marketing department, such as gathering market information, planning, customer support, promotional activities, and market research. Furthermore, the report highlights how the marketing department interacts with other departments like finance, human resources, sales, research and development, production, and customer services to achieve overall business objectives. The report concludes with an overview of IKEA's global operations, its diverse culture, and its approach to marketing in a dynamic business environment.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
P1. The key roles and responsibilities of the marketing function..........................................1
P2. How roles and responsibilities of marketing relate to the wider organisational context 6
TASK 2............................................................................................................................................8
P3.The ways in which different organisations apply the marketing mix to the marketing
planning..................................................................................................................................8
TASK 3..........................................................................................................................................10
P4. A marketing plan and new strategies.............................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
“ A brand is no longer what we tell the consumer it is. It is what consumer tell each other
it is.” Marketing is very important concept in business. It is way by which company bring
knowledge and aware consumers about their different products and services. Promotion is very
necessary for every company. For this firm need to make plans and policies so that marketing
activity can be conducted in proper manner. Marketing is a art by which enterprise can influence
consumers to buy their products.
The company which taken into consideration for this particular product is IKEA. IKEA is
world leading brand for furniture (Dibb and Simkin, 2013). It is UK based company. The brand
is multinational group. The company dealing with furniture, kitchen appliances and home
accessories. Vision of firm is create better everyday life for people. Mission of firm is to offer
wide range of furniture items. The firms planning to expand their business in other countries
also.
In this report key roles and responsibility of marketing function has been discuss. How
these roles and responsibility is related to organisation. The different marketing ways to apply
marketing mix and marketing plan has been given in this assignment. Marketing plan has been
evaluated in this project.
TASK 1
P1. The key roles and responsibilities of the marketing function
Marketing is way and procedure which firm can communicate with their customer. They
also can generate the awareness about products and services by which consumer get influence
and purchase products. Marketing is ways to promote product so that sales can be improved.
Basically marketing tends to make people awareness to buy products. In context to company
IKEA is multinational company. The firm is engaged in selling in selling furniture, kitchen
appliances and home accessories (Wirtz, 2012). The firm is planning to expand their market in
other countries also. This firm first open their outlet in Almhult smaland. By this enterprise gain
success very rapidly. Now business unit is having business in many other countries.
Marketing is function by interest can be generate in customers about firm's product.
There are different kind of activities are involved in marketing such as researching, promotion,
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selling, distribution of goods and services. There are four elements which need to be considered
to develop feasible marketing plan.
 Product
 Place
 Price
 Promotional
The basic function of marketing is to attract more and more customers. This marketing
activities also help to retain customers. This can bring satisfaction among customers. For this
company develop marketing plan. By this plan all activities can be conducted in right direction.
This plan took many years to reach its objectives. There are certain marketing concepts are there
which are given below (Pike, 2015).
 Production concept: In this company concentrate on producing more products. The main
motive of this concept is to easily available the product to its final customers. This is used
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Source 1: Seven marketing functions, 2017

by firm when they are at initial stage of business. Profits margins are low in this concept
so firm needs match demand of products in market.
 Product concept: In this concept the changes are made in in products. Firm understand
consumers needs and wants. According to that product can be made in more effective
manner (Lamb, Hair and McDaniel, 2011). Firm change its product and add value in that.
 Selling concept: In this concept firm main motive to sell their products in any cost.
Enterprise put large efforts on its promotion activities. So that they influence customers
to but products.
 Marketing concept: In today's business this concept become more important. In this firm
starting understanding customers needs and wants. According to this concept customer
are king of market. Earlier product are produce according firm but know a days products
are produce according to customers. Goods are produce in high qualities and provided in
reasonable cost. By this concept business unit can achieve it goals.
 Societal concept: In this firm not only understand wants and needs. But the product are
produce according to needs of society. In this enterprise is focusing on human life aspect.
Business unit not only satisfied their customers but also their stake holders which bring
over all growth in company.
All these functions are used by IKEA. They always try to utilise their resources in
effective manner. IKEA is leading brand of providing furniture and other home accessories.
Company established in 1943. they are having global operation in around 48 countries across the
world. In initial stage firm started from domestic market. When they get success in their own
market after that they started expanding in other countries also. There are 163,600 workers are
working with IKEA across world. They are recruiting large number of employees which is
generating employment opportunities in society (Berkowitz, 2016). Firm is having around 392
stores in over world. Enterprise also having their official website by which they are doing trade
online. Firm is focus on ownership structure by which employees of enterprise can easily share
their views and ideas. This encourage creativity of workers. The another structure is matrix
structure in this conversation between departments can be easy. By this several ideas can be
generated so that firm get growth.
Culture of IKEA is very very diversified in nature. The employees are having
enthusiasm, integration and will power. In Sweden no discrimination is taking place. All the
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practices are conducting in fair manner. Marketing play certain function which support all
department of IKEA. It is very crucial for success of company. This can provide intelligence to
firm. This can used by managers. Following are roles of marketing department.
 Gathering market information: Marketing department gather information from
market by which they take important decision regarding future trend and situations.
 Marketing planning: This department help to develop marketing plan. This plan
provide particular direction to employees and company so that goals can be
achieved.
 Customer support and services: Marketing department understand the needs and
wants of consumers (Clow and James, 2013). This can build strong relation
between firm and customers. If product are design according consumers needs this
can boost the satisfaction of consumers.
 Promotional activities: Marketing department ensure that consumer get aware about
products and services provided by firm. They conduct lot of activities by which
product can reach to its final customers.
 Market research and analysis: Marketing department is responsible to do marketing
research in this trends can be analysed. This deviations can be identify by which
firm can bring changes in their organisation.
 Increasing sales and supporting: This department gives knowledge to sales
department about the best location and target customers. So that potential customers
can be found out.
 Communication internal and externally: This department have responsibility to give
information to other staff members about the changes that are taking place in an
organisation (Kongstvedt, 2012).
There are different kind of activities which are taking place in an organisation. Marketing
have its certain role which are perform by it in IKEA.
 Marketing information system management: Marketing department collect data by doing
research by this they come to know about needs and wants of consumers. It also helps to
identify the strengths and capability of firm to fulfil customers requirements.
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 Distribution channels: It need to build relation with other various channels. Firm need to
ensure that all intermediaries are satisfied. Manager need to ensure that strong relation
should be maintain with suppliers, customers, whole sellers and retailers.
 Product management: This function help to identify various trends which are running in
market. By the help of this changes can be made in products. Marketing department
maintain the brand image at market place.
 Pricing: Marketing department take decision regarding the prices of products. After
doing research and development firm know about their competitor pricing and according
to that prices need to decided (Jones and Rowley, 2011).
 Promotion and selling: This the primary work which is done by marketing department.
This very crucial part of IKEA. By promotion of products can be done. This bring
standard in society.
 Financing: Financing is very important in every organisation. It is required to fulfil all
activities conducting in business unit. It helps to forecast of demand and supply of
product in an organisation. This factor help enterprise to prepare for certain situation so
that future consequences can be control in effective manner.
These are roles and responsibilities of marketing function of IKEA. It make sure that all
objectives need to achieve effectively. In today's dynamic world marketing department need to
forecast the future demand of products (Forshier, 2012).
P2. How roles and responsibilities of marketing relate to the wider organisational context
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In organisation many functional departments are there. This department is having large
contribution in company success. IKEA is furniture manufacturing company there are many
various kind of department are there. It is very important that all functions are equally manage
and control so that objectives can be effectively achieved. Each department need to be properly
monitor. They have different roles and responsibilities respective to their work. Following are
different department which are as follow (West, 2012).
 Finance: There are staff those who are dealing with issues regrading the finance. These
issues are solved by experts those who are having knowledge related to respective field.
This department is having responsibility to develop resources regarding monetary terms.
They have different activities need to be taken into consideration like preparing budget,
investments, keeping records and other activities take place in an organisation. In context
to IKEA they are preparing budget for selling products, distribution, production and
promotion of goods and services (Papasolomou and Melanthiou, 2012).
 Human resources: Next important department is Human Resources. This department play
vital role in firm. No company can relay without their human resources. Without them
not activity can be taken place in proper manner. IKEA human resources department
make sure that they recruit right person for right position. They make sure that all
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Source 2: Different functional departments, 2016

employees are working in proper manner. By this right person get work according to their
qualification, skills, knowledge and abilities.
 Sales: The main objective of this department is to sell product to its final consumers.
They use different techniques so that company's product can be sold to its final customers
(Desai, 2013). In context to IKEA they mange their funds in proper manner. Company is
earning good revenues by their selling techniques.
 Marketing: This department manage activities like pricing, promotion, sales and others.
This department make sure that customers needs and wants can be satisfied by providing
them goods which can meet to their expectation. Targeting right customers is main
responsibility of this department. By promotion activities the sales of firm can increase.
Company do their promotion through social media and communication with public so
awareness can be generated.
 Research and development: Research and department is very important for every
organisation. In this firm gather information for market so that they know new trends can
be identify. Firm can know about their competition. By this performance of enterprise
can also be evaluated which help department to do work in perfect manner.
 Production: Production is primary role of firm. In this input covert into output. In this
staff need to motivate in manner so that they produce effective quality of products. This
department make sure that the product need to produce in efficient manner. All resources
should be utilise in proper ways so that wastage can not take place.
 Customer services: This department helps to solve customer queries. A company provide
various kind of services to its customers. To retain them enterprises create new
department name as customer services. If any consumer is facing any problem regarding
product they can contact to customer services. It make sure that customers are satisfied
with the services provide by firm (Nguyen and Simkin, 2012).
 Distribution: Distribution is medium by which firm can reach to its final customers and
provide them availability of products. IKEA is adopting new way of distribution in which
they offer there products through online. By this more customer can have access of goods
and they can buy those goods without investing much time. This department is link with
sales, marketing and production.
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All these department are inter linked each other. As one department is depend on other
department and proper coordination is required by them. So that all activities can be conducted in
proper manner. When marketing department is doing research they need to inform to production
department so that they produce goods according to customer requirements. Production segment
need to give information to finance department so that they prepare budget according.
TASK 2
P3.The ways in which different organisations apply the marketing mix to the marketing planning
Marketing mix is having various activities. By this strategies for promotion are included.
On the basics of this 4pc's strategies need to prepared. These 4pc's includes price, place,
promotion, physical evidence, process and people (Bastable, 2016). In services industry 3p's
more are added. These are physical evidence, process and people. But according to this report
IKEA is selling products so firm considered only 4p'cs. The IKEA comparison is done with
B&Q. This company is having its famous brand name in home decoration. It is major competitor
of IKEA. The marketing mix of these both companies are almost same as they perform same
activities. Both firm are trying to have their edge by using best techniques. So that they can have
competitive advantage. The comparison of these both companies 4 p's are given below. Product: Product is something which is offered by firm to its customers. In context to
IKEA they are offering their product in terms of furniture, home appliances and
accessories. Company is having wide range of products and they gives different names
to them so it easy to identify it. There are other firms also those who produce same kind
of goods and services so firm need design its goods so customers prefer IKEA goods.
Comparison: IKEA and B&Q are providing same kind of products with little variations (Durand
and Barlow, 2012). The way of delivery is differ from each other. The way they interact with
customers are different. IKEA is providing complete finish goods but B&Q is providing raw
material as well as finish goods.
 Price: Prices refer to value which is paid by consumers in return of products. IKEA is
providing goods in very reasonable prices. Company is having many techniques by
which they reduce their manufacturing cost and because of this they are able to provide
goods in convenient pricing. Pricing is very important element because if consumer
think the price is not for money worth they will not buy product. So it is important to
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decide prices in adequate manner. The quality of IKEA products are high and their
providing their goods in cheaper prices.
Comparison: Both companies are providing furniture in cheaper prices. Quality of
products of both companies are good. The only difference is IKEA provide free assistance to
their customers. But B&Q is providing different offers to their consumers. These techniques help
to attract more customers.
 Place: Place is another important p's. Where refers to the location at which goods are
available. It is very important to choose place because if product is not available to
consumer the sales of product decrease by this company can not get success. So the
location need to decide in manner by which large customer can visit stores and buy
products (Swenson, Rhoads and Whitlark, 2014). IKEA is having 330 stores in 38
countries. The company is giving proper guidelines to consumers so that they can visit
stores easily. The firm have major objective to expand their market in other countries
also. like IKEA B&Q is also having 371 stores in all over the world. Both these
companies are selling their products online also. By this way they can reach to large
population. In place the merchandising is also take place in this firm need to allocate their
products in proper manner so that customer can easily find goods what they required.
Comparison: Both competitor are selling their products through online and through retail
store. The difference is IKEA scientifically specified it product where as in B&Q there are selves
for every product which firm is selling (Tonkin, Whitmore and Cutroni, 2011).
 Promotion: Promotion is last element of marketing mix. In this marketing department is
responsible for promote its product and services. Promotion create the awareness among
the customers they purchase the company's product. It is important firm should promote
its products in attractive manner otherwise if there is no promotion. No consumer buy
product because they do know anything about particular goods. In context to case IKEA
is promoting their products through Catalogues. In this furniture picture with their prices
are mention (Hsu, 2011). Firm is also promoting its product by doing social
responsibility. Company join UNICEF and save children. So they can give better life for
them. On the other hand B&Q is promoting their product by giving them offers and
discounts.
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