Marketing Essentials Essay

This essay is a comprehensive analysis of IKEA's marketing strategies. It begins by defining the key responsibilities and roles of marketing functions, exploring various marketing concepts (product, production, selling, marketing, and societal) and their interrelation with other organizational units. The essay then delves into a comparison of the marketing mix (7Ps) in various organizations, contrasting IKEA's approach with that of B&Q. A detailed SWOT and PESTLE analysis of IKEA is presented, followed by recommendations for improvement. The conclusion summarizes IKEA's overall marketing success and identifies areas for future development. The essay utilizes numerous academic sources to support its arguments and analysis.

Running head: MARKETING ESSENTIALS
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MARKETING ESSENTIALS
Table of Contents
Introduction:....................................................................................................................................4
Task 1:.............................................................................................................................................4
a) Key responsibilities and roles of functions of marketing:.......................................................4
b) Marketing concept, inclusive of present and future trends, overview of marketing process:. 6
Product Concept:.....................................................................................................................6
Production Concept:................................................................................................................7
Selling Concept:.......................................................................................................................7
Marketing Concept:.................................................................................................................7
Societal Marketing Concept:...................................................................................................8
c) Key elements of functions of marketing and interrelation with other organizational
functional units............................................................................................................................8
a. Research:..............................................................................................................................8
b. Strategy:...............................................................................................................................9
c. Planning:..............................................................................................................................9
Task 2:.............................................................................................................................................9

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a. Comparison of function of marketing mix in the process of marketing planning in various
organizations:...............................................................................................................................9
b. Various tactics applied by companies in achieving business objectives:..............................10
Comparing IKEA with B&Q:................................................................................................11
Marketing Mix Comparison:.................................................................................................11
7P’s of IKEA:............................................................................................................................13
1. Product:..............................................................................................................................13
2. Price:..................................................................................................................................14
3. Place:..................................................................................................................................14
4. Promotion:.........................................................................................................................15
5. People:...............................................................................................................................16
6. Physical Evidence:.............................................................................................................16
7. Process:..............................................................................................................................17
Task 3:...........................................................................................................................................17
Development and evaluation of a basic marketing plan:...........................................................17
SWOT of IKEA:........................................................................................................................17
Strengths:...............................................................................................................................17
Weaknesses:...........................................................................................................................17
Opportunities:........................................................................................................................17
Threats:..................................................................................................................................18

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PESTLE Analysis:.....................................................................................................................18
Political:.................................................................................................................................18
Economical:...........................................................................................................................18
Social:....................................................................................................................................18
Technological:.......................................................................................................................19
Legal:.....................................................................................................................................19
Environment:.........................................................................................................................19
Competitive Analysis of IKEA:.................................................................................................19
Recommendations:....................................................................................................................20
Conclusion:....................................................................................................................................21
Reference:......................................................................................................................................22

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Introduction:
Marketing is stated to be one of the important tools in the modern business organizations
taking in the understanding of the market area, consumers’ demands, market strategies that are
consumer driven along with offering quality among the customers. The business organizations
have recognized the significance of the relationship of customers, trying to get an innovative
advancement towards the strategy of marketing in business (Mandal 2017). The alertness related
to the essentials of the market are too high in the present market situation across the globe.
IKEA has been known for its modern yet reasonable furniture with their founder,
Kampard generating an inimitable culture that was formed on respect for an innovative attitude
and money (Jobber and Ellis-Chadwick 2016). It was Kampard’s belief and attitude that made
IKEA come up with products that have been aesthetically premeditated valuing them at
affordable rates. This aspect hugely improved IKEA’s brand image that was being perceived as a
company having belief in social equality.
Task 1:
a) Key responsibilities and roles of functions of marketing:
The function of marketing can be stated as the role of the organizations of business which
would help in identifying and sourcing of the probable successful products of the market along
with helping in the promotional activities. These functions are stated to be common within the
business organizations taking in the factors of market research, plan of products, process of
development, sales and customer service. The function of marketing takes in several
responsibilities of the organizations, such functions has been responsible for the growth of the

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company (Huang and Sarigöllü 2014). The functions of marketing takes in the strategy
management, system of sales support, distribution system and human resource department. These
functions of marketing have various roles in promoting expansion within the business
organization. The marketing functions have an important role, establishing a closer association
among the functions of marketing with other organizational functions.
Marketing plays an important role in promoting of the business along with mission of the
organization. It generally serves as the face of one’s organization, synchronizing and generating
all the materials that represent the business. It is the role of the marketing department in reaching
out to the prospects, investors along with the customers and generating an overarching
representation representing the company in a positive light (Armstrong, et al. 2015).
Depending on the company, the marketing Department might take in factors like defining
and managing of one’s brand, constructing marketing and promotional materials, generating the
internal communications, conducting of the market and consumer research along with
administration of the outside vendors and agencies.
One of the vital roles of marketing is to know the exact position of the company as
regards to the market along with the competition. This is the reason for marketing department to
watch the competition from close quarter’s and understanding and learn from the mistakes for
avoiding falling to them (Weinstein 2013). Around the marketing of the business there are many
contributors like the designers, suppliers and consultants. The work of such contributors needs to
be aligned with the company objectives and it is upto the marketing department for controlling
the same.

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The marketing also has the responsibility of surprising the customers, given the advanced
offer where they are more demanding with the same. The department of marketing should work
on fresh promotions, techniques of customer retention and developments in the version of the
actions and messages (Pomering, Kyriazis and Johnson 2014). Moreover, it has been stated that
even if the production or commercial department is doing an immaculate job, if the marketing
department fails, the overall company would fail and the efforts put in by other departments
would be in vain. This is why it is significant for the marketing department in ensuring that their
actions united with the general objectives of the company and that they would be reporting the
work they are performing (Janssen et al. 2013). It is significant on the part of the marketing
department in knowing the users and mainly the feelings of the customers.
b) Marketing concept, inclusive of present and future trends, overview of marketing
process:
The concepts of marketing are being segregated into five key concepts that depicts the
core of marketing in IKEA. This notion of marketing takes in the present along with the future
trends for a successful preparation of the marketing concept (Huang and Sarigöllü 2014). The
concepts take in the factor of product, production, marketing, selling and societal respectively.
Product Concept:
The consumers have been relating and selecting the products that have enough value for
their money, approach of innovativeness and quality. This perception derives the fact that the
consumers can be maintained through the services and products that are valuable for consumers.
IKEA has been stepping up its efforts for improving the products quality and streamlining the
manufacturing costs.

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Production Concept:
This concept is primarily based on the consumer’s perception depicting that the
consumers are disposed towards the products that are available easily in good amount within the
market at inexpensive prices. Thus the operational aptitude of the organization should be
focusing on the augmentation of the rate of production. IKEA’s production concept is based on
‘Furniture for the Masses’.IKEA required having one operating model that has the ability in
keeping their costs low- starting from the sourcing to the transportation and manufacturing to the
selling of finished goods to customers.
Selling Concept:
The mindset of the contemporary consumers have been attracting through the promotions
with the consumers intending to focus on the services and the products that are being
aggressively promoted within the marketplace (Datta,Ailawadi and van Heerde 2017). IKEA has
been taking in aggressive promotions that include sponsorship, newspaper along with magazine
advertising. Though some of the television ads is being considered to be controversial while
others have been pretty clean and plain.
Marketing Concept:
The concept of marketing takes into account the prerequisite of focus over the target
consumers for their product delivery along with service. Moreover, as per Sarstedt,Neubert, and
Barth (2017), for facing the competitive market, the business organizations would be requiring in
delivering better value of services and products. The marketing concept takes into account the
organization’s brand value requiring enhancement for connecting with the target consumers.
IKEA makes use of the marketing concept. This company has been enabling the shoppers in co-
designing and co-constructing the fresh concepts for customization of the living spaces. IKEA

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ahs also launched one of the mobile loyalty programs in building the consumers database who
are interested in receiving the discounts from retailers.
Societal Marketing Concept:
This concept displays the key focus over the requirements of the target consumers for
them to favor this brand over the other rivals existing in market. The social initiative of IKEA is
in delighting their customers. IKEA is one of the furniture companies that simply desires in
helping their customers improve their regular life. For IKEA it’s the customers who come first,
helping millions of consumers with their everyday lives.
c) Key elements of functions of marketing and interrelation with other organizational
functional units
Marketing functions have been enclosing various functions like finance, advertising,
system of distribution, but these are the activities that come under the process of marketing. The
important elements of marketing are:
a. Research:
In the market of business organization, research plays one of the important roles. It has
been considered to be one of the most significant marketing functions, as without the successful
research in market business is never possible. Research helps in getting important information
related to all the factors that are concerned with the factors concerning the process of business.
IKEA is in the business of doing market research on regular basis that is crucial for sound
development of business. IKEA has been getting help from Opticom helping in asking IKEA’s
existing customers along with the probable ones the correct questions for result analysis.

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b. Strategy:
After the successful achievement of the research along with the procedures of strategy,
the subsequent main function of marketing is the process of planning. The department of
marketing takes in forecasting of the figure of sales, sales figure, distribution and other business
factors. The planning department makes use of the detailed timeline in planning the key
strategies for converting the goals of the organization into success. IKEA uses the stable
reduction of the prices of the products as the strategic tools for the essence of growth. This
approach has become a style which made the growth of IKEA desirable. The company has been
seeking full knowledge of the cost of production
c. Planning:
After the successful achievement of the procedures of strategy, another important
function of marketing is the process of planning. The department of marketing takes in financial
planning, sales figure forecasting along with other distribution process. IKEA can benefit itself
from an integrated marketing plan that needs to be bold and innovative. IKEA needs to strive
more in creating better conditions for the employees of the suppliers.
Task 2:
Ways of using the marketing mix for attaining business objectives:
a. Comparison of function of marketing mix in the process of marketing planning in
various organizations:
The marketing mix is being useful in the process of marketing planning for attaining of
the goals of organization along with the objectives. The business organization makes use of the
several methods for the relevance of the marketing mix among their companies. Generally, it is

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being based over the demographics of the market, company’s products and services, size of the
market and that of the company (Tiwari 2015). Market mix is stated to be tool that helps the
marketers in understanding the product. The general appliance of the marketing mix takes in
4P’s of marketing that involves product, price, place and promotion factors. This method was
later unmitigated to the 7P’s of marketing with the factors being product, price, place, promotion,
people, process and physical evidence.
IKEA is a big company that has been operating globally for years and its customer
oriented efforts have been fruitful in evolving and making impression in the market it operates.
Various other business organizations like Walmart, ILVA, Tesco and ASDA invests bigger sums
of money into the process of marketing, promotion and advertisement, development and research
though companies like ILVA and ASDA have not been able to get the same response as IKEA.
The primary reason behind IKEA’s success has been its proper understanding of the market and
the customer through the indispensable tools of marketing and structuring the goals of the
organization and strategies with advancement of customer contentment. The application of the
process of marketing mix within the process of marketing planning is being focusing on the
dimensions of the product, place of advertising the product, structure of pricing and company’s
promotional activities. The extended marketing mix utilizes the significance of the process of
delivery, offering physical evidence to the consumers and focusing over the people.
b. Various tactics applied by companies in achieving business objectives:
The organizations of business with their various organizational ethnicities pertain the
tactics in achieving their respective objectives of business. Companies like IKEA have been
making use of the 7 P’s of their marketing mix in their process of marketing planning for
achieving the objectives of the organization. IKEA believes in adopting the culture to their

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products, whereas, companies like TESCO have been adopting their product to the cultures.
ASDA has been trying to transfer the concept of ‘fast fashion’ that has been witnessing
spectacular reduction in the process of the furniture. The company that is generally being owned
by US retail powerhouse Wal-Mart, increasing a direct confrontation with IKEA that have been
dominating the living rooms in many countries like UK, Sweden. Denmark’s ILVA is another
company that has for long being trying to outwit IKEA on the furniture front. The primary claim
of ILVA has been they have been following the strategy of ‘attacking mediocrity’. It has been
following IKEA fro close quarters with its mock-ups and displays showing the same style as
IKEA.
Comparing IKEA with B&Q:
B&Q has been the biggest competitor of IKEA, both being the leading organization in the
industry of home decoration. IKEA is in the habit of targeting younger generation of people as
its main target, particularly those who have been in love with the modern accessories and
furniture. B&Q is very different from IKEA and it is more specialized in one stop shopping, in
which customers get more opportunities to buy decorations and accessories in their own
perceived style. The customers also get an opportunity of buying raw materials from B&Q for
making any sort of products, whereas for IKEA are products are mainly being displayed as
models, limited and fixed.
Marketing Mix Comparison:
In case of product, both the companies, IKEA and B&Q are complementary to each
other. They are in the business of providing full range of products along with the professional
designs. However, the most important difference between the two companies is that IKEA has
been selling only finished products whereas, as stated earlier B&Q offers raw materials as well.