Evaluating IKEA's Marketing Functions, Strategies, and Objectives

This report provides an overview of marketing essentials with a focus on IKEA, examining the roles and responsibilities of marketing functions and their relation to organizational areas. It details how IKEA uses the marketing mix (7Ps) to achieve business objectives, including place, promotion, price, process, product, physical evidence, and people. The analysis covers market research, product development, distribution, financing, pricing, promotion, and selling. It also highlights the importance of aligning marketing with human resources, IT support, and finance. The report emphasizes IKEA's strategies for customer satisfaction, sustainable practices, and continuous improvement to maintain a competitive edge and increase profitability. Desklib offers a wealth of similar solved assignments and resources for students.

Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Discuss the roles and responsibilities of marketing functions.........................................1
P2) Discuss the different types of organisational functional area and how it is relates with
marketing functions ...............................................................................................................3
TASK 2............................................................................................................................................4
P3) compare the ways in which organisation use component of the marketing mix to achieve
overall businesses objectives .................................................................................................4
TASK 3............................................................................................................................................6
P4) Marketing plan of Ikea organisation ...............................................................................6
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Marketing essentials is very important, it is the way of increasing their sales and to stand
in the market and compete with their challenger. It is vital tools in the modern businesses
corporations it includes demand of the customer, making profitability ratio and making
marketing strategies (Pappas, 2017). Ikea is the famous company it sells their furnitures items,
kitchen product. This organisation main objectives to sell their product in effective manner and
increase their sales and maintaining their relationship with consumer through providing quality
of product. This report will explain role and responsibilities of the marketing functions and it is
also define roles of marketing function in different area and also providing the marketing mix
with seven p's it is also very important for generating the profitability ratio of the businesses.
P1) Discuss the roles and responsibilities of marketing functions
Marketing functions is play a vital role in promoting the business of IKEA organisation,
it provides the several types of opportunities of the businesses. It defining the image of the
company and conducting campaign management means they produce their product in according
to customer demand. This organisation is also contributes their efforts and managing social
media like they create own social media page and they continuing manage their account and
post new product image on online. It is very helpful for expanding their business whole market
or nations (Pappas, 2017). This organisation marketing department also play very crucial roles
on increasing the sales of the businesses. They also providing the satisfaction to their customer
while using new methods of marketing functions. The responsibilities of the marketing functions
to responsible for overall growth of the corporations. Management of IKEA enterprise also
responsible for increasing their share, making effective long term strategies of the businesses.
There are seven functions of marketing given in below diagram, these functions are very useful
to promoting the IKEA businesses.
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Market research: it is one of the important functions of marketing it helps to collecting
information regarding IKEA organisation products sales. It also helps to gather their target
consumer, this company sell their products in according to customer demand (Jacobs, and
et.al . 2017). They collect some date from the market and try to improve their services.
Product development: it is consisted with additional benefits to their consumer, IKEA
company focus on growth of their product (Baack, and et.al, 2013). They involve modification
of an old product and producing new variety of items for fulfil their customer needs. This
organisation main motive to develop their existing product services with using new marketing
techniques.
Distribution: IKEA main aim to increase their sale so they use distribution channels means
distributing their product services in local area as well as whole nations (Hanlon, 2014). This
function is very useful for expanding the sales of businesses and if every company use this
function so they achieve their goal of the corporations.
Financing: it is also very important function it shows the revenue and income of the IKEA
organisation and it is also helpful to managing the funds of the corporation (Baack and et.al,
2013). It is helpful for future forecasting and estimated the coming profit of the businesses.
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Il
lustration 1: marketing functions
Source: (seven function of marketing management, 2017 )

Through this function this industry finding the cash through investment, loans and advertising of
this enterprise goods and services.
Pricing: it is also crucial aspects IKEA company providing their goods and services in effective
reasonable rate, it is important for increasing their sales this company want to generate their
more profit so they decide to sell their services in better prices.
Promotion: IKEA try to promote their product services so they provide quality of product
items, they also advertisement their services in effective way (Hanlon, 2014). This company
main motive to earn more profit with promoting their goods and services in effective manner.
They advertising their new product and it is very essential to attracting new consumer and
keeping existing clients come back.
Selling: it is the process of takes places when Ikea manufactures sell to wholesalers, then
wholesaler sells to retails then retailers sell their product to the consumer at the end. Selling is
also helpful for increasing the sale of the company (Hanlon, 2014). This organisation main
motive to earn more profit and they also providing quality of services and produce their product
as per consumer demand.
These are main functions of marketing, it is very helpful for managing the whole
organisation and providing the quality of products (Hanlon, 2014). These functions is
providing the directions of the business. So most time IKEA or many organisations using these
functions for expanding their work. Role of marketing is vital as it create the base for the better
and efficient working of the organisation.
P2) Discuss the different types of organisational functional area and how it is relates with
marketing functions
Marketing vs. Human resources: is the functional area of the IKEA businesses. It is most
important assets in this organisation. HR department is responsible for recruiting the right
person with required skills, knowledge, qualification and experience this corporation also
providing the job for right peoples. Human resources management is also important for
managing the whole employees as well as providing training to their worker for developing new
skills.
Marketing vs. IT support : it is also important for providing direct operating assistances in
software for other section IKEA company is also using information technology tools these tools
are very effective most of the company use this functional area because it is very easy to
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providing the information one sections to another section. It is also helpful for long run
businesses now days it is very essentials for expanding the businesses and all the date
information managing in effective manner.
Marketing vs. Finances: this is responsible for producing the IKEA financial statement means
managing funds in proper way like cash flow is the main aspect of this company. It is crucial for
handling the cash outflows and inflows. So this is very essential without finance no anyone
operates their own businesses.
The interrelationships between marketing functions and other company functions
providing actual information of the businesses so main motive of these functional department to
increase the profitability of the businesses. Ikea main motive to maintained their functional area
each department it is very necessary for growth of the organisation (Hanlon, 2014). Marketings
function is the process of planning and execution the several different functions of the
marketing. It involves pricing, sales, distribution of goods and services sales etc. these are
aspect are also interrelated with the functional area of the organisation. If the IKEA organisation
need to plan and implement a marketing plan, then they need to operational department of the
corporation human resources management, sale department and finance department. The main
functions of marketing department for the making effective planning for long run businesses and
follow all the plan in specify manner. The finance division provides appropriate budget to the
production area this department communicates with logistics section to fulfil the demand of the
this organisation product and their services. Human resource also help to generating the market
trends, increasing sales and target customer (Hanlon, 2014). All the functions of the enterprise
correlate with each other to bring a effective marketing strategies plans whole this corporation.
TASK 2
P3) compare the ways in which organisation use component of the marketing mix to achieve
overall businesses objectives
There are seven p's included in the marketing mix of IKEA organisation
Place- this company has a wide international marketing business and focus on the selling the
furniture and its parts in different nations . Its core business runs from the many retail stores.
Almost all the stores are outskirts of the city area, which are not nearby to the crowded places.
There all stores are huge in the size and almost all having the restaurants, shops of food. There
are 300 or more stores of the company.
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Promotion- advertisements, sponsorship, newspapers, magazines, social media etc (Pappas,
2017). these are the elements of promotion to this organisation product, the company has
launched the campaigns like kitchen party advertisements with the tag line of “be happy inside”.
The innovative logo of the company also makes the present of the brand images. It help to
maintaining the reputation of product to their marketplaces.
Price- this company sell their products at reasonable prices. Ikea company is not hiking the
prices at the prices after establishing their business to earn the revenue. The criteria of selling the
products at minimum cost with no luxurious items are added in extra (Reynoso, 2013). The
products are designed, raw material is arranged and manufactured. Then it comes to the
distribution part and distributed to the small branches of the Ikea. After that, reach to the
customer. This organisation is providing the home delivery to their consumer, if they want by
paying the extra cost. There are different terms for various products.
Process – the company makes their products on their own level they produce their lots of new
items (Hanlon, 2014). They are the owners of the forestry sawmills and open a many stores in
all over world this organisation main motive to expand their businesses through using effective
marketing mix plan. The is like the customer visits the store, choose the product to be made,
order it and lastly take the product when ready.
Product - the company provides the diverse products with different prices. The different
products like coffee tables, side tables, TV solutions, storage area for DVD, shelves of different
designs, side boards, bookcases, sofa beds, armchairs, leather sofas and fabric sofas (Kubacki,
and et.al., 2015.). For children they are making the innovative products which attract them like
their rooms, kitchen, bedrooms and living rooms are designed from that they feel good living
there. There satisfaction is most important for the IKEA organisation. There are different area
are divided for various sections like for kids the department will be different. They have the
varieties of products. .
Physical evidence – the company has very large stores in the outskirts of the city having the
diverse variety of the furniture. All store having the facility of parking the car, restaurants to their
consumer and the aim of this marketing mix providing several item to their clients and fulfil their
needs.
People- the company believes in making the long run relationship with the customers their
satisfaction is more important (Kubacki and et.al., 2015). Company is planning to make the eco
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friendly furniture to the customers so that they can support the environment like tap which are
water saving, the appliances are made which makes the waste ready to recycle. The company is
more focussing on the sustainability of the work. Ikea server their good and services in customer
demand they produce their product items as per the consumer demand and in according market
trends.
Marketing planing is the very important for increasing the sales of the businesses IKEA
company make a very effective plan for long run businesses this organisation also focus on every
each department work in effective manner (Kubacki and et.al., 2015). The objectives of
marketings planning to achieve the goal of the businesses and providing customer satisfactions.
This corporation also work on marketings strategies they make their long or short term strategies
for achieving the objectives of the firm. These market concepts are related to the price,
promotions, distributions, sales. The main motive of this company to earn more profit with
effective sale of their product. Marketing strategies refer with the long term planing of the firms
and making better decision this organisation is also use proper utilizations of resources. This
enterprise is also provides the details regrading to the number of factors such as planing,
implementations, controlling product it helps to increasing the work efficiency.
Ikea focus on their brand equity they provide value of customers as well as product.
Every company want to increasing their sales to their product as-well as maintaining the
reputation of the organisation it is also very necessary for growth of the businesses (Loe and
Ferrell, 2015). So this firms also concretes on their brand , they provide their customer quality
product and fulfil their consumer demand. This corporations making a marketings
segmentations in different types area like they segment production area, organisation is also help
to identifying the consumer need and try to fulfil their demand in according to clients
perceptions. This company need to understanding the customer potential so this industry find
out the actual performance of the businesses and improve those areas which is not working in
effective manner.
TASK 3
P4) Marketing plan of Ikea organisation
Ikea need to develop their understanding with customer so they people make marketing
plan for growth of the company and they earn high profit margin (Hanlon, 2014). So that why
they make an effective marketing plan. It is important for identifying their competitors and make
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a strategy according to the need and requirements of market. There are 7P's to achieve this
company objectives.
The market objective of IKEA organisation to expand their businesses with effective
prices and better product. This company make their marketings plan with the help of 7 P's and
they also achieve their objectives with the help of market mix. They also make market strategies
with the help of these market mix plan.
Objectives: The objective of IKEA company to earn more profitability ratio and providing the
best quality product their customer.
Situation analysis:
SWOT the conditions of IKEA company they have large number of competitors and so
they have operates their in multiple nations, it is high scale and large size business it is more
difficult to control all work. PESTLE IKEA has using new technology for developing their
businesses and maintaining healthy environment in their workplace and they also provdie lot of
opportunities for their economic people.
Strategies:
Place strategies: IKEA is produces their limited amount goods and services and usually
relies on its network of provider (Reynoso, 2013). This organisation suppliers are able to create
better environment and take responsibilities to providing their products on timely in market
place. This company also expand their work not only local area as-well as worldwide. They
ready to face future challenge for earning more profit, they also adopt new technology. Most of
the consumer ordering their furniture goods online so they use also use social sits.
Product strategies: IKEA produce their furnitures products is well designed and they will
provide their goods at reasonable price (Hanlon, 2014). They launch new product in market with
innovation plan. The main purpose of this company to provide their customer satisfactions, so
they giving the quality items with effective value.
Price strategies : it is key feature of marketing mix plan, the good and services are mostly
charged in according to the consumer demand (Pappas, 2017). They provide affordable price it
is important for every customer are easily ready to buy their items.
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Promotion strategies : IKEA promote their product through advertisement, social media sits,
and they also promote their product in different countries with effective methods. When they
lunch new products so they also include online advertisement (Hanlon, 2014). This company
main motive to promote their services with using effectively techniques like publicity event
sponsorship, innovation approach.
People strategies : the main purpose of IKEA organisation to increasing their sales and
cover whole UK market. The most essential consumer that are associated to achieve the
objectives are managers staff and intermediaries that help the organisation to reach their goal
(Reynoso, 2013). It is most important techniques marketing mix plan with activity of the
relevant people.
Process strategies : it is referred with only the products of IKEA organisation are interest
to their consumer but the process that makes the items available is also very crucial (Hanlon,
2014) . Process is also related to all the activities that are involved in making goods are
available in market it is very useful method for obtaining the best result in the future.
Physical environment and strategies : IKEA company involves the logo of their
organisation in physical evidence it is useful for attracting more consumers this company also
create a healthy environment in their workplace and they feel comfortable their
employees(Pappas, 2017). It is also related with signs, packaging of their items that makes the
consumer trust on them.
STP (Segmentation, targeting and positioning)
The market segmentations is referred with the efficient tools for marketers to provide
target people. It is very easy process to divining the market of customer into unique groups.
IKEA produce their product in according to different size of age, income,place lifestyle and
occupation level. It is easy to take decision what they manufactured or not.
Company uses demographic, target professional people those who have adequate income
sources, positioning strategy of company. Market positioning is related to the establishing the
image of the product so that customer perceive their services in easily way. So IKEA also
establishing their brand name for maintaining their company or product reputation.
Budget : IKEA expand their businesses in many countries and they earn huge amount. The
budget of this company 5 lakh per year.
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Controlling IKEA: monitoring their company in effective way and they improve their
employees work efficiency through better training program.
This is marketing plan of IKEA organisation with effective seven p's , these are very
helpful for growth of the organisation (Reynoso, 2013).
CONCLUSION
It can be concluded that the role of marketings is very necessary, it create the value of
IKEA company and if this corporation uses right method and maintain their interpersonal
relationship with their customers. It is very effective way to promote their good and services.
This report is about marketing essentials and it used the organisation for effective management
tools so it help to raise their future sales. The purpose of marketing plan is developed their
corporation image and if this firm implement all the market plan so they achieve their goal of the
businesses.
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REFERENCES
Books and journals
Baack, D. W., Harris, E. G. and Baack, D., 2013. International marketing. Sage.
Bahadir, S. C., Bharadwaj, S. G. and Srivastava, R. K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal of
International Business Studies. 46(5). pp.596-619.
Chen, Y. and et.al., 2015. Linking market orientation and environmental performance: The
influence of environmental strategy, employee’s environmental involvement, and
environmental product quality. Journal of Business Ethics. 127(2). pp.479-500.
Hanlon, A., 2014. Quick Win Social Media Marketing: Answers to Your Top 100 Social Media
Marketing Questions. Oak Tree Press (Ireland).
Jacobs, K., MacRae, N. and Sladyk, K. eds., 2017. Occupational therapy essentials for clinical
competence. Slack Incorporated.
Kubacki, K. and et.al., 2015. A systematic review assessing the extent of social marketing
principal use in interventions targeting children (2000-2014). Young Consumers.16(2).
pp.141-158.
Loe, T. W. and Ferrell, O. C., 2015. Ethical climate’s relationship to trust, market orientation and
commitment to quality: A single firm study. In Proceedings of the 1997 Academy.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Reynoso, J., 2013. Essentials of Services Marketing. Journal of Service Management
Strandvik, T. and Heinonen, K., 2015. Essentials of customer dominant logic. The Nordic
School, Service Marketing and Management for the Future. pp.111-127.
Online
Functional area of a business. 2017. [Online]. Available through:
<http://foundersguide.com/functional-areas-of-a-business/>.
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