Marketing Essentials Report: IKEA's Marketing Strategy and Evaluation

This report provides a comprehensive overview of marketing essentials, utilizing IKEA as a case study. It begins by exploring the key roles and responsibilities of marketing functions, such as brand management, customer relationship, competitive analysis, and innovation, and how these functions relate to the wider organizational context. The report then compares two organizations, illustrating how they apply the marketing mix to achieve their business objectives. Furthermore, the report focuses on IKEA, producing and evaluating a basic marketing plan for the company, which includes an analysis of its distribution channels, financing, market research, pricing strategies, product and service management, and promotional channels. The report highlights the importance of market research, transportation facilities, risk assessment, and product quality in achieving competitive advantages and organizational goals.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing functions.....................................................1
P2 How roles and responsibilities of marketing relate to the organisational context.................4
TASK 2............................................................................................................................................6
P3 Comparison of two organisation in which apply the marketing mix to achieve business
objectives.....................................................................................................................................6
P4 Produce and evaluate basic marketing plan for an organisation..........................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Marketing is an important tool in modern enterprises. In this included a procedure of
creating, producing, promoting and distributing goods and services to the customers to satisfy
their needs. In this consider a study for analysing marketing situations, marketplace, competitors,
building good relations, customers identification and many more. Every businesses realised the
importance of customers relationship for developing particular enterprises in the market. It is an
essential for developing effective marketing strategies for creating awareness among people
regarding specific goods and services (Bowie and Paraskevas, 2014). This assignment is based
on IKEA which is Swedish founded and Dutch multinational group. It deals in several products
such as furniture, home accessories and kitchen appliances in the marketplace. This firm is
situated in Sweden in the year of 1943. the report will focus on different marketing essentials in
an organisation as per present scenario. It will cover the roles and responsibilities of functions of
marketing and explain that how it is related to the wider organisational context. This report also
consider the comparison of different organisations and the ways in which they apply marketing
mix into planning process for achieving business goals or objectives. Last but not least, it will
produce and evaluate a particular marketing plan for IKEA organisation.
TASK 1
P1 Key roles and responsibilities of the marketing functions
Marketing functions can be considered as the entire roles or responsibilities which helps
in identifying various sources for producing effective gods and services for the purpose of selling
it into marketplace. There are number of functions included in this such as market plans,
research, product planning, promotional tools, development process, finance, sales and
customers services. These are very helpful in increasing the size of growth of an organisation and
create market awareness in effective manner (Mariussen, 2014). On the other side, marketing
functions included several responsibilities and it consist various aspects such as strategy
management, market survey or research, system of sales supporting, products developments,
distributions process, human resource department and many more. These marketing functions
have different roles and responsibilities for promoting growth and increase goodwill of the
organisation. Some of them included as finance, communication, distribution, selling, and
promotion etc. therefore, it has crucial roles in the business firm. In IKEA firm, they concentrate
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on the different marketing functions and essentials for developing the business at the market
place. These are as following;
Create and manage organisational brand: In this consider the brand value and good will
of the organisation in the market that must be manage or maintain in effective manner. It is moral
duty of management to define and create their image, set goals, targets, visions as well as
missions that must be achieved in limited time period. They are required to analyse that what
firm wants and which kind of strategies can be beneficial for better marketing and help to
societal people in an appropriate manner (Brassington, 2013). With the help of this, company can
create market create market awareness among customers and build better relations with society
people so that brand image can be build for long time period.
Listen to customers needs: For making the marketing strategies, it must be necessary to
find or analyse customers needs or wants so that company can provide particular products and
services to satisfy needs or wants in an effective manner. In this include a procedures for creating
survey and collect information regarding customers support and sales team that can be enhance
the appropriate market strategies in the future.
Monitor competition: This the moral duty or responsibility of marketing department that
to know or define about position of particular organisation in the marketplace. It is necessary to
find the better position and place of IKEA company among competitors. Therefore, marketers
always focus on their competitors to watch the competitions and identify mistakes so that failures
can be overcome or avoid.
Bring innovation: It is also another important role that played by the marketing
department as in this, they focus on bringing new innovative ideas or thoughts for creating better
awareness among customers regarding particular products or services (Pettitt, 2013). IKEA
organisation also consider this for new promotions, affiliate programs, customer relations and
retain them towards company.
Internal communication: This is very important to communicate with entire team or
work force regarding any marketing strategies and tools or techniques so that they can use for
promoting business. Therefore, every individual who are associated with a particular
organisation, requires to understand regarding missions, visions and objectives so that they can
achieved goals or targets. Internal communicate can be done by using newsletters, emails and
internet in an appropriate manner.
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IKEA is one the largest firm which is situated in the Sweden, it deals in number of
products such as furnitures, home appliances and many more in the market for satisfying
consumer demands and needs. They focus on adopting best marketing tools and techniques for
developing the business in the competitive environment (Cleverley, 2017). There are some
important marketing functions which helps in promoting products and services in the market
place such as;
Distribution Channels: It is the important functions of marketing where company
decide that how goods or services can be distributed to reach at potential customers. It is great to
have best product ideas and able to delivery that to satisfy their needs and wants and fulfil desire
expectations. Company always wants to analyse the market and find an appropriate way to
distribute products to the potential or targeted audiences. IKEA firm is trying to adopt new
method as they bring a systematic process in their store and arrange whole products according to
them so that customers can find desired goods in easy way.
Financing an enterprise: This is also necessary to finance the firm for development.
Entire activities of market requires to proper funding so that task can be completed in effective
manner. In this compulsory that products should not be old as well as sales must be done on time
without any delaying. Marketing department generate a budget for task or activities completions
and also utilise appropriate capital and resource to get maximum outcomes. These budgets are
used for effective promotions and advertisements.
Market research: It is related with marketing study for gathering more information
regarding target audience or customers. With the help of this, marketers can find the potential
customers and make strategies for delivering goods to them to satisfy their needs or wants in
effective manner (Clow, 2013). It is an essential for analysing market trends, fashions and
conditions for creating awareness in the market and adopt best techniques for surviving in the
competitive environment.
Setting prices: In this defined that company can changes their pricing strategies as per
the environment. IKEA firm focus on setting its price according to cost factors and competitors
as they undertake these aspects in pricing strategies. It is necessary to set best prices in an
effective manner as if cost is too high then it will lose customers. Therefore, right prices must be
set through market research.
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Product and service management: In this market function, firm decided the target
audiences and then set price of their products and services so that they can achieve
predetermined goals or objectives. It is based on the marketing roles or responsibilities including
listening customers needs and wants for provide maximum satisfaction. They also consider that
keep their products up to date and fresh for serving better quality to customers.
Promotional channel: Most of owners are familiars with promotion ideas so they make
strategies and adopt best tools or techniques fort promoting their products and services in the
market. IKEA firm requires to select ans appropriate way to promote its products so that number
of customers can be attracted towards organisation (James, 2013). It is necessary to create
awareness in the competitive environment. Promotional channel support in passing information
to the target audiences as well as market.
P2 How roles and responsibilities of marketing relate to the organisational context
Marketing is an essential and important aspect that helps in developing an organisation in
an effective manner. With the help of this, company can increase its sales and profitability. In
this consider several a activities such as promotional, advertisement, market segmentation, target
and positions, Development of products, price strategies and location that have to perform by the
marketing department of any organisation. Manager play a vital role in promoting particular
products or services of he company.
In the IKEA firm, manager perform his duty by conducting survey and research of
marketing as in this, they collect various data or information regarding conditions and trends of
market. They gather information about customer's preferences, choices, needs and demands,
competitors, analysing current situations so that effective products can be produce to fulfil
demand or desired expectations. It is the duty of management to take part in decision-making
process for developing innovative ideas and create better quality of products (Desai, 2013).
Marketer requires to concentrate on new innovation and creative ideas for promoting their goods
in the market. In the IKEA firm, they need to adopt best strategies for innovative products and
find suitable method for promotion so that plan can be implemented and also enhance skills or
knowledge of employees to make or increase sales volume for attaining predetermined goals or
objectives. Here are some roles and responsibilities of the marketing that are related with IKEA
firm as how that are performing these functions for achieving competitive advantages such as:
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Research: It is defined as the study or survey for analysing market and environment for
effective business. IKEA is considering this activity while conducting market research as it is
beneficial tool for collecting more information which support to develop the new product and
create better positions in the market. This firm is always focus on increasing services and
providing better quality of products that can beat strong competitors and attract number of
customers towards organisation (Durmaz, 2011). With the help of market research, marketers
can get information that what is happening in the market and which product will be suitable for
beating with competitors in an effective market.
Transportation facilities: IKEA firm requires to use better facilities for transportation or
distributing goods and services to the target audiences. In this consider the best strategies for
transforming products by using effective tool or techniques so that money can be saved and also
save time consumption. IKEA use the strategy of Just In Time (JIT) for managing inward and
outwards for producing goods or services.
Assessment of risks factors: In this defined various risks or uncertainties that can be
occur while operating business as company has to face different kinds of situations or risk such
as internal and external so that it is required to analyse all these factors and make better strategies
for minimise risks. It directly affects on the employees performance and productivity for
achieving goals or objectives. Risks can create barriers in achieving growth and generate
revenues. Managers of IKEA requires to analyse all these forces and trying to minimise for
effective firm.
Better quality of products and services: This is very important function in which
marketers ensure about its products and services quality so that number of customers can be
attracted in an effective manner. Therefore, IKEA firm adopted the strategy of Total Quality of
Management at the workplace for the purpose of providing better quality of products or services
(Fazlollahtabar, 2012). It helps in achieving long term benefits as IKEA firm has achieved strong
positions and captured market by serving better goods or services because they focus on quality.
Product development: This is an important element which support in increasing brand
value in better ways. IKEA has its separate research and development department where they
analyse the market situations and produce effective goods and services by considering customer's
needs or wants as well as desired expectations. Firm invest huge amount of funds for R&D to
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discover the innovative ideas and make creative products for meeting consumer demands and
needs.
Human resource: Functions also included human resource as it play a vital role in
increasing sales and generate higher revenues with the help of selling variety of products and
services. HR manager of IKEA company conduct training and development program for
enhancing individual skills and abilities so that they can work in an effective manner (Aghasi,
2012). They hire suitable candidates for marketing department by recruiting and selecting the
best person which will support in increasing productivity of the organisation.
Customer services: it is also another important element in which company take
responsibility to provide services even after sales. It will helpful in building positive goodwill or
brand image among audience's mind. IKEA company can achieve its goals or objectives in an
appropriate manner by providing better services to the customers. IKEA firm is focusing on
customer's demands or needs by developing marketing campaign and trends.
Administration: in this defined that, manager of IKEA firm made some policies and
procedures which must be followed by the every individual. Therefore, marketing manager
concentrate on implementing all those regulations or rules for creating and maintaining the
workplace and marketing department. Therefore, better rules and code of conducts musts be set
by the organisation which will effect on the sales volume.
TASK 2
P3 Comparison of two organisation in which apply the marketing mix to achieve business
objectives
In the every firm, there are applying marketing mix tools or techniques in the proper
planning process so that organisation can achieve goals or objectives. The business organisation
always focus on utilising different kinds of methods for the application in the company. In the
marketing mix elements included 4ps and 7ps which support in selling goods and services in the
market. Company can make appropriate strategies and plan for developing their business by
considering marketing mix tools (Forte, 2012). These are applying for making effective position
and capture the market so that they can beat with competitors in an appropriate manner. IKEA
firm always consider this for making better decision regarding strategies adoption so that they
can provide goods or services to satisfying customers and meet their desired needs or
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expectations. manager of IKEA organisation also focus on finding best way to promote its
product and services by using effective tools or techniques as well as promotional tools. In this,
marketers undertake various components such as product, price, place and promotions for
producing better quality of goods and deliver it to the customers (Fırat, 2013). Marketers conduct
research or survey process for analysing demand or trends by gathering date or information in an
appropriate manner. IKEA firm use marketing mix for creating innovative ideas and apply it in
the market as there are number of competition so it is very difficult to make position and attract
more customers towards company because competitors are adopting various strategies to capture
the market. It is necessary to undertake all these elements for making appropriate and effective
strategies and plans for IKEA firm so that they can achieve goals or objectives in efficiently.
Here are some comparison of IKEA and ALDI which use number of techniques and
strategies to create market awareness and promote the particular goods and services so that they
can achieve goals or objectives in effective manner. These are as follows:
Marketing mix
tools
IKEA ALDI
Product In this consider number of products
and services which provide by this
This firm is very popular as it is
retail chain store that serve various
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Illustration 1: Marketing mix 2017

firm in the market as it deals in
variety of products such as
furniture, baby care products, stages
of bathrooms, beds, chairs, mirrors,
cloths storage, decoration, cooking
items, desks and various safety
products for meeting customers
needs or wants and common goals.
goods or services in the market. It is
biggest competitor of IKEA
organisation and deals in several
items including fresh fruits,
vegetables, cloths, home appliances,
health and beauty products,
stationery and many more (Gertner,
2011). It serve these goods at
reasonable costs.
Price This firm adopted various pricing
strategies that can be effective for
every individual and also
concentrate on best pricing
strategies to attract number of
customers towards organisation. It
set price according competitors,
customers and cost of production of
goods and services. This firm is
beating with different competitors
as international and local
supermarket (Hamilton, 2011). They
focus on ideas and concept of lower
pricing strategies to satisfy
customers. It can be done through
proper control over the costs or
expenses. In this used competitors
based strategies and also consider
penetration for product and services.
ALDI firm is very famous so it is
using best and effective pricing
strategies for their products and
services in an appropriate manner.
This firm focus on selling its
products at cheapest costs through
adoption of pricing strategies. They
also consider the costs factors that
can arise during productions
process. In this, they are using
pricing strategies, market
penetrations, competitive pricing
psychological and cost leadership
for the purpose of generating
revenues and profits in an effective
manner.
Place It is defined as the place where
goods and services are delivering
ALDI firm is exist at several
countries as it has retail stores
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from one location to another. IKEA
firm consider the distribution
strategies for providing goods and
services to the potential customers
so that they follow effective and
efficient distribution network for
selling goods because it has stores
more than 50 countries (Joshi,
2012). It use vest transportation
facilities to cover that following
areas.
around 8000 so customers can reach
easily to get products and services to
satisfy their needs or wants in an
effective manner. This organisation
use the various strategies and
techniques for discovering the
targeted audiences so that their
needs and wants can be satisfied.
They also trying to expand business
at several countries.
Promotions IKEA use various tools and
techniques for promoting their
products and services in an
appropriate manner. It is focusing
on best method such as print media,
commercial ads, billboards,
electronics and magazines so that
they can create market awareness
among customers and increase sales.
This store also consider various
tools and techniques for creating
knowingness in the customers minds
regarding products and services in
an appropriate manner. It also
consider several methods such as
internet, TV, prints, billboards,
hoardings, print media and many
more for the purpose of providing
information regarding goods and
services.
People This store has better procedures for
serving best to the customers as they
are using effective strategies for
assigning duties and responsibilities
among employees so that they can
realise their roles and duties and
work hard for achieving success. It
is best method that to allocate work
In this follow several process for
handling customers issues and
provide better environment to the
customers (Khan, 2013). They care
about their employees and create
better culture which are based on
togetherness, enthusiasm as well as
fun within an organisation.
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and treat every person in an
appropriate manner.
Process It is an another important role in
which consider the production of
goods and services as IKEA follow
its own procedure in producing
around 44 production units at the
number of countries (Adil, 2013).
They focus on various areas in the
organisation such as creating clean
environment, unique products and
supply chain and inventory
management techniques for better
firm. These will support in
achieving set targets or objectives.
ALDI also focus on its procedures
in which it produce, promote and
deliver their goods and services to
he potential customers. In this, they
use reasonable costs so that people
can reach and buy company's
products and services in an
appropriate manner. It will be
support in making buying decisions
to the customers.
Physical evidence IKEA firm has around 350 retail
chain stores at different countries so
that they are focusing on providing
better experience about shopping to
the customers (Lamb and Hair,
2011). In this organisation, they use
arrow sign to provide instructions
and guidelines to the people who are
visiting this place. Apart from this,
it also has the areas such as baby
care handling, smoking zone,
parking areas and many more to
meet customers desired expectations
in an effective manner.
ALDI is a global retailer store where
they sell various products and
services in the market. It also has
various facilities and services such
as lift facility, baby handling areas,
trial rooms, wash rooms and canteen
for attracting customers towards
organisation and also satisfy their
needs and wants in an effective
manner.
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