Table of Contents
Task 1: Process of marketing.
1.1 Elements of the marketing process for IKEA.
1.2 The costs and benefits of the marketing orientation for IKEA.
Task 2: Segmenting, Targeting and Positioning.
2.1 Macro and Microenvironmental factors.
2.2 Applying targeting strategies to find an appropriate solution.
2.3 Segmentation Criteria for IKEA products in different markets.
2.34Targeting strategy for IKEA’S estate agency cleaning service.
Buyer behavior impact on IKEA’s marketing activities in different buying situations.
2.5 Different product strategies used by IKEA’s competitors.
2.6 New positioning strategy.
Task 3: Marketing Mix.
3.1 Developing a new product and sustaining its competitive advantage.
3.4 The extended marketing mix.
Task 4: Marketing Mix in a different context
4.1 Marketing mix for two different segments of IKEA.
The psychographic segment marketing mix.
The geographical segment marketing mix.
4.2 Differences in marketing products and services to businesses and consumers.
4.3 Differences in international and domestic marketing of IKEA.
4.3 Limitations of the recommended marketing mix.
4.4 Planning for managing and organizing the work.
Justification of plan.
This paper aims at discussing the main elements of marketing principles. Moreover, it presents a real-life scenario of IKEA, a leading furniture company in the UK. In light of this, the company has been used as a reference point for discussing marketing principles. In a nutshell, the main objectives of this paper are as follows;
Task 1: Process of marketing
1.1 Elements of the marketing process for IKEA
IKEA’s marketing process like any other company consists of the following elements; situational analysis, planning, implementation and control (Armstrong, Kotler, Saunders& Wong, 2008) as illustrated in the table below.
|Elements of the marketing process||What it entails|
|Situational analysis||A marketing audit that involves obtaining information from the marketing mix.
An analysis of the marketing environment i.e. the external and internal marketing environment.
A PESTLE and SWOT analysis.
|Planning||Formulating the mission of the company, corporate and marketing goals and objectives.
Setting marketing strategies to achieve the set objectives
Planning the marketing mix
|Implementation||Putting into effect the marketing strategies which ultimately lead to achieving the set marketing objectives.|
|Control||Analyzing and evaluating the outcome of the entire marketing process and providing measures to gauge performance and contingency plans.
Rectifying the deficiencies of an unsuccessful marketing process
Our Recommended Resources:
1.2 The costs and benefits of the marketing orientation for IKEA
The marketing concept holds that the key to a successful and profitable organization lies in identifying and anticipating the needs and wants of customers and producing products that will satisfy them. In addition, developing superior products compared to their competitors (Kotler, 1980). The costs and benefits of the marketing orientation for IKEA are illustrated below.
|Extensive costs are likely to be incurred when researching the market in search of customer needs and preferences. In addition, production costs can also take a toll on the company.||IKEA will be able to correctly identify feasible segments that make the company’s marketing effort more efficient and economical.|
|IKEA may be required to train its salespeople a fresh which is costly in terms of time and money.||Sustainable customer relationships because IKEA will provide as per the market’s needs and wants as a result, the company will gain the customer’s loyalty.|
|The employees may be reluctant in accepting the marketing concept since it is a paradigm shift from what they are accustomed to.||Fostering teamwork among the company’s different departments because the marketing concept requires a team effort from saying the R and D department, the quality, marketing, production departments to produce a wholesome product for the market.|
|The marketing orientation is not ideal for IKEA if it is seeking immediate sales and profits.||The company will be profitable in the long term as a result of customer satisfaction which leads to goodwill from the customers who may spread the good word about IKEA hence increasing its customer base.|
|The markets are subject to new entrants hence IKEA will have to invest heavily in promotion and distribution costs to sustain its competitive advantage.||IKEA will stand out as a competitor to reckon with.|
Task 2: Segmenting, Targeting, and Positioning
2.1 Macro and Micro environmental factors
Macro environmental factors are those external forces that an organization has little or no control over and they directly or indirectly affect the organization’s marketing decisions. On the other hand, microenvironmental factors are those that are within the organization’s task environment; those that it has control over and directly affect its marketing decisions (Palmer & Worthington, 1992). IKEA like any company has macro and micro environmental factors that influence its marketing decisions. These factors are illustrated below.
|Macro Environmental Factors||Micro Environmental Factors|
|Demographic factors||The size and growth rate of the population is important to IKEA when selecting and targeting and marketing to segments.||Company||IKEA’s departments; R and D, manufacturing, purchasing, and accounting work together to arrive at comprehensive marketing decisions.|
|Economic factors||This relates to the state of the economy; economic patterns such as a recession would affect IKEA’s marketing decisions. Other factors such as the market’s income levels and spending patterns are factors that IKEA needs to be aware of before formulating marketing strategies.||Competitors||The company’s competitors pose threats and opportunities that influence its marketing decisions. IKEA’s competitors include; Ilva and ASDA|
|Political factors||These consist of laws, the government and advocacy groups; human rights activists. The current legislative frameworks are bound to influence IKEA’s marketing decisions, for instance, laws set on standardizing prices will influence how the company sets its prices.||Customers||Their wants and needs influence IKEA’s marketing mix decisions and marketing strategies.|
|Technological factors||Technological changes pose opportunities and threats for IKEA which means that it needs to be aware of them as they influence marketing decisions especially the marketing mix.||Suppliers||IKEA should invest in suppliers who are efficient and available because they ultimately influence when production starts.|
|Environmental factors||These relate to the natural resources that are needed by IKEA as inputs. If for instance there is a shortage of raw materials the company will be prompted to make an adjustment in its marketing decisions to ensure that the needs of the market are met.||Distributors||The type, length, and complexity of the distribution channel determine when, where and how the consumers access IKEA’s products and services.|
|Socio-cultural factors||The market’s norms, sets of beliefs, basic values, perceptions and social forces influence the type of products produced by IKEA.||Publics||These are groups that have potential interests in IKEA and impact its ability to achieve its objectives.|
2.2 Applying targeting strategies to find an appropriate solution
This section requires identifying a problem that can be solved by applying targeting strategies. Targeting involves deciding on the segment to aim at (Moehlman, 2010). IKEA may face a predicament of targeting a segment that matches its objectives and resources. This problem can be solved by selecting suitable targeting strategies, in this case, concentrated marketing and selective specialization.
2.3 Segmentation Criteria for IKEA products in different markets
Market segmentation involves identifying subsets of buyers within a market who share similar wants and needs and display similar buying patterns (Frank, Massey & Wind, 1972). There four bases for segmenting markets namely; geographic, demographic, psychographic, and behavioral segmentation. In light of this IKEA can use these bases to segment its various products that include; domestic cleaning, one-off and spring cleaning, end of tenancy cleaning, after builders cleaning, after party cleaning, carpet cleaning, upholstery cleaning, office cleaning, estate agency and industrial cleaning as illustrated below…………..
For Full Documents Click Download Button