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Functions of Marketing - IKEA

University: Regent College of London

  • Unit No: 9
  • Level: Undergraduate/College
  • Pages: 16
  • Words: 4000
  • Paper Type: Dissertation
  • Course Code:

    M/508/9860

  • Country: UK
  • Downloads: 0
Question :

This unit state that Marketing manager of IKEA has to perform a detailed research of marketing activities. It consists of functions such as use of online websites, journals, textbooks and other sources which can provide Information.

  • Analyze the marketing role and interrelationship between marketing and other functional departments of IKEA.
  • Compare the different marketing mix strategies to achieve objectives of IKEA.
  • Evaluate the positive and negative impact of external environment on functioning of IKEA.
Answer :
Organization Selected : IKEA

INTRODUCTION

Activities related with marketing are essential for the organisation so as to enable him in maintaining an effective communication and exercise good human relation with consumers. To adopt long term share in marketing there is need to exercise various approaches by the management of the company, exercising various approaches will help them in having a good market share in relation to their product. Marketing is so much necessary nowadays that consumer only come to know about the description and extra features only through marketing, even sales and profit to an extent depends on marketing. With the help of marketing organisation can achieve the targets of company beyond the reality (Business Essentials Information Session, 2017). Marketing activities of the company are performed by the department which is specially dedicated to the marketing field itself. In marketing function many types of activities are included but the main activities are development of product, making a channel for distribution of the product, adopting best means and methods to decide the price of the product etc. IKEA is known for selling different kind of products internationally. It is established in 1943 and serves its products as well as services in various countries. This organisation is well known for selling appliances related with kitchen home décor items and furniture. It is termed as one of the biggest retailer in furniture segment. This report will help in knowing different types of functions of marketing and interrelation of this function with the division of the organisation. It also exercises a relation between same industry and helps in comparison so as the employee are able to achieve the objectives in a good manner.

TASK 1

P1. Roles and responsibilities of marketing department

Overview of IKEA

In 1943 an organisation was founded in Sweden this is known as IKEA. They run their business within the boundaries of the country. With the objective set and clear they also have the required workforce to cope up with the desired objectives. They sell their products as well as design them too. Home appliances, kitchen accessories and furniture are some of the items in which they deal. Coming to the year2008 they are getting known as the organisation who is the largest furniture retailer across the globe (Hoványi, 2013). Due to innovativeness in work they are able to earn huge profit from their sales, moreover their products are also environment friendly which was icing on the cake.as per data revealed by the company they have earned almost 35.074 billion in the year2016, beside profits they are also having assets worth around 53.967 billion. Management of IKEA ltd is continuously making efforts to reduce their costs, making products that are of good quality and those products also suits the needs of their customers. This feature of their products will help the management in expanding their business internationally and making their processes standardised.

Marketing

According to the American Marketing Association, Marketing is identify as a set of activity, institutions and activity for communicating, creating, exchanging and delivering offering that have value for partners, clients, customers and society at large. Marketing may be defined as a function which is performed by the marketing department so as to make sure that product of the organisation reaches its destination that is final consumer. It analyses all the previous trends and the conditions prevailing in the market which will help the organisation in making a new product with the features that a consumer wants to be in a product (Aaboud and et. al., 2017). During this analysis organisation is also able to determine the competitors and their strategies relating to marketing of their product. It will help them to an extent that at some point of time they will be able to totally outclassing the competitors from the market. Marketing may be said as combination of 4 P’s which are Product, Price, Place and Promotion.

Further discussion of 4P’s are as under: -

Developing a product which fulfils the needs of the customers and also follows the trends which are prevailing in the market

Selecting that price for the product which will induce the buyer to buy the products of the organisation

Selecting the distribution channel which will ensure smooth as well as timely delivery of their products in various nations

Promoting its product in such a way that customers in the market are aware of their offerings as well as the product lines which is currently being offered by the organisation

Marketing deals with an important aspect that is promoting existing as well as upcoming products of the organisation. Marketing is the medium through which IKEA will increase their market share and will improve its customer base (Harris, Schwartz and Brownell, 2010). Marketing may be done by using the old methods or it can be affected by exercising the new methods which are currently prevailing in the market Modern approach of marketing will best suit the conditions which are currently prevailing in the market. Under the new method digital marketing is used to promote the products of the market. Social media is a great example of modern era marketing this medium, has vast reach to the audience as well as it is also considered as a cost saving medium, by using this medium organisation can easily redress the problem of their consumers instantly providing a chance to create the feeling of trust as well as generating the loyalty for the organisation (Aad and et. al., 2012).

Functions of marketing department

Marketing department preforms many functions so as to achieve the desired goals within the specified time. Some of the functions are described as below:-

Product: These are the items which are offered by the organisation to the market. Regarding product marketing department have some responsibilities and one of the responsibilities is that providing the distinct products to the consumers which have distinct features as well as enhanced quality. To fulfil this responsibility there is a need to identify the trends, strategies as well as technologies prevailing in the market; this analysis will help the IKEA in getting new ideas as well as technology for their products. IKEA mainly deals in Kitchen appliances, Home accessories and Furniture (Dioko, 2016).

Selling: When the product offering is done then important tasks wait for the marketing department, this is selling the products in market so as to achieve the profits and running the business of the organisation regularly. To sell more and more products of IKEA the managers must assess different types of distribution channels so that their product can cope up with the demand which is prevailing in the market. Apart from distribution channel there is a need to advertise the products among different platforms so that it can better its previous sales and can maintain its largest retailer tag.

Pricing: Apart from the above 2 functions pricing is the function which can increase or reduce the sales as well as profits of the organisation. It is the duty of the marketing manager of IKEA to decide such price which is decided keeping in view the competitors price as well as the buyer’s capacity to purchase such product at such price. It will help them in obtaining a better position in the market. Pricing must be done in a way that consumer of IKEA can afford the product of the organisation (Jain, Ahuja and Medury,2013.).

Promotion: THIS includes advertising the product on different platforms. Promotion is only done so as to make aware the consumers about the offerings of the organisation as well as their features, this will help them in lasting longer in the minds of the customers. Promotion can be done through using newspapers, social media, FM, Television etc. but among these mediums social media is considered as best medium because it has wide reach as well as it is cost saver too.

Financing: Everyone in this world to run an organisation needs funds to fulfil their objectives. It is the duty of marketing manager to prepare a budget so that amount needed for better performance can be ascertained and also instructing the employees of the organisation to follow the budget while performing their duties. This will help them in reducing wastages in the working of the employees. Funds are essential requirement to carry out different functions. It is the duty of the marketing manager is to assess the need of amount which is required for effective performance of their functions and prepare budget which guides the employees is to follow such budget while give their functions (Cua, Reames and Chai, 2013).

Distribution: apart from the above mentioned functions there is also a need to identify the supplier who will supply the product of the organisation to different stores. As IKEA deals internationally there is a need to identify a best supplier so as to make available its product in the market. If supply will be regular then it will be able to respond to the customer satisfaction regularly.

P2 Roles and responsibilities of marketing relate to organisational context

Marketing is one of the important function which assist the other department of organisation is to perform their function which effectiveness. It helps to bring coordination in different departmental activities which reduce the chance of mistakes and duplication of efforts. The interrelationship of the marketing department with others is understood with the help of points which are defined below:

Role of marketing in Operational department: As we know IKEA is an organisation which on its own design its products also therefore the marketing department should conduct research on the available designs and selecting the designs which are trending in the market. This research will help the operational department to bring the necessary changes in the old obsolete designs and adopting those designs which are trending in the market. Similarly, research is also done on the technology prevailing in the market so that changes can be handled more easily by the organisation.

Role of marketing in Human resource department: The role which HR department can play in marketing is appointing such candidates which are skilful as well as are having knowledge to cope up with the demands of the manufactured products. Marketing department by making a schedule help the organisation in finding the differences in the performance of the employees and to suggest sound concerning of the problem. They also have to design training programmes for employees so that employees remain up to date from the new techniques and this can lead to more innovativeness in products of IKEA.

Role of marketing in Finance department: The finance department of IKEA perform functions so as to cope up with the liquidity function of the organisation. With regard to marketing department they have to prepare a budget to allocate funds in such a manner that they will be able to achieve efficiency in the working level (Cohen and et. al., 2010). This budget will play a role in completing the desired objective in decided amount. By completing the desired targets as decided the profit of IKEA can be increased because of reduction in the unwanted costs in completion of a product. Also saving here will enable marketing department in spending more on marketing with new methods so that it is able to attract the customers as well as outclassing its competitors ultimately making its position better and reaching at that level where competing with IKEA will be more difficult for the competitors.

TASK 2

P3 Various organisations apply marketing mix to the marketing planning

As per the point of view of Chand, (2018) The process of distribution or marketing of products needs specific attention of administration because production and manufacture has no relevance unless goods are sold. 7P's of marketing mix is identify as an effective process of integrating and designing different components of marketing in this form to see the accomplishment of company objectives and goals. This is a very useful function for managing market that is established by marketers themselves. These is a sector that is needed by the manager of marketing to for having good decision which is advantageous for the company and very attractive toward consumer. This is very useful technique of marketing in concern to get response from the market. The marketing composition inclusive of 5(P) it means product, place, price, promotion and promoter. Marketing is completed by only mix of these five things. There is huge competition between IKEA and WALMART company.

Marketing mix of IKEA Firm

Product-

in the beginning the firm has to decide what product should be produce an which product has more preference for consumption. The firm is required to organise a survey to know about the demand of customer in the market and which product can be substitute with the original product along with its cost and margin. The product should be selected that is more beneficial for the firm provide quality product to the consumer.

Price

the firm has to decide on what price its product should and service should be sold out in the market (Clow and James, 2013). The firm has large number of competitors in market on global level it has to sell its product at affordable price so that consumer use the product and service and increase in the consumer of product and service. Price should be determining by taking all important factor in consideration as substitute product price market for new products and etc.

Place

IKEA firm has a great place to operate its business through online sites and reach local markets. The firm has 25 branches around the world and operated into more than 50 countries in all over the world and also has a great chain of customer for product as well as services of firm.

Promotion

the main objective of the firm is adopting more beneficial methods for marketing function with the help of promotional activities like advertising, add in magazine, adds in theatres, or on business documentary, radio or by yellow paper to promote its product and increase in number of consumer in global level. It also provide various type of fringe benefits like, cash rebate, vouchers and get one buy one and etc. By providing these benefits it is very advantageous for the company to stand in international market.

People

The EKEA company has a huge brand image just because of fulfilling the need of its consumers and having great connection with its customer. In concern with the employers are directly connected with the people (Chamorro-Mera, Miranda and Rubio, 2014). The firm deals with its customer in very good way that the consumer respond towards its product and services and let people know about the product and services of the company.

Process

the IKEA firm’s procedure for sell its product is big showrooms and supermarkets. The customer can choice its product for purchase and adopt option for paying like debit, credit cards and paytm and cheque along with home delivery of furniture.

Physical evidence

- physical evidence is refer as tangible and physical presence evident of product its design and performance of services for these products. The firm has various branches in many countries along particular presence of products in distribution canter.

Marketing mix of Walmart

Product

the walmart company has huge brand image for various product and services in international market level and has big department store in connection to provide services along with providing various kind of products. On the other hand each departmental store has various kind of product mix.

Price

the essential factor for walmart company is to create a vision of providing its product and services at a lower cost. The product and services of the walmart company is affordable by the consumer of these goods and services. The company get reduce its cost of products to provide more goods to the large number of consumer in the wide range. The company take many decisions regarding pricing policy to improve its relationship with customers (Caporaso,and et. al., 2010).

Place

In many countries the walmart company conduct its business the company has its business operation in various countries and have approx. 10999 stores in all over the world and also have stores in approx 14999 and many distribution canters. The company provide its product in small town to big cities of country and the company has many kinds of various type products and services in the store. Company is expanding its business distribution branches by day by day and gets more profitability.

Promotion

Walmart organization has promote its product and services through the internet explorer system to gain more income and promote its activity by various kind of tools like giving adds on television, radio, print media. Business documentary and effectively sell its products and services to customer. The company promotion also includes some benefits to customer to increase its turnover ratio.

People

Walmart company run its company through many canters spread over the world and has consideration to give satisfaction to its customer by make available its product anytime on a reasonable price for the consumer of the products and also providing discount and vouchers to its customer to increase in chain of consumer. The walmart company has a great brand image through its customers in all over the word and the chain of consumer is increasing day by day of this company (Banerjee, 2013).

Process

The walmart company’s branches spread out all over the branches and having same selling procedures for selling its product by systematic way to customer of its products and services. The company provide its product by way of supermarkets, showrooms departmental stores and also provide various mode of payment for goods and services at a very affordable price.

Physical evidence-

The physical evidence of this firm is very large the WALMMART company has approx 10999 branches in around the global level and provide goods and services from these stores to international markets. Along with this the company has great product and various type of product in every canter and provide good quality product atmosphere.

TASK 3

P4 Basic marketing plan

Marketing plans explain as the scope of marketing factors which are objectivity, targets, strategies, and decisions and determinations also the another factors. Along with these factor marketing plan is very useful for the manager of marketing department of the IKEA company. In this plan the useful tool is 7p of marketing mix with concern introduce innovative planning about the policies and structure of the company. On the other hand, the advance technology for more productivity to increase the total turnover throughout the year. The firm also provide quality product and services to the consumer of the product through a proper technique.

History of the IKEA firm

The IKEA firm is very big industry whose products and services are distributed in international market having a huge brand image (Baines, Fill and Page, 2013). The company’s production are readymade furniture, home decor, kitchen wears at a very reasonable price and sell to consumers by online sites and via traditional markets. It is biggest furniture brand from 2008. And also has 25 branches and established in approx. 50 countries in global market. The firm is famous for providing fashionable and luxurious furniture and home designing product at very cheaper amount and increasing its business.

Strategy

The strategy of the IKEA firm is to improving its product quality every day for all consumers.

Target

Target of the firm is to enhance its business growth and also increasing its market in all over the world also in various market.

Goals

The following are various goals of the EKEA firm which are described as:-

Giving more rebates and vouchers also fringe benefits.

Enhance the productivity for every year approx the last year production.

Providing more eco-friendly products to the consumers.

Establishing more branches in global level.

SWOT analysis of IKEAS

Marketing mix of IKEA

Product

- IKEA firm is biggest multinational company providing quality products along with the services at reasonable price in all over world to its customer in global that is furniture, interior decor, kitchen appliance etc.

Price

- IKEA provides its product in wide range in all over the word and having large chain of consumers around the global due to this the firm provides product at a possible lower cost that is affordable by the customers of the product and services.

Place

the IKEA is very large multinational company running its business in big countries of world and sells its product in these countries the business of IKEA is identify with the retailer of the kitchen accessories and home appliance, home decor. All the distribution canters are out of the range of cities.

Promotion

- promotion of products and services is very essential for the organization to tell about the product and services to the people for selling. The IKEA company promote its product in very systematic manner. The IKEA promotes its product and services by sponsoring, print media, adds in theatres, radio and magazine, yellow papers and hording.

Scope, objectivity and conversion of IKEA

-

Scope of IKEA is to increase its production product and spreader its business in all over country and making competitive in competition with the standard of various multinational companies (Aad and et. al., 2012).

IKEA firm is objected the productivity by using various tool and technique for marketing to live up according to the need of consumer by providing valuable products and services.

This firm is converted its business into production bases for making better valuable stand in the marketing.

Vision for marketing

In concern to attain the goals and aim of the firm in prescribed time due to this it very essential for the company to make and regulate a proper vision for the marketing of its product and service of the IKEA company in appropriate manner

.

The marketing strategies are very important for the management for smoothly running their business.

Execution

The company has to use all the steps in a appropriate way due to its importance for the completion of the calculation. From this it is easy to make proper and good decision for company as well as regulating policies in a appropriate way to achieve targeted objective and goals by the company. It is also necessary for giving profit to company and increasing in the business productivity as well as the turnover of firm’s product and services.

Analysis

It identify with the better solution for the cost, price and investment also including profit. In this analysis inclusion of determination of all the performance in proper way. Various type of formula foe analysis is describing in following:

Turnover determination- it is determination of total turnover throughout the year of the firm for the various type of products and services like, furniture, material of food and etc.

Market-Share determination- it is the determination of market share of company either it is huge or small in the market (Aaboud and et. al., 2017).

Efficiency Ratios- efficiency ratio analysis about the efficiency of the firm for its activity by using asset turnover ratio less turnover and then divided by net asset.

Cost-Profit determination-. It’s all about the price of product and cost plus margin of product for earning more profit by the company.

CONCLUSION

From the above given project report, it can be summarised that function of marketing is from one of the most important function of every organisation and that’s why it is very essential that it should be perform in effective manner. With this, company can attract more number of customers towards its offering and can generate more revenues. One of the main factor that require to consider by marketing manager while assign roles and responsibilities to employees is that different functions of an organisation are interrelated with each other this affect the performance of company in market. Further, it is very important that all components of marketing mix should be well applied so company can satisfy the needs of its customers and at the same time can generate more revenues. In addition to this, all relevant aspect should be evaluate by marketing manager to develop an effective marketing plan for organisation.

suggested sample: International Marketing Management, Role of manager 

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