Running Header: MARKETING MIX PAPER Marketing Mix Paper MKT/421-Marketing Marketing Mix Paper To develop a marketing research approach, a company will look to do a consumeranalysis, an industrial analysis, and develop a marketing mix that will best suit the organization
Marketing Mix Paper 2and the consumer. “In a consumer analysis, some areas to look at are demographics,psychographics, behaviors, and geographical consideration. In an industrial analysis, thecompany will do a competitor analysis,” (Perreault & McCarthy, 2004). Every organization hascountless ways to try meeting the need of his or her customers. There are so many variables; acompany needs to be able to organize them to simplify the selection for that organization’smarketing mix. All the variables are reduced down to four basic variables: product, place, price,and promotion. All other variables will be listed under these four variables. “All four Ps areneeded in the marketing mix, and in fact, should be tied together,” (Perreault & McCarthy,2004). This paper will discuss and describe the elements of the marketing mix. It will alsodescribe how each one of the four elements of the marketing mix impacts the development ofIKEA’s marketing and tactics. First of the four variables is the product. Developing the right product for the targetconsumer is the main area of concern for this variable. Some products can be tangible productsthat can be bought and sold. However, not all products are that of physical goods. Many productsthat are offered to the consumer are services. “Services can consist of completing someone’staxes, performing yard work and landscaping, and legal representation. The most important thingis that the product or service satisfies the customer’s needs,” (Perreault & McCarthy, 2004).“Some examples of the product decisions to be made are brand name, functionality, styling,quality, safety, packaging, repairs and support, warranty, accessories and services,” (NetMBA,2012). The next variable is the place. What good is a product to the consumer if it is notavailable when and where it is wanted and needed? Decisions involving getting the right product
Marketing Mix Paper 3to the targeted consumer are the area of concern of place. The product reaches the consumer by achannel of distribution. “A channel of distribution is any series of firms (or individuals) thatparticipate in the flow of products from producer to final user or consumer” (Perreault &McCarthy, 2004). A channel of distribution can be very short and simple or much more complex,involving different wholesalers and retailers (Perreault & McCarthy, 2004). “Some examples ofdistribution decisions include distribution channels, channel members, inventory management,warehousing, distribution centers, order processing, transportation, and reverse logistics,”(NetMBA, 2012). In addition to developing the right product and place, a company must also decide theright price. “When setting the price of the product, the marketing manager must consider manyvariables. Some of these variables include the price of the competition in the target market andthe cost of the entire marketing mix,” (Perreault & McCarthy, 2004). Another important factor ofpricing is the reaction of the consumer to the price. If the consumer does not accept the price,then all of the other components of the marketing mix are wasted (Perreault & McCarthy, 2004).“Some other examples of pricing decisions to be made are price flexibility, price discrimination,bundling, cash and early payment discounts, seasonal pricing, and suggested retail price,”(NetMBA, 2012). The last of the four marketing mix variables is promotion. Promotion is concerned withletting the target consumer know about the right product. Promotion can be focused on bothacquiring new customers and retaining current customers. “Promotion can include personal andmass selling, as well as sales promotion. A blend of all of these methods can help in themarketing success,” (Perreault & McCarthy, 2004). Personal selling involves direct
Marketing Mix Paper 4communication between the seller and the consumer. It can happen face to face or by phone andvideo conference. “Mass selling involves communicating with a large number of customers atthe same time. This can happen by utilizing forms of paid and unpaid publicity,” (Perreault &McCarthy, 2004). “Some examples of promotion decisions can include advertising, publicrelations and publicity, and sales promotions,” (NetMBA, 2012). IKEA is company that strongly exhibits all aspects of the marketing mix. There vision is“to create a better everyday life for the many people,” (IKEA, 2012). IKEA offers a wide varietyof quality home furnishing products at low prices so that as many people as possible will be ableto afford them. The IKEA brand is built on encouraging customers to experience the IKEAconcept. “The company’s image is contributed by what the company does, says and the productsthey offer at the price they are offered at,” (IKEA, 2012). The marketing mix is shownthroughout the IKEA business and culture. The IKEA product is what the company is all about. The company offers a wide array ofhome furnishing products for ever area of the home. Their products are offered in many differentstyles to give the consumer the opportunity to find exactly what they need. IKEA’s brands speakvolumes about the culture with each item having its own unique brand name with a Swedishflare. Packaging is also a big IKEA selling point; selling the majority of their productunassembled so the consumer can transport them all home without having to arrange and pay fordelivery. Place is also a big IKEA strategic strong point. Compared to other home furnishingretailers, IKEA has a smaller amount of well strategically place stores throughout the UnitedStates and the rest of the world. This leaves room for a lot of supply and demand. Consumers
Marketing Mix Paper 5flock from all over to visit IKEA locations and purchase large volumes of products. Since eachIKEA location is its own warehouse, customers can leave with their furniture or arrange forshort-term delivery. Each IKEA location also keeps a large amount of inventory in order to keepmerchandise available for the many customers that come to their locations. Price is also one of IKEA very strong qualities. It is actually their claim to fame. Becauseof how other variables in the marketing mix are addressed, IKEA is able to offer its products andservices and much lower list prices than its competitors. The company also offers manydiscounts and sales throughout the year to lower prices even more on some of their most popularitems. IKEA also offers different credit and financing options to allow more consumers access topurchasing IKEA products. IKEA has also bumped their promotions in the last few years. With the opening of manymore U.S. IKEA locations, the company has started a completely new national commercial adcampaign. The commercial ads were developed to appeal to the consumer that shows IKEA as ahip, fresh solution to any home furnishing need. The company also takes advantage of some freepublicity by donating time, service, products, and funds to various local causes. These types ofpromotion appeal to the local market and show that IKEA is a large integral part in thecommunity. IKEA utilizes all aspects of the marketing mix to help make it one of the leaders in itsindustry. Just like IKEA, all businesses that offer products and services rely on the marketingmix to develop the most successful marketing and tactical strategies possible. With the propermix of product, place, price and promotion, organizations can most effectively provide the rightconsumers right the right products at the right places and at the best prices.
Marketing Mix Paper 7IKEA. (2012, May 14). Products and materials. Retrieved from http://www.ikea.com/ms/en_GB/about_ikea/our_responsibility/products_and_materials/i ndex.htmlNetMBA. (2012, May 14). The marketing mix. Retrieved from http://www.netmba.com/marketing/mix/Perreault, William D., & McCarthy, E. Jerome. (2004). Basic marketing: A global-managerial approach. [University of Phoenix Custom Edition e-Text]. : The McGraw-Hill Companies. Retrieved from University of Phoenix, MKT421 website