Marketing planning Essay
Main characteristics of marketing oriented organisation
The marketing is a management and customer satisfaction strategy which is focused on the customer satisfaction and it is also involved in various functions like advertisement, promotion, selling products and services of the business, product planning, and product development, market research and market analysis. According to Keller, (2009) Marketing can be described as the marketing can be described as the management process which is responsible for identification, anticipation and satisfaction of customers of the organization for developing improved profitability of the business.
According to the Philip (2009) the marketing can be described as the process of managing profitable customer relationship through retaining retain existing customers of the organization and attracting new customers through developing value for the customers and satisfying their needs through developing products and services needed by them. Types of organizations:
According to marketing point of view there are two types of the organizations, market oriented and product oriented organizations (B&C, 2010). Product Oriented organizations: The focus of the product oriented organisations is on the development of product and selling these products through the different approaches of marketing. Characteristics of marketing oriented organisation: the market oriented companies are focused towards the satisfaction of needs and demands of the customers through analysing customer needs and then developing products and services to satisfy these needs.
The customer needs are identified by these organizations and then the resources are allocated to meet these needs (Mangold, Faulds, 2009). The market oriented companies have four main features or characteristics which are given below, Shared Values: the customers are always kept as priority by these types of the organizations and the value is shared with customers by providing them quality products and services. Organizational Structure: the flat type of organizational structure is developed and preferred by these companies as compared to the traditional business structures.
The clear vision is developed and communicated by these organizations for motivation of stakeholders including customers. Strategy: the overall business strategy forms the basis of the marketing strategies and planning of the market oriented companies. The basic goal of the market strategies is to achieve the overall business goals and objectives of the organization. The more flexible strategies are developed by these organizations to respond to changing business environment (Mangold, Faulds, 2009). Stakeholders:
The ideas and values are exchanged by the organization with different stakeholders of the organization to develop relationship with the business. From the analysis given it can be concluded that Ikea is a market oriented company as it has incorporated the core characteristics of the market oriented companies (Menon, 2008). Explain the various elements of the marketing concept with reference to the Ikea’s marketing activities. The Ikea has implemented various elements and the concepts which can be analysed as 5 Cs and 4 Ps of the marketing and they are given as below, 5 Cs of Marketing
Company: the company described as the vision, mission, purpose and core values of the company which motivates stakeholders of the business (Menon, 2008). Customer: the customers are segmented into profitable components of the business. Collaborators: These are the stakeholders of the company who include investors, employees, customers, competitors, community and Government. Competitors: This includes analysis of the core competitors of the business, their market position, strengths and weaknesses.
Context: Context refers to the analysis of the present and future prospects of the organization in the long turn and this is analysed through the internal and external business environment of the organization. 4Ps of marketing are:
The four Ps of the marketing are essential and basic element for the development of effective marketing strategies of the business and these can be described as below, Product: the product is the development of the product or services based on the customer needs developed to satisfy needs of the customers (Menon, 2008).
Promotion: this include determination of how the product will be marketed and promoted to attain greater market share and growth, through different promotional techniques like TV ads, online marketing or sales promotion (Newman, 2002). Price: One of the important elements of the marketing is the determination of price on which the product will be offered to customers. Place: The place is the identification and planning how the product will be placed in the market, through physical stores or the other elements. Identify and critically assess the benefits and costs of marketing approach for Ikea.
The marketing approach adopted by the Ikea has different benefits for the business. Ikea has successfully developed business of the organization in UK and Europe and segmented the business of the organization to the office and home furniture users. The business has developed the marketing strategies to develop and promote business products of the organization for satisfying customer needs through delivering quality products to the customers.
The business has developed strategies for effective customer care as a part of the marketing strategies which is the part of benefits of marketing approach. The long term relations with the customers are developed by the business through effective customer relationship and developing trust in products of the organization. the costs of the ineffective marketing can lead to the failure of the product being offered or less effective response from the customers (Newman, 2002). Task 1.2
A) Identify and explain macro and micro environmental factors which influence marketing decisions of Ikea The business strategies of Ikea are affected by the various internal and external factors of the organization. These factors can be described as the macro-environmental factors and micro-environmental factors. The micro environmental factors of the Ikea are described as below, Micro-environmental Factors: these factors include various factors which have direct impact on the business strategies of the Ikea and it also impact on the business planning and strategies.
The Micro factors impacting the Ikea are given below, Customers: the survival of the Ikea is based on the identification and meeting needs, wants and providing the benefits of their customers. the failure to meet the needs of the customers can lead to the failure of the business as the satisfied customers are most important for the business (Newman, 2002). Employees: the employees are considered as the most important assets of the business and the satisfaction and development of effective workforce of the business is the most important element for the successful business.
Suppliers: the increase in the prices of raw material and change in the quality of the raw material has direct impact on the marketing mix of the business. The good relationship with the suppliers helps business to develop effective quality of the products offered by Ikea. Shareholders: the expectations and relationship of stakeholders of the business has positive and negative impacts on the strategies of the business.
Media: the innovations and changes in the media can be analysed and the successful adoption of these changes and innovations can positively impact the organizational communication and marketing strategies. Competitors: the name of the game in marketing is differentiation. The business can be successful through developing competitive advantage as compared to its competitors through developing core competencies of the business. Macro-environmental Factors:
The macro environmental factors are which are beyond the control of the Ikea and these can be opportunities of threats to the business strategies of Ikea. There are following macro-environmental factors effecting marketing and business strategies of the Ikea and these can be analysed through PESTEL analysis: Political factors: the political factors include the rules and regulations of the UK government, which can be minimum wage, or the interest rate regulations.
Economic factors: Economic factors include the inflation rates, or the interest rates which can impact the consumption parents of the customers effecting sales of the organization. Social: the UK is highly diversified with the multilingual and multinational people from all over the world. The trends in the social preferences of the customers can impact the business strategies of Ikea. Technology: there are various technological implementations in the market and these are more frequent in the UK market. B) With your understanding of the topic on Segmentation, propose segmentation criteria that the organisation can use for two products in different markets.
The market segmentation is one of the basic elements for the development of the products of the business in the market and the segmentation refer to the identification of the customers with the similar needs and preferences based on the analysis of the customer needs and buying behaviours. The aim of the segmentation is to develop the groups with the same needs and buying behaviours. For example the sofa set for the home users and the business users will be demanded with different needs for the same product for the different market segments.
The needs of the home users will be different as compared to the business users and this will also impact the buying behaviours if the customers as well. C) Sketch out those factors that influence the choice of targeting strategy by the organisation with reference to the financial capability of sponsors Targeting strategy:
The targeting strategy is based on the analysis of the target groups based on the market segmentation and then the process and approaches of targeting potential customer segments is developed by the organization to develop market share of the product to be launched by business. The targeting strategy of the Ikea involve various steps which include the development and identification of the effective segment market, choosing appropriate segment for the product and then analysing the product to be offered in a particular market segment.
The Ikea has developed the target marketing strategy for developing and offering various products for the different segments instead of the generic marketing. Importance of financial capability of Sponsor:
One of the important factors affecting the business is the financial capability of the sponsor. The finances are the lifeblood of the business and for all business and marketing strategies the financial resources are considered as the important element to remain competitive in the business.
for the success of the business good target market strategy and the financial sponsor ship is essential as these play as the backbone of the business to be more competitive in dynamic changing business environment. D) How does buyers behaviour affects marketing activities in two different buying situations putting into consideration The behaviour of the customers towards the product refer to the process of selecting, purchasing and consuming the product by the customers to attain satisfaction. And analysis of these abhors is essential for the business to develop effective strategies and products.
There are various factors affecting the buying behaviours of the customers and these can be explained as given below, Cultural factors: the most important elements of the customer buying behaviour is the cultural factors as the buying behaviour of the customers is highly effected by the culture of the customers.
For example the McDonald was failed in India when they introduced beef burger and the organization faced huge losses. Social Factors: the social factors contain the reference groups like the role, status and family. Personal factors: the personal factors include the analysis of the age, occupation, income levels, life styles and the economic status of the customers. Psychological factor: these are also very important factors affecting the buying behaviours of the customers.
These factors affect the buying behaviours of the customers of the Ikea in different ways which can be in favour of the business and these can go against the organization. the increased income and life standard of the customers may lead to increased sales level of the products of the organization same the families will be buying more products of the business as compared to the single. Task 1.3: A) Describe how products are developed By Ikea
There are different steps are involved in the product development strategy of the Ikea for the product development in the market to attain sustainable growth in the business. There are following steps performed by Ikea for the effective product development by the organization, Idea generation: the product development strategy if Ikea starts with the idea generation in which the idea regarding the new product is developed and shared, these ideas can be internal or the external.
The internal ideas are the innovation by the organization while the external ideas can include the development of product as a result of competitor’s idea. Idea screening: the next step is idea screening which includes the analysis of the market acceptability, impact on satisfaction of the customers, analysis of the demand of the customers and then the approval of the idea based on the rate of success of the given idea.
Concept development and Testing: after approval of the idea in screening the next step is to execute the idea into concept and the feasibility of product development is identified in this section, which through the analysis of the skills, abilities and sources required developing the required product. Concept development and Testing: the next step is the execution of the idea into product and then the features and quality of the product is tested and analysed.
The target markets and customers are identified for the given product. Marketing: after development of the product the next important step is to communicate the product in market through using different marketing strategies and marketing tools and techniques. This is analysed through the test marketing. Commercialization: the final step is the commercialization of the developed product to attain sustainable growth and success for the Ikea. B) Distribution Management:
The distribution management refer to the process involved from the attaining
raw material to the selling and delivering product to customers. The distribution includes the packaging, inventory, supply chain and logistics. The distribution strategies involve how the product will be developed and distributed to the end users in a more efficient way.
There are two mediums used by the organizations for the distribution of the products and services of the organization to the final consumer, which include wholesaler and retailers. The Ikea is distributing its products by using wholesale medium of distribution. Wholesale market involves the selling goods and services of the organization direct to the buyers and for this purpose the Ikea has developed its stores in UK and Europe.
This leads to the development and distribution of the product at flexible and low price. C) How are prices set to reflect an organisation’s objectives and marketing conditions? The pricing strategies include the identification of the pricing objectives, and then development of the pricing strategies based on these objectives, there are various pricing objectives of Ikea for determination of the price of products to be offered in the market, Financial Objectives;
The financial objectives include,
Maximizing sales revenue
Improving cash flows of the business
Maintaining and growing market share
D) Show an illustration of how the organisation (Ikea) integrates its promotional activities to achieve its marketing objectives. In recent years, many newspapers and television channels lost their audience, since traditional print and broadcast media as main promotional tools have faced major challenges (Gurevich et al., 2009).
Research by Forrester Jennings conducted in 2007 shows that audiences and attention are shifting to online channels, as 52% of Europeans are regularly online at home. Around 36% of European Internet users watch less television, 28% have reduced their newspaper and magazine reading and 17% have decreased listening to the radio since going online (Palmer and Koenig-Lewis, 2009).
Taking into consideration the above facts, we can say that the information revolution (Internet, mobile and social media) is significantly changing traditional marketing campaigns, which can be adjusted to those new technologies. The significance of social media is shown by a recent study which was pointed out that an overwhelming 88% majority of marketers are now using some form of social media to market their business1.
The same study, which set out to understand how and why marketers are using social media to grow and to promote their businesses, found that Facebook, Twitter, LinkedIn, and blogs are the top four social media tools used by marketers1. Palmer and Koenig-Lewis (2009) define social media as an “online applications, platforms, and media which aim to facilitate interactions, collaborations and the sharing of content” (p.165).
They further point out that the importance of social network media lays in the interaction between the consumers and the community, as well as in the facilitation of “asynchronous, immediate, interactive, low-cost communications” (Ibid.). One of the major examples of social media usage by companies is Victoria’s Secret’s Facebook page with its more than two million followers. On this page, followers can view videos, photos, take quizzes and print coupons2. In politics, the most significant example of social media use is the United States‟ presidential election in 2008.
The Barack Obama campaign used such online promotional tools as Facebook, YouTube, Twitter and others3. For the past two years, Facebook has overwhelmingly been pro-Obama virtual territory. Some have attributed Obama’s victory to a “Facebook effect”3. The Ikea has used the social media strategy for the integration of the marketing strategies with the product orientation and the promotional strategies of the business. Task 2: A) Attempt a suggestion of marketing mixes for two dissimilar segments in consumer markets.
For the specialised market entry the company offering products in the consumer markets should develop and focus on the market segmentation and it should develop market segment. The marketing mix is developed by the business after the market segments for the development of the effective market share of the business.
For example, a new brand in soft drink “Nix Cola” can be launched in specific consumer market like 99p or pound land as a established retailer. Once it gets success then it can be launch in different segments and restaurant and coffee shop. It would benefit the organisation from huge marketing costs and will enhance its brand penetration in the market. C) Critically explain how and why international marketing differs from domestic marketing with reference to Ikea International marketing involves the satisfying the needs and demands of the global customers.
Organisations should consider the values, customs, languages and currencies before doing the international marketing. For example advertising in Nepal and China should use in local languages. The potential market size, degree and type of competition, price, promotional differences, product differences as well as barriers to trade have to be analysed alongside the cost-effectiveness of various types of transport.
But for the domestic marketing; organisation should consider for the local factors and local needs and demands of the buyer. So, in the case of Ikea as well company should consider the domestic and international marketing factors. People from all across the globe are keeping eyes on London so it should position its marketing strategy for international market and domestic market separately.
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