MARKETING ESL 105 Presenters: Hsiao, Hsin-Yuan Lin, Yu-Chun Instructor: Lyra Riabov
Presentation Outline • Marketing Definition • Four P’s • IKEA’s Marketing Strategy • Conclusion • References
The Definition of Marketing The movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objective
Four P’s • Elements: Product, Price , Placement, Promotion • Short-range Goal: thefour P’s work together to help position products and services correctly, and make sure sales can be more effective. • Long-range Goal: satisfy the target-customers and achieve the company’s objectives.
Four P’s • Product:the full bundle of goods and services offered to the customer. Including: R&D, researching, testing • Price:how much you charge for your product or service. Pricing Options: above, with, or below market
Four P’s • Placement: where and how your product is distributed and sold to the customer Channel of Distribution: Manufacturer→Wholesaler→Retailer→Customer • Promotion:communication between buyer and seller Including: personal selling and advertising
Product Price Consumers Promotion Placement Four P’s • Marketing Mix:marketers identify their target market and adjust the four P’s to arrive at a mix that the customer will prefer over competitors.
About IKEA • Found: in Sweden in 1943 • Multinational: more than 200 stores in 32 countries, four continents , including USA, Russia, Hong Kong, Spain, Taiwan… -The IKEA Group owns 180 stores in 23 countries. -The other 22 stores are owned and run by franchisees outside the IKEA Group in 14 countries (as of October 2004). • Employees: 84,000 co-workers and operates in 44 countries.
About IKEA • Finance: sales for the financial year 2004 (1 September 2003 - 31 August 2004) totaled 12.8 billion euro (15.5 billion USD) • Vision: a better everyday life , low price is the focus
The Target Market of IKEA • Middle-class, young people who • Like innovation, fashion, and new stuff • Like changing and enjoying life
Four P’S of IKEA Product • Offer a wide range of home furnishings with good design and function • Typical IKEA style: simple , direct , natural, unrestricted • Flat packs and assemble by yourself
Four P’S of IKEA Price • Pricing option: below market • Contract out: around 1,500 suppliers in 55 countries • Fixed price way: pricing before designing
Four P’S of IKEA Placement • Direct marketing way: reducing the channel of distribution • Global sales net: more than 200 markets and shops allied in 32 countries • Logistics system: IKEA has 27 distribution centers in 16 countries
Four P’S of IKEA Promotion • Catalog Marketing : - mail-ordering house - 145 million copies were printed in 48 editions and 25 languages - a promise of the price and products and helping systematic purchase
Four P’S of IKEA Promotion • TV advertisement appeals: - innovation - change - fashion - colorfulness - variety
Four P’S of IKEA Promotion • Creating a relaxed environment - Kid's Ballroom - Feeding and Changing rooms - IKEA restaurant - Showroom
affordable solutions for better living Four P’S of IKEA Promotion • Slogan: affordable solutions for better living • Appeal: Young People of all ages
Conclusion • Target market research plays an important role in marketing. • Every marketing strategy and activity stands on the four P’s and target customers. • Marketing activity affects product, price, placement, and promotion