Business Studies †Marketing Mix Essay

All inducees offer near form of renovation as part of the point of intersection that they supply to clients. This is true of businesses supply construct goods, as well as those that only supply services. By confluence (or exceeding) clients expectations, businesses give the axe improve their image and establish a reputation for supplying crossings with risque - character characteristics. The features of quality service include* do sure the customer is safe This is all important(p) for a high profile business desire IKEA otherwise the media go a agency be straight on to them issuing pretty press against them, potentially fully grown IKEA a bad name, exceptto a greater extent the customer may wish to egress legal action if he/she palpates ill-use by IKEA. Again causing problems for IKEA.* Delivering good customer service conclusive for IKEA to maintain the good name they have, customers in this day and age pass on non accept poor service, otherwise its likel y they go bulge look elsewhere.* Improving the quality of the crossing Its primal IKEA detain up(a) the quality of on that point products otherwise customers leave alone begin to lose intimacy in the company due to its lack of creation and continued come near customers urgency to see new/improved products on each experience they make to IKEA.* Making sure the customer is not kept wait If IKEA allow customers wait for there service, its likely they depart simply go away the barge in and go else where, so its grievous there staff ar motivated and wanting to give IKEA a good name.* Demonstrating good later on cut-rate sales c be Once the sale is done its easy to gather in the coin and thats it, but with IKEA if a problem arises they will want to help the customer in any way possible. Its full of life for them to retain customers and not lose them to a competitor, and slide byly IKEA argon doing a good job at this as there profits continue to increase mean ing the customers are happy with how they are treated both(prenominal) out front and after sales.To see how business offer service in practice, lets look at some real representatives. IKEA sells their products sic to be fitted, meaning the products they sell have to match customers precise requirements and likewise come with good instructions to help them var. it at home. Otherwise people will see it as a hassle, meaning they re less likely to purchase from IKEA again.IKEA has bought it self a good name due to fact they offer good after sale services so if needed to contact a process of staff its possible, they give you a good instructional manual, if thats not enough you fuel phone them, email them or even talk of the town 1 to 1 with a member of staff on their entanglementsite via their web chat facility.It is this combination of products together with a cast off of services that is important in shaping and determining Ikeas reputation, the distinct characteristics of i ts products and the companys competitiveness.IKEAs website is also a key part in generating sales for there products, its important they describe the product occurly, and give the customer as much information about the product as possible, its less likely that someone will make a visit to IKEA for a product they arent given much information about on their website.The in a higher come out picture is the basic layout for all IKEA products on there website, it has a clear picture of the product, price, special features, measurements, whether it requires assembly, care instructions, material make out of. It also gives the customer the option to see whether they have that product in melodic phrase at your local IKEA store, which from personal experience is truly useful and practical. IKEA do give a lot of information which reassures the customer that this is the product they want, giving them a buzz and actually wanting to get down to IKEA as soon as possible to purchase the product .B)Price is the amount charged by a business for its products. The factors determining the price of a product nookie be summarised as the three Cs Cost, Competition and client value.* The cost of producing the product If a business is to make a profit, hence it clearly of necessity to charge a price that covers the cost of make and selling the product.* The price charged by competitors A business ability want to charge a price at or be let loose that of its competitors. However, if the product is sufficiently preposterous and superior, then the business power witness it is accept able to charge a price above that of its competitors. IKEA excels here, in the spirit that it offers prices affordableer then its competitors, putting them ahead of the game.* The price customers are willing to lucre This is determined by the value of the product to the channelize foodstuff. If consumers in the target market believe that they can gain significant benefits from the product, then they will be willing to give way a high price. However, if the product cans a few(prenominal) benefits, consumers will only be prepared to ease up a low price, for example, the price someone is willing to pay for a house will depend on its location, the arrive of rooms and other factors such as the size of the garden.A business will consider all these factors before deciding on a price for each of its products. In certain(prenominal) situations, it may be appropriate to set a coitusly high price. For example, Ikea may set a premium price on a high quality piece of furniture that is widely recognised as macrocosm superior to other similar products made by competitors. In other situations a business may opt to set relatively low prices. For example, a new company operating in a real competitive market may set low prices relative to its competitors in an attempt to assume business and build a customer base.IKEA are renowned for their cheap prices and high quality products. This has helped them build a colossal reputation, and ultimately there cheap prices are a unique selling point, when people think, where can I get good, yet cheap furniture from? Instantly in most(prenominal)(prenominal) cases they think IKEA. IKEA is renowned for beingness value for money.c)Promotion is a series of marketing activated intentional to make consumers aware of products. The ultimate aim, of course, is to persuade them to vitiate those products. Promotion is an important part of the marketing mix, and business can use a physical body of different types of promotion.One of the methods is advertising, advertising is a content by which businesses pay for communication with actual and potential customers through newspapers, tv set, radio, the internet and other media. It can be expensive, but advertising is often highly successful in influencing consumers purchasing decisions.Advertising can be informative, by setting out to increase consumer awareness of a produc t. This type of advertising is based on facts rather then images. On the other knock over, persuasive advertising attempts to entice consumers to purchase a certain product. Persuasive advertising aims to persuade that the advertize product is better than the contest.Sales promotion is any activity that provides a financial incentive to purchase a product. For instance Ikea may hand out free samples of food in their newly built eating place or perhaps have demonstrations of how to put together some of their products to describe customers thats its easy, and can be done by anyone.IKEA advertising in the UK is intended to raise awareness of the IKEA smear and drive traffic to the stores. approximately people love IKEAs unique style of retail advertising, some hate it, but everyone who sees there advertising has a strong eyeshot and subsequently it provokes conversation and debate. Despite having some of the most controversial television advertising campaigns in the UK this in cludes criticising the taste of the British world, invisible furniture, an exaggerated homo man advertising for IKEA.IKEA have raised awareness of there brand, let people know they are different to other home furnishing companies and most importantly increased sales. The advertising department includes all aspects of advertising and brand communication from television advertising and sponsorship to magazine and radio promotions. Advertising is utilize to support many different areas of the business including brand awareness, store themes, sort out drops and store openings.The term merchandising covers a range of tactics apply by businesses at the point of sale (the location at which the products are actually purchased) to achieve higher sales figures.For example, a business might offer retailers special display stands or point-of-sale adverts to encourage them to place the businesss products in a more favourable and salient(ip) position withen stores.Merchandising can be import ant when* Consumers make decisions at the point of sale. This includes a lot of information about the product, fashioning it bright, clear and attractive.* Competitors make extensive use of merchandising.* A variety of rival products are on display in stores.* Rival products have only pincer differences.Businesses seek good publicity, and public relations (PR) is designed to improve businesses standings in the eyes of consumers and other interested groups,. Larger organisations have their own PR staff. Ikea engage in a variety of PR activity including* Making donations to charities IKEA support unicef to help young children in less fortunate countries virtually the world.* Sponsoring sporting and cultural activates, and IKEA support the local community by donating products to schools which dont sell in stores, this is very universal in the community, and keeps the public happy, which creates good press for IKEA.* Allowing the public to visit the business Makes the customer fe el more welcome, and at home with IKEA if they feel involved by training more about the company.Public relations can be a very expensive form of promotion, and it can be difficult for businesses to tax the effect of public relations on sales.Catalogues are a huge part of advertisement for IKEA, its relatively cheap when compared to TV adverts, and its evenhandedly easy to get to the customer, IKEA print 131 million copies of there catalogue making it the most widely distributed commercial publication in the world. Having picked up a couple of the latest IKEA catalogues and handbooks, its clear that IKEA thrive on simplicity. The IKEA textbook is the same font on all brochures, with the handed-down blue and white-livered logo on the bottom hand side of the page this creates pertinacity which means people recognise it straight away when they see it again, the traditional yellow and blue logo is based on the colours of there home country Sweden.The background images are warm, co sy, family pictures, one containing a oversize sofa with numerous pillows, the other an aqua blue kitchen. This gets the message across to the reader that there is a large range of products operational, furthermore on the front cover they get the message about there prices, devote less, enjoy more and your 100 page guide to making an affordable, animate choice. This encourages the public to go through the IKEA catalogue. Furthermore the catalogue brings the IKEA store into your home, its the shell way to prepare for a visit to IKEA.d)Place is another(prenominal) term for distribution. It covers the range of activities necessary to ensure that goods and services are available to customers. Deciding on the right place involves a range of decisions.A business needs to consider the most cost-effective way of getting its products and service to the customers. It needs to look at the implications for its profit margins of each means of distribution.The growth in use of the internet has encour venerable even depressed businesses to use websites to sell their products to what can be a global market. This can be highly cost effective means of reaching a wide target audience, but is not suitable for all business and all products.Businesses seek to design marketing mixes that are complementary and work together to benefit the business and to maximise sales. For example, Ikea promotes itself to its target audience on the basis that it offers the lowest possible prices. Place is important to Ikea, and the company locates stores in areas where it costs less to set up, eg on the outskirts of major cities. Which targets both high income earners and low.IKEAs transport methods are highly effective, large volumes in combination with flat packages are important in helping IKEA to transport products economically from the supplier via the stores to the customers. Flat packs mean that IKEA do not have to pay for transporting or storing unnecessary air and that not only mea ns visit warehousing and distribution costs, but also less impact on the environment. At present 20 % of all IKEA goods are transported by rail.6)It makes soul for Ikea to target a wide range of customers. This is referred to as caboodle marketing. only when theres the other side of it where in some situations they will target small sections of the market. Taken to the limit, this might involve giveing for a small select group of customers a target market that has very specific needs. I.E childrens section.In mass marketing, Ikea would aim their products at most of the available market and normally try to sell a range of similar products to all customers. Mass marketing is possible if the products are popular and purchased by many different types of people. For example Ikeas furniture products are well suited to being sold in mass markets.Businesses must be able to produce on a large shield if they are to sell successfully in a mass market. A company may have to invest heavi ly in resources such as buildings, machinery and vehicles. Usually, substantials also have to be very price competitive to flourish in mass markets.By contrast, turning point marketing involves companies bring outing and meeting the needs of relatively small areas of the market. The aim is to cater for the needs of customers that have not been met sufficiently by other business, and niche marketing is one way in which small businesses can hold up profitably in markets that are dominated by large firms. An example would be Ikea and their play pen for younger children.Market investigate helps businesses to identify whether they should adopt a mass or niche marketing strategy. In general, this would depend on* Whether the needs of customers within all parts of the market are being met.* The extent to which a business can provide specialist products capable of meeting the needs of select groups of customers. This gives IKEA good sentiment whether there is a need for a unique pro duct on the market, or a product aimed at a special choice of customers, doing this research could potentially uncover new opportunities for them.* The degree to which competitors are soon meeting the needs of all customers within the market.7) Market research is the authoritative collection and analysis of data to enable a business to take better quality marketing decisions. In simple name, market research allows businesses to find out what customers want. There are a number of reasons wherefore businesses invest in market research.To determine whether IKEA should focus on mass marketing or niche marketing, they can use market research. intimately products are only likely to be chiefly purchased by grumpy groups of customers the market of young working-class males, for example, is very different to that of middle aged wealthy couples. Market research can assist a firm in identifying which parts of the market are most likely to buy its products.It is vital for a business to know who its customers are. This allows the business to* Design products to best meet the needs of these customers This makes it more efficient at what it does as it specifically meets the needs of IKEAs customers, meaning its something which grabs there attention, or they can plug into to and want to purchase.* Target advertising, promotions and special offers at these groups People like a bargain, once they see a discount on a product they are looking for they are likely to purchase it from IKEA.* Conduct further in-depth research with specific groups of customers to uncover their needs as fully as possible.5) Businesses need to know whats happening in the market. To be able to plan its product and marketing effectively, a business like Ikea needs to address three important questions.What is the size of the market?A way of measuring the size of the market is to consider the volume of sales made by all businesses selling furniture.What is the structure of the market?This means di scovering the number and size of businesses that make up a market. Are there, for example a few large firms, or many small firms? Or a mixture of large and small firms? If a business is in competition with large firms, it may decide to avoid competing on price terms as larger firms may be able to produce their products more cheaply.Is the market growing or shrinking?Market research can reveal what is happening to sales in market over a period of time. A business may feel more self-confident about entering a market which is growing, as it should be easier to win sales when some customers are not yet loyal to particular brands or manufactures. The market for DIY furniture has kept growing recently mainly due to Ikeas success. If IKEA are planning on releasing a new product, its likely they will do research into other products in a similar field to see whether the market for them specific products are increasing or decreasing. This will give them a good conception whether it is worth a full-scale launch of the product they have in mind.9)Total theatrical role Control is the most necessary inspection hearler of all in cases where, despite statistical quality control techniques or quality improvements implemented, sales decrease.The major problem which leads to a decrease in sales was that the specifications did not include the most important factor, What the customer needed.To maintain their quality and standards is vital to IKEA, the quality and reliability and workmanship of their products is crucial to there brand. Both to keep their customers and to be legally correct.* Marketing had to stop out their work properly and define the customers specifications.* prudence had to confirm all operators are equal to the work imposed on them and holidays, celebrations and disputes did not affect any of the quality levels.* Inspections and tests were carried out, and all components and materials, bought in or otherwise, conformed to the specifications, and the meas uring equipment was accurate, this is the responsibility of the QA/QC department.* Any complaints received from the customers were timorously and satisfactorily dealt with. This will help keep IKEA a favourites with the customers.To conclude, the above forms the basis from which the philosophy of Quality Assurance has evolved, and the achievement of quality or the fitness-for-purpose is Quality Awareness passim the company.IKEA hire highly trained quality control workmen, to check that the products in the warehouse are looked after sensiblely and that they are delivered to the customer effeciantly. Quality control is to check that there product meets customer demands and possibly look for shipway to improve it. Its important for a business like IKEA to have rhythmicaly quality control checks to make sure that the products they sell are always up to standards, making sure the high IKEA standards dont drop without them being aware. To make sure of this IKEA have a test lab in Almhu lt which tests both textiles and furniture, around 50,000 tests are carried out in accordance with authorized standards each year.For several years in succession the IKEA Test lab has been accredited for it quality system and test methods in accordance with the internationalist standards. All these tests have been developed to correspond to many years of regular use in a domestic enviroment in the areas for which the product is intended. IKEA not only test products during development, but also selects random samples from among the products on sale in the stores. As IKEA say It is our customers that we want to come back not our products This makes sure that IKEAs customers get there full value for money and a long lasting product.