1) Product

As seen in the goods-service continuum, IKEA as a product have both tangible and intangible aspects, and it is the thing you offer to satisfy your customersβ wants and needs. Within this element, one need to consider such things as product range; its quality and design; its features and the benefits it offers; sizing and packaging; and any add-on guarantees and customer service offerings.
Following are the range of products in which IKEA has diversified itself:
- Eating
- Desks
- Mirrors
- Cooking
- Bathroom Storage
- Childrenβs IKEA
- Beds and Mattresses
- Chairs
- Clothes Storage
- Decoration
- Flooring
- IKEA Family products
- Kitchen cabinets and appliances
- Lighting
- Small storage
- Sofas and Armchairs
- Storage Furniture
- Tables
- Textiles and rugs
- Tools and hardware
- TV and media furniture

2) Price
Sound pricing decisions are crucial to a successful business and should be considered at both long-term strategic and short-term tactical levels. Within this element of the mix IKEA considers list price and discount price; terms and conditions of payment; and the price sensitivity of the market. Worth remembering is the connection of price to itβs position in the marketing β specifically that only one operator in any market can be the cheapest. Jostling between competitors for this position is rarely wise.3) Promotion

Some of its TV advertising is considered controversial whilst others see it as pretty plain. Recent campaigns include the IKEA kitchen party advert βBe Happy Insideβ campaign and the kitchen party advert. Obviously their iconic yellow IKEA logo serves to support the brand.
4) Place
Marketers love models
that explain the way they work; they love it even more when elements of each
model begin with the same letter β hence the use of the word βPlaceβ to
describe distribution channels. The IKEA group is an international business, which sells furniture and accessories in Europe, North America, Asia
and Australia.
IKEA's main business
relates to its retail stores. Many of these stores are in out-of-town locations
and do not benefit from the footfall of primary and secondary locations. The
stores themselves are very large. Many of the stores even have restaurants,
food shops and a Swedish market. Some stores even have a bespoke play area.
5) People
The impact that your
people can have on your marketing cannot be underestimated. The IKEA brand
is based upon strong relationships with customers and customer satisfaction. So,
serving and working with people is central to IKEA's business philosophy. In
2011 its then president Mikael Ohlsson made a statement in their annual report
outlining his view on the business and its future. In his view the business
would be launching many energy-saving alternatives to conventional light bulbs.
He commented that their kitchen range would offer many smart, eco-friendly
solutions which would include water-saving taps, appliances and a special
system that would sort household waste ready for recycling.
Ohlsson made a commitment to reduce the impact of
his business on people,
as well as the environment. The business would act responsibly, resources would
be used efficiently and costs would be reduced. He also wanted sustainability
to become more visible to customers and employees.
6) Process
The process part of the
mix is about being βeasy to do business withβ. If youβve ever become frustrated
at call centers that canβt answer your questions, or annoyed when you canβt buy
something in a shop because the computerized till doesnβt recognize that it
exists, even when you can see it on the shelves, youβll know how important this
element can be. The furniture is made by IKEA itself whereby IKEA makes
its own wood-based furniture and wooden components. So for example the business
owns forestry sawmills.
The customer drives to the store, selects a product,
orders, it, and then collect it, only then to have to drive the product home
themselves. This is all part of the low pricing
commitment.
7) Physical Evidence

Good one !
ReplyDeleteNice article on 3 Ps of Marketing Mix.
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