MARKETING PRINCIPLES

Marketing Principles and Business Practice

Marketing Principles and Business Practice

Introduction

IKEA is an internationally known furniture maker and has been growing since its foundation in 1943. It has acquired the name of the world's largest retailer of best quality furniture. Most of the furniture can be assembled by the customer himself which allows for minimizing packaging costs. There are around 18 stores of IKEA in the United Kingdom. Low prices and friendly atmosphere allows IKEA to retain and please its customers. The product range at the company is available in good designs and at low prices. Home furniture solutions are provided for every room. The idea behind all the strategies is that people can be provided with affordable and well-designed furniture solutions at lower costs. By maximizing its raw materials, IKEA fulfills the needs of its customers. The following paper discusses and answers a few marketing strategies and concepts implemented at IKEA.

Explanation of the Marketing Terms

Sustainability

Sustainability is a concept which deals with taking care of the people and the community, and above all the planet. The suppliers, workers and partners work coherently to ensure that all the needs of the customers are met on demand and on date, whilst ensuring that the planet is protected and not harmed when IKEA conducts its business activities. For this, IKEA has introduced several products and solutions to carry out its business operations (Chopra, 2009). Affordable products and services are provided to the customers under the utilization of less energy to reduce the amount of waste produced. IKEA is of the opinion that when customers are allowed to live sustainably, it can create a big difference. IKEA aims to provide its customers with sustainable solutions to their furnishing needs to create a sustainable lifestyle for the customers. The products are safe and durable and are customer friendly (Hurley, 2012).

Strategy

Strategy is the road providing direction and scope to the organization for achieving the long-term goals by utilizing the current resources in a challenging business environment to meet the needs of the stakeholders. IKEA has a clear strategy for its product positioning. It targets young consumers seeking quality furniture and attractive design at a low price. The secret of this strategic positioning is the integrated set of activities that makes it work successfully (Hurley, 2012). Consider the traditional furniture stores having large halls, where they are exposed to product categories, such as sofas or dining room tables. Usually a seller will accompany the client through the store, answering questions and helping you to choose. Once the decision is made, the request is forwarded to a third party: the manufacturer. With any luck, the furniture will be delivered to the client's home within six to eight weeks. It is a technique that maximizes customer service, but with a very high cost for companies (Chopra, 2009). Rather, IKEA serves its consumers who prefer this service by touching price. Instead of having salespeople to serve the customers, IKEA engages its consumers into ...