The Expanded Marketing Mix: IKEA - highlights the 4Ps and expanded 7Ps marketing mix
The Expanded Marketing Mix: IKEA
Introduction
At any successful company, marketing seeks to connect with customers, serve their needs, and accomplish the stated mission of the organization. A successful marketing process creates value through consumer satisfaction from brand building before the sale to post-sales service and support (Kotler et al, 2001). The marketing strategy process has four primary segments: product, price placement, promotion and people (Kotler et al, 2001). Companies with a service element to their business often highlight three additional areas: people, processes and physical evidence. In addition to outlining the seven Ps, this report focuses on the unique product and service marketing approach used by Netherlands-based furniture retailer and franchisor Inter IKEA Systems B.V.
The Expanded Marketing Mix
According to McDonald and Dunbar (1998), the marketing mix is the term used to describe the tools and techniques an organization uses to implement the marketing concept. Kotler et al (2001) recognize "4 Ps" that encompass an organization's entire competitive marketing strategy: product, price, promotion, and place. However, McCarthy (1987) prefers a more explicit explanation of the marketing mix, suggesting that the mix is "a set of controllable variables which the organization puts together to satisfy a target group." A representative marketing mix involves a product provided at a price, combined with some level of promotion to attract potential customers, along with a way (a "place") to meet those customers (McCarthy, 1987). In service marketing, McColl-Kennedy and Kiel (2003) identify three extended elements for marketers. In addition to the traditional 4 Ps, McColl-Kennedy and Kiel (2003) stress the core role of people in a service industry, including both employees and customers or potential customers. Additionally, the service process and physical evidence take on additional importance in service industries. All 7 attributes are
Introduction
At any successful company, marketing seeks to connect with customers, serve their needs, and accomplish the stated mission of the organization. A successful marketing process creates value through consumer satisfaction from brand building before the sale to post-sales service and support (Kotler et al, 2001). The marketing strategy process has four primary segments: product, price placement, promotion and people (Kotler et al, 2001). Companies with a service element to their business often highlight three additional areas: people, processes and physical evidence. In addition to outlining the seven Ps, this report focuses on the unique product and service marketing approach used by Netherlands-based furniture retailer and franchisor Inter IKEA Systems B.V.
The Expanded Marketing Mix
According to McDonald and Dunbar (1998), the marketing mix is the term used to describe the tools and techniques an organization uses to implement the marketing concept. Kotler et al (2001) recognize "4 Ps" that encompass an organization's entire competitive marketing strategy: product, price, promotion, and place. However, McCarthy (1987) prefers a more explicit explanation of the marketing mix, suggesting that the mix is "a set of controllable variables which the organization puts together to satisfy a target group." A representative marketing mix involves a product provided at a price, combined with some level of promotion to attract potential customers, along with a way (a "place") to meet those customers (McCarthy, 1987). In service marketing, McColl-Kennedy and Kiel (2003) identify three extended elements for marketers. In addition to the traditional 4 Ps, McColl-Kennedy and Kiel (2003) stress the core role of people in a service industry, including both employees and customers or potential customers. Additionally, the service process and physical evidence take on additional importance in service industries. All 7 attributes are
References: Barnes, E., Meyer, R., McClelland, B., Wieseholfer, H., and Worsam, M. (1997). Marketing: An Active Learning Approach. Oxford: Blackwell. IKEA.com (2004). About IKEA. Inter IKEA Systems B.V. Retrieved on August 12, 2004 from the World Wide Web at: http://franchisor.ikea.com/ IKEA.com.au (2004). About IKEA. Inter IKEA Systems B.V. Retrieved on August 12, 2004 from the World Wide Web at: http://www.ikea.com.au/ms/en_AU/about_ikea/facts_figures/figures.html Kotler, P., Armstrong, G., Brown, L. and Adam, S. (1998). Marketing. Sydney: Prentice Hall. McCarthy, E.J. (1987). Basic Marketing: A Managerial Approach. New York: Irwin. McColl-Kennedy, J.R. and Kiel, G. (2003). Services Marketing. Hoboken, NJ: Wiley and Sons. McDonald, M. and Dunbar, I. (1998). Market Segmentation: How To Do It, How To Profit From It. Oxford: Palgrave.