Market Segmentation involves dividing the market into identifiable sections specific to the business’ needs.
Market Segmentation will allow IKEA to differentiate their products and to market them more effectively. It may allow them to find a niche in the market which will allow them to gain a competitive edge and possibly gain more market share (in the long run).
Market Segmentation will allow IKEA to identify new product opportunities by analysing specific consumer needs with contrast to their position in the segment. (Hope this doesn’t sound like a repeat of the first point.()
Market segmentation will allow IKEA to develop more efficient methods of promoting existing products by indentifying highly profitable markets or new channels of distribution.
Although there are possible advantages to segmenting the market, there are possible disadvantages as well.
There is generally an increase in costs with segmentation due to market research, research and development, production costs (the need for different products for different market segments), and inventory/ Stock Costs (increase in materials needed).
Asses the importance of Public relations to the IKEA Group...
Public Relations are the managing of outside communications to create and maintain a positive image.
PR is a highly credible form of promotion. It helps to create and establish credibility within the business. Since IKEA is a multi-national Group, operating in 33 countries, it is important for them to maintain a positive PR.
A well structured PR campaign can result in the target market being exposed to more detail. The catalogue produced by IKEA is an informative method of communicating their business information with their desired target market.
PR is generally less expensive than other forms of promotion, especially advertising. Having a strong PR in different markets will essentially lower costs on advertising...