This report describes the importance of market research, the target market and market segmentation. How a business can use a situation analysis and SWOT to provide a direction for Ikea. This examines how types of customers and buyer behaviour will impact marketing strategies. Evaluates as a key marketing strategy for Ikea as a case study. Analyses marketing strategies can be used to achieve marketing objectives and describes some ethical and legal things that a business must manage and respond to while marketing. Business Overview
Ikea is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. Ikea responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. Through this, Ikea is able to generate the strong growth it needs to retain a strong identity in the market. Ikea’s passion combines design, low prices, economical use of resources, and responsibility for people and the environment. The company's products, processes and systems all demonstrate its environmental stance. For example, clever use of packaging and design means more items can fit into a crate, which means fewer delivery journeys. This in turn reduces Ikea's carbon footprint. Ikea believes that there is no compromise between doing good business and being a good business. It aims to go beyond profitability and reputation. Ikea is intent on becoming a leading example in developing a sustainable business. This will create a better everyday life for its customers.
When Ikea conducts market research it is important that the business first determines its information needs. The business should have some idea about the type of information it is looking for. It could vary from customer profiles or brand awareness through to attitudes towards certain new products. Once its information needs are established, the business can determine the most appropriate research method. This is primarily done by IKEA group although individual stores would use sales reports in order to gather data about the types of customers and popular products that are particular to the area or store. The Target Market
The target market is a group of customers for whom a particular product has been developed. The business hopes that these people will buy the product when it is made available in the marketplace. Some products appeal to all consumers, while others have limited appeal. A business needs to understand the nature of consumer markets. The three types of markets Ikea appeals to are Consumer, Mass and niche. The products in Ikea produce are universal to all and with their flat pack design they fall into the niche market. Ikea focuses on meeting the customer demands and satisfying their needs. Ikea's main focus is that of the selling orientation. Market segmentation
Market segmentation is the process of breaking down a total market into small markets It allows businesses to focus their efforts and resources on a section of the market. By focusing on a particular target group, It would consider the features that consumers of this target group would be looking for in a product, the appropriate promotional strategies to generate awareness of and sustain interest in the product, and the most suitable pricing policies and distribution channels. Market segmentation and product/service differentiation,Demographic segmentation, dividing consumers into groups based on selected demographics, so that different groups can be treated deferent Situation analysis and SWOT
Situation analysis is the way in which a business can examine the current position within the market and provides them with direction for their marketing campaign. SWOT is the first stage of planning and looks at...
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