This document discusses the marketing mix and its four elements - product, place, price, and promotion. It explains that a marketing research approach involves analyzing consumers, competitors, and developing a marketing mix strategy. The four Ps - product, place, price, and promotion - are the key variables in a company's marketing mix. The document then describes each of the four Ps in detail and provides IKEA as an example of a company that effectively utilizes all aspects of the marketing mix through its products, store locations, competitive pricing, and promotional activities.

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Marketing Mix Paper
MKT/421-Marketing
Marketing Mix Paper
To develop a marketing research approach, a company will look to do a consumer
analysis, an industrial analysis, and develop a marketing mix that will best suit the organization

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and the consumer. “In a consumer analysis, some areas to look at are demographics,
psychographics, behaviors, and geographical consideration. In an industrial analysis, the
company will do a competitor analysis,” (Perreault & McCarthy, 2004). Every organization has
countless ways to try meeting the need of his or her customers. There are so many variables; a
company needs to be able to organize them to simplify the selection for that organization’s
marketing mix. All the variables are reduced down to four basic variables: product, place, price,
and promotion. All other variables will be listed under these four variables. “All four Ps are
needed in the marketing mix, and in fact, should be tied together,” (Perreault & McCarthy,
2004). This paper will discuss and describe the elements of the marketing mix. It will also
describe how each one of the four elements of the marketing mix impacts the development of
IKEA’s marketing and tactics.
First of the four variables is the product. Developing the right product for the target
consumer is the main area of concern for this variable. Some products can be tangible products
that can be bought and sold. However, not all products are that of physical goods. Many products
that are offered to the consumer are services. “Services can consist of completing someone’s
taxes, performing yard work and landscaping, and legal representation. The most important thing
is that the product or service satisfies the customer’s needs,” (Perreault & McCarthy, 2004).
“Some examples of the product decisions to be made are brand name, functionality, styling,
quality, safety, packaging, repairs and support, warranty, accessories and services,” (NetMBA,
2012).
The next variable is the place. What good is a product to the consumer if it is not
available when and where it is wanted and needed? Decisions involving getting the right product

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to the targeted consumer are the area of concern of place. The product reaches the consumer by a
channel of distribution. “A channel of distribution is any series of firms (or individuals) that
participate in the flow of products from producer to final user or consumer” (Perreault &
McCarthy, 2004). A channel of distribution can be very short and simple or much more complex,
involving different wholesalers and retailers (Perreault & McCarthy, 2004). “Some examples of
distribution decisions include distribution channels, channel members, inventory management,
warehousing, distribution centers, order processing, transportation, and reverse logistics,”
(NetMBA, 2012).
In addition to developing the right product and place, a company must also decide the
right price. “When setting the price of the product, the marketing manager must consider many
variables. Some of these variables include the price of the competition in the target market and
the cost of the entire marketing mix,” (Perreault & McCarthy, 2004). Another important factor of
pricing is the reaction of the consumer to the price. If the consumer does not accept the price,
then all of the other components of the marketing mix are wasted (Perreault & McCarthy, 2004).
“Some other examples of pricing decisions to be made are price flexibility, price discrimination,
bundling, cash and early payment discounts, seasonal pricing, and suggested retail price,”
(NetMBA, 2012).
The last of the four marketing mix variables is promotion. Promotion is concerned with
letting the target consumer know about the right product. Promotion can be focused on both
acquiring new customers and retaining current customers. “Promotion can include personal and
mass selling, as well as sales promotion. A blend of all of these methods can help in the
marketing success,” (Perreault & McCarthy, 2004). Personal selling involves direct

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communication between the seller and the consumer. It can happen face to face or by phone and
video conference. “Mass selling involves communicating with a large number of customers at
the same time. This can happen by utilizing forms of paid and unpaid publicity,” (Perreault &
McCarthy, 2004). “Some examples of promotion decisions can include advertising, public
relations and publicity, and sales promotions,” (NetMBA, 2012).
IKEA is company that strongly exhibits all aspects of the marketing mix. There vision is
“to create a better everyday life for the many people,” (IKEA, 2012). IKEA offers a wide variety
of quality home furnishing products at low prices so that as many people as possible will be able
to afford them. The IKEA brand is built on encouraging customers to experience the IKEA
concept. “The company’s image is contributed by what the company does, says and the products
they offer at the price they are offered at,” (IKEA, 2012). The marketing mix is shown
throughout the IKEA business and culture.
The IKEA product is what the company is all about. The company offers a wide array of
home furnishing products for ever area of the home. Their products are offered in many different
styles to give the consumer the opportunity to find exactly what they need. IKEA’s brands speak
volumes about the culture with each item having its own unique brand name with a Swedish
flare. Packaging is also a big IKEA selling point; selling the majority of their product
unassembled so the consumer can transport them all home without having to arrange and pay for
delivery.
Place is also a big IKEA strategic strong point. Compared to other home furnishing
retailers, IKEA has a smaller amount of well strategically place stores throughout the United
States and the rest of the world. This leaves room for a lot of supply and demand. Consumers

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flock from all over to visit IKEA locations and purchase large volumes of products. Since each
IKEA location is its own warehouse, customers can leave with their furniture or arrange for
short-term delivery. Each IKEA location also keeps a large amount of inventory in order to keep
merchandise available for the many customers that come to their locations.
Price is also one of IKEA very strong qualities. It is actually their claim to fame. Because
of how other variables in the marketing mix are addressed, IKEA is able to offer its products and
services and much lower list prices than its competitors. The company also offers many
discounts and sales throughout the year to lower prices even more on some of their most popular
items. IKEA also offers different credit and financing options to allow more consumers access to
purchasing IKEA products.
IKEA has also bumped their promotions in the last few years. With the opening of many
more U.S. IKEA locations, the company has started a completely new national commercial ad
campaign. The commercial ads were developed to appeal to the consumer that shows IKEA as a
hip, fresh solution to any home furnishing need. The company also takes advantage of some free
publicity by donating time, service, products, and funds to various local causes. These types of
promotion appeal to the local market and show that IKEA is a large integral part in the
community.
IKEA utilizes all aspects of the marketing mix to help make it one of the leaders in its
industry. Just like IKEA, all businesses that offer products and services rely on the marketing
mix to develop the most successful marketing and tactical strategies possible. With the proper
mix of product, place, price and promotion, organizations can most effectively provide the right
consumers right the right products at the right places and at the best prices.

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References

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IKEA. (2012, May 14). Products and materials. Retrieved from
http://www.ikea.com/ms/en_GB/about_ikea/our_responsibility/products_and_materials/i
ndex.html
NetMBA. (2012, May 14). The marketing mix. Retrieved from
http://www.netmba.com/marketing/mix/
Perreault, William D., & McCarthy, E. Jerome. (2004). Basic marketing: A global-managerial
approach. [University of Phoenix Custom Edition e-Text]. : The McGraw-Hill
Companies. Retrieved from University of Phoenix, MKT421 website