Maketing

Market: a place where goods are exchanged.

Marketing: The comprehensive process of management activities through market
transactions to meet the actual or potential needs of customers.

General steps of marketing:

1. Conduct environmental analysis to understand and master the market environment
2. Formulate STP strategies
3. Develop the corresponding 4P portfolio according to the needs of the target market

Marketing environment includes macro environment and micro environment.

1. Macro marketing environment: refers to the state of a country's economy, society
and its development and change. Such as population environment, economic
environment, political and legal environment, natural environment, scientific and
technological environment, social and cultural environment.
Macro environment analysis: PEST analysis
2. Micro marketing environment: refers to the participants who are closely connected
with the enterprise and directly affect its marketing activities. Such as the enterprise itself,
customers, competitors (refers to enterprises or individuals that provide the same or
similar products in the market served by the enterprise and pose a threat to the
enterprise), the public (refers to groups or individuals that have actual or potential
interests and influence on the enterprise's ability to achieve marketing goals), etc
Micro environment analysis: SWOT analysis（SWOT 是可以分析公司内外部优缺点的
SWOT can analyze the internal and external advantages and disadvantages of a
company）

Analyze the market environment of IKEA

1. Macro environment:
Political: China's stable and orderly Political environment and legal system provide a
good opportunity for multinational companies to enter the Chinese market.
Economic: With the rapid development of The Chinese economy, the per capita income
and consumption level are constantly rising, and the purchasing power is gradually
increasing.
Society: China's big cities are stressed and need time to relax. People can go to IKEA
and feel like home.
Technological: After China's accession to the WTO, it pays more and more attention to
the development of new products and patent protection, which can promote the
development of furniture market.
2. Industry Environment:
Strength: 1. Long history, high popularity and popular design style
2. Product variety is rich and cost-effective
3. Unique store layout makes customers feel at home
Weakness:
Due to cultural differences, Chinese people, especially middle-aged and elderly people,
prefer luxury and design. Ikea's design is more fashionable
Opportunity: 1.With the development of China's economy, people's income level
increases, and China's real estate industry is relatively developed, so the
prospect of the home furnishing market is good.
2. There are few enterprises with similar business model in China
Threat: 1.With the continuous opening and development of China's economy, many
foreign furniture brands enter China and the competition intensifies.
2. Raw material and labor costs are rising

Marketing strategy: STP marketing

1. Market Segmenting: Process of dividing a Market (consumers) into submarkets
(subconsumer groups) with common characteristics based on specific criteria. 例子：
Market Segmenting based on population factors 耐克的女性的运动内衣，20-40 岁，
热爱运动的女性 Example: Nike Sports Underwear for women, 20 to 40 years old,
women who love sports
3. Market Positioning: The enterprise creates unique features and images for its
products in the target Market and transmits them to the target customers, so as to leave
a unique impression in the minds of the target customers.

4P: The four marketing mix strategies are 4Ps, namely product price and place
promotion, which are based on the perspective of the company.
1. Products: refers to the goods sold by the enterprise, which can be tangible products
or intangible services. Pay attention to the packaging and quality of the products
2. Price: Price refers to the monetary cost paid by the customer to acquire the product.

①Penetration pricing refers to setting a low price at first, and then increasing the price to

attract customers and quickly improve market awareness and market share once the
desired market share is obtained.

②Skimming pricing refers to setting higher product prices to make consumers feel that

the products of enterprises are of good quality, more reliable and worth buying, so as
to maximize profits
3. Place: refers to the channel of a product or service from the producer to the customer

①Exclusive distribution: Producers select only a few middlemen (1-2) in a given territory

to help them sell their products. e.g luxury goods, such as LV.

②Selective distribution: Producers select a small number of middlemen in a given area to

help them sell their products. e.g Electrical appliances in various shopping malls.

③Intensive distribution: It means that producers choose as many intermediaries as

 possible in a given area to help them sell their goods. e.g coca-cola
4. Promotion: Enterprises communicate information with consumers in various ways to
attract consumers to buy products.
Promotion types: 1. Physical exhibition
2. Sample trial
3. Discount
4. Coupons