IndexIntroductionScopeLimitationsSegmentationMarket IdentificationMethods and Theories Used to Determine SegmentsMarketing MixConclusionIntroductionThis report is a further report based on the initial Australian Retail Industry Report furniture retail. Here we will mainly focus on one of the most prestigious companies in Australia, IKEA, which operates in the furniture retail sector. Meanwhile, we will attempt to analyze the marketing mix of two specific segmentations that will be emphasized by IKEA's marketing strategy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay ScopeThis report talks about two market segmentations of IKEA and its current promotional strategy towards these different target segments. In examining the two segments, this report focuses on the seven Ps from the sellers' perspective, such as product, price, positioning, promotion, people, process and physical evidence. The data mentioned in this report was collected from some magazine articles, IKEA's main website based on the two segments and relevant links in its website. Additionally, secondary data such as textbooks and annual reports from the furniture retail industry were also used. LimitationsThe limitations of the report were the lack of experience in data collection, time constraints and the inability to book an interview with staff working in IKEA. The difficulty of achieving current marketing strategies was also addressed. In preparing this report, it is assumed that the information gathered relating to the topic is correct and readers are assumed to have a basic understanding of marketing strategies. Segmentation Market Identification Also as Kotler, Brown, Adam and Armstrong (2001, p 10) explain that the market is a group of all actual and potential consumers of a product. The main product of the furniture retail industry is furniture and decorations. Customers purchase furniture to furnish their workplace or living space and achieve a better environment. IKEA's market consists of all customers who need furniture. IKEA's business idea is to offer a wide range of home furniture with good design and functionality at prices so low that as many people as possible can afford them. This consumer group is the core market. They also create children's furniture. Thanks to its global organization, IKEA has an international market. IKEA tried a new segmentation called “Enjoy Life, Work IKEA.” This segment is based on business people working in Australia. Ikea marketers have divided the market into people who work from home or an external office. These workers are usually white collar workers and belong to the middle class of the entire society. Marketers believe the key to making work a pleasure lies in creating a better workspace, designed with freedom, flexibility and fun in mind (http://www.ikea.com.cn/english/range /enjoy.htm) . Therefore, IKEA marketers have segmented this type of workers into a particular group. According to Kotler, Brown, Adam, and Armstrong (2001, p 294), they segmented the consumer market through demographic segmentation. This consumer market was divided into groups based on occupation and income between twenty-five and fifty-five years old, male or female, married or unmarried. Ikea uses income and socioeconomic status segmentationtargeting affluent consumers. On the other hand, IKEA marketers have also segmented the consumer market into the children's market named "Ikea for children". This target customer group is totally different from the previous one. For IKEA, they believed that children were the most important people in the world. When parents furnish the house, children always have a certain expectation of their room. Therefore, children have the ability to direct parents on the type of room they prefer and what they want to buy for decorations (http://www.ikea.com.au). Therefore, IKEA marketers have segmented children as another particular group. According to Kotler et al. (2001, p 294), segmented the consumer market based on demographic segmentation. This consumer market has been divided into groups based on age and gender. Methods and Theories Used to Determine Segments Market segmentation is the first step in target marketing. It divides a market into several distinct groups of buyers with different needs, characteristics or behaviors (Kotler et al, 2001, p 293). IKEA focuses its customers on workers and children. These two segmentations are divided based on four theories such as geographical, demographic, psychographic and behavioral. Kotler et al (2001, p294) also describes demographic segmentation as “dividing the market into groups based on demographic variables”. It includes age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality. These two segmentations both take into consideration age, family life cycle, income and occupation. The first segmentation is divided by family life cycle, income, occupation and education; the second focuses on age, gender and family life cycle. Furthermore, psychographic segmentation refers to the method of dividing a market into different groups based on social class, lifestyle or personality characteristics (Kotler et al, 2001, p 297). People belonging to the same geodemographic group can have very different psychographic profiles. Furthermore, the last segmentation method is behavioral. Kotler et al (2001, p 297) suggests “Dividing a market into groups based on consumers' knowledge of the product, their attitudes towards it, how they use it, and their responses to it”. It usually consists of the purchasing occasion, benefits sought, user status, usage rate, loyalty status, preparation stage and attitude towards the product (Kotler et al, 2001, p 295 ). These two segments are both measured in terms of benefits sought and user status. Marketing Mix According to McDonald and Tideman, (1993, p 1), marketing mix is ​​the term used to describe the tools and techniques used to implement the marketing concept. When a company has decided its entire competitive marketing strategy, the marketing mix described as the 4Ps is set (Kotler et al, 2001, p 69). However, McCarthy, Perreault and Questar (1998, p 42) have a more explicit explanation on the marketing mix, suggesting that “A set of controllable variables that the organization brings together to satisfy a target group”. A representative marketing mix involves a product, provides a price, combines some promotions to inform potential customers, and a way (place) to meet those customers (McCarthy, Perreault, & Questar, 1998, p 42). However, in services marketing, there are three broad elements considered by marketers. People seem to be the main benefit of the entire marketing mix, because the entire marketing mix focuses on people such as customers, potential customers andeven employees. Additionally, there are two other Ps to services marketing: process and proof. These two Ps further highlight the importance of people (McColl-Kennedy and Kiel, 2000, p 328). The marketing mix helps marketers win over their target customers. The seven Ps include product, price, promotion, place, people, process and physical evidence across the entire marketing mix. Furthermore, people, processes and physical evidence are three specific elements in services marketing. McColl-Kennedy and Kiel (2000, p 45) explain a product as “A set of attributes (benefits) that a seller offers to the potential buyer to satisfy them”. needs or desires of the buyer". It is the combination of goods and services (Kotler et al, 2001, p 69). The price is the amount of money that customers have to pay to obtain the benefit (product and service). The price agreed upon outcome reflects the customer's perceived value of the products and the competitive atmosphere in the marketplace (Barnes, Meyer, McClelland, Wiesehofer, & Worsam, 1997, p 249). This is a really important issue for both marketing managers and consumers (). McCarthy, Perreault and Questar, 1998, p 46). Then, the third is promotion, which means activities that communicate the value of the product and convince target customers to buy it (Kotler et al, 2001, p 69). of promotion can be grouped into advertising, personal selling, sales promotion and advertising (McColl-Kennedy and Kiel, 2000, p 46). The fourth P is the place described as “The marketing channel used and the physical delivery of logistics for get a product to market" by McColl-Kennedy and Kiel (2000, p 46). It includes objectives, channel type, intermediaries, store locations, and so on (McCarthy, Perreault, & Questar, 1998, p 44). “Positioning involves business logistics and marketing activities regarding the making and distribution of the finished product to target consumers” (Kotler et al, 2001, p 69). The extended marketing mix includes people, processes and physical evidence. They are used in consumer marketing. It is defined by Kotler et al (2001, p 342) as "Products purchased by final consumers for personal consumption". Since the furniture retail industry belongs to the consumer market; these three Ps should be taken into consideration. Therefore, it focuses on staff, managers and all employees in the service sector. The first is the people. As Barnes et al (1997, p 250) described that "The people involved in every transaction have an important role to play and can be an important force in the customer's decision-making processes". Hence, process has been defined as “The process includes the actual procedures, mechanisms and activity flows used to perform the service” (McColl-Kennedy and Kiel, 2000, p 328). This refers to the actual documentation involved in the purchase, the stages of negotiation, the simplicity or complexity in making it (Barnes, Meyer, McClelland, Wiesehofer, & Worsam, 1997, p 250). The last P is the physical evidence that McColl-Kennedy and Kiel (2000, p 328) explains as “The environment in which the service is provided and where the company and the customer interact; and any tangible components associated with the service ". For example, brochures, reports, letterhead, business cards, facilities and even the colors used in the service area décor (McColl-Kennedy and Kiel, 2000, p 328). Products for "Work IKEA" include computer tables, home office chairs, home office desks, organizational tools, storage and work lamps. The computer table is designed to accommodate your computer monitor, CPU, keyboard, mouse, printer and all your other workspace needs. All parts are in one unit and canfit the corner perfectly. IKEA work chairs are height-adjustable and equipped with wheels to best fit your work space. Organizational tools include letter tray, pen holder, magnetic board and cord winder. IKEA containers are available in different sizes, materials and colors to meet your multiple storage needs. Label the outside of your boxes for convenient reminders of what people have placed inside. IKEA work lamps also add style and functionality to your workspace. As known, the price that IKEA charges for products is comparatively lower than other furniture retailers in Australia. The price is much lower than FREEDOM, its biggest competitor. The price of work chairs is around $100-$300 and the price of computer tables is around $100-$500 (http://www.ikea.com.au). According to (2003 IKEA catalogue), if the customer finds a lower price at another retailer within 30 days for an item purchased at IKEA, he or she will be refunded plus a free meal at the IKEA restaurant. This makes customers shop with confidence at IKEA and get the lowest price. During almost these years, IKEA has made many successful promotions for its target customers so that its business has attracted more and more consumers. The best known is the IKEA Catalogue. Each year, IKEA will publish a catalog to local resisters to showcase the latest products in store. IKEA has also created its websites around the world. People can know every detail of office furniture at home instead of going to the store. IKEA also advertises on television to promote products. Place concerns the marketing and distribution channel used to obtain the products. In Australia, IKEA has stores in Sydney, Melbourne, Brisbane and Perth. There are two stores in Melbourne. One is in Richmond, the other in Moorabbin. These two shops are very large and have just opened. IKEA not only focuses on consumers, but also pays attention to its employees. Because well-trained staff can provide better service to customers. Therefore, they took the time to get recruited and train them. When customers are satisfied with the services provided by IKEA, they will choose it again. The process is the set of procedures used to perform the service (McColl-Kennedy and Kiel, 2000, p328). IKEA has a very convenient and fast process that allows consumers to satisfy their wants and needs. IKEA is known to use the self-service method. People can find office furniture in a certain area and then go to the market hall to get the products. Afterwards, they can go to the checkout to pay for the goods. The IKEA store also provides home delivery if the customer cannot bring the goods himself. Physical evidence is all the tangible parts such as brochures, structures and even the colors used in the decor of the service area associated with the service (McColl-Kennedy and Kiel, 2000, p328). For example, IKAE offers consumers very good store conditions. The store conveys a simple and modern image to people. The store offers numerous showrooms where customers can experience office furniture, whether comfortable or not. The home office work showroom also gives you an idea of ​​how to build the workplace. Their physical evidence can lead customers to clearly recognize IKEA to distinguish it from other brands. TV Ads Catalog distributed annually, information on website, ads frequently on TV Easy to get information Place Stores Information, products, showroom Receiving good service People Staff Training: formal, polite, professional Being satisfied Process Choosing products, get the product,.