Analysis of Marketing Mix - Research Paper Example

Analysis of Marketing Mix An organization requires adequate planning structure to explore it full potential. This includes allocating resources such as capital and people in response to changes in the market. Products define the success of a business, and product development is vital for accomplishing business mission. Investing in product development can be achieved through human resource and enterprise planning. Marketing department is highly invested on for identifying customer needs, test new product lines, and produce information to be used in the field. Developing high levels of productivity through product development gives a business a competitive advantage in the market. This includes increasing the number of products in the market while maintaining quality and low production costs. Product development ranges from identifying customer needs to designing activities that analyze and refine new ideas. These ideas bring about new products or refine existing products. Unique, high quality and affordable products give a business an advantage over competitors (Brassington and Pettitt, 2005). Beauty for price Hairdressing has faced steep competition from similar businesses in the region. Product development requires intense marketing especially in a competitive industry. Investing on marketing involves advertising, employing human marketers, promotions, and other activities that sell out the business. With the upcoming events, the salon needs intense marketing and reorganizing the business process. This includes buying better hairdressing equipment and employing more hairdressers. Human resource is necessary for service delivery. Events such as sports and conferences have several participants and more workers are required to handle the large numbers effectively. Employing experts improves the quality of services offered which surpass competing businesses. Introduction of new business services such as massage, manicure, pedicure and other related services can also increase the number of customers (Adcock, Halborg and Ross, 2001). Businesses distribute their products in different ways to provide customer convenience. Distribution methods depend on the type of business and its intended customers. Global companies have distribution centers in several regions around the globe. Products are dispatched from the distribution center nearest to the customer (Jobber, 2010). This reduces distribution cost and time required for the product to reach the customer. Retailers incorporate several distribution methods that focus on customer satisfaction at a minimum cost. Efficient and pleasurable shopping experiences that meet customer needs and market demands are required by business organizations. Most customers prefer businesses providing quality and convenient services. A salon can introduce mobile services to their customers. During major events, most participants reside in hotels and prefer room services. Starting mobile room services would serve as a boost to business activities (Jones Mothersbaugh and Beatty, 2003). E-commerce and advertising through the internet is another way of ensuring availability of products. Customers can access the business website to learn about their services and book appointments. The distribution channel in a hairdressing business consists of wholesalers who sell and supply products to the salon. The salon then uses the products to offer services to customers. Maintaining a constant link with suppliers is necessary for constant availability of products for customer convenience. The business location also determines customer convenience. Customers prefer business locations that are easily accessible. A salon business should be located in a secure and convenient location such as a busy street. Businesses located along streets are easily noticed by customers and they are accessible at any time of the day and season. Security agents in cities and towns are vigilant and customers feel secure when attending such businesses. Product prices are determined by several factors such as production cost, demand and supply, transport costs, business objectives, and market conditions. The management determines which products to engage in and evaluates different factors to determine the market prices. In most cases, pricing depends on business objectives and the current management. Poor performing products are always cheaper or discounted. A business can also regulate its prices to outdo competitors. Lowering prices below competitor price level gives a business a cost advantage. Well recognized businesses or brands can have standard prices, but new businesses usually start with lower prices. Previous business trends also determine current pricing when a business evaluates its product prices (Fyall and Garrod, 2005). Beauty not expensive is an upcoming salon in a competitive market. Currently the business has few customers and one requirement for success is an improved number of customers. Lowering prices is necessary to give the salon a cost advantage. Certain services can also have discounts or accompanied by prizes. However, cost reduction and discounts should not fall below the production cost. Quality hair services give customers value for their money and the business can have relatively high prices. The main objective of a business is profit making and pricing should give the business owner a profit margin as desired. Product prices should not compromise business objectives but should aim at attracting customers. Promotions include displays, exhibitions, samples, coupons, and contests. These activities are part of marketing strategies employed by a business. Promotions encourage impulse buying, increase consumption, neutralize competitors, and introduce complementary products. Advertising targets a specific group of customers and aims at changing perceptions and prospective of customers. A business has to identify specific products for promotion and engineer ways of achieving effective promotion (Kumar et al, 2009). This includes determining promotion cost and expected returns. Analyzing the local retail market and shopping trends is necessary. This includes evaluating the number of customers who purchase a particular product and the frequency of purchase. Promotions may reduce the profit margin and increase competitive retaliation. Promotions in the beauty and hairdressing industry can come in form of price reduction. The salon is not well established and price reductions can serve as part of marketing promotion. This reduction can affect all services or be applied on specific services. Another form of promotion is price coupons. Several services can be performed as a package under a specific price. A fixed amount is charged for a group of services in the business. The salon can plan an open day for service sampling. This deals with offering certain services without any charges. Customers test the quality of services offered by the business and some of them may prefer the salon for those services. Promotion activities can also collect feedback from customers. They provide an opportunity to interact with customers and Mrs. Rice can collect views regarding her services. The physical layout of a business is another element of marketing mix. This involves things like arrangement of chairs, hair dressers, sinks, and decorations in the salon. In the service industry, customers interact with the business premises and an appealing layout is necessary. A salon requires a spacious and pleasant waiting area, with reading materials and/or refreshments. These will keep customers busy as they wait for their turn to be served. Equipments such as air conditioners or fans improve the physical layout of a business. Customers are loyal to businesses that provide satisfactory and high quality services. Customer service also deals with communication with the business owners and employees. Services such as query response and customer approach determine the relationship between the business and customers (Wenderoth, 2009). Customers prefer quality services irrespective of the prices. Training employees on customer relations is important for improving the type and quality of interaction with customers. Service processes are also incorporated within the marketing mix. Processes refer to the way a certain service is delivered to the customer. Service delivery should uphold the quality of services offered by the business. Handling customer requests and complaints is part of service delivery. Business owners require a quick response to customer requests and complaints. Gentleness when dressing a client’s hair and politeness when communicating with them attract more customers to the business. Increased demand for services requires delivery that upholds the quality of services. A business can have market from other businesses or individuals. Organizations purchase goods in bulk for refining, resale or as raw materials for their products. Individuals or consumers purchase finished products for personal or family use. Products ordered by organizations are customized. An organization orders standardized goods with specific specifications. Customer preferences depend on fashion, color, description, and taste. Purchase trends by individuals change depending on fashion trends in hair styles. Individual purchases depend on decisions of an individual or family. Organizations have departments or teams that carry out purchases. These teams engage in formal complex and expensive purchases on behalf of the company. Individuals purchase products depending on their needs and preferences. Products and services less preferred by individuals may have little demand and are required in small supplies (Pride and Ferrell, 2012). Organizations purchase products depending on the demand for their finished products. Products that produce final goods with high demand are purchased in huge quantities by organizations. Marketing goods targeting individual customers requires extensive geographical areas to reach as many customers as possible. Businesses targeting other business organizations have to identify specific organizations for their products. A business has to incorporate products and services that target a diversified market. This requires targeting both organizations and individuals. A hairdressing business can target individual customers and organizations such as hair and beauty colleges. A salon can have a contract with such colleges to provide extended training to students. A business must match its services or products to its target customers. A balance in price and effective communication to target customers provides a regular market for products and services. A service is an intangible commodity or activity that provides benefits and creates value for customers depending in their desires. The customer does not obtain an exclusive ownership of purchased commodities. Services benefit the customer by creating satisfaction for certain needs. Beauty not expensive is a service business. Customers have a need for neatness, which is provided by hair dressers. A beautician provides services such as plaiting, haircuts, manicure, pedicure and other services to satisfy customers. Services are intangible due to lack of physical presence. The customer cannot touch or taste services but can only see its outcome. Services are perishable just like goods. They cannot be stored and are wasted when unutilized (Moeller, 2010). When a beauty salon lacks customers, its services are lost and cannot be recovered. Service creation and supply occur simultaneously and therefore it cannot be separated from the producer. A service such as hairdressing cannot be separated from the beautician. Services lack standards due to their heterogeneous nature. The quality cannot be standardized and the customer can either pay a very high or very low price for a service. Different customers have different perceptions and rate services differently. Customers can have different preferences for the same services and they pay different prices depending on their satisfaction. Services lack ownership unlike goods. A customer acquires ownership of goods after purchase. Customers can only access a service but cannot own it. A service benefits the customer depending on delivery process but cannot be owned. Goods have different channels of delivery to customers. Delivery channels for services are limited. A customer can access a service by visiting the service provider or the provider can visit the customer. Services cannot be transferred through different channels of distribution (Rothkopf, 2009). An evaluation of cultural differences between different societies is important before engaging in international business. Different cultures have different business methods, dress codes, religion, and diet which affect business activities. Purchasing decisions of customers are influenced by their culture. Religious differences determine the times people from certain cultures can participate in business practices (Cateora, and Graham, 2007). For example, Muslims fast during Ramadan and food businesses have reduced sales during the Holy month. Different cultures define different roles for each gender. Asian and Middle East cultures treat men and women differently compared to European cultures. This affects business activities for men and women. Muslim and Asian cover their hair as dictated by their culture. This limits the need for certain hair styles that they can wear. A hair dressing business organization experiences a limited market for its services. Conflicting cultural practices of a given society results to loss of faith and business preference for a particular organization. Failing to respect cultural believes of a certain society drives away customers resulting to loss of revenue. In china, the opinion of the majority is greatly sought after. Marketing strategies that do not achieve the opinion of the majority fail to penetrate the market. References Adcock, D., Halborg, A., and Ross, C. 2001. Marketing: principles and practice. Harlow: Financial Times Prentice Hall. Brassington, F., and Pettitt, S. 2005. Essentials of marketing. Harlow: Financial Times Prentice Hall. Cateora, P. R., and Graham, J. L. 2007. International marketing. Boston, Mass, McGraw-Hill. Fyall, A., and Garrod, B. 2005. 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