Business Environment Hnd

merchandising is a process wontd to satisfy and consider what crossroads or operate ar needed by the consumers. There atomic number 18 many option definitions of trade such as the charted institution of marting merchandise is the focus process responsible for identifying, anticipating and substantive node requirements profitably. The Ameri female genitalia merchandise Association believe that Marketing is the process of jutning and executing the conception, set, promotion, and diffusion of ideas, goods, and services to create transfigures that satisfy individual and organization goals.Philip Kotlerinterprets that merchandising is satisfying needs and wants through an exchange process the common interest in on the whole three definitions is fulfilling customer needs and providing clears The sm in every worry attempt that I feed chosen to discuss is called Hair instantly this is a professional tomentum cerebri salon that is situated in the heart of Kentish t own for over 30 years. Hair today has a total of 20 employees, including hairstylists, hair washers and administration staff, including a cashier.The salon offers many services such as styling hair, men haircuts, colouring, perming. The marketplaceing process consists of four elements Situation Analysis, Marketing Strategy, Marketing Mix Decisions and Implementation look into. Situation summary is when through an analysis the smart set finds the customer needs but in order to do this the company must recognise its own potential and the environment in which it is managing.Situation analysis should look at all the factors of the company such as the past where the company is now and where it should be in future. This analysis provides problems on that point are fra utterorks which help the situation analysis such as organise and PEST analysis. SWOT analysis refers to the strengths, weaknesses, opportunities and menaces facing a business The market strategy is to ensure the tar get market is being pursued. The strategy consists of cleavage, targeting and lay the growth within the target market.Marketing Mix Decisions at this stage detail decisions are being made such as the development of the proper(postnominal) product, designing and producing the first pieces of the product and also pricing decisions Implementation and Control is the final stage of the merchandise process the results of the marketing progress should be monitored when the market changes the market mix skunk also change to fit to the consumer needs as time goes on a juvenile product can even be produced although this is the last tage of the marketing process changes give always occur to satisfy different consumer needs Companies continue to outlive by achieving their languish-term goals. Market orientation helps to achieve the business goals and objectives a business which adopts market orientation thinks that its most important imaginativeness are its customers. The benefits o f adopting market orientation for Hair Today is that through market research the hair salon testament have a inviolate ground of the needs of the customer.Customer feedback is vital to the company companies tend to be in like manner involved with the product that they forget about the general customer felicity for example hair salons have a wide word form of market reach and also a great deal of competition. The costs of adopting marketing orientation for Hair Today would be the high costs for the market research this the constant internal change as needs of the customers are met. Macro environment are the outside uncontrollable factors that may bushel a managers decisions this can have an effect on the company the PESTEL personate framework is used.Political factors such as government policies and the economy also sweet laws on small businesses Political factors can have a abundant effect on many areas for business like education and the prime(a) of health care. The hair practiceing perseverance is having difficulties recruiting although some government funding constitution has helped it has a vacancy rate of 20% also the government increase the taxes for businesses this has had a huge effect. Economic factors influences marketing research such as interest rates also the changes in the economic growth and exchange rates.All businesses go through an economical ups and downs in an economic boom all businesses resulting benefit although if can go down and businesses can hurt out. Currently hair treatment products are not considered a need more than of a luxury so this market is dependent on how strong the economy is. Cheap credit and interest rates benefited the hair industry in the past. Social factor refers to behaviour patterns and lifestyles. Changes in consumer behaviour can also have an effect on changes in bearing . Currently we have an ageing population. Social change gives companies a understanding for the future market situation. Ha ir Today bequeath have to conceal up with the latest fashion and styles which may vary between ages. . technological changes are the amount of new technology that is increasing electronic communications has made it easier to distribute information. Hair salons must sustentation up with the new trends and technology as this helps develop the company and make them more palmy Employees will research the newest technologies in the market do some experiments use models try new haircuts if the experiments turn out to be a traceer it will apply to salon.Micro environment are factors which are internal this affects the business performance such as customers, competition, suppliers, human beings, employees and stakeholders. If a company decided to break away to a public ownership they list their business in the stockpile market so the public can invest in the company although share holder relationships must be professionally managed to succeed long term goals. Identifying the stake holders Potential stakeholders at Hair Today Your chief Shareholders Government Senior executives Alliance partners Trades associations Your co-workers Suppliers The press Your team Lenders Interest groups Customers Analysts The public Prospective customers Future recruits The community Your family Some stake holders are more interested and involved than others to narrow down the tribe a antecedent/interest grid is used. The grid shows that the people that have the high indicant and are more interested in my company these are the people who I will engage with and make great efforts to satisfy.Corporate culture determines how the employees and high management interact these transactions occur over time. Hair Today has an employee friendly corporate culture it is shown by the companys dress code, flexible working shifts , employee benefits such as employee discounts the treatment of the invitees and overall client satisfaction. Porters five forces was first introduced by Michael E. Porter of Harvard blood line School in 1979 the five forces are a framework to help businesses determine the contest intensity and industry profitability of a market.The five forces consists of threat of mew entrants to a market, the power of buyer, the power of the suppliers, the threat of substitute products and the competitive competition between al glance overy existing companies as shown in the diagram below. partition is the process where larger markets are broken down to smaller divisions this will make it easier to understands the wants and needs of the customers the overall outcome would be creating a marketing mix that is suited or the customers in the target segment. The four principal(prenominal) factors of segmentation are behavioural, demographic, psychographic and geographical.Geographical segmentation is segmented by country, city or neighbourhood. Age, family size, income, occupation, education, ethnicity and religion can all be segme nted demographically. Lifestyle, interests refers psychographic segmentation. Behaviour segmentation refers to customers buying behaviour, product mix also frequency of purchase the outdo form of segmentation is using all four factors as they all are very helpful. Hair salons have a wide variety of customers to attract on that pointfore segmentation is very vital for this business to succeed in the future.The devil products or services that Hair today will provide a bridal service to attract pistillate customers where they will be pampered and receive a makeover the target market for this service is female aged 20-35 with a balanced income also the other product I will be proposing hair is extensions this will attract the teenage customers and women. The marketing strategy I have chosen for Hair Today is surd strategy focussing mainly on only one segment this can be positive for the salon because the business will have more knowledge on the particular segment.Females aged 13-19 there are many teenagers in this area which the salon is situated this is due to the schools in the area. Hair Today believe that the target segment will benefit from the service of hair extensions as this is a increase fashion although there can be a lot of competition which leads to Threat of main(prenominal) segment rivalry. New salons may decide to open up this refers to the threat of new entrance also there are many products already provided in the market that teenagers can use themselves so the salon is not needed this is known as threat of substitute product.The threat of growing bargaining power of buyers is very important because the higher the charges the more likely the customers are to move to a cheaper salon. Buyer behaviour is attitudes of the customers and how often they purchase. purchase behaviour involves the process in which a customer finds a product studies the product and makes an overall decision on whether the product meets the customers needs and wants. The main types of buyer behaviour are consumer and industry two types of buying behaviours are impulses purchases refers to when a purchase is made with no plan this purchase is associated with items of lower prices. Extensive decision making these are products which are higher priced such as TV and cars when customers research as practically as they can they may also ask family and friends for advice or read reviews this decision making takes up a lot of time because the customer is purchasing a product that is high priced Buyer behaviour stimulation response modelBuyer behaviour is essential because it makes you understand what your customer. Market research and producing surveys will help you find the customers needs and requirements. Social media sites are the most universal process in business marketing this allows customers to interact online and new products can get instant feedback. Many businesses introduce discounts to maintain loyal and ordered customers. Companies det ermine how much customers spend the products which are being sold and judicial decision on how often customers are spending helps introduce a pricing policy for Hair Today.Hair extensions portray varied opinions some customers keep up with new trends and may want a different look so far other members of thecommunity might find it doesnt fit their customer needs. Hair today will start this positioning process by advertising on the internet and offering hair treatment for all types of hair also free samples of exclusive hair products. The hair industry are forever striving to keep up their image and keep their product current a change in positioning can attract new target market. References Assael, H. , Reed, P. nd Patton, M. (1995) Marketing Principles and Strategy Harcourt-Brace, Sydney Business study guide edexcel marketing principles pp. 479-659 Habia (standard information solutions) Skills Foresight for the Hair and peach Sector 2007 http//www. habia. org/uploads/Skills_Foresi ght_2007_v. 4_-_2. 07. 07_Final. pd Lamb, W. , Hair, J. , McDaniel, C. (1998), Marketing, (4th), South-Western College Publishing, Cincinatti. Kotler, P. , Armstrong, G. , Brown, L. , Chandler, S. A. (1998), Marketing, (4th), Prentice Hall, Sydney www. businessdictionary. com