GCSE Business studies
The type of business that I will be setting up will be an electrical appliance store. I will sell electrical goods like televisions, videos, and hi-fis. Also I will specialise in household appliances, which are used in everyday life. My business will be called ‘Electrical retailer’. Market segments I’m likely to be targeting are those in social class C. This is the skilled working class as I think that the area I’m targeting is represented mostly by this social status. Also I will aim my products at a place convenient to the customers, to those of practically any age.
Marketing is not advertising, it is actually finding out who wants to buy your product. Marketing is finding out what a customer wants, and then giving them that. The goal of marketing is to predict what the customer wants in the future, by looking a past trends, and carry out market research. Promotion is communication between the business and the customer, making the customer aware that the product is for sale and then persuading them why it’s the best in the market in order for them to buy it. Advertising is a method of production.
It will get customers aware of the product being offered for purchasing by persuasive selling techniques. Sources – GCSE Business studies, second edition Alain Anderton The marketing plan is used for the owners of the business detailing recommendations about how best to promote the business during its first year of trading. It will hold information such as the product or service offered, pricing, target market, competitors, marketing budget and promotional mix. Therefore I will be able to predict what and when an objective will be met which will include a time element.
A retail business will have many different objectives; the most important will be survival. To survive a business has to at least break even over time, which therefore can lead in aiming to target making a profit. Also a business can establish a market share, increasing the proportion of sales made in relation to all sales in the market. Finally another frequent objective is to give customer satisfaction, which is to make sure that customers are satisfied with the product that’s being bought. This will gain a good public image.
The aim of “Electrical retailer” is primarily to be able to compete with other companies in the local area. Also to break even, but provide a high quality service to the public. Then it is to make profit maximisation, aiming to make the highest amount of profit possible. For the first year the aim of my business will also be to become a well-established business, and to remain open (not be forced to close due to lack of business). However in subsequent years in may be possible to alter my objectives depending on whether my primary targets for the first year are met.
After a couple of years survival will still be an obvious objective but others may take a higher level of priority depending on the success of the business. New key objectives could include expansion, which would result in opening more branches for example further out and around the country. Another method of expanding is to increase the range of products and add more variety to them. Also you could look for growth in sales turnover ‘to become medium size electrical producer’. SECTION 2 PROMOTIONAL METHODS AVAILABLE The main aim of the advertising that I will do for my shop will be to attract customers and to increase my sales.