Transcript SIBXPSM5003A Promote a personal services business – blended

SIB50210 Diploma of Salon Management
BLENDED DELIVERY
LEARNING AND ASSESSMENT
MATERIAL
SIBXPSM5003A Promote a personal services business
DEMONSTRATION UNIT DELIVERY STYLE complete unit contains 25 pages
Initial Impact P/L
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SIBXPSM503A Promote a personal services business
This unit describes the performance outcomes, skills and knowledge required to develop and implement marketing
strategies, to expand both the client base and business turnover. The unit describes the function of regularly
developing and integrating a full range of marketing strategies and tasks to expand and diversify the client base,
maintain and improve client re-booking, and increase average client spending in a personal services environment.
Ongoing monitoring and adjustment of marketing activities, along with evaluation of business performance, are also
required to achieve ongoing business success. This unit contain employability skills.
Application of the unit.
This unit applies to the full range of personal services industry sector environments and may include single or multiple
outlet businesses. Personal services managers may also be small business owners and are required to apply initiative
and judgement across a broad range of management functions.
Competency field: Personal services management
Performance criteria covered within this training programme
1.1,1.2,1.3,2.1,2.2,2.3,3.1,3.2,4.1,4.2,4.3,4.4,4.5,4.6
FORMATIVE TASKS.
Formatives are activities located throughout the learning material which you need to complete and submit to your
trainer for comments. They allow you to continually demonstrate your ability to perform the required skills and
knowledge for this unit.
SUMMATIVE ASSESSMENTS.
The summative assessment uses the performance criteria, range statement, critical evidence and employability skills
as the checklist for demonstration of the required skills and knowledge. Your trainer will deem you either
competent or not yet competent based on your performance in the summative assessments.
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Student assessment guide
There are two summative assessment for this unit.
ASSESSMENT A. DEVELOP MARKETING STRATEGIES AND THE MARKETING MIX FOR A SALON. DOCUMENT
ASSESSMENT
Using the skills and knowledge you gained throughout the formative assessments you are to develop the marketing
activities and the marketing mix for a hair or beauty salon. You are required to analyse the salon’s current operations to
determine marketing objectives for improved performance in service and product sales. Based on the objectives, you
are to identify customer demographics and new target markets. The marketing mix must contain relevant personnel
and resources required to deliver the identified strategies with a budget and expected outcomes to be included. Effects
of legislation must be considered. You will be assessed on demonstration of your skills and knowledge on the subject.
ASSESSMENT B. CONDUCT A PRESENTATION ON HOW YOU WOULD IMPLEMENT AND MONITOR THE MARKETING
STRATEGIES. VERBAL PRESENTATION ASSESSMENT
You are to conduct a verbal presentation in front of your trainer on how you would implement the strategies using
professionals and staff in the process. You are to describe the risks and benefits that applied to the performance gap
strategies you used and describe your procedures for monitoring and recording the marketing outcomes. Describe your
ongoing research strategy for evaluating changes in the market place. Your trainer will ask you questions during your
presentation to determine your depth of skills and knowledge on the subject.
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Marketing
Marketing is the process of supplying or satisfying the wants and needs of the customer. It involves all the decisions and
actions required to create sales for the business. Marketing aims to give people what they want in the most profitable
way for the business. Effective marketing produces satisfied customers who return and tell others about the business.
Marketing requires the establishment of an effective and achievable plan in order to make sales and achieve profits.
The marketing plan is a written document detailing marketing and financial objectives for each product and service the
business provides. It sets out programs, costs and timings as a guide for the marketing activities of the business.
The marketing plan is concerned with actual budgets and marketing tactics that will be employed. Marketing funds
should be allocated to business promotions, consumer promotions or more advertising.
There are benefits a business can expect to achieve as a result of developing a marketing plan which;
1. Provides a clear marketing action plan to follow.
2. Establishes priorities.
3. Allows all aspects of the business to support the marketing programme.
4. Sets measureable business goals against which marketing performance may be judged.
5. Establishes a base for follow-up planning.
6. Allows examination of the assumptions behind the profit and loss statement.
7. Provides an avenue to sell new and innovative products and services to customers.
8. Provides for marketing continuity during staff changes.
9. Enables business owners and managers to test marketing activities for consistency with business objectives.
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Customer oriented marketing
The correct approach to marketing is to be customer oriented. The process is to put the customers’ needs first in all
customer dealings. This includes personal selling, customer enquiries, servicing and customer complaints.
The main characteristics of a customer oriented business are;
•Marketing decisions are based on a knowledge and an understanding of what customers want.
•Profitable sales volume.
•Wide product or service range.
•New additions to the product and services provided.
•There are high standards of customer service and good customer relations.
•Market research is conducted frequently.
•Competitors are continually monitored.
•New opportunities are sought to expand the business.
There are three categories that divide products.
Product differences. This involves the ingredients used in the product, how those ingredients work, the ways to use the
product and the different types of packaging of the product.
Pricing differences. This is the retail price of the product, the size of the packaging, the amount of product you get in
the packaging and if they are discounted or have a gift with purchase as an incentive.
People differences. This is based on the skills of the sales person to sell more to the customers through providing good
customer service.
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Demographics of consumers
Demographic is the process of defining and subdividing a large homogenous market into clearly identifiable segments
having similar needs, wants or demand characteristics. Its objective is to design a marketing mix that precisely matches
the expectation of customers in the targeted segment.
Demographics allows a business to divide customers into;
•Age.
•Gender.
•Family size.
•Family life cycle - single, married with or without children.
•Income.
•Occupation.
•Education.
•Religion.
•Race.
•Nationality.
•Social status; lower, middle class etc.
FORMATIVE 1. ANALYSE WHAT MAKES UP
A DEMOGRAPHIC GROUP. DOCUMENT
Go online and visit a municipality website that
provides information about the demographic
group of residents in your area. Submit your
findings to your facilitator.
Promotional activities.
•Personal selling is verbal or face-to-face communication with potential buyers of the product or service with the
intention of making a sale. Personal selling may focus initially on developing a relationship with the potential buyer, but
will always ultimately end with an attempt to 'close the sale‘.
•Direct marketing is targeting a person or a company by sending things such as fliers, emails, postcards or sales
presentation letters with the objective of generating new business or raising the profile of an organisation or product.
•Advertising is paid messages which can be delivered using newspapers, radio, television, magazines or through the
web.
•Public relations or publicity is messages sent to the media or general public to build a good corporate image. The
important thing is to have a newsworthy item to tell people about.
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External environments
External environments are events outside the control of the business that affects its performance.
There are seven external environments.
1. Social environment consists of the behaviour of individuals and groups of individuals in society.
2. Competitive environment consists of all the other sellers who are after the same customers.
3. Economic environment includes the income and wealth-generating ability of the customers and wider economy.
4. Technological environment is the application of invention to develop new ways of doing things.
5. Physical environment consists of the geographic and raw materials of the country.
6. Legal and political environment is the rules and regulations of society.
7. Ethical environment is the moral behaviour that society imposes on business.
Changes in the Australian household.
•
Many households have dual incomes. This can be a necessity for financial demands or a career choice.
•
Families are becoming smaller.
•
More people are choosing not to marry or marrying many times.
•
Australian population is ageing.
•
Australian immigration policy is encouraging new migrants which has widened cultural influences.
All these changes have direct affects on businesses performance.
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Product life cycle
The product life cycle represents the stages a business or product moves through from its introduction to the market to
its disappearance in the market. There is no set time frame for a product life cycle.
Strategy
Introduction
Stage 1
Concept for
product or service
Promotional
activities
Minimal variation
Growth
Stage 2
Stage 4
Maximum
acceptance
Drop in sales
Good income
Steady income
Drop in income
Adverse factors affecting product life cycle can be;
1. Internal;
•
Lack of planning.
•
Lack of motivation, becoming too comfortable and not trying.
•
Lack of income to keep up with the changing demands of the market.
2.
•
•
•
Stage 3
Decline
Increased acceptance
Un-known market
acceptance
Large amounts of funds
spent on promotions
Maturity
FORMATIVE 3. WHERE ON THE
PRODUCT LIFE CYCLE DOES YOUR SALON
SIT? DOCUMENT
Submit your answer to your facilitator.
External;
Changes in the economy and consumer buying habits.
Civil unrest or natural disasters.
Lack of raw materials and changes in legislation.
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Marketing mix
A marketing mix is the variety of activities and promotions chosen by the business to create sales.
Marketing activities consist of the 4 P’S.
Product – an item, service or idea that is created to fill the needs of customers. Look at the product or service through
the eyes of the customer. A business should sell products and provide services that they know the customers are
needing or wanting.
Price – the price charged for the product or services. What does the product or service cost the business to produce?
What price will the customer pay? The true price for a service or product is as much as the customer can stand as long
as the customer believes they are getting value for money.
Promotion – the communication and activities created to attract customers. An advertisement must have a benefit in it
for the customer the business is trying to attract. It must create interest and stimulate the customers desires to have the
products and services being offered.
Promotional strategies could be to;
Provide information – brochures, price lists etc.
Differentiate – how much better your business is compared to your competitors.
Stabilise sales – offer discounts in down times.
Place – also known as the distribution of the product. How or where will the customers receive the products or
services? Will it be in store, mail order, internet sales or door to door? The places where products and services are
distributed can include business association meetings, school councils, local offices, shops or factories.
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Sample of marketing calendar.
Activity
Release of salon website
Client information evenings
Commencement of new service
Employ new staff member
February
×
March
April
May
×
×
×
June
×
×
July
×
×
Strategic planning for new products
Existing products
Existing markets
New markets
New products
Market penetration
Product development
Market development
Diversification
Explanation of strategic planning.
New products can be put into 5 different areas.
1. Products that are very different and create a brand new market. Product development and Market development.
2. New products which fit into an already established market and allow a company to sell it for the first time.
Diversification.
3. Existing product line additions. This could be the same product just in different packaging being a new shape or size.
Market penetration.
4. Cost reduced products are products dropped in price. These are sometime used to get customers hooked into the
product only to raise the price later on. Market penetration.
5. Improvement of existing products. These are products that have been improved in texture, feel, colour, smell.
Product development.
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Calculating expenses
•Fixed costs - items such as rent, council, water rates and staff wages etc.
•Variable costs – items such as purchase of product for use and for retail sales, electricity, water usage, phone, overtime
payments for staff etc.
FIXED AND VARIABLE EXPENSES – first 6 months
Fixed item
Total fixed items
Cost $
Total cost
Variable item
Total variable items
Cost $
Total cost
FORMATIVE 5. COMPILE A LIST OF NEW PRODUCTS AND SERVICES YOUR SALON WILL IMPLEMENT IN ORDER TO
EXPAND MARKETING OPPORTUNITIES. DOCUMENT
You are to make your own template of items and their costs, either fixed or variable. Total both amounts. Submit your
template to your facilitator.
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Performance gap situations continued
Product strategies can include the activities of;
•Changing, modifying or improving products and services.
•Changing the product mix.
•Introducing new lines or deleting some services or products.
•Changing the service procedures.
•Changing the manner or style of service.
Pricing strategies can include the activities of;
•Changing the prices.
•Becoming price competitive.
•Creating value-added offers.
•Introducing flexible payment terms.
Promotional strategies can include the activities of;
•Improving sales techniques – handling customer enquiries.
•Improving sales presentation techniques.
•Re-arranging the display mix.
•Introducing new promotions.
•Changing the advertising approach.
•Organising better brochures.
•Increasing or decreasing the promotional budget.
•Using direct email.
•Changing the signage on the business.
•Organising publicity – unpaid media.
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Monitor product stock levels
Stock count.
•Make up a list of all products, professional and retail and count each one.
•Check for any stock that may be out of date, old, smells bad or has been damaged.
•Check to see if the stock you have sold matches with the stock you have counted.
•If there is a difference could it be that you have not recorded every sale or some items may have been stolen?
Re-order of stock.
•Before ordering more stock check with your sales figures to see in there are any sales trends that will tell you which
products are the fast or slow sellers.
•If you are planning any promotions as part of your marketing concept then allow for extra sales.
•Place your order with your supplier making sure you are able to afford to pay for the stock.
Rationalising stock.
Keeping up to date with the latest in products is essential for you to remain competitive. Customers like new things. This
will require that some of your stock may need to be updated or deleted if it is not selling. The lack of customer sales for
those products will tell you what to do.
Deleting services to maximise profits.
Sometimes you will need to delete services that are not bringing in the income that it costs you to offer them. You need
to continually check your sales records to determine what is profitable and what is not.
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Monitoring the success of marketing and promotional activities
All businesses need to evaluate their marketing goals and strategies in order to grow and become ahead of their
competitors.
This monitoring can take place by;
•Monitoring of the marketing activities conducted over the past year.
•Asking staff or other relevant people on ways to improve the marketing performance.
•Conducting customer service surveys on the effects of the marketing campaign.
•Keeping up to date knowledge on market trends, both local and international.
Ongoing research is required.
To assist with this process answer the following questions.
•Will the business change any of its services? If so what will they be?
•Have you noticed any changes in the types of customers coming into the business?
•Does the business require additional services and products to keep up with the changing market? If so which ones and
what will you be getting rid of?
•What new promotional activities do you need to implement?
•Will your business be changing its prices in this year? If so why?
•Are you planning to expand your business and if so what are those plans?
Recording data.
It is essential that a business has back-up data facilities for recording all business activities. There are many business
management systems available covering a wide variety of industries. These systems can assist with the organisation of
marketing research and tracking the progress of the sales towards achieving the marketing goals.
This completes the learning material for this unit.
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SUMMATIVE ASSESSMENT A. Marking criteria
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SUMMATIVE ASSESSMENT B. Marking criteria
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