There are three main aspects that hmv take into account when promoting a product these are
- Inform the customers about the new product
- Persuading the customers to buy the product
- Promoting the product
The main aim and type of promotion will affect the range and style of the promotional materials. Hmv produces coloured pamphlets and brochures and sends them to addresses of customers. some other methods of marketing can promoting that HMV carries out can be shop floor testing e.g. when the Xbox was to be released HMV then had a console in the store that allowed the customers and the public to sample and play the console and make up their mind about buying one. This proved successful and the turnout of samplers and customers was greater than expected.
There are also two main forms of promotion these are:
- Advertising
- Sales promotion
Advertising:
Advertising can be defined as the presenting of a product to the public to encourage sales.
It is important because it provides the customers with information about a product or service which can attract customers. Hmv makes good use of the different mediums of advertising to attract customer’s e.g. prime time television, internet, radio and all major tabloid newspapers they run ads to notify customers of sales and new stock they also give out leaflets to notify the public of new products and special offers,
Discounts and sales
Sales promotion:
Sales promotion can sometimes be mistaken as advertising but is actually different but the objectives of these two functions are the same the difference is that sales promotion involves some form of incentive wherein the customers can sample a product.
Displaying merchandise
Displaying the goods is important because it attracts the customers and potential customers. The goods have to be packaged in a colourful, eye-catching and presentable manner the packaging must also contain information about the product and instructions of its use this is important
The sales function:
The sales function of a business or organisation is always part of the marketing function the main responsibilities of the sales department are to identify potential customers and encourage them to buy and or deal with directly with customers and customer support.
Finance
This areas mostly deals with the financial (monetary) issues of the business its main is to invest money in areas that will increase the businesses revenue this department work s in unison with marketing department
Here are the functions of the marketing department:
- Keeping track of the Businesses costs and revenues
- How to work out a profit
- Analysing and interpreting financial information
- Providing information about the amount of capital need ed for the business to run efficiently
- Financial documents are used and How payments are made (Methods of making and receiving payments)
- Providing financial information on business performance to managers and stakeholders
- Paying the staff and employees wages/salaries
- Dealing with debts
- Dealing with payments to suppliers
- Making sure the invoices received from suppliers match the goods supplied to the business
One of the main functions of the finance department is preparing accounts, this is recording and keeping financial records and accounts so that the businesses stakeholders can keep track of how much the business is making in revenue and how much is being spent on costs this allows the revenue to be calculated against the cost.
The finance department has to supply accounts to the Inland Revenue for tax purposes and to keep records of all VAT for customs and excise. Another main function of HMVs the finance department is to provide and publish an annual report.
Management and accounting
Obtaining financial information is not the only function HMV s finance department has to carry out it also has to analyse the information it receives. This is important because it helps the managers make decisions about the running of the business and also to find out how well the business is being run. This department has to keep records of all prices and payments, this helps the marketing department decide on prices.
Obtaining capital and resources
One of the aims of every business is to grow and expand into various market ventures in order to grow the business will needs funds to grow so this has to be obtained through shares sold or bank loans.
Paying wages and salaries
The finance department is responsible for paying the employees wages and salaries. HMV uses credit transfer which is one of the safest methods of paying employees, this is a safe method because the money can be easily traced and pay advice can be given to the employees or staff.
CUSTOMER SERVICE
Customer service is very important to both the business and the customer for the business it acts as a means for the customers to receive necessary information about products or services provided by the business or to make suggestions, comments or complaints about any aspect or activity of the business. The customer service department is also important to the business because they could find out from customer’s responses and complaints how to improve certain areas of the business. This aspect of the business also works in unison with the marketing and sales department. Their concern is also to keep up the reputation of the business.
Some of the factors that contribute to good customer service are customers expect that the price of the goods and services are reasonable, a wide range of products which must be available at the right time. The customers also expect a fast service, the payment period for business customers has to be attractive and if the video or c.d s is on the period of loan has to be attractive. Customers can also to pay by cash, cheques, credit cards or debit cards. HMV endeavours to meet these customer expectations by providing a wide range of goods and giving information to customers for example they have a leaflets or magazines showing the new, CDs, DVD’s that are or will be available in the store this also shows how the different aspects of the business work together the customer service department also work in hand with advertising and promotion. HMV also have a website showing the items they have and goods can also be brought online. They have a wide range of tapes, CDs; DVD’s and games to meet a variety of tastes.
Hmv also meet the customer expectations by pricing their goods reasonably and providing offers and sales to encourage customers.
HMV has to consider in order providing good customer service.
1) Polite service
The most important issue in trading is politeness and the businesses attitude towards its customers, HMV s staffs are trained to deal with all types of customers and situations to provide the customers with their needs and expectations.
2) Value for money
Value for money basically means a product is worth what it is being paid for customers hate the feeling of paying for overpriced goods however some customers are willing to pay the extra cost for quality goods or special services HMV endeavours to provide goods and services of premium quality to make the customers happy and wiling to pay the extra costs, they also try to price the goods reasonably and competitively to avoid overcharging its customers and putting itself out of business.
3) Well packaged goods
Goods have to be packaged attractively to catch the customer’s eye and to interest them in purchasing the product, the packaging should also contain information about the product and its uses. The packaging is useful because it also protects the product from damaging; the customers expect the goods to be received by them in perfect condition.
4) Safe products
Acts have been passed in parliament that make it an offence to sell damaged or goods that have met up to the stipulated safety standards and requirements. This protects the customer from businesses that sell damaged, illegal or counterfeit products
5) Product availability
Customers buy goods or services to satisfy their needs and wants. Therefore customers expect to find products when they want them, HMV meets these expectations buy providing quality goods and services at the right time and seasons when they are needed or in large demand for example summer tunes for the summer season.
ADMINISTRATION
Administration this is a department that is divided into different areas like personnel which deals with the internal functions of the organisation administration, secretarial and clerical aspects or the business e.g. filing records and organising meetings.
The administration function
This function deals with the internal housekeeping of the organisation. HMVs clerical costs also constitutes as a percentage of the businesses costs it is ,essential to HMV that this functional areas of this business is run smoothly and effectively
The main role of the administration is to provide office services all the main departments in the business
Collecting and distributing mail:
Hmv s administration department deals with all the collection distribution of all mail pertaining to the business as a whole.
Because HMVs stores are not very large the mail is collected and distributed very quickly and efficiently .This is an advantage because in very large companies, mail has to be sorted in a special room that receives and delivers it to their receivers. In the case of hmv the mail can be immediately opened which means that the business can go on normally without disruption.
COMMUNICATION
Dealing with and responding to enquiries:
A businesses success is determined to a great extent, by the way it deals with enquires from its stakeholders and the level of communication between the business and its stakeholders the administration department is always the first point of contact when stakeholders call , this department is most likely to be able to deal with enquiries including customer enquiries. In this way the administration department fulfils an important customer service function HMV has learnt to deal with enquires by establishing an effective communication system.
Organising meetings
Human resources:
This department is responsible for recruiting staff and all aspects pertaining to the staff and employees (personnel) it is there to make sure that employee can effectively and safely carry out his duties .they cover the following areas:
Recruitment, retention and dismissal:
This basically is follows the recruitment process, there are two main types of recruitment i.e. internal recruitment this is recruitment open only to employees of the business, hmv carries out this type of recruitment when there is an opening for a particular spot in the business. Some of the methods of internal recruitment include staff notice, staff magazines, and office notice boards. This form of recruitment is not costly and can there is no risk involved because the employer already has some knowledge of the person filling the vacancy.
The second form is external recruitment which is open to candidates who are outside of the business hmv carries out this type of recruitment during summer and Christmas to help provide temporary cover during busy seasons this type of recruitment can prove to be costly to the business because advertising has to be done in local papers, the internet, job centres, local schools and colleges.
This department is not only responsible for recruiting; it also carries out disciplinary action against employees. It also negotiates the rate of pay and hour’s employees have to work. It is also responsible for publishing and informing employees about starting hours and changes to business opening and closing times. Here is the most recent chart showing the HMV Woolwich branch opening hours:
Mon – Wed 9:00 to 5:30
Thur & Fri. 9:30 to 6:00
Sat – 10:00 to 7: 30
Sun – 10:00 to 3:30
Health and safety
Health and safety wise personnel it is responsible for training the staff in the health, fire and first aid procedures.
This department is required by law to assess the risks in the work place this activity is undertaken so that the employer can take precautions to avoid accidents happening in the work place.
HMVs personnel department has to take five steps in assessing risks in the work place i.e.
- Looking for hazards in the shop floor and its environment
- Deciding who might be harmed and in what way
- Evaluating the risks and deciding whether the existing precautions are adequate
- Recording and storing the findings
- Reviewing the assessment and to make amendments if necessary
Training, development and promotion of staff
This is the training of new staff and employees there are two types of training i.e.
On the job training which is done on the premises this helps the new staff because it helps to familiarise them with the site hmv does this type of training because it saves time and is very effective
The second type of training is off site this is done away from the business site or premises
Maintaining staff records:
It is very important to maintain and store records in an orderly manner because it can be useful for future reference the personnel department is responsible for storing all the information and record of all employees of the business.
Employee organisations and unions:
The personnel department is also responsible for the welfare of its staff so it is has some organisations and trade unions which main concern is the workers and their rights.
Cleaning and maintaining the work place security:
Providing security for the business premises and customers and staff is paramount to every business dirty business premises does not help to promote the business image so the premises and its surroundings have to be cleaned regularly. HMV has a signed contract with a prestigious cleaning company and the stores are cleaned every night after closing time but this sometimes proves costly and sometimes there are extra costs involved.
Filing and keeping records
This is and important function because every business deals with paperwork and documents this paperwork has to be filed correctly and neatly and has to be accessible in the quickest possible time. It is important to keep records because it they can be used for different reasons e.g.
- future references,
- information about sales figures,
- to provide information to stakeholders
The administrational department of the business is responsible for the filing and storing or records, a secretary or filing assistant is specially recruited to by the personnel department to carry out this task.
Hmv uses a computer filing system to store all its documents and data this is an advantageous method because it illuminates unwanted papers, files and documents taking up officer space and littering the premises. Here are some of the benefits of effective filing and storing of business documents:
It can provide up to date information and this can be found easily which is important because it can also help the business answer to quires from stakeholders quickly and efficiently. Effective filing methods can help save time and effort when finding relevant information or documents.
Other functions in this area include
Data and word processing
Photocopying
Dealing with emails
Switch board and reception