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external influences

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External influences Competition All businesses face competition. Competition can be local, national or international. Competition is the main reason why shops close down or expand. The most competitive business will be the most efficient. With 44 stores located in 38 towns around the United Kingdom, Richer sounds still have competitors. Because richer sounds is trying to offer their customers the best value and quality possible and the best customer service, the marketing and sales department sends out a mystery shopper to check upon the local competitors. Three ways which are used to check upon the competition are: * Each store has to check the prices of competitors in their area and fax a weekly competition checklist to Purchasing. * From time to time carrying out official benchmarking exercises when checking the prices advertised by competitors and see how to compare it. * A mystery shopper also visits the competitor's stores to check their customer service and compare it with theirs. Richer Sounds stores must take action if a competitor is offering the same product for a lower price and cut the competitor by around �10 depending on the products cost. It must then inform Purchasing, in writing, that it has taken this action. Purchasing will compare this price against the information received by other stores in the weekly checklist and richer sounds will then reduce the price nationally if a number of competitors are offering the same item more cheaply. ...read more.


The Union also wants to reduce emissions of dioxins and acid gases such as nitrogen oxides, sulphur dioxides, and hydrogen chlorides, which can be harmful to human health. Richer Sounds are not really environmentally friendly in the following ways; * Richer Sounds are aware that their customers, colleagues and passers-by could be affected by noise pollution if the hi-fi systems were 'demonstrated' in the store or if noise levels were too high. To prevent this, they have strict measures about the volume level in the stores (particularly in relation to the bass levels). If any of the staff are working late in a store then there must be no systems played after 9 pm because they have to follow the Environmental Laws. * If a customer wishes to listen to a system, then a special demonstration room will be used. All Richer Sounds demonstration rooms are sound-proofed. * Warnings about noise are included in store catalogues to advise customers to protect their hearing. Richer Sounds also sell special earplugs which help to prevent damage whilst still allowing the listener to hear all frequencies of sound. Some of the profit of every sold pair goes to deaf charities. * Richer Sounds try to keep waste to a minimum. From paper to energy (heating and lighting) by making sure all computers and photocopiers are switched off at the end of the day, as well as all the equipment in stores. ...read more.


Richer sounds also try to compete by offering most up to date stock information. Richer sounds give you the delivery information after or even before the time of purchase while their competitors inform you that you have 6 weeks delivery wait. Segmentation of the market Market segmentation is one of the steps that goes into defining and targeting specific markets. It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes. A business must analyze the needs and wants of different market segments before determining their own position. Businesses that target specialty markets will promote its products and services more effectively than a business aiming at the average customer. Businesses mainly focus on Demographical bases, Geographical bases, Behaviour bases and Psychographic bases. These are: * Geographic location - Richer Sounds can take advantage of location by selling expensive products in richer areas * Time related factors - Richer Sounds may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM * Demographics/culture/religion - Ethnic products would fall into this category * Gender * Age * Social status - This could include country club memberships, philanthropic contributions, etc. * Special Interests * Access (or lack of access) to competitive offerings * Need for specific information * Need for quality, strength, etc. ?? ?? ?? ?? 1 Mudathir Subahi ...read more.

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