• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

external influences

Extracts from this document...

Introduction

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.

Middle

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.

Conclusion

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Identify the main external influences on your two chosen businesses including references to competitors, ...

    on innovative products by creating new, exciting top of the range products. They are market led and carry out a vast amount of surveys and gather information from people who are likely to buy their products. They compete on customer relationships and try their best to keep their customers happy.

  2. Free essay

    From an economic perspective should my council do more to recycle a greater proportion ...

    Most common types of waste of the household were noticeably reduced such as: paper, food, and garden waste. The garden waste could be the result of frequent gardening during the week, however, on previous occasions, garden waste was put in the waste bin, a skip, or it was burnt in a bonfire.

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    They believe the government should take an active role promoting this highly profitable and established market instead of trying to stifle it. The MRP is speaking to both the American public and the government, and their suggestion can be categorized as an institutionalist plan.

  2. Scarcity and Unlimited Wants.

    TR/Q MC = TC/Q MR = DTR/DQ Social Cost The private cost to a motorist of driving from Cornwall to Scotland is the cost of petrol and oil and the wear and tear on his car. However, other people have to put up with the externalities of the journey, for

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    Their indefinite conclusion is that either the EMU is not directly responsible for the apparent shift in the mean returns, or it has affected all the countries in Europe regardless of whether they had already joined the EMU or not.

  2. New banknotes and coins for Europe.

    What affects the strength of the euro? In simple terms, the euro's strength is affected by supply and demand. When investors invest in a fund in a specific currency, that is essentially a vote of confidence in that issuer. But how do investors make their decisions about where to invest?

  1. External Influences of Richer Sounds and Corus

    The same can be said for Corus, who have many steel competitors like Arcelor and Mittal. Richer Sounds will then lower their price in order to attract customers rather than lose them. Technological Change: Technological change explains modifications in the way wherein a business functions or new goods are sold.

  2. Clearly analyze the external influences affecting the development of the marketing strategy

    product such as the BMW M3 Coupe was not the case only 20 or so years ago. These days, marketing firms have also had to act in response to changes in attitude towards health, for example, in the food industry people are now curious the interest of including simulated preservatives,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work