Marketing and Objectives
Marketing is very important to a company’s success, in order to achieve certain objectives I will need to use the right marketing strategies. Therefore I will need to set research objectives so that I am able to works towards the aim and achieve it. Using the right marketing strategies will attract more customers and increase my sales. By researching I will be able to find the right kind of products that suit the needs for the customers.
Marketing involves a lot of research and in order to be successful I need to research the market I am entering into. The business I am starting up involves cleaning; therefore I will have to look at certain cleaning products available. It is important that I do not buy from random suppliers; I need to research all my local suppliers to see which ones offer the best quality and service for me, this way I am able to build up a relationship with them.
It is important for me to know what type of customers I am aiming towards and what their demand is. By using market research I am able to see what type of products customers want, and information about the market segments that my business is in. By doing this I am able to find out what products satisfy my customers and what type of service they want.
I will continue research on my competitors to find out what products and services they offer to their customers, but also the type of customers they target. By looking at competition I will be able to see the type of techniques used by them and then develop similar techniques, if they work with more improvements in order to help try and attract more customers. By using different strategies and offering different types of services I am able to target different customers. During this business plan I will be setting short, medium and long-term objectives for my business and in order to make sure I can achieve them I need to use marketing strategies.
Marketing allows my business to look at the market and analyze ways in which the company can identify different types of changes that have occurred in the market and that could take affect on my service. It will also help me find out what types of products are currently in high demand and satisfy my customers.
A business will set itself objectives to which it has to achieve therefore in order to achieve these activities it must look at what requirements are needed. I also need to understand the customer needs and wants, but how the market has changed and adapted throughout time
Having aims and objectives will give my business something to work towards and achieve, therefore making me work harder and achieve more. If my business does not have goals then what is it exactly the business is trying to achieve? This is why it is important to set realistic objectives that will help your business in the future.
A common development that you are able to find through market research is the market size, by knowing this it helps you plan and develop for the future. It also identifies the different types of age groups that are targeted; this will help a company look at the income of certain age groups and the different types of taste and preferences they have.
Market research generally will look at the demand for a certain product and will help show what products have the highest demand and the type of changes there have been due to customer’s tastes and preferences
Through market research I may be able to find new services and products through looking art different markets, giving me better opportunities to develop and expand my business. This will help me target people with a lower income and offer them better services at a cheaper price. Overall this will help me attract more customers from different locations, along with different age groups.
Marketing is very useful to my business as I am able to look into new opportunities, I would be able to research other house cleaning businesses which are located in the same area as me, by doing this I am able to compare my price towards other companies and see if they are competitive. By researching businesses I can see what types of promotions they are using and gain additional information.
By looking at competitors types of promotions I can see which is the most effective and put it into practice, using types of promotion will allow me to communicate with my customers more effectively.
Using marketing will enable me to create an objective, by doing this I will use the SMART objective, using this method will help make sure the objective is, specific, measurable, achievable, and realistic and time efficient.
During this business plan, I will look at certain information for products and services and at the external factors that might affect production. In order to do this I need to carry out PESTLE analysis, this will help influence the sales of my business. Through PESTLE analysis I will be able to identify new legislations and regulations that may prevent me from being productive. Also the premises I may be hiring out or purchasing may not be to the required standards therefore not allowing building on the land. By doing a PESTLE analysis it enables to find out if the government would have an impact on the productivity of my business as their could be a political change that may affect the sales of product.
Organisations carry out a PESTLE analysis as it analyses and helps the business to understand their external environment; it is made of 6 external forces:
• Economic factors
• Social /Cultural factors
• Technological factors
Pestle analysis helps a business plan for the future, as it looks at how the market will develop over time and the factors affecting it, it also identifies high and low risk situations, which they may or may not have full control over e.g. the economy which can become low or go high depending on the market.
Political – Current and potential influences from political pressures, decisions maybe affected by the issues such as:
• If the government were to change then it may change the market policies
• A consumers disposable income may be affected by a change in tax structure, this may also affect business costs
• Privatisation is when the government releases a business industry from being a public sector going into a private sector. This then causes a bidding frenzy from people that want to own a company, this then takes further affect to the market place as it makes the industry highly competitive
• Trade union action could affect a business in making certain decisions
• Certain raw materials are beginning to become increasingly low due to high demand; therefore some materials may not be available and affect the productions of the business.
• Duties may increase
• There are certain constraints that businesses have to follow, therefore it restricts them on how they label their goods, advertise their products.
Politics could affect my business, due to the government changing certain laws, such as tax being increased which could therefore make me increase prices on the services I offer. If tax is increased then I will have to pay more therefore to generate similar or higher income I will need to increase my prices. This can push customers away from my business as they may not be able to afford to pay higher prices. Because tax is an external factor it cannot be helped by my business therefore I must prepare my business for changes at any times as, the government can increase or decrease tax charges at any time resulting in a dramatic change for my business. Road tax will be important to my business as in order to travel I need insurance for the car. Before driving I will need to make sure I have road income tax to insure my van is able to drive on the roads.
Being taxed will have a dramatic change towards customers and their disposable income because there is an increase they will have less money to spend on my cleaning service, therefore this will take affect on my business
Certain planning permission laws may prevent me from expanding my business, as if I may want to locate my business to certain areas where I can employ more staff and require more equipment. It not always possible to just buy land and build upon it therefore I must inform local authority and ask for permission to build or extend the building that is already situated their. In some cases it is not permitted.
National Insurance is an important procedure for which a business must carry out, when registering a business you must acquire national insurance as you could start employing staff, however this is a possibility that national insurance will increase and cause further problems for my business. As starting as a sole trader, I will not have a lot of money to spend however I will look to employ staff to work therefore I will need to purchase national insurance. This may work out to be expensive and take an affect on my business financially.
This is why when starting up a business such as mine you need to consider the external factors that could influence change in your business but without you doing anything, this is why it is important to plan ahead and make sure your business can change if their were to be external factors that could affect the business.
Economic – local, national and world economy impact
• The economic policies affect how the economic environment works, but also the environment is dependent upon the world economic trends
• The rate of inflation changes
• Economic Growth
• The Euro
• Energy and fuel prices
Economical factors are another influence on a businesses performance as although they are external, a business can not help the way its performance goes when the problem occurs. It is all down to the planning of the business and makings sure you are prepared for different factors. Major factor that could affect my business is unemployment as if the area my business is working in does not have a high employment rate then it will not be worth my targeting this area due to them not having enough money to use my service. Therefore in order to find this information I need to carry out market research within the local area of my business to see whether there is a high disposable income in order to use my service regularly.
In order to find this out I will find statistics about how much money an average UK household has to spend, as this would enable me to target specific areas in the UK which have a lot a large expenditure.
Social/Cultural factors – Ways in society affect the organization and its customers
• Religious factors
• Environmental issues
• Consumers lifestyles
• Demographic changes
• Change in educational standards
Social factors that have an influence on a company’s performance are quite common as you often see a change in the type of lifestyle that people live. Changes in lifestyle will put pressure on various companies, such as if people live a healthier lifestyle and often visit the gym to improve their health, they will not have a lot of time after finishing work, therefore this will be an opportunity for me to offer my service. Not all factors will be a potential opportunity and it will often take a bad affect on my businesses performance.
If I look to expand overseas or up north I will have to study the culture in which the population lives, because it will be different to way in which we live our lives in the South-East. This is why I require market research to help show me certain trends and patterns within the market but also customer lifestyle. A change in consumers lifestyle can often influence and encourage sales however depending on the type of service I am offering will depend on how many customer I attract.
Technological factors – the effect of new and emerging technology
• Energy saving techniques
• New materials and substitutes from existing materials
• New product development
• Better equipment in manufacturing and design
• New technological process – the internet
Technological factors can affect my business due to there being more advance products that have better features which could help other businesses. As I have already purchased equipment I may not be able to afford to purchase improved equipment, this is why I intend to use hire-purchase and leasing as a way of obtaining equipment as it will allow me to upgrade throughout the year.
Improved equipment can often take affect on my business as consumers may find that the product is easy to use and therefore purchase one themselves. This however will take a negative affect on my business due to customers cleaning their own homes. Although improved equipment may help my business as it could give a better cleaning service, the product may also be able to purchase by consumers which could lead my business in to danger as customers will not want to use the service
Legal factors – Effect of national and world legislation
Legal factors tend to involve the working environment such as health and safety, therefore if any laws were to change I may have to alter the way my business operates around the area. I may have to issue certain equipment to my work force in order to make their working environment safer. These types of laws can be changed at any time making it very hard for my business to operate as we will always need to make sure we have a safe working environment.
I may also need to acquire certain certificates and documents to use products which are used for a specific purpose and not just used by the population due it being to dangerous. Therefore we have to be aware that the product does not contaminate any consumers home and that it is acceptable to be used within a consumed environment, such as a person’s home.
Environment laws may prevent me from having access to certain resources as they may be dangerous and affect the environment therefore I need to make sure that they are disposed of in the right manor so that they do not pollute. If the government finds out that I am not disposing of my products correctly then I could be in trouble and be given a fine.
It is only recently that laws have become tougher due to their being a major increase in pollution which is affecting the climate of the country. Therefore the government is taking this into consideration and looking at certain laws which could improve the amount of polluting occurring.
Their also could be certain laws on the amount of noise pollution when producing certain products, therefore it is important we understand the certain laws that could restrict my business from working in anyway as we are not legally allowed to work if the noise level is above the legal standard.
Customer’s general change their demand quite often therefore it is important for me to look at the social factor, which will help me discover any new change in demand from the customers. As their could be a new method of cleaning or a new product which has made cleaning at home easier and people may have purchased the product in order to do this, therefore my business will not be very productive due to people having this product and not needing anyone to clean their home. This is why research is required before hand. To find certain laws and legislation, I will be required to research government websites and other news types such as the BBC and newspapers, as it will inform me of any change that has happened recently that could affect my business or my competitors.
I need to find out the type of lifestyle my customers live in, e.g. age distribution, religion, statistics on education and income; I may find that there are more people within a certain age group that live in one specific area.
Companies use market research to help them look for potential and up-coming products from other businesses but to also look at how the market is developing and what future demand will be like. They use it to research other companies to see how much profit is being made or whether the company is not selling their products.