As Shaw & Ivens (2005, p 6) indicates that a customer experience lies between the interaction of an organization and the customer. In that it is the mixture of physical performance of the organization and the emotions evoked by the customer and what the customer expects. There is need to develop the customer experience in the saloon business due to the fact that it has been in existence for 17years. This duration according to Connor & John (1985) who argues that any business should identify the marketing structure first, then there after establishing their marketing demands, they should endeavor to come up with the appropriate strategy to suit their demands.
One of the strategy the saloon business is using is competitive strategy. This is done by coordinating various products offering and associated price discriminations with sales promotions and effective logistics. Through this strategy the saloon business will increase its sales and profitability hence helping in boosting up the new customer experience and cause marketing niche in the market (Belch & George 1995).
The emphasis here in the case of a saloon business is on the management of the saloon to exercise planning of the competitive strategy to be used in the saloon business that for the last 17 years the saloon has never used. Secondly, organize how to implement and lastly see how to control the strategy.
Management deficiencies over years have been seen to be one of the reasons for business failures (Jacoda 2002). It is a bigger challenge for businesses in today's competitive market. Therefore there is need to establish the association between the management abilities and the business performance. Meehan et al (1999), points out that without good market sensing, a financial service provider cannot be market-oriented. But market sensing alone is not enough. It is therefore important to process only because they are fashionable or perceived as best practices. Meehan and Barwise (1999) further explain that marketing orientation helps to describe an organizational culture where beating the competition through the creation of superior customer value is the paramount objective throughout the business (Connor & John 1985).
The salon is a middle size salon that offers the salon services to the people of Queensland. It is located at the Queensland city.
Satisfaction has been seen to be a person's feelings of pleasure or disappointment resulting from comparing a product's, perceived performance how it performs in the market or even (outcome) in relation to his or her expectations, (Kotler, 2000).
From this definition satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted, (Kotler, 2000).
Barwise (1999) outlined that the aim of providing superior customer value dominates all thinking about what its business, which markets to serve with which produce or services. Rothweth and Zegveld (1983) argues that in the early years new firms depended largely on a limited number of clients mostly one client. Several studies show that after four years a substantial percentage of turnover (about 40 per cent) is often achieved in other markets.
Competion is about satisfying customers better than competitors and this is mainly achieved through analysing and undertaking the market research in any business. Businesses compete in so many ways to gain and retain customers' loyalty. Generally, customers want to do business where they expect to obtain the greatest level of satisfaction of their desires money they are willing to spend. According to Dilworth (1993), for a business to compete succesfully that particular business must be flexible, innovative, and responsive. He urgues that customers want goods and services that incorperate the best features available for the amount they are willing to spend. Therefore businesses must be alert for such opportunities as new product developments where one will ensure that the product or service the business is offering the market is of better quality and will satisfy the customers needs. Secondly, the new customer desires, if the service or the product satisfies customers desires then definately there wil be increased profitability and lastly the trends in demand; as well as new ways to use technology to improve products, reduce costs, and improve safety. The business must be flexible so it can quickly respond to the needs of the customers and changes in the market.
Quality is a continuous search for added value for customer requirements, therefore businesses must provide quality services to improve on them because customers want goods and services that are user-friendly and meet the needs for which they are intended.Goods must be reliable and perform for reasonable lifetime.This requires a careful marketing to ensure that those needs, stated or implied, are provided as a meaningful basis for the design of products and services. Demming (1993), in his Chain Reaction model, suggested that improvements in quality will result in low costs of operations whch goes along with high productivity and eventually have a greater market share and a long term survival of the business.
The business must make its goods and services available convenietly and dependably since customers want to do business with businesses that make it convenient and hassle-free to do business. The services must be readily available at locations that are convenient for the customers.
Kotler and Armstrong, (2001), argue that customer satisfaction is closely linked to quality. In recent years many businesses have adopted quality management programs, designed to constantly improve the quality of their products, services and marketing processes.
Quality has direct impact on product performance and hence on customer satisfaction and hence new customer experience. One cannot define the customer experience just be looking at how the customer is satisfied but instead look at various aspects in marketing and customer care and orientation strategies in order to enhance customer loyalty. Quality begins with customer needs and ends with customer satisfaction.
In Kotler and Armstrong (2004), customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Today businesses are going beyond designing strategies to attract new customers, and create transactions with them. They are using customer relationship management to retain current customers and build profitable long-term relationships with them.
Customer retention is an imperative in modern business especially in service industry which includes the saloon business. It's a strategy whose objective is to keep a company's customers and to retain their revenue contribution. This primarily aims at preventing customers from defecting to alternative brands going to the competitors' product but rather stick to the service that pleases them. Nowadays, managers know, it costs less to keep an existing customer than to acquire a new one. Studies cross a number of industries have revealed that the cost of retaining an existing customer is only 10% of the cost of acquiring a new customer; therefore this implies that customer retention makes powerful economic sense. (http://www.iclployalty.com).
All the same there are limitation to the competitive strategy in line with the customer satisfaction. This limitations are for example; it is hard to win customers loyalty while maintaining profitability. As urgued by others, this has remained the greatest challenge facing customer satisfaction and experience because customers are usually loyal to the businesses that understand their needs and meet or exceeds their expectations. They are loyal to companies that care about them and their feelings. They are loyal to businesses that deliver value in a way that is meaningful to them. (http://www.customerretention.com/loyalty.asp).
On the issue of limitations the concept of competitive advantage as formulated by Porter (1985), arises when a firm creates value for its customers, select market in which it can excel and presents a moving target to its competitors by continually improving its position.
According to Porter (1985) three of the most important factors are innovation, quality and cost leadership, but he recognizes that all these depend on the quality of an organization's human resources. He argues that the ability to gain and retain competitive advantage is a crucial factor to the business's growth and prosperity. (Armstrong, 2001)
Modern technology on the other hand has played important role in shaping up the marketing field Using today's vastly more powerful computers, marketers create detailed databases and use them to target individual customers with offers designed to meet their specific needs and buying patterns. Use of mobile phones and computers emails services have enhanced bookings in saloon industry whereby clients book the time at which she/he finds convenient for him/her to be worked upon. This helps in reducing long queues while serving a large number of customers.
In order to attract, satisfy and retain customers the businesses must have the most advanced technology because of the stiff competition in the market though this comes at a cost.
On the other hand establishing superior customer care services is another challenge that the business faces. The key to a level of service quality that leads to customer satisfaction and retention is, a motivated, well trained, spirited workforce skilled in the art of customer care, working together with a service strategy to provide experiences that customers will come back for.(htt://www.customer retention.com/loyalty.asp)
Unique talents among employees, including superior performance, productivity and the ability to deliver high levels of personal customer service, are one of the few ways in which people provide a critical ingredient in developing an organization's competitive position, (Armstrong, 2001).
Another limitation is marketing Expenditures, businesses may find their expenditures for advertising, sales promotion, marketing research and customer service to be increasing at a very high rate. This is because to attract, satisfy and retain customers the company must invest a lot in order to remain above the competition in today's market.
Implications for marketing
In order to penetrate the market and lure many clients into any business one needs to ensure that customer care and satisfaction is amongst the important issues to be addressed. As seen from the studies that the cost of retaining an existing customer is only 10% of the cost of acquiring a new customer, so customer retention makes powerful economic sense. (http://www.iclployalty.com).
Another implication is that whenever there is a satisfied customer, this one customer will be able to sell your business and attract some others who did not know about the services the business is rendering. Studies also show that when one customer is dissatisfied he/she usually paints a bad picture of the business to many others out in the market hence resulting from mistrust with the business and hence lowering the profitability margin. Therefore marketing here is a crucial aspect since it carries the back bone of the business.
The customers make conscious and unconscious comparison between different service experiences irrespective of industry sector. The business's ability to attract and retain new customers therefore is a function not only of its product or product offering but also the way it services its existing customers and the reputation it creates within and across marketplaces.
Many businesses nowadays however, overlook the potential of existing customers to develop their business. If the company can develop repeat and multiple business relationships with existing customers, it is more able to maximize both its sales overheads and resources as shown in the illustration below.
The key to customer loyalty is to consistently deliver a level of service that exceeds and even anticipates the customer's expectations and provide experiences that shout, "WE CARE". Customers expect caring, value and competitive pricing, when a company considers these three aspects then there will be high customer turn up and increased profitability margin. This is why companies that are looking forward to thriving in the 21st century are investing in their future by investigating in programs that sharpen their customer focus and build customer loyalty and retention now. (http://www.customer retention.com/ loyalty.asp)
Ethics and sustainability issues
Ethics of sales and marketing ensures that few aspects in the marketing department are dealt with in order to retain and attract new customers' into the business.
The business should ensure that there is better and friendly Pricing, price fixing, price discrimination, price skimming. This is because most of customers usually compare and contrast the prices and they usually move with the price. In most cases when the service is of high quality the customers usually don't even bother since they are already aware that the quality matches the price hence they will pay for the service while satisfied of the same service. (http://www.customer retention.com/ loyalty.asp)
Another aspect is content advertisement this includes attack ads, subliminal messages, sex in adverts, immoral or harmful products. Businesses should ensure that the content advertisement is dealt with so that you should not create a bad image of the business or any other thing like environment and the customers. For instance using nude ladies to advertise saloon business will not do well with the business since it will create bad image of the customers being attended by that salon there by making the customer turn out to depreciate.
Children and marketing; It is unethical for any business to involve children under the age bracket to whom they are not considered to be adults for any marketing activity since this will result to children labor which is against the law. Therefore, the use of children under the age is unlawful and punishable by law.
As a prerequisite therefore, ethical aspects should be considered in order to attract and retain the customers and eventually be proud of loyal customers and increased productivity.
Implications for staff recruitment and training
Staff recruitment and training is an important aspect in any business. Training and recruitment are complex activities and must be carefully planned. Too often when technical experts are hired to conduct a workshop or a training session little thought is given to careful planning and design of the instruction. Design and preparation of a training course usually consumes more time than delivery of the material. This module reviews steps for effective planning and delivery of a training course. It extends and develops capabilities for better job performance. It involves transfer of new knowledge, skills, behaviors and attitudes to perform specific roles in the workplace.
Training extends and develops capabilities for better performance on the job. It involves transfer of new knowledge, skills, behaviors and attitudes to perform specific roles in the workplace hence increase the performance of the business. In all training/learning environments trainee motivation is essential for receptivity and learning. Research has shown that learning is at a maximum when people are motivated to learn (Knowles et al., 1998)
According to Rowntree (1981:327) he observes that training is referred to as a systematic development in a person the knowledge, attitudes and skills necessary for him to perform adequately in a job or task whose demands can be reasonably well identified in advance and requires a fairly standardized performance for whoever attempts it. On the other hand Marsick (1988:47) defines staff development as learning strategies, both formal and informal for the orientation of staff to an organization and for the continued development.
Staff training and development becomes very necessary due to the changing nature of the society that brings about new ideas, new technologies and new practices. Workers therefore need to keep themselves abreast of any developments which thus makes staff development imperative and of paramount importance in the development of any organization. It is therefore important to observe that any business requires an up-to-date and well-trained workforce that can effectively contribute to its development. By so doing it encourages the staff to perform their duties effectively and as a result it promotes the customers turn up since they will be motivated to come to the business and buy the services being rendered in that particular business since they will consider professionalism in the business.
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Mayanja Jamiah (2004), Relationship Marketing to Customer satisfaction in selected small scale enterprises in Uganda, Makerere University Business School Journal (unpublished)
Kotler and Armstrong, (2004) Principles of Marketing, 10th Edition, Pearson Educ.Inc.India.
The need for the new experience
New experience is needed in the service of catering for the game day food for football funs due to the fact that there are other competitors in the industry hence making it hard for the business to penetrate new markets in Queensway city. The existing option is that there are many other companies who have joined up to compete for the same market hence making it hard for the company to sell and make profit.
Therefore the need to open up new experience in the business. The limitation is that there are no strategies to ensure that the company outcompetes its competitors. There is already market for the game foods as well as potential customers but due to the fact that there are other competitors in the industry then there is need to ensure that there is strategic implementation of competitive advantage in order to sell.
Reaction to the kind of product the company is involved in is positive due to the fact that the competitors have tried to imitate the products of Queensway company to come up with their onw company image. This has made it possible for the community to realize the original inventors in the business and real imitators in the business.
The scale of the business is that it offers game food such as snacks and other take away food to the supporters of football within the Queensway city. The company is located at Queensway city.