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1. BLENDED DELIVERY LEARNING AND ASSESSMENT MATERIAL SIB50210 Diploma of Salon Management SIBXPSM5003A Promote a personal services business DEMONSTRATION UNIT DELIVERY STYLE - complete unit contains 25 pages Initial Impact P/LPO Box 301Balnarring 3926ABN 37 006 210 920 Student name:.............................................................. Student ID:................................................. Date:.............................................

2. SIBXPSM503A Promote a personal services business This unit describes the performance outcomes, skills and knowledge required to develop and implement marketing strategies, to expand both the client base and business turnover. The unit describes the function of regularly developing and integrating a full range of marketing strategies and tasks to expand and diversify the client base, maintain and improve client re-booking, and increase average client spending in a personal services environment. Ongoing monitoring and adjustment of marketing activities, along with evaluation of business performance, are also required to achieve ongoing business success. This unit contain employability skills. Application of the unit. This unit applies to the full range of personal services industry sector environments and may include single or multiple outlet businesses. Personal services managers may also be small business owners and are required to apply initiative and judgement across a broad range of management functions. Competency field: Personal services management Performance criteria covered within this training programme 1.1,1.2,1.3,2.1,2.2,2.3,3.1,3.2,4.1,4.2,4.3,4.4,4.5,4.6 FORMATIVE TASKS. Formatives are activities located throughout the learning material which you need to complete and submit to your trainer for comments. They allow you to continually demonstrate your ability to perform the required skills and knowledge for this unit. SUMMATIVE ASSESSMENTS. The summative assessment uses the performance criteria, range statement, critical evidence and employability skills as the checklist for demonstration of the required skills and knowledge. Your trainer will deem you either competent or not yet competent based on your performance in the summative assessments. Promote a personal services business

3. Student assessment guide There are two summative assessment for this unit. ASSESSMENT A. DEVELOP MARKETING STRATEGIES AND THE MARKETING MIX FOR A SALON. DOCUMENT ASSESSMENT Using the skills and knowledge you gained throughout the formative assessments you are to develop the marketing activities and the marketing mix for a hair or beauty salon. You are required to analyse the salon’s current operations to determine marketing objectives for improved performance in service and product sales. Based on the objectives, you are to identify customer demographics and new target markets. The marketing mix must contain relevant personnel and resources required to deliver the identified strategies with a budget and expected outcomes to be included. Effects of legislation must be considered. You will be assessed on demonstration of your skills and knowledge on the subject. ASSESSMENT B. CONDUCT A PRESENTATION ON HOW YOU WOULD IMPLEMENT AND MONITOR THE MARKETING STRATEGIES. VERBAL PRESENTATION ASSESSMENT You are to conduct a verbal presentation in front of your trainer on how you would implement the strategies using professionals and staff in the process. You are to describe the risks and benefits that applied to the performance gap strategies you used and describe your procedures for monitoring and recording the marketing outcomes. Describe your ongoing research strategy for evaluating changes in the market place. Your trainer will ask you questions during your presentation to determine your depth of skills and knowledge on the subject. Promote a personal services business

4. Marketing Marketing is the process of supplying or satisfying the wants and needs of the customer. It involves all the decisions and actions required to create sales for the business. Marketing aims to give people what they want in the most profitable way for the business. Effective marketing produces satisfied customers who return and tell others about the business. Marketing requires the establishment of an effective and achievable plan in order to make sales and achieve profits. The marketing plan is a written document detailing marketing and financial objectives for each product and service the business provides. It sets out programs, costs and timings as a guide for the marketing activities of the business. The marketing plan is concerned with actual budgets and marketing tactics that will be employed. Marketing funds should be allocated to business promotions, consumer promotions or more advertising. There are benefits a business can expect to achieve as a result of developing a marketing plan which;   1. Provides a clear marketing action plan to follow. 2. Establishes priorities. 3. Allows all aspects of the business to support the marketing programme. 4. Sets measureable business goals against which marketing performance may be judged. 5. Establishes a base for follow-up planning. 6. Allows examination of the assumptions behind the profit and loss statement. 7. Provides an avenue to sell new and innovative products and services to customers. 8. Provides for marketing continuity during staff changes. 9. Enables business owners and managers to test marketing activities for consistency with business objectives. Promote a personal services business

5. Customer oriented marketing • The correct approach to marketing is to be customer oriented. The process is to put the customers’ needs first in all customer dealings. This includes personal selling, customer enquiries, servicing and customer complaints. • The main characteristics of a customer oriented business are; • Marketing decisions are based on a knowledge and an understanding of what customers want. • Profitable sales volume. • Wide product or service range. • New additions to the product and services provided. • There are high standards of customer service and good customer relations. • Market research is conducted frequently. • Competitors are continually monitored. • New opportunities are sought to expand the business. • There are three categories that divide products. • Product differences. This involves the ingredients used in the product, how those ingredients work, the ways to use the product and the different types of packaging of the product. • Pricing differences. This is the retail price of the product, the size of the packaging, the amount of product you get in the packaging and if they are discounted or have a gift with purchase as an incentive. • People differences. This is based on the skills of the sales person to sell more to the customers through providing good customer service. Promote a personal services business

6. Demographics of consumers • Demographic is the process of defining and subdividing a large homogenous market into clearly identifiable segments • having similar needs, wants or demand characteristics. Its objective is to design a marketing mix that precisely matches • the expectation of customers in the targeted segment. • Demographics allows a business to divide customers into; • Age. • Gender. • Family size. • Family life cycle - single, married with or without children. • Income. • Occupation. • Education. • Religion. • Race. • Nationality. • Social status; lower, middle class etc. • Promotional activities. • Personal selling is verbal or face-to-face communication with potential buyers of the product or service with the intention of making a sale. Personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to 'close the sale‘.  • Direct marketing is targeting a person or a company by sending things such as fliers, emails, postcards or sales presentation letters with the objective of generating new business or raising the profile of an organisation or product. • Advertising is paid messages which can be delivered using newspapers, radio, television, magazines or through the web. • Public relations or publicity is messages sent to the media or general public to build a good corporate image. The important thing is to have a newsworthy item to tell people about. FORMATIVE 1. ANALYSE WHAT MAKES UP A DEMOGRAPHIC GROUP. DOCUMENT Go online and visit a municipality website that provides information about the demographic group of residents in your area. Submit your findings to your facilitator. Promote a personal services business

7. External environments • External environments are events outside the control of the business that affects its performance. • There are seven external environments. • Social environment consists of the behaviour of individuals and groups of individuals in society. • Competitive environment consists of all the other sellers who are after the same customers. • Economic environment includes the income and wealth-generating ability of the customers and wider economy. • Technological environment is the application of invention to develop new ways of doing things. • Physical environment consists of the geographic and raw materials of the country. • Legal and political environment is the rules and regulations of society. • Ethical environment is the moral behaviour that society imposes on business. • Changes in the Australian household. • Many households have dual incomes. This can be a necessity for financial demands or a career choice. • Families are becoming smaller. • More people are choosing not to marry or marrying many times. • Australian population is ageing. • Australian immigration policy is encouraging new migrants which has widened cultural influences. • All these changes have direct affects on businesses performance. Promote a personal services business

8. Product life cycle • The product life cycle represents the stages a business or product moves through from its introduction to the market to its disappearance in the market. There is no set time frame for a product life cycle. • Adverse factors affecting product life cycle can be; • Internal; • Lack of planning. • Lack of motivation, becoming too comfortable and not trying. • Lack of income to keep up with the changing demands of the market. • 2. External; • Changes in the economy and consumer buying habits. • Civil unrest or natural disasters. • Lack of raw materials and changes in legislation. FORMATIVE 3. WHERE ON THE PRODUCT LIFE CYCLE DOES YOUR SALON SIT? DOCUMENT Submit your answer to your facilitator. Promote a personal services business

9. Marketing mix • A marketing mix is the variety of activities and promotions chosen by the business to create sales. • Marketing activities consist of the 4 P’S. • Product – an item, service or idea that is created to fill the needs of customers. Look at the product or service through the eyes of the customer. A business should sell products and provide services that they know the customers are needing or wanting. • Price – the price charged for the product or services. What does the product or service cost the business to produce? What price will the customer pay? The true price for a service or product is as much as the customer can stand as long as the customer believes they are getting value for money. • Promotion – the communication and activities created to attract customers. An advertisement must have a benefit in it for the customer the business is trying to attract. It must create interest and stimulate the customers desires to have the products and services being offered. • Promotional strategies could be to; • Provide information – brochures, price lists etc. • Differentiate – how much better your business is compared to your competitors. • Stabilise sales – offer discounts in down times. • Place – also known as the distribution of the product. How or where will the customers receive the products or services? Will it be in store, mail order, internet sales or door to door? The places where products and services are distributed can include business association meetings, school councils, local offices, shops or factories. Promote a personal services business

10. Sample of marketing calendar. Strategic planning for new products Existing products New products Existing markets New markets Explanation of strategic planning. New products can be put into 5 different areas. 1. Products that are very different and create a brand new market. Product development and Market development. 2. New products which fit into an already established market and allow a company to sell it for the first time. Diversification. 3. Existing product line additions. This could be the same product just in different packaging being a new shape or size. Market penetration. 4. Cost reduced products are products dropped in price. These are sometime used to get customers hooked into the product only to raise the price later on. Market penetration. 5. Improvement of existing products. These are products that have been improved in texture, feel, colour, smell. Product development. Promote a personal services business

11. Calculating expenses • Fixed costs - items such as rent, council, water rates and staff wages etc. • Variable costs – items such as purchase of product for use and for retail sales, electricity, water usage, phone, overtime payments for staff etc. FORMATIVE 5. COMPILE A LIST OF NEW PRODUCTS AND SERVICES YOUR SALON WILL IMPLEMENT IN ORDER TO EXPAND MARKETING OPPORTUNITIES. DOCUMENT You are to make your own template of items and their costs, either fixed or variable. Total both amounts. Submit your template to your facilitator. Promote a personal services business

12. Performance gap situations continued • Product strategies can include the activities of; • Changing, modifying or improving products and services. • Changing the product mix. • Introducing new lines or deleting some services or products. • Changing the service procedures. • Changing the manner or style of service. • Pricing strategies can include the activities of; • Changing the prices. • Becoming price competitive. • Creating value-added offers. • Introducing flexible payment terms. • Promotional strategies can include the activities of; • Improving sales techniques – handling customer enquiries. • Improving sales presentation techniques. • Re-arranging the display mix. • Introducing new promotions. • Changing the advertising approach. • Organising better brochures. • Increasing or decreasing the promotional budget. • Using direct email. • Changing the signage on the business. • Organising publicity – unpaid media. Promote a personal services business

13. Monitor product stock levels • Stock count. • Make up a list of all products, professional and retail and count each one. • Check for any stock that may be out of date, old, smells bad or has been damaged. • Check to see if the stock you have sold matches with the stock you have counted. • If there is a difference could it be that you have not recorded every sale or some items may have been stolen? • Re-order of stock. • Before ordering more stock check with your sales figures to see in there are any sales trends that will tell you which products are the fast or slow sellers. • If you are planning any promotions as part of your marketing concept then allow for extra sales. • Place your order with your supplier making sure you are able to afford to pay for the stock. • Rationalising stock. • Keeping up to date with the latest in products is essential for you to remain competitive. Customers like new things. This will require that some of your stock may need to be updated or deleted if it is not selling. The lack of customer sales for those products will tell you what to do. • Deleting services to maximise profits. • Sometimes you will need to delete services that are not bringing in the income that it costs you to offer them. You need to continually check your sales records to determine what is profitable and what is not. Promote a personal services business

14. Monitoring the success of marketing and promotional activities • All businesses need to evaluate their marketing goals and strategies in order to grow and become ahead of their competitors. • This monitoring can take place by; • Monitoring of the marketing activities conducted over the past year. • Asking staff or other relevant people on ways to improve the marketing performance. • Conducting customer service surveys on the effects of the marketing campaign. • Keeping up to date knowledge on market trends, both local and international. • Ongoing research is required. • To assist with this process answer the following questions. • Will the business change any of its services? If so what will they be? • Have you noticed any changes in the types of customers coming into the business? • Does the business require additional services and products to keep up with the changing market? If so which ones and what will you be getting rid of? • What new promotional activities do you need to implement? • Will your business be changing its prices in this year? If so why? • Are you planning to expand your business and if so what are those plans? • Recording data. • It is essential that a business has back-up data facilities for recording all business activities. There are many business management systems available covering a wide variety of industries. These systems can assist with the organisation of marketing research and tracking the progress of the sales towards achieving the marketing goals. This completes the learning material for this unit. Promote a personal services business

15. SUMMATIVE ASSESSMENT A. Marking criteria Promote a personal services business

16. SUMMATIVE ASSESSMENT B. Marking criteria Promote a personal services business