Method used
- 1. Harry Grimshaw Method used Methods used to compete Description on how method is used to compete Example of how the method is used Range of products Ace sports have a wide range of products. They compete with well know sports-orientated shops such as JD sports and Sports Direct by having a wide range of products such as sports equipment and sports clothing. They use this method by having a variety of different items at the shop. Quality of products Ace sports have an extremely high quality of product. So anyone visiting the shop can instantly know that the shop has a high quality of product just because of some of the brands they stock. Ace has brands such as Nike, Adidas, Puma and Wilson. Pricing Ace sports uses the technique called physiological pricing this means that instead of selling something for £10 they would sell it for £9.99. This method is used to try and make the customer think the product is a lot cheaper than it actually is. Advantages Business 2012 Disadvantages Do you think it is effective? Explain your reasons Yes because if someone wants to buy specific product, the likely hood is that Ace will have it if it’s a reasonable product. If they have similar range of products to sports direct, the customer could be more inclined into shopping at ace because it isn’t a well known shop and could be cheap. A customer might just think that all the shops are the same because they all have a similar product range. Ace sports sell a Nike sweatshirt at £30. Customers will know that the shop stocks some quality products. People may not be able to afford expensive quality products , so they may want something cheaper. It is also expensive for the shop to buy quality products. Yes because if a customer see that a shop has quality products they are more likely to go and buy from them. Ace might sell a Nike branded t-shirt of £14.99. Some people may fall for the trick and think it’s cheaper and then buy something. Over time people will wise up to understand that there is no real difference in price because it’s usually just 1 or 2 pennies difference. No I do not think the method is effective because customers will understand that there isn’t a substantial difference in the price of something.
- 2. Harry Grimshaw Promotion Ace sports uses word of mouth promotion and this means that the shop advertisement is done by customers who tell friends and then who tell other friends. Customer service Ace sports customer service isn’t always that great because they not always willing to help you find something you’re looking for. Additional service Ace sports has a website and you can order thing form it. Use of promotion The shops use of promotion relys on customers telling friends about the shop. Methods used to compete Jane buys some shoes then she tells Marie about them and then Marie goes out and buys a sports shirt. Its free method of promotion and it requires no work from people who wrok at the shop. All they have to do is hope that customers teklll there friends about the shop and then the friends come and purchase something in the shop. A customer may ask There are no advantages where the Wilson Tennis to having bad customer rackets are and the service. assistant may say over in the corner. This is not precise and the customer may have wanted the shop assistant to show them exactly where the Wilson Tennis rackets are. A customer can buy It may be easier for things in store or online. certain people to buy things online rather than in store. Jane must tell friend about shop in order for the shop to be promoted. It’s a free method of promotion. Business 2012 Customers may not tell friends about the shop and then the shop are left with no method of advertisement of promotion and this means they will not get any new customers. It can be effective if a customer tells 10 friends about Ace sports and then they all go buy something there. But if they do not tell friends about the shop then the shop isn’t becoming more widely known by the public. It is bad that they have poor customer service this means they should improve it if they want more revenue. This is obviously not an effective method used to compete with other shops. It costs money to start up a website. So money spent on the website could be spent on other things in store. Peple may not tell others about the business. Yes i think the website is effective because people may want to look at what they sell before going to the shop. No it is not effective because if customers don’t tell friends about the business then there is no promotion.
- 3. Harry Grimshaw Methods used to compete Business 2012