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Rock Street, San Francisco


  Marketing is defined by the process in which
companies create value for customers, while building strong customer
relationships in order to capture value from customers in return (Kotler and
Armstrong 2009:29). Essentially, marketing aims at satisfying customers and
their needs in order to obtain profit. A part of this business function is the
marketing mix, which is a group of different elements which work together to
satisfy customer needs. In 1981, Bernard H. Booms and Mary J. Bitner further
expanded the traditional marketing mix, originally developed by the American
Professor of Marketing Jerome McCarthy, into the extended marketing mix
(Toolshero 2013), thus adding 3 more “p’s” to the original 4. The 7P’s are:
product, price, promotion, place, process, people and physical environment.

  Monica’s case study states that her business
has achieved a very good local reputation for high quality customer care and
the professional expertise of her staff. This has mainly been through word of
mouth and has contributed to the increasing size of her client base. Word of
mouth is a type of promotion. This type of product promotion is very important
when taking into consideration. If a customer is satisfied, chances are that
they will let other individuals know about that particular product or service,
thus creating more possible clients. Alternatively, a dissatisfied customer
will create a negative effect on this business, warning other people not to buy
their products. Public relations are very important when promoting. Besides
counting on the word of mouth, Monica could use advertisements to expand her
client base. Good advertising will increase the demand for her business. One
problem that Monica is currently facing is that her clients find it difficult
parking near her salon. Failure in fixing this could result in losing clients
(place is also part of the marketing mix). It is important to have your service
or product positioned in a place that is accessible to potential buyers and
customers. A solution to this problem would be to lease more premises in order
to expand the business. As the case study states, Monica decides to do so. Her
new premises will include a few parking spaces for her clients, fixing the
current issue of her expanding client base.

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  The 4 basic business functions are
operations, marketing, human resource and accounting/finance. Although these
are considered the main and key functions, a fifth one can be introduced: the
IT function. Nowadays, technology has become more and more advanced. Almost
everybody uses technology in some way and it is impossible for a business to
function without it. The IT function deals with various areas such as the
following: Online shopping/electronic transactions (which is very preferable
nowadays), online assistance/customer service (for example, tracking orders or
by customers leaving reviews of a product or service online), communication by
email and virus protection software (critical for the prevention of cyber-attacks).

  At the present time, Monica keeps all of her
client records on a data card, which is then indexed alphabetically in a small
box file. The cards store information of the treatments and therapies taken by
each client, as well as the name of the therapist who usually deals with them.
The data cards even include information about how the clients prefer their tea
or coffee. The idea of having individual data cards is a good idea because in
this way, Monica can keep track of each customer and ensure that they all have
the most pleasant experience when they come to her salon. However, because her
client base has expanded, some of the files have been mixed up and as a result
there has been an increase in the number of complaints. This is not good at all,
since any kind of negative feedback or reviews will damage Monica’s business. If
there are many clients, there will be many data cards and not organizing them
properly leads to messy arrangement of them. In order to fix this problem,
Monica should firstly discard any old data cards of clients who no longer or
rarely visit the salon. Secondly, she should be more organized. Buying more
boxes to store the data cards should help. An easier method would be just to
have every client’s information on a computer. Moreover, Monica should set up a
customer service email, so her clients can let her know of any enquiries.


resource management


  Every business consists of people, without
them they would not exist. The human resource management function involves a
wide range of different activities. Some of them are the following: employee
relations, recruitment and selection, working conditions, job evaluation,
training and career development and manpower planning (Crossan, 2016:55).
Therefore, the main goal of this function is to create an appropriate working
environment, while also focusing on the goals of individuals, not just of the

  At first, only Monica and one other trainee
therapist were working in the salon. But since her business has flourished, she
now employs four full time therapists, one part time therapist and two trainee
therapists. Monica undertakes to train two students each year. These students
gain a national qualification at the end of their training, but they are not guaranteed
a job with Monica. However, three of her full-time therapists completed their
training with her.

  Since three of her four full-time therapists
have completed training, Monica must now decide is she wants to offer the job
to them. The decision must be made by judging the individual’s qualities and on
their performance. Since Monica has decided to lease more premises due to her
business expanding, she must hire more therapists. It is essential to hire the
best and most experienced people, since they will have the best positive impact
on her salon. With the number of employees increasing, it is essential to maintain
the employee welfare. Peace and harmony between workers and the organisation is
very important, providing optimum industrial relations.

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