Marketing Mix Essay Example
To what extent has The Authentic Food Company Ltd ’s products been the most important element of its marketing mix?
The marketing mix is a business tool used in marketing and by marketing professionals.It is a planned mix of the controllable elements of a product'smarketing plan commonly termed as 4Ps: product, price, place, and promotion. Their products have been the most important element of its marketing mix. They decided to make high quality products, this means that customers will be more satisfied with their purchase because the food is of a high quality. However, this leads to a rise in training costs because the staff need to be trained more to produce food of a higher standard, and an increase in the cost of purchasing their ingredients because they will probably be of a higher standard and therefore more expensive. As a result of this, they will have to lower their selling prices, which may be reflected in the revenue, which could increase because the customers are getting a higher quality of food, for a lower price. This means that, because their costs are higher they will need to sell a higher quantity of products before they can make a profit, which is already a problem for them since their profit margins have decreased by 6%. As price is an important element of its marketing mix, they need to focus on reducing the cost of training employees, or using motivation to decrease labour turnover, therefore reducing the costs needed to train new staff. This means they can increase the price of their product, which will help increase profit. However, promotion has also become an important element of the marketing mix for The Authentic Food Company Ltd. This is because the company are expanding into new markets, which will require promotion, one of the 4Ps. Promoting the business in new markets costs money, and takes time. This means the business will have less time to spend on other tasks such as creating new products, expanding and improving products
The marketing mix is a business tool used in marketing and by marketing professionals.It is a planned mix of the controllable elements of a product'smarketing plan commonly termed as 4Ps: product, price, place, and promotion. Their products have been the most important element of its marketing mix. They decided to make high quality products, this means that customers will be more satisfied with their purchase because the food is of a high quality. However, this leads to a rise in training costs because the staff need to be trained more to produce food of a higher standard, and an increase in the cost of purchasing their ingredients because they will probably be of a higher standard and therefore more expensive. As a result of this, they will have to lower their selling prices, which may be reflected in the revenue, which could increase because the customers are getting a higher quality of food, for a lower price. This means that, because their costs are higher they will need to sell a higher quantity of products before they can make a profit, which is already a problem for them since their profit margins have decreased by 6%. As price is an important element of its marketing mix, they need to focus on reducing the cost of training employees, or using motivation to decrease labour turnover, therefore reducing the costs needed to train new staff. This means they can increase the price of their product, which will help increase profit. However, promotion has also become an important element of the marketing mix for The Authentic Food Company Ltd. This is because the company are expanding into new markets, which will require promotion, one of the 4Ps. Promoting the business in new markets costs money, and takes time. This means the business will have less time to spend on other tasks such as creating new products, expanding and improving products