The success of a business firm depends on the marketing mix for the products and services. The four marketing mix includes product, price, place, and promotion. These variables would determine the growth rate of the company. Good managers utilize a marketing mix to promote the products manufactured by the company.
This is the items offered for sale by the company. The products must meet the requirements of the consumer. The first principle of the marketing mix must be centered on the product. The functionality of the products would determine the willingness of the customer to pay for the commodity. The products must meet the functions advertised. A customer would demand a product when it meets his or her requirements.
The growth in sales of a product is dependent on the price. This variable could increase or reduce the profit margin of the company. Selling at a low price will put the company out of business and selling at a high price will chase customers. An effective marketing mix will consider the market segments before setting a suitable price for the commodity.
Different strategies would be used to implement a suitable price for the products. For example, some customers believe that the price of a product would determine its importance thus if the price is low compared to similar products, the product may not sell. A suitable price must include the cost of production and profit for the company.
The channel of distribution can influence the sale of a product. Distribution of products for regional or international channels can be tasking when the right approach is not followed. The place can add cost to the products because of the cost of moving the product to the right environment. For example, organic date requires direct sales and may do well using online marketing.
The marketing mix can add value to the sale of products for the company. This is the channel for communication with the customer. This medium is used to interact with the customer on the critical issues surrounding the products. The promotions of products create an awareness of the functions, strength, and quality of the company’s product.
Food market in Russia
The demand for an organic date has increased over the last decade. This is because the local market had expanded on the demand for the products. Market analysis believes that the trend would continue thus pushing more products internationally. Thus, with the increasing population in Russia, the demand for dates will increase. This will increase the revenue generation of the company in particular and the country in general.
Food market in South Korea
The emerging market for dates in South Korea is similar to the Russian market. The demand for organic dates has taken a traditional role. The standard of living has forced the dependence of organic dates as a traditional recipe. The demand cuts across all ages and this contributes to the high demand for organic dates.
Market entry strategy for Russia and South Korea
The entry of a product in a foreign market requires careful planning. The market strategy and the mode of entry would be based on careful examination of the market segments. Russia and South Korea have similar economic policies and strict economic plans. Thus, any foreign market must use one of the following routes to channel the products to the consumers.
This requires a direct transaction between the company and the consumer. It may require the establishment of office buildings in both countries and the direct shipment of products to the offices. This method of entry would enable direct control by the company. It would assist the company to manage the growth pattern and relate with the customer.
This requires a joint partnership between different organizations. The sole right of the products is shared between the companies. The method of entry would be necessary where foreign policies are strict. In situations where an indigenous company must pair with a foreign organization, this method of entry is advisable.
This method requires that the products are sold to a middleman before it enters the country. The producer does not have direct control of the products after it leaves the warehouse. Consumer satisfaction would be collected based on the number of sales or direct survey.
An effective marketing mix would survey the market segments before entry. This would help the manager decide the best market entry. The survey would be conducted on the product, product variety, product appearance, quality, product functionality, packaging, and brand name. When this combination is carefully examined, the company would attain its potential in the sale of products.
The demand for organic dates and the jam will increase the profit margin of the company. The increase in the population of both countries will be a significant factor in the demand for organic dates. The mode of entry of the products would position the company globally. The size of the company will increase with an increase in demand. Organic products and jams could boost the economy of both countries and would increase the local investment.