Business Economies Essay Example | Topics and Well Written Essays - 2250 words

Business Economies - Essay Example 2. Differentiation. 3. Focus. An analysis of both Production and Cost theory of a product is vital. So agricultural and food marketing is taken as an example of this. Agricultural product is occupying a major role in food marketing management. Raw material, land, labor, capital and other factors are required for undertaking production. Consider the example, manufacturer of the product who developed an improved marketing plan. Company profit objectives were tied to exploiting volume markets through mass marketing. Product development policy covers compatibility, market potential and financial objectives. Three types of innovation is important for food manufacturers.1. new marketing methods and techniques to increase the operational efficiency, 2. new products or services to add more value to its products, 3.new business organization,ie cooperative food processor, joint ventures between firms or marketing channels. Concentration should be given to the product by reducing the volume of production and the product sh ould be stored and transported; and an adequate reduction in the marketing cost. As an analytical tool, the growth share matrix has the advantage of being simple and quantifiable in nature. Production is dependent on technology, mixture of factors of production and price as well as the marginal productivity. â€Å"In economics, an effort to explain the principles by which a business firm decides how much of each commodity that it sells (its â€Å"outputs† or â€Å"products†) it will produce, and how much of each kind of labor, raw material, fixed capital good, etc., that it employs (its â€Å"inputs† or â€Å"factors of Production†) it will use. The theory involves some of the most fundamental principles of economics.† (Theory of Production, 2007). Production means conversion of inputs in to outputs. Mainly there are three aspects to the production process- Many factors may contribute to the failure of a new product, but the main cause