Assignment 1 Critical Essay

Introduction:

This essay will attempt to critically explain how the poor economic climate in the UK might affect the marketing mix of a start-up retail venture in the high street.

This essay will walk through the processes of starting a retail business venture in the high street and discuss how the economy and the marketing mix directly effects each step. To do this it will be vital to explore the current economic climate and what a poor economic climate means?

A definition of a poor economic climate “a recession is a decline in growth, domestic product for two consecutive quarters and a depression as a prolonged recession resulting in falling prices, reduced purchasing power, excess in supply, unemployment, and a general reduction in business activity” (Downes,j.,& Goodman,J.E.(1995).Dictionary of finance and investment terms Hauppage,nj:Barron’s educational series)
This has been the case for the UK since 2007 as we are in what is known as a double dip recession narrowly escaping a triple dip recession. (BBC News 2013, http://www.bbc.co.uk/news/business-22290407) This downturn indicates that the UK is indeed suffering from a poor economic climate having the effect of less spending and so less trade occurring in the local, regional, continental, or global marketplace.

How this relates to a start up venture in the high street has both negative and positive effects. To look at each of these effects it is best to look at the entire process of starting a new company and the effects upon the marketing mix and explain its importance.

Extended version includes – (People, process and physical evidence)

Main Body:

Product:

Many companies are started by a simple idea, a need, demand or gap in the market is noticed, followed by a proposed method