CATERING SECTOR AND IMPORTANCE OF MARKETING COSTS IN THIS SECTOR

Catering sector has a longstanding historical background on the conceptual basis. However, the catering sector established itself following the World War I years in the industrialized countries, and subsequently in Turkey beginning with the early 1960s. The sector showed substantial proliferation especially during the last 25 years, initially addressing factories and workplaces which ultimately proceeded to the transition for being a complementary constituent of the food industry. It gained acceptance as a separate sector for the last couple of years. The presence of numerous companies operating in the informal economy setting, affects the marketing and the production costs negatively for the legitimate companies. It poses a grand challenge for the legitimate companies to schedule their marketing costs. Because of the fact that the controllable marketing costs combined with the uncontrollable ones have consequential aftermath effects on the competitiveness. It is an indispensable necessity for the companies to calculate the variable and the fixed marketing costs as well as the controllable and the uncontrollable marketing costs right at the beginning. The marketing costs have long term effects. Hence they reveal their effects in the long term, they happen to be irrevocable for most of the cases. The fact that the marketing costs represent the 50% of the total product and service costs clearly explicates how important they are in point of the competition.