Chapter 1 - Introduction to Food Marketing.ppt

8/16/2019 Chapter 1 - Introduction to Food Marketing.ppt

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Food Marketing and Product DevelopmentFood Marketing and Product Development

By Chay Kongkruy,By Chay Kongkruy,

Vice-Dean of Faculty of Agro-Industry,Vice-Dean of Faculty of Agro-Industry,International Master of Sciences in Rural DevelopmentInternational Master of Sciences in Rural Development

Tel: 012 416 096/0979 729269Tel: 012 416 096/0979 729269

mail:mail:c!a"#$#$%"a!oo&comc!a"#$#$%"a!oo&com


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Chapter 1Chapter 1

IntroductionIntroduction

to Food Marketingto Food Marketing


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Marketing DefinedMarketing Defined

• The performance of all business activities

involved in the flow of food products and

services from the Point of initial

agricultural production until the are in the

hand of consumer


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Food Flow andFood Flow and

MarketingMarketing


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!!

What is marketing ?What is marketing ?

• Production " prices " product relationships " product "promotion " publicit " suppl and demand " distribution

" manage to sell " selling " e#change " offer for sale "the consumer " bringing products to the market " theflow of goods " presentation " packaging " affordableprice " market research " answering $uestions %

• Marketing &

man different meanings to different people

arketing is according to you


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''

What is marketing?What is marketing?

• (ctivities to satisf consumer needs

• )ight product at the right price* place and time

• )ight & what is right for the consumer +customer

• Marketing management & Managerial process, " (nalsis " Planning

" -trateg

" Implementation " Control


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..


• /estern 0urope* 1!2s,

" shortage of products + foods

" no need for stimulating demand

" focus on efficienc of marketing functions

• storage• transportation

• processing

• distribution

" 1.2s, role of institutions

• government

• marketing institutions, auctions* cooperatives


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33


• Toda4s )ich -ociet,

" 5eed for $ualit instead of $uantit

" 5eed for variation " 5ew products* differentiation

• Marketing Management approach

• Customer orientation " customer + consumer is ke and center

" fulfillment of consumer needs


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!he core conce"ts of marketing!he core conce"ts of marketing

• 5eeds* wants and demand

• Products

• 6alue* cost and satisfaction• 0#change* transactions and

relationships

• Markets

• Marketing and marketers


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1212

!he core conce"ts of marketing!he core conce"ts of marketing

• 5eed, state of feeling of scarcit

• /ant, desire for specific satisfier

• Demand, want backed up b spending

power and willingness to pa

• Product,

" 7ffers satisfaction to need or want

" Phsical product or service

• 6alue, estimate of the capacit to satisf a

need


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1111

!he!he core conce"ts of marketingcore conce"ts of marketing

• 0#change, one wa to obtain a product " Two parties

" Things of value for both parties

" Communication and deliver " Freedom to accept or re8ect

" 9elief in appropriateness to deal

• Market, " :roup of people sharing same need+want

" /illing and able to engage in e#change

" (im, satisf the need or want


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1;1;

!he!he core conce"ts of marketingcore conce"ts of marketing

• Marketer,

" Part seeking e#change more activel

"Counterpart & prospect


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1


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1=1=

Com"any orientationsCom"any orientations

• Production orientation,

" Product availabilit is ma8or attention point

" >ow cost

" ?igh production efficienc

• Product orientation,

" Product $ualit

" :ood products* improve products

• -elling orientation,

" -elling and promotion efforts


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1!1!

Com"any orientationsCom"any orientations

• Marketing orientation,

" Core & 5eeds and want of target markets

" (im & Deliver satisfaction

" Through = pillars,

• Market focus

• Customer orientation

• Coordinated effort

• Profitabilit


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1'1'

!he marketing conce"t!he marketing conce"t

11)) Customer oriented + Market focusedCustomer oriented + Market focused;@ Coordinated effort;@ Coordinated effort


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1.1.

** "illars of the marketing conce"t"illars of the marketing conce"t

1@ Market Focus " 5obod can satisf ever need

" Choose our target market

;@ Customer orientation " Define need from customer viewpoint

" )ealiAe customer retention

" Through customer satisfaction " Ma#imiAe opportunit to complain


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1313

* "illars of the marketing conce"t* "illars of the marketing conce"t


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11

!he marketing conce"t!he marketing conce"t

11)) Customer orientedCustomer oriented

;@ Market focused;@ Market focused


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;2;2

0#ample in Fisheries Marketing


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;1;1


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;;;;


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Introduction of Marketing andIntroduction of Marketing andConsumers 9ehaviousConsumers 9ehavious ;=;=


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;!;!


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;';'


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;.;.

Dri#ing forces to ada"t the marketingDri#ing forces to ada"t the marketing

conce"tconce"t

• -ales decline , stabiliAation of population siAe

• -low growth , food market ;B


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The 6alue Chain(n 0#ampleThe 6alue Chain(n 0#ample

C7)5

:)7/0)

F77D

M(5EF(CB

)E)0)

(ECTI75

?7E-0

?7:

F()M0)

->(E:?T0)

?7E-0

/?7>0B

-(>0)

M()0T )0-0()C?

9)(5D M(5(:0M05T (D60)TI-I5:+P)7M7TI75

:)7C0)G-T7)0


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The 6alue ChainThe 6alue Chain

• Different parties

" (dd different kinds of value based on

• -pecialiAation He@g@* growing* processing*

distributing• >ocation

" Ma undertake marketing activities

individuall and+or 8ointl


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The Changing Food Marketing -stemThe Changing Food Marketing -stem

FARM PRODUCTS

FOOD PRODUCTS

The Food Marketing System:

• Firms, Organizations• Product Fo!s, Distri"ution Channes•Management and Marketing Acti#ities

•Pricing and $%change

Science and

Technology

Domestic

and Global

Economy

Competition

Customs and

Values

Laws and

Government

Policies

Consumer

Tastes

and Preferences nfrastructure !transport""#

communication# educ"$ Te#t* figure 1B


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MarketMarket

• >ocation

• Product

• Time• (n institutional


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6alue added6alue added

• Form

http://www.feargod.net/cowphots/cpemdam.jpg


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FormForm

http://images.google.com/imgres?imgurl=http://www.hort.purdue.edu/ext/senior/fruits/images/large/macadamianut.jpg&imgrefurl=http://www.hort.purdue.edu/ext/senior/fruits/macadamia1.htm&h=640&w=480&sz=83&tbnid=4586QC23P00J:&tbnh=134&tbnw=101&start=7&prev=/images%3Fq%3Dmacadamia%2Bnuts%26hl%3Den%26lr%3D%26ie%3DUTF-8http://images.google.com/imgres?imgurl=http://www.thenutfactory.com/photos/nuts-macadamia-rs.jpg&imgrefurl=http://www.thenutfactory.com/kitchen/facts/facts-macadamia.html&h=300&w=300&sz=10&tbnid=Qi_bzHFkP8UJ:&tbnh=111&tbnw=111&start=1&prev=/images%3Fq%3Dmacadamia%2Bnuts%26hl%3Den%26lr%3D%26ie%3DUTF-8http://images.google.com/imgres?imgurl=http://waynesword.palomar.edu/images/macnut1b.gif&imgrefurl=http://waynesword.palomar.edu/ecoph8.htm&h=228&w=336&sz=37&tbnid=M4W3qrLr54gJ:&tbnh=78&tbnw=114&start=4&prev=/images%3Fq%3Dmacadamia%2Bnuts%26hl%3Den%26lr%3D%26ie%3DUTF-8


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PlacePlace

http://images.google.com/imgres?imgurl=http://www.hort.purdue.edu/ext/senior/fruits/images/large/pineapple.jpg&imgrefurl=http://www.hort.purdue.edu/ext/senior/fruits/pineapple1.htm&h=640&w=480&sz=85&tbnid=O1Mt_tnlr5kJ:&tbnh=134&tbnw=101&start=1&prev=/images%3Fq%3Dpineapple%2Bfruits%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://rredc.nrel.gov/solar/old_data/noaa/gifs/NOAAmap.gif&imgrefurl=http://rredc.nrel.gov/solar/old_data/noaa/&h=309&w=432&sz=28&tbnid=bi1we-ScqzEJ:&tbnh=87&tbnw=121&start=18&prev=/images%3Fq%3DHonolulu%2Bcity%2Bview%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://hawaii.hotels-us.info/images/hawaii/hawaii-map.gif&imgrefurl=http://hawaii.hotels-us.info/&h=287&w=400&sz=21&tbnid=5ejhjJjZ_qwJ:&tbnh=86&tbnw=119&start=1&prev=/images%3Fq%3DHawaii%2Bmap%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DGhttp://images.google.com/imgres?imgurl=http://www.mala.bc.ca/~earles/geol390/new-hawaii-map.jpg&imgrefurl=http://www.mala.bc.ca/~earles/geol390/images.htm&h=727&w=600&sz=137&tbnid=Fw7QLmevrzsJ:&tbnh=138&tbnw=114&start=2&prev=/images%3Fq%3DHawaii%2Bmap%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DG


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Place and formsPlace and forms


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TimeTime

http://www.anaurora.co.uk/Win2003/Christmas-trees.jpghttp://www.kulmbach.net/~MGF-Gymnasium/bilderdaten/haustiere%202/Bilder/truthahn%20trukey%20pavo%202_jpg.jpg


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PossessionPossession

http://images.google.com/imgres?imgurl=http://www.aarrgghh.com/media/cash.jpg&imgrefurl=http://www.aarrgghh.com/media/cash.html&h=328&w=497&sz=78&tbnid=sc3dfHP55MYJ:&tbnh=83&tbnw=125&start=8&prev=/images%3Fq%3Dcash%26hl%3Den%26lr%3D%26ie%3DUTF-8http://images.google.com/imgres?imgurl=http://www.house.gov/sherman/images/credit_cards.gif&imgrefurl=http://www.house.gov/sherman/&h=400&w=300&sz=43&tbnid=4b4l25ZNKUkJ:&tbnh=120&tbnw=90&start=4&prev=/images%3Fq%3Dcredit%2Bcards%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DNhttp://images.google.com/imgres?imgurl=http://www.karst.org/mcvis.jpg&imgrefurl=http://www.karst.org/credit_cards.htm&h=591&w=476&sz=39&tbnid=Bm7Y0gRvJcIJ:&tbnh=131&tbnw=106&start=12&prev=/images%3Fq%3Dcredit%2Bcards%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DN


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Marketing processMarketing process

• Movement, It is the series of actions andevents that take place in some se$uence

• Coordination, It is the series of eventsand activates is necessar if goods are tomove in some of orderl fashion from the

farm to the fork


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MovementsMovements

http://images.google.com/imgres?imgurl=http://www.lapc.cc.ca.us/usr/shapirls/CalPolyMilking22002_lg.jpg&imgrefurl=http://www.lapc.cc.ca.us/usr/shapirls/ag_ambassador_conference_2002.htm&h=973&w=1460&sz=552&tbnid=50hWnMY3ZCoJ:&tbnh=99&tbnw=148&start=79&prev=/images%3Fq%3Dmilking%2Bcows%26start%3D60%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DNhttp://images.google.com/imgres?imgurl=http://www.cr.nps.gov/history/online_books/anthropology74/images/figure5.21.jpg&imgrefurl=http://www.cr.nps.gov/history/online_books/anthropology74/ce5c1.htm&h=187&w=250&sz=9&tbnid=8Px6h45dKT8J:&tbnh=79&tbnw=105&start=10&prev=/images%3Fq%3Ddairy%2Bfarm%26hl%3Den%26lr%3D%26ie%3DUTF-8http://images.google.com/imgres?imgurl=http://www.filmnorthflorida.com/gfx/resized/Walnut-Hill:-VanPelt-Farm_13.jpg.0.6.jpg&imgrefurl=http://www.filmnorthflorida.com/locations/Walnut-Hill:-VanPelt-Farm&h=587&w=384&sz=35&tbnid=dEO5VPT5O-YJ:&tbnh=131&tbnw=86&start=14&prev=/images%3Fq%3Ddairy%2Bfarm%26hl%3Den%26lr%3D%26ie%3DUTF-8


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MovementsMovements

http://images.google.com/imgres?imgurl=http://www.senecatank.com/Newtw/2003STERLINGAA2.JPG&imgrefurl=http://www.senecatank.com/news/tanktrucks.htm&h=283&w=432&sz=29&tbnid=dbMGJ_YwISwJ:&tbnh=80&tbnw=122&start=2&prev=/images%3Fq%3Dtank%2Btrucks%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DG


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CoordinationCoordination

• Pricing

http://images.google.com/imgres?imgurl=http://www.inter-connectedwebdesigns.com/assets/images/pricing.jpg&imgrefurl=http://www.inter-connectedwebdesigns.com/html/pricing.html&h=285&w=190&sz=7&tbnid=2gbVEn1M6bEJ:&tbnh=109&tbnw=73&start=10&prev=/images%3Fq%3DPricing%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DG


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CoordinationCoordination

• 6arious arrangement

• Contact producers

• Terminal market• Trade (ssoc

• Marketing news

Documents

Chapter 1 - Introduction to Food Marketing.ppt