Introduction To Food Marketing

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Introduction To Food Marketing

• AGBU 430
• Chapter 1

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Marketing
Marketing performance of all business activities
involved in the flow of food products and
services from the point of initial agricultural
production until they are in the hands of
consumers.
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Other Useful Definitionsof Marketing

• Business activity directed at satisfying needs
  and wants through creating value and facilitating
  exchange
• The process by which people obtain what they want
  and need through creating value and exchanging
  with others.

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8 Marketing Functions

• Buying Function
• Selling Function
• Processing Function
• Storage Function
• Transportation Function
• Grading and Standards Function
• Marketing Information Function
• Risk-Bearing Function

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Farmers Marketing Decisions and Strategies

• What to Produce and Sell?
• When, Where, How to Sell?
• Which Functions to Perform?
• How to Expand Markets?
• How to Improve Farm Prices?
• How to Form Strategic Alliances?

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What a dollar spent on food paid for in 2000
Marketing Bill 537.8 b (81)
Farm Value 123.3 b (19)
Consumer Expenditures in 2000 661.6 b (Source
ERS, USDA)
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Marketing Utilities How To Add Value

• FORM
• Having the product how the consumer wants it
• Processing, Packaging
• PLACE
• Having the product where the consumer wants it
• TIME
• Having the product when the consumer wants it
• POSSESSION
• Making it easy to get ownership of product to the
  consumer
• One stop shopping

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Food Marketing Trendsand Issues

• Hunger, Nutrition
• Globalization
• Integration
• Vertical Coordination
• Concentration, Competition
• Control, Market Power
• Food Safety, Quality

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INCREASES IN CONSUMPTION

• Bottled water
• Mangoes
• HFC Syrup
• Frozen Broccoli
• Skim Milk
• Diet Sodas
• Melons

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DECREASES IN CONSUMPTION

• Veal
• Canned Asparagus
• Whole Milk
• Canned peas
• Cottage cheese
• Sugar (cane)
• Canned corn
• Beef
• Lamb

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Strategies To ReduceFarm Risk

• Hedging, futures markets
• Forward contracting
• Spread sales over time
• Diversify production
• Vertical integration
• Crop insurance
• Market information, analysis
• Increased education
• Reduce debt, increase equity
• Value-adding

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Employment OpportunitiesIn the Food Marketing
Industry

• Market analyst / Market Researcher
• Merchandiser
• Advertising or market communications
• Market economist
• Foodstore / service manager
• Commodity broker
• Purchasing agent
• PR
• New product development manager
• Logistics manager
• Export manager
• Brand / Product manager

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Good Marketing Advice
Know Before You Grow
Where you will market it When you will market
it How you will market it What your price will be