Food marketing

Food marketing brings together the food producer and the consumer through a chain of marketing activities. ^[1] The marketing of a single food product can be a complicated process involving many producers and companies. For example, fifty-six companies are involved in the making of chicken noodle soup . These businesses include not only chicken and vegetable processors, but also the companies that transport the ingredients. The food marketing system is the largest direct and indirect nongovernment in the United States .

Pomeranz & Adler, 2015, define food marketing is defined as a chain of marketing activities that take place within the food system between a food organization and the consumer. ^[2] This is the potential to be a complicated procedure, as it is used in the food product. These include food processing , wholesaling, retailing, food service and transport. ^[3] Due to these many processes, a multitude of organizations have been involved in the sale of one food product. ^[4] For example, approximately fifty-six organizations are involved in the making of a chicken noodle soup. ^[2]These organizations not only include the processors who make the ingredients for the product, but also involve the companies who manufacture the cans, print the labels and transport the product. ^[5] Therefore, we have a global scale, the food marketing industry is one of the largest direct and indirect employers. ^[2]

For Schaffner & Schroder, 1998, food marketing is the act of communicating to the consumer through a range of marketing techniques in order to add value to a food product and persuade the consumer to purchase. This includes all activities that occur in between the completion of a product through the purchasing process of consumers. ^[6] Food marketing systems differ economically and technologically (Kaynak, 1999). ^[7] Understanding and interpreting a particular countries of the socio-economic, cultural, legal-political and environmental environment of country (Kaynak, 1999 ^[7] ).

History

There are three historical phases of food marketing: the fragmentation phase (before 1870-1880), the unification phase (1880-1950), and the segmentation phase (1950 and later). ^[8]

United States

Fragmentation phase (pre-1870-1880)

In the fragmentation phase, the United States was divided into numerous geographical fragments because it was expensive, leaving most production, distribution, and selling locally based. ^[5] [9]

Unification phase (1880-1950)

In the unification phase, distribution was made possible by railroads , coordination of sales was made possible by the telegraph and telephone, and product consistency was made possible by advances in manufacturing. This new distribution system Was led by meat processors Such As Armor and Swift in Midwestern cities and by companies Such As Heinz , Quaker Oats , Campbell Soup , and Coca-Cola , qui sold Nationally Their brands. Advertising in print media and direct marketing through demonstrations are the primary marketing tools. The initialCrisco campaign, in 1911, was an example. ^[5] [9]

Segmentation phase (1950 to current)

In the segmentation phase (1950 and later) radio, television and internet advertising made possible for a wider range of competing products to focus on different benefits and images and similar appeal to different demographicand psychographic markets. Distribution via the new national road system strengthened national brands. ^{[5] [9] [10]}

Marketing mix

The four components of food marketing are often called the “four Ps” of the marketing mix because they relate to product, price, promotion, and place. ^[11] [12] One reason food manufacturers receive the largest percentage of the retail food dollar which is the most differentiating, value-added service. The money that manufacturers invest in developing, pricing , promoting, and selling their products differentiates food products on the basis of both quality and brand name recognition . ^[2] Overall, the marketing mix can add value to a food organization’s product. ^[13]

Product

In deciding what type of food is most likely to be developed, or a new product can be tried or tested. For example, a sweet, flavored yogurt drink would be a new product, but it would be an extension of an existing product. There are three steps to both developing and extending: ideas, ideas for feasibility, and test ideas for appeal. Only after these steps will the food product make it to the national market. Of a hundred new food product ideas that are considered, only six make it to a supermarket shelf.

The food industry faces numerous marketing decisions. Money can be invested in brand building (through advertising and other forms of promotion) to increase the price of a product. Coca-Cola , for example, has a great deal of money both on its formula and on the brand. This allows Coke to charge more for its product than can makers of regional and smaller brands. Manufacturers may be able to leverage their existing brand names by developing new product lines. For example, Heinzstarted out as a brand for pickles but branched out into ketchup. Some brand extensions may involve a risk of damage to the original brand. Coca Cola, for example, refused to apply the Coke name to a diet drink when artificial sweeteners had a significantly less attractive taste. Coke created Cola Tab, but only when aspartame (NutraSweet) was approved for use in soft drinks did Coca Cola come out with a Diet Coke. Whereas, a certain level of consumer loyalty is a factor in the level of consumer loyalty, that is, a tendency for consumers to continue to buy a preferred brand. For loyalty to be present, it is not enough to simply observe that the consumer buys the same brand consistently. The consumer, to be loyal brand, must be able to actively resist efforts by competitors. A brand loyal consumer will continue to be a preferred brand, even if a competing product is improved, or receives a preferred price. Some consumers have multi-brand loyalty. Here, a consumer switches between a few preferred brands. The consumer may be used for one or two of the preferred brands. This consumer, however, would not switch to other brands on sale. Brand loyalty is, of course, a matter of degree. Some consumers will not be able to switch to other products, but they will be able to switch to other products. A brand loyal consumer will continue to be a preferred brand, even if a competing product is improved, or receives a preferred price. Some consumers have multi-brand loyalty. Here, a consumer switches between a few preferred brands. The consumer may be used for one or two of the preferred brands. This consumer, however, would not switch to other brands on sale. Brand loyalty is, of course, a matter of degree. Some consumers will not be able to switch to other products, but they will be able to switch to other products. A brand loyal consumer will continue to be a preferred brand, even if a competing product is improved, or receives a preferred price. Some consumers have multi-brand loyalty. Here, a consumer switches between a few preferred brands. The consumer may be used for one or two of the preferred brands. This consumer, however, would not switch to other brands on sale. Brand loyalty is, of course, a matter of degree. Some consumers will not be able to switch to other products, but they will be able to switch to other products. a consumer switches between a few preferred brands. The consumer may be used for one or two of the preferred brands. This consumer, however, would not switch to other brands on sale. Brand loyalty is, of course, a matter of degree. Some consumers will not be able to switch to other products, but they will be able to switch to other products. a consumer switches between a few preferred brands. The consumer may be used for one or two of the preferred brands. This consumer, however, would not switch to other brands on sale. Brand loyalty is, of course, a matter of degree. Some consumers will not be able to switch to other products, but they will be able to switch to other products.

The product of the marketing mix refers to the goods and / or services that the organization will offer to the consumer. ^[11] An organization can achieve this by either creating a new food product, or by modifying or improving an existing food product. ^[2] For example, an organic almond yoghurt drink would be considered a new product, while a chocolate flavor would be an extension of an existing product (Helm & Gritsch, 2014). The three steps to develop and extend a food product. Once these steps have been completed, the food product can be manufactured to the food market. ^[2]

Price

In profitably pricing the food , the manufacturer must keep in mind that the retailer adds 50 percent to the price of a wholesale product. For example, a $ 4.50 for $ 4.00 for an average of $ 3.00 for the manufacturer. This money has to pay for the cost of producing , packaging , shipping, storing, and selling the product.

Price encompasses the amount of money paid by the consumer in order to purchase the food product. ^[11] When pricing the food products, the manufacturer must bear in mind that the retailer will add a particular percentage to the price on the wholesale product. This percentage amount differs globally. ^[2] The percentage is used for the cost of producing, packaging, shipping, storing and selling the food product. For example, the price of food in a supermarket selling for $ 3.50 a year of $ 2.20 for the manufacturer. ^[11]

Promotion

Promoting a food to consumers is done out of store, in store, and on package. Advertisements on television and in the consumer market are likely to be favorably priced, so they go to the store to purchase the product. In addition to advertising, promotions can include aussi Sunday newspaper ads That offer coupons Such As cents-off and buy-one-get-one-free offers.

Promotion of the marketing mix is ​​defined as the actions used to communicate a food product’s features and benefits; therefore, persuading the consumer to purchase the product. ^[11] There are many avenues used to promote a food product to consumers. Some examples are out-of-store, in-store and on packaging (Helm & Gritsch, 2014). Food advertisements on television are used to attract the consumer, persuading them to go to the store and buying that food product. Additionally, promotions in magazines and newspapers may offer coupons for food products (Frechette, 2015).

Place

Place refers to the distribution and warehousing efforts necessary to move a food from the manufacturer to a location where a consumer can buy it. It can also be referred to as the product (eg, the end of the aisle, the bottom, or the middle shelf, a special display case, etc.).

The food marketing system in the United States is an amazingly flexible one. Consumer focus helps marketers anticipate the demands of consumers, and production focus helps them respond to market changes. The result is a system that meets and influences the ever-changing demands of consumers.

Place refers to the activities that organizations make to consumers. This class includes the distribution of a product to a location where it can be purchased by the consumer. ^[11] Product location in a store is also a definition of place in the marketing mix. For example, a special place in the aisle, a shelf or a supermarket display (Helm & Gritsch, 2014).

Segmentation

In order to market its food products, an organization must first understand its products will satisfy the consumer’s needs better than competitors do (Noori, 2015). In order to achieve this, an organization must understand the types of segmentation. ^[2]

Geographic

An organization must understand where it is marketing its food products to a geographical sense (Schlanger & Maas, 2013). It will be necessary to define the needs of a particular consumer culture (Adeigbe, Baldwin, Gallion, Grier & Ramirez, 2015). For example, researching the consumer in America or Asia; or, whether the consumer lives in a rural city or city (Schlanger & Maas, 2013). By understanding these aspects, the organization will be able to identify that a consumers’ food needs differ depending on where they live.

Demographic

A food organization must understand the demographic segment (see David, Schramm-Kelin, Rank & Wanger, 2015). Factors that should be considered in age, gender, education, social class, income, religion and ethnicity (Quinn & Dibb, 2010). All of these aspects can impact the consumer.

Psychographic

A food organization must understand its psychographic consumer . Factors such as lifestyle, personalities, opinions, activities and interests of its potential consumers must be considered (Schlanger & Maas, 2013). Identifying these aspects can help an organization to improve its food products.

Behavior

A food organization can understand how consumers can behave towards a food product (David, Schramm-Kelin, Rank & Wanger, 2015). For example, information researching the benefits sought, the attitude toward the food product and nutritional knowledge of the product are all beneficial (Noori, 2015).

Criticism

In recent years, food marketing has been criticized by professionals as being a major factor in contributing to childhood obesity . Nestle (2006) suggests that food marketing is a high-calorie and high-sugar diet. ^[14]The fact that areas of food marketing are related to obesity is about, and their food choices. Television and print media still stand as the traditional communication channels for food marketing, but other popular approaches are also more prevalent these days. These include the Internet, toys, packaging, video games, blockbuster movies, character licensing of children’s toys and celebrity advertising (McGinnis, Appleton Gootman, & Kraak, 2006). The employment of these food marketing strategies is growing, and is said to be partly responsible for childhood obesity (Cartere, 2009).

Product placement in children’s movies and television shows gives food marketers more power to get married with this market segment (Cartere, 2009). The power brands have gone through the process of being marketed in the marketplace. Charges come into play when this saturation occurs when children are unhealthy (Kline, 2010). Children are a fast moving market segment, firstly because they yield influence over their parents buying, But they are future consumers themselves (Cartere, 2009). Food marketers capitalize on the most children and their parents. According to McGinnis et al. (2006), by the time children are two years old, the majority can identify brands in supermarkets and demand them by name. It has been argued that these marketers are more likely to be involved in their nutrition than their parents. Disregarding parental advice and taking care of themselves. Food marketers capitalize on the most children and their parents. According to McGinnis et al. (2006), by the time children are two years old, the majority can identify brands in supermarkets and demand them by name. It has been argued that these marketers are more likely to be involved in their nutrition than their parents. Disregarding parental advice and taking care of themselves. Food marketers capitalize on the most children and their parents. According to McGinnis et al. (2006), by the time children are two years old, the majority can identify brands in supermarkets and demand them by name. It has been argued that these marketers are more likely to be involved in their nutrition than their parents. Disregarding parental advice and taking care of themselves. It has been argued that these marketers are more likely to be involved in their nutrition than their parents. Disregarding parental advice and taking care of themselves. It has been argued that these marketers are more likely to be involved in their nutrition than their parents. Disregarding parental advice and taking care of themselves.^[14]

Food marketers also use appealing packaging to attract children to their products through bright colors, including toys in schemes (McDonald’s Happy Meals with a toy included is an example) and using famous television or film characters to spark interest (Cartere, 2009). In terms of packaging, brands will also change the size of products to entice children. Large companies have been made responsible for supplying schools with branded sponsorships and sporting goods as well as flaunt a company’s logo (Cartere, 2009). Food marketers are criticized further than being responsible for child obesity rates, and are said to be children in the childbearing society (Frechette, 2015).

Childhood obesity

It has been shown by Frechette’s (2015) that they have become more susceptible to unhealthy food commercial marketing messages from food organizations (Cairns, Angus, Hastings & Caraher, 2013). Harris, Pomeranz, Lobstein, & Brownell (2009) suggest that food marketers have been unhealthy or poorly suitable foods. Organizations achieve this through direct and indirect marketing tactics on television adverts, games, social media and food packaging (Freeman, Kelly, Baur, Chapman, Chapman, Gill & King, 2014). These tactics have an explicit effect on children’s dietary patterns, diet-related health, nutritional knowledge, purchase behavior and preferences (Vandevijvere & Swinburn, 2015). Overall, it is one of the leading contributors to childhood obesity (Schor & Ford, 2007). This is becoming a global issue.^[4]

In order to prevent the current unhealthy food marketing culture, Sacks, Mialon, Vandevijvere, Trevena, Snowdon, Crino & Swinburn (2015) believe that there are methods and policies that should be put into place by governments. Firstly, parents should be informed of the nutritional values ​​of the foods they are giving to their children (Grier, Mensinger, Huang, Kumanyika & Stettler, 2007). For example, an easy-to-read nutritional label on food packaging that provides nutrient values ​​and their definitions (Nikolova & Inman, 2015). This will create healthier environments for families around the world (Sacks et al., 2015). Secondly, parents could be exposed to (Newman & Oates, 2014). For example, parents could use ad-blocking or television watching time applications (Thaichon & Quach, 2016). Through the implementation of these strategies, governments can contribute to decreasing the rates of childhood obesity through food marketing.^[3]

Misleading nutritional information

Schermel, Emrich, Arcand, Wong & The Abbot, 2013). It has become more prevalent than food organizations are not entirely transparent in their food products. For example, saturated fats, sodium and added sugars (Harris, LoDolce & Schwartz, 2015). Such as “less sugar”, “fat free” and “all natural” lead consumers to believe that the foods are healthy (Nikolova & Inman, 2015). Sacks et al. (2015) discusses that in order to prevent misleading food advertising, governments should implement policies regarding the placement of food products.

Purchasing decisions

Food marketing not only involves the marketing of consumer products, but also the reasons for these factors (Sahay, Stough, Sohal, & Goyal, 2006). Demographics, values ​​and attitudes, incentives, and price willingness in the marketing of food.

Firstly, food marketers must be aware that the attitudes and values ​​of their target market play a significant role in what they choose to buy. For example, in terms of the green brand market, consumers will first be environmentally conscious and therefore intend to purchase such products. They have been marketed to a consumer, they need to feel that they are contributing to the environment (Kapuge, 2016). Consumers that have concern for the environment tend to alter their behavior to be more environmentally friendly. Values ​​and attitudes to sustainable driving behavior (Kapuge, 2016). Marketers need to convey to their consumer market through information that some items have adverse effects on the environment.

In this paper, it has been suggested that someone’s understanding of these products anticipates their ecologically friendly actions (Nikolova & Inman, 2015). Because knowledge is a key factor in consumer buying choices. When strategists are food marketing, it is important to create a relationship with the market (Nikolova & Inman, 2015).

Demographics play a large role in the determination of the market of consumers. Such as age allows to brand to market its food towards certain age groups according to their wants. Education also comes into play with people buying better food (Sahay et al., 2006). Income alike sees if people have more disposable income to spend on good products. Gender further allows food marketers to target the majority of families (Sahay et al., 2006).

Signage conveys a lot about a brand, for example what type of food they sell, the ingredients, where it was made and the cost of the products. Signage precisely communicates with the buyer and is an essential way to affect feelings and brain processes of a person (Remar, Campbell, & DiPietro, 2016). Findings show that certain digital signposting of a brand influence influences consumer perception and behavior towards a product, meaning food marketing strategies that are very effective in brand positioning (Nikolova & Inman, 2015).

Lastly, consumer price willingness to pay is another tool used in food marketing. Marketers can take note of people’s readiness to pay if they would indeed buy their product (Remar et al., 2016). Studies have shown that they are likely to spend more on an item of information (see Remar et al., 2016). In addition, it has been reported that it is more likely that it will be more widely grown (Remar et al., 2016). This is vital information when it comes to food marketing.

Food marketing via sponsorships

Corporate spending on sponsorship worldwide grew 5.1% in 2015 reaching $ 57.5 billion, with the biggest spenders on sponsorships being food and beverage giants PepsiCo and Coca-Cola , spending $ 350m and $ 290m respectively. ^[15] Professional sporting events are the primary targets for food companies when using sponsorship as a form of marketing communication, however, these two are more important. ^[16] MillerCoors’ Food and beverage company were willing to spend $ 3.8m for a 30 second commercial during super bowl XLV11. ^[15]Global food brand has been seen to increase their marketing effort through sponsorships of amateur sporting events. ^[17]In 2010 Yum! Brands paid $ 13.5m to name a university basketball stadium the ‘bucket’ Creating the KFC stadium, similarly Papa John’s you purchased the naming rights of a college stadium for $ 5M. Food companies are also investing in the potential of exploitable commercial potential. Peyton Manning reportedly earns $ 10M per year from sponsorship alone, with the highest percentage of sponsorship coming from Papa John’s and Gatorade; similarly Kobe Bryant’s sponsorship from McDonaldswas reportedly worth $ 12M. ^[18]

Ethics of sponsorship strategies

With Liaw and Tam (2015), ethics deals with moral principles behind the operation of marketing. ^[19] McDonald’s and Coca-Cola ‘s Sponsorship of the Olympics ^[1] The ethical ethical issue surrounding the sponsorship of the Olympics is being used as a form of marketing communication by food companies.[19] [19] [19] . ^[20] Although different in many ways, similarities have been drawn between the marketing practices of tobacco companies and the food industry. At major sporting events, clients are exposed to a multitude of food-related sponsorship, with a tendency to be healthy (32.7% versus 15.5%). ^[21] Sponsorships of sport from food or beverage companies that are perceived to be of great health concern, often being cited as a contributing factor to an energy-dense and nutrient poor diet. ^[22]

Other Ethical concerns with sponsorship being used as a marketing tactic by food companies include; the specific targeting of youths, sponsorship from alcohol brands and misconceptions created through sponsorships by energy drink Redbull . ^[23] [24]

Via social media and its influences

Social media platforms are an effective way for food marketers to enter or attract a market. ‘Social media’ refers to websites such as Facebook and Twitter, and apps such as Instagram and Facebook. These websites allow users to upload and share pictures, pictures, opinions and recommendations with the touch of a button. Food companies utilize unique marketing techniques designed to connect with the consumer as they run competitions, holding free giveaways and creating interactive games and apps. (Freeman et al., 2014) ^[25] The benefits of these techniques are distinctive to social media platforms, as they interact and engage with the consumer. (Freeman et al., 2014) ^[25]The increase of social media platforms being used for food marketing is also beneficial to food marketers. AD Block and My Sky are prime examples ^[25]

Supermarket catalogs, product placement and their involvement

A global catalog of distributed global catalogs has also yielded information which is of great importance to the global market, particularly in countries where advertising is more prominent, consistent and persuasive. ^[26] The study concluded that supermarket catalogs have a major influence on the purchasing decisions and patterns of consumers. (Charlton et al., 2015) ^[26] For example, countries with the most consistent, regular catalogs filled with unhealthy foods were among those testing highest for obesity as well. The study also noted that India and the Philippines were the only countries that analyzed a vast majority of healthy foods over unhealthy options. (Charlton et al., 2015).^[26]

Product placement is another food marketing technique that draws the consumer in and encourages them to purchase. Vending machines and pop-up sample booths are model examples of product placement techniques used by food marketers. Vending machines provide convenience in the area of ​​campuses and gyms. Consumers using vending machines will usually pay a premium price for the item, and will usually not be concerned about the price difference accounts for the convenience provided to them.

Issues

There are no set worldwide food marketing laws or legislation, therefore, they have the option to adopt their own legislation with regard to food marketing standards. (Restrict Food Marketing, 2016). ^[27] These standards are usually based on the values, culture and ethics of the country (Kaynak, 1999). ^[7] Many countries worldwide have created laws in order to limit food marketing to children with the goal of reducing rising obesity levels. (Restrict Food Marketing, 2016). ^[27] Obesity has been significantly increased with a link to the increase in food marketing and advertising in society. (Dibb & Lobstein, 2005). ^[28]

Following a ‘call out’ from the Worldwide Health Organization in 2006, many countries adopted to change marketing laws and legislation in order to protect children. These advertisements are strategically designed with special techniques in order to attract the children’s attention. ^[29]

The Chilean Government has taken some of the most drastic steps in 2012 by approving the ‘Law of Nutritional Composition of Food and Advertising’. (Restrict Food Marketing, 2016). ^[27] This law provides strict guidelines for food marketers, allowing for high-fat saturated fat, sodium and sugar products to be advertised to under 14 year olds or through television or websites with an audience of more than 20% children. (Restrict Food Marketing, 2016). ^[27] Iran has also taken similar actions, having banned the publication of all the drinks since 2004. Iran’s Ministry of Health and Medical Education has also prepared for a document in 2015 containing 24 items in which they hope to prohibit the advertising of in future. (Restrict Food Marketing, 2016). ^[27]Dibb and Lobstein acknowledges that it is a medium to the marketplace, so children are still highly exposed to influential advertising, shopping malls and grocery stores, vending machines, sponsored toys, contests etc. (Dibb & Lobstein, 2005). ^[28]

In addition to Iran and Chile’s more extensive legislation, all over the world. Some of these countries include Australia, Europe, Canada, Malaysia and Korea. ^[29] An example of the type of clauses in the legislation is to prohibit the use of certain marketing techniques such as using cartoon characters, which can be used to access a child’s mind and gain their attention. ^[29] Using physiological techniques such as these can be ethically wrong in some countries.

A young age is a well-established marketing technique designed to encourage and retain many ethical dilemmas. Previous studies have concluded that children can recognize and mentally picture brand logos at the age of 6 months. (As reported by The Campaign for a Commercial-Free Childhood). Marketing professor James McNeal acknowledged “The Drool Factor” – a study which recognized the fact that they naturally stare down their bibs while drooling to see where their drool lands. ^[30]Customizing baby bibs with brand logos has become an effective way for food marketers to imprint their brand on the child’s lifestyle, targeting them at a disadvantage. ^[30] As a result, when the child is older they will continue to reciprocate warm, a background of feelings towards the brand when encountering it in society. This is seen as unethical in many countries and is why organizations such as ‘The Campaign for a Commercial-free Childhood’ exist and what they like to reduce.

See also

• Teenagers and food marketing
• Agricultural marketing
• Agricultural value chain
• Alcohol advertising
• Fish marketing
• Fast food advertising
• Shrimp marketing
• Wholesale marketing of food

References