Post on 03-Apr-2018
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Product → Solution
Promotion → Information
r ce → a ue
Placement → Access
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Internal External
R & D department, committee or
task force
Suppliers or market intermediaries
Top executives Customers
Sales representatives Competition
Production staff Freelance inventors
Having generated a number, -sometimes a large number- of ideas, the filtration process must begin. The
objective is to identify new product ideas which are weak in terms of their chances of market success or their
potential return-on-investment. The important point here is that product ideas must be evaluated against the
company's objectives. A company must have a clear mission and know what business it is in. Only then canproduct ideas be matched with company objectives and resources.
Noncompetitive firms Patent applications
Consider the example, of a manufacturer of processed meat products (sausages, hamburgers, corned
beef etc.) Who developed an improved binding agent based on rolled oat rather than rusk. Wishing to fully
exploit this development, some individuals, within the company, wanted to market the new binding agent to
other food manufacturers as well as making use of it to improve their own meat products. On the face of it
this proposition made good sense since it appeared to meet a market need but the idea was rejectedbecause it did not fit the company's objectives or resources. First, whilst the rolled oat based product was
unquestionably superior in performance to rusk binding agents it cost almost twice as much. Substantial
resources would have had to be devoted to marketing the product to others. Second, the company had
expertise in consumer marketing but no experience in industrial marketing. Third, the company profit
objectives were tied to exploiting volume markets through mass marketing. In contrast, the new binding
agent was only likely to appeal to a niche market i.e. those food companies with premium quality meatproducts where the cost of the value added by the improved binder could be recouped.
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Brand product
importanceSome people distinguish the psychological aspect of a brand from the experiential aspect.
The experiential aspect consists of the sum of all points of contact with the brand and is
known as the brand experience. The psychological aspect, sometimes referred to as the
brand image, is a symbolic construct created within the minds of people and consists of allthe information and expectations associated with a product or service.
A brand which is widely known in the marketplace acquires brand recognition. When brand
recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in
, .
is the identification of a brand without the name of the company present.
Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose
deliberately to launch totally new brands in apparent competition with its own existing strong
brand (and often with identical product characteristics); simply to soak up some of the share of
the market which will in any case go to minor brands. The rationale is that having 3 out of 12
brands in such a market will give a greater overall share than having 1 out of 10 (even if muchof the share of these new brands is taken from the existing one). In its most extreme
manifestation, a supplier pioneering a new market which it believes will be particularly attractive
may choose immediately to launch a second brand in competition with its first, in order to pre-
empt others entering the market
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Food Labelling in the EUFood Labelling in the EU
Competition for finite space byever-increasing information
requ rement.Information needs to be: readable AND
understandable
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Food Labelling in the EUFood Labelling in the EU
The Stakeholders –
Le islators
Consumers Manufacturers and retailers
Regulatory agencies
Analysts
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Food Labelling in the EUFood Labelling in the EU
Consumers –
need information to –
provide identity, quantity advice on safe storage and use
enable informed choice
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Food Labelling in the EUFood Labelling in the EU
Manufacturers and retailers –
help differentiate / sell the product comply with legislation
enable traceability of products
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Food Labelling in the EUFood Labelling in the EU
Retailers – additionally –
checkout scanning stock control via in-store database
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Food Labelling in the EUFood Labelling in the EU
Regulatory agencies and analysts –
need data to enable checkin that
regulatory standards are fulfilled labelling regulations are complied with
claims are fulfilled
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Food Labelling in the EUFood Labelling in the EU
More information
ompe on or n e pace
Would better label design help?
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Food Labelling in the EUFood Labelling in the EU
Full texts of all labelling-related EU Directives and
Re ulations can be accessed b links on the Web
pagehttp://europa.eu.int/comm/food/food/labellingnutrition/food
labelling/index_en.htm
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Food Labelling in the EUFood Labelling in the EU
DIRECTIVE 2000/13/EC OF THEEUROPEAN PARLIAMENT AND
on labelling, presentation and
advertising of foodstuffs
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Food Labelling in the EUFood Labelling in the EU
COMMISSION DIRECTIVE2001/101/EC
of 26 November 2001regulating the definition of meatfor labelling purpose, where meat
is used as an ingredient infoodstuffs
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Food Labelling in the EUFood Labelling in the EU
COUNCIL DIRECTIVE90/496/EC
concerns nutrition labelling offoodstuffs to be delivered to theconsumer
(compulsory if a claim is made)
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Food Labelling in the EUFood Labelling in the EU
COMMISSION REGULATION(EC) No 1825/2000
of 25 August 2000
Detailed rules for the labelling ofbeef and beef products
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Food Labelling in the EUFood Labelling in the EU
COMMISSION DIRECTIVE2002/67/EC
of 18 July 2002on the labelling of foodstuffs
containing quinine, and of
foodstuffs containing caffeine
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Food Labelling in the EUFood Labelling in the EU
Regulation 608/2004/EC
on the labelling of foods and foodingredients with addedphytosterols, phytosterol esters,phytostanols and/or phytostanolesters
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Food Labelling in the EUFood Labelling in the EU
EU LAWS AFFECTINGLABELLING OF GENETICALLY
since 1997 provide forinformation for consumers using
distinctive labelling as a tool formaking an informed choice.
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Food Labelling in the EUFood Labelling in the EU
REGULATION (EC) No 258/97OF THE EUROPEAN
COUNCIL
of 27 January 1997
concerning novel foods and novelfood ingredients (Article 8
concerns labelling)
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Food Labelling in the EUFood Labelling in the EU
COUNCIL REGULATION (EC) No1139/98 of 26 May 1998
As amended b
COMMISSION REGULATION (EC) No49/2000 of 10 January 2000
concerning the compulsory indication ofthe labelling of soy and maize producedfrom genetically modified organisms
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Food Labelling in the EUFood Labelling in the EU
COMMISSION REGULATION (EC)No 50/2000
of 10 Januar 2000
on the labelling of foodstuffs andfood ingredients containing additives
and flavourings that have been
genetically modified or have beenproduced from genetically modified
organisms
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Food Labelling in the EUFood Labelling in the EU
COUNCIL DIRECTIVE
concerns the labelling ofgenetically modified seed
varieties
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Food Labelling in the EUFood Labelling in the EU
27 July 2001: EU CommissionProposals for two Regulations ofthe European Parliament and of
on genetically modified food andfeed concerning traceability and
labelling of GMOs and
traceability of food and feedproducts produced from GMOs
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Food Labelling in the EUFood Labelling in the EU
Regulation (EC) 1829/2003 of theuropean ar amen an o e ounc o
22 September 2003 on geneticallymodified food and feed.
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Food Labelling in the EUFood Labelling in the EU
Regulation (EC) 1830/2003 of theuropean ar amen an o e ounc o
22 September 2003 concerning thetraceability and labelling of geneticallymodified organisms and the traceability of
food and feed products produced fromgenetically modified organisms" andamending Directive 2001/18/EC.
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Food Labelling in the EUFood Labelling in the EU
The “percentage” problem QUID
x a - ree 25% rule Major serious allergens Nutrition and health claims on labels“High”,”low”,“rich in”,“free from”
Salt vs sodium
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Food Labelling in the EUFood Labelling in the EU
DIRECTIVE OF THE EUROPEANPARLIAMENT AND OF THE
of 10 November 2003
amending Directive 2000/13/EC to
provide complete listing of ingredients andindication of allergens present infoodstuffs
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Food Labelling in the EUFood Labelling in the EU
July 2003, EU Commission Proposal for aRegulation on nutrition claims and healthc a m ma e on oo .http://europa.eu.int/eur-lex/en/com/pdf/2003/com2003_0424en01.pdf
Still under debate by officialrepresentatives of Member States!
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Food Labelling in the EUFood Labelling in the EU
DIRECTIVE 98/6/EC OF THEEUROPEAN PARLIAMENT AND
of 16 February 1998
on consumer protection in the
indication of the prices ofproducts offered to consumers
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hi k f h f h b d
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Think of the power of the brand
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Branding decision
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Branding sponsor decision
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Branding extension decision
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Multi brand decision
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Selecting the brand name
Packaging decision
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Labelling decision
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GROWER PACKHOUSE RETAILER
Human readable
field bin label
Batch traceability:
LOT # / PALLET #Trade unit label:
Lot # / BOX #)
TRACKING:
SUPPLIERBATCH
GROWER SUPPLIERBATCH PACKHOUSE RETAILER
TRACING:
SUPPLIER
Mixed logistic unit label:
Pallet # and BOX #
Dairy identificationParmigiano-Reggiano
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casein plate - alphanumeric code
RFID
Production month and year
Dairy identification
number
Parmigiano Reggiano
Oval mark
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Commercial and safety information
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Variety
Size/Caliber
Pack Date
Grown by
Packed by
LOT # or BOX #
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Geographical origin of food : the stakesGeographical origin of food : the stakes
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Globalisation Localisation
Standardised/uniformity Quality certification
World wide locations- S ecific eo ra hic locations
Common place products of unidentified origins
Products with identifiable
roots/origins
Development of global
brands
Develoment of regional
quality products
Mass consumerism Selective and demandingconsumerism
Looking at the
i i l D idi D idi hi h
Major decisions in international marketing
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Deciding on themarketing
organization
internationalmarketing
environment
Decidingwhether to go
abroad
Deciding whichmarkets to enter
Deciding on themarketing
program
Deciding how to
enter the market
Purchase
behavior
Purchase
decision
Evaluation of
alternatives
Problem
recognition
Information
search
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Purchase
decision
Attitudes
of others
Unexpected
situational factors
Evaluation of
alternatives
Purchase
intention
Problem recognition:
ac ua s a e – es re s a e
external stimuli
Information search:
Personal sources: family, friends, neighbors, acquaintances
Commercial sources: advertising, salespeople, dealers, packaging, displays
Public sources: mass media, consumer-rating organizations
Experiential sources: handling, examining, using the product
Evaluation of alternatives:
Alternative evaluation
Product attributes
Brand image
International Trade System face several restrictions: tariff, quota, exchange controls, non-tarif restrictions.
Economic environment:
Subsistence economies
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Subsistence economies
Raw material-exporting economies
Industrializing economies
Industrial economies
Indicators of market potential:
Demographic characteristics
Geographic characteristics
Market entry strategies
Technological factors
Socio-cultural factors
ational goals plan
Exporting
IndirectDirect
Joint venturing
Licensing
Contract manufacturingManagement contracting
Joint ownership
Direct investment
Assembly facilitiesManufacturing facilities
Amount of commitment, risk, control and potential profit
Promotion strategies on the international market
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1.
Straight
extension
2.
Communication
3.
Product
adaptation
5.
Product
invention4.
Dual
Don' change
productAdapt product
Develop new
product
Don' change
promotion
Adapt
romotion
P r o m o t i o n
Product
Whole channel concept for international marketing
Seller's headquartersorganization for
international marketing
Seller Channels
between nations
Channels within
nations
Final
user or buyer
Business actions toward socially responsible marketing
Enlightened marketing
The concept of enlightened marketing holds that a company's marketing should support the best long-run
performance of the marketing system It consists of five principles:
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Low Hi h
Immediate satisfaction
performance of the marketing system. It consists of five principles:
•••• consumer orientated marketing
•••• innovative marketing
•••• value marketing
•••• sense of mission marketing
societal marketing.
Salutary Products
Deficient Products
Desirable Products
Pleasing ProductsLow
HighLong-run
consumer benefit
Marketing ethics
If you are responsible for Marketing in your organization here are some facts you should know:
•••• Long term sales and earnings growth depend on the ability to develop new products and to successfully manage product life
cycles.
•••• Over 70% of all new products fail shortly after introduction, and most products under perform given their product life cycle
potential.
•••• Leading causes of marketing failures cited are: poor planning (research), poor coordination (execution), and unsupportive
cultures.
•••• Marketing capability, and the value of the firm, depend on the supportive capability of the organizational culture.
Culture flaws often precipitate marketing flaws.
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