Marketing

The market place

• Target markets: is a large group of consumers who share common needs or characteristics and which a company determines to be a focal point of a marketing strategy. E.g. Age, gender, income or location.

• Niche markets: a small portion of the target market. E.g. Cholesterol-lowering margarine, lactose-free milk and vegemite in a tube.

The marketing environment

• Competition: any product that competes for the consumer dollar as firms or companies market similar or substitute products.

• Economy: the state of the economy affects the consumer’s ability and willingness to spend.

• Political, legal and regulatory factors: labelling and food safety regulations

• Social and cultural environment: affects how people live and behave and this influences customer buying behaviour

• Technological environment: development of new processes and new products

Market research

1. Review of international research2. Research consumers needs and wants3. Gather information from consumers,

salespeople and suppliers4. Analysis of the research undertaken by

government bodies

SWOT analysis Strengths• The product has a valuable brand status• Strong nutritional profile• Celebrity supportWeaknesses• People want a change• Size of the advertising budget is high• Consumers are more health conscious so are shifting to low fat productsOpportunities• Increasing demand for ‘ better for you’ products may lead to new productsThreats• Competitors• New packaging or labelling requirements• The cost of raw ingredients may rise

Marketing fundamentals

• Product: not just characterised by its physical features, but other factors such as service, packaging and pricing.

• Price: an assessment of the target market will determine whether the consumer expects a high-quality product and is willing to pay a higher price for it.

• Place: the location at which consumers purchase the product

• Promotion: enliven the sense of sight and allow it to work on and activate the other senses

Promotional tools

• Advertising in the media• Personalised advertising • Free samples• Cash-back offers or entries• Point-of-sale displays• Company sponsorship • Recipe cards and books• Tie-in promotions • Promotional campaigns

Ethical food marketing to children

Strategies • On television• Poster competitions• Providing free educational resource material• Food and drinks for sale on school grounds or very close by• Coupons collected by children for a free item of food• Internet sites and games• Within television programs used in the curriculum• Corporate logos on equipment, buildings and prizes awarded

for excellence • Sponsorship of school events