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Ag Sector Exam 3
Terms in this set (25)
Food Market Development
- A wide range of marketing activities designed to enhance the value of food products for consumers
-GOAL is to increase consumer satisfaction, increase firm or industry profits.
-Advertising, one of the more visible food market development tool.
1) Price (list, discounts, credit)
2) Product (quality, package)
3) Promotion (advertising, sales)
4) Place (distribution channels)
Negative, No-Demand, Latent, Faltering, Full, Irregular, Over-Full, Unwholesome (Excessive) Demand.
-Most potential consumers dislike the product and wont buy it. (Ex. seaweed, dogs, fish, worms)
-Negative demands states can become positive
Exists when consumers are unaware of their needs for a product.
General need for which there is no present product. Task here is to develop new or revised products.
Consumption of product is declining or failing to grow at an acceptable rate.
Ideal state of demand, current levels of consumption and prices are satisfactory. Task is to maintain demand of changing consumer preferences.
Fluctuates depending on situation (turkey, cranberries).
Rare in the food industry but can happen when a product is in short supply and difficult to maintain (blue bell)
Unwholesome (Excessive) Demand
High levels of consumption may prove to be detrimental (tobacco, alcohol)
Classes of Advertising
2) Persuasive (Manipulative)
1. Product Differentiation
2. Market segmentation
-finds a producers unique features that set apart from its competitors
-Build brand loyalty
developing unique product variations that will better appeal to different consumer classes or segments of the market
Criticism of Advertising
- Distorts consumer choices and interferes with consumer sovereignty.
-Information can be manipulated to serve private interests
-Said to be biased, tasteless, deceptive, intrusive
-Market Basket Variable
-Doesn't have to follow certain prices
Wheat, Corn, Soybean
"Great Plains" -Kansas to be known as the breadbasket of the nation. North Dakota, Montana
Types of Elevators
Country, Sub terminal, Terminal
Located near location of production
1. Independent/privately owned
2. Cooperative/farmer owned
3. Line owned - operated from a central headquarters
Big, located near major transportation centers (ports, marketing centers). Most of their grain comes from country elevators.
-Work like a checking account
-Farmer deposits grain and makes a withdrawal at a later date - same quality and grade but not necessarily the same grain.
Products put into uniform classes or grades is important so that products can be identified and properly valued by sellers and buyers, including consumers. 1-5 grade grain range
(Mixing diff lots of grains in a way that raises the grade and value of the total lot) Basically, blending 2 different types of grains on the scale that one being 2 and other 3, they blend or combine the two grains to try and secure the grains to get it as an overall 2 grain.
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