Developing new food products for a changing marketplace

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Advantages and Disadvantages of Market and Product Development Strategies |

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. Lastly, consumer price willingness to pay is another tool used in food marketing to track how much a person is prepared to pay for a product. Marketers can take note of people's readiness to pay to see if they would indeed buy their product Remar et al. Studies have shown that consumers are prepared to spend more on an item if it is environmentally friendly and portrays them as having sustainable behavior in society Remar et al.

This is vital information when it comes to food marketing and helps companies make informed decisions about their food marketing strategies.

Developing New Food Products for a Changing Marketplace

Corporate spending on sponsorship worldwide grew 5. Food companies are also investing millions into individual athletes in return for accesses to their exploitable commercial potential. With regards to marketing according to Liaw and Tam , ethics deals with moral principles behind the operation of marketing. At major sporting events, customers are exposed to a multitude of food-related sponsorship, with sponsorship associated with products classed as unhealthy twice as common as those classed as healthy 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 the misconceptions created through sponsorships by energy drink brands such as Red Bull.

Social media platforms are an effective way for food marketers to enter or attract a market. These websites allow users to upload and share content such as information, pictures, opinions and recommendations with the touch of a button. Food companies use unique marketing techniques designed to connect with the consumer such as running competitions, holding free giveaways and creating interactive games and apps.

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Freeman et al. A study of supermarket catalogues distributed globally has also yielded information which supports the claim that food advertising is contributing to rising global obesity levels, especially in countries where the advertising is more prominent, consistent and persuasive. Charlton et al.

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The study also noted that India and The Philippines were the only countries analysed that advertised a vast majority of healthy foods over unhealthy options. 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 to the consumer as they are usually stationed in areas with no larger food options nearby, such as university campuses and gyms. Consumers using vending machines will usually pay a slightly higher price for the item, and will usually not be concerned as the price difference accounts for the convenience provided to them.

There are no set worldwide food marketing laws or legislation, therefore countries have the option to adopt their own legislation with regards to food marketing standards.

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  5. Restrict Food Marketing, Following a 'call out' from the Worldwide Health Organisation in , many countries adopted to change marketing laws and legislation in order to protect children from persuasive advertisements directly targeted at them. These advertisements are strategically designed with special techniques in order to attract the children's attention. The Chilean Government has taken some of the most drastic steps in by approving the 'Law of Nutritional Composition of Food and Advertising'. Iran's Ministry of Health and Medical Education has also prepared a document in containing 24 items in which they hope to prohibit the advertising of in future.

    In addition to Iran and Chile's more extensive legislation's, over 30 countries worldwide have all adopted some form of legislation to protect children and reduce their exposure to advertisements. Advertising to children at a young age is a well-established food marketing technique designed to encourage brand preference and holds many ethical dilemmas. Previous studies have concluded that children can recognize and mentally picture brand logos at the age of just six months old, and will verbally request brands at the age of 3 years.

    Marketing professor James McNeal acknowledged "The Drool Factor" — a study which recognized the fact that babies naturally stare down at their bibs while drooling to see where their drool lands. This is seen as unethical in many countries and is why organisations such as 'The Campaign for a Commercial-free Childhood' exist and what they aim to reduce.

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    Food product development 1 - Reasons for new products

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    Nutrition Reviews. Food marketing management: an international perspective. Cross-national and cross-cultural issues in food marketing. New York: International Business Press. Journal of Urban Economics. Hampe, E. The New England Journal of Medicine. European Journal of Marketing. G Walton College of Business : 3— T; Tam, C. M Australian Family Physician. The Sunday Times. Health behaviors and perceptions of role modelling and marketing of unhealthy products". Health Promotion Journal of Australia.

    Advantages of Product Development Strategy

    Retrieved L Potential negative outcomes from sponsorship for a sport property. London: Routledge. Aarhus School of Business and Social Sciences.