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____ new food products are launched every day.
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Great variation on __ ___ __ trends
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Ag Marketing Exam 1
| Question | Answer |
|---|---|
| ____ new food products are launched every day. | 34 |
| Great variation on __ ___ __ trends | individual product consumption |
| Branding Advantages: | Use of advertising and promotion Brand loyalty Market segmentation Profit through price control Corporate image |
| Attributes/objectives of effective advertising: | Create product awareness for a new product Emphasize special features of existing products Brand name reminder advertising Build consumer demand to pull product through channel |
| Provides purchase incentives like coupons; can be directed to distributors | Promotion |
| Marketing Functions: | Storage Transportation Processing and Packaging |
| Set of firms that move a commodity from the farm to the consumer | Input Supplier, production, assembly, processing, wholesaling, retailing, consumption |
| Consumer concerns: | Environmental - energy use, water, land, air, animal Animal production and processing Biotechnology and GMOs Social - farm labor, poverty |
| Describe food demand today: | Less meal prep at home Meal planning done just before meal time Avg. shopping trip = 20 minutes Meal prep time = 20 minutes Food service activities will capture consumer food expenditure growth |
| Factors affecting consumption patterns: | Increased income More dual income families More single parent families Changing lifestyles |
| Reduces buyer and seller search and transaction costs and fosters a more efficient price discovery process | Uniform food quality grades |
| Demand Curve Shifters | Income Price of substitutes and complements Tastes and Preferences Number of consumers Expectations |
| A tendency for the share of a family's (or the nation's) income spent for food to fall as income rises | Engel's Law |
| As you make money, the proportion of food expenditures to income tends to be smaller. Why? | Increased disposable income Decreased percentage of income spent for food |
| Product that reduces the amount of time, effort, or additional ingredients required of the consumer in preparing food. | Convenience food |
| Identified group or submarket within the total market with different perceived needs | Market Segments |
| Process of identification and focusing on such target markets with differentiated strategies | Market Segmentation |
| Us Food Market: Buys around ___ % of the US agricultural production. | 70 |
| Us Food Market: __ Market for food; overall growth related to population increased. | Mature |
| Each level has to be achieved before the next comes into play; 5 levels | Maslow's Need Hierarchy: Survival Security Social Self-Actualization Self-Esteem |
| What country has the cheapest food costs in the industrialized world, and the smallest percentage of their total income of food? | United States |
| Consumer concerns about food products: | Nutrition Food Safety - microbiological, chemical, contaminants Quality and Shelf life |
| The more highly __ the product, the ___ the percentage of the price that goes back to the farmer. | processed; lower |
| __ are receiving a higher percentage of the increase spending compared to the producers | Agribusinesses |
| Increasing demand for food service? | Increased demand for more processed, consumer friendly products |
| What is the difference between a firm that sets price versus a firm that works with other firms to fix the price? | Monopoly vs. cartel |
| What is the market structure of a firm that sets price? | Monopoly or Monopolistic Competition |
| Agribusiness with product differentiation with "low farm component" (product marketing) | Price Markers |
| Analysis of entire market | Macro-marketing |
| The performance of business activities that direct the forward flow of goods and services to customers and that accomplish the farmers' or firms objectives | Micro-marketing |
| The functional approach is made of what? | Exchange Physical Facilitating |
| Top 2 Crop Commodities | Corn Soybeans |
| __ sales are larger than __ sales for the first time. | crop; livestock |
| List 3 reasons for value-added trade growth | Increase in disposable incomes in importing countries Lower trade barriers Changing consumer tastes and preferences |
| What is the average US farm size? | 434 acres |
| What are the two flows of marketing? | Physical Exchange |
| What is the approach that studies individuals, agencies, and businesses that promote the marketing process? | Institutional |
| What is the dollar amount of sales for Virginia Agriculture? | 3 billion |
| What is the #1 commodity produced in Virginia? | Broilers |
| What is the global population? | 7 billion |
| What do farming, storage, and transportation do to a product? | Add value |
| Buying increases as price decreases | Law of demand |
| Average farm size in Virginia | 180 acres |
| How many of Virginia agribusinesses are fortune 500 industries? | 5 |
| Why has corn production increased? | Ethanol |
| The port of Virginia is within a day's drive for __ people. | 97 million |
| What are the highest valued livestock? | Cattle/calves |
| Changes in the quantity supplied represent - | Supply |
| What percent of US ag is sold abroad? | 30% |
| Agribusinesses with none or weak product differentiation and "high farm component" (commodity handling) | Margin Makers |
| Few buyers | Oligopsony |
| The 4 P'S: | Price Place Production Promotion |
| Differentiated products associated with downward sloping demand curve; producer can control price over a limited range depending upon the degree; the seller does not face an unlimited demand at a set price | Monopolistic Competition |
| Selling | Merchandising |
| Economic goods that can be legally produced and sold by almost any one | Commodities |
| Limited resources can be shifted in the short run. Supply is ___. | inelastic |
| Due to biological lags, farmers' outputs are based on __ __, well before harvest. | Expected prices |
| Cannot be differentiated from production of others; cannot be promoted by individual producers because market entry is easy | Agricultural Commodities |
| The time period between the production decision and the delivery due due to the biological nature of agricultural products | Biological Lags |
| Adds form utility to the product | Processing and Packaging |
| Adds place utility to the product | Transportation |
| Adds time utility to the product | Storage |
| Buying | Procurement |
| Intended to educate/persuade the consumer (information) | Advertising |
| Refers to the firm's adding of value to the raw commodities through processing and packaging of products such as bread, frozen pizza, and cereal. | product marketing |
| Facilitating Functions: | standardization market intelligence financing risk bearing |
| Differentiated from production of all others; manufacturer sets price; advertising and promotion are effective; may be copyrighted, patented, or trademarked; greater number of marketing alternatives | Food production |
| Expanded to address food safety and quality throughout the channel; a preventative system primarily adopted by processing plants | HACCP (Hazard Analysis Critical Control Points) |
| For poultry and eggs, the farmer receives about __% of the consumer dollar. | 41 |
| US Food Market: Over ___ million consumers | 300 |
| Demand for a good occurs as a result of the demand for another intermediate of final good | Derived Demand |
| One buyer | Monopsony |
| Take the product to the consumers | Push |
| Get the consumer to come to you | Pull |
| Price difference between what farmers receive and consumers pay | Farm-to-Retail Price Spread |
| Along the marketing chain, the difference between the buying and selling price | Margin |
| The sorting of unlike lots of same products into uniform categories; according to quality standards | Grading |
| Refers to firms handling commodities through the marketing channel with little processing involved | Commodity Handling |
| Handlers experience __ __ __ with small profit margins | heavy price competition |
| The main technique non-perfectly competitive firms use to develop and maintain market share | Effective Advertising |
Created by:
ellenc6
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