Food Marketing Costs&marketing Ethics

[Fynn]

Hi Leo, I wish to hear from your explanation about my question below,

please help me, thanks.

1. Since food marketing margin is composed of costs and profits, what are the factors that can influence or affect the food marketing margin?

2. What is food marketing bill, how can food marketing bill related to food marketing margin?

3. What is farmer's share and market basket in food marketing? How can market basket calculate farmer's share?

4. What are the principles of socially responsible marketing?

5. Explain the role of ethics in marketing?"

Hope you can reply me, i really those explanation,

thank you so much.

[Honani]

1.Since food marketing margin is composed of costs and profits, what are the factors that can influence or affect the food marketing margin

Marketing Margin: portion of the consumer’s food dollar that goes to marketing firms; ---difference in what the consumer pays for food and what the farmer receives

*Price of all utility adding activities

*Includes all expenses and profits Consumer  food  dollar =100

Farmer  receives=          21

Labor =          30

Marketing  margin  =      49

MARKETING  MARGIN  IS  MADE  UP  OF

1.PACKAGING 2.TRANSPORT

3.DEPRECIATION.

4.ADVERTISING

5.FUELS

6.ELECTRICITY

7.RENT

8.INTEREST

9.REPAIRS/MAINTENANCE

10.BUSINESS  TAXES

11. OTHERS

12.BEFORE  TAX  PROFIT.

ALL  THESE   FACTORS  CAN  AFFECT  THE  MARKETING  MARGIN .  THESE  FACTORS  ARE   AFFECTED  BY

THE CHARACTERISTICS  OF  STABLE   ENVIRONMENT

-consistency  in  most major  factors.

-dependable  factors

-mostly  known factors

-steadfast  factors

-not subject to sudden or   extreme changes

-maintain  equilibriums

etc

THE CHARACTERISTICS  OF  DYNAMIC    ENVIRONMENT

THE  MAJOR   CHARACTERISTICS  ARE

1.UNPREDICTABILITY.

2.ASYNCHRONOUS

3.CONCURRENT

4.VARYING  PRIORITY

5.LIMITED  RESPONSE  TIME.

ETC

==========================================

The PESTLE factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as either threats or opportunities

Below you will find examples of each of these factors.

Political(incl. Legal) -Environmental regulations and protection [what are the government regualtions/ protection laws that must be observed ]

-Tax policies

what tax hinder the business and what taxes incentives are available]

-International trade regulations and restrictions

[ does the government encourage exports / with high tariffs on imports]

-Contract enforcement law/Consumer protection

[does the government enforce on consumer protection ]

-Employment laws]

[ is the government encouraging skilled immigrants with temp. permits]

-Government organization / attitude

[ does the government have a very positive attitude towards this industry]

-Competition regulation

[ are there regulation for limiting competition]

-Political Stability

[ politically , does the government have a very stable government ]

-Safety regulations

[ has the government adopted some of the modern safety regulations]

================================================================= Economic -Economic growth

[ what is the economic growth rate / what are the reasons ]

-Interest rates & monetary policies

[ are the interest rates under control / is there a sound monetary policies]

-Government spending

[is government spending is significant and is it under control ]

-Unemployment policy

[what is the employment / unemployment policies of the government ]

-Taxation

[ has the taxation encouraged the industry ]

-Exchange rates

[ is there well managed exchange controls and is it helping the industry]

-Inflation rates

[ is the inflation well under control ]

-Stage of the business cycle

[ is your industry is on the growth pattern]

-Consumer confidence

[ is the consumer confidence is high/ strong and if not, why ]

================================================== Social -Income distribution

[is there balanced income distribution policy ]

-Demographics, Population growth rates, Age distribution

[ what is population growth and why ]

-Labor / social mobility

[ what are the labor policies and is there labor mobility]

-Lifestyle changes

[ are there significant lifestyle changes taking place--more modernization/ why ]

-Work/career and leisure attitudes

[ are the population career minded and are seeking better lifestyle]

-Education

[ what are the education policies / is it successful ]

-Fashion, hypes

[are the people becoming fashion conscious ]

-Health consciousness & welfare, feelings on safety

[ are the people becoming health consciousness]

-Living conditions

[ is the living conditions improving fast and spreading rapidly]

=========================================================

Technological Government research spending

[is the government spending on research and development]

Industry focus on technological effort

[are the industries focused on using improved technology]

New inventions and development

[ are new inventions being encouraged for developments]

Rate of technology transfer

[ is the rate of technology transfer is speeding up ]

(Changes in) Information Technology

[ is the information technology rapidly moving and is there government support]

(Changes in) Internet

[ is the internet usage rapidly increasing and why]

(Changes in) Mobile Technology

[is the Mobile technology rapidly developing and is there government support]

===================================================

#####################################################

ALL THESE FACTORS AFFECT THE  business  organization.

-in various combinations

-at different times

-at various emphasis

===========================================================

THE  STRATEGIC  MANAGEMENT  PROCESS  HELPS  TO  UNDERSTAND

HOW  YOU ADAPT THE  BUSINESS  TO THE NEEDS OF THE CONSUMERS.

FACTORS TAKEN INTO CONSIDERATION :

*needs of the consumer

*demand for the product

*market potential

*cultural

-culture

-social class

*social

-household type

-reference groups

*psychological

-motivation

-perception

-beliefs

-attitudes

*personal

-age brackets

-occupations

-educations

*economy

*technology

*political

*trade

-import/export laws

-tariff

-local laws

*environment *competition

----------------------------------------------------------------------------

THE ADAPTATION OF THE BUSINESS  IS CARRIED OUT

FOR THE FOLLOWING REASONS:

-to meet the local regulations.

-to meet the customs/ beliefs.

-to meet the customer needs.

-to meet the customer wants.

-to meet the customer satisfaction.

-to meet the challenge of the competition.

-to increase the sales volume.

-to increase the market share.

-to increase the profit.

-to improve / increase the return on investment

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2. What is food marketing bill, how can food marketing bill related to food marketing margin?

Marketing Bill: difference between consumer expenditures for all domestically produced food products and what producers receive for equivalent farm products

*21% to producers

*30% to labor

*49% to marketing  margin ###############################

3. What is farmer's share and market basket in food marketing? How can market basket calculate farmer's share?

Consumer  food  dollar =100

Farmer  receives=          21

Labor =          30

Marketing  margin  =      49

MARKETING  MARGIN  IS  MADE  UP  OF [ % ]

1.PACKAGING = 3.0

2.TRANSPORT =4.5

3.DEPRECIATION. = 3.5

4.ADVERTISING = 4.0

5.FUELS =2.5

6.ELECTRICITY  = 1.0

7.RENT  = 3.0

8.INTEREST = 2.5

9.REPAIRS/MAINTENANCE  = 1.5

10.BUSINESS  TAXES  = 3.5

11. OTHERS = 4.0

12.BEFORE  TAX  PROFIT.==16

###############################

4. What are the principles of socially responsible marketing?

Social Responsibility in Marketing

Most marketing organizations do not intentionally work in isolation from the rest of society. Instead they find that greater opportunity exists if the organization is visibly accessible and involved with the public. As we’ve seen, because marketing often operates as the “public face” of an organization, when issues arise between the public and the organization marketing is often at the center. In recent years the number and variety of issues raised by the public has increased. One reason for the increase is the growing perception that marketing organizations are not just sellers of product but also have an inherent responsibility to be more socially responsible, including being more responsible for its actions and more responsive in addressing social concerns. Being socially responsible means an organization shows concern for the people and environment in which it transacts business. It also means that these values are communicated and enforced by everyone in the organization and, in some cases, with business partners, such as those who sell products to the company(e.g., supplier of raw material for product production) and those who help the company distribute and sell to other customers(e.g., retail stores). In addition to insuring these values exist within the organization and its business partners, social responsibility may also manifest itself in the support of social causes that help society. For instance, marketers may sponsor charity events or produce cause-related advertising. Marketers who are pursuing a socially responsible agenda should bear in mind that such efforts do not automatically translate into increased revenue or even an improved public image. However, organizations that consistently exhibit socially responsible tendencies may eventually  gain a strong reputation that could pay dividends in the form of increased customer loyalty.

Business Actions Toward Socially Responsible Marketing

Enlightened Marketing

**Customer-Oriented Marketing:

-Companies view and organize their marketing activities from the consumer’s point of view.

**Innovative Marketing:

-Companies seek real product and marketing improvements.

**Enlightened Marketing

-Value Marketing:

Companies put most of their resources into value-building ----marketing investments.

-Sense-of-Mission Marketing:

Companies define their mission in broad social terms, rather than in narrow product terms.

**Enlightened Marketing

-Societal Marketing:

Companies make marketing decisions by considering consumers’ wants, the   company’s requirements, consumers’ long-run interests, and society’s long-run interests.

-Societal Classification of Products

•    Deficient products

•    Pleasing products

•    Salutary products

•    Desirable products

Marketing Ethics

?   Corporate marketing ethics policies

•   Distributor relations, advertising standards, customer service, pricing, product development and general ethical standards.

?   Guiding principle in policy determination

•    Free market and legal system

•    Individual companies and managers

?   International ethical policies are a special challenge

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5. Explain the role of ethics in marketing?" Marketing Code of Ethics

The call for marketers to become more responsible for their actions has led to the development of a code of ethics by many companies and professional organizations. A company code of ethics includes extensive coverage of how business is conducted by members of an organization. For instance, Yahoo! lays out an extensive list of what is expected of their employees in their Code of Ethics document. Among the issues covered are:

•   Business Relationships(“must never take unfair advantage of others through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice”)

•   Offering Gifts to Clients(“may not furnish or offer to furnish any gift that is of more than token value or that goes beyond the common courtesies”)

•   Receiving Gifts From Clients(“must never request or ask for gifts, entertainment or any other business courtesies”)

•   Business Communication(“should take care to avoid exaggeration, colorful language, guesswork, legal conclusions and derogatory remarks or characterizations of people and other companies”)

Marketers often join professional organizations for the purpose of associating with others who share similar interests. These organizations include industry associations, whose membership is mostly limited to those who work within a particular industry, and professional services associations, whose membership consists of those who share similar job responsibilities. Marketers joining these organizations often find that a code of ethics has been developed that is intended to be followed by all organization members. For example, the Canadian Marketing Association lays out rules for its membership, which includes marketers from many for-profits and not-for-profit organizations, in its Code of Ethics and Standards and Practices. The Code discusses such issues as: •   Accuracy of Representation of Products(“must accurately and fairly describe the product or service offered”)

•   Support of Claims Made About Products(“must be able to substantiate the basis for any performance claim or comparison“)

•   Acceptability for Using the Word “Free”(“Products or services offered without cost or obligation”)

•   Guidelines for Advertising Which Compares One Product to Another("must be factual, verifiable and not misleading”)

Marketing Ethics

?   Corporate marketing ethics policies

•   Distributor relations, advertising standards, customer service, pricing, product development and general ethical standards.

?   Guiding principle in policy determination

•    Free market and legal system

•    Individual companies and managers

?   International ethical policies are a special challenge ######################################################