BMK 201 Lecture Notes - Lecture 32: Psychological Pricing, Market Segmentation, Tunxis Community College
6 Jan 2021
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Document Summary
Food processors add the form utility to farm commodities. These firms play a crucial role in transforming bulky, perishable, homogenous farm commodities into more appealing and storable food products. Food processors occupy a strategic position in the marketing system. On one end, their activities are closely linked to farmers. On the other, they closely monitor consumer preferences. Food processors use the marketing mix (price, place, product, promotion) in developing value-added products that will improve their competitive position in the marketplace. They practice market segmentation, target marketing, product differentiation and positioning of their value added, branded products. Positioning: the image in the customers mind that a firms marketing strategy gives to its products to increase their value for customers. The goal of marketing management in food processing is to transform an undifferentiated, low profit commodity into a differentiated, branded, value added, profitable food product. Branding is the most important product strategy for food processors.
