Transcript Territorial marketing agro-food marketing

Agro-food and territorial
marketing
Gervasio Antonelli
Faculty of Economics
University of Urbino “Carlo Bo”
[email protected]
-
-
Contents
Overall reference framework and competitive system
Behaviour of the “new” consumer
Growing attention to agro-food and territorial
marketing applications (the extension of the principles
of traditional marketing management to these items
raises, however, a number of theoretical and
application issues)
The issues of agro-food product differentiation
The concept of “product system”
Information over the quality features of a product
Critical areas of marketing applications
Conclusions (i.e. critical factors)
Overall reference framework and the
competitive system – 1
- Growing globalization of markets
This is a rather complex issue that is set to identify a
new business framework: information systems,
habits, preferences, market expectations,
competitors, rules and market size have gone
through several changes. This has implications as
regards competition and both the domestic and the
foreign market.
Overall reference framework and the
competitive system - 2
EU agricultural policies:
- Greater market orientation
- Progressive reduction of aid and change in their composition (greater
resources for interventions in favour of rural development)
More in particular:
- Decoupling of aid (single payment per company regardless of the
productive directions adopted by the beneficiary; the payment replaces
most direct payments from PAC)
-
-
Conditionality (payments are subject to the compliance to all environment
protection, food safety, animal well-being, etc. regulations
-
Modulation of aid (reduction of all direct payments to obtain resources to
be allocated to rural development policies)
-
Intensification of rural development policies through the increase of
the allocated resources (rural development policies will be allocated
additional resources as a result of the modulation of aid. New environment,
animal well-being measures are then introduced, etc. )
Overall reference framework and the competitive system –
3
-
Development of new information technologies
(these may create new opportunities to bring
farmers closer to consumers)
-
Strong development of transgenic crops
-
Growing importance of environment issues
-
Changes in the internal arrangement of the agrofood system and development of modern
distribution
The “new” consumer -1
Giampaolo Fabris, Il nuovo consumatore: verso il
verso il postmoderno (The new consumer: a journey
towards postmodenity), FrancoAngeli, Milan, 2003.
“In the transition to post-modernity the leading
player is the “new” consumer...
- more demanding, shrewder, more selective,
proactive and unfaithful to a single brand.
- the new consumption: tangible meanings, signal
aspects, communication, social exchange.
- A new language, the language of consumption,
with its grammar and syntax, whose knowledge is
called for . (…)”
The “new”consumer - 2
According to Fabris the competitive
challenge is played in terms of quality, a
complex and multi-dimensional concept.
The main components of agro-food quality
are summed up in a handbook called the
“The system of Ss; each item of such Ss
should be in turn divided in a wide variety
of sub-categories
Agro-food quality: the system of Ss
Taste (Italian:
Sapore)
Status
Show
Sensory
Knowledge
(Italian:Sap
ere)
Syncretism
Health
(Italian:
Salute)
History
(Italian:
Storia)
Supernaturalism
Consumer surveys - 1
Survey conducted by PeopleSWG/ Mipaf/ 2001
The results clearly show that the Italian consumer is
characterised by:
- General wariness of GMOs
- Marked attention to issued related to the quality and
safety of agro-food products
- A growing and widespread interest in the choice of
typical products
- A strong demand for information on the properties of
products
- A greater demand for guarantees and certifications
(product and/or system certifications, traceability, etc.)
Based on the results of the above survey quality of
agro-food products means for the Italian consumer:
- trueness of products (64% of answers);
- safety (47%);
- naturalness (30%);
- wholesomeness (28%);
- taste (28%);
- cost (20%).
Quality guarantees are required not only for typical or
organic products but more in general for convenience
goods .
Consumer survey - 2
Survey conducted by the Istituto di Ricerche Economiche e Sociali (IRES –
Institute for Economic and Social Researches),Gli italiani a tavola. Stili di
consumo e rischi alimentari – Italians at the dinner table. Consumption
styles and food risks) in 2005 through a questionnaire that was administered
to a sample of 750 individuals all over the national territory .
- 87,4% >productive system “very risky”
- 75,8% >“anxious” in eating food .
- 45,2% > premium price for better quality ,
Major risk elements include:
- 95,2% > use of chemicals;
- 88,3% > presence of GMOs;
- 82,1% > transport;
- 76,4% > management of sales outlets
- 75,6% > production in non-EU countries;
- 52,6% > lack of brand
Features of foodstuffs as choice factors (val. %)
Taste
Expiry date
Benefits for health
Price
Appearance
97,5
96,5
94,0
87,9
64,3
Organic product
Brand
Religion
Long shelf-life
Ready to use
51,7
49,1
24,9
23,7
23,0
Source: Ires, Gli italiani a tavola. Stili di consumo e rischi
alimentari, Sintesi per la stampa, p. 5
Relationship of consumers with typical products (Dop,
Igp, etc), products with a registered designation of origin
(Doc), as well as organic and fair trade products.
Knowledge and consumption of some quality products (val. %)
% people
% people
that know them
that use them
Typical products
82,6
75,5
Doc products
74,3
63,6
Organic products
80,2
50,0
Fair trade
31,7
19,5
Source: Ires, Gli italiani a tavola. Stili di consumo e rischi
alimentari, Sintesi per la stampa, p. 6
Consumer survey - 3
Eurobarometer/February 2006 in:
“European consumers’ perception of health risks (25
EU countries)."
- 42% > concerned about the safety of foodstuffs for
their health .
- the majority of consumers> factors affecting the
choice: quality (42%), price (40%),
appearance/freshness (23%), taste (17%), health
(14%), family choices (11%), values (9%), production
methods (7%), country of origin (6%), brand
name(5%), etc.
Bottom line
The “new” consumer and his/her expectations towards agro-food
products:
-
-
In the consumption of agro-food products the consumer seeks
to meet his/her food requirements as well as experiences,
emotions, sensations, services, nature, culture, etc.
Safety of foodstuffs and quality ;
-
Qualities: chemical-physical and organoleptic qualities of the
product + health issues, territory of origin, typicality, respect of
environment, well-being of animals, ethical content, etc.
-
Details on product features and guarantees on its
characteristics and the related production processes
Growing attention to agro-food marketing
Theoretical issues:
- agro-food marketing can not be seen as the
mere transposition of marketing management
principles to the agro-food marketing reality
Functions of territory-applied marketing
Marketing
for the development of
new entrepreneurship
initiatives
Marketing
for the reinforcement of
the existing economic
texture
FUNCTIONS OF
TERRITORIAL
MARKETING
Marketing
for the dissemination of
skills and innovation
Marketing
for the attraction of
prospective users
Territorial marketing’s conceptual references
Non-profit
marketing
-nature of
objectives
-organizational
nature of
territorial
marketing
facilities
Territorial
marketing
Relational
marketing
-systemic nature of the supply
-interaction components of
supply and demand
-basically cooperative
relationships between individuals
Social
marketing
-General wellbeing purposes
-Significance of
extra-economic
factors
-Long-term
guidance
TERRITORIAL OPERATIONAL
MARKETING
Creation of conditions
for an improved
exploitation of the
territory
Interventions on
the territory’s
tangible and
intangible
components
Provision of
assistance to
investors during
and after their
settlement
Communication of
the territory’s
attractiveness
factors
Reinforcement
and diffusion of
the perception of
placement
Advertisement
and promotion
of territory
exploitation
opportunities
Territorial marketing
Synergic action
agro-food marketing.
Marketing:
Improvement of opportunities for differentiation
(Dop, Doc, Igt..)
Significant only if PERCEIVED BY THE
CONSUMER
VALUE
PERCEPTION
DIFFERENTIATION
Improvement of perceived values through
appropriate territorial marketing and agrofood policies
Territorial
marketing
agro-food
marketing
-enhancement of territory and its agro-food products
-differentiation
-creation and management of value signals that may
guide the consumer in his/her perception
Territorial promotion through typical agro-food products
Interventions that may increse the value of the territory
Territorial marketing
Strategy for the promotion of the territory
through the implementation of network
systems for the enhancement of typical
agro-food products
Actual network systems
Virtual network systems
Network systems for the promotion of the territory through
typical products: a strategy
Actual systems:
Virtual systems:
Territorial franchising
Telematic networks
Structure:
• the Promoter or Franchisor is a
collective entity;
• franchisees belong to different
sectors
Structure:
Territorial
marketing
Development of an internet site for
the are and the activities
Interventions:
• Awareness of people as to the
intervention;
• Promotion of franchisees’ products;
• Development of guided routes for the
research of franchisees;
• Marketing and promotion of franchising
trademark;
• Development of advertising materials
Interventions:
Promotion and integrated
marketing of different products
overcoming space and time
barriers and quasi-unlimited
accessibility barriers
In a marketing perspective you should,
however, take into account:
-
The understanding of purchase behaviours and the
needs of the consumer
-
The only criteria that count in the evaluation of quality
are consumer-defined criteria
-
Only if quality is perceived the manufacturer will be able
to get a premium price
-
Sharing of the quality concept between
manufacturer/consumer
The concept of “product system”
- multiplicity and complexity of factors contributing top
the creation of value for the consumer
- an enterprise (and/or a system of enterprises):
definition of own offer in terms of “PRODUCT
SYSTEM”
Components of the product system:
- Health and hygiene safety
- Nutritional, health and sensory requirements
- Guarantee requirements (information, product
and/or system certification)
- Aesthetic features
- Symbolic meanings
- Related services
- Offer system requirements (availability at right
time, right place and required quantity)
- price
- etc.
improvement of perceived
differential value
achievement of a premium price
improvement of the value of
perceived differential quality
Information over the product’s quality features
Characteristics of the product systems within three
feature categories:
Research features (these may be known before the
purchase and are brand, price, packaging, etc.);
Experience features (quality may be assessed after
the purchase through a test);
Trust features (quality may not be assessed even
after purchase and consumption: wholesomeness,
nutritional value, etc.)
Some marketing tasks
- consumer and market behaviours: information on
expectations, evaluation criteria, consumer and
purchase behaviours
- redefinition of product features; product system
- Improvement of the product’s utility
image, balancing between material values and
immaterial values, appropriate sale channels,
relationships with purchasers, product
communication
Formulation and implementation of marketing
strategies-issues
 SMEs cannot often rely on resources, skills and
critical product mass;
 Possibility/need to create cooperative
organizations (consortia, networks..)
 Delegation of marketing functions to associative
organizations
 Development and management of a collective
brand
The guidelines for the collective brand

define process and product requirements that
are common to all acceding manufacturers
 binding > as
it limits the possibility of an adjustment
to technological development
 Less binding> improved flexibility but lower
product specificity and weakening of the collective
brand’s role
Conclusions
- enhancement and promotion of agro-food
products> territorial marketing
- Operators > striving towards a common goal
- organizational-management structure (consistent
and uniform approach for territorial marketing
interventions )
- cultural approach to the management of the
relationship between offer and market
- development of the internal and external
environment
- government modes and tools (rural districts,
territorial understandings, negotiated planning, Local
Action Groups, etc. )
- new professional figures and skills within the
framework of agro-food and territorial marketing