AGBM 302 Exam 2022/2023 Answered 100% Correct

1. Who cares about food marketing? - ANSWER-Businesses all along the food chain Consumers Policy makers 1. Why is the paleolithic a useful benchmark for diet? - ANSWER--because our species evolved to function in the paleolithic environment. -fossils suggest that a paleolithic man was in good health. 1. How was the paleolithic diet different from current diets and what is the consequence of this difference? - ANSWER-Compared to paleolitic humans, we eat: -43% less protein -22% less fat -57% more carbohydrates Consequences -33% chance of developing diabetes. -childhood obesity 1. Many of the most dramatic trends in food marketing originate from consumer reactions to ag and food system practices. What are some examples of these? - ANSWER--organics -health -higher quality -more labels -gmo free -"natural" -gluten free 1. In what ways is food different from other types of products and how do these differences affect the way foods are marketed? - ANSWER--nondurable -perishable -scalable -usage variant -high frequency necessary good -input to household production -cultural significance 1. What is meant by "bounded rationality" and why is it crucially important in food marketing? - ANSWER-Bounded rationality- when an economic agent is unable to make a fully informed decision because they do not have the time or ability. -- Crucially important to food marketing because people tend to buy the same thing over and over again to avoid the repeated high burden of thinking critically about every little purchase. Because of this, if a consumer purchases your product they are likely to continue to in the future 1. Why did Birdseye need to be vertically integrated early on? - ANSWER-Because of the frozen fish and meat- more resources to keep frozen. 1. How did the value-added food chain change in frozen foods throughout since frozen foods emerged? - ANSWER-In 1955, Birds Eye added values beyond the physical and functional ones that contributed to a clear and likeable personality for the brand. 1. What is the necessary condition for a value-added food chain to exist? What marketing eras underlying philosophy reflects this condition? - ANSWER-maybe many links in the chain?? What is a need? Be able to provide examples. - ANSWER-Need- the difference between customers' actual conditions and their desired conditions. -security -social connection -self-esteem -personal ability -caring for others 1. What is a desire? Be able to provide examples. - ANSWER-Desire- a particular choice that people make to satisfy their needs. (you are hungry for something but nothing too filling and you don't want to spend the time preparing food so you get a banana) 1. What is market myopia and when is it likely to occur? - ANSWER-Market myopia- is management's failure to recognize the scope of their business. -Occurs when a company identifies identifies with their product or past structure instead of consumer needs. 1. How is market myopia avoided? - ANSWER-Companies must broadly define organizational goals toward consumer needs. 1. What is the basis for forming a consumer (market) oriented description versus a myopic description? - ANSWER--Consumer-oriented description is a need based description. -A myopic description is a product based description. 1. What are the 4 P's of marketing? - ANSWER-1. Product 2. Price 3. Promotion 4. Place 1. What constitutes a "product"? - ANSWER--ingredients, associated feelings and ideas - goods and services, package design, the idea of the goods, customer service, brand names, product lifecycle, warranties, etc. 1. What is a target market and why is it useful to have one? - ANSWER-Target Market- group of people whom the firm decides to direct its marketing efforts. -useful because different people have different needs. 1. What were the 4 marketing eras and what was their underlying philosophies? - ANSWER-1. Production o Assumed the customer would find the product o Many great ideas lost o Product focused o "A good product will sell itself." 2. Sales o Assumed customers simply needed to be found and/or persuaded o Marketing and sales were thought of as the same o Product/desire focused o "Simple marketing and selling will overcome consumers' resistance and convince them to buy." 3. Marketing o Geared all aspects of the business to customer focused marketing concepts o "The consumer is king! Find a need and fill it." 4. Relationship o Marketing concept plays an increasingly important role o Realization that it is easier to retain customers than it is to attract new ones o "Long-term relationship with customers and other partners lead to success." 1. What has been given increasingly more emphasis in the history of food marketing (particularly in the last 2 eras)? - ANSWER-the relationship with consumers and putting consumers first. 1. What are the characteristics of the current marketing era? - ANSWER--firms increasingly think of marketing exchanges as cooperative arrangements that benefit a long-term broad marketing concept. -place higher value on connections with business partners. -relationships are a big emphasis 1. What is the underlying idea behind the levels of marketing relationships? - ANSWER-based on mutually beneficial connections to others. 1. What is an own-price elasticity? - ANSWER--the price elasticity of demand -describes how sensitive demand is for good x to the price of x.