Food marketing involves the initial point of production to distribution until they reach the ultimate consumer. There are two essential characteristics that help the food marketing systems. One is the marketing process which is a series of actions and events that takes place in some sequence. Another one is the coordination forms of this series of actions which helps to move the goods and services in an orderly fashion from producers to consumers.
See the figure-
Here you will get a clear aspect of the food marketing system. Basically, it shows the agricultural marketing system from the very beginning of production is initially offered to the marketing systems. At this time, the marketing process has a direct impact on agricultural production. The dairy industry may be a better example of it. Because the industry may face perishability and bulkiness of its product. That’s why they need to maintain the high cost of transportation sectors.
However, they need large cooling tanks to provide storage for milk on the farms. This is a disadvantage for small farmers because it needs large investment. Besides, there need for technology that encouraged the re-organization of dairy farms into larger and more specialized units.
At the end of this system, the main purpose is to reach the final user that means consumers. They are influenced mostly by their preferences and tastes. That’s why; food marketing firms invest huge money to understand the behavior of their target customers and what they want from the market.
The marketing systems lie in these two forces but this is a complex system for marketing firms because they are involved in physical, technological, and economic activities. This operation is mostly run by managers who make the decisions and direct people.
Another of these systems is made up of firms, and organizations. They are contributing to the pricing and food marketing and also arrange for various facilities like contacts and procedures. That is helpful for the flow of goods and services. These are so complex operations in the food marketing systems.
Domestic and global economy:
As our economy is not an economic island. It is a part of our whole economy. Today, the food system has many forces. These forces shape the organization and behavior of food sectors. Besides, our food industry is also affected by unemployment, inflation interest rates. In turn, our economy is highly integrated and also affected world trade patterns, foreign exchange rates, and political events. As a student of marketing, it is really important to understand the complex behavior of economic systems.
Science and technology:
Science and technology have a great influence on food marketing. At present, food production is becoming more industrialized like technology method systems, packing, processing, shipping, and so on. Industrial changes happened because of technological development.
Consumer taste and preferences:
The food marketing nature is dependent on the food consumers and their behavior. Today, consumer demand is changing day by day with increasing diversification of goods, healthy and nutrient food, easy preparation, and availability of lower prices. The relationships between farmers, consumers, and food marketing firms have changed. Because food production and marketing have become more customer driven. A successful food marketing manager can understand and forecast the behavior of a customer very well. So, it is true that marketing research is important for success.
Social capital and infrastructure play an important role in efficient food marketing systems. These are the social resources created for all. Any food industry can’t survive without well-developed transportation, communication, and educational systems. The government regulates and facilitates the functions of food marketing. Marketing systems can’t run well without laws, courts, rules and regulations, and policies. These all help to promote public interests.
Competition is a major influential factor in food marketing systems. Although, competition motives for satisfying customers, improving profits, gaining a competitive advantage, and new and different ways to market their products. Some of them may succeed and others may be failed. It is never quiet for long and is a frequent source of market change.
Customs and values, laws, and government policies:
The food marketing system is also limited by the rules and regulations, policies, customs, and values of a society. For example, we can’t employ children in our organization; we can’t advertise liquor and tobacco on television. Besides other countries may have no problem with it. Though, this system may not change overnight. Our marketing system will work out its activities remaining on the existing framework.