Agribusiness Module Oera Revised 0

8/9/2019 Agribusiness Module Oera Revised 0

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ABM 7201: AGRICULTURAL MARKETINGMANAGEMENT

Module

DEPARTMENT OF AGRIBUSINESS AND NATURAL RESOURCE

ECONOMICSSCHOOL OF AGRICULTURAL SCIENCESCOLLEGE OF AGRICULTURAL AND ENVIRONMENTAL SCIENCES

MAKERERE UNIVERSITY

July 2011

Agricultural Marketing Management Module by Makerere University is licensed under a

Creative Commons Attribution 3.0 Unported License.

Based on a work at www.oerafrica.org

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Table of Contents

SECTION A ORGANI!ATIONAL COMPONENT V

1. Module object!e" v2. E#$ected le%&''( outco)e" v*. Co't%ct '+o&)%to' vi,. -tudy )%te&%l" vi

SECTION B STUDY COMPONENT VIII

1. Module "t&uctu&e viii2. Module de"c&$to' viii

TOPIC " #HAT IS AGRICULTURAL MARKETING MANAGEMENT$ 1

1.1 I't&oducto'

1.2 Co'ce$t" ' )%&et'( 1.2.1 M%&et'( %'d )%&et'( "y"te) 1.2.2 /u'cto'" o+ )%&et'( !1.2.* Te )%&et'( )# "

1.* I)$o&t%'ce o+ %(&cultu&%l %'d +ood )%&et'( #1., %t " te l' betee' %(&cultu&e %'d te +ood 'du"t&y3 $1.4 Co'clud'( &e)%&" %'d %ct!ty %

TOPIC % COMMODITY MARKETING 11

2.1 I't&oducto' 2.2 -t%(e" ' % co))odty )%&et'( "y"te) 2.* Te )l )%&et'( "y"te) ' U(%'d% !

2.*.1 Te '+o&)%l )l )%&et'( c%''el !2.*.2 Te +o&)%l )l )%&et'( c%''el "

2., Te )%5e )%&et'( "y"te) ' U(%'d% #2.,.1 Te )%5e (&%' )%&et'( c%''el &2.,.2 Te )%5e 6ou& )%&et'( c%''el %

2.4 Co'clud'( &e)%&" %'d %ct!ty '

TOPIC & NE# PRODUCT DEVELOPMENT 20

*.1 I't&oducto' !0*.2 I''o!%to' !0*.* Te 'e $&oduct de!elo$)e't $&oce"" !0

*.*.1 -te$" ' 'e $&oduct de!elo$)e't !*.*.2 Ado$to' %'d du"o' $&oce""e" !!

*., Co'clud'( &e)%&" %'d %ct!ty !"

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TOPIC ' PRODUCT MANAGEMENT 26

,.1 I't&oducto' !$,.2 Te $&oduct !$,.* Te $&oduct )# !&

,., 8&oduct l'e e#te'"o'" !&,.4 8&oduct l'e deleto'" !%,.9 B&%'d'( $&oduct" !'

,.9.1 Te %d!%'t%(e" %'d d"%d!%'t%(e" o+ b&%'d'( !',.9.2 B&%'d'( dec"o'" 30

,.7 Co'clud'( &e)%&" %'d %ct!ty 3!

TOPIC ( CONSUMER BEHAVIOUR AND MARKET SEGMENTATION 35

4.1 I't&oducto' 3#4.2 Co'"u)e& be%!ou& 3#4.* Te co'"u)e& buy'( dec"o' $&oce"" 3$

4., M%&et "e()e't%to' 3&4.,.1 B%"e" +o& )%&et "e()e't%to' 3%4.,.2 -t&%te(c %$$&o%ce" to )%&et "e()e't%to' 3%

4.4 Co'clud'( &e)%&" %'d %ct!ty 3%

TOPIC ) PRICING DECISIONS41

9.1 I't&oducto' "9.2 8&c'( object!e" "9.* Te l%" o+ "u$$ly %'d de)%'d "39., El%"tcty ""

9.,.1 8&ce el%"tcty o+ de)%'d ""

9.,.2 C&o""$&ce el%"tcty o+ de)%'d "#9.,.* I'co)e el%"tcty o+ de)%'d "#

9.4 Teo&y o+ co"t" "$9.9 8&c'( "t&%te(e" "&9.7 Co'clud'( &e)%&" %'d %ct!ty "&

TOPIC * CHANNEL MANAGEMENT AND PHYSICAL DISTRIBUTION

50

7.1 I't&oducto' #07.2 Key dec"o'" ' c%''el )%'%(e)e't #07.* Ty$e" o+ d"t&buto' "y"te)" #7., Te )$o&t%'ce o+ )ddle)e' #!7.4 8oe& %'d co'6ct ' d"t&buto' c%''el" #!7.9 8y"c%l d"t&buto' #!7.7 Te tot%l d"t&buto' co'ce$t #37.; Co'clud'( &e)%&" %'d %ct!ty #3

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TOPIC + MARKETING COMMUNICATIONS 56

;.1 I't&oducto' #$;.2 .1 I't&oducto' $3>.2 Me%"u&e" +o& %""e""'( $e&+o&)%'ce o+ te )%&et'( "y"te) $3>.* M%&et eect!e'e"" $3>., M%&et'( e?ce'cy $">.4 M%&et'( co"t" $">.9 M%&et'( )%&('" $">.7 Co'clud'( &e)%&" %'d %ct!ty $#

REFERENCES 67

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SECTION A ORGANI!ATIONAL COMPONENT

"- Mo./le ob0e1t23es

Te )%' object!e o+ t" )odule " to de!elo$ you& u'de&"t%'d'(%'d "ll" to "ucce""+ully )%'%(e te )%&et'( o+ %(&cultu&%l %'d+ood $&oduct" ' % (lob%l@ e!e&c%'('(@ co)$ett!e %'d "o)et)e"e!e' ' % o"tle e'!&o')e't.

Te )odule "$ecc%lly %)" %t:

• Acu%'t'( you t te (e'e&c co'ce$t" o+ M%&et'(M%'%(e)e't.

•

8&o!d'( you t %' o!e&!e o+ )%&et'( o+ %(&cultu&%lco))odte" %'d $&oduct".• M%'( you %$$&ec%te te )$o&t%'t dec"o'" to t%e du&'( te

)%'%(e)e't o+ e%c ele)e't o+ te )%&et'( )#: $&oduct@$&c'(@ $l%ce@ %'d $&o)oto'.

• M%'( you &eco('"e te $oe& %'d '6ue'ce o+ co'"u)e&" o')%&et "e()e't%to'.

• I)$%&t'( you t "ll" to %""e"" te $e&+o&)%'ce o+ te)%&et'( "y"te)" o+ %(&cultu&%l co))odte" %'d $&oduct".

%- E45e1te. lea6n2n7 o/t1o8es

By te e'd o+ t" )odule you ll be %ble to:

• =e'e te (e'e&c co'ce$t" o+ M%&et'( M%'%(e)e't.

• U'de&"t%'d te )%&et'( "y"te)" +o& %(&cultu&%l co))odte"%'d $&oduct".

• =e!elo$ e?ce't %'d eect!e )%&et'( $l%'" +o& %(&cultu&%lco))odte" %'d $&oduct".

• U"e co'"u)e& c%&%cte&"tc" to "e()e't )%&et" +o& %(&cultu&%lco))odte" %'d $&oduct".

• A""e"" te $e&+o&)%'ce o+ te )%&et'( "y"te)" o+ %(&cultu&%lco))odte" %'d $&oduct".

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&- Conta1t 2nfo68at2on

Na8e Roo8 No-

an. b/2l.2n7

Tele59one n/8be6:

E;8a2l a..6ess: an.Conta1t 9o/6s

Le1t/6e6

D6- Gab62elEle5/

+D A(&c. Bld( Tel a7621-8a?-a1-/7

Conta1t 9o/6s 11 %.).12'oo'

Mo'@ Tue%'d /&

'- St/.@ 8ate62als

'-" Co6e Te4t boo?

• Kotle&@ 8. %'d Kelle&@ K. L. 2009. M%&et'( M%'%(e)e't. Tel+t edto'. 8&e'tce %ll@ E'(leood Cl"@ N.J.

• C&%+o&d@ I. M. 1>>7. A(&cultu&%l %'d /ood M%&et'(M%'%(e)e't. Ro)e: /ood %'d A(&cultu&e


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• Boyd@ J&.@ . . %'d >0. M%&et'(M%'%(e)e't: A -t&%te(c A$$&o%c. I&'@ I'c.

• Kot%be@ M. %'d K. el"e'. 2001. M%&et'( M%'%(e)e't. -eco'dedto'. Jo' ley %'d -o'"@ I'c.

• 8%&@ M. M. %'d G. F%lt)%'. 1>;7. M%&et'( M%'%(e)e't.=&yde' 8&e"".

• 8ete&@ J. 8. %'d J. . =o''elly@ J&. 1>>4. M%&et'( M%'%(e)e't:K'oled(e %'d -ll". /ou&t edto'. I&'.

'-%-% o/6nal A6t21les an. Ot9e6 Pe62o.21als

ou ll be $&o!ded t &ele!%'t jou&'%l %&tcle" %'d ote& $e&odc%l"+o& e%c to$c.

Lectu&e 'ote" %" ell %" ote& &ele!%'t "tudy )%te&%l" ll %l"o be)%de %!%l%ble to you.

&-%-&Case St/.2es

C%"e "tude" to be u"ed ' t" cou&"e ll be d&%' +&o) A(-%&e c%"e"tude"D!deo" %'d C&%+o&d H1>>7.

'- Mo.e of Del23e6@ Te )odule ll be del!e&ed ' % $&ob'(@ "ce'tc %'d ''o!%t!e)%''e& t&ou( cl%"" lectu&e"@ c%"e "tude"@ &ole $l%y"@ %'d%""(')e't". Te&e ll be * lectu&e ou&" $e& ee +o& % 14 ee""e)e"te&- /o& e%c to$c@ &e+e&e'ce" %&e (!e' +o& &e%d'(. ou %&ete&e+o&e %d!"ed to e)b%& o' % ell"t&uctu&ed %'d "y"te)%tc "tudy$&o(&%). ou %&e e#$ected to &e%d %""('ed )%te&%l be+o&e %tte'd'(te lectu&e ' c te )%te&%l ll be d"cu""ed. Addto'%l &e%d'("t%t ll e'%'ce you& u'de&"t%'d'( o+ te "ubject )%tte& ll be %l"o$&o!ded ' cl%"".

(- Assess8ent Met9o.s

Te cou&"e ll be e!%lu%ted t&ou( co't'uou" %""e"")e't te"t"@o)e %""(')e't"@ % c%"e "tudy@ %'d '%l e#%) %" +ollo":

• Co't'uou" A""e"")e't ,0Ho)eo& %""(')e't"@ Te"t@ C%"e "tude"

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• /'%l e#%)'%to' 90

Te $%"" &eu&e)e't " 90 o+ te o!e&%ll '%l )%&.

SECTION B STUDY COMPONENT

"- Mo./le st6/1t/6e

T" )odule " eu!%le't to * cou&"e u't" HCU o& ,4 co't%ct ou&". Te )odule du&%to' " 14 ee" co)$&"'( ,4 lectu&e ou&" HL. Ted"t&buto' o+ lectu&e ou&" by to$c " "o' ' te )odulede"c&$to' belo.

%- Mo./le .es1625t2on

To521 " Int6o./1t2on

To521 & Ne P6o./1t De3elo58ent


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• Ado$to' %'d du"o' $&oce""e"

Rea.2n7s• C&%+o&d H1>>7@ c%$te& ,.

• Boyd@ J&. %'d %le&@ J&. H1>>0@ c%$te& 1*

To521 ' P6o./1t Mana7e8ent >4@ c%$te& *4

• 8%& %'d F%lt)%' H1>;7@ c%$te& 7;

• A%e& H2009@ c%$te& 2

To521 ) P6212n7 De12s2ons >7@ c%$te& ;.

i(


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• 8ete& %'d =o''elly@ J&. H1>>4@ c%$te& 11

• 8%& %'d F%lt)%' H1>;7@ c%$te& 1;

• Boyd@ J&. %'d %le&@ J&. H1>>0@ c%$te& 1,

(


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To521 * C9annel Mana7e8ent an. P9@s21al D2st62b/t2on >4@ c%$te& 10

• 8%& %'d F%lt)%' H1>;7@ c%$te& 1*1,

• Boyd@ J&. %'d %le&@ J&. H1>>0@ c%$te& 14

To521 + Ma6?et2n7 Co88/n21at2ons

• C&%+o&d H1>>7@ c%$te& 10.

• Kol" %'d Ul H2002@ c%$te& 4

• 8ete& %'d =o''elly@ J&. H1>>4@ c%$te& ;>

• 8%& %'d F%lt)%' H1>;7@ c%$te& 1417

• Boyd@ J&. %'d %le&@ J&. H1>>0@ c%$te& 191;

To521 , Ma6?et2n7 Costs an. Ma672ns


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• Kol" %'d Ul H2002@ c%$te& 11

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TOPIC " #9at 2s a7621/lt/6al 8a6?et2n78ana7e8ent$

"-" Int6o./1t2on

t "$ec%l5%to' ' $&oducto' o' te &"e@ %(&cultu&%l )%&et'("y"te)" %!e 'c&e%"'(ly beco)e )o&e co)$le#. Tod%y@ )o"t$&oduce&" %'d co'"u)e&" o+ %(&cultu&%l $&oduct" l!e +%& %$%&t)e%''( t%t % 'u)be& o+ )ddle)e' %&e '!ol!ed ' te $&o!"o' o+c&uc%l "e&!ce" to b&'( te $&oduct +&o) te $&oduce& to te '%lco'"u)e&. Te&e+o&e@ t" )odule " de"('ed to de!elo$ you&u'de&"t%'d'( %'d "ll" o' o be"t to )%'%(e )%&et'( "y"te)" o+%(&cultu&%l co))odte" %'d $&oduct" ' %' e!e& c%'('(@ (lob%le'!&o')e't. I' t" 't&oducto&y to$c@ you ll u'de&"t%'d:

• Te )$o&t%'ce o+ )%&et'( ' %(&cultu&%l %'d +ood "ecto&" 'de!elo$'( cou't&e"

• Te )e%''( o+ te )%&et'( co'ce$t %'d te +u'cto'" o+)%&et'(

• y t " 'ece""%&y to )$le)e't te )%&et'( co'ce$tt&ou(out %(&cultu&%l %'d +ood )%&et'( "y"te)"

"-% Con1e5ts 2n 8a6?et2n7

"-%-" Ma6?et2n7 an. 8a6?et2n7 s@ste8

%t do you u'de&"t%'d by te te&)" )%&et'( %'d )%&et'("y"te)3 M%&et'( " de'ed %" % )%'%(e)e't o&e't%to' +ocu"'(%ll te %ct!te" o+ te o&(%'5%to' o' "%t"+y'( cu"to)e& 'eed" %'d%'t"@ te&eby el$'( %ce!e te o&(%'5%to'" lo'(&%'(eobject!e".

A(&cultu&%l %'d +ood )%&et'( "y"te) co)$&"e" %ll +u'cto'"@ %'d

%(e'ce" o $e&+o&) to"e %ct!te"@ c %&e 'ece""%&y ' o&de& to$&ot%bly e#$lot o$$o&tu'te" ' te )%&et$l%ce. A(&cultu&%l %'d+ood )%&et'( "y"te) co'""t" o+ te +ollo'( "ub"y"te)": '$ut@$&oducto'@ d"t&buto'@ co'"u)$to' %'d &e(ul%to&y.


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"-%-% F/n1t2ons of 8a6?et2n7

M%&et'( +u'cto'" %&e cl%""ed 'to t&ee (&ou$":

1. E#c%'(e +u'cto'"

• B/@2n7 an. Sell2n7 Tey %&e d&ectly %""oc%ted t'e(ot%t'( %' e#c%'(e o+ o'e&"$ o& 6o o+ ttle betee' % "elle& %'d % $&o"$ect!e buye&. Buy'( %ct!te"'clude "e%&c'( +o&@ (%te&'( '+o&)%to' %bout@e!%lu%t'( %lte&'%t!e $&oduct" %'d "u$$le&"@ %'d'e(ot%t'( % $u&c%"e %(&ee)e't. Te "ell'( +u'cto''!ol!e" de't+y'( %'d "ee'( out $ote't%l buye&"@dete&)''( %' %"'( $&ce@ 'e(ot%t'( te&)" o+ "%le@ %'d")l%& %ct!te". Te ult)%te %) +o& %'y "elle& " to )eet

t" co'"u)e& Hbuye&" 'eed". Tu"@ % +%&)e& c%' be "%d tobe )%&et o&e'ted e' $&oducto' " $u&$o"ely $l%''edto )eet "$ecc de)%'d" o& )%&et o$$o&tu'te". /o&e#%)$le@ % co't&%ct +%&)e&@ o "e" to )eet te 'eed"o+ % +ood $&oce""o& $&oduc'( "o&(u)b%"ed )%ltedd&'" ll o'ly (&o )$&o!ed "o&(u) "eed. It ll %!od%'y '$ut" lely to %d!e&"ely %ect te "to&%(e %'dDo&$&oce""'( $&o$e&te" o+ te "o&(u) %'d ll co't'u%lly"ee 'e %'d bette& '$ut" c ll %dd +u&te& !%lue tot" $&oduct ' te eye" o+ te cu"to)e& H+ood $&oce""o&.

2. 8y"c%l +u'cto'"

• Sto6a7e B%l%'ce" "u$$ly o+ %'d de)%'d +o& %(&cultu&%l%'d +ood $&oduct". A(&cultu&%l $&oducto' ' de!elo$'(cou't&e" " u"u%lly "e%"o'%l l"t de)%'d " (e'e&%llyco't'uou" t&ou(out te ye%&. e'ce te 'eed +o&"to&%(e to %llo % ")oot@ %'d %" +%& %" $o""ble@u''te&&u$ted 6o o+ $&oduct 'to te )%&et.

• T6ans5o6tat2on M%'( te $&oduct %!%l%ble e&e t "'eeded@ tout %dd'( u'&e%"o'%bly to te o!e&%ll co"t o+te $&oduce. Adeu%te $e&+o&)%'ce o+ t" +u'cto'&eu&e" co'"de&%to' o+ %lte&'%t!e &oute" %'d ty$e" o+t&%'"$o&t%to'@ t % !e to %ce!'( t)el'e""@)%'t%''( $&oduce u%lty %'d )')5'( "$$'( co"t".

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• P6o1ess2n7 Mo"t %(&cultu&%l $&oduce " 'ot ' % +o&)"ut%ble +o& d&ect del!e&y to te co'"u)e& e' t " &"t%&!e"ted. R%te& t 'eed" to be c%'(ed ' "o)e %ybe+o&e t c%' be u"ed. Te +o&) c%'('( %ct!ty " o'et%t %dd" !%lue to te $&oduct. C%'('( (&ee' coee

be%'" 'to &o%"ted be%'"@ c%""%!% 'to (%& o& l!e"toc+eed@ +ull +&ut bu'ce" 'to $%l) ol 'c&e%"e" te !%lue o+te $&oduct bec%u"e te co'!e&ted $&oduct %" (&e%te&utlty to te buye&.

*. /%clt%t'( +u'cto'"

• Stan.a6.2at2on co'ce&'ed t te e"t%bl")e't %'d)%'te'%'ce o+ u'+o&) )e%"u&e)e't" o+ $&oduce u%lty%'dDo& u%'tty. T" +u'cto' ")$le" buy'( %'d "ell'(

%" ell %" &educ'( )%&et'( co"t" by e'%bl'( buye&" to"$ec+y $&ec"ely %t tey %'t %'d "u$$le&" toco))u'c%te %t tey %&e %ble %'d ll'( to "u$$ly t&e"$ect to bot u%'tty %'d u%lty o+ $&oduct. I' te%b"e'ce o+ "t%'d%&d e(t" %'d )e%"u&e" t&%de ete&beco)e" )o&e e#$e'"!e to co'duct o& )$o""ble%lto(ete&.

u%lty de&e'ce" ' %(&cultu&%l $&oduct" )%y be due to$&oducto' )etod" %'dDo& bec%u"e o+ te u%lty o+ '$ut"u"ed. Tec'olo(c%l ''o!%to' c%' %l"o (!e &"e to u%lty

de&e'ce". I' %ddto'@ % buye&" %""e"")e't o+ %$&oduct" u%lty " o+te' %' e#$&e""o' o+ $e&"o'%l$&e+e&e'ce. Tu"@ +o& e#%)$le@ ' "o)e )%&et" % ")%llb%'%'% " jud(ed to be ' "o)e "e'"e bette& t%' % l%&(eb%'%'%O te "u(%& " co'"de&ed "u$e&o& to yello"u(%&O lo'( "te))ed c%&'%to'" %&e o+ (e& u%lty t%'"o&t "te))ed c%&'%to'"O %'d te )%5e " e%"e& tod(e"t t%' yello )%5e.

• F2nan12n7 I' %l)o"t %'y $&oducto' "y"te) te&e %&e'e!t%ble l%(" betee' '!e"t'( ' te 'ece""%&y &%)%te&%l" He.(. )%c'e&y@ "eed"@ +e&tl5e&"@ $%c%('(@6%!o&'("@ "toc" etc. %'d &ece!'( te $%y)e't +o& te"%le o+ $&oduce. =u&'( te"e l%( $e&od" "o)e 'd!du%lo& '"ttuto' )u"t '%'ce te '!e"t)e't.

• R2s? bea62n7 I' bot te $&oducto' %'d )%&et'( o+$&oduce te $o""blty o+ 'cu&&'( lo""e" " %l%y"

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$&e"e't. 8y"c%l &"" 'clude te de"t&ucto' o&dete&o&%to' o+ te $&oduce t&ou( &e@ e#ce""!e e%t o&cold@ $e"t"@ 6ood"@ e%&tu%e" etc. M%&et &"" %&e to"eo+ %d!e&"e c%'(e" ' te !%lue o+ te $&oduce betee'te $&oce""e" o+ $&oducto' %'d co'"u)$to'. A c%'(e '

co'"u)e& t%"te" c%' &educe te %tt&%ct!e'e"" o+ te$&oduce %'d "@ te&e+o&e@ %l"o % &". All o+ te"e &"" %&ebo&'e by to"e o&(%'5%to'"@ co)$%'e" %'d 'd!du%l".

• Ma6?et 2ntell27en1e It " te $&oce"" o+ collect'(@'te&$&et'(@ %'d d""e)'%t'( '+o&)%to' &ele!%'t to)%&et'( dec"o'". Te &ole o+ )%&et 'tell(e'ce " to&educe te le!el o+ &" ' dec"o' )%'(. T&ou( )%&et'tell(e'ce te "elle& 'd" out %t te cu"to)e& 'eed"%'d %'t". Te %lte&'%t!e " to 'd out t&ou( "%le"@ o&te l%c o+ te). M%&et'( &e"e%&c el$" e"t%bl" %t

$&oduct" %&e &(t +o& te )%&et@ c c%''el" o+d"t&buto' %&e )o"t %$$&o$&%te@ o be"t to $&o)ote$&oduct" %'d %t $&ce" %&e %cce$t%ble to te )%&et. A"t ote& )%&et'( +u'cto'"@ 'tell(e'ce (%te&'( c%'be c%&&ed out by te "elle& o& %'ote& $%&ty "uc %" %(o!e&')e't %(e'cy@ te )'"t&y o+ %(&cultu&e %'d +ood@o& "o)e ote& "$ec%l"t o&(%'5%to'.

Note E%c o+ te"e +u'cto'" %dd" !%lue to te $&oduct %'d tey&eu&e '$ut"@ "o tey 'cu& co"t". A" lo'( %" te !%lue %dded to te

$&oduct " $o"t!e@ )o"t &)" o& e't&e$&e'eu&" ll 'd t $&ot%ble toco)$ete to "u$$ly te "e&!ce.

"-%-& T9e 8a6?et2n7 824

Te )%&et'( )# co)$&"e" te $&oduct@ $&ce@ $l%ce Hd"t&buto'%'d $&o)oto' dec"o'" %'d " o+te' c%lled te P, 8"Q. Te )# " te&(t co)b'%to' o+ )%&et'( %ct!te" to e'"u&e cu"to)e&"%t"+%cto'. T' %bout you& o' e#$e&e'ce o+ )%&et'( %$$&o%ce"u"ed by % &). %t )%&et'( %$$&o%ce" e'cou&%(e o& d"cou&%(eyou to %'t to buy % $&oduct +&o) t%t &)3 Te %'"e& to te %bo!e

ue"to' le" t te &)" )%&et'( )#. Te ele)e't" o+ te)%&et'( )# %&e 't&oduced belo but ll be t&e%ted "e$%&%tely %'d' (&e%te& det%l ' te l%tte& to$c". Tey %&e:

P6o./1t Te $&oduct oe&'( c%' be )%'$ul%ted to c&e%te de&e't)%&et eect" %t t&ee le!el": te co&e $&oduct@ te t%'(ble $&oduct%'d te %u()e'ted $&oduct. At t" co&e@ % $&oduct " 'ot % $y"c%le'tty but &%te& te be'et" t%t t oe&" cu"to)e&". To"e be'et"

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17/90

)%y be $y"c%l o& $"ycolo(c%l ' '%tu&e. Te co'"u)$to' o+)$o&ted +ood"@ ' % de!elo$'( cou't&y@ "o)et)e" %" %" )uc to dot te "t%tu" o+ be'( "ee' to buy "o$"tc%ted@ %'d $e&%$"e#$e'"!e@ $&oduct" %" t %" t %'y "u$e&o& $y"c%l u%lte"co)$%&ed to do)e"tc eu!%le't". Te t%'(ble $&oduct &e+e&" to t"

+e%tu&e"@ u%lty@ "tyl'(@ $%c%('(@ b&%'d'( %'d l%bel'(. A t&dle!el " t%t o+ te %u()e'ted $&oduct@ t%t "@ %ddto'%l "e&!ceele)e't" c %&e %tt%ced to te $&oduct. E#%)$le" 'clude %+te&"%le" "e&!ce@ e#te'ded (u%&%'tee"@ c&edt +%clte"@ tec'c%l %d!ce%'d $&oduct t&%l".

P621e 8&ce" "ould be "et ' &el%to' to "$ecc $&c'( object!e".8&c'( dec"o'" 'clude $%y)e't"@ te&)"@ d"cou't"@ co't&%ct %'d$&c'( "t&uctu&e". No'$&ce co)$etto' )%y co)e t&ou($%c%('(@ l%bel'( %'d %d!e&t"'(. 8&ce" %!e to &e6ect te co"t" o+$&oducto' %'d )%&et'( %'d t%&(et $&ot )%&('". A !%&ety o+

%$$&o%ce" )%y be t%e' to $&c'( 'clud'( co"t b%"ed@ de)%'db%"ed@ co)$etto& b%"ed %'d )%&et b%"ed.

P6o8ot2on 8&o)oto' 'clude" %d!e&t"'(@ $ublc &el%to'"@ "ell'(@e#bto'"@ b&ocu&e"@ d%t% "eet" %'d +&ee (+t". 8o""bly te )o"t)$o&t%'t dec"o' %bout $&o)oto' " te )e""%(e to beco))u'c%ted. Te )e""%(eH" %" to de&e't%te te $&oduct"%'dDo& t" "u$$le&. To t" e'd@ %' o&(%'5%to' ll "ee to co'!ey %u'ue "ell'( $&o$o"to'@ t%t "@ to 'd "o)e %"$ect o+ te $&oduct@"e&!ce o& o&(%'5%to' c ote&" c%''ot@ o& ")$ly do 'ot@ $&o)oteto cu"to)e&" %'d c " $e&ce!ed to be )$o&t%'t o& %tt&%ct!e to

to"e co'"u)e&".

Pla1e 8&oduce d"t&buto' ele)e't" 'clude $y"c%l d"t&buto' le"to&%(e %'dl'(@ t&%'"$o&t%to' %'d %&eou"'(@ bot o' %'d o+%&)@ %'d +u'cto'%l d"t&buto' e.(. ole"%l'( %'d &et%l'(. Tedec"o' %" to c d"t&buto' c%''el te o&(%'5%to' "ould "eeto u"e +%ll" 'to te &e%l) o+ "t&%te(c )%&et'( but %cto'" t' teco"e' c%''el" %&e o$e&%to'%l ' '%tu&e. I'$ut "toc"t"@ (&oe&"@$&oce""o&" %'d )%'u+%ctu&e&" %!e to )%&et te& $&oduct" to@ %'d'ot t&ou(@ c%''el )e)be&". To te e#te't t%t c%''el )e)be&""ee te)"el!e" %" %'yo'e" %(e't@ tey %&e )o&e lely to "ee

te)"el!e" %" %(e't" o+ te& cu"to)e&" &%te& t%' %(e't" o+ $&oduct"u$$le&".

"-& I85o6tan1e of a7621/lt/6al an. foo. 8a6?et2n7

Eect!e %(&cultu&%l %'d +ood )%&et'( " )$o&t%'t to de!elo$'(cou't&e" +o& te +ollo'( &e%"o'":

#


18/90

• A(&cultu&e " te b((e"t "'(le 'du"t&y ' de!elo$'( cou't&e"

o L%&(e"t e)$loye&o -ou&ce o+ &% )%te&%l"

o M%&et +o& )%'u+%ctu&ed (ood"

• Eco'o)c (&ot %'d de!elo$)e't ' de!elo$'( cou't&e"

o I'c&e%"'( u&b%'5%to'o I'c&e%"'( 'co)e"o I'c&e%"'( e)$loy)e't o+ o)e'

• I)$&o!e)e't o+ &u&%l 'co)e" ' de!elo$'( cou't&e"

o I'co)e 'eu%lty betee' te &u&%l %'d u&b%' %&e%"o Ru&%lu&b%' )(&%to'

• Ado$to' o+ )%&et lbe&%l5%to' %'d $&!%t5%to' $olce"

o =ec&e%"ed $%&tc$%to' o+ te $ublc "ecto& ' )%&et'(o I'c&e%"ed $%&tc$%to' o+ te $&!%te "ecto& ' )%&et'(

"-' #9at 2s t9e l2n? beteen a7621/lt/6e an. t9e foo.

2n./st6@$

Te l' betee' %(&cultu&e %'d +ood co't'u%lly e!ol!e". I' $&)t!e"ocete"@ te +%&)e& %'d co'"u)e& e&e ete& +&o) te "%)e +%)lyo& clo"e 'e(bo&" o b%&te&ed te& $&oduct" %'d "e&!ce"@ but %""ocete" de!elo$ed ote& l'%(e" e&e %dded. Co))odty t&%de&"@$&oce""o&" o co'!e&ted $&oduce 'to +ood te)" %'d &et%le&"@%)o'( ote&"@ e&e 't&oduced betee' te $&oduce& %'d co'"u)e&. A)o&e &ece'tly 't&oduced l' 'to te c%' " te "ce't"t. -ce't"t""uc %" b&eede&"@ bolo("t"@ 'ut&to'"t" %'d ce)"t" %!e )%de %'

))e%"u&%ble co't&buto' to te de!elo$)e't o+ %(&cultu&%l$&oducto' %'d +ood $&oce""'( o!e& te $%"t 40 ye%&". Tu"@ t ould%$$e%& t%t e %!e $%""ed t&ou( te %(e o+ )%c'e" '%(&cultu&e@ %'d te %(e o+ ce)c%l"@ o' to te %(e o+ botec'olo(y '%(&cultu&e. A" te l' betee' +ood %'d %(&cultu&e co't'ue" toe!ol!e@ e "ee te e)e&(e'ce o+ %' %(&bu"'e"" e&e %(&cultu&e%'d +ood %!e beco)e % co't'uu). /o& e#%)$le@ )ult'%to'%l

$


19/90

co)$%'e" %&e !e&tc%lly 'te(&%ted o&(%'5%to'" t l'" %ll te %yt&ou( +&o) %(&cultu&%l $&oducto' to &et%l'(.

A" d"$o"%ble 'co)e" 'c&e%"e %'d co'"u)e&" beco)e )o&e"o$"tc%ted@ te +ood 'du"t&y ll 'c&e%"e te u%lty %'d d!e&"ty

o+ te $&oduct" t $&oduce". %t e#$ect%to'" ll +ood $&oce""o&"te' %!e o+ te& "u$$le&"3 /ood $&oce""o&" ll %!e te +ollo'(e#$ect%to'" o+ %(&cultu&e %" % "u$$le& o+ te& &% )%te&%l":

• /al2t@ To buld % $&ot%ble bu"'e""@ +ood $&oce""o&" "ee toe"t%bl" % $&e+e&e'ce +o& te& $&oduct" by de&e't%t'( to"e$&oduct" ' "o)e %y c " )e%''(+ul to co'"u)e&". Te'@' o&de& to e'%ble co'"u)e&" to &eco('5e te de&e't%ted$&oduct@ $&oce""o&" b&%'d t%t $&oduct. /ood $&oce""o&" c%'te' o& o' buld'( co'"u)e& loy%lty to te"e b&%'d". B&%'dloy%lty " 'o&)%lly o'ly e"t%bl"ed by del!e&'( ( u%lty

co'""te'tly. A" d"$o"%ble 'co)e" &"e@ te )%&et te'd" tode!elo$ )o&e "o$"tc%ted 'eed" %'d te u%lty o+ te &%)%te&%l beco)e" e!e' )o&e c&tc%l. e&e %(&cultu&e ""ee'( to "e&!e % +ood 'du"t&y@ t%t t"el+ " "ee'( to )eette"e )o&e "o$"tc%ted 'eed" %'d %'t"@ t c%' e#$ect to +%ce'c&e%"'( e)$%"" o' u%lty. Eu%lly ell@ %(&cultu&e c%'e#$ect to "%&e ' te bette& &etu&' +o& ''o!%t!e )$&o!e)e't"' u%lty.

• Cost t %' 'c&e%"ed c%$%blty to "ou&ce &% )%te&%l"(lob%lly@ te +ood 'du"t&y " %ble to 'd te loe"t co"t "ou&ce

+o& %'y (!e' le!el o+ u%lty. T" %" bee' )%de $o""ble by)$&o!ed t&%'"$o&t%to' %'d co))u'c%to'" tec'olo(e"@lbe&%l (lob%l t&%de $olce" etc. T" " % 'e %'d "('c%'tc%'(e ' te co)$ett!e e'!&o')e't o+ %(&cultu&e c te+%&)e&" ' de!elo$'( cou't&e" %!e to &e%l5eO ote&"e teyll be c&odedout by +o&e(' co)$etto'.

• Non;seasonal2t@ A(&cultu&%l $&oduct" %&e t&%dto'%lly"e%"o'%l ' te& $&oducto' %'d "u$$ly. oe!e&@ )ode&'tec'olo(y %'d u"b%'d&y $&%ctce" )e%' t%t +ood $&oce""o&"'eed 'ot %!e te& $&oducto' "cedule" dct%ted by te"e%"o'". I'deed@ c%$t%l 'te'"!e +ood 'du"t&e" c%''ot %o&dto 'cu& ( co"t" o+ u'de& utl5'( te& c%$%cte". T" )e%'"t%t +%&)e&" ll %!e to co)$ete ' te&)" o+ &educ'("e%"o'%lty o+ te& $&oducto'.

• Rel2ab2l2t@ A +ood $&oce""o& o %" '!e"ted e%!ly 'buld'( u$ t" b&%'d ll be !e&y ee' to (et &el%ble "u$$le" '

&


20/90

te&)" o+ u%lty@ t)'( %'d co"t. 8&oduce&" o+ %(&cultu&%l$&oduce ll be 'c&e%"'(ly jud(ed o' te& &el%blty ' %ll o+te"e &e"$ect".

• P6o1ess2n7 E%"e o+ $&oce""'( ll beco)e %' 'c&e%"'(ly

)$o&t%'t e#$ect%to' o+ te +ood 'du"t&y. Le %ll 'du"t&e"@&educto'" ' te co"t" o+ c%$t%l eu$)e't@ %(e" %'d'!e'to&e" %&e )$o&t%'t object!e". /o& e#%)$le@ +%&)e&" oc%' del!e& o' te ju"t't)e $&'c$le ll co't&bute to%&d"&educ'( % $&oce""o&" o&'( c%$t%l %'d "$%ce &eu&e)e't"./%&)e&" o c%' do $%&t o+ te "eco'd%&y $&oce""'( %'dDo&$e&+o&)'( +u'cto'" "uc %" te $o"t %&!e"t t&e%t)e't o+ tec&o$ o& t&%'"$o&t'( ll be %dd'( %'ote& %d!%'t%(e. C&o$" %'d%')%l" t%t %&e "$ec%lly b&ed o& de"('ed to +%clt%te$&oce""'( He.(. "eedle"" +&ut"@ +e%te&le"" cce'"@ coeebe%'" tout c%e'e@ lo cole"te&ol )e%t" $&o!de %'ote&

"ou&ce o+ %d!%'t%(e t%t te +ood 'du"t&y could e#$ect +&o)%(&cultu&e. I' "o&t@ te co)$ett!e %d!%'t%(e ll &e"t tto"e %ble to %dd )o"t !%lue %'d c%' de&e't%te %t tey %&eoe&'( +&o) t%t o+ ote& "u$$le&".

• P6o./1t .2e6ent2at2on I' co)$ett!e b&%'d )%&et'(@ te+ood 'du"t&y %" to ''o!%te co't'uou"ly to c&e%te 'e$&oduct" t%t %&e de&e't +&o) %'d "u$e&o& to e#"t'( o'e" o+te& o' o& co)$etto&". Te "co$e o+ ''o!%to' %"t&%dto'%lly bee' %t te $&oce""'( "t%(e. l"t t" llco't'ue to be %' )$o&t%'t %&e% +o& ''o!%to'@ +ood $&oce""o&"

ll 'c&e%"'(ly te'd to loo +o& ''o!%t!e c%'(e" ' te%(&cultu&%l $&oduce t"el+. T" )%y be ' te&)" o+ 'o!el t%"te"@)$&o!ed te#tu&e@ )o&e %tt&%ct!e "%$e" etc.

• Healt9 as5e1ts /%ced t 'c&e%"'(ly "o$"tc%ted +ood)%&et"@ +%&)e&" ll %!e to co'"de& te e%lt )$lc%to'" o+%t tey coo"e to (&o. Te&e %&e cu&&e'tly to %"$ect" o+e%lt to be t%e' 'to %ccou't. /&"t@ co'"u)e&" %&e 'c&e%"'(ly(ett'( co'ce&'ed %bout te e%lt "t%tu" o+ te +ood t"el+ .e.lo +%tDcole"te&ol@ loD'o "u(%&@ loD'o "%lt@ o& t" 'ut&to'%l!%lue. -eco'd@ co'"u)e&" %&e co'ce&'ed %bout te +ood$&oducto' )etod" .e. te %!od%'ce o+ ce)c%l" lee&bcde"@ $e"tcde"@ !ete&'%&y d&u(" etc. T" )%y )e%' %c%'(e to te +%&)e&" u"b%'d&y $&%ctce" t )$lc%to'" +o&te co"t" o+ $&oducto'.

"-( Con1l/.2n7 6e8a6?s an. a1t232t@

%


21/90

Te )%&et'( co'ce$t "u((e"t" t%t %' o&(%'"%to' " be"t %ble to%ce!e t" lo'( te&) object!e" by o&e't%t'( %ll o+ t" o$e&%to'"to%&d" te t%" o+ co'""te'tly del!e&'( "%t"+%cto' to te cu"to)e&.I' o&de& to do "o@ te o&(%'"%to' )u"t be(' by (ett'( to 'o %tt " t%t ll "%t"+y te cu"to)e&. Tu"@ te )%&et'( "y"te) %" %

ole %" to be cu"to)e& o&e't%ted. I' te c%"e "tudy belo@ de't+yte ey ele)e't" o+ )%&et'( t%t e&e "o)eo ('o&ed by tee'e5uel%' (o!e&')e't %'d led to te +%lu&e o+ te& c%""%!%$&oce""'( $&oject3

Case Vene/ela Is O3e66/n B@ Ele59ants

It " "%d t%t e' % "e'o& )e)be& o+ " cou&t "e&ou"ly d"$le%"ed )@ te K'( o+ -%) ould )%e t%t 'd!du%l % (+t o+ % te ele$%'t. Te te ele$%'t "bot &%&e %'d@ ' -%)@ %" co'"de&ed "%c&ed. -%) t&%dto' dd 'ot $e&)t teele$%'t" to be o&ed %'d "o te %$le"" o'e& could )%e 'o eco'o)c (%' +&o)o'e&"$ o+ t" "%c&ed %')%l. I' +%ct@ o'e&"$ o+ % te ele$%'t u"u%lly led to'%'c%l &u' "'ce te o'e& %d to +eed te "%c&ed %')%l o' % "$ec%l det %'dele$%'t" te'd to %!e &%te& % l%&(e %$$ette. I' te 1>70" e'e5uel% '!e"ted U-S20 )llo' ' 9 c%""%!% $&oce""'( $l%'t" t% !e to deyd&%t'( c%""%!%@ %l&e%dy (&o' loc%lly@ %'d u"'( t %" %' '(&ede't '%')%l +eed. Te 'te'to' %" to "ub"ttute te loc%l $&oduct +o& 21@900 to''e" o+)$o&ted ce&e%l" Hce6y )%5e %'d "o&(u) %'d c&e%te o!e& 900 job". Mo&eo!e&@c%""%!% could b&'( )%&('%l l%'d" 'to $&oducto' %" t" c&o$ c%' 6ou&" o' "ol"t%t %&e too $oo& +o& "o&(u) o& )%5e. All 9 c%""%!% $&oce""'( $l%'t" bec%)ete ele$%'t". Go!e&')e't %" $u&"u'( %' 'co'(&uou" $&c'( $olcy. M%'u+%ctu&e&" e&e be'("u$$led t (o!e&')e't "ub"d"ed )$o&ted +eed (&%'"@ ' o&de& to ee$ &et%l)e%t $&ce" do' (&%'"@ ' o&de& to ee$ &et%l )e%t $&ce" do'. Loc%l +%&)e&"could 'ot co)$ete "'ce )$o&ted "o&(u) %" del!e&ed to te +eed )ll" %t U-S1,2$e& to''e le do)e"tc "u$$le" e&e U-S141 $e& to''e. Te "tu%to' (ot o&"ee' te (o!e&')e't %''ou'ced % *0 $e&ce't 'c&e%"e ' +%&)e& $&ce". e'e5uel%' +eed )%'u+%ctu&e&" could obt%' c%""%!% $ellet" +&o) T%l%'d %t %loe& co"t t%' tey could +&o) loc%l )ll". Mo&eo!e&@ +eed )%'u+%ctu&e&" o couldbuy "o&(u) %t U-S140 $e& to''e e&e 'ot 'cl'ed to $u&c%"e loc%lly $&oducedc%""%!% $ellet" %t U-S240 $e& to''e. /&o) te out"et t %" e!de't t%t te '!e"t)e't ' c%""%!% $&oce""'( ould be)%&('%l ' eco'o)c te&)". Te +e%"blty "tudy "u((e"ted t%t %+te& te te't ye%&te &%te o+ &etu&' ould &e%c 11 $e&ce't %'d te 'te&'%l &%te o+ &etu&' ould beo'ly 7 $e&ce't. oe!e&@ e'e5uel% %d beco)e %' ol&c cou't&y %'d c%$t%l %"'ot ' "o&t "u$$ly. T" $e&%$" e#$l%'" y t %" decded t%t te )o"ttec'olo(c%lly %d!%'ced eu$)e't@ +&o) le%d'( )%'u+%ctu&e&"@ ould be bou(t+o& te $&oce""'( $l%'t" %'d t%t +uel ol ould be u"ed +o& d&y'( &%te& t%' "u'd&y'( %" ' te )o"t o+ te o&ld.

I'%deu%te %tte'to' %d bee' $%d to te ue"to'" o+ &% )%te&%l "u$$ly. I' %21* $%(e &e$o&t o'ly 1 $%(e touced o' t" ""ue. A+te& %ll@ e'e5uel%' +%&)e&" %d% lo'( "to&y o+ (&o'( c%""%!%. oe!e&@ te&e %" 'o %$$&ec%ble 'c&e%"e ' teect%&%(e o+ c%""%!% %'d +%&)e&" o could "ell c%""%!% +o& u)%' co'"u)$to' %tU-S74 $e& to''e &e+u"ed te be"t oe& t%t te c%""%!% $&oce""'( )ll" could )%eo+ U-S,4 $e& to''e. e'e5uel%" c%""%!% $&oce""'( $l%'t" +%led %'d bec%)e te ele$%'t". Te$l%''e&" o+ te $&oject too lttle %ccou't o+ te )%&et'( co'ce$t 'o& te '%tu&e o+te )%&et'( "y"te). Te 'eed" o+ bot te &% )%te&%l "u$$le&"@ te +%&)e&"@ %'d

'


22/90

te +eed )%'u+%ctu&e&" ou(t to %!e bee' c%&e+ully "tuded be+o&e te $&oject %"de"('ed. Te&e %" 'o %tte)$t to )%&et te $&oject to te +%&)e&" o co't'uedto de)%'d te "%)e $&ce +o& c%""%!% de"t'ed +o& %')%l +eed %" tey obt%'ed +o&c%""%!% $&oce""ed +o& u)%' co'"u)$to'@ e!e' tou( te eco'o)c" o+ te to"ecto&" %&e ute de&e't. No $&o(&%))e %" '"ttuted to $&o)ote te de% o+$l%'t'( %ddto'%l %&e%" o+ c%""%!%. Te eco'o)c" o+ +eed )%'u+%ctu&'( e&e

")l%&ly ('o&ed %'d "o te c%""%!% $&oce""o&" %d d?culty ' "ell'( te& $ellet".8e&%$" t % )o&e %$$&o$&%te le!el o+ tec'olo(y te co"t" o+ $&oduc'( c%""%!%$ellet" could %!e bee' &educed to % $o't e&e tey could co)$ete t )$o&tedc%""%!% $ellet"@ "o&(u) %'d )%5e.

Rea.2n7s

1. Kotle&@ 8. %'d Kelle&@ K. L. 2009. M%&et'( M%'%(e)e't. Tel+t edto'. 8&e'tce %ll@ E'(leood Cl"@ N.J.@ c%$te&"12.

2. C&%+o&d@ I. M. 1>>7. A(&cultu&%l %'d /ood M%&et'(

M%'%(e)e't. Ro)e: /ood %'d A(&cultu&e


23/90

TOPIC % Co88o.2t@ 8a6?et2n7

%-" Int6o./1t2on

To be(' t" to$c@ t " )$o&t%'t to u'de&"t%'d te )e%''( o+ %'%(&cultu&%l co))odty. Te te&) co))odty " co))o'ly u"ed '&e+e&e'ce to b%"c %(&cultu&%l $&oduct" t%t %&e ete& ' te& o&('%l+o&) o& %!e u'de&(o'e o'ly $&)%&y $&oce""'(. I' ote& o&d"@%(&cultu&%l co))odte" %&e (e'e&c@ u'de&e't%ted $&oduct" t%t@"'ce tey %!e 'o ote& d"t'(u"'( %'d )%&et%ble c%&%cte&"tc"@co)$ete t o'e %'ote& o' te b%"" o+ $&ce. E#%)$le" o+co))odte" 'clude ce&e%l"@ coee be%'"@ "u(%&@ $%l) ol@ e(("@ )l@+&ut"@ !e(et%ble"@ bee+@ cotto' %'d &ubbe&. Co))odte" co't&%"t"%&$ly t de&e't%ted $&oduct" t%t ll be d"cu""ed ' te 'e#t

to$c. T" to$c +ocu"e" o' co))odty )%&et'( %'d )%&et'("y"te)" %'d t " 'te'ded to )%e you u'de&"t%'d:

• Te $&'c$%l "t%(e" o+ %(&cultu&%l co))odty )%&et'(• Te )%' $%&tc$%'t" ' co))odty )%&et'( "y"te)" %'d te

&ole" c tey $e&+o&)@ %'d

• Te )%&et'( "y"te)" o+ "elected %(&cultu&%l co))odte".

%-% Sta7es 2n a 1o88o.2t@ 8a6?et2n7 s@ste8

A co))odty )%&et'( "y"te) e'co)$%""e" %ll te $%&tc$%'t" o&%cto&" ' te $&oducto'@ $&oce""'( %'d )%&et'( o+ %'u'de&e't%ted o& u'b&%'ded +%&) $&oduct H"uc %" ce&e%l"@ 'clud'(+%&) '$ut "u$$le&"@ +%&)e&"@ "to&%(e o$e&%to&"@ $&oce""o&"@ole"%le&" %'d &et%le&" '!ol!ed ' te 6o o+ te co))odty +&o)'t%l '$ut" to te '%l co'"u)e&. Te co))odty )%&et'( "y"te)%l"o 'clude" %ll te '"ttuto'" %'d %&&%'(e)e't" t%t eect %'dcoo&d'%te te "ucce""!e "t%(e" o+ % co))odty 6o "uc %" te(o!e&')e't %'d t" $%&%"t%t%l"@ t&%de %""oc%to'"@ coo$e&%t!e"@

'%'c%l $%&t'e&"@ t&%'"$o&t (&ou$" %'d educ%to'%l o&(%'5%to'"&el%ted to te co))odty. Te co))odty "y"te) +&%)eo& 'clude"te )%jo& l'%(e" t%t old te "y"te) to(ete& "uc %"t&%'"$o&t%to'@ co't&%ctu%l coo&d'%to'@ !e&tc%l 'te(&%to'@ jo't!e'tu&e"@ t&$%&tte )%&et'( %&&%'(e)e't"@ %'d '%'c%l%&&%'(e)e't". Te "y"te)" %$$&o%c e)$%"5e" te'te&de$e'de'ce %'d 'te&&el%ted'e"" o+ %ll %"$ect" o+ %(&bu"'e""@


24/90

'%)ely: +&o) +%&) '$ut "u$$ly to te (&o'(@ %""e)bl'(@ "to&%(e@$&oce""'(@ d"t&buto' %'d ult)%te co'"u)$to' o+ te $&oduct.

Te )%&et'( "y"te)" de& dely %cco&d'( to te co))odty@ te"y"te)" o+ $&oducto'@ te cultu&e %'d t&%dto'" o+ te $&oduce&" %'d

te le!el o+ de!elo$)e't o+ bot te $%&tcul%& cou't&y %'d te$%&tcul%& "ecto& t' t%t cou't&y. E#%)$le" 'clude te )l %'d)%5e )%&et'( "y"te)" ' U(%'d% de"c&bed belo.

%-& T9e 82l? 8a6?et2n7 s@ste8 2n U7an.a

Te&e %&e !%&ou" $%&tc$%'t" '!ol!ed ' te d%&y "ecto& ' U(%'d%H/(u&e 1. Tey 'clude: d%&y +%&)e&"@ t&%de&"@ $&oce""o&"@d"t&buto&"@ %'d co'"u)e&". A'ote& 'd&ect $%&tc$%'t %'d"u$$o&t!e '"ttuto' " te =%&y =e!elo$)e't Auto&ty H==A@ %"t%tuto&y body )%'d%ted to o!e&"ee te de!elo$)e't %'d &e(ul%to'o+ te d%&y 'du"t&y.

To $%&%llel )l )%&et'( c%''el" e#"t ' U(%'d%. Tey %&e'+o&)%l %'d +o&)%l )%&et'( c%''el".

%-&-" T9e 2nfo68al 82l? 8a6?et2n7 19annel

T" c%''el &e+e&" to te "e()e't o+ te )%&et t&ou( c &%)l " $&ocu&ed %'d )%&eted tout %'y $&oce""'( %'d $%c%('(. Te ey $l%ye&" ' t" c%''el %&e t&%de&"D%e&"@ o u"u%llyt&%'"$o&t te )l ' lo co"t eu$)e't "uc %" je&&y c%'"@ )%'ly ')l c%'" o' $cu$ t&uc"@ )oto&cycle" %'d bcycle" %'d o+te' del!e&)l d&ectly to te co'"u)'( ou"eold".

Te '+o&)%l )l )%&et t&%de %ccou't" +o& ;0>0 o+ te tot%l )lt&%de ' U(%'d% tod%y. Te t&%de ' u'$&oce""ed )l %" %d %t&e)e'dou" )$%ct ' )o$$'( u$ "u&$lu" )l +&o) d%&y +%&)e&". Tod%te@ t" "ecto& %" beco)e %' )$o&t%'t "ou&ce o+ 'co)e to )%'y

$eo$le %'d % "e&ou" co)$etto& to te +o&)%l )l c%''el.

!


25/90

Figure 2.1: Marketing channels for milk and milk products in Uganda

3

Formal Sector

Formal Sector

#) of raw milk

Milk Collectors

Consumers

*airy

*evelopmentAut+ority

,(ports

Informal Sector

*airy -armers

rocessing lants

*istributors

/etailers

/aw Milk *istributors

/aw Milk /etailers

*airy

*evelopmentAut+ority


26/90

%t do you t' %&e te &el%t!e "t&e'(t" %'d e%'e""e" o+ te'+o&)%l )l )%&et'( c%''el"3 Te "t&e'(t" %'d e%'e""e" o+te '+o&)%l )l )%&et'( c%''el %&e d&ectly de&!ed +&o) te"t&e'(t" o+ t" ey $l%ye&"@ te )l %e&". Tey %&e %" +ollo":

St6en7t9s

• Reu&e" ")%ll 't%l c%$t%l outl%y.

• T&!e" ' %&e%" l%c'( )l bul'( ce'te&".

• /%&)e&" %&e $%d c%" o' del!e&y.

• /%&)e&" obt%' % (e& $&ce %'d co'"u)e&" $%y % loe& $&ce.

• Te&e %&e 'o $&oce""'( %'d $%c%('( co"t" '!ol!ed.

• E?ce't )l d"t&buto' bec%u"e o+ doo& to doo& del!e&y.

• C&edt de%l'(" t co'"u)e&" %&e $o""ble.

#ea?nesses

• L%c" +%clte" +o& $%"teu&5%to' %'d y(e'c %'dl'( o+ )l.

• Ml " o+te' %dulte&%ted t %te& %'d ote& ce)c%l"@ e.(."odu) bc%&bo'%te.

• Ml " t&%'"$o&ted ' $oo& u%lty !e""el"@ e.(. je&&y c%'".

• Ml " o+te' boled ' !e&y u'y(e'c e'!&o')e't".

• It c%''ot %tt&%ct de!elo$)e't c&edt u'le"" te )l %e&" %&eo&(%'5ed.

• =?cult to )o'to& %'d "u$e&!"e u%lty "t%'d%&d" bec%u"e o+te 'u)be& %'d "c%tte&ed '%tu&e o+ %e&".

• It c%''ot "u$$o&t %' o&(%'5ed %'d el%bo&%te '%to'de )lcollecto' "y"te) bec%u"e o$e&%to&" %&e &eluct%'t to e"t%bl" o&'!e"t ' )l collecto' '+&%"t&uctu&e.

%-&-% T9e fo68al 82l? 8a6?et2n7 19annel

Te +o&)%l )l )%&et'( c%''el@ o' te ote& %'d@ o$e&%te" %'o&(%'5ed "y"te) o+ )l collecto'@ u"'( elle"t%bl"ed bul'( %'dt&%'"$o&t '+&%"t&uctu&e. Ml coole&" %&e "et u$ ' te cou't&y"de +o&)l collecto' by +%&)e&"@ coo$e&%t!e "ocete"@ o& %(e't".

Te&e%+te&@ clled )l " t&%'"$o&ted ' '"ul%ted )l t%'e&" to te+%cto&y e&e t " $&oce""ed %'d $%c%(ed be+o&e )%&et'(. Te&e%&e o!e& te' d%&y $&oce""'( $l%'t" cou't&yde t % tot%l '"t%lled$&oce""'( c%$%cty o+ o!e& *40@000 lt&e" $e& d%y. A+te& $&oce""'(@d%&y $&oduct" %&e d"t&buted t&ou( !e'do&" o& d&ectly del!e&ed to(&oce&e"@ "u$e&)%&et"@ otel"@ &e"t%u&%'t"@ "cool" %'d o"$t%l".-o)e o+ te d%&y $&oduct" %&e e#$o&ted to &e(o'%l )%&et" 'clud'(=e)oc&%tc Re$ublc o+ Co'(o@ T%'5%'%@ R%'d% %'d Bu&u'd.

"


27/90

%t do you "ee %" be'( te "t&e'(t" %'d e%'e""e" o+ "ell'( )lt&ou( te +o&)%l )%&et'( c%''el3 Te +ollo'( "t&e'(t" %'de%'e""e" %!e bee' %tt&buted to te +o&)%l )l )%&et'(c%''el:

St6en7t9s

• 8&oduce" %'d )%&et" ( u%lty )l %'d d%&y $&oduct".

• -el+ l+e o+ )l %'d d%&y $&oduct" " 'c&e%"ed.

• C%' %tt&%ct de!elo$)e't c&edt bec%u"e t " o&(%'5ed.

• E%"y to )o'to& %'d "u$e&!"e u%lty "t%'d%&d".

• It c%' "u$$o&t %' o&(%'5ed %'d el%bo&%te '%to'de )lcollecto' "y"te) bec%u"e o$e&%to&" %&e ee' to e"t%bl" o&'!e"t ' )l collecto' '+&%"t&uctu&e.

#ea?nesses

• Reu&e" l%&(e 't%l c%$t%l outl%y.

• /e %'d '%deu%te bul'( ce't&e".

• ( $&oce""'( %'d $%c%('( co"t".

• 8&ce" o+ $&oce""ed )l %'d d%&y $&oduct" %&e (.

• Ml " obt%'ed +&o) +%&)e&" o' c&edt %'d del%yed $%y)e't"%&e te 'o&).

• C&edt t&%'"%cto'" t co'"u)e&" %&e %b"e't.

%-' T9e 8a2e 8a6?et2n7 s@ste8 2n U7an.a

Te )%5e )%&et'( "y"te) o& !%lue c%' co)$&"e" 'u)e&ou" ey$l%ye&" o& %cto&": $&oduce&"@ t&%de&"@ co))odty b&oe&"@ (&%' )lle&"@%')%l +eed ble'de&"@ loc%l b&ee&" %'d co'"u)e&". -u$$o&t'"ttuto'" 'clude: U(%'d% Co))odty E#c%'(e HUCE.

M%5e )o!e" +&o) te +%&)e& to te '%l co'"u)e& t&ou( to )%'!%lue c%'" o& )%&et'( c%''el" '%)ely: te )%5e (&%' %'d te

)%5e 6ou& !%lue c%'". Te&e %&e % 'u)be& o+ ey $l%ye&" o$e&+o&) !%&ed +u'cto'" c dete&)'e te le!el o+ e?ce'cy 'e%c o+ te"e !%lue c%'". Te"e !%lue c%'" %'d te& &e"$ect!eey $l%ye&" %&e !!dly "o' ' /(u&e 2 belo:

#


28/90

U/BA 1/A*,/2A4,12 M,*5UM 2CAL,M5LL,/2

2MALL C/622B6/*,/1/A*,/2

2MALL 2CAL,

M5LL,/2

LA/4, 2CAL,

1/A*,/2,76/1,/2 LA/4, 2CAL,

M5LL,/2

*/58,/2

/,L5,-A4,C5,2

,76/1 MA/8,1 A5MAL -,,*-AC16/5,2

9:6L,2AL,/2

-,,*A4,12

89,1,B/,9,/2

2U,/MA/8,12/,1A5L,/2

/,456ALC6U1/5,2 52151U1562

A5MAL/6*UC,/2

-A/M,/2

U4A*AC6MM6*51;

,7C:A4,

Unimi(= -lour = 4erm=


29/90

%-'-" T9e 8a2e 76a2n 8a6?et2n7 19annel

T" )%&et'( c%''el " lo'(e& %'d " do)'%ted by % 'u)be& o+ ey$l%ye&" c 'clude +%&)e&"@ &u&%l t&%de&"@ u&b%' t&%de&"@ l%&(e"c%le

t&%de&"De#$o&te&" %'d )lle&". -'ce t %'dle" betee' 4074 o+ tedo)e"tc%lly t&%ded )%5e %'d 100 o+ e#$o&ted )%5e@ t " e'ce te)o"t &el%ble o'e +o& +%&)e&". T&ou(out t" !%lue c%'@ )%5e ""old %" (&%'. oe!e&@ due to te l%&(e c%$t%l 'eed"@ te 'u)be& o+ey $l%ye&" dec&e%"e" %" o'e )o!e" do' te c%'.

%t do you t' %&e te "t&e'(t" %'d e%'e""e" o+ "ell'( )%5e%" (&%'3 Te +ollo'( "t&e'(t" %'d e%'e""e" %!e bee'%tt&buted to te )%5e (&%' !%lue c%':

St6en7t9s

• It oe&" +%&)e&" o& +%&)e& o&(%'5%to'" % de coce o+ )%&etoutlet" t&ou( c to )%&et te& )%5e (&%'.

• It e)$loy" 'u)e&ou" $l%ye&" e!e' + !%lue %ddto' " 'e(l(ble.

• A" o'e )o!e" do'"t&e%)@ eco'o)e" o+ "c%le %'d u%lty)$&o!e)e't" %&e &e%l5ed.

• It oe&" o$$o&tu'te" +o& (&ot %'d e#$%'"o' 'to'te&'%to'%l )%&et".

#ea?nesses

• By %!'( !e&y )%'y $%&tc$%'t"@ t " t)eco'"u)'( %'d%""oc%ted t ( t&%'"%cto' co"t" t%t %&e t&%'")tted b%cto +%&)e&" ' te +o&) o+ lo $&ce".

• It l%c" "('c%'t !%lue %ddto' "'ce te e)$%"" " o'ly o'u%lty %tt&bute" o+ )%5e (&%'.

• L)ted "to&%(e +%clte" &e"ult" ' "$ot t&%'"%cto'"@ c 'eect t%)$e&" t te u%lty o+ te (&%' %'d &e"ult" ' ($o"t %&!e"t lo""e" 'cu&&ed by te $%&tc$%'t".

• Co)$etto' %)o'( te $%&tc$%'t" &educe" %" o'e )o!e"do' te c%''el (!e' te& dec&e%"'( 'u)be&".

• It %" 'u)e&ou" $%&t t)e %'d "$ecul%t!e t&%de&" %'d %(e't".• A"y))et&c )%&et '+o&)%to' %'d loe& b%&(%''( $oe&

occu&" %" o'e )o!e" do' te c%''el. -%le" o+ )%5e %t%&!e"t "e%"o' +u&te& loe&" te +%&)e&" b%&(%''( $o"to'+o& bette& $&ce" o' l%&(e !olu)e".

• It " c%&%cte&5ed by u"e o+ )o"tly "$ot )%&et" &%te& t%'co't&%ct" %'d lo'(te&) bu"'e"" &el%to'"$".


30/90

%-'-% T9e 8a2e o/6 8a6?et2n7 19annel

Te )%5e 6ou& !%lue c%' e't%l" te co'!e&"o' o+ )%5e (&%' 'to6ou& %'d ote& by$&oduct" "uc %" b&%'@ %'d (e&). T" !%lue c%' "%l"o lo'( co'""t'( o+ 'u)e&ou" $l%ye&": +%&)e&"@ &u&%l t&%de&"@ u&b%'

t&%de&"@ l%&(e"c%le t&%de&" %'d )lle&". oe!e&@ te $&'c$%l $l%ye&"' t" !%lue c%' %&e ")%ll"c%le@ )edu)"c%le %'d l%&(e"c%le)lle&". -)%ll"c%le )lle&" c%&&y out $&edo)'%'tly co't&%ct o&cu"to)5ed )ll'(.


31/90

• M%'y $%&tc$%'t" u'de&)'e e?ce'cy %'d e&ode te (%'"%cc&u'( to e%c o'e o+ te).

• Te $%&tc$%'t" do 'ot %$$&ec%te u%lty %" o'e )o!e"do'"t&e%) t &e"$ect to $&oduct 6o. /o& e#%)$le@ ")%ll"c%le )lle&" do 'ot (&%de te& )%5e "u$$le".

• M%&et '+o&)%to' %'d b%&(%''( $oe& +%!ou&" $%&tc$%'t"do'"t&e%).

• I'%deu%te "to&%(e %ect" $l%'''( %'d ")oot o$e&%to'" o+te $%&tc$%'t".

• Co)$etto' %'d e't&y o+ $%&tc$%'t" " u'de&)'ed %" o'e)o!e" do'"t&e%)@ (!e' te c%$t%l outl%y &eu&ed.

• L)ted !olu)e" %'dled %" o'e )o!e" do' te c%'u'de&)'e e?ce'cy.

• >7. A(&cultu&%l %'d /ood M%&et'(M%'%(e)e't. Ro)e: /ood %'d A(&cultu&e


32/90

!0


33/90

TOPIC & Ne 56o./1t .e3elo58ent

&-" Int6o./1t2on

I' te $&e!ou" to$c@ you "% t%t l%c o+ de&e't%to' ' %(&cultu&%lco))odte" le%!e" %(&bu"'e""e" t 'o coce but to co)$ete o'$&ce. I' o&de& to c%&(e % $&ce $&e)u) te&e " 'eed +o& %(&bu"'e""&)" to $&oduce de&e't%ted $&oduct". Mo&eo!e&@ % ce&t%' %)ou't o+ ''o!%to' " 'ece""%&y ' co)$ett!e )%&et "tu%to'". oe!e&@ te't&oducto' o+ 'e $&oduct" c%&&e" ( '%'c%l &"". Te&e %&e %(&e%t )%'y )o&e 'e $&oduct +%lu&e" t%' 'e $&oduct "ucce""e". I't" to$c@ you ll u'de&"t%'d:

• Ty$e" o+ ''o!%to'" t%t %&e co))o'ly e)$loyed by %(&cultu&%l

%'d +ood )%&et'( &)"• A )odel o+ te 'e $&oduct de!elo$)e't $&oce"" t%t c%' be

u"ed to )%'%(e te &"" o+ ''o!%to'

• Te )%jo& +%cto&" c te'd to '6ue'ce te le!el %'d &%te o+%do$to' o+ 'e $&oduct".

&-% Inno3at2on

I''o!%to' " te d"co!e&y %'d %$$lc%to' o+ % 'e de%. T&ee ty$e"

o+ ''o!%to'" %!e bee' )$o&t%'t +o& +ood )%'u+%ctu&e&":

1. Ne )%&et'( )etod" %'d tec'ue" c o+te' 'c&e%"eo$e&%to'%l e?ce'cy

2. Ne $&oduct" o& "e&!ce" c %dd )o&e co'"u)e& !%lue to$&oduct"

*. Ne bu"'e"" o&(%'5%to'" "uc %" te coo$e&%t!e +ood$&oce""o&@ jo't !e'tu&e" betee' &)"@ o& 'e )%&et'(c%''el".

&-& T9e ne 56o./1t .e3elo58ent 56o1ess

o ould (o %bout to de!elo$ % 'e $&oduct +o& te )%&et 'o'(t%t t" "ucce"" &%te te&e " 'ot (u%&%'teed3 Ne $&oductde!elo$)e't " % "te$"e $&oce"" H/(u&e *.1. Te object!e o+ te"e"te$" " to %!od co"tly +%lu&e" by co't'u%lly &e!e'( te $&o"$ect"+o& te 'e $&oductD$&oduct de%@ %'d (!e te co)$%'y "e!e&%ld"c&ete $o't" ' t)e %t c te dec"o' to d&o$ te $&oduct %'d

!


34/90

cut te& lo""e" c%' be )%de. Te )o"t e#$e'"!e )"t%e c c%'be )%de " to l%u'c % $&oduct c ult)%tely $&o!e" u'"ucce""+ul.

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Figure 3.1: The new product development process

&-&-" Ste5s 2n ne 56o./1t .e3elo58ent

I.ea 7ene6at2on Ide%" %&e (%te&ed +&o) )%'y "ou&ce" 'clud'(:

• I'te&'%l: R= de$%&t)e't@ co))ttee o& t%" +o&ce@ to$

e#ecut!e"@ "%le" &e$&e"e't%t!e"@ $&oducto' "t%@ ote&co)$%'y e)$loyee"• E#te&'%l: "u$$le&" o& )%&et 'te&)ed%&e"@ cu"to)e&"@

co)$etto'@ +&ee l%'ce '!e'to&"@ co'"ult%'t"@ $%te't%$$lc%to'".

I.ea s16een2n7 de%" %&e e!%lu%ted %(%'"t te co)$%'y"object!e": co)$%tblty@ )%&et $ote't%l %'d '%'c%l. I+ t "co'ducted ell@ te "c&ee''( $&oce"" ll e'%ble te o&(%'5%to' todete&)'e c 'e $&oduct de%" %&e &(t +o& t. Te ue"to'&e)%''(@ %t t" $o't@ " c $&oduct" ould be &(t +o& te

cu"to)e&3

Con1e5t test2n7 Te )%' $u&$o"e o+ co'ce$t te"t" " to e"t)%tecu"to)e& &e%cto'" to % $&oduct de% be+o&e co))tt'( "ub"t%'t%l+u'd" to t. Te $&oduct de% %" to be co'!e&ted 'to % $&oductco'ce$t. It " o+te' $o""ble to de!elo$ "e!e&%l $&oduct co'ce$t" +&o) %"'(le $&oduct de%.

B/s2ness anal@s2s: I'!ol!e" %' %""e"")e't o+ te tot%l c%$t%l'!e"t)e't co"t@ te lely &etu&'o''!e"t)e't@ te $%yb%c $e&od %"ell %" u%lt%t!e '+o&)%to'. e&e %t %ll $o""ble t" "ould be

c%&&ed out be+o&e % $y"c%l $&oduct %" bee' )%'u+%ctu&ed o&ote&"e $&oduced. Te object!e %t t" "t%(e " 'ot to $&oduce$&ec"e "%le" +o&ec%"t" but to e"t%bl" te b&o%d o&de& o+ )%('tude o+ $&ob%ble "%le" !olu)e"@ &e!e'ue" %'d e#$e'"e".

Te19n21al .e3elo58ent I'!ol!e" t&%'"l%to' o+ te $&oduct co'ce$t'to % $&ototy$e o& t&%l +o&)ul%to' ' te c%"e o+ % +ood $&oduct@%')%l e%lt t&e%t)e't o& %(&oce)c%l. At %'y o'e t)e@ o'ly o'e

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$&oduct de% " lely to u'de&(o tec'c%l de!elo$)e't. It " )$o&t%'tto 'ote t%t cu"to)e& 'eed" "ould d&ect te tec'c%l de!elo$)e'to+ 'e $&oduct".

Ma6?et test2n7 8&o!de" % &e%lo&ld@ ')%&et e#$o"u&e +o&

e!%lu%t'( te $&oduct %'d t" )%&et'( $&o(&%). Tu"@ te"t)%&et'( oe&" to )$o&t%'t be'et":

• It $&o!de" %' o$$o&tu'ty to obt%' % )e%"u&e o+ % $&oduct""%le" $e&+o&)%'ce u'de& &e%"o'%bly '%tu&%l )%&et co'dto'".M%&et "%&e c%' be e"t)%ted %'d u"ed %" te b%"" o+ tedec"o' %" to ete& o& 'ot te $&oduct "ould be l%u'ced'%to'%lly.

• It $&o!de" %' o$$o&tu'ty +o& )%'%(e)e't to de't+y %'dco&&ect $&oduct o& )%&et'( "t&%te(y e%'e""e" be+o&e %'%to'%l l%u'c t%e" $l%ce.

Co88e612al2at2on A""u)'( t%t te )%&et te"t " $o"t!e@ te'+ull"c%le $&oducto'@ 't&oducto' %'d )%&et'( H.e.co))e&c%l5%to' o+ te $&oduct c%' t%e $l%ce.

&-&-% A.o5t2on an. .2/s2on 56o1esses

Ado$to' " te $&oce"" by c % co'"u)e& be('" to buy %'d u"ete $&oduct le du"o' de"c&be" o te u"e o+ % $&oduct "$&e%d"t&ou(out te $o$ul%to'.

A" "o' ' /(u&e *.2@ %do$te&" %&e (&ou$ed 'to !e:

Inno3ato6s: Tey %&e e#t&e)ely %d!e'tu&ou" %'d ll'( to t%e &""H.e. &isktakers! t 'e $&oduct". Tey te'd to be ell educ%ted@you'(e&@ bette& o '%'c%lly@ %'d %&e e#$e&e'ced.

Ea6l@ a.o5te6s Tey %do$t ''o!%to'" +%&ly e%&ly but do "o t"o)e c%&e %'d %&e te' ' % $o"to' to '6ue'ce te %do$to' be%!o&o+ ote&". Tey te'd to be o$'o' le%de&" t' te& co))u'te". Tey %&e e%!y )ed% u"e&" %'d e%!y u"e&" o+ % 'e $&oduct.

T9e ea6l@ 8a0o62t@ Tey %!od be'( te &"t o& l%"t to t&y %'''o!%to' %'d "o@ tey %do$t ce&t%' ''o!%to'" be+o&e te average $e&"o'. Tey %&e ty$c%lly )ddle cl%"" co'"u)e&" t "l(tly %bo!e%!e&%(e educ%to' %'d 'co)e le!el". e' tey %do$t te $&oduct@ t" 'o lo'(e& co'"de&ed 'e o& de&e't.

T9e late 8a0o62t@ tey %&e olde&@ )o&e co'"e&!%t!e@ %'d ty$c%lly%!e loe& t%' %!e&%(e le!el" o+ educ%to' %'d 'co)e". By te t)e

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tey %do$t te $&oduct t %" beco)e %' eco'o)c 'ece""ty o& te&e" $&e""u&e +&o) $ee& (&ou$" to %do$t.

La77a6.s Tey %&e &%te& )o&e "e$tc%l o& %!e&"e to &" t%' to"e)e'to'ed ' te +o&e(o'( (&ou$". Tey %t u'tl te $&oduct o&

$e&%$" t" tec'olo(y " ' "o)e %y $&o!e'. Te& $&oo+ u"u%llyt%e" te +o&) o+ $o"t!e e#$e&e'ce" o' te $%&t o+ to"e o %!ee%&le& %do$ted te $&oduct. L%((%&d" %&e le"" o$e' to c%'(e@ty$c%lly loe& ' "oc%l cl%""@ )o&e t&%dto'%l %'d u"u%lly %do$t te''o!%to' e' t %" t%e' o' % )e%"u&e o+ t&%dto' t"el+.

Figure 3.2: The adoption curve

T9e ee1t of 56o./1t 19a6a1te62st21s on t9e 6ate of a.o5t2on

C%&%cte&"tc" o+ %' ''o!%to' %ect t" &%te o+ %do$to'@ '%)ely:

• Relat23e a.3anta7e Te de(&ee to c te $&oduct "$e&ce!ed to be bette& t%' %lte&'%t!e" ll d&ectly '6ue'ce te"$eed o+ %do$to'. Tu"@ te t&uly ''o!%t!e $&oduct@ coe&" % )e%''(+ul be'et to co'"u)e&"@ " lely to (%'de"$&e%d %do$to' )o&e ucly t%' % P)etooQ $&oduct.

• Co85at2b2l2t@ A'y ''o!%to' c clo"ely )%tce" te t%&(et%ude'ce" !%lue" %'d e#$e&e'ce" " bette& $l%ced to be

%cce$ted e.(. d%&y (o%t"@ +e&tl5e&"• Co85le42t@ e&e te ''o!%to' " &el%t!ely d?cult to

u'de&"t%'d o& u"e %do$to' te'd" to be "lo e.(. %(&oce)c%l"• D232s2b2l2t@ I''o!%to'" c c%' be t&ed o' % l)ted b%""

te&eby l)t'( te &" ' %do$to' du"o' )uc )o&e &%$dlye.(. %(&oce)c%l" %'d 'e "eed !%&ete" %!e %' %d!%'t%(e 't%t % +%&)e& c%' %$$ly te) to % $%&t o+ "De& %c&e%(e %'dob"e&!e te &e"ult".

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• Ease of 1o88/n21at2on Te e#te't to c te &e"ult" o+u"'( %' ''o!%to' %&e ob"e&!%ble %'dDo& de"c&b%ble to ote&"(&e%tly '6ue'ce" te &%te o+ %do$to' e.(. +u'(cde" t%e eecto!e& t)e %'d te& ce)c%l %cto' " 'co)$&ee'"ble to )o"t$e%"%'t +%&)e&"@ te& %do$to' &%te" te'd to be "lo.

&-' Con1l/.2n7 6e8a6?s an. a1t232t@

I''o!%to'" ' te %(&cultu&%l )%&et'( "y"te) %'d te& "ub"eue't%do$to' &e"ult 'to (e& &e%&d". et@ te %do$to' o+ )ode&'%(&cultu&%l tec'olo(e" "uc %" 'e c&o$ !%&ete" " "tll lo ' -ub-%%&%' A+&c% %'d tu" e#$l%''( lo %(&cultu&%l $&oduct!ty te&e.c +%cto&" '6ue'ce +%&)e& %do$to' o+ %(&cultu&%l tec'olo(e" 't" $%&t o+ te o&ld3 Mo&e 'te&e"t'(ly@ te %d!e't o+ botec'olo(y%" &ece!ed )#ed &e%cto'" +&o) bot de!elo$ed %'d de!elo$'(o&ld. Re%d c%&e+ully t&ou( te c%"e "tudy %bout (e'etc%llye'('ee&ed +ood $&o!ded belo %'d %&(ue %" to ete& t " &"y o&'ot &"y to co'"u)e (e'etc%lly e'('ee&ed +ood".

Case Genet21all@ En72nee6e. Foo. T9e F/t/6e 9as be1o8e t9e P6esent

It )%y be el$+ul to 'dc%te e&e 'e $&oduct de!elo$)e't ' +ood" " e%d'(. I' do'("o@ t ll be "ee' t%t te $%ce %'d d&ecto' o+ ''o!%to' " "uc t%t co)$%'e" c%''ot%o&d to be co)$l%ce't. Ge'etc%lly e'('ee&ed +ood ll "oo' be ' te "u$e&)%&et" o+ A)e&c% %'d ll be%!%l%ble to co'"u)e&" %&ou'd te o&ld "oo' %+te&%&d". A)e&c%" /ood %'d =&u(Ad)'"t&%to' %" %l&e%dy co'"e'ted to boe'('ee&ed +ood" be'( "old ' &et%l outlet" %'dtout %'y "$ec%l l%bel'(. Tu"@ te co'"u)e& )%y 'ot e!e' be %%&e t%t % $%&tcul%&

+ood " boe'('ee&ed "'ce t ll@ ' %$$e%&%'ce@ loo de'tc%l to te)" t c eD"e%" lo'( bee' +%)l%&. Al&e%dy ' te $$el'e %&e to)%toe" t%t dec%y o'ly !e&y "lolybec%u"e % $%&tcul%& (e'e %" bee' &e!e&"ed@ $ot%toe" t%t %!e %d cce' o& "l (e'e"%dded to &e""t d"e%"e@ c%t" t%t %!e bee' 'jected t t&out (e'e" to $&o)ote (&ot@"oy be%'" t%t c%' be t&e%ted t e&bcde(t'( b%cte&% %'d e#$e&)e't" %&e o'(o'(' c )%5e t &e 6y (e'e". Al"o u'de& de!elo$)e't %&e $ot%toe" c "o% u$ le""+%t e' +&ed@ e%t t%t &e""t" $e"t" %'d ol $&oduc'( $l%'t" t%t +e'd o '"ect" byte)"el!e". Te"e )(t "ee) le "o)et'( +&o) "ce'ce cto' but tey %&e % &e%lty.


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(o'( $&oce"" c co't'ue" %lo'( % l'e%& $%t o+ de!elo$)e't +o& % le but te' t%e"% 'e %'d o+te' olly u'e#$ected tu&' ' t" d&ecto'.

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Rea.2n7s

1. C&%+o&d@ I. M. 1>>7. A(&cultu&%l %'d /ood M%&et'(M%'%(e)e't. Ro)e: /ood %'d A(&cultu&e

,. B%t5@ EJ-: K.J. 8ete&"@ %'d . J%'""e' H1>>>@ Te '6ue'ce o+

tec'olo(y c%&%cte&"tc" o' te "$eed %'d cel'( o+ %do$to'@ #gricultural. $conomics 21H2. 121 1*0

4. Bye&lee@ = %'d E. =e 8ol%'co H1>;9@ /%&)e&" -te$"e Ado$to'o+ Tec'olo(c%l 8%c%(e": E!de'ce +&o) te Me#co Alt$l%'o. #merican "ournal of #gricultural $conomics 9; H*: 420427.

9. C%)e&o'@ L.A. H1>>>@ Te I)$o&t%'ce o+ Le%&''( ' te%do$to' o+ (eld'( %&ety -eed"@ #merican "ournal of #gricultural economics. ;1:;*>,.

7. /ede&@ G.@ R.E. Ju"t@ %'d =. Flbe&)%' H1>;4@ Ado$to' o+ A(&cultu&%l I''o!%to'" ' =e!elo$'( Cou't&e"@ A -u&!ey@$conomic %evelopment and &ultural &hange *1: 2442>;.

;. K&"tj%'"o'.8@ I. >>@ Te )$%ct o+ $e&ce$to' %'dote& +%cto&" o' te %do$to' o+ %(&cultu&%l tec'olo(y ' te

Mo&et %'d J&u o&ed% Hd"t&ct o+ Eto$%@ #gricultural$conomics 21: 204219.

10. -t&%u""@ J.@ M. B%&bo"%@ -. Te#e&%@ =. To)%"@ %'d R.Go)e"@ J&. H1>>1@ Role o+ Educ%to' %'d e#te'"o' ' te%do$to' o+ tec'olo(y: % "tudy o+ u$l%'d &ce %'d "oybe%'+%&)e&" ' Ce't&%le"t B&%5l@ #gricultural $conomics 4: *,1*4>.

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TOPIC ' P6o./1t 8ana7e8ent

'-" Int6o./1t2on

A" "ee' ' te 't&oducto&y to$c@ o'e o+ te )o"t )$o&t%'t co'ce$t"' )%&et'( " t%t o+ te )%&et'( )# co)$&"'( o+ te +ollo'(ele)e't": te $&oduct@ $&c'(@ $l%ce Hd"t&buto'@ %'d $&o)oto'.Alte&'( o'e o& )o&e o+ te"e ele)e't" c%'(e" te '%tu&e o+ te)%&et oe&'(. Te&e+o&e@ te c%lle'(e to )%&et'( )%'%(e)e't "to 'd te )# c ")ult%'eou"ly o$t)5e" cu"to)e& utlty %'del$" te o&(%'5%to' %ce!e t" object!e". I' te $&eced'( to$c@you %!e 'o' o $&oduct ''o!%to' t%e" $l%ce. oe!e&@ co)'(u$ t % 'e $&oduct " o'e t'( %'d "ucce""+ully )%'%('( t "%'ote&. Te&e+o&e@ te object!e" o+ t" to$c %&e to )%e you:

• U'de&"t%'d te t&ee le!el" %t c % $&oduct o& "e&!ce c%' be)%&eted

• ="t'(u" betee' % $&oduct )# %'d % $&oduct l'e

• A%&e o+ te %d!%'t%(e" %'d d"%d!%'t%(e" o+ b&%'d'(%(&cultu&%l $&oduct"

• A$$&ec%te %ll te dec"o'" c %!e to be )%de t &e"$ectto b&%'d'( %(&cultu&%l $&oduct"

'-% T9e 56o./1t

A" "o' ' /(u&e 4.1 belo@ $&oduct" c%' be )%&eted o' t&eele!el":

• T9e 1o6e 56o./1t. Te b%"e le!el " te core 'ene(t c@ 'e""e'ce@ " %t te cu"to)e& &e%lly buy". It " $&oduct!e tot' o+ % $&oduct %" )e&ely te )ec%'") by c te be'ette cu"to)e& " de)%'d'( " del!e&ed. /o& e#%)$le % +%&)e&doe"'t buy )$&o!ed "eed" o& +e&tl5e&O e buy" e#t&% (&%' '

te "to&e. e'ce te&e " 'eed to 'o %t te cu"to)e& "buy'( %'d )%&et to"e be'et"@ 'ot $&oduct".• T9e tan72ble 56o./1t. Te co&e be'et %" to be co'!e&ted

'to % tangi'le product to beco)e te c%&&e& o+ te be'et.E#%)$le" o+ t%'(ble $&oduct" %&e: co&' ol@ cotto' "&t"@ $oult&y+eed"@ "eed $l%'te&" %'d )e%t $e". T%'(ble $&oduct" %!e !eco))o' c%&%cte&"tc": % u%lty le!el@ +e%tu&e"@ "tyl'(@ % b&%'d'%)e %'d $%c%('(. Te"e too c%' be )%&eted to $ote't%l

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cu"to)e&" + tey de&e't%te te $&oduct +&o) t%t o+co)$etto&"@ "o lo'( %" t" de&e't%to' " bot )e%''(+ul%'d !%lued by co'"u)e&".

• T9e a/78ente. 56o./1t. I'!ol!e" oe&'( %ddto'%l "e&!ce"%'d be'et" to de&e't%te % $&oduct +&o) t%t o+ co)$etto&"

to (!e t % co)$ett!e ed(e. /o& e#%)$le@ )$&o!ed "eed" c%'be %u()e'ted t %' %d!"o&y "e&!ce to +%&)e&" %'d$&oce""o&". -)l%&ly@ te %(&oce)c%l )%'u+%ctu&e& o buld"' % )ete&'( de!ce 'to " $&oduct" $%c%('( " %u()e't'(" $&oduct.

Figure ).1: The product concept

'-& T9e 56o./1t 824

A $&oduct )# " %' %""o&t)e't o+ ty$e" o+ $&oduct" %'d $&oduct l'e".A $&oduct l'e " % "e&e" o+ &el%ted $&oduct". Mo&e "ucce""+ul%(&bu"'e""e" %!e % &e%"o'%bly b&o%d $&oduct $o&t+olo +o& te+ollo'( &e%"o'":

• I'e&e't "e%"o'%lty o+ %(&cultu&%l $&oduct"O be tey '$ut" o&out$ut".

• G%' e't&y to te c%''el" o+ d"t&buto'. Mo"t d"t&buto&" ll

%'t to %'dle % $&oduct &%'(e &%te& t%' % "'(le te) ' o&de&to be %ble to "%t"+y % 'u)be& o+ cu"to)e& 'eed" o' te occ%"o'o+ % "'(le !"t to te "%le" outlet.

• G%' c&edblty %" % "ou&ce o+ 'oled(e o' $&oduct &%'(ee"$ec%lly e&e $&oduct" %&e %u()e'ted by tec'c%l %d!ce@ %"' te c%"e o+ %(&cultu&%l eu$)e't@ %(&oce)c%l" %'d ote&%(&cultu&%l '$ut".

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'-' P6o./1t l2ne e4tens2ons

Te dec"o' %" to ete& % (!e' $&oduct l'e "ould be e#te'ded "% "t&%te(c ""ue. Te&e %&e "e!e&%l &e%"o'" y &)" ould co'"de&%dd'( to te 'u)be& o+ $&oduct l'e" Hb&e%dt %'dDo& to te 'u)be&

o+ !%&%'t" Hde$t t' % $&oduct )#. Tey %&e:

• By e#te'd'( te &%'(e o+ $&oduct" oe&ed@ % co)$%'y )(t(%' e't&y to % 'e "e()e't o+ te )%&et.

• It )%y be 'ece""%&y to %tt&%ct d"t&buto&" o %&e 'te&e"ted 'oe&'( % +ull $&oduct l'e.

• Te bu"'e"" )%y %!e "$%&e $&oduct!e c%$%cty %'d " to'c&e%"e te co't&buto' to #ed co"t" by 'c&e%"'( te le!el o+ c%$%cty utl5%to'.

• Te&e )%y be % 'eed to b&'( ' $&oduct" to "u$$o&t ote&

$&oduct l'e"@ o& %" $%&t o+ te& co)$ett!e "t&%te(y tey %'tto ll (%$" ' te )%&et c ote&"e )(t (!e ote&" %+ootold ' te& )%&et.

%te!e& te )ot!%to' +o& e#te'd'( te $&oduct l'e o& )#@ t %"to be &eco('5ed t%t "u$$ly'( )o&e $&oduct" Ho& $&oduct !%&%to'"c%&&e" co"t" %" ell %" o$$o&tu'te". Te +ollo'( %&e "o)e o+ teco"t" o& &"" %""oc%ted t $&oduct l'e $&ol+e&%to':

• /&%()e't%to' o+ te o!e&%ll )%&et'( eo&t %'d dluto' o+ teb&%'d )%(e.

• I'c&e%"ed $&oducto' co)$le#ty &e"ult'( +&o) "o&te&$&oducto' &u'" %'d )o&e +&eue't l'e c%'(e o!e&".

• Mo&e e&&o&" ' +o&ec%"t'( de)%'d %'d 'c&e%"ed lo("tc"co)$le#ty@ &e"ult'( ' 'c&e%"ed &e)'%'t" %'d l%&(e& bue&'!e'to&e" to %!od "tocout".

• I'c&e%"ed "u$$le& co"t" due to &u" o&de&" %'d te '%blty tobuy te )o"t eco'o)c u%'tte" o+ &% )%te&%l".

• ="t&%cto' o+ te &e"e%&c %'d de!elo$)e't (&ou$ +&o) 'e$&oduct de!elo$)e't.

Tu"@ te $&oduct )# )u"t be )%'%(ed c%&e+ully. At %'y $o't@ te

$&oduct o& )%&et'( )%'%(e& )u"t 'o te "%le" H' !olu)e@ !%lue@%'d $e&ce't%(e te&)" %'d $&ot +o& e%c $&oduct l'e %'d te).-eco'dly@ )%'%(e)e't )u"t be %%&e o+ o e%c $&oduct t' te$o&t+olo " $o"to'ed %(%'"t to"e o+ co)$etto&".

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'-( P6o./1t l2ne .elet2ons

e&e te)" t' % $&oduct l'e 'o lo'(e& %!e % cle%& &ole@ t "ouldbe ' te lo'( te&) 'te&e"t o+ te o&(%'5%to' to ete& %&!e"t o&d!e"t te)"el!e" o+ te"e te)". Tec'ue" "uc %" te Bo"to'

Co'"ult'( G&ou$ HBCG G&ot-%&e M%t&# H"ee A%e& H2004 +o&det%led de"c&$to' o+ te BCG )%t&# c%' el$ de't+y $&oduct" t%tou(t to be &e)o!ed +&o) te $&oduct l'e.

'-) B6an.2n7 56o./1ts

%t " % b&%'d3 o@ y@ %'d e' "ould $&oduct" be b&%'ded3 Ab&%'d " % '%)e@ te&)@ "('@ "y)bol o& de"('@ o& % co)b'%to' o+te) 'te'ded to e'cou&%(e $&o"$ect!e cu"to)e&" to de&e't%te %$&oduce&" $&oductH" +&o) to"e o+ co)$etto&".

'-)-" T9e a.3anta7es an. .2sa.3anta7es of b6an.2n7

B&%'d'( c%' el$ co'"u)e&" ' % 'u)be& o+ %y":

• B&%'d '%)e" tell te co'"u)e& "o)et'( %bout te $&oduct"c%&%cte&"tc" %'d %""u&e te) t%t + tey buy te "%)e b&%'dtey ll (et te "%)e $&oduct c%&%cte&"tc" e%c t)e.

• A" te 'u)be& o+ co)$et'( $&oduct" 'c&e%"e" b&%'d'( c%''c&e%"e te "o$$e&" e?ce'cy by el$'( te) to de&e't%tebetee' $&oduct" %'d de't+y t%t c be"t )eet" te&

'eed".• B&%'d '%)e" %l"o el$ d&% co'"u)e&" %tte'to' to 'e

$&oduct" c )(t )eet@ o& bette& )eet@ te& 'eed".

8&oduce&" %'d "u$$le&" c%' %l"o be'et +&o) b&%'d'( te& $&oduct"' te +ollo'( %y":

• B&%'d'( )%e" t e%"e& +o& $&oduce&" o& "elle&" to )%tc te&$&oduct" to te cu"to)e&" 'eed".

• A d"t'ct!e "elle&" b&%'d '%)e %'d t&%de)%& )%e" t

$o""ble to le(%lly $&otect u'ue $&oduct +e%tu&e".• B&%'d'( %l"o $&o!de" % b%"" +o& 'o'$&ce co)$etto' by

&e)o!'( % $&oduct +&o) te co))odty c%te(o&y.• M%&et "e()e't%to' %'d t%&(et )%&et'( %&e )%de )o&e

eect!e bec%u"e b&%'d'( e'%ble" te $&oduce& to "e&!e"e$%&%te )%&et" t "e$%&%te $&oduct".

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oe!e&@ te&e %&e %l"o $ote't%l d"%d!%'t%(e" %tt%ced to b&%'d'(@+o& bot $&oduce&" %'d co'"u)e&".

Co'"u)e&":

1. *igher prices: I' )o"t c%"e" b&%'ded $&oduct" c%&&y (e& &et%l$&ce" t%' te& (e'e&c eu!%le't". I' $%&t@ te (e& $&ce "e#$l%'ed by te %ddto'%l $&oducto' co"t" %'d )%&et'(e#$e'dtu&e" 'cu&&ed by te "u$$le& ' de!elo$'( %'d"u$$o&t'( te b&%'d. Te (e& $&ce "o)et)e" %l"o c%&&e" %$&e)u) +o& te u'ue be'et" %'dDo& +e%tu&e" o+ te b&%'d.ete& o& 'ot te"e (e& $&ce" c%' be ju"ted de$e'd" o'te cu"to)e&" $e&ce$to' o+ te %dded !%lue eD"e &ece!e" '&etu&' +o& te $&ce $&e)u).

2. +rand proliferation: l"t co'"u)e&" (e'e&%lly le to %!e %de(&ee o+ coce e' buy'( $&oduct"@ )eet'( t" 'eed doe"

e'cou&%(e % $&ol+e&%to' o+ $&oduct". Te&e " % &e%l d%'(e& t%t"o )%'y b&%'d" %&e o' oe& t%t te co'"u)e& beco)e"co'+u"ed tu" 'e(%t'( "o)e o+ te be'et" o+ b&%'d'()e'to'ed $&e!ou"ly@ e"$ec%lly 'c&e%"ed "o$$'( e?ce'cy. Te d%'(e&" o+ b&%'d $&ol+e&%to' %&e o'ly &e%l5ed e' tede&e'ce" betee' b&%'d" %&e ete& )%&('%l o& %&e 'ot)e%''(+ul to te co'"u)e& %'d yet@ te "u$$le& co't'ue" to"u$$o&t te b&%'d &%te& t%' let )%&et +o&ce" dct%te t%t tou(t to be deleted +&o) te o&(%'5%to'" $&oduct $o&t+olo.

8&oduce&" o& "u$$le&":

1. *igher costs: B&%'ded $&oduct" te'd to &eu&e e%!y$&o)oto'%l "u$$o&t %'d )o&e "t&'(e't u%lty co't&ol to e'"u&ete co'""te'cy o+ te b&%'d. Mo&eo!e&@ bot $&oducto' %'d)%&et'( co"t" %&e (e& e&e "e!e&%l b&%'d" o+ % $&oductty$e %&e oe&ed &%te& t%' % "'(le $&oduct. oe!e&@ + teb&%'d " t&uly d"t'ct!e %'d oe&" $ote't%l buye&" be'et"%'dDo& +e%tu&e" c tey !%lue@ te' %ddto'%l co"t" c%'u"u%lly be &eco!e&ed t&ou( $&e)u) $&c'(.

2. #dverse pu'licit,: Te &el%to'"$ betee' te $&oduct %'d tee'te&$&"e c $&oduce" %'dDo& )%&et" t " %ll te )o&e

%$$%&e't e' t%t $&oduct " b&%'ded. B&%'d" c +%l ' te)%&et $l%ce c%' $l%ce % "t()% o' %' o&(%'5%to' c )%e"d"t&buto&" %'d co'"u)e&" c%utou" %bout %'dl'( o&$u&c%"'( 'e $&oduct"Db&%'d" c t%t o&(%'5%to'"ub"eue'tly l%u'ce". It " +o& t" &e%"o' t%t $&e)%&ette"t'( )u"t be %ll te )o&e &(o&ou" ' te c%"e o+ b&%'ded$&oduct".

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'-)-% B6an.2n7 .e12s2ons

Te&e %&e to b%"c $&oduct c%&%cte&"tc" c ll el$ dete&)'eete& b&%'d'( " +e%"ble.

• It )u"t be $o""ble to de't+y %t le%"t o'e u'ue d)e'"o' 'te $&oduct. T" c%' be ' te co&e be'et@ te $&oduct +e%tu&e"%'dDo& ' te %u()e'ted $&oduct. Mo&eo!e&@ te"e u'ue "ell'($&o$o"to'" )u"t be )e%''(+ul to te t%&(et )%&et. Te&e "lttle $o't ' "ee'( to b&%'d % )%5e "eed + te o'lyd"t'(u"'( +e%tu&e " t%t t " dyed blue@ u'le"" te )%&etd"$l%y" % de"&e +o& blue )%5e "eed.

• It )u"t be $o""ble to co'""te'tly &e$lc%te te d"t'(u"'(c%&%cte&"tc" o+ te b&%'d.

Te dec"o'" to be )%de ' b&%'d )%'%(e)e't %&e )%'y. /(u&e ,.2

belo 'dc%te" te )%' o'e". It c%' be "ee' t%t %!'( )%de te't%l dec"o' to b&%'d te $&oduct te&e %&e te' "e!e&%l ote&&el%ted dec"o'" to )%e@ te )o"t )$o&t%'t o+ c %&e:

B6an. one6s925 Te&e %&e t&ee $o""blte". Te $&oduct c%' c%&&y% )%'u+%ctu&e&" b&%'d '%)e@ t%t o+ % )ddle)%' Ho+te' te&)ed %$&!%te b&%'d@ % d"t&buto&" b&%'d o& % de%le&" b&%'d o& te)%'u+%ctu&e& )(t $ut "o)e o+ te $&oduct u'de& "De& o' '%)e%'d "o)e u'de& t%t o+ % )ddle)%'.

Figure ).2: +randing decisions

B6an. /al2t@ e' de!elo$'( % b&%'d@ te )%'u+%ctu&e& %" tocoo"e % u%lty le!el t%t ll "u$$o&t te b&%'d" $o"to' ' tet%&(et )%&et. -o)e )%&et" %&e )o&e u%lty co'"cou" t%' ote&"

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%'d e!e' t' te "%)e )%&et "o)e co'"u)e&" ll $&e+e& $&e)u)b&%'d" H.e. ( u%lty@ ( $&ced %'d ote&" ll coo"e eco'o)yb&%'d".

B6an. na8e st6ate7@ 8&oduce&" o b&%'d te& $&oduct" %l"o %!e

to decde %t b&%'d '%)e "t&%te(y to $u&"ue. Te coce" 'clude:

• I'd!du%l b&%'d '%)e"• A bl%'et +%)ly '%)e +o& %ll $&oduct"• Co)$%'y b&%'d'(.

I+ % co)$%'y %" % d"t'ct!e $&oduct t %ctu%l o& $ote't%l "5e%blede)%'d t " $&ob%bly be"t to de!elo$ % "e$%&%te b&%'d de'tty +o&e%c "uc $&oduct. U"'( % bl%'et +%)ly '%)e &educe" te co"t" o+'t&oduc'( te $&oduct bec%u"e te&e " 'o 'eed to c&e%te b&%'d&eco('to' o& $&e+e&e'ce. Mo&eo!e&@ + te )%'u+%ctu&e&" '%)e "

"t&o'( te $&oduct ll %ce!e % ce&t%' le!el o+ ))ed%te%cce$t%'ce. e' % co)$%'y $&oduce" % &%'(e o+ ute de&e't$&oduct" t " be"t to u"e +%)ly b&%'d '%)e" +o& e%c $&oduct l'e./'%lly@ "o)e )%'u+%ctu&e&" elect to $&e+%ce %ll b&%'d '%)e" t teco)$%'y '%)e to be'et +&o) te c%&&yo!e& eect o+ %' e"t%bl"ed%'d t&u"ted co&$o&%te de'tty. T' o+ e#%)$le" t%t +%ll u'de& e%co+ te t&ee b&%'d '%)e coce".

B6an. 5os2t2on2n7 an. 6e5os2t2on2n7 Te $o"to' o+ % $&oduct 'te )%&et $l%ce " )ultd)e'"o'%l ' '%tu&e. /o& e#%)$le@ o&%'(e6e"ed $ot%toe" could be $o"to'ed ' o'e o+ "e!e&%l )%&et". It could

be $&o)oted %" %' '+%'t +ood o& % e%lt +ood bec%u"e o+ te$&e"e'ce o+ !t%)' A.

B6an. e4tens2on o55o6t/n2t2es A b&%'d e#te'"o' "t&%te(y " o'ee&e %' %l&e%dy "ucce""+ul b&%'d '%)e " u"ed to l%u'c 'e o&)oded $&oduct".

M/lt2b6an.2n7 A )ultb&%'d "t&%te(y " o'e e&e te $&oduce&de!elo$" to o& )o&e b&%'d" ' te "%)e $&oduct c%te(o&y. T" "u"e+ul ' )%&et "e()e't" e&e te&e " % (ood de%l o+ b&%'d"tc'( %)o'( co'"u)e&".

Note B&%'d '%)e" co))u'c%te de'ot%t!e %'dDo& co''ot%t!e)e%''(. =e'ot%t!e )e%''( " te lte&%l %'d e#$lct )e%''( o+ %'%)e. Co''ot%t!e )e%''( " te )%(e&y c te b&%'d '%)eco'ju&e" u$ ' te )'d o+ te $&o"$ect!e buye&. e'ce@ % b&%'d '%)e"ould:

• -u((e"t "o)et'( %bout te $&oduct" be'et" %'d u%lte"

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• Be e%"y to $&o'ou'ce@ &eco('5e %'d &e)e)be&• Be d"t'ct!e %'d 'ot e%"y to co'+u"e t ote&"• T&%'"l%te e%"ly 'to +o&e(' l%'(u%(e" + e#$o&ted.

'-* Con1l/.2n7 6e8a6?s an. a1t232t@

Co'"u)e& $e&ce!ed be'et" %'d coce o+ '%)e %&e eu%lly)$o&t%'t +%cto&" +o& te "ucce"" o+ % b&%'d ' te )%&et. It doe" 'ot)%tte& o (ood % $&oduct" b&%'d '%)e "@ t ll 'ot co)$e'"%te +o&'%deu%ce" ' t%t $&oduct. -)l%&ly@ %' u')%('%t!e o&'%$$&o$&%te b&%'d '%)e c%' %d!e&"ely %ect te $&o"$ect" o+ % (ood$&oduct. A cl%""c c%"e o+ t" " te Au"t&%l%' 8'l%dy %$$le"$&o!ded belo. Re%d t c%&e+ully %'d d&% "o)e le""o'" t%t c%' bele%&'t by %(&bu"'e"" &)" 'te'd'( to b&%'d te& $&oduct".

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Case P2n?la.@ A55les

Te 8'l%dy %$$le !%&ety %" de!elo$ed ' Au"t&%l% %'d 't&oduced ' 1>>*.-'ce t" l%u'c te 'e b&%'d %" bee' %ce!'( $&e)u) $&ce" ' e#$o&t )%&et". Te t&%de)%& " &e("te&ed %'d t" o'e&" "ee to %$$o't lce'"ed d"t&buto&"

t' e%c o+ te& e#$o&t )%&et". I' t" %y tey %&e %ble to t(te' te& co't&olo+ te )%&et'( o+ te $&oduct. t % "t&o'( b&%'d de'tty %'y be'et" (%'ed+&o) be'( &"t ' te )%&et %cc&ue to te b&%'d. E!e' + co)$et'( (&oe&" e!e'tu%lly &e$lc%te te !%&ety %" o+te' %$$e'" ' te+&ut %'d !e(et%ble 'du"t&e"@ te"e c%' o'ly be 't&oduced u'de& %'ote& '%)e %'d"o ould 'ot be'et +&o) te '!e"t)e't o+ te Au"t&%l%' o'e&" ' te '%)e (!e'to te 'e !%&ety.

Rea.2n7s

1. Kotle&@ 8. %'d Kelle&@ K. L. 2009. M%&et'( M%'%(e)e't. Tel+tedto'. 8&e'tce %ll@ E'(leood Cl"@ N.J.@ c%$te&" >12.

2. C&%+o&d@ I. M. 1>>7. A(&cultu&%l %'d /ood M%&et'(M%'%(e)e't. Ro)e: /ood %'d A(&cultu&e >4. M%&et'( M%'%(e)e't:K'oled(e %'d -ll". /ou&t edto'. I&'@ c%$te&" 97.

7. olt@ =.B. H2002@ y do b&%'d" c%u"e t&ouble3 A d%lectc%lteo&y o+ co'"u)e& cultu&e %'d b&%'d'(@ "ournal of &onsumer-esearch 2>H1: 70>0.

;. Lecle&c@ /.@ B.. -c)tt@ %'d L. =ube H1>>,@ /o&e(' b&%'d'(%'d t" eect" o' $&oduct $e&ce$to'" %'d %tttude"@ "ournal ofMarketing -esearch *1H2:29*270.

>. E&de)@ T. H1>>;@ A' e)$&c%l %'%ly"" o+ u)b&ell% b&%'d'(@ "ournal of Marketing -esearch *4H*:**>*41.

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10. %&&"@ /. %'d L. Ce&'%to'y H2001@ Co&$o&%te b&%'d'(%'d co&$o&%te b&%'d $e&+o&)%'ce@ $uropean "ournal of Marketing*4H*D,:,,1,49.

11. Kelle&@ K.L. %'d =.R. Le)%'' H2009@ B&%'d" %'d b&%'d'(:

Re"e%&c 'd'(" %'d +utu&e $&o&te"@ Marketing cience 24H9:7,074>.

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TOPIC ( Cons/8e6 be9a32o/6 an. 8a6?etse78entat2on

(-" Int6o./1t2on

I' te $&e!ou" to$c@ t " cle%&ly e!de't t%t "ucce""+ul $&oduct)%'%(e)e't &eu&e" %(&bu"'e"" &)" to be co'"u)e&o&e'ted.Be+o&e e loo %t o $&oduct" %&e $&ced ' te )%&et@ t " )$o&t%'t+o& u" to &"t e#%)'e co'"u)e& be%!o& %'d le%&' o t " "uc %$oe&+ul tool t%t c%' be u"ed ' "e()e't'( )%&et". A+te& "tudy'(t" to$c you ll be %ble to:

• =e!elo$ %' u'de&"t%'d'( o+ te 'te&'%l %'d e#te&'%l '6ue'ce"c "%$e te be%!ou& o+ co'"u)e&"

• Ide't+y te d"c&ete "t%(e" o+ te buy'( $&oce"" u'de&t%e' byco'"u)e&"

• A$$&ec%te o %' u'de&"t%'d'( o+ co'"u)e& be%!ou& c%' beu"ed ' )%&et "e()e't%to' %'d t%&(et )%&et'(

(-% Cons/8e6 be9a32o/6

%t do you t' co'"ttute" co'"u)e& be%!ou&3 Co'"u)e&

be%!ou& )%y be de'ed %" te %ct!te" %'d dec"o' $&oce""e"'!ol!ed ' coo"'( betee' %lte&'%t!e"@ $&ocu&'( %'d u"'($&oduct" o& "e&!ce". Te be%!ou& o+ co'"u)e&" " te $&oduct o+ tob&o%d c%te(o&e" o+ '6ue'ce@ '%)ely: e'do(e'ou" +%cto&" H.e. to"e'te&'%l to te 'd!du%l %'d e#o(e'ou" +%cto&" H.e. to"e e#te&'%l tote 'd!du%l.

En.o7eno/s fa1to6s

• Nee.s an. 8ot23es: e' %' 'd!du%l &eco('5e" t%t eD"e%" % 'eed@ t" %ct" to t&((e& % )ot!%ted "t%te.

• Pe61e5t2ons: A&e te $&oce"" by c %' 'd!du%l "elect"@o&(%'5e"@ %'d 'te&$&et" '+o&)%to' '$ut" to c&e%te %)e%''(+ul $ctu&e o+ te o&ld.

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• Lea6n2n7 56o1esses: Muc o+ u)%' be%!ou& " le%&'ed %'dte e!de'ce o+ le%&''( " % c%'(e ' % $e&"o'" be%!o& %" %&e"ult o+ e#$e&e'ce.

• Att2t/.es: A&e % le%&'ed $&ed"$o"to' to &e"$o'd ' %

co'""te'tly +%!o&%ble o& u'+%!o&%ble )%''e& t &e"$ect to %(!e' object.

• Pe6sonal2t@ t@5e: Le %tttude"@ $e&"o'%lty ty$e" He.(. "el+

co'de't@ 'e&!ou"@ 't&o!e&t@ e#t&o!e&t@ %)btou"@ bold etc. "e&!e to b&'( %bout % co'""te'cy ' te be%!o& o+ %''d!du%l t &e"$ect to "De& e'!&o')e't.

• Self;28a7e: It " % +u"o' o+ o % $e&"o' ould de%lly le tobe@ te %y % $e&"o' bele!e" ote&" "ee )De& %'d o %$e&"o' %ctu%lly ".

E4o7eno/s fa1to6s

• C/lt/6e It " de'ed %" te co)$le# o+ !%lue"@ de%"@ %tttude"%'d ote& )e%''(+ul "y)bol" c&e%ted by $eo$le to "%$eu)%' be%!o& %'d te %&t+%ct" o+ t%t be%!ou& %" tey %&et&%'")tted +&o) o'e (e'e&%to' to te 'e#t.

• So12al 1lass o6 stat/s: A&e (&ou$" o+ $eo$le b%"ed o' 'co)e@

occu$%to'@ educ%to' %'d l+e"tyle.

• Refe6en1e 76o/5s: Te (&ou$H" to c % $e&"o' belo'("e#e&t" %' '6ue'ce u$o' te be%!ou&@ bele+" %'d %tttude" o+t" )e)be&" by co))u'c%t'( 'o&)" %'d e#$ect%to'" %boutte &ole" tey %&e to %""u)e.

• Fa82l@ 8e8be6s925: It " %'ote& &e+e&e'ce (&ou$ %'d o+te'+o&)" % dec"o' )%'( u't t &e"$ect to ou"eold$u&c%"e".

(-& T9e 1ons/8e6 b/@2n7 .e12s2on 56o1ess

Te co'"u)e& buy'( dec"o' $&oce"" '!ol!e" 4 "t%(e":

"- P6oble8 o6 nee. 6e1o7n2t2on Te buy'( $&oce"" be('"t % &eco('to' o' te $%&t o+ %' 'd!du%l o& o&(%'5%to't%t tey %!e % $&oble) o& 'eed e.(. te +%&)e& &eco('5e"

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t%t eD"e " %$$&o%c'( % 'e cult!%to' "e%"o' %'d&eu&e" "eed.

%- Info68at2on sea619 I'+o&)%to' (%te&'( )%y be $%""!eo& %ct!e. 8%""!e '+o&)%to' (%te&'( occu&" e' %'

'd!du%l o& (&ou$ ")$ly beco)e" )o&e %tte't!e to %&eco('5ed "oluto' to % (!e' 'eed. I' ote& c&cu)"t%'ce"te 'd!du%l " $&o%ct!e &%te& t%' &e%ct!e t &e"$ect to'+o&)%to'.

&- E3al/at2on of alte6nat23es Te $&oce"" o+ e!%lu%t'(%lte&'%t!e" 'ot o'ly de&" +&o) cu"to)e& to $&o"$ect!ecu"to)e& but te 'd!du%l ll %l"o %do$t de&e't $&oce""e"' %cco&d%'ce t te "tu%to'. It " lely t%t e' )%'( jud()e't" cu"to)e&" ll +ocu" o' to"e $&oduct %tt&bute"%'d +e%tu&e" t%t %&e )o"t &ele!%'t to te& 'eed" %t % (!e'

$o't ' t)e.

'- P/619ase .e12s2on At te e!%lu%to' "t%(e te $&o"$ect!ecu"to)e& ll %!e %&&!ed %t % jud()e't %bout "De&$&e+e&e'ce %)o'( te e!oed "et %'d %!e +o&)ed %$u&c%"e 'te'to'. oe!e&@ to +%cto&" c%' 'te&!e'ebetee' te 'te'to' %'d te $u&c%"e dec"o': te %tttudeo+ ote&" %'d u'%'tc$%ted e!e't". /o& e#%)$le@ % +%&)e&)%y "t%te %' 'te'to' to $u&c%"e % )ec%'c%l t&e"e&t' te 'e#t tel!e )o't" but e' "De& )$lct%""u)$to' o+ % (ood %&!e"t " 'ot &e%l5ed@ due to d&ou(t@

te $u&c%"e o+ te )%c'e " $o"t$o'ed.

(- Post;5/619ase be9a32o6 %!'( $&ocu&ed te $&oduct tecu"to)e& ll e#$e&e'ce ete& "%t"+%cto' o& d""%t"+%cto't "De& $u&c%"e. Te le!el o+ "%t"+%cto' o&d""%t"+%cto' " l%&(ely % +u'cto' o+ te co'(&ue'ce betee'te buye&" e#$ect%to'" o+ te $&oduct %'d te $&oduct"$e&ce!ed $e&+o&)%'ce. I+ te $&oduct" $e&ce!ed$e&+o&)%'ce ete& )%tce" o& e#ceed" t" e#$ected$e&+o&)%'ce te' te buye& " lely to +eel (ly "%t"ed%'d !ce!e&"%.

(-' Ma6?et se78entat2on

C%' you de't+y %'d '%)e %'y o'e )%&et t%t " "e()e'ted3 o "te )%&et "e()e'ted3 A&e te&e %'y %d!%'t%(e" Ho& )%y bed"%d!%'t%(e" o+ "e()e't'( te )%&et3 M%&et "e()e't%to' "

"!


55/90

de'ed %" te $&oce"" o+ de't+y'( %'d te' "e$%&%t'( % tot%l)%&et 'to $%&t" "o t%t de&e't )%&et'( "t&%te(e" c%' be u"ed +o&e%c $%&t. Te tec'ue o+ "e()e't'( % )%&et el$" %' e'te&$&"edecde o +%& t c%' (o ' t%lo&'( t" $&oduct o& "e&!ce to te 'eed"o+ d"t'ct (&ou$" o+ cu"to)e&" H'd!du%l o& co))e&c%lD'du"t&%l.

(-'-" Bases fo6 8a6?et se78entat2on

M%&et "e()e't" %&e b%"ed o' cu"to)e& o& $&oduct c%&%cte&"tc". Ty$c%l $&oduct c%&%cte&"tc" %&e de&e't "5e"@ $&ce" %'d colo&"e&e%" cu"to)e& c%&%cte&"tc" )%y be %(e@ "e#@ 'co)e@ "oc%lcl%""@ (eo(&%$c%l loc%to'@ $e&"o'%lty@ $&oduct u"%(e &%te@ de(&ee o+ b&%'d loy%lty@ occ%"o'" o+ $&oduct u"%(e.

(-'-% St6ate721 a556oa19es to 8a6?et se78entat2on


56/90

%l"o be "e()e'ted b%"ed o' $&oduct c%&%cte&"tc" "uc %": "5e@colou&@ %'d $&ce. A'%ly"e te c%"e "tudy belo o+ '"t%'t Ne"c%+coee b&%'d t%t %" 't&oduced by Ne"tl %'d@ d&% le""o'" +o&%(&bu"'e"" &)" l%u'c'( 'e $&oduct" to le%&' %bout te '6ue'ceo+ co'"u)e& be%!o& o' te $&oduct" "ucce"".

""


57/90

Case Cons/8e6s Ta?e an Instant D2sl2?e to Nes1af

I'"t%'t coee %" &"t 't&oduced ' 1>,>. I't%lly t" 'e $&oduct "ee)ed %"tou( t ould be dely %cce$ted. Te"t" e&e co'ducted ' c "%)$le" o+$ote't%l u"e&" e&e (!e' u')%&ed cu$" o+ '"t%'t coee. A "ub"t%'t%l $&o$o&to'o+ te "%)$led &e"$o'de't" could 'ot tell te de&e'ce betee' te to coee".

oe!e&@ e' Ne"tl l%u'ced t" Ne"c%+ b&%'d t %" d"%$$o'ted by "%le"./ollou$ &e"e%&c $o"ed te ue"to'@ Py do't you u"e '"t%'t coee3Q Te&e"$o'"e %"@ PI do't le te t%"te.Q

G!e' te $&el%u'c )%&et'( &e"e%&c &e"ult" Ne"tl decded to $u&"ue te )%tte&%'d e)$loyed % $"ycol

Date post:	01-Jun-2018
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