Management of innovative marketing techniques as an effective business tool

Ruslana Levkina, Anna Petrenko

Abstract


Purpose. The purpose of the article is to highlight the ways of marketing labeling of agricultural products as effective aspect of business and their interpretation in a clear form to consumers.

Methodology / approach. Research of optimization and correct choosing ways of agricultural product marketing labeling based on the following methods: analysis and comparative characteristics used in world practice labeling methods; methods of decision-making marketing.

Results. According to the recent market trends, labeling of agricultural products acquires varied complicated structure, which makes some difficulties to consumers orientation in labeling types, and, at the same time, complicates the business of agricultural products producers and processors, in consequence of which, marketing potential of business efficiency improving is not fully realized. This article explores ways to streamline marketing labeling for agricultural products, as an effective tool for innovative marketing, and their interpretation in an understandable for the consumer form as an aspect of effective entrepreneurship. As a result of the study, the authors developed and proposed a method for labeling agricultural products, which is based on the most common marketing labeling methods and includes their characteristics.

Originality / scientific novelty. Author’s developed method of marketing labeling is a combination in the same tabular form of the information that will be useful for consumers, and it will beneficially allocate products among competitors and will encourage the purchase. Accordingly, the proposed method provides a list of the most used labeling types, their characteristics, so, labeling type which corresponds to a specific product, released in the table by color, that makes thus labeling type a comprehensive and effective. The need for separate labeling of the nitrates concentration in agricultural products is due to the popularity of consumer requests and the complexity of determining this indicator in household way.

Practical value / significance. Using the author’s proposed labeling method for agricultural products leads to the achievement of the following results: informing consumers without additional information sources; process oriented consumer choice; assessment of competitive advantages in accordance with the production method; increase the volume of sales that increases the efficiency of enterprise economic activity. The research helps resolve problems streamlining marketing labeling methods for agricultural products and their interpretation in a clear form to consumers, and, also, used as an effective entrepreneurship marketing tool. 


Keywords


innovations in marketing; agricultural products labeling; marketing in entrepreneurship; efficiency of business activity.

Full Text:

PDF

References


Organic Trade association (2017), Organic industry infographic 2016, available at: https://theorganicreport.com/organic-trade-association-2016-industry-infographic.

USDA – National agricultural library (2017), Food Labeling, available at: https://www.nal.usda.gov/fnic/general-information-and-resources-food-labeling.

El Ouardighi, F., Feichtinger, G. and Fruchter, G. E. (2018), Accelerating the diffusion of innovations under mixed word of mouth through marketing–operations interaction. Annals of Operations Research, vol. 264, is. 1–2, pp. 435–458. https://doi.org/10.1007/s10479-017-2649-2.

Mauri, A. G., Minazzi, R., Nieto-García, M. and Viglia, G. (2018), Humanize your business. The role of personal reputation in the sharing economy. International Journal of Hospitality Management, vol. 73, pp. 36–43. https://doi.org/10.1016/j.ijhm.2018.01.017.

Joueid, A. and Coenders, G. (2018), Marketing Innovation and New Product Portfolios. A Compositional Approach. Journal of Open Innovation: Technology, Market, and Complexity, vol. 4, is. 2, pp. 19–31. https://doi.org/10.3390/joitmc4020019.

Colby, S. E., Johnson, L., Scheett, A. and Hoverson, B. (2010), Nutrition Marketing on Food Labels. Journal of Nutrition Education and Behavior, vol. 42, no. 2, pp. 92–98. https://doi.org/10.1016/j.jneb.2008.11.002.

Bandara, B. E. S., De Silva, D. A. M., Maduwanthi, B. C. H. and Warunasinghe, W. A. A. I. (2016), Impact of Food Labeling Information on Consumer Purchasing Decision: With Special Reference to Faculty of Agricultural Sciences. Procedia Food Science. Procedia Food Science, vol. 6, pp. 309–313. https://doi.org/10.1016/j.profoo.2016.02.061.

European commission: Agriculture and Rural Development (2017), Fruit and vegetables: Marketing standards, available at: https://ec.europa.eu/agriculture/fruit-and-vegetables/marketing-standards_en.

Huffman, W. E. and McCluskey, J. J. (2014), The economics of labeling GM foods. AgBioForum, vol. 17, no. 2, available at: http://www.agbioforum.org.

Food Safety Authority of Ireland (2016), Guidance note No. 29. The Use of Food Marketing Terms. Abbey Court Lower Abbey Street Dublin, available at: https://www.fsai.ie/publications_food_marketing_terms.

Academy of Nutrition and Dietetics (2016), Understanding Food Marketing Terms, available at: http://www.eatright.org/resource/food/nutrition/nutrition-facts-and-food-labels/understanding-food-marketing-terms.

Tesseras, L. (2014), Consumers confused over food labeling, available at: https://www.marketingweek.com/2014/03/19/consumers-confused-over-food-labelling.

Borra, S. (2006), Consumer perspectives on food labels. The American Journal of Clinical Nutrition, vol. 83 is. 5, p. 1235S. https://doi.org/10.1093/ajcn/83.5.1235S.

Banerjee, S. and Conte, M. N. (2018), Information Access, Conservation Practice Choice, and Rent Seeking in Conservation Procurement Auctions: Evidence from a Laboratory Experiment. American Journal of Agricultural Economics, vol. 100, is. 5, pp. 1407–1426. https://doi.org/10.1093/ajae/aay064.

Campenhout, B. V., Pauw, K. and Minot, N. (2018), The impact of food price shocks in Uganda: first-order effects versus general-equilibrium consequences. European Review of Agricultural Economics, vol. 45, is. 5, pp. 783–807. https://doi.org/10.1093/erae/jby013.

Dahlhausen, J. L., Rungie, C. and Roosen, J. (2018), Value of labeling credence attributes–common structures and individual preferences. Agriculture Economics, vol. 49, is. 6, pp. 741–751. https://doi.org/10.1111/agec.12456.

Food Standards Australia New Zealand (2015), Nitrates and nitrites, available at: http://www.foodstandards.gov.au/consumer/additives/nitrate/Pages/default.aspx.


Refbacks

  • There are currently no refbacks.


This journal is published under the terms of the Creative Commons Attribution Licens 4.0 International (CC BY 4.0).

 

© Agricultural and Resource Economics: International Scientific E-Journal, 2015–2019.