Glossary – Marketing and new product development and red meat
Added value – the enhancement of a food product. This can be useful to increase sales once the market has
been saturated and sales of a product are no longer increasing. Adding value can include creating a new
range of flavours, or better packaging.
Advertising – a form of marketing communication, to inform and persuade the target market to make the
decision to purchase the product.
Brand - a name, term, sign, symbol or design, or combination of these which is intended to identify the
goods or services of one seller or group of sellers and differentiate them from those of competitors.
Commodity – a marketable item that people valuable or find useful.
Concept ideas – these can arise from many different sources and are sometimes the starting point of new
product development. Background research is important to understand the current market situation and is
also used to test consumer attitudes towards concept ideas. Successful concept ideas will be undergo small
scale testing.
Concept testing – quantitative and qualitative methods are used to evaluate consumer response to a
product idea prior to the introduction of a product to the market. A detailed description of a product, or a
product sample is presented to prospective consumers to assess their attitudes towards the product.
Consumer market – refers to a group of people or households that purchase goods or products for their
own consumption.
Demographics – objective characteristics used to describe populations, such as age, income, education and
geographical location. Demographic variables are commonly used in marketing for the purpose of market
segmentation. Also see market segmentation.
Diversification – the process of expanding sales opportunities through additional market potential of an
existing product or new markets. The product can be improved or altered, or new marketing activities are
developed to expand or create a new customer base. Also see adding value.
Marketing – the process of communicating the value of a product to consumers for the purpose of selling
the product. Marketing can also create a consumer preference for one product or over another.
Marketing mix – is the set of tools or marketing activities which businesses use to pursue marketing
objectives. It is a combination of four or five inputs which constitutes the core of a company’s marketing
activities, - product, price, place, promotional activities and people.
Marketing orientation – a business philosophy of understanding consumers’ needs and developing an
appropriate product or service to meet that need. For example, identifying a group of consumers with
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specialist nutritional requirements such as those who suffer from Coeliac disease and require gluten free
food.
Market research – refers to the research of the attitudes and behaviour of consumers to provide sellers with
information about consumers’ habits and preferences. A wide range of research methods are undertaken
to obtain data and identify trends which may help a company improve their product sales and market
share.
Market saturation – the point at which further sales growth is constrained by the high percentage of
consumers who already purchase or own a product.
Market segmentation –the subdivision of the large heterogeneous population (with a variety of
characteristics), into smaller more homogenous groups with similar needs in order that market offerings
can be closely matched to these needs. Sellers will then identify smaller groups of consumers within the
market as their target market for specific products. See also target market.
Market share – the percentage or proportion of total sales secured by one product/ brand or company .
Market trends – within a group of consumers various needs, values and attitudes can change, increase or
decrease. Rigorous market research helps to identify trends such as consumers becoming more health
conscious or seeking foods which are more convenient to cook. Knowledge of market trends within a
group of consumers helps to support the development of new products or new marketing strategies. Also
see market research.
New product development (NPD) – refers to a process of bringing a new product to the market. New
product development is a detailed process where many concept ideas are tested and fail. Concept ideas
are modified throughout the process in response to modelling and testing to improve the rate of success.
Niche market – a targetable portion of a market that is suitable for focussed attention by a marketer.
Niche markets may be identified by monitoring consumer demand and purchasing habits. Also see market
segmentation.
Organoleptic analysis – refers to sensory testing conducted at various stages throughout the new product
development (NPD) process. A variety of different tests are conducted by trained testers to analyse the
products.
Pilot plant – the facility to manufacture and test products on a small scale. Modifications to a concept
recipe may be made to make it appropriate for production using industrial equipment. Consumer market
research and organoleptic analysis will be conducted on larger batches. See also consumer market research
and organoleptic analysis.
Product – is any offering (good or service) that can satisfy a need or want. The product will have both
tangible and intangible features (benefits and functions) that a seller offers a consumer for purchase. The
good or service will closely meet the requirements of a particular consumer market.
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Product differentiation – the process of distinguishing a product from others to make it more attractive to a
particular market.
Product life cycle – phases of a product life span every product passes through: concept development,
launch , growth, maturity and decline. By monitoring the product life cycle, marketing strategies can be
implemented to improve product sales.
Product line – a group or range of products that are closely related, either because they fulfil a similar
function, need or appeal to the same group of consumers.
Product specification – is a detailed record of the production processes and ingredients required to
produce the final product. Characteristics, e.g. shape, size, weight, sensory characteristics, colour, shelf-life
and detailed list of ingredients, including source, are documented to ensure the product can be
reproduced to the same standard each production cycle.
Promotion- the art of informing, persuading and influencing consumer’s purchasing decisions. The term
describes all marketing communication activities including advertising, demonstrations, public relations
(PR), sales promotions, trade fares and exhibitions.
Sales boosting strategies – these are aimed to improve product sales once the market has become
saturated. These could include product diversification or new marketing promotion strategies, e.g.
promotional offers or exploring new markets to help improve sales of the product. See also saturated
markets.
Sales promotions – includes incentives intended to encourage immediate sales of a products or services.
The effects of promotion are characteristically short term; therefore sales promotions are a small part of a
larger marketing strategy to ensure long-term success of a product on the market.
Saturated market – the point at which the amount of product provided in a market has been maximised.
Diversification of a product or a rise in consumer demand can achieve further growth. Also see
diversification.
Small scale testing – modelling or creating different versions of a concept idea. These can be made at a test
kitchen or other suitable venue. These will undergo organoleptic analysis. If the small scale testing is
successful, the concept idea will be produced by the pilot plant. Also see pilot plant.
Target market – a specific group of consumers to which a business has decided to aim its marketing efforts.
The target group will have similar needs, wants or characteristics. Also see market segmentation.
Test market – the trial launch of a new product into a confined geographical area or market segment with
the purpose of testing the performance of the proposed marketing mix prior to the full scale market
introduction.
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Tiering system – refers to the premium, standard and value ranges of products which allow consumers a
choice within a product category. Consumers will sometimes shop across the range rather than one tier,
e.g. economical, standard or premium. Creating a premium offering of a product is an example of adding
value to a product to create differentiation. Also see differentiation and trading up.
Trading up – the process where a consumer decides to select a high priced version of a product. The higher
priced version of the product will have improved features (or an increased number of features) or be of an
improved quality. Also see tiering system.
Tactics – is a plan or set of actions to achieve the market strategy of promoting goods and services with the
goal of increasing sales and maintaining a competitive product. Good marketing tactics result in consumer
satisfaction while achieving to achieve short term objectives for the business.
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