Factors of the marketing macro system effecting children’s food production

Economic Annals-ХХI: Volume 170, Issue 3-4, Pages: 49-56

Citation information:
Dunn, J., Brunner, T., Legeza, D., Konovalenko, A., Demchuk, O. (2018). Factors of the marketing macro system effecting children’s food production. Economic Annals-XXI, 170(3-4), 49-56. doi: https://doi.org/10.21003/ea.V170-09

James Dunn
PhD (Economics),
Professor of Agricultural Economics,
Pennsylvania State University
203 Armsby Building, University Park, PA 16802, USA
jwd6@psu.edu

Thomas Brunner
PhD (Economics),
Professor of Consumer Behavior,
Bern University of Applied Sciences
85 Länggasse, Zollikofen, CH-3052, Switzerland
thomas.brunner@bfh.ch
ORCID ID: https://orcid.org/0000-0002-6770-6548

Darya Legeza
D.Sc. (Economics),
Associate Professor,
Tavria State Agrotechnological University
18 Bohdan Khmelnitsky Ave., Melitopol, 72312, Ukraine
dlegeza78@gmail.com
ORCID ID: https://orcid.org/0000-0003-4545-0366

Anastasia Konovalenko
PhD (Economics),
Senior Lecturer,
Tavria State Agrotechnological University
18 Bohdan Khmelnitsky Ave., Melitopol, 72312, Ukraine
avmvpmailru@gmail.com
ORCID ID: https://orcid.org/0000-0001-9061-5989

Olena Demchuk
PhD (Economics),
Associate Professor,
Tavria State Agrotechnological University
18 Bohdan Khmelnitsky Ave., Melitopol, 72312, Ukraine
Lena_d81@ukr.net
ORCID ID: https://orcid.org/0000-0002-9587-3562

Factors of the marketing macro system effecting children’s food production

Abstract. The article reveals unsettled reasons of changing in the children’s food market. Various political, economic, demographic, sociological, natural, and technological forces are extensively used in the paper to examine the external influence on the market. The aim of the research is a consequent evaluation of children’s food production factors on the macro level of the vegetable market. The novelty of the study explains the research methodology which is based on a factor analysis of a marketing system influence on the macro level. The study presents a quantitative expert evaluation of the main factors in the vegetable market. We use the total integer indicator to study a degree of influence both in complex and separately. An improved methodology is outlined in three sections. The first section gives an overview of marketing forces at the macro level. The second section examines the most significant negative and positive factors in the complex. Finally, our propositions for market development are drawn in the final section. It is suggested that economic, demographic and socio-geographic factors affect mostly at the macro level. Calculation of total threats and opportunities in factor groups proves a negative tendency in the development of enterprises which offer vegetable products for children. Based on the factors grouping results, the authors propose further alternative strategies for marketing development in vegetable enterprises such as Internet purchasing and upgraded food canal chain management.

Keywords: Marketing Macro System; Marketing Factors; Vegetables Producers; Children’s Food; A Total Integer Indicator

JEL Classification: L16; Q13; M 21; M31

Acknowledgements: The article is related to Ukrainian State scientific and technical program No. 0116U002738, dealing with «Marketing strategy development of agrarian enterprises».

DOI: https://doi.org/10.21003/ea.V170-09

References

1. The Cabinet Decree of Ukraine (2011, August 15). About approval of the State social program for the development of infants’ Food Production for 2012-2016 No. 970, in edition as of November 28, 2012.
   Retrieved from http://zakon.rada.gov.ua/laws/show/870-2011-%D0%BF (in Ukr.)
2. The Commission of the European Communities (2006, December 22). Commission Directive 2006/141/EC On infant formulae and follow-on formulae. Official Journal of the European Union, L401, 1-33.
   Retrieved from https://www.fsai.ie/uploadedFiles/Dir2006_141.pdf
3. The European Parliament and of the Council (2009, May 6). Commission Directive 2009/39/EC on foodstuffs intended for particular nutritional uses. Official Journal of the European Union, L124, 21-29.
   Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009L0039&from=EN
4. Kotler, P. (1967). Marketing Management: Analysis, Planning and Control. Englewood Cliffs, N.J.: Prentice-Hall.
5. Birnleitner, H. (2013). Influence of macro-environmental factors to the process of integrating a foreign business entity. In Proceedings from Industry, science and policy makers for sustainable future: the 14^th Management International Conference, 21-23 November, 2013, Slovenia, Koper (pp. 387-400).
6. Samnani, A. (2014). Macro- Environmental Factors Effecting Fast Food Industry. Food Science and quality management, 31, 37-40.
   Retrieved from https://iiste.org/Journals/index.php/FSQM/article/view/15571
7. Baker, S., Thompson, K., Engelken, J., & Huntley, K. (2004). Mapping the values driving organic food choice. European Journal Of Marketing, 38(8), 995-1012.
   doi: https://doi.org/10.1108/03090560410539131
8. Aertsens, J., Verbeke, W., Mondelaers, K., & Van Huylenbroeck, G. (2009). Personal determinants of organic food consumption: a review. British Food Journal, 111(10), 1140-1167.
   doi: https://doi.org/10.1108/00070700910992961
9. Squires, L., Juric, B., & Cornwell, B. T. (2001). Level of market development and intensity of organic food consumption: cross‐cultural study of Danish and New Zealand consumers. Journal of Consumer Marketing, 18(5), 392-409.
   doi: https://doi.org/10.1108/07363760110398754
10. Wansink, B., & Sobal, J. (2007). Mindless Eating. The 200 Daily Food Decisions We Overlook. Environment And Behavior, 39(1), 106-123.
    doi: https://doi.org/10.1177/0013916506295573
11. Block, S., Kiess, L., Webb, P., Kosen, S., Moench-Pfanner, R., Bloem, M., & Timmer, P. C. (2004). Macro shocks and micro outcomes: child nutrition during Indonesia’s crisis. Economics & Human Biology, 2(1), 21-44.
    doi: https://doi.org/10.1016/j.ehb.2003.12.007
12. Keller, K. L. (2001). Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs. Journal of Marketing Management, 17, 7-8, 819-847.
    doi: https://doi.org/10.1362/026725701323366836
13. Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15(2-3), 139-155.
    doi: https://doi.org/10.1080/13527260902757530
14. Hughner, R. S., McDonagh, P., Prothero, A., Shultz, C., & Stanton, J. (2007). Who are organic food consumers? A compilation and review of why people purchase organic food. Journal of Consumer behavior, 6(2-3), 94-110.
    doi: https://doi.org/10.1002/cb.210
15. Constantinides, E. (2006). The marketing mix revisited: towards the 21^st century marketing. Journal of marketing management, 22(3-4), 407-438.
    doi: https://doi.org/10.1362/026725706776861190
16. Moroz, L. A., & Lebid, T. V. (2009). Strategic analysis of marketing potential of an enterprise. Visnyk Natsionalnoho universytetu «Lvivska politekhnika» (Herald of the National University «Lviv Polytechnic»), 649, 214-220.
    Retrieved from http://vlp.com.ua/files/special/30.pdf (in Ukr.)
17. Levkiv, H. Ia., & Leskiv, H. Z. (2010). Marketing potential as an element of processing enterprises. Visnyk Khmelnytskoho natsionalnoho universytetu, Seria: economichni nauki (Herald of Khmelnytsky National University. Series: economic sciences), 4(2), 70-72 (in Ukr.).
18. Starostina, A. O. (2012). Market research to national and international markets. Kyiv: LTD «Lazaryt-Polihraf» (in Ukr.).
19. Kulish, T. V. (2016). Current situation and tendency of dairy market development. Formuvannia rynkovoi ekonomiky. Zbirnyk naukovych prats molodych uchenych ta aspirantiv: Ekonomika ta pidpriyemnyctvo (Formation of market economy. Collection of scientific works of young scientists and graduate students: Economics and entrepreneurship) (pp. 321-327). Kyiv: Kyiv National Economic University (in Ukr.).
20. Stock market infrastructure development agency of Ukraine (Smida) (2018). Data of issuers.
    Retrieved from https://smida.gov.ua/db/emitent/search (in Ukr.)
21. Babyexpo (2018). State and perspectives of children consumption.
    Retrieved from http://babyexpo.ua/trands/suchasniy-stan-ta-perspektivi-rozvitku-galuzi-dityachogo-kharchuvannya (in Ukr.)
22. The Cabinet of Ministers of Ukraine (1997). About the main principles and requirements for safety and quality of food. The Cabinet Decree No. 19, art. 98, in edition as of April 04, 2018.
    Retrieved from https://zakon.rada.gov.ua/laws/show/771/97-вр/ed20150920 (in Ukr.)
23. The Cabinet of Ministers of Ukraine (2011). Presidential proposals to the Law of Ukraine «About food safety of Ukraine».
    Retrieved from http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_2?pf3516=8370-1&skl=7 (in Ukr.)
24. The Cabinet of Ministers of Ukraine (1991). About the consumer’s right protection. The Cabinet Decree No. 30, art. 379, in edition as of June 10, 2017.
    Retrieved from http://zakon.rada.gov.ua/laws/show/1023-12 (in Ukr.)
25. The Cabinet of Ministers of Ukraine (2005, September 6). On Amendments to the Law of Ukraine «On the Quality and Safety of Food Products and Food Raw Materials». The Cabinet Decree No. 50 art. 533.
    Retrieved from http://zakon.rada.gov.ua/laws/show/2809-15/ed20150920 (in Ukr.)
26. State Statistics Service of Ukraine (2017). Countries by commodity structure of foreign trading for January-December 2016.
    Retrieved from http://www.ukrstat.gov.ua/operativ/operativ2016/zd/kr_tstr/arh_kr_2016.htm (in Ukr.)
27. State Statistics Service of Ukraine (2014). Countries by commodity structure of foreign trading for January-December 2013.
    Retrieved from http://www.ukrstat.gov.ua/operativ/operativ2013/zd/kr_tstr/arh_kr_2013.htm (in Ukr.)
28. State Statistics Service of Ukraine (2017). Sales and stocks in retail trade 2016.
    Retrieved from https://ukrstat.org/uk/druk/publicat/kat_u/publtorg_u.htm (in Ukr.)
29. State Statistics Service of Ukraine (2017). Investment of external economic activity of Ukraine in 2010-2016.
    Retrieved from http://ukrstat.gov.ua/druk/publicat/kat_u/publ10_u.htm (in Ukr.)
30. The Ministry of Finance of Ukraine (2018). Living wage in Ukraine in 2000-2018.
    Retrieved from https://index.minfin.com.ua/labour/wagemin (in Ukr.)
31. Finance.i.ua (2018). Currency exchange rate of NBU as for 27.06.2014.
    Retrieved from https://finance.i.ua/nbu/?d=27&m=6&retry=2&y=2014 (in Ukr.)
32. Finance.i.ua (2018). Currency exchange rate of NBU as for 27.06.2018.
    Retrieved from https://finance.i.ua/nbu/?d=27&m=6&y=2018 (in Ukr.)
33. The Cabinet of Ministers of Ukraine (2001). On Approval of the Procedure for the Appointment and Payment of State Support to Families with Children The Cabinet Decree No. 1761 with amendments, in edition as of July 26, 2018.
    Retrieved from http://zakon.rada.gov.ua/laws/show/1751-2001-%D0%BF (in Ukr.)
34. Serpstat (2018). karapuz.dp.ua – Overview – Domain Analysis.
    Retrieved from https://serpstat.com/domains/?query=karapuz.dp.ua&ff=1&search_type=subdomains&se=g_ua (in Ukr.)
35. State Statistics Service of Ukraine (2017). Population of Ukraine in 2016. Demographic yearbook.
    Retrieved from https://ukrstat.org/uk/druk/publicat/kat_u/2017/zb/12/naselen2016pdf.zip (in Ukr.)
36. State Statistics Service of Ukraine (2017). Fuel and energy resources of Ukraine. Part 1.1.
    Retrieved from http://www.ukrstat.gov.ua/druk/publicat/kat_u/publenerg_u.htm (in Ukr.)
37. Food and Agricultural Organization of the United Nations (2018). Land use. Agricultural area organic.
    Retrieved from http://www.fao.org/faostat/en/#data/RL

Received 2.06.2018