Innovation, Entrepreneurship, and Non-price Factors: Implications for Competitiveness in International Trade
The experiences of Kellogg and CPC International illustrate the importance of non-price factors to success in international food marketing. It is important to comment again on innovation and entrepreneurship as factors associated with competitiveness in international trade. Despite the importance of price in international trade, especially in a setting of faltering economic growth and overproduction of many foods, price is but one among several factors that determine customer and consumer acceptance of product offerings. Fundamental to the success of any food company operating in this increasingly global setting is to fully grasp the contemporary meaning of marketing. Consumers’ wants and needs constitute the major driving force that orients and directs the entire food system: retailers, wholesalers, manufacturers, processors, agribusiness firms, and farms. Growth strategies of food marketers are increasingly focusing on variety and excitement for shopper appeal. Food processors are proliferating products with new and different tastes and flavors.