Marketing Management: Analyzing the Marketing Plan for Weston Food Company
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This paper analyzes the marketing management structure of Weston Food Company and its marketing plan for selling its new acquired distribution of Canadian product- Dave's Killer organic bread. It examines target customers, market opportunities, competitive landscape, and more.
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MARKETING MANAGEMENT Marketing Management Name of the Student: Name of the University: Author Note:
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1MARKETING MANAGEMENT EXECUTIVE SUMMARY The primary objective of the paper is to analyse the marketing management structure of the Weston food company in the context of its adaption of selling its new acquired distribution of Canadian product- Dave's Killer organic bread. In this context, the report is focused on analysing the marketing plan for the company for six months. Further, the report focuses on investigating the target customers and market opportunities for the company. Moreover, the report also examines the competitive landscape of the product and company. Furthermore, the report examines the objective of setting up the marketing plan and concerning this analyses the value proposition of the concerned product. In this connection, the report critically analyses the marketing mix structure of the product in order to study the market segment for the product. The report then significantly suggests the media recommendations that would be effective for the company in order to promote the product. Finally, the report concludes by examining the budget forecast for the promotion of the product and tends to measure its success scale with the help of key performance indicator for the upcoming future.
2MARKETING MANAGEMENT Table of Contents Introduction................................................................................................................................3 Target Customers.......................................................................................................................3 Market Background and Opportunity........................................................................................5 Competitive Landscape..............................................................................................................9 The objective of the Marketing Plan........................................................................................10 4 P’s of Marketing Mix............................................................................................................11 Media Recommendations.........................................................................................................14 Calendar...................................................................................................................................15 Financials.................................................................................................................................17 Measurement of Success..........................................................................................................17 Conclusion................................................................................................................................18 References................................................................................................................................19
3MARKETING MANAGEMENT Introduction The paper critically develops a marketing plan for the company Weston foods concerning the acquiring of Canadian production and rights of distribution to the U.S. Brand product Dave’s Killer Bread in the year of 2017 (Price & Nguyen, 2016). The concerned product is examined to be an organic one. It is a non-genetically modified organism line of product into bread packaging that is sold across Canada in many grocery stores. Researches show that the initial sales of the concerned product have brought revolutionary changes in the revenue production of Weston foods. However, the study tends to analyse the potential market structure for the company and its adoption of a new product. In this connection, the report focuses on examining the following concepts that would help the company gain a substantial competitive advantage. Target Customers As opined by Grant (2016), the target customers are those potential group of people that a business entity targets in order to sell their products and services in the context of generating revenue from the same. In this connection, the target customers for the concerned company are analysed to be distributed into two main segments – Demographic and Psychographic profile of customers. This can be further explained below. Demographic As implied by Chernev (2018), the segmentation of market as per the demographic profile consists of targeting the customers with respect to their age factor, gender difference, the status of the family, and the status of employment and income of the people. The age group of people 24-36 would prefer more organic bread because of their change in mindset (Hurst, 2016). The choice of food may differ as per the difference in the gender of the individual. Researches show that the male prefers more of organic bread because of their
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4MARKETING MANAGEMENT earning abilities and concerning attitude towards their family members. The next crucial demographic segment is the status of the customer’s family. The premium and people with higher status prefer more organic food products since they find it healthier and the high cost of the organic product does not hamper their income status. The self-employed people and their good income earning prefers them to opt for organic products. They also prefer to consume bread as their daily consumable good because of the need for emergency and staying away from their family; bread becomes a natural choice for them. In this connection, the concerned company can critically focus on selling its organic bread to the customer sector of the high-income group that includes the middle and upper- middle-class people in society. The next target customers that can be focused are the millennial age group of people and the people who are into high profile jobs and are self- employed. The next potential target of customers for the organic bread remains to be the people with high and premium status. It was examined that Weston Foods can concentrate on the above mentioned group of customers in order to increase their sales and make their potential customers aware of their new products and sales (Leslie et al., 2018). Psychographic As opined by Gunter (2016), the psychographic segmentation of the target customers is done on the base of interests, taste and preferences, behavioural attributes and attitudes, lifestyle and values of the individuals. The theory of psychographic segmentation states that the customers are to be targeted based on their health consciousness and behavioural approach towards consuming organic products. The people concerned more with changing their lifestyle as per changes in the innovation of products and services can be considered to be the customers that are needed to be targeted at the highest priority (Doppelt, 2017).
5MARKETING MANAGEMENT In this connection, as examined with the help of the research it was analysed that approximate 58% of the Canadian people prefer organic food in the context of remaining healthy and avoiding significant issues to their health (Mie et al., 2017). Thus, Weston foods have a high segment of the Canadian people to be focused on marketing their new organic bread. The more the awareness, the more they sell. Therefore, it becomes necessary for the concernedorganisationtostudythemarketstructureinordertoanalysethemarket opportunities the firm has. The description of the same is followed below. Market Background and Opportunity As implied by Avgerou & Walsham (2017), the market background and opportunity is the ideology of the philosophical attributes of a business entity that helps them to analyse the target market and the potential strengths and weakness the company has in terms of the market condition. In this context, to understand the market background and opportunity of the organic bread being served by the Weston foods, the theory of SWOT analysis is taken into consideration. SWOT Analysis As implied by Bull et al., (2016), SWOT analysis is the theory that helps in the determination of the intrinsic strengths and weaknesses as well as the extrinsic opportunities and threats of an active business entity. In this connection, to understand the market background of Weston foods concerning the sale of the organic bread with the help of the concerned theory is examined below. Strengths As opined by Burrell & Morgan (2017), the strength analysis of the company describes the factors at which the company has received an excellent paradigm. These are
6MARKETING MANAGEMENT also termed as the traits of a business entity that makes it advantageous over its potential rival companies. In this context, the potential strengths of Weston foods are analysed as below. Change in innovation and technological strategies The creativity and innovation modification in a business entity goes hand in hand and is considered as one of the most critical factors to gain a competitive advantage in the market structure. The Weston food company in order to achieve the same evaluated many tools and methodologies to create and develop ideas about innovating their existing matrix of work (Kaplan, 2017). They worked on changing their technologies as per the changes in the technological factor of the market. Effective implementation of manufacturing capabilities A business strategy is successfully implemented only when its manufacturing and product building capabilities are effectively ensured (Story et al., 2017). The manufacturing unit,logistics,warehouseandtechnologydepartmentoftheWestonfoodscompany consistently works to their greatest zeal to increase their agility of work and set up an active manufacturing unit in the company. Structured supply chain and distribution of products As opined by Hugos (2018), only the production and furnishing of the product is not necessary to succeed in the business market. The primary step after the furnishing of the final product is to introduce and make it reach to the target market and desired end customers. In this connection, the supply chain of the Weston foods is effectively and efficiently designed. This helps in the smooth flow of distributing the product from its place of origin to its place of consumption.
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7MARKETING MANAGEMENT Weaknesses As opined by Schaltegger & Wagner (2017), the weaknesses of a company are analysed to be the disadvantages incurred by the company over other potential competitors. The factors of weakness cease the company to perform at its optimal level. In this connection, the weak factors of the Weston foods were analysed as below. The perishable nature of the produced food product As the name of the company suggests, the Weston food company deals in serving the food products (Garrod, 2018). Thus, the organic bread served by the company is perishable in nature. It has a limited shelf life and can be destroyed quickly. This becomes a limitation for the company to produce a large quantity of the bread as it can result in a massive loss to the company. This, in turn, also increases the cost of managing the inventory for the firm. Rise in competition The increase in the competition level in the market requires the company to make frequent changes in their strategical implementation plan process (Ansoff et al., 2019). This leads to an increase in the cost of production and impacts the working structure of Weston food to be active and efficient. Opportunities As implied by Fleisher & Bensoussan (2015), the opportunities analysis helps in analysing the favourable conditions for a business entity that helps it gain a compelling competitive advantage in the business market. In this connection, the most significant opportunity that lies for the Weston food company in order to bring recognisable changes in its product innovation strategies is as follows.
8MARKETING MANAGEMENT The increment in the population of middle-class people gives the company a new market to be focused on. The possibility of innovating the packaging of the product and making its ingredients more healthy in nature. Expanding the varieties and flavours of organic bread than serving just the regular and single flavoured bread. More the choices, more the interest of the end customers. Threats As opined by Laguna & Marklund (2018), the threats analysis helps the company to understand the factors that can bring significant harm to the existence and paradigm of the company. It also helps the business entity to understand the competitive strategies of its business rivals. In this connection, the potential threats that can impact the position of Weston foods market are analysed as below. Threats of a new company entering into the market The company is continuously thriving with the threat of new companies entering the market with innovated and modified ideas of technology. This creates a threat to the company for their customers to shift from one company to another and this may impact the sales of the company. Threats of similar substitute products Altogether with the threat of new companies entering into the market, the Weston food company also has a threat of the existing and new companies introducing the similar substitute product in the market that would satisfy the taste and preferences of its potential customers. This again brings up a threat to the company of customers shifting from one company to another.
9MARKETING MANAGEMENT As illustrated by the above shreds of evidence, it is examined that the Weston foods have a high opportunity of targeting the Canadian people with their organic bread as 58% of the whole Canadian population prefers to consume organic foods. In order to sustain in the market and gain higher competitive advantage, the Weston foods need to understand the above mentioned concept of SWOT analysis broadly. This analysis as explained above lets the company realise their potential opportunities and threats in the market and make necessary changes in their strategical implementation. This helps the company to understand their potential customers and their strategies which would help Weston foods to change accordingly to sustain themselves in the market in the long run. The strengths help them gain a higher paradigm in the market; the weaknesses helps them improve in the factors the company is lacking behind. The opportunities give them an ideology to strengthen their theoriesofworkinthefuture,andthethreatshelpthemunderstandtheirpotential competitors and act accordingly to make the required changes (Schumpeter, 2017). Competitive Landscape As stated by Dale, Robinson & Evans (2017), the competitive landscape is the ideology of a business entity that helps the in analysing both their direct and indirect potential competitors and competitive products. In this connection, the competing products with respect to Weston foods are examined as the milk bread, brown bread, multi-grain bread, and white bread. The difference between these wide ranges of bread product available and the organic bread is that the organic bread is produced with the highest quality flour and is refined keeping in mind the health concern of the people. Organic bread is delivered without any preservatives, artificial and irradiated ingredients that make it safe to be consumed (Blay- Palmer, 2016). The consumption of organic bread, therefore, is healthy then of the other bread which gives a taste but not health. Therefore, Weston foods should advertise their sell
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10MARKETING MANAGEMENT of organic bread to more group of people that will make them aware of the benefits of consuming organic bread rather than other adulterated bread. In this connection, the report examined that competitive frame of reference followed by the Weston foods with respect to its Dave’s Killer organic bread is the ideology ofcost leadership(Hvenmark, 2016). This theory of cost leadership states that the Weston foods company is concentrated on leading the market with its strategical implementation of keeping its pricing strategies at an affordable rate but not letting the quality of the product being affected. This, in turn, helps the company to attract a large number of customers to consume organic bread. This also sets an ideology of earning a better profit as the more number of customers equals a higher amount of sales and therefore a generation of better revenue. The objective of the Marketing Plan Theprimary goalof the illustrated marketing plan in the report is to analyse the potential opportunities and threats for the establishment and procurement of the new adopted product – Dave’s Killer organic bread by the company Weston foods. The marketing plan is set for the concerned company in the context that the company after analysing and examining the complete market structure and its potentialities can accordingly work to increase its strengths and decrease its liability to threats. In this connection, the company desires to achieve an effective and efficient competitive advantage in the Canadian market and increase its consumer and market base for the consumption of organic bread (Magnan, 2016). The primarypoint of differencebetween the organic bread and the other bread sold by the competitors such as the white bread, milk bread, fruit bread and brown bread includes harmful preservatives and artificial ingredients. In this lieu, the organic bread is produced with all natural ingredients which do not cause any harm to the health of its consumers (Arzani & Ashraf, 2017). The company Weston foods also ensure that it keeps the price of
11MARKETING MANAGEMENT the organic bread at a reasonable and affordable rate so that more and more individuals get attracted towards consuming the organic bread and shifting their taste of preference from other bread to the beneficial organic bread. The company desires that the consumers do not prefer to eat the bread with artificial ingredients just because of the price difference and thereby are not leveraged to severe health issues and diseases. This, in turn, helps the company to gain brand and customer loyalty and build a healthy business relationship with them. As opined by Kyambalesa (2017),the value proposition of productis an ideology of a business entity that helps in summarising the concept of why would a customer be interested in buying the product and availing oneself of the service being offered by the company. In this connection, the value proposition of the concerned organic bread sold by the Weston foods is examined below. Unique texture and taste of the bread. The ideology of cost efficiency by setting up an affordable pricing strategy. Use of natural and real ingredients rather than using preservatives and artificial ingredients. Eliminates the harmful effects on the health of the customers. 4 P’s of Marketing Mix As opined by Porter & Kramer (2019), the marketing mix is the theory of the factors that is powered by the business entity in order to influence and attract its potential customers to buy its offered product and services. In this connection, the 4 P’s of marketing mix concerned with the organic bread strategies of the Weston food can be determined as below. Product
12MARKETING MANAGEMENT Weston food is a chain of an industry that produces and distributes food products in Canada (Gomez & Lopez-Lomeli, 2018). Its objective is to offer its potential customer with premium and qualified organic bread at the most affordable price. The conceptual ideology of the industry lies in providing freshly baked healthy organic bread to its customer and end market. They produce their organic Dave’s killer organic bread with the concept of dietary and natural ingredients. They focus on implementing their production with gluten-free, vegan, low sodium and fat as well as dairy-free organic bread. The bread offered can be kept into perseverance for four days. The company has also fostered seasonal offerings of bread to their potential customers. The bakery chain of Weston food offers a premium supply of its organic bread continually across the citizens of Canada. Price Weston Food Company sets its pricing strategy as per the concept of cost leadership. They fixed this ideology of pricing its organic bread keeping in mind the high level of competitive nature that exists between its potential competitors and substitute products. The company has set the concept of serving high qualified premium organic bread at the lowest price possible. Weston food being Canada’s one of the fastest thrives in keeping the health of its consumers at a maintained priority. The adaption of emerging with the sale of Dave's killer organic bread the concerned industry is known to have made revolutionary and record- breaking changes in the field of organic products. Researches show that alone Weston food has grown the sale of organic bread to 2.6% in 2017 that was recorded only as 0.7% in 2012 (Keir, 2017). Place The Weston foods placed over 40 stores across Canada and U.S.A.; also serves its products in other retail and wholesale grocery stores (Blay-Palmer, 2016). The concerned
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13MARKETING MANAGEMENT industry has its distribution almost all the small retail stores in Canada and U.S.A. In this connection, the potential customers in the wish to consume the organic bread can purchase the same from any available store nearby them. Moreover, the price of the organic good remains to be the same all over the country in all the stores. However, the price may differentiate at the U.S.A. from that of Canada because of the import and export as well as carrier charges imposed while making the product safely available at the stores of U.S.A. The industry is also fostering to bring an increase in its sales volume concerning providing services of home delivery of the concerned product to its potential customers. Promotion The Weston food company mostly relies on making people aware of its new product with a mouth to mouth conversation (Bao et al., 2019). In this context, they provide their customers with the most effective in house services such as live bakery and freshly prepared bread. In addition, the promotional strategies used by the company in the view of making people about Dave's killer organic bread sold by them are examined to be the new and innovated technologies of social media advertisements, website advertisements, and social media campaign and also sponsored social media influencers. Along with this, the company has not avoided the importance of the traditional process of promotional marketing. In this context, the company also focuses on advertising the organic bread product in televisions and radio advertisements. Nevertheless, as discussed above it also focuses on the oldest mean of promotion that is the mouth to mouth promotional technique. In this connection,the difference between the marketing strategies and marketing tacticsused by the Weston foods company is critically examined as the following. The marketing strategies implemented by the company defines the future structure of the company, whereas, the tactics describes the shortcoming of the same.
14MARKETING MANAGEMENT Themarketingstrategiesdefinetheparadigmof competitiveadvantageof the company. According to (), if the strategical implementation of the company is not robust than the implication of tactics to increase the sales volume will turn out to be a failure. Marketing strategies are the long-time vision of the company and define its retention in the long run of the business market structure, whereas tactics are just used for short term in order to attract customers and promote sales for a shorter period of time. Specifically, the concept of implementing tactics in a business entity keeps changing frequently. The marketing strategies define the allocation of resources or budget of the company, employment and techniques to be used to produce the goods and offer the services. Whereas, the tactics are just implemented to make the shortcomings of the events work in the company. Media Recommendations In order to promote the product offerings of Weston Food a mix of various promotion media channels mix that will include social media advertisements, website advertisements, and social media campaign and also sponsored social media influencers. These marketing campaigns will be distributed for six months period utilising selected social media channels such as Facebook and Twitter. The timeframe of six months is selected for increasing the reach of consumers through the online media platform. Mix media marketing approach is selectedasitwillincreasethereachofpromotionalmessagesandfacilitatebudget reallocation in improving marketing performance.
MARKETING MANAGEMENT Calendar MonthDATETI MEDATE & TI MECampaignRationale Month 1 LinkedI n’s sponsored content options4/ 2/ 20158: 00: 0002/ 04/ 2015 08: 00Well optimised linkedin pagesI ncrease exposure of content Month 2 serving top-of-funnel content4/ 3/ 20158: 00: 0003/ 04/ 2015 08: 00clickable icons, or a quizviewers can engage with images or videos Month 3 4/ 4/ 20158: 00: 0004/ 04/ 2015 08: 00Tutorial Videos on organic baking I ncreased engagement with company on I nstagram by liking, commenting, tagging, or direct messaging Month 4 4/ 5/ 20158: 00: 0005/ 04/ 2015 08: 00Twitter feedboosting engagement through communication Month 5 4/ 6/ 20158: 00: 0006/ 04/ 2015 08: 00Twitter's boosted poststurning followers into customers Month 6 4/ 7/ 20158: 00: 0007/ 04/ 2015 08: 00Hashtag campaignconverting current customers into loyal customers
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16MARKETING MANAGEMENT MonthDATETI MEDATE & TI MECAMPAI GNRationale Month 1 4/ 2/ 20159: 00: 0002/ 04/ 2015 09: 00Facebook 360 videoincrease facebook page engagement. Month 2 4/ 3/ 20159: 00: 0003/ 04/ 2015 09: 00clickable icons, or a quiz I ncreased engagement with company on I nstagram by liking, commenting, tagging, or direct messaging Month 3 4/ 4/ 20159: 00: 0004/ 04/ 2015 09: 00Tutorial Videos on organic bakingMake consumers updated on company's latest products. Month 4 4/ 5/ 20159: 00: 0005/ 04/ 2015 09: 00Facebook posts to inspire engagementboosting engagement through communication Month 5 4/ 6/ 20159: 00: 0006/ 04/ 2015 09: 00The Mobile News Feed Adable to catch follower’s attention Month 6 4/ 7/ 20159: 00: 0007/ 04/ 2015 09: 00Photo Adappeal to the values of your target audience Sales Forecast month 1month 2month 3month 4month 5month 6 Volume100120130140150160 organic bread100120130140150160 Selling Price10.0010.0010.0010.0010.0010.00 organic bread10.0010.0010.0010.0010.0010.00 Sales1,0001,2001,3001,4001,5001,600 organic bread1,0001,2001,3001,4001,5001,600 Cost of Sales7001,6511,7811,4001,5001,600 organic bread7008409109801,0501,120 Gross Profit420450480--- organic bread300360390420450480 Gross Profit %30.0%37.5%36.9%0.0%0.0%0.0% organic bread30.0%30.0%30.0%30.0%30.0%30.0%
MARKETING MANAGEMENT Financials The sales goals developed based on the marketing budget are indicated below: Toincreaserevenuethroughadvertisingandpromotionsbyofferinguseful promotional deals Increasing profit margins of the company over the six months To increase the sales of organic bakery products over the six months timeframe Budget ParticularsMonth 1Month 2Month 3Month 4Month 5Month 6 Salaries$15,000.00$28,000.00$41,000.00$54,000.00$67,000.00$80,000.00 Rent$13,000.00$13,000.00$13,000.00$13,000.00$13,000.00$13,000.00 Consumer trends Research$11,000.00$12,000.00$13,000.00$14,000.00$15,000.00$16,000.00 Outreach$9,000.00$10,000.00$11,000.00$12,000.00$13,000.00$14,000.00 Travel$7,000.00$8,000.00$9,000.00$10,000.00$11,000.00$12,000.00 Legal Cost$5,000.00$6,500.00$8,000.00$9,500.00$11,000.00$12,500.00 Publicity$3,000.00$5,000.00$7,000.00$9,000.00$11,000.00$13,000.00 Office Equipments$1,000.00$2,000.00$3,000.00$4,000.00$5,000.00$6,000.00 Furnitures$3,000.00$5,500.00$8,000.00$10,500.00$13,000.00$15,500.00 Events$4,000.00$6,000.00$8,000.00$10,000.00$12,000.00$14,000.00 Facebook advertisement$5,000.00$7,000.00$9,000.00$11,000.00$13,000.00$15,000.00 Training and Education$25,000.00$28,000.00$31,000.00$34,000.00$37,000.00$40,000.00 Volunteer Costs$20,000.00$22,000.00$24,000.00$26,000.00$28,000.00$30,000.00 Accountancy Expenses$15,000.00$18,000.00$21,000.00$24,000.00$27,000.00$30,000.00 Website and Social Media$10,000.00$12,000.00$14,000.00$16,000.00$18,000.00$20,000.00 Twitter Promotion costs$5,000.00$8,000.00$11,000.00$14,000.00$17,000.00$20,000.00 Conferences$2,000.00$3,000.00$4,000.00$5,000.00$6,000.00$7,000.00 LinkedIn advertisement costs$1,500.00$2,000.00$2,500.00$3,000.00$3,500.00$4,000.00 Television advertisement$1,000.00$1,700.00$2,400.00$3,100.00$3,800.00$4,500.00 Contingency Costs$800.00$1,200.00$1,600.00$2,000.00$2,400.00$2,800.00 Total$156,300.00$198,900.00$241,500.00$284,100.00$326,700.00$369,300.00 Measurement of Success As per the examination of the marketing plan budget set up, the report tends to analyse the success matrix of the same with the help of the value determinants of the key performanceindicator(KPI). In thisconnection,the success matrixof the concerned company and its product can be determined as below. Based on the financial budget of the company that is planned above, it is estimated that:
18MARKETING MANAGEMENT Thesales revenuewill increase by 20% by the end of 6 months. Thecustomer value of lifetimewill increase by 15%. Thelead to customer ratiowill increase by a rough estimate of 12-15%. Theorganic rate of the salewill increase by 10%. Conclusion To bring to a conclusion, it can tend to examine with the limitation of the study of the given report that a strategical marketing plan is necessary for any business entity to bring itself and its products and services into the light of the market. In order to gain a compelling competitive advantage in the market positioning a company has to significantly follow the focus on its target market and the market opportunities. To keep their paradigm stable in the market, a business entity needs to analyse the competitive landscape and keep pace with the necessary amendments desired to bring changes in the innovative technologies in the company. The business organisation needs to follow the value proposition of its product with respect to the marketing mix factors involved in the market. This helps them retain their business for a more extended period of time.
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22MARKETING MANAGEMENT The story, V. M., Raddats, C., Burton, J., Zolkiewski, J., & Baines, T. (2017). Capabilities for advanced services: A multi-actor perspective.Industrial Marketing Management,60, 54-68.