Agriculture Reference
In-Depth Information
the tools described above for competitor and customer analysis also can be used here to get
an outside perspective on fi rm strengths and weaknesses.
Benchmarking
is another technique that can be used to assess internal strengths and
weaknesses. Benchmarking involves identifying a non-competitive fi rm that is known for
excellence in a particular area, and then carefully studying that fi rm to see how they deliver
this excellence. The fi ndings of this study are then compared against the agribusiness fi rm's
current practices and key differences explored further. Such a benchmarking study can
provide the fi rm with extremely valuable information that is helpful in identifying strengths
and weaknesses as well as suggesting strategies for dealing with each.
Market segmentation
Market segmentation
groups customers into segments or categories according to some set
of characteristics. Here, the agribusiness manager is interested in developing groups of cus-
tomers that respond in a similar fashion to a given offer. These groups are called market
segments, target markets, or market niches. By recognizing the common characteristics,
needs, or buying motives of each unique segment in the total market, an agribusiness can
design specialized marketing strategies that may appeal to the particular segments it wants
to serve. This idea is illustrated in
Figures 6.3
and
6.4.
Figure 6.3
shows the “market” for a
particular farm input as viewed by a fi rm using a mass market strategy. Here, the fi rm takes
one offering to the entire market. In
Figure 6.4
,
a fi rm using market segmentation has identi-
fi ed four distinct groups or segments in the market, and the shading indicates that this fi rm
has chosen to focus their marketing resources on two of the four segments.
Figure 6.3
Mass market strategy
