Agriculture Reference
In-Depth Information
Having established the positioning, let's take a quick look at how the fi rm might actually
communicate these ideas to the market. (This process—developing the marketing mix—will
be considered in more detail in
Chapter 7
.)
You can communicate tangible attributes—those characteristics that can be identifi ed
with some precision—of the product by using university test plot data, public evaluations,
the fi rm's test plots, on-farm weigh tests, etc. For the easy to care for and environmentally
sensitive turfgrass, data on number of mowings required, the amount of fertilizer and water
needed, and the number of bags of clippings removed could help communicate in a tangible
fashion the two ideas in the position. These two notions can't be fully supported with facts
and fi gures however, and an agribusiness marketer must think about communicating the
more intangible side of these concepts.
Communicating the intangible takes a little more creativity. However, in the long run,
effective communication of these points can become your greatest differential advantage.
Going back to our dwarf fescue example, the fi rm might pursue a number of activities to
demonstrate the intangible benefi ts and support distributor marketing of the product. The
fi rm could develop point-of-purchase materials for the dealer that showed the homeowner
resting over a dwarf fescue lawn in a hammock while a neighbor was busy mowing. Or, a
direct mail piece targeted at new homeowners could show piles of clippings and fertilizers
that compared the dwarf variety and regular varieties. A website application might allow the
homeowner to calculate lawn care-time saved, or compute the environmental footprint of the
new variety. The fi rm could arrange to get one of its researchers interviewed on regional
television or radio about the environmental features of the new variety. Or, an email cam-
paign targeted at individuals who are in the fi rm's target market could be conducted. Finally,
the seed could be packaged in a bag made of recycled paper. (Note also that the product's
name should be consistent with its position.)
After deciding on the market position the fi rm will seek, they must then develop a
marketing mix that will support the position. Claims ring hollow if the fi rm can't deliver
the promised product/service bundle at an acceptable price. And, the market communica-
tions effort is fundamental to communicate and support the desired message. Finally,
the product/service bundle must be made available in a way that supports the position
as well.
In the end, nothing is more critical to communicating value than delivery. There is a sig-
nifi cant difference between saying you are doing something for your customers and actually
getting the job done. If you ask a manager or a sales representative if they add value to their
product, they'll tell you “yes” every time. Adding value is equated with meeting customer
needs — and what fi rm does not think that they are striving to meet their customers' needs?
Given the similarity of value adding activities among fi rms, the bottom line is that delivery
of the bundle you communicate may well be the way your fi rm is able to differentiate itself
in the marketplace.
Summary
Marketing is the process of anticipating the needs of targeted customers and fi nding ways to
meet those needs profi tably. The strategic market planning process begins with a careful
assessment of the business environment and a critical evaluation of the fi rm's strengths
and weaknesses. The results of this assessment are summarized in a SWOT analysis. The
focus here is identifying key business opportunities in the market—those areas where
the agribusiness should focus its marketing resources.
