Agriculture Reference
In-Depth Information
The market assessment provides data for a fundamental choice the agrimarketer
must make: What target market(s) should the fi rm pursue? A target market is a group of
customers and prospects that will respond in similar fashion to a given offer. Agribusiness
marketers can segment a market on a wide range of characteristics—demographic,
geographic, business, psychographic, etc. The key for the marketer is to identify a target
group with unique needs that the fi rm can serve profi tability.
An important part of the strategic market planning process is determining the position the
fi rm wants to take with its target market. The position serves as a focal point for the fi rm's
marketing mix—it captures the essence of the message the fi rm is trying to send the market.
An agribusiness fi rm's position is typically drawn from its competitive advantage—the
fi rm's unique edge over rival fi rms.
The set of decisions agribusiness managers make as part of the strategic market planning
process may be among the most fundamental choices facing an agribusiness fi rm. Decisions
about what markets to pursue and what position to take in these markets drive much of the
rest of the fi rm's business activities.
Discussion questions
1.
Explain the difference between a product- or sales-oriented fi rm and a market-oriented
fi rm. Why is this difference important to an agribusiness manager?
2.
A key part of the SWOT analysis is evaluating the impact of broad market factors such
as government policies, international trade developments, new technologies, and so on.
For the agribusiness industry of your choice, identify fi ve key trends in the industry
marketplace and describe the opportunities and threats each trend represents for agri-
business fi rms in that industry.
3.
How can an agribusiness manager evaluate the strengths and weaknesses of their organ-
ization? Why is it important to understand what an agribusiness does well, and to under-
stand those areas where performance is not as strong?
4.
What is meant by a market segment? U-pick fruit and vegetable farms (farms where
customers harvest their own fruit and vegetables) probably appeal more to some market
segments than to others. Identify and describe two market segments that you believe
might be important to this type of agribusiness. What are the key needs of these two
segments that a marketing manager for the U-pick farm would need to focus on?
5.
Select three different products—one marketed online, one in a newspaper, one from a
farm magazine. Describe the market segment targeted for each product.
6.
Focusing on one of the target markets you identifi ed for the U-pick farm described in
Question 4, what position should the fi rm take in the market? Based on the key needs
you identifi ed for one of the market segments, write a positioning statement for the fi rm.
What key themes will you stress in your statement?
7.
Two types of competitive advantage are described in the chapter. Identify a food or
agribusiness fi rm pursuing a differential advantage. Also, identify a food or agribusi-
ness fi rm pursuing a cost advantage. Compare and contrast these two strategies. What is
similar about the two fi rms? What is different? Explain why you think each company
took that position.
8.
Using the food and agricultural trade press, or an online source, identify a fi rm com-
municating tangible value in its message and one communicating intangible value.
Compare and contrast these messages and how the fi rms are actually communicating
these two different messages.
