Agriculture Reference
In-Depth Information
7
The marketing mix
Objectives
•
Discuss the elements of the marketing mix
•
Explore how agribusinesses create value for their customers
•
Review product adoption and product life cycles in agribusiness markets
•
Identify key features of agribusiness pricing strategies
•
Summarize various methods of product promotion and market communications
•
Explore the role of personal sales in the marketing strategy of an agribusiness
•
Examine channels of distribution in agribusiness
Introduction
When an agribusiness marketer thoroughly understands the needs of the target market and
has identifi ed the appropriate position for their product or organization, the truly creative
work begins. At this point, the agribusiness marketer must take a general idea such as
“Nothing Runs Like a Deere,” turn that idea into a tangible product/service/information
offering, and then communicate the desired position to the target market.
In this chapter, we'll examine how agribusiness marketers must translate the position
they want to create for the target market into a product/service/information bundle that
serves customer needs and communicates the desired image. This set of decisions involved
in accomplishing this task is called the marketing mix.
The marketing mix
Countless decisions face today's agribusiness marketer—particularly once the target
markets are identifi ed and a company position is chosen. As an example, let's use large
commercial vegetable growers in the San Joaquin Valley of California as a potential target
market for John Deere. What specifi c products, services, and information will be provided
to these growers? How will this bundle be priced? How will the value provided by these
products and services be communicated to the target market? What is the best distribution
channel to use to effectively service this group of large California growers? This set of criti-
cal decisions—the four Ps of marketing: product, price, promotion, and place—is called the
marketing mix
(
Figure 7.
1). The marketing mix is that combination of price, product, pro-
motion, and place strategies implemented by a fi rm to support a specifi c position in the
market. The ultimate job of the agribusiness marketer is to craft a marketing mix consistent
with the fi rm's desired position that creates good value for the customer.
