Agriculture Reference
In-Depth Information
An advertisement can motivate a customer to seek out the product, or can at least serve as a
reminder of the product's existence. Advertising also performs an educational function,
helping customers to learn more about the company, the product and its use. Finally, adver-
tising can reinforce the value of a purchase that has already been made. Research suggests
that recent purchasers of a product are among those most likely to read an advertisement
for that product.
Much advertising is initiated and sponsored by manufacturers of agribusiness products.
Some of this advertising is oriented toward the dealer or distributor to infl uence ordering and
selling decisions. But much manufacturer-sponsored advertising is aimed toward the prod-
uct's end-user; in this case, the farmer or the consumer. The idea is to encourage ultimate
demand to “pull the product through the pipeline,” hence the term pull strategy.
Geographically broad advertising is usually the sole responsibility of the manufacturer.
But local advertising, cooperatively sponsored by the manufacturer and the local
dealer or distributor and called
cooperative advertising
, is also very common in agribusi-
ness. The manufacturer, with the name of the local agribusiness inserted and the cost jointly
shared, usually prepares local advertisements. The manufacturer may also supply the local
agribusiness with fl yers, posters, or product brochures, and may even send direct-mail adver-
tisements, with the local business name imprinted on the advertisement, to local customers.
Helping dealers develop web sites that ultimately promote the manufacturer's products and
services is also an important strategy.
There are a wide variety of communication media ready to carry the agribusiness's mes-
sage. Television is used heavily by national food manufacturers, but much less used by
manufacturers of farm inputs. Radio is used more commonly by local agribusinesses, since
it is less expensive and can target the farm audience by tying into agricultural programs such
as market news and farm broadcasts.
Magazines are an important media for both food companies and agricultural input com-
panies. A variety of local, regional, and national magazines provide an important method
of communication with customers. An enormous number of specialty magazines appealing
to tightly defi ned groups enable marketers to focus on publications of specifi c interest to
their target market. Likewise, agricultural input fi rms can purchase advertisements in gen-
eral farm publications serving all of agriculture or very specifi c publications serving only
particular types of producers. Trade magazines geared to specifi c types of agribusinesses are
also widely used to communicate with dealers and distributors. Many of these publications
are supported by an aggressive web presence with engaging websites, daily or weekly web-
letters, blogs or other feedback mechanisms that provide a vehicle for dialogue about a story
or issue, and video and audio presentation of news.
Newspapers are an especially important medium for both food retailers and food manu-
facturers. Inserts and coupons represent an important form of advertising for both groups.
Agriculture-specifi c newspapers are another important medium for agribusinesses. They
often have strong followings of agricultural producers and of other agribusiness profession-
als. Likewise, local agribusiness fi rms usually fi nd advertising in local newspapers to be a
cost-effective way to reach their clientele.
Direct mail remains an important media for agribusiness marketers. Agribusiness market-
ers can build huge databases containing detailed information on customers and prospects.
Using these databases, marketers can tightly defi ne targeted direct-mail promotions to very
specifi c groups of individuals. For example, a feed company might desire to promote a new
feed program only to Iowa pork producers with at least 1,000 sows, who use all-in/all-out
production methods. Using the fi rm's database, contacting these groups with a letter or a
