Agriculture Reference
In-Depth Information
their activities, the number of calls they made, and market conditions. Usually, they must fi ll
out order forms, take inventory, and collect special information for company surveys. Most
salespeople are asked to prepare annual sales forecasts for their area and to develop their
expense-budget requests. Salespeople must keep accurate expense records and fi ll out
expense statements for reimbursement. All this is typically not as time consuming as it
sounds, and when handled properly it can clear the way for more immediately productive
duties.
Computers have greatly facilitated this planning and reporting process. Both sales repre-
sentatives and the company benefi t by having more information in a timely manner. In many
agribusiness fi rms, the laptop computer is a fundamental tool for the sales representative and
database software may support an intensive customer relationship management program.
Reports and records may be kept on the computer, orders may be placed over the Internet,
and customer records may be accessed to prepare for sales calls. Salespeople are expected to
be “computer savvy”—using computers and the Internet to communicate with the company
and with their customers.
As seen above, personal selling may well be the most important element of the fi rm's mar-
keting strategy. We have only scratched the surface of the important role these individuals
play and the strategies fi rms use to develop and implement an effective sales force manage-
ment strategy.
Place decisions
Every agribusiness must decide how to move products to its customers.
Marketing channels
are systematic ways of transferring both the physical product and the ownership to the
customer as effi ciently as possible. In many ways, the channel is a communication system
linking the manufacturer or producer to the customer. Consumer-demand signals fl ow
through the distribution system to manufacturers, while supply and availability signals in the
form of prices and costs fl ow to consumers. In many cases, independent agribusinesses such
as wholesalers or distributors facilitate the transfer of ownership and physical product. In
other cases, manufacturers fi nd it more effi cient to sell directly to the customer, handling
these
distribution
functions inside the organization.
Physical distribution systems (PDS)
Decisions on
physical distribution systems (PDS)
are particularly important to much of
agribusiness, since so many farm supplies and food items are bulky and highly seasonal in
demand. Literally millions of tons of phosphate fertilizers must be moved from Florida
mines, and millions of tons of potash fertilizers must be shipped from western Canada, to
farms and ranches all over the United States and Canada. Likewise, highly perishable crops
like lettuce, tomatoes, and peppers must fi nd their way from California, Arizona, Texas, and
Florida to food stores all over the United States. At the same time, millions of bushels of
grain must be moved from local storage to the coasts for shipment to overseas markets.
The costs of physical distribution activities are high. And, in season, rail car and truck
shortages can cause spot supply shortages, creating bottlenecks for agribusiness products in
the distribution system. Consequently, a fi rm's marketing strategy incorporates plans for
assuring a robust physical distribution system. Policies encouraging larger storage facilities
at local levels, company ownership of rail cars, company-operated truck fl eets, unit trains
