Agriculture Reference
In-Depth Information
corner. Such distribution systems gradually evolved as a result of changing products,
customers, and the competitive environment. And, this evolution can be expected to
continue, especially in light of the rapid developments in the e-commerce arena.
Summary
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. The set of decisions to accomplish this task is called the marketing mix.
Product decisions determine what products, services, and/or information are offered by
the agribusiness. The needs of the target market are at the center of any decision in this area.
Agribusiness marketers create a value bundle that will satisfy customer needs. This bundle
includes both the tangible attributes of the product or service as well as any intangible
benefi ts the fi rm may offer the customer. As products are introduced they move through a
systematic adoption and diffusion process. Each new product has a life cycle, passing
through distinct phases from its introduction to its demise. Both the adoption-diffusion
process and the product life cycle have important implications for market planning.
Pricing decisions are critical to marketing success. Pricing strategies are based on the
perceived value of the fi rm's products and services, the fi rm's cost of doing business,
the marketing goals of the fi rm, and competitive actions. A wide range of pricing strategies
are available, from simple rules of thumb, to far more sophisticated approaches which
involve carefully measuring the value delivered by the fi rm to the target market.
Promotional decisions determine how the agribusiness will communicate with the market.
These decisions involve determining the proper mix of advertising, sales support,
public relations, and personal selling needed to communicate the fi rm's desired image to the
market. Developing a market communications strategy involves identifying the target
audience, determining the communications objective, designing the message, selecting the
communications channel, and managing the implementation. A coordinated set of activities
which communicate the desired image to the target market is the goal of the agribusiness
marketer in this area.
Finally, place decisions concentrate on the methods and channels of distribution that will
optimize sales and profi ts. Logistics management plays an important role in place decisions
as fi rms determine how products will physically move from manufacturer to customer.
Issues of cost and effi ciency, timeliness, freshness, customer service, customer access, and
control all affect the choice of distribution channel by an agribusiness.
All elements of the marketing mix are critical decision areas for the marketing manager.
In the end, the marketing mix must deliver a consistent message—the position—to the target
market.
Discussion questions
1.
Many retail food stores also sell fl owers. Why do you suppose they do this? What
marketing decision does this illustrate? Besides food products and fl owers, what other
products or services do retail food stores offer? Why?
2.
Pick a food product or an agricultural input. Use the total product concept to break the
product down into the generic product, the expected product, the value-added product,
and the potential product. In what other ways could the food business or agribusiness
add value to the product you have chosen?
