Agriculture Reference
In-Depth Information
are analyzed; current and future market conditions are reviewed; distinctive competencies
(i.e., areas of unique strength relative to competition) can be recognized; current marketing
programs are evaluated and execution of the marketing program is considered; and fi nally,
the human resources available and their organization are studied.
Sales forecasting is a highly useful marketing tool that is especially valuable in agribusi-
ness because of the volatility of agricultural markets. It usually begins with general
economic forecasts and becomes more and more specifi c as the forecaster moves toward
forecasting sales for an individual product or service. A variety of tools is used for forecast-
ing sales of individual products including trend forecasts, build-up forecasts, analysis
of scanner data, the Delphi Approach, and test markets. Each of these techniques has
advantages and disadvantages, so agribusiness marketers must understand each to know
when each may be the appropriate tool to use.
Marketing managers must also analyze competition and monitor their marketing
programs. Formal competitor strength and weakness analysis is a useful tool that suggests
strategic marketing approaches for capitalizing on the vulnerabilities of a competitor, or
addressing a competitive threat.
Various marketing research methods provide invaluable information for developing mar-
keting plans. Customer surveys and personal and group interviews are popular methods.
Focus group interviews are a commonly used technique for collecting information on custom-
ers. Internal transactions data can yield many insights into customer behavior. Simple tools,
such as pinpointing customers by type or size on a map, can also provide much information.
In the end, marketing managers must synthesize information from a variety of sources to
assist them in developing and executing a successful marketing program.
Discussion questions
1. What is the purpose of a marketing audit? Why is it important to have outsiders involved
in marketing audits?
2. Why are sales forecasts particularly diffi cult to make in food and agribusiness fi rms?
3. What is meant by derived demand? Explain why the demand for animal health products
is a derived demand.
4. Your cooperative is evaluating a new package of precision agricultural services they
may offer to patron-members. This package includes an extensive fi eld-mapping pro-
gram, linking soil fertility information with yield monitor information, crop scouting in
the summer months, and personal consultation in the winter. The package will require a
signifi cant investment of both fi nancial and human resources. What data will the coop-
erative need to collect to make the go/no-go decision on this package? How should they
collect this data?
5. What are the benefi ts of preparing a strengths and weaknesses analysis of competitors?
6. What are focus group interviews? Can a small fi rm use this tool? Why or why not? What
are some important limitations of the focus group interview?
7. Give some of the reasons why customer maps often show customers clustered in
particular areas. What can be done about this situation?
Case study: a big assignment
“Yes, I have had an agribusiness course,” Leslie Turner said as she looked across the large
desk. Her new boss was sitting on the other side of that desk, and, frankly, Leslie wondered
 
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