Agriculture Reference
In-Depth Information
•
Trying to describe the benefi ts of the goods from the
customer's perspective. Emphasize its special features
and selling points. Know or at least have an idea of what
the customers want or expect to help build customer
satisfaction and loyalty.
D
EVELOPING
A
M
ARKETING
B
UDGET
Operating an effective marketing plan requires money, so
funds must be allocated from the operating budget to cover
advertising, promotions, and all other costs associated with
marketing. In developing a marketing budget, managers
should account for advertising costs, the cost of collecting
research data, and costs associated with monitoring shifts
in the marketplace.
Marketing Strategies
P
RICING
S
TRATEGY
Pricing strategy may be on a cost-based strategy where the
price of the product is set at a specifi c percentage above
the costs associated with production, transportation, and
sale. It may alternately be a strategy of determining the
economic value of the product to the target customer. If
the economic value of the product exceeds the cost of
production, then a price can be set that lies somewhere
between the cost and the value of the product to the cus-
tomer. With goat meat products, as mentioned previously,
there is a signifi cant increase in demand and value associ-
ated with goat meat, which corresponds to certain ethnic
holidays. This should be accounted for in the determina-
tion of price. A study on dairy goat products, especially
those sold in the health and specialty food markets in the
U.K., showed that price did not have a large impact on
sales (Mowlem, 2005). The relative price insensitivity of
these two markets represents an area where high margins
can be gained to signifi cantly enhance the profi tability of
a dairy goat enterprise. Regardless of which strategy is
chosen, it is important to consider the strategies used by
competitors. It is important to thoroughly understand how
to price a product, determine if the prices are in line with
the competition, and decide what adjustments can be made
to bring them in line. The key to success is constantly
monitoring prices and operating costs to ensure profi ts.
Market Channels
Market channels or outlets for meat goats are slowly devel-
oping, points of origin are being better defi ned, and new
processing plants and marketing techniques are being
designed to better meet producer and consumer needs.
Many areas of the U.S. have local markets for goats, but
the infrastructure to market goats is still new and develop-
ing. Goat milk is used locally throughout the world and is
only minimally traded globally (FAOSTAT, 2005). The
dairy goat industry is more established in the U.S. and
Europe compared with other goat enteprises. In the U.S.,
the dairy goat industry is supported through a collaborative
effort of the USDA and the American Dairy Goat
Association. The fi ber goat industry (cashmere and mohair)
is an established industry that is going through hard times
due to the global economy and loss of mohair subsidies in
the U.S. Goat meat is traded globally and is the sixth most
traded meat after pork, chicken, beef, lamb, and turkey.
Market Structure
The marketing structure for goat products is not well
developed in the U.S. and is very complex. Figure 18.1
Producer
D
EVELOPING
AN
E
FFECTIVE
P
ROMOTIONAL
S
TRATEGY
Making use of various advertising media for promoting the
business and identifying those that most effectively
promote the business are important for success. Develop
material that clearly identifi es the product, its location, and
price to demonstrate the ability to compete.
Direct to
Consumer
*On farm
*Farmer
s
Market
Auction
Market,
Wholesalers
Processors
Large/
Small
L
OCATION
(P
LACE
)
OF
B
USINESS
Describing the location of the business or where the prod-
ucts are sold from the customer's perspective is also
important. Factors such as advantage, convenience, access
to public transportation, safety of the area, etc., must be
included. The location of the business should be built
around the customers, should be accessible, and should
provide a sense of security.
Wholesalers
Processors
Direct to
*Consumer
*Retailers
*Restaurants
Figure 18.1
Goat meat market structure
schematic.
