Chapter 4
Marketing
Management
Five approaches to
Marketing
Production Approach- produce as much as
possible at lowest possible cost
Product Approach- produce high quality
product and the world will beat a path to your
door.
marketing Approach- produce a product that
fills a consumer need, price it correctly, make
readily available and promote it properly and
the marketing success will follow
Societal Marketing Approach- extend the
marketing approach to consumer's and
society’s well-being
Agribusiness and the
Marketing Approach the old
way
Functional approach “The nine
marketing functions”
Commodity approach “single
commodity from the farm to the
fork”
Institutional Approach “examine
the roles of the middleman”
Use of the Marketing
Approach the new way
Give direction to production
Identifying consumers, wants
Involve all part of organizational
levels
What is Marketing
Marketing is the ability to identify and
satisfy customer needs at a profit
Marketing concentrates on
customer/clients and what they need
or want
customers are the essence of marketing
- they are the source of sales and profits
Aim of Marketing
The aim of Marketing is to have:
the right product or service
at the right price
at the right place
at the right time
Marketing Mix
product
The first "P" of the marketing mix
deals with the product.
The positioning, packaging, etc.
The Marketing Mix
PRODUCT - what is it that you are going to sell.
Product Mix - range of PRODUCTS or SERVICES
offered for sale
Product Features- color, packaging, quality,
brand name
Product Support - maintenance, after-sales
Service, pre-sale like advice and Quotations
Price
The second "P" of the marketing mix is
price.
There are several options to consider
regarding price:
1) price matching, 2) price making, 3)
introductory penetration pricing, and 4)
a competitive upgrade price strategy.
The Marketing Mix
Pricing - not just how much you charge for a
product but how the price fits your target
market and the image you wish to develop.
Pricing Methods you choose depends on:
competition in the market and your
marketing strategies
demand for your product
controlled pricing
your costs
perceived value
Place
The 3rd "P" of the marketing mix
deals with product placement--the
width of distribution
The Marketing Mix
Distribution - how your products or
services reach your customers
Distribution Methods
Customers come to you
You take the product/service direct to
the customer
You use an agent merchant franchise
etc. to reach your customer
The Marketing Mix
LOCATION - the place of the business
"locate your business where the
market is".
Factors in Selecting an area:
Customer accessibility
Adequacy of transport/communication
facilities
Supply of skilled labor
Population Trends
Promotion
Our promotions are designed to
create demand.
PR, Online Marketing, Advertising,
Direct Marketing and Event Marketing.
The Marketing Mix
ADVERTISING and PROMOTION -
are aimed at Making potential
customers aware of the existence
of your business, your product and
services and to encourage them to
buy from you.
The Marketing Mix
Different Methods of promoting your product
or service
Public Relations - establishing a favorable
image
Publicity - feeding media of information that
is Of public interest (free advertisement)
Sales Promotions
Merchandising - point-of-sale display
The Marketing Mix
Advertising - purpose is to inform
people how best they can satisfy
their needs and wants and how
they can benefit by buying your
goods and services.
The Marketing Mix
What advertising can do
Principle of AIDA
A - Attention
I - Interest
D- Desire
A - Action
The Marketing Mix
Advertising Options
Yellow Pages
Local Press Directory
General Press
Radio
Brochures
Television
Catalogues/
Cinema
Letterbox drops
Telephone
Direct Mail
Outdoor Advertising
Trade Journals
Billboards
Magazines
Business Cards
Directories
Internet
The Business Plan
The Values Consumer Needs
The Firm’s Purpose:
What the firm is going to do
The Firm’s Objective:
How the firm is going to accomplish its purpose
The Marketing Plan
• Establish the marketing mix
• Analyze the current market situation, the
opportunities and issues, the implementation,
finance, and the control
Analyzing Market Potential
The transition from mass to target
marketing
Estimating market potential
The macroeconomic approach
The population approach
The consumption approach
Discussion Questions
1. Explain why an agribusiness manager should be
interested in having a clear purpose and
objective.
2. Explain the relationship between marketing and
the four functions of management.
3. Describe and explain how the role of marketing
has changed the way agribusinesses operate.
4. Explain why it is important to adopt the
marketing approach to be successful in
agribusiness.
Discussion Questions
5. Describe the business planning
process and explain the role of
consumer needs in this process.
6. The unifying theme of this book is
maximizing the long-term profits of
the firm by profitably satisfying
consumer needs. Explain this in your
own words. Do you agree or disagree
with it? Explain why you feel this way.
Discussion Questions
7. In this chapter you found the phrase
“by meeting a consumer need the firm
earns its right to make a profit.”
Explain this in your words. Do you
agree with this statement? Explain
why you feel this way.
Discussion Questions
8. The use of the marketing approach in an
agribusiness leads to greater economic
efficiency and greater consumer
satisfaction. Do you agree or disagree
with this statement? Explain why you
feel this way.
9. Identify the 4 P’s of the marketing mix
and explain why they are called
controllable. Explain why you would
want to control them.
Discussion Questions
10. What is the difference between
business planning and strategic
planning?
11. Describe how information
technology has changed the
marketing management process.
Explain your answer.
