Agriculture
Marketing
Arun GC
[email protected]
An overall master plan for the organisation and its
Corporate
divisions setting out what business(es) it intends
plans
to be in over a given time horizon.
Marketing planning
Plans for each division of an organisation
Divisional
showing how it intends to carry out the corporate
plans
plan and make its contribution to it.
Plans for a series of products within a product
Product line
range, for example plans to increase a range of
plans
canned fruits.
Plans for individual products within a range. The
Product
decision may be to delete, expand or develop the
plans
product.
Plans for an individual brand, for example market
Brand plans
repositioning, repackage or deletion of brand.
Product/ Plans which spell out what the organisation plans
market plans do in each product/market it services.
Plans for advertising, selling and market research
Functional
departments. It involves decisions on budgets,
plans
resources and functions.
Contents of the marketing plan
• Executive summary • Monitoring, evaluating and controlling the
• Corporate purpose marketing planning
• Basic mission • Marketing controls
• The strategic marketing audit (SWOT) • Marketing plan control
• Objectives • Sales analysis
• Strategic objective • Market share analysis
• Strategic focus • Market expense to sales ratio
• Customer targets • Customer attitude tracking
• Core strategy • Profitability control
• The marketing mix • Marketing profitability analysis
• Action plan • Efficiency Control
Organisational objectives and their measurement
Basic strategic options Customer targets
Growers in Ivory Coast specialising in banana
Product/market
production which is then exclusively sold into French
concentration
wholesale markets.
In China vegetable traders do not handle other
Product
products, not even fruit. The reverse is also true:
specialisation
Chinese fruit traders do not handle vegetables.
Lesotho's production of canned white asparagus sold
Market at premium prices into specialist food stores whose
specialisation customers are in the higher income categories, in high
income countries such as Belgium and Germany.
Colombian flower producers grow long stemmed
Selective
carnations for the North American market and short
specialisation
stemmed carnations for the European market.
John Deere manufactures a full line of agricultural
Full market equipment and seeks to market it, either directly or
coverage through agents, in every country in the world that has
an agricultural industry.
Theoretical advertising
Market coverage strategies response curve
The planning execution and control cycle
The different levels of marketing controls
Types of marketing control
Prime
Type of Control Purpose of Control Approaches
Responsibility
Sales analysis
Market-share analysis Sales-to-
Top management To examine whether the results
Annual plan control expense ratios
Middle management are being achieved
Financial analysis Attitude
tracking
Profitability by product territory
To examine where the company
Profitability control Marketing controller Customer group trade
is making and losing money
Channel order size
Line and staff To evaluate and improve the Efficiency of sales force
Efficiency control management spending efficiency and impact of Advertising sales promotion
Marketing controller marketing expenditures distribution
To examine whether the
Marketing effectiveness rating
Top management company is pursuing its best
Strategic control instrument
Marketing auditor opportunities with respect to
Marketing audit
markets, products, and channels
Marketing plan control
What do we
want to
achieve
Sales analysis
Canned Produce Planned Actual Variance
Sales (units) 5,000,000 5,500,000 + 5000,000
Price per unit ($) 3.50 3.40 - 0.10
Total revenues ($) 17,500,000 18,700,000 + 1,200,000
Total market (units) 10,000,000 12,000,000 + 2,000,000
Share of market 50% 46% - 4%
Variable costs @ $ 2.5 per
12,500,000 13,750,000 + 1,250,000
unit
Profit contribution ($) 5,000,000 4,950,00 - 50,000
8/9/2019
11 ADD A FOOTER
Market share analysis
Marketing mix combinations and results
Lorenz curves
The 80/20 principle enjoys wide acceptance and applicability in marketing.
Typically, this principle manifests itself in statements like, “Eighty percent of an
organization's profits arise from only twenty percent of the products within the
product range”. Or:-
• 20% of stock items account for 80% of inventory costs, or
• 20% of customers provide 80% of sales volumes, revenues and/or profits, or
• 20% of the distribution outlets served provide 80% of consumer sales
New Product Development
Rising stars: Products or businesses located in this
quadrant will require large amounts of cash to sustain
Portfolio analysis their position in this market and to maintain the
momentum of market growth. Even though rising stars
may generate high sales volumes and revenues, these
are likely to be outstripped by the amounts of cash
required to support the product or business during the
fast growth stage. At this stage substantial amounts of
money are likely to be necessary to create awareness of
the new product and to establish a distribution network,
etc. Therefore, rising stars tend to be net cash
absorbers. This is perhaps better appreciated if
businesses are aware of the product life cycle (PLC)
concept. The concept applies to products at an industry
level rather than at an individual company or brand
level.
Portfolio Analysis …
• Cash cows: Products or businesses located in the bottom left quadrant are those with high
market shares in low growth markets. Because the market is mature, the cash requirement is
lower and products or businesses in this quadrant become net cash generators. Where there
are cash cows, there is the danger of complacency, with little thought being given to the need
for forward planning of the business portfolio.
• Problem children: Low share businesses in high growth markets represent problem children
(elsewhere known as wildcats or question marks). Problem children are cash absorbers, in the
short-run, because of the resources required to increase their market share (e.g. advertising,
special promotions, discounts etc.). If these products cannot be converted to rising stars, they
will become a long term, cash absorbing sick dog when the market matures. Only so many
‘problem children’ can be supported at any point in time and it may be better, in the case of at
least some of them, if they are sold off or starved of resources and milked for whatever cash
they can generate.
• Sick dogs: Low-share businesses, in low growth markets, exhibit weak performance and so are
termed sick dogs. Such businesses yield very low profits, and sometimes losses. Because
market growth is slow, attempts to increase their market share are usually very costly and so it
is rarely attempted. Sick dogs are net cash absorbers and can become a perpetual ‘cash trap’.
The product life cycle
The new product development process
Idea generation
Internal External
R & D department, committee or task
Suppliers or market intermediaries
force
Top executives Customers
Sales representatives Competition
Production staff Freelance inventors
Other company employees Consultants
Noncompetitive firms Patent applications
The public
checklist for screening new product ideas
Concept testing
• Concept 1: A snack food for people who, on specific occasions, find that they have
insufficient time to consume a full meal.
• Concept 2: A food high in energy, protein and minerals capable of effecting a rapid recovery
in malnourished children as part of a nutrition intervention programme.
• Concept 3: An easily digested and nutritious food for people whose medical condition
prevents them from eating solid foods.
• Concept 4: A health food intended for people active in sports.
• Concept 5: A food for babies to sustain health and promote rapid growth.
Typical questions that are addressed through a concept test are
• Do they understand the concept?
• Do they believe the concept?
• Is the concept different from other products in an important way?
• Do they like or dislike the concept and why?
• What could be done to make the product more acceptable?
• How would they like to see the product (colour, size, etc.)?
• Would they try it?
• What would be their pattern of usage in terms of purpose, frequency, place of usage etc.?
• Where would they expect to purchase such a product?
• With which existing products do they tend to compare this product concept?
Business analysis
Market testing
• market share of product and/or volume estimates
• who buys the product, how often and for what purpose
• from where purchases are made, and at what price
• what response was made by competitors
• what effect the new item has on existing product lines or brands,
including one's own.
Market testing
Step 1: Define the objectives
Step 2: Plan strategy
Step 3: Determine methodology
Step 4: Select markets
Step 5: Execute the plan
Step 6: Evaluate the results
Commercialization
• The development of a detailed marketing plan.
• Allocation of authority and responsibility for carrying out the marketing plan and
managing the product.
• A detailed timetable for launching the product. Product success depends upon timing
and coordinating.
• The design and implementation of an information system to audit and report on the
product, its progress and problems. With a steady flow of management information,
the product manager can adjust and modify the marketing mix.
The adoption process
Consumer’s
Behaviour
Endogenous and exogenous factors
Exogenous influences on buyer behaviour
• Culture
• Social status
• Reference groups
• Families as reference groups
Endogenous influences on buyer behaviour
• Needs and motives • Selective retention
• Perceptions • Learning
• Selective attention • Attitudes
• Selective distortion • Personality and self- concept
Desired and actual states
five-stage model of the buying process
Lifestyle segmentation
Product
Management
Branding decisions
Pricing
Decisions
The process of price determination
Pricing objectives
Strategic marketing objectives
• Price stabilization
• Supporting other products
• Maintaining cash flow
• Target markets
• Product positioning
The laws of supply and demand
Shifts in the demand curve
Elasticity of demand
Possible market responses to a doubling of the price of a
commodity
Cross-price elasticity of demand
Pricing strategies
Breakeven analysis
• Cost-plus methods of price determination
Pricing strategies…
Psychological pricing
• Market-oriented pricing
Quality pricing
• Discriminatory pricing
Odd pricing
• Segmentation pricing
Price Lining
• Product-form pricing
Customary pricing
• Time pricing
Geographical pricing
• FOB (free on board) pricing
• Uniform delivered pricing
• Zone pricing
• Freight absorption pricing
• Promotional pricing
Thank You
