Tedlowidentifies four stages in the evolution of market segmentation:
Market Intelligence Each of these functions add value to the product and they require inputs, so they incur costs. As long as the value added to the product is positive, most firms or entrepreneurs will find it profitable to compete to supply the service.
The marketing concept holds that the needs of the customer are of paramount importance. A producer can be said to have adopted a market orientation when production is purposely planned to meet specific demands or market opportunities.
Thus a contract farmer who wishes to meet the needs of a food processor manufacturing sorghum-based malted drinks will only purchase improved sorghum seed. Improving quality inevitably increases the associated costs.
In some cases the market is insensitive to improvements in quality, beyond some threshold level, does not earn a premium price. The most successful agribusiness is the one which yields the largest difference between prices obtained and costs incurred.
Of the nine functions listed, this is probably the one which people find least difficulty in associating with marketing. Indeed to many the terms marketing and selling are synonymous.
Their immediate aim is to sell what they can make rather than to make what they can sell. This is not marketing. Enterprises adopt the marketing philosophy as a result of becoming aware that their own long term objectives can only be realised by consistently providing customer satisfaction.
Whereas selling might create a consumer, marketing is about creating a customer. The difference is that marketing is about establishing and maintaining long term relationships with customers.
Selling is part of marketing in the same way that promotion, advertising and merchandising are components, or sub-components of the marketing mix. These all directed towards persuasion and are collectively known as marketing communications; one of the four elements of the marketing mix.
An inherent characteristic of agricultural production is that it is seasonal whilst demand is generally continous throughout the year.
Hence the need for storage to allow a smooth, and as far as possible, uninterrupted flow of product into the market. Because he is dealing with a biological product the grower does not enjoy the same flexibility as his manufacturing counterpart in being able to adjust the timing of supply to match demand.
It would be an exaggeration to suggest that a manufacturer can turn production on and off to meet demand - they too have their constraints- but they have more alternatives than does the agricultural producer. A manufacturer can, for example, work overtime, sub-contract work, and over a longer time horizon, the manufacturer can increase or decrease productive capacity to match the strength of demand.
In agriculture, and especially in LDCs, supply often exceeds demand in the immediate post-harvest period. The glut reduces producer prices and wastage rates can be extremely high. For much of the reminder of the period before the next harvest, the product can be in short supply with traders and consumers having to pay premium prices to secure whatever scarce supplies are to be had.Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal achieving a sustainable competitive advantage.
Strategic planning involves an analysis of the company's strategic initial situation prior to the formulation, evaluation and selection of market-oriented competitive position that contributes to the .
Marketing Management, 14e (Kotler/Keller) Chapter 12 Setting Product Strategy 1) A _____ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.5/5(1).
View Notes - kotler12_tif from BUSI at Liberty University. Chapter Setting Product Strategy GENERAL CONCEPT QUESTIONS Multiple Choice 1. Marketing planning begins with the formulation of an%(6).
Please note - this is an archived publication. Commissioner’s foreword. This publication is one in a series designed to stimulate debate about contemporary government challenges.
PowerPoint Presentation: 1- 12 Table Demand States and Marketing Tasks 1. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it—vaccinations, dental work, vasectomies, and gallbladder operations, for instance.
Chapter 12 Chapter 12 - Media Planning Essentials Scenario Appleberry Farm Organic Jam has remained No. 1 one in the jam and jelly food category for several years Although still a distant No.
2 in this category, Blackberry Valley Organic Jam is gaining on Appleberry. Appleberry had $39,, in sales last year, while Blackberry had only .