AGEC 340 Exam 1 Brief Overview
Two new Sectors of agriculture:
Ag input supply sector, commodity/food processing sector
Six Components of the Agri-food Sector
Input Suppliers, Producers, Commodity Processors, Food Manufacturers, Food Distributors, Food Retailers
Grade & Standards and market info Overcome __________ separation.
Info
______________ _______________ is the total amount of sales possible in a target market for ALL firms.
Market Potential
____________ _______________ is the % of total sales from the target market achieved by a single firm.
Market Share
Two economic principles that drive consumer behavior:
Maximizing Utility and Diminishing Marginal Utility
____________ _______________ helps reduce the impact of short term fluctuations in data by plotting the average value of several data points, rather than every single one.
Moving Average
Buying and selling overcome ___________________ separation.
Ownership
5 Barriers to Consumer Satisfaction:
Ownership, Time, Space, Value, & Information Separation
The 4 functions of management are:
Planning, controlling, organizing, directing
Four P's of Marketing Mix:
Product, Price, Place, Promotion
Marketing Approach:
Profitably satisfying consumers' needs.
A ___________ _______________ is the level of sales a single firm can expect from a target market.
Sales Forecast
Highest level of food hierarchy:
Social status/causes
When using forecasts, a manager must: - ______________ the assumptions behind the forecast - Frequently ______________ the forecast - Use ___________ outcomes
Understand, update, alternative
How do you remove inflation?
With the price index
Mission of Marketing:
bridging the gap between the conflicting needs of producers and consumers.
Target Marketing operates on the idea that all consumers have ________________________.
different needs
Directing Function:
effective leadership
Economic well-being: ___________ economic well being of all its stakeholders.
enhance
Organizing Function:
setting up a business
Transportation and financing overcome ____________ separation.
space
Ownership separation is...
the inability to transfer ownership
Time separation is when...
the product is not available when desired
Value Separation is when...
the product is not in the form consumers desire
Space Separation is when...
the product is not where consumers need it
Effectiveness: Do ___ _____ ______.
the right things
Mass Marketing operates on the idea that all consumers have _____________________________.
the same needs
Info separation is when...
there is lack of information about the product
Efficiency: Do _____ ______.
things well
Storage, Financing and risk taking overcome _____________ separation.
time
Processing and financing overcome ___________ separation.
value
The 3 E's can be achieved by managers when their firms are the first choice of their _________, ____________, and _____________.
Customers, Employees, Investors
Two criteria used to evaluate performance of a marketing system:
Efficiency and Fairness
3 E's of Management:
Efficiency+Effectiveness+Economic Well Being
The 3 prerequisites to an efficient economic system are: - a __________ _____________ economy - prices reflect the __________ ____________ of resources - a high degree of ____________ between ________ & ___________
free market, full value, efficiency, producers, consumers
Controlling Function:
giving feedback on firm's progress
Productivity gains in farms have led to...
lower retail food prices
What are the three approaches for estimating Market Potential?
macroeconomic approach, population approach, consumption approach
Planning Function:
marketing, forecasting, budgeting
The goal of every manager is to...
maximize long run profits of the firm, by profitably satisfying consumer needs
Lowest level of food hierarchy:
nutritious, safe, and affordable
