AGEC 1003 Test 1 James Fanin

How marketing evolved:

Advantages of specialization and trade Use of central market Use of money Use of middlemen

Agribusiness is

Any business that affects the flow of food and fiber products from production to consumption

What is the mission of marketing?

Bridge the gap between conflicting needs of producers and consumers

Agri-Food system

Input sector Production sector (2.2 mil farms, 2% make 50% output) Commodity, Processing and Food Manufacturing

6 steps in decision making:

ID the problem Determine alternate course of action Analyze alternatives Select best alternatives Implement decision Follow up

3 methods for estimating market potential

Macroeconomic approach Population approach Consumption approach

Structure

Number of competing firms Homogeneity of products Cost of entry and exit

5 barriers to Consumer Satisfaction?

Ownership separation-can't trade item Time separation-not available when desired Value separation- not in the proper form Space separation-product location not accessible Info separation- lack of relevant information

4 functions of management

Planning Organizing Controlling Directing

4 P's/MKT Mix:

Product Price Place Promotion (advertising media) -Sales promotion - PR Efforts Direct=Edu. Programs; Indirect=News, press, funding drives

Conduct

Strategies firms pursue to gain competitive advantage Price change uncertainty No firm collision No unfair trade practices

Mission of marketing asks 5 questions:

What products to produce? How much to produce? When to start producing? Who should do the producing? For whom goods should be produced?

A good MKT Plan has

A clear business purpose A clear business objective

Prerequisites of Efficient economics

Free market economy Prices reflect full value of resources Higher degree of interaction between consumers and producers

To advertise effectively, you must

Hit your target market (ex. Monday night football is for ppl that chew, shave, drink, or smell good)

Marketing APPROACH:

A firms success does not come from producing a technically superior product, but from satisfying consumers needs. (ex. Pet rock)

4 Utilities of MKT

1) Form Utility- created by processing function 2) Place- created by transportation function 3) Time Utility- Created by storage function 4) Possession Utility-Created by exchange function

9 MKT Functions:

Buying function Selling function Storage function (time separation) Risk taking function (time separation) Transportation function (space separation) Processing function (value separation) Grades and standards function (info separation) Financing functions (form, time, and space sep.) Marketing information function (info separation)

Performance criteria:

Efficiency Fairness

Define marketing

The set of economic and behavioral activities that are involved in coordinating the various stages of economic activity from production to consumption.

Market potential

The total level of sales all firms can expect to receive from a target market