AGEC 340: Exam 1

Assesses how the accomplishment of the marketing plan's purpose and objective will allow the firm to achieve its financial objectives

Budgetting

Strategic Plan

Business vision statement Strategic Plan Implementation of strategic plan

Manager's Primary Objective

Maximize the long-run profits of the firm by satisfying customer's needs

Converts the plans into reality

Organizing

Optimum output levels at min. &/unit Reasonable profits Innovations Investment

Performance

Put firm in best position relative to future business conditions & customer demands

Planning

Time Separation

Product is not available when desired

Value Separation

Product is not in the form consumers desire

Space Separation

Product is not where consumers need it

Marketing Plan

Statement of the firm's objective

SWOT

Strengths Weaknesses Opportunities Threats

To be fair & efficient: Sufficient number of firms in market that are large enough to have low operating costs Few barriers Differentiate products

Structure

Operating Cash Flow Capital Expenditure

Types of Budgets

Strategic Tactical Contingency

Types of Planning

Return on Invested Capital

best measure of long-un efficiency and effectiveness

Form Utility

comes from processing product into a form more desirable to consumers

Possession Utility

facilitates process of gaining ownership of product so buyers can use it fully

Budget

financial plan of management's realistic expectations for the business's future

Tactical Planning

short-term plans consistent with strategic plan

Cash Flow Budget

summarizes amount and timing of cash in and out of business for next period

Operating Budget

summarizes expected sales, production and profit and related costs for next budget period

Capital Expenditure Budget

summarizes plant, property and equipment expenses for next period

Elasticity

tells whether revenue will increase/decrease from price changes

Planning Organizing Controlling Directing

4 Functions of Management

Product Price Place Promotion

4 P's of Marketing

Form Utility Place Utility Time Utility Possession Utility

4 Utilities of Marketing

1. Ownership separation 2. Time separation 3. Space separation 4. Value separation 5. Info separation

5 Barriers to Consumer Satisfaction

1. Identify problem 2. Determine alternative courses 3. Analyze alternatives 4. Select best alternative 5. Implement decision 6. Follow up

6 Steps of Decision Making

Buying & Selling Function Storage Function Transportation Function Processing Function Facilitating Function Grades & Standards Function

9 Marketing Functions

Transportation Function

overcomes separation of space by moving product where it is produced to where consumers desire

Storage Function

overcomes the separation of time by maintaining product in good condition between production and final sale

Processing Function

overcomes value separation by transforming a commodity into a form that has greater value to consumers

Strategic Planning

preparation for future business conditions

Contingency Planning

preparation for the unexpected

Efficient Effective Enhance

3 E's of Long-Run Business Success

Time Utility

results from storing product until consumer needs it

Superior Efficiency Superior Quality Superior Innovation Superior Customer Responsiveness

4 Elements of Sustainable Competitive Advantage

To be fair & efficient: Number of firms in market to see price change trends No unjustified price discrimination No collusion on pricing No unfair trade Truthful claims Product differentiation

Conduct

Feedback on the firm's progress toward the goals set in planning

Controlling

Where the planning, organizing and controlling functions are brought together to turn plan into reality

Directing

Long-Run Business Success

Efficiency+Effectiveness+Economic Well Being

Price of product Seasonality Price of competitor Price of complement Income Population Taste & Prefs

Factors Affecting Consumer Demand

Goal of Agribusiness Management

To integrate science and technology to maximize benefits to farmers and consumers

Efficiency

how efficiently goods and services flow from producers to consumers

Fairness

how well the marketing system meets the consumer needs

Ownership Separation

inability to transfer ownership

Place Utility

involves transporting product to location desired by consumers

Info Separation

lack of info about product

Facilitating Functions

make the system work more efficiently

Agribusiness Manager's Goal

maximize the long-run profits of the firm by profitably satisfying customers' needs

Buying & Selling Function

overcome the separation of ownership by transferring legal title of the product from the seller to buyer

Grades & Standards Function

overcomes info separation by providing a class system that requires adherence to specific descriptions of commodities and products