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