AGEC 340 Exam 3

What is the marketing concept?

Anticipating the needs of targeted customers and finding ways to meet those needs profitably

Stages of innovations

Awareness - people have heard about the product but lack sufficient information to make a purchasing decision Interest - a potential customer becomes interested enough to learn more about the product Evaluation - the customer decides whether or not to try the product Trial - the customer samples the product Adoption - the customer integrates the product into a regular-use pattern

Marketing Goals

Based on the financial objectives, but must be converted into marketing terms Goals should be ranked

Understand product adoption speeds

Innovators- first 2.5% of people to try products Early Adopters- 13.5 percent of a market (opinion leaders) Early Majority- 34 % of market (important) Late Majority- 34 % of market (important) Laggards- 16% of market

Why does satisfying a customers need give a business the right to profit?

If a business is able to satisfy the customers needs profitably and efficiently they earn the right to long run profits.**

Role of marketing in the economy?

Increase the level of consumer satisfaction in the economy

Marketing Terminology

Market Potential- total volume of sales possible for all firms Sales Forecast- how much sales a firm can expect to receive Market Share- how much the firm actually sold Sales Forecast ---------------- = Market Share Market Potential

What is the role of marketing in Agribusiness?

Marketing resolves the conflicting needs of producers and consumers.

Four Macro Economic Factors

National Income, GDP, Inflation, Unemployment, Interest rates

Fundamental concept of product positioning

Placing the product within the desired target market to raise awareness about the product or create an image in the consumers mind about the product

Discuss the elements of the marketing mix

Product-what product to sell Place - where to sell it Promotion- how to let consumers know about it Price- how much to sell the product for

Marketing relationship to organizing...

Purpose: Guides the execution of the plan Marketing's Relationship: Guides how the plan is organized

Marketing relationship to controlling...

Purpose: Provides feedback on plan's process Marketing's Relationship: Tells what should be monitored

Marketing relationship to planning...

Purpose: Put the firm in the best possible position relative to the future Marketing's Relationship: Helps the firm know what consumers want

Marketing relationship to directing...

Purpose: Transforms planning, organizing, and directing into reality Marketing's Relationship: Makes this function easy if the other three are done correctly

Develop a SWOT analysis to identify a markets opportunities, pressures, and issues a firm and its products will encounter

STRENGTHS WEAKNESS OPPORTUNITIES THREATS, know how to do this for a case study

What are the components of a strategic marketing plan?

SWOT analysis The target market Marketing position Marketing mix Evaluate and refine the marketing plan

Definition of an opinion leader

-individual who adopts products more quickly than others. They are watched carefully and followed by other customers in the market

The evolution of marketing in the food and agribusiness industries

-product driven (insensitive to needs of customers), -sales driven (force consumers to buy), -market driven (selling to meet the needs of the customers).

Total Product Concept

-Generic product- Firms compete on price only, nothing differentiates the products from different firms -Expected product- Builds on the generic product, firms supply meets the customer expectations -Value-added product- Firms first opportunity to truly exceed customer expectations, satisfy customer needs in a way thats un-expected. Providing service other firms don't. -Intangible benefits, unique information -Potential product-if value-added product is success other firms will seek to duplicate the success, usually at a cheaper price

What are the major parts of the marketing plan?

-analysis of the current market situation -analysis of opportunities and issues -marketing strategy -implementation program -financial analysis -controls

Apply the four utilities of marketing

1. Form- Increased value a customer puts on a finished product as compared to the value they place on the individual raw materials used to make the product 2. Place- value consumers put on being able to purchase products at a place that is convenient 3. Time- value a consumer gets by being able to have the product when they want it 4. Possession- value consumers put on purchasing a product and having the freedom to use the product as it was intended or finding a new use for the product

What are the five barriers to consumer satisfaction?

1. Ownership separation (inability to transfer ownership) 2. Time separation (product is not available when it is desired) 3. Space separation (product is not where consumers need it) 4. Value separation (product is not in the form consumers desire) 5. Information separation (lack of information about the product)

Use porters five forces model to identify and organize competitive pressures into a framework that identifies forces that affect a firms competitive position

1. Threat of new entrants 2. Threat of substitution 3.Supplier power 4. Buyer power 5. Competitive rivalry know how to use for a case study

Four tasks of management...

1. planning 2. organizing 3. controlling 4. directing

Describe the nine functions of the agricultural marketing system

1/2. Buying/Selling- overcomes the separation of ownership by transfer of legal title 3. Storage- overcomes the separation of time by maintaining the product in good condition between production and final sale 4. Transportation- overcome separation of space by moving the good to where its desired 5. Processing- transforming a commodity into its desired form 6. Grades and Standards - making a good conform to a specific set of pre-set standards 7. Financing- provides the funds necessary to pay for production 8. Risk Taking- overcomes time-separation by assuming the physical and price risks between purchase and sale 9. Market Info- overcomes information separation by disseminating this type of information

Definition of competitive advantage

Competencies in which the firm has a clear and distinct advantage over the competition, the reason customers chose to do business with the firm opposed to buying elsewhere. Conveying this advantage to the customer is key to the sale. -earn a place in consumers mind -effectively position products and services

Understand product life cycles

Development Introduction Growth Maturity Decline(add more)

Financial Goals

Established first Set for one year or longer Must be defined in measurable terms Must be internally consistent

AMA Definition of marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

What is the marketing strategy?

The firm's basic marketing objectives, including selection of target markets, market positioning, marketing mix, and marketing expenditure levels The goal is to create the foundation for the firm's marketing plan and determine the best combination of the four P's that will enable it to achieve its financial and marketing objectives

Describe the marketing plan and its role in strategic marketing

The marketing plan is the heartbeat of the entire business plan. Starting point for the rest of the business plan Identifies, analyzes, and helps understand customer needs

Explain how an agribusiness creates value for their customers

They use the value bundle (set of tangible and intangible benefits customers receive from products and services an agribusiness provides) Tangible- easily measured (features) Intangible- can be measured not easily quantified (customer service)

What is the mission of marketing?

To bridge the gap between producers and consumers by answering 5 key questions... 1. What products should be produced? 2. How much of the product should be produced? 3. When should the product be produced? 4. Who should produce the product? 5. Who makes up the market for the product?

How to segment a market for marketing purposes

groups consumers according to a set of characteristics, identifies customers that respond in a similar fashion NEED to recognize -common characteristics -needs -buying motives