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SAB2403: Agribusiness Marketing - Coggle Diagram
SAB2403: Agribusiness Marketing
Chapter 3
Creating Value
Segmentation
Dividing a market into smaller segments (Needs, Characteristic, Behavior)
Consumer
Geographic
Nation/Region/State/Country/City
Demographic
Family/Age/Income/Occupation/Education/Religion/Race /Generation/Nationality
Phychographic
Lifestyle/Social Class/Personality
Behavioral
Knowledge/Attitude/Loyalty/Usage Rate
Business
International
Geographic location
Political legal factors
Economic factors
Cultural factors
Effective segmentation
Measurable/Accessible/Substantial/Differentiable/Actionable
SMART
Targeting (Needs/Characteristic of Buyers)
Evaluation Market Segment
Size and growth
Structural attractiveness
Objectives and resources
Strategies
Differentiated (Separate Offers)
Goal (Higher sales/Position)/ More expensive
Undifferentiated (Whole Market)
Mass marketing/ Common needs
Micromarketing (Suit the taste) [Tailoring]
Local marketing
City/Neighborhoods/Stores
Individual (1 to 1 marketing/ Mass customization)
Needs and preferences of individual
Depends
Resource/Product variability & life-cycle/Market variability/Competitors
Social Responsibility
Benefits/Vunerable segments
Children, Alcohol, Cigarettes, Internet abuses
Differentiation & Positioning
Value proposition
Mix of Benefits
Competitive advantage
Identify/Right/Communicate/Selecting Advantage
Differentiation
Product/Service/Channel/People/Image
Promotion Important/Distinctive/Superior/Communicable/Preemptive/Affordable/Profitable
Product Position
Consumers important attributes (Perceptions/Impressions/Feeling)
Target segment and need/ Brand/ Concept/ Point of Difference
Chapter 1
Agricultural Marketing
Marketing
Process of planning executing the conception, pricing, promotion and distribution of ideas, goods/service, organizations and events
To maintain relationship that will satisfy individual and organizational objectives
System
Marketing channel, Middlemen(marketing firm), Business activities
Quality/Variety/Cost/Price/Profit/Distribution
Location, Product, Time (Season), Market
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Production until reach to the consumer
Marketing Process
Macromarketing
Technological
Political
Natural
Cultural
Economic
Demographic
Microenvironment
Competitors
Customers
Marketing intermediaries
Supplier
Company
Publics
Economic Environment (Value marketing combination)
Technological
New product, opportunities
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Political and Social
Law, Government agencies (pressure group)
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Cultural
Society's basic values, perceptions, behaviors
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Chapter 5
Price
Definition
Money charged for a
product or service
Cost (Give up) vs Benefits (Gains)
Produce revenue
Strategies
Value consumers place on the benefits from product and price
Value Based (Customer Driven)
Good-Value Pricing
Everyday Low Pricing
High-low Pricing
Customer Value-Based Pricing
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High price, frequent promotions to low price
Constant everyday low price
Right quality at fair price
Cost Based (Product Driven)
Cost-Based Pricing
Standard markup added to the costs
Costs
Fixed
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Variable
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Total
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Advantage
Disadvantage
Ignore demands and competitor prices
Certain cost, minimum competition, buyer feel fair
Price ceiling (Value) vs floor (P.Cost)
Competition based
Based on competitor's strategies
Cost, price, market offering
Consumer look on similar price
Break-even pricing
Price at total costs are equal to revenue
Target profit pricing
Price at break even or target profit
New Product
Penetration Pricing
Price Skimming
Setting high price for innovative product/service (early adaptors)
Price low to gain more sales and deter competition from entering the market
Decisions
Considerations
Others
Economy
Reseller's response
Government
Social concerns
Market and Demand
Price and demands
Competition
Pure/ Monopolistic/ Oligopolistic/ Monopoly
Elasticity
Price
Response of demand to price change
Inelastic
Hardly demand changes to price changes
Elastic
Great demand changes to price changes
Chapter 2
Consumer Behavior
Model
Consumer buyer behavior
behavior of consumer, individual, household
Environment (4P, Macromarketing)
Buyer's black box (Characteristics, Decision)
Buyer response (Attitudes and preferences) [Post purchase]
Consumer market
all of the personal consumption of final consumers
Influence
Cultural
Values, Perceptions, Behavior
Subculture
Shared value systems (Malay/Iban/Melanau)
Social classes
Income/Education/Wealth/Occupation
Social
Groups and social networks
Membership
Group influence direct
Aspirational
Wishes to belong to
Reference
Opinion leader (Social influence)
forming attitudes or behavior
Online social networks
Socialize or exchange/information/opinions
Facebook/Second life
Family
Personal
Age
life-cyle stage
Occupation
Goods/service
Economic
Income/saving/interest rate
Lifestyle
Living psychographic
Personality
Consumer's environment
Psychological
Buyer Decision Making
New Product
Adoption process
Awareness>Interest>Evaluation>Trial>Adoption
Recognition
Information
Evaluation of alternatives
Purchase decision
Post-purchase behavior
Dis/Satisfaction [Relationship between expectation & performance]
Preferred brand (Attitude)
Process info (Brand Choice)
Personal/Commercial/Public/Experimental Source
Internal/External Stimuli
Chapter 4
Product
Definition
Product
Anything that can be offered to use or consumption that satisfy need or want
Service
Product that consists of activities and benefits (intangible)
Product
Actual
Brand/Features/Design/Packaging/Quality
Augmented
Warranty/After-sale service/Product support/ Delivery and credit
Experiences
Characteristic
Raw material
can add more value
Bulky & Perishable
Deteriorate/Large capacity,storage/Transport
Quality Variation
Season quality/Genetics/Technology
Geographic
Climate/Land
Classifications of Products
Industrial (Further processing)
Capital item
Aid to make the buyer produce or operations
Materials and part
Raw material and manufactured materials (Industrial users)
Supplies and service
Operating supplies, maintenance, business service
Organization marketing
Activities to change attitudes and behavior of target consumers toward an organization
Consumer (personal consumption)
Convenience
Minimum buying effort and buy frequently
Shopping
Compare on suitability,quality,price,style
Speciality
Unique characteristics/brand (willing to buy)
Unsought
Buying not knows about but does not normally think of buying
Decisions
Product attributes
Branding
Packaging
Labeling
Product support service
Groups of products closely related (Sold to the same customer group)
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Product/Brand identification, attributes, promotion
Container/wrapper
Identities (Sign/Design)
Benefits (Quality,Features,Style,Design)
Marketing
Person
Activities to create, maintain, change attitude and behavior
Place
Activities to CMC attitudes and behavior in places
Social
Commercial marketing concepts and tools in programs
Services Marketing
Intangible, Inseparable, Variable, Perishable
Types
Government
Private not-for-profit organizations (NPO)
Business services
Strategies
Service profit chain
Links service firm profits with employee and customer satisfaction
Service quality, value, satisfaction, growth
Internal marketing
Motivate customer contact employees and support service to provide customer satisfaction
Interactive marketing
Service depends of the quality of the buyer-seller interaction
Differentiation/Quality/Productivity
Managing service
Advantage
Offers
Delivery
Image
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Customer contact, environment, process
Distinctive features
Cost
Employee recruiting, hiring, training
Quantity and quality strategy
Branding Strategy
Effect of knowing of the brand and customer response
Brand
Positioning
Product
Attributes/Benefits/Values
Selection
Quality, Easy to recognize, Distinctive, Extendable, Translatable, Registration and legal protection
Sponsorship
Manufacturer/Private/Licensed/Co-Brand
Development
Line/Brand (Extension), Multi/New (Brand)
Changes in Agribusiness
Concepts
Old
Homogenous
Staple product
Open market
Stable price
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New
Differentiated
Specialty/Niche
Closed markets (personal)
Price Risk
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Chapter 6
Promotion (Communication)
Mix
Direct-marketing tools to communicate customer value and build relations
Advertising
Paid form of non-personal presentation and promotion
Broadcast, Print, Internet, Outdoor
Sales Promotion
incentive to
encourage the purchase
Discounts, Coupons, Displays, Demonstrations
Public Relations
Building good relations by image, handling rumors, stories and events
Press release, Sponsorship, Events, Web pages
Personal Selling
Personal presentation by the firm's sales force
Customer relationship and making sales
Sales, Presentations, Trade shows, incentive program
Direct Marketing
Making direct connections with carefully targeted individual consumers to get immediate response and customer relationship
Catalog, Telemarketing, Kiosks
Integrated Marketing Communications (Model)
Integration by the company of its communication channels
To deliver a clear, consistent and compelling message about the company and brand
Sender, Encoding, Message, Decoding, Receiver, Response, Feedback
Effective Marketing
Identify Target Audience
What, How, When, Where, Who will be said
Communication Objectives
Seeking a purchase response
Form a consumer Decision-making process (Stages of buyer readiness)
(Which) Awareness>Knowledge>Liking>Preference> Conviction>Purchase
Message Design
Attention, Interest, Desire, Action (AIDA)
Message content (Themes of audience appeal)
Rational
Relates self-interest
Increase in purchase
Emotional
Positive/Negative emotions to motivate
Moral
Directed at the sense of right and proper
Media
Personal communication
Personal addressing and feedback
Company, Experts, Word of mouth
Opinion Leaders
Reference group
Special skills, knowledge, personality
Social influence on others
Buzz marketing
Cultivating opinion leaders and spreading information about a product/service to other in their communities
Non-personal communication
Major Media
Broadcast, Print, Display, Online Media
Atmospheres
Create environment to encourage buyers to buy
Press conference, Grand openings, Exhibits, Public Tours
Message Source
Celebrities
Impacts audience is affected by how the audience views the communicator
Collecting Feedback
Understanding the effect on the target audience
Measuring by behavior resulting from the behavior
Professional
Budget
Affordable method
Ignores the effects of promotions on sales
Percentage of sales method
sets the budget at a
certain percentage of current or forecasted
sales
Relationship between promotion, selling price, and profit per unit
Competitive-parity method
Set the budget to match competitor outlays
Industry standards
avoids promotion wars
Objective and task method
Budget based on what the firm wants to accomplish
Objectives, Task, Cost
Social Responsibility
Openly, Honestly, Avoid false/bait ads, Fair competition, Avoid competitor's product, No Bribes/ Conform to all federal, state, local regulations
Shape (Tools)
Public Relation
Believable form of promotion
News, features, sponsorships, events
Sales Promotion
Offers incentives to purchase
Coupons, contest
Direct marketing
Non public, immediate, customized and interactive promotional tool
Direct mail, catalogs, telemarketing, online marketing
Personal selling
Building buyer's preferences, conviction, actions and develop relationships
Chapter 7
Place (Online)
Direct marketing
Channel without intermediaries (Market)/Promotion mix (Element)
Benefits
Convenience
Accessible
Interactive and Immediate
Customer relationships
Low cost & Efficient
Flexible
Customer database
Comprehensive data
Individual customers, Prospects, Geographic, Demographic, Behavioral
Forms
Direct-mail marketing
Particular address (Offer, announcement, reminder)
Personalized, Easy to measure, High cost, Better result
Catalog direct maketing
Printed and web-based catalog
Low cost, Unlimited, Real-time, Interactive, Difficult customers
Telephone marketing
Using telephone
Outbound (sells directly to consumers and business)
Inbound (Receive orders from television and print ads, direct mail, catalogs)
Direct-response television marketing (DRTV)
60-120 sec advertisements describe products
give customer a toll-free number or Web site to purchase and 30-minute infomercials. (Home shopping)
Less expensive
Kiosk marketing
Digital direct marketing
Mobile phone marketing
Ring-tone/Mobile game/Ad-supported content/Contests/Sweepstakes
Podcasts & Vodcast
PDA/iPod and listening to them at the consumer's convenience
Interactive
Television (ITV) programming and advertising using remote controls and provides marketers with interactive and involving means to reach targeted audiences
Online marketing
Internet (Web of computer networks)
Marketing
B2C
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B2B
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C2C
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C2B
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Public Policy Issue
Irritation
Unfairness
Deception
Fraud
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Mislead
Taking unfair advantage
Online privacy
Annoying and offending
Spam
Chapter 9
Future Maket & Hedging
Manage some of input and output price risk
Importance
Discover price/ Location of market participants/ Information
Parties
Buyer
Seller
Exchange
Clearing house
Guarantees performance
Future contracts are brought/sold
Short in the contract
Long in the contract
Future contract
Agreement between a buyer and a seller to receive or deliver a product on a future date at a price they have negotiated today
In the future market the value of your position gain or loss changes each time prices change
Private agreement of 2 parties to transact in the future at terms agreed to today
Efficiency gain by eliminating price uncertainty (Input/Output)
Opposite needs for certain quantity of good or asset
Contract backed by the reputation of the firm
Exchange determine specific details of the contract
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Standard
Delivery Period (Timing)/ Contract Size (Quantity)/ Product Quality
Futures and Forward contract
Relationship to options
Option- give the holder the right or option to exercise the contract
Entail an obligation for both parties to honor the contract to trade at a specified date at a price agreed upon today
Forward
Agreement calling for the future delivery of an asset at an agreed-upon price
Future
Formalized and standardized characteristics
Size/Grade/Date/Location
Key difference
Standardization/Secondary trading (liquidity)/Marked to market/ Clearinghouse warrants performance
Types
Agricultural commodities/ Metals and minerals/ Foreign currencies/ Financial futures (interest (rate) /stock index)
Hedging
Temporary substitude for an intended cash market transaction
Purpose
Ensure price protection againts adverse market moves
Reduce the risk of price fluctuations
Price received/paid equals
Trading Mechanics
Clearinghouse - Act as a party to all buyers and seller
Closing out position
Reversing the trade/ Take or make delivery
Chapter 8
Marketing channels
Supply Chain
Upstream
Raw material suppliers/components/parts/info/finances/expertise to create a product service
Downstream
Marketing channels/distribution channels look towards the customers
Firm's raw material/productive inputs/factory capacity (make and sell)
Demand Chain
target customer needs, firm responds to the needs by organizing chain of resource and activities with the goal of creating customer value
Nature and Importance
Intermediaries
Making good available to target markets
With experience/specialization/ scale of operations/
Assortment of products into assortments wanted by consumers
Channel members add value by bridging the major time/ place/ possession gaps that separate goods and services from those who would use them
Channel Members Add value
Info/ Promotion/ Contact/ Matching/ Negotiation/ Physical distribution/ Financing/ Risk taking
Channel Levels
Product physical flow
Flow of ownership
Payment flow
Info flow
Promotion flow
Behavior
Channel conflict
Horizontal
Vertical
Vertical marketing systems
provide channel leadership
producers, wholesalers, retailers acting as a unified system
Corporate MS
integrates successive
stages of production and distribution under single ownership
Contractual MS
Independent firms at different levels of production, Join together to obtain more sales. (franchise)
Franchise org
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Administered MS
Few dominant channel members (no common ownership) but leadership from size and power
Conventional distribution system
One or more independent producers, wholesalers and retailer
maximize profits
little control, no formal means & resolving conflict
Horizontal Marketing System
Two or more company join together to follow new marketing opportunity
combine financial, production, resource to accomplish
Multichannel distribution system
single firm sets up two or more marketing channels to reach one or more customer segments
Changing channel Organization
Disintermediation
product/service producer cut out intermediaries and go directly to final buyers. Displace traditional ones with new types of channels
Channel design decisions
Setting channel objectives
Targeted levels of customer service/ segments/ minimizing cost
Identify major alternatives
Type, Number of intermediaries/ responsibility of channel members
Intensive (common)/ Exclusive (luxury)/ Selective (home appliance) DISTRIBUTIONS
Evaluating major alternatives
Economic criteria/ Control/ Adaptive criteria
Analyzing consumer
Steps
Selecting CM
Managing
Motivating
Evaluating
Public Policy
Exclusive distributions
Exclusive dealing
Exclusive territorial agreements
Tying agreements
agreements
limit territory
requires that sellers not handle competitors product
Certain outlets to carry its product
Marketing Logistics and Supply Chain Management
Marketing logistics
Planning/ Implementing/ Controlling the physical flow of goods/service. Origin to consumers
Supply chain management
Managing upstream/downstream value added flows of materials. Final goods/ Suppliers Information, company, reseller, final consumers
Functions (WILIT)
Warehousing
How many/ Types/ Location/ Distribution centers
Inventory management
Just-In-Time System/ RFID (Location)/ Smart shelves (Placing Order Auto)
Transportation
Affects price (Performance/ Condition of goods)
Truck/ Rail/ Water/ Pipeline/ Air/ Internet
Logistics information management
Management of information flow
Customer order/ billing/ Inventory/ customer data
EDI (Electronic data interchange)/ VMI (Vendor-managed inventory)
Intergrated
Recognition that providing customer service and trimming costs requires team work internally and externally
Third-party logistics
Outsourcing of logistics functions to third-party logistic providers
Chapter 10
Global Marketplace
Global firm
Operates in more than one country
Gains marketing/ production/ R&D/ Financial advantage
Position - Country/ Economic region, globally?
Competitors - Strategies/ Resource
Strategic alliance
Environment
International Trade System
Tariffs
Tax on imported product
Designed to raise revenue/ protect domestic firms
Quotas
Limits the amount imported product
Conserve on foreign exchange and protect domestic industry and employment
Exchange controls
Limits on foreign exchange/ rates against other currencies
Nontariff trade barrier
Biases against bids
Restrictive product standards
General Agreement on Tariffs and Trade (GATT)
Promote world trade
Reduce tariffs and other trade barriers
World Trade Organization
Enforce GATT/Mediates disputes/Imposes trade sanctions
Economic communities (Free trade zones)
European Union(EU)/ North American Free Trade Agreement(NAFTA)/ Central American Free Trade Association (CAFTA)
Industrial Structure
Subsistence economies
Industrializing economies
Industrial economies
Raw material exporting economies
Income Distribution
Low/Middle/High Income households
Political-Legal
Country's attitude toward international buying
Government bureaucracy
Political Stability
Monetary regulations
Cultural Impact on Marketing Strategy
Business Norms/ Cultural preferences/ Traditions/ Behaviors
Adapt to local cultural values and traditions
Going global
Factors to consider
Understand the consumer
Competitively attractive productive
Able adapt to local culture
Deal with foreign nationals
Managers have the experience
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Which Market to Enter
Define international marketing objectives and polices
Foreign sales volume
How many contries
Type of countries
Geography/Income/Population/Political
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How to enter
Exporting
Joint venturing
Direct investment
Assembly facilities/Manufacturing facilities
Advantage
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Firm joins with foreign companies to produce or market products or service
Licensing
Contract manufacturing
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Agreement with a licensee in a foreign market
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Indirect/Direct
Produce goods in home country and sell in foreign market (product lines/ Organization/ Investments/Mission)
Commitment/ Risk/ Control/ Profit potential -->
Marketing mix
Standardized marketing mix
Selling same product/ Using same marketing approaches worldwide
Adapted marketing mix
Adjusting the marketing mix element in each market (more cost but hoping for a larger market share and ROI)
4P
Product
Straight product extension (Marketing product without any change in foreign market)
Product adaptation (Changing product to meet local condition or want)
Product invention (creating something new)
Promotion
Can adopt the same communication strategy
Price
Uniform price (same price in all market)
Standard markup pricing (Based on a percentage of cost)
Place (Distribution)
Seller's HQ organization
Channels between nations
Channels within nations
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Move the products to the borders of the foreign nations
supervise the channel and is also a part of the channel
Typical management of international marketing activities
Establishing an exporting department with a sales manager and staff
Creating an international division organized by geo/ products/ operating units
Global organization