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Chapter Six Strategic Market Planning - Coggle Diagram
Chapter Six Strategic Market Planning
Objectives
Outline the Marketing Concept
Review the Evolution of Marketing in Food and Agribusiness
Present the Market Planning Framework
Discuss the Components of a SWOT Analysis
Examine the Market Segmentation Concept
Develop the Fundamental Idea of Positioning
Introduction
Most people associate
marketing
" mainly with advertising or selling.
In food and agribusiness, marketing involves much more than just advertising and selling.
Marketing covers a wide range of activities focused on reaching customers and informing them about products or services.
It aims to satisfy customer needs and wants effectively.
The full marketing process includes
Identifying customer needs
Developing products and services to meet those needs
Establishing promotional programs
Setting pricing policies
Designing distribution systems
Marketing management means managing this entire process strategically and efficiently.
The marketing concept
Marketing is the process of anticipating customer needs and meeting them profitably.
Key Ideas in the Definition:
Anticipation:
Marketers must predict future needs (e.g., features in tractors, seasonings for frozen meals).
Success comes from having products ready when customers are ready to buy.
Good marketers know their customers well.
Target Market:
"One size does not fit all" — different customers have different needs.
Marketers must focus efforts on specific segments (e.g., small livestock farmers vs. large seed growers).
Each segment requires a tailored marketing approach.
Profitability:
Agribusiness marketers must choose offerings customers will pay for.
Provide products and services at prices that deliver profit.
Example:
Small livestock farmer may want credit terms and a nutritionist.
Large commercial farmer may want top product performance and professional technical support.
The evolution of marketing
Traditional vs. Modern Marketing View:
Traditional: "Selling what you have" (focus on disposing of existing products).
Modern/Effective: "Having what you can sell" (focus on anticipating and meeting customer needs)
Product-Driven Approach:
Focus: Creating a superior product, believing customers will naturally seek it out ("build a better mousetrap")
Emphasis: Product development, R&D, operational efficiency.
Problem: Can become insensitive to changing customer needs or competitive offerings.
Sales-Driven Approach:
Focus: Intensifying sales and promotional efforts to push existing products. Assumes customers just need to be persuaded or informed better.
Activities: Adding salespeople, increasing advertising, exploring new markets, creating product variations.
Problem: Fails to ask if the product truly meets customer wants. Vulnerable to competitors who are better aligned with customer needs.
Evolution & Combination: Many firms evolve through these stages, often starting as product-driven, moving to sales-driven when growth slows, and finally adopting a market-driven approach for sustained success. Some companies might use a mix of these strategies across different products