Market Positioning/Marketing Strategies Dr. Wen-Chi Huang Associate Professor Department Of Agribusiness Management, National Pingtung University Of Science And Technology (NPUST), Taiwan

Content Definitions Industrial, Commodity, or Branded Product Economy of Scale and the Importance of Organizing Small Farmers Managing Product Quality

Definitions

Industrial, Commodity, or Branded Product

Economy of Scale and the Importance of Organizing Small Farmers

Managing Product Quality

Definitions Marketing Concept “ The philosophy of the company to satisfy consumer needs at a profit” Marketing programs For the branded products, the seller is able to identify the market, design the products, and position in the targeted market Quality In commodity grading, QUALITY refers to “attributes of commodity that influence its acceptability to a group of buyers and the price they are willing to pay for it”

Marketing Concept

“ The philosophy of the company to satisfy consumer needs at a profit”

Marketing programs

For the branded products, the seller is able to identify the market, design the products, and position in the targeted market

Quality

In commodity grading, QUALITY refers to “attributes of commodity that influence its acceptability to a group of buyers and the price they are willing to pay for it”

Marketing for different type of Consumer and Product Consumer marketing Supplying consumers generally with branded products Industrial marketing Supplying differentiated ingredients to processors and manufacturers Commodity marketing Supplying undifferentiated raw materials

Consumer marketing

Supplying consumers generally with branded products

Industrial marketing

Supplying differentiated ingredients to processors and manufacturers

Commodity marketing

Supplying undifferentiated raw materials

Industrial Product Raw materials from farm or sea when produced to specifications Specialized commodities: Produced to specification but not designed for a specific process Bulk industrial products: produced to specification and used in large quantities Partially processed: need further processing Processed products in a ready to use form for final consumers Processed specialty ingredients

Raw materials from farm or sea when produced to specifications

Specialized commodities: Produced to specification but not designed for a specific process

Bulk industrial products: produced to specification and used in large quantities

Partially processed: need further processing

Processed products in a ready to use form for final consumers

Processed specialty ingredients

Commodity Product Commodity Grading and Standardization Why grading? To have identifiable standards of quality so that prices can be established for each grade Who should set up the grading system? Government Producers’ organization Trade organization Others

Commodity Grading and Standardization

Why grading? To have identifiable standards of quality so that prices can be established for each grade

Who should set up the grading system?

Government

Producers’ organization

Trade organization

Others

Commodity Product Commodity Pricing Mechanisms Individual Negotiation Auction Market Electronic Market Formula Pricing Collective Bargaining Administrated Prices

Commodity Pricing Mechanisms

Individual Negotiation

Auction Market

Electronic Market

Formula Pricing

Collective Bargaining

Administrated Prices

Branded Products For final consumers Target market A group of customers at which the seller directed the marketing programs Market selection: market research and segmentation Marketing for the targeted market Marketing strategy (positioning) Marketing mix (Product, Promotion, Price, Distribution)

For final consumers

Target market

A group of customers at which the seller directed the marketing programs

Market selection: market research and segmentation

Marketing for the targeted market

Marketing strategy (positioning)

Marketing mix (Product, Promotion, Price, Distribution)

Marketing Plan Marketing plan is part of the functional plans such as finance, manufacturing plans of the organization, which include two levels of plan: The Strategic Marketing Plan The Action Plan

Marketing plan is part of the functional plans such as finance, manufacturing plans of the organization, which include two levels of plan:

The Strategic Marketing Plan

The Action Plan

Strategic Marketing Plan Define and quantify the market Situation analysis External: Macro environment: economic, demographic, lifestyle, environmental issues, food health concern Micro environment: customers, product. Competitors, distributors, suppliers Internal: Overall strategy, Effectiveness, Organization, systems, marketing functions Objectives Quantifiable, measurable, actionable, and motivational Marketing strategies Segmentation and positioning

Define and quantify the market

Situation analysis

External:

Macro environment: economic, demographic, lifestyle, environmental issues, food health concern

Micro environment: customers, product. Competitors, distributors, suppliers

Internal:

Overall strategy, Effectiveness, Organization, systems, marketing functions

Objectives

Quantifiable, measurable, actionable, and motivational

Marketing strategies

Segmentation and positioning

The Importance of Organizing Small Farmers Economy of Scale Reduction of input costs (seeds, fertilizer, transportation) Specialization in different tasks and functions becomes feasible Bargaining power Application of the Marketing Concept Implications for different customers

Economy of Scale

Reduction of input costs (seeds, fertilizer, transportation)

Specialization in different tasks and functions becomes feasible

Bargaining power

Application of the Marketing Concept

Implications for different customers

Managing Product Quality Grading: sort a product into quality classifications according to standards that are agreed upon by the industry Quality is characteristics of the products defined by the standards Consumer product: Brand is the composite of private “quality” standards National/International standards for commodity Specification of industrial products Quality of the “total” product include product, package, and service

Grading: sort a product into quality classifications according to standards that are agreed upon by the industry

Quality is characteristics of the products defined by the standards

Consumer product: Brand is the composite of private “quality” standards

National/International standards for commodity

Specification of industrial products

Quality of the “total” product include product, package, and service

Thank You

Components of Marketing Plan Executive summary Situation analysis Marketing objectives Market Selection: Target Markets Marketing Strategy Marketing Mix Budgets, control, and accountability

Executive summary

Situation analysis

Marketing objectives

Market Selection: Target Markets

Marketing Strategy

Marketing Mix

Budgets, control, and accountability

References Asian Productivity Organization (APO), 2002, Food Standards and Labeling Systems in Asia and the Pacific. Tokyo: APO Bearden, W.O., T.N. Ingram, and R.W. LaForge, 2001, Marketing: Principles & Perspectives. Boston: McGraw-Hill Council of Agriculture (COA), Executive Yuan, 2008, Taiwan Agriculture and Food Traceability System. http://taft.coa.gov.tw/ Schaffner, D.J., W.R. Schroder, and M.D. Earle, 1998, Food Marketing: An International Perspective. Boston: McGraw-Hill

Asian Productivity Organization (APO), 2002, Food Standards and Labeling Systems in Asia and the Pacific. Tokyo: APO

Bearden, W.O., T.N. Ingram, and R.W. LaForge, 2001, Marketing: Principles & Perspectives. Boston: McGraw-Hill

Council of Agriculture (COA), Executive Yuan, 2008, Taiwan Agriculture and Food Traceability System. http://taft.coa.gov.tw/

Schaffner, D.J., W.R. Schroder, and M.D. Earle, 1998, Food Marketing: An International Perspective. Boston: McGraw-Hill