Marketing is the action or business of promoting and selling products or services, including market research and advertising. With the development of aquaclture, marketing strategies are needed.

1. MARKETING AQUACULTURE
PRESENTED BY
RADHAKRISHNAN NAIR
MFK1508

2. INTRODUCTION
• Aquaculture—old in practice, new ag industries
• Rapid expansion globally
• Development plagued by marketing problems
• Main problem: matching production to market needs

3. Good example: catfish farming
• Farmers were well into production before producers and
administrators gave serious consideration to market research and
data collection
• demand was great, so no difficulty selling
• market analysis only really began in the 1970’s

4. • This dilemma was also shown by salmon and shrimp industries
• failure to understand the market has driven many producers out of
business
• knowledge is necessary for locating markets for new and established
products, for price determinations and for setting quality standards
• what has helped is the integration of the quality concept with
marketing: HACCP

7. IDENTIFYING MARKETS
Just what is a market? Can be defined in many different ways:
• LOCATION:
• PRODUCT:
• TIME:
• LEVEL: retail vs. wholesale

9. Part 1: The Marketing Plan (According to
Philip Kotler)
• After setting the firm’s purpose and goal, the marketing plan is the
starting point for the rest of planning
• most marketing plans involve single products or lines of products

10. Part 1: The Marketing
Plan
• Current situation
• Opportunity and issue study
• Goals
• Marketing strategies
• Working plans
• Financial studies
• Needed controls

11. CURRENT MARKET SITUATION
1) Market situation: background and current
situation wrt consumer needs, likes/dislikes,
buying trends; current size and past growth of
the total market, sales in various geographical
areas
2) Product situation: recent history of sales,
revenues for a current product
3) Competitive situation: size, goals, market
share, product quality, marketing strategies
present and future of competitors

12. CURRENT MARKET SITUATION
• Distribution situation: sales made through each type of
middleman (brokers, wholesalers, retailer) in the distribution channel
(later)
• Macroeconomic environment: general economic situation has a
bearing on sales (e.g., population figures, economic climate,
technology, legal issues, social issues, etc.)

13. OPPORTUNITY ANALYSIS (SWOT)
1) strength and weakness study: main ones of the company and
product from factors within the firm
2) opportunities and threats analysis: main ones facing the product
from factors outside the firm, ranked in order of importance
3) goals: financial and marketing.

14. Opportunity Analysis
marketing strategy: basic approach to achieve goals
• Target markets: what does the consumer need?
• Product positioning: best quality or lowest price?
• Size of product line: number/types of products sold
• Price: compared to other similar ones
• Distribution: how, where and by whom?
• Sales force: size, type, quality

15. Opportunity Analysis (cont)
4) marketing strategy (cont.)
• level and quality of service
• advertising: amount needed, worked?
• sales promotion
• r&d: amount, types, timing, success?
• market research: amount/types

16. OPPORTUNITY ANALYSIS (CONT)
5. Working plan: once plan is approved, working plan activates
marketing plan (who does what, etc.)
6. Financial study: forecast of future sales revenue, cost of
additional product and personnel
7. Controls: feedback mechanisms to measure progress, often
quarterly or monthly reports

17. Part 2: Marketing Channels
• Refers to the institutional structure in place for movement and
exchange of goods
• from producer consumer
• helps with record keeping to consider movement a “channel”
• really regards a flow of information
• demand creates flow
• if conditions of sale are agreed upon, flow through or “down” the
channel starts

20. How can you avoid
all this complexity?

21. Avoiding Market Channel
Complexity: direct sales!
•small quantity of product
•transaction does not necessitate
intermediary
•farmer develops own capacity to
handle shrimp

22. LEVELS OF MARKET CHANNEL
COMPLEXITY
• farmer ---> consumer
• farmer ---> retailer ---> consumer
• farmer ---> wholesaler ---> retailer ---> consumer
• farmer ---> broker ---> processor ---> wholesaler ---
> retailers ---> consumer
• retailers: hotels, restaurants, institutions

23. Market Channel and Price
• As product moves through the channel, the price at each stage is
increased in accordance with value added to the product
• farmers not often pleased with discrepancy in price between what they
received and what consumers pay
• difference is the marketing margin or marketing bill
• margin is largely affected by time of sale and price paid for raw product
• other factors: governmental price controls, producer organizations, co-
ops, type of product, market concentration

24. LENGTH OF CHANNELS
• Channels can be simple or long and complex
• length/complexity depend upon the volume of product
moved, number of functions performed, scale of
operation at each stage and the distribution system
chosen
• organization depends upon the type of markets,
organization of producers

25. Increasing Market Share
• Commercially-reared product is often in direct competition with wild-
sourced
• also in competition with imports
• factors that affect sales must be isolated for farmers to compete
• market share is typically increased by monitoring: product, price,
promotion and place

26. PRODUCT
• The key to expanding sales is a premium product
• needs a QA/QC department or program
• manager must assure that size, taste, packaging
and other characteristics are pleasing to customer
prior to putting on the market
• off-flavor, color, texture and general appearance
are key elements

27. PRICE
• To minimize price, the manager will keep processing costs at a
minimum
• this insures that product price is competitive
• in a purely competitive market, price is determined by interaction
between demand and supply.
• price often identified in real world by discovery.
• an error in pricing often has serious consequences

28. PROMOTION
• Involves programs to encourage sale and increase market share at any
point in the channel by influencing potential purchases
• promotion communicates information including product quality, price,
and benefits of the product to potential clients
• it acts on both the intellectual and emotional state of the buyer

29. PLACE
• Distribution of the product to locations used by
customers wishing to purchase the product is a
market function
• sometimes product is transported hundreds of miles
from the farm
• frozen products are transported the greatest
distances
• market share is increased by transporting product to
places where it has previously been unavailable

30. CONCLUSION
• Marketing is the process of getting a product from producer to
consumer.
• Production matters little if the producer did not identify markets for
the product.
• Successful marketing also involves developing a marketing strategy
and plan. Like production costs, marketing costs add to the final price
of the product.
• As a protection and guarantee to the consumer, processing
procedures are inspected, products are graded, and strict quality
control are followed

31. REFRENCES
• AQUACULTRUE SCIENCE third edition, Rick parker
• Wikipedia
• http://seagrant.uconn.edu/publications/aquaculture/market.pdf
• http://www.fao.org/docrep/003/ab412e/ab412e14.htm
• http://www.slideshare.net/technavio/global-aquaculture-market-
20152019
• http://www.fao.org/docrep/field/003/ac169e/ac169e00.htm