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1. ADS 505: Agribusiness Management
Chapter 6
Marketing Management for Agribusiness
Content:
 The marketing concept
 The evolution of marketing
 Scope of marketing
 Components of a strategic marketing plan

2. The marketing concept
2
 Marketing is the process of developing, promoting, and
distributing products to satisfy customers’ needs and wants.
 ‘Marketing is the human activity directed at satisfying
human needs and wants through an exchange process’.
…….Kotler
 Marketing can be defined as the process of anticipating the
needs of targeted customers and finding ways to meet those
needs profitably.
 Marketing is about anticipation. Good marketing involves
having the right products and services available when the
customer is ready to buy them.
 Notion of a target market. “one size does not fit all”
 Profitability. Agribusiness marketer will likely generate a
long list of products and services that the customer
might be interested in.

3. The evolution of marketing
3
Product-driven
 Had a successful and unique product that satisfied a specific
customer need
 To create a product that is so good customers will seek it out
 “Build a better mousetrap and the world will beat a path to
your door”
 In a product-driven organization, product development,
research, engineering, and operations are the primary
focus.
 Produce a product in high demand and sales are good, so
customer needs aren’t a primary concern — at least in the
short run
 Sales may slow as competitor products that are similar are
introduced to the market.
“selling what you have” “having what you can sell”

4. The evolution of marketing
4
Sales-driven
 Intensifying the sales effort
 Organizations that focus primarily on communicating the
benefits of their products
 Introducing a number of variations or extensions to
serve existing customers better or serve an entirely new
group of customers
 May spend increasing amounts on promoting the firm’s
products through a variety of advertising activities
 The idea behind the sales approach to marketing is that
customers just don’t know enough about the product — if
the message is delivered effectively, sales growth will
occur.
 Sales-driven agribusinesses fail to ask one important
question — ‘do we have what the customer wants to buy?’

5. The evolution of marketing
5
Market-driven
 Takes ideas like “the customer is king” and “getting close
to the customer”
 Focus on customer needs drives all decisions in the
organization, from product development efforts, to
production location decisions, to asset allocation
 These firms are looking to establish a deep and lasting
relationship with their customer.
 Invest in market research to better understand their
customers
 Firms that are focused on building a long-term relationship
with their targeted customers and firms that are willing to
make some short-run sacrifices to do this.

6. The evolution of marketing
6

7. Scope of marketing
7
Marketers view sellers as the industry and the use of term
market to describe customer group.
Figure: A simple marketing system

8. Components of a strategic marketing plan
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The strategic marketing plan integrates all business activities
and resources logically to meet customers’ needs and to
generate a profit.
Five sets of marketing activities and decisions-
1) Conduct a SWOT analysis
2) Choose a target market
3) Choose a position
4) Develop the appropriate marketing mix
5) Evaluate and refine the marketing plan