AGRICULTURAL ECONOMICS 220

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AGRICULTURAL ECONOMICS 220

• Theme 4
• Marketing Management
• Groenewald Chapter 8

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Marketing management - Theme 4 Outline

• Approaches in Marketing and Marketing
  communication
• The interaction between consumers and producers
• The Marketing plan
• The development of a marketing plan
• Distribution and management of the marketing
  channel

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4.1 Approaches to Marketing

• Production approach
• Product approach
• Selling approach
• Marketing approach
• Community marketing approach

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4.1 Market communication

• Market communication strategy is sub-component of
  the overall marketing strategy.
• Marketing communication serves five key
  objectives
• Provision of information
• Stimulation of demand
• Differentiating the product or service
• Underlining the products value
• Regulating sales

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4.1 Marketing communication takes four forms

• Advertising - most visible component, normally
  use mass media, appropriate for sending the same
  promotional message to large audiences
• Sales promotion - short term incentives - more
  targeted
• Personal selling - interpersonal influence
  process - very targeted - dominant form of
  communication in industrial marketing (not
  dominant in consumer marketing)
• Public relations - organization's communication
  with its various stakeholders - objectives of
  public relations broader than the other
  components

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4.1 Market information

• Facilitating marketing function - essential to an
  efficient marketing system - lifeblood of markets
• Roles of market information - to improve decision
  making, critical to LOOP and the price discovery
  process, contributes to operational efficiency
• Public and private market information
• Criteria for evaluating market information -
  complete and comprehensive, accuracy and
  trustworthiness, relevant and in usable form,
  confidentiality, timely, balance of information
  at all levels
• Problems of market news and information - price
  specification, net vs. gross price, information
  costs, changing market organization, voluntary
  cooperation
• Users responsibilities