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How Do I Develop A Strategic Marketing Plan?
How Do I Develop A Strategic Marketing Plan?
How Do I Develop A Strategic Marketing Plan?
How Do I Develop A
Strategic Marketing Plan?
Types of Marketing
Planning
Strategic Marketing
Encompasses the entire farm strategy
Deals with the broader issue of determining
firms strategic position in the market and how
to create value from that position
Product Marketing/Pricing
Deals with the tactical side of selling a product
Similar to a set of standard operating procedures
for marketing a particular product.
Marketing
Defined . . .
Marketing is anticipating the needs
and wants of targeted customers
and managing the process through
which these needs and wants are
satisfied . . . profitably
Management Philosophies
Production
Concept
Marketing
Concept
Product
Market
Focus
Product Quality
and Features
Customer
needs
Means
Improving
production &
distribution
efficiency
Integrated
Marketing
Profits through
sales volume
Profits
through
customer
satisfaction
Starting
Point
Ends
Building A Strategic
Marketing Plan
Customer/Consumer
Consumers
Trends
Customers
Households with
Just-in-time
inventory
Business to
business (B2B)
Manufacturing
mentality
Industrialization of
agriculture
fewer people
Active, on-the-go
lifestyles
Concern over the
health aspect of food,
with a desire for good
taste
Less time for meal
prep
3. Competitor/Value
Creation Analysis
Make sure you are distinctively different
from your competition
in areas of importance
to your customers
Competitive
analysis
Reallocation of
resources if
necessary
Technological Development
Inbound
Operations
Logistics
Procurement
MA
RG
I
Primary
Activities
IN
RG
MA
Supporting
Activities
Firm Infrastructure
4. Determining the
Marketing Mix
The set of controllable variables
that will accomplish the
marketing objectives:
Product strategy
Place (distribution) strategy
Promotion (communication) strategy
Pricing strategy
Product Strategy
Portfolio of Products
Corn, soybeans, hogs, dairy, cattle, value-added grain,
fruits and vegetables, custom farming operations,
custom feeding operations
Fits your strengths and weaknesses
Provides acceptable risk/return tradeof
Meets needs of a particular customer segment
Quality
No. 1 versus No. 2
GMO vs. non-GMO
Service
Timely custom operations
Pre-sorting of grain or livestock quality
Volume
Large and small quantities
Guaranteed volumes (contract)
McDonalds Product
Package
Food
Fast service
Fun for the kids
Variety
Non-smoking
Consistent product
Waxy Corn
Corn with specific type of starch
Delivery Schedule
Specific hybrids
Quality requirements
Purity level
Place Strategy
Storage
On-farm vs. of-farm
Segregated or IP
Timing
On-demand
Equal amounts throughout the year
Location
Delivery to multiple points
Assortments
Delivery of diferent amounts to diferent places at
diferent times
American Crystal
Sugar (ACS)
Spring Wheat
Bakers
Farmer-owned cooperative that
processes wheat, grown on Northern
Plains into flour
Frozen and par-baked bread factory in
Atlanta, Georgia, a population center
Promotion Strategy
Advertising
Creating brochures and other advertisements on the
products your farm provides and what value they add
Creating a farm logo
Personal Selling
Public Relations
Being a good neighbor
Being involved in the community
Open house days
Price Strategy
Price is the cost the customer must bear in
order to obtain the product. It includes:
list price
discounts
allowances
payment period
credit terms
Pricing Methods
Value-Based Pricing
Set price based on buyers perception of value
(rather than on the sellers costs)
Cost-Based Pricing
Add a standard markup to the cost of the
product
Competition-Based Pricing
Set price based on following competitors prices
Value-Based Pricing
Customer
Oriented
Based on
customers
perceived value
Match price to
perceived value
Brand loyalty
Competition-Based
Pricing
Price decision
based on actions
of competition
Less attention on
cost or product
demand
Large firms all
charge the same
price
Smaller firms
follow lead of large
firms, may ofer a
slightly lower price
6. Implementation and
Control
Focus attention of everyone on
delivering what the customer
wants
Management of people
Monitoring and control
Commodity Marketing
Homogeneous Product
diferentiation in services, not product.
Low-cost strategy
What about the price received?
Does every producer get the same price?
What Is A Marketing
Plan?
A marketing plan is an outline of
price, date and quantity objectives
used to generate a reasonable return
for the business given the existing
market conditions.
Diagram of A Corn
Marketing Plan
Date Triggers
Jan. 1
March 15
May 1
Sell 20%
Sell 20%
$2.50/bu
$2.40/bu
Price Triggers
Harvest
Sell 60%r
Existing
Price
Steps In A Marketing
Plan
BP
Implementation consistent with
objectives
What are important considerations?
Price Expectations
Assess the situation
Historic patterns (seasonal)
Basis patterns
AgMAS An Objective
Study of Market Advisory
Services
The Difference
Whats the diference between the
market advisory service and the
marketing plan?
Beat the Market vs. Accepting What
the Market is Giving.
Active Marketing = Private Information
Active Marketing vs. Passive Marketing
Cost of Production
What are the costs?
What revenue cover costs?
What price is needed to cover
the costs?
Is this price realistic?
A Little Marketing
Philosophy ...
Bad outcomes still happen
Never compare to the market
high ..
Your plan for your
operation ...
Strategic Business
Planning for Commercial
Producers