session 4_market positioning dr wenchi huang

8/8/2019 Session 4_Market Positioning Dr Wenchi Huang

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Market Positioning/MarketingMarket Positioning/MarketingStrategiesStrategies

Dr. Wen-Chi Huang

Associate Professor

Department Of Agribusiness Management,National Pingtung University Of Science

And Technology (NPUST), Taiwan


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Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First RegionalForum cum Training Workshop June 7-11 2008 Hanoi Vietnam

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Content

Definitions

Industrial, Commodity, or Branded Product

Economy of Scale and the Importance ofOrganizing Small Farmers

Managing Product Quality


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Definitions

Marketing Concept

The philosophy of the company to satisfy consumerneeds at a profit

Marketing programs

For the branded products, the seller is able to identifythe market, design the products, and position in thetargeted market

Quality

In commodity grading, QUALITY refers to attributesof commodity that influence its acceptability to a groupof buyers and the price they are willing to pay for it


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Marketing for different type ofConsumerand Product

Consumer marketing

Supplying consumers generally with branded

products

Industrial marketing

Supplying differentiated ingredients to

processors and manufacturers

Commodity marketing Supplying undifferentiated raw materials


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Industrial Product

Raw materials from farm or sea when produced tospecifications

Specialized commodities: Produced tospecification 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 finalconsumers

Processed specialty ingredients


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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


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Commodity Product

Commodity Pricing Mechanisms

Individual Negotiation

Auction Market

Electronic Market

Formula Pricing

Collective Bargaining

Administrated Prices


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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)


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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


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Strategic Marketing Plan

Define and quantify the market

Situation analysis External:

Macro environment: economic, demographic, lifestyle, environmentalissues, 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


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The Importance of Organizing SmallFarmers

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


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Managing Product Quality

Grading: sort a product into quality classificationsaccording to standards that are agreed upon by theindustry

Quality is characteristics of the products definedby the standards

Consumer product: Brand is the composite of privatequality standards

National/International standards for commodity

Specification of industrial products

Quality of the totalproduct include product,package, and service


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Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First RegionalForum cum Training Workshop June 7-11 2008 Hanoi Vietnam 13

Thank You


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Components ofMarketing Plan

Executive summary

Situation analysis

Marketing objectives Market Selection: Target Markets

Marketing Strategy

Marketing Mix Budgets, control, and accountability


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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, TaiwanAgriculture 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

session 4_market positioning dr wenchi huang

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