Market Positioning/Marketing Strategies
By
M. Ali Hassan PCIT MBA(IX)
[email protected]
Content • Definitions • Industrial, Commodity, or Branded Product • Economy of Scale and the Importance of Organizing Small Farmers • Managing Product Quality
M. Ali Hassan
[email protected]
2
Definitions • Marketing Concept – “The philosophy of the company to satisfy consumer needs at a profit”
• Marketing programs – For the branded products, the seller is able to identify the market, design the products, and position in the targeted market
• Quality – In commodity grading, QUALITY refers to “attributes of commodity that influence its acceptability to a group of buyers and the price they are willing to pay for it” M. Ali Hassan
[email protected]
3
Marketing for different type of Consumer and Product • Consumer marketing – Supplying consumers generally with branded products
• Industrial marketing – Supplying differentiated ingredients to processors and manufacturers
• Commodity marketing – Supplying undifferentiated raw materials M. Ali Hassan
[email protected]
4
Industrial Product • Raw materials from farm or sea when produced to specifications • Specialized commodities: Produced to specification 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 final consumers • Processed specialty ingredients M. Ali Hassan
[email protected]
5
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 M. Ali Hassan
[email protected]
6
Commodity Product • Commodity Pricing Mechanisms – Individual Negotiation – Auction Market – Electronic Market – Formula Pricing – Collective Bargaining – Administrated Prices
M. Ali Hassan
[email protected]
7
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)
M. Ali Hassan
[email protected]
8
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
M. Ali Hassan
[email protected]
9
Strategic Marketing Plan – Define and quantify the market
• Situation analysis – External: • Macro environment: economic, demographic, lifestyle, environmental issues, 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
M. Ali Hassan
[email protected]
10
The Importance of Organizing Small Farmers • 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 M. Ali Hassan
[email protected]
11
Managing Product Quality • Grading: sort a product into quality classifications according to standards that are agreed upon by the industry • Quality is characteristics of the products defined by the standards – Consumer product: Brand is the composite of private “quality” standards – National/International standards for commodity – Specification of industrial products
• Quality of the “total” product include product, package, and service M. Ali Hassan
[email protected]
12
Thank You
M. Ali Hassan
[email protected]
13
Components of Marketing Plan • • • • • • •
Executive summary Situation analysis Marketing objectives Market Selection: Target Markets Marketing Strategy Marketing Mix Budgets, control, and accountability M. Ali Hassan
[email protected]
14
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, Taiwan Agriculture 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
M. Ali Hassan
[email protected]
15