In this assignment you are asked to critically appraise the adaptation of marketing philosophies to agribusiness, using the core marketing management philosophies identified by Kotler, Fitzroy & Shaw (Reading 1, pp. 21-26) as your primary theoretical focu

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S Rowlands

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Assignment 1: Agriproduct marketing

Due date:        1 September 2003

Value:        15%

Length:        1,000 words

This assignment is designed to:

  • encourage you to engage the available information and ideas about agriproduct marketing;
  • develop your understanding of this information and ideas as you seek to explain it clearly;
  • allow you to demonstrate your understanding and knowledge;
  • develop your ability to communicate well in writing.

Assignment task

In this assignment you are asked to critically appraise the adaptation of marketing philosophies to agribusiness, using the core marketing management philosophies identified by Kotler, Fitzroy & Shaw (Reading 1, pp. 21-26) as your primary theoretical focus. You should identify and give examples for a particular agriproduct or products along a supply chain e.g. farm level, wholesale level and retail level).

Marketing is defined “as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other”.

(Kotler, P., Amstrong G., Brown L & Adam S., - Marketing – 4th Edition. Prentice Hall Australia Pty Ltd, pg 6)

The Figure 1-1 shows how core marketing concept is linked, with each concept building on the one before.

                 

                   Figure 1.1 Core Marketing Concepts

Source -< www.ba.metu.edu.tr/~cagli/ba7702/material/intro.ppt>

Marketing management is described as a task carrying out to achieve desired exchanges with target markets. There are five philosophies under which organisation conduct their marketing activities:

  • Production concept
  • Product concept 
  • Selling Concept 
  • Marketing Concept 
  • Societal Marketing Concept 

THE PRODUCTION CONCEPT

Production concept emphasizes priority of production itself. It is considered to be one of the oldest and most applied concept that guide sellers. It is based on assumption that customer will favour products that are available and highly affordable. Manufacturers do not pay much attention to the width, depth and consistency of the production program, but concentrate on finding the ways how to increase production and distribution efficiency. Volume of production is the main indicator of business success, but not invoiced sales and position of the product in the market. The company that operates under production philosophy run a risk of focusing too narrowly on their own operations, where the need of the customer has been ignored.

This approach works well when there is a great demand for a product or when the cost of the product is so high that it needs to be manufactured cheaper in order to get consumer to adopt it.

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THE PRODUCT CONCEPT

The Product Concept focuses on the feature of the product – constantly seeking new product improvements. Its’ assumption is that the customer will buy the high quality products with the greatest performance and features.  

Company directs its potentials to the production of high quality products and continuously works on their improvement, not noticing often-large changes that occur in the supply market. There is a risk that organisation loses sight of underlying customer needs by only focusing on existing wants. When focusing on the product concept instead of the benefit that consumers receive from ...

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