Assignment 1: Agriproduct marketing
Due date: 1 September 2003
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.
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
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.