AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Originated by: Agriculture Department Title: AGRICULTURAL AND FOOD MARKETING MANAGEMENT More details AGRICULTURAL AND FOOD MARKETING MANAGEMENT Contents MARKETING AND AGRIBUSINESS TEXTS I.M Crawford This publication has previously been issued as ISBN 92-851-1003-7 by the FAO Regional Office for Africa The designations employed and the presentation of material in this publication not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries M-62 ISBN 92-5-103904-6 All right reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Information Division, Food and Agriculture Organization of the 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy Preface This textbook, Agricultural and Food Marketing Management, was prepared by staff of the Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa The Centre had the objective of strengthening agricultural marketing training in Eastern and Southern Africa It was funded by the Government of Japan and executed by the Food and Agriculture Organization of the United Nations Based in Zimbabwe, but also serving Kenya, Malawi, Tanzania and Zambia, the Project was able to draw upon the collective experience of eminent academics, government policy markets, experienced managers in agricultural marketing parastatals and pragmatic entrepreneurs from the private sector of agribusiness The Project extended over a five year period, from May 1990 to August 1995, and during that time amassed a wealth of information on marketing practices with in the food and agricultural sectors with in the Sub-Saharan In the first instance, this information was published, by the Project, as a series of proceedings, from workshops, and teaching manuals written by regional and international experts in the twin fields of food and agricultural marketing Marketing and Agribusiness management series This book, is one of a series of texts prepared by the Network and Centre and has the intention of providing those charged with making marketing decisions in the food and agricultural sectors of the developing world, in general, and the tropical regions, in particular with a foundation for better understanding customer motivations and market forces There are four textbooks within the series These are: Basic Finance For Marketers Agricultural And Food Marketing Management Global Agricultural Marketing Management, and Marketing Research And Information Systems These texts are primarily designed as an aid for those teaching marketing as it applies to food and agribusiness The material is therefore relevant to students of agricultural marketing, agricultural economics, agribusiness, management and business studies They are suitable for undergraduate and postgraduate degree courses, as well as vocational and in-service short courses Features of the textbook The learning process is assisted within the text through the provision of a number of learning aids Each chapter has: Chapter objectives - an outline of its objectives in terms of what the reader can expect to learn from reading the particular chapter Chapter summary - a summary which encapsulates the main points of the chapter The summary should prove useful to students wishing to quickly revise the topics within the chapter Key terms the most important terms are listed at the end of each chapter and are intended to act as an aide-memoire - Review questions - each chapter concludes with a series of questions which readers can use to test their knowledge of the material contained with in the chapter References other works upon which the author has drawn in writing this textbook are fully referenced as an aid to students seeding to extend their knowledge of a given topic - 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van Glossary - http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM at the end of the textbook their is a ready reference to the most important terms and concepts The glossary should prove especially useful to those readers who are new to the subject of marketing since it gives a brief explanation of these terms Additional material The text is complemented by an additional set of learning and teaching aids These include a tutor's manual and a set of overhead transparency masters Acknowledgements The author wishes to acknowledge the contribution of Ms Sophie Tsoka who was responsible for the design and production of the visual material both in this textbook and the accompanying overhead transparency masters Thanks are also due to Mr Edward Seidler and Mr Andrew Shepherd of FAO for their critical review of earlier drafts of the text Lastly, the author takes this opportunity to express his gratitude to Kathryn Greenhalgh, Margaret Bowler and Diane Wallace for their painstaking work in proofreading the draft manuscript FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, © FAO 1997 Hyperlinks to non-FAO Internet sites not imply any official endorsement of or responsibility for the opinions, ideas, data or products presented at these locations, or guarantee the validity of the information provided The sole purpose of links to non-FAO sites is to indicate further information available on related topics Contents Preface Chapter Agricultural And Food Marketing Agricultural And Food Marketing Chapter Objectives Structure Of The Chapter The importance of agricultural and food marketing to developing countries The marketing concept and marketing systems Marketing sub-systems Marketing functions Links between agriculture and the food industry Agricultural and food marketing enterprises Marketing boards in developing countries Co-operatives in the agriculture and food sectors Control and management of secondary co-operatives The weaknesses of co-operatives Selling arrangements between co-operatives and their members Summary Key Terms Review Questions Chapter References Chapter Market Liberalisation Chapter objectives 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Structure of the chapter Economic structural adjustment programmes Macro-economic stabilisation The role of the state in liberalised markets Strategies for reforming agricultural marketing parastatals Obstacles to be overcome in commercialisation and Privatisation of agricultural marketing parastatals Dealing with accumulated deficits Encouraging private sector involvement in agricultural marketing Impediments to private sector participation in agricultural markets The impact of the macro-economic environment on private traders Government action to improve private sector performance Summary Key terms Review questions Chapter references Chapter Marketing Strategy, Planning And Control Chapter objectives Structure of the chapter Strategy, policy and planning Strategic business units The need for marketing planning The process of marketing planning Contents of the marketing plan Monitoring, evaluating and controlling the marketing planning Marketing controls Marketing plan control Efficiency control Summary Key Terms Review Questions Chapter references Chapter New Product Development Chapter Objectives Structure Of The Chapter The impetus to innovation The new product development process The adoption process The effect of products characteristics on the rate of adoption Summary Key Terms Review Questions Chapter Buyer Behaviour Buyer behaviour Chapter objectives Structure of the chapter 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM The influences on buyer behaviour Exogenous influences on buyer behaviour Endogenous influences on buyer behaviour The consumer buying decision process Buyer behaviour and market segmentation Lifestyle segmentation Organisational markets Industrial markets Industrial buyer characteristics Summary Key terms Review questions Chapter references Chapter Commodity Marketing Chapter objectives Structure of the chapter Stages in a commodity marketing system Grain marketing Challenges for grain marketing systems Livestock and meat marketing Poultry and eggs marketing The marketing of fresh milk Summary Key terms Review questions Chapter references Chapter Product Management Product management Chapter objectives Structure of the chapter The product The product mix Product line extensions Product line deletions Branding products The advantages and disadvantages of branding Branding decisions Brand loyalty models Homogenous first-order markov models Higher-order markov models Packaging The functions of packaging Packaging technology Recent developments in packaging Chapter summary Key terms Review questions Chapter references 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Chapter Pricing Decisions Pricing decisions Chapter objectives Structure of the chapter Pricing decisions Pricing objectives The laws of supply and demand Sunflower oil Elasticity of demand Cross-price elasticity of demand Practical problems of price theory Cost - revenue - supply relationships The meaning of price to consumers Price as an indicator of quality Pricing strategies Cost-plus methods of price determination Breakeven analysis Market-oriented pricing Psychological pricing Geographical pricing Administered pricing Chapter summary Key terms Review questions References Chapter Channel Management And Physical Distribution Channel management and physical distribution Chapter objectives Structure of the chapter Channel decisions in relation to marketing strategy The value of middlemen Key decisions in channel management Types of distribution system Marketing to middlemen Power and conflict in distribution channels Physical distribution Customer service levels Developing a customer service policy The total distribution concept Warehouse management Inventory management Calculating the economic order quantity Transport management Technological advances in physical distribution Vehicle scheduling and routing Fixed and variable routing systems Vehicle scheduling tools Vehicle scheduling models Computer-based vehicle scheduling Chapter summary 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Key terms Review questions References Chapter 10 Marketing Communications Chapter objectives Structure of the chapter The nature of marketing communications Setting marketing communication objectives Factors influencing the communications mix The marketing communications mix Advertising Sales promotion Public relations Personal selling Training the sales force Change agents Selecting the media Establishing the promotional budget Monitoring the effectiveness of marketing communications Summary Key terms Review questions References Chapter 11 Marketing Research Chapter objectives Structure of the chapter Marketing research The market research brief The purpose of the research The research proposal Step 1, review the research problem Step 2, hypotheses generation Step 3, select the type(s) of study Exploratory research Descriptive research Causal research Step 4, select the data gathering method Problems with secondary sources Primary research Physiological measurement Step 5, development of an analysis plan Step 6, data collection Step 7, performance of the analysis Step 8, reaching conclusions and recommendations Summary Key terms Review questions Chapter references Chapter 12 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.HTM Marketing Costs And Margins Marketing costs and margins Objectives of the chapter Structure of the chapter Assessing the performance of a marketing system Marketing efficiency and effectiveness Operational efficiency Pricing efficiency Identifying marketing costs and margins The reference products concept Handling costs Packaging costs Transport costs Storage costs Processing costs Capital costs Summary Key terms Review questions Glossary of marketing terms Index 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.htm#pre Originated by: Agriculture Department Title: AGRICULTURAL AND FOOD MARKETING MANAGEMENT More details AGRICULTURAL AND FOOD MARKETING MANAGEMENT Contents MARKETING AND AGRIBUSINESS TEXTS I.M Crawford This publication has previously been issued as ISBN 92-851-1003-7 by the FAO Regional Office for Africa The designations employed and the presentation of material in this publication not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries M-62 ISBN 92-5-103904-6 All right reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the copyright owner Applications for such permission, with a statement of the purpose and extent of the reproduction, should be addressed to the Director, Information Division, Food and Agriculture Organization of the 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E00.htm#pre United Nations, Viale delle Terme di Caracalla, 00100 Rome, Italy Preface This textbook, Agricultural and Food Marketing Management, was prepared by staff of the Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa The Centre had the objective of strengthening agricultural marketing training in Eastern and Southern Africa It was funded by the Government of Japan and executed by the Food and Agriculture Organization of the United Nations Based in Zimbabwe, but also serving Kenya, Malawi, Tanzania and Zambia, the Project was able to draw upon the collective experience of eminent academics, government policy markets, experienced managers in agricultural marketing parastatals and pragmatic entrepreneurs from the private sector of agribusiness The Project extended over a five year period, from May 1990 to August 1995, and during that time amassed a wealth of information on marketing practices with in the food and agricultural sectors with in the Sub-Saharan In the first instance, this information was published, by the Project, as a series of proceedings, from workshops, and teaching manuals written by regional and international experts in the twin fields of food and agricultural marketing Marketing and Agribusiness management series This book, is one of a series of texts prepared by the Network and Centre and has the intention of providing those charged with making marketing decisions in the food and agricultural sectors of the developing world, in general, and the tropical regions, in particular with a foundation for better understanding customer motivations and market forces There are four textbooks within the series These are: Basic Finance For Marketers Agricultural And Food Marketing Management Global Agricultural Marketing Management, and Marketing Research And Information Systems These texts are primarily designed as an aid for those teaching marketing as it applies to food and agribusiness The material is therefore relevant to students of agricultural marketing, agricultural economics, agribusiness, management and business studies They are suitable for undergraduate and postgraduate degree courses, as well as vocational and in-service short courses Features of the textbook The learning process is assisted within the text through the provision of a number of learning aids Each chapter has: Chapter objectives - an outline of its objectives in terms of what the reader can expect to learn from reading the particular chapter Chapter summary - a summary which encapsulates the main points of the chapter The summary should prove useful to students wishing to quickly revise the topics within the chapter Key terms the most important terms are listed at the end of each chapter and are intended to act as an aide-memoire - Review questions - each chapter concludes with a series of questions which readers can use to test their knowledge of the material contained with in the chapter References other works upon which the author has drawn in writing this textbook are fully referenced as an aid to students seeding to extend their knowledge of a given topic - 24/12/2006 12:14 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E13.htm Sales promotion Incentives intended to encourage immediate sales of a products or services The effects of promotion are characteristically short term and therefore sales promotion is a tactical marketing instrument Selective distribution The appointing of a limited number of specially selected retailers, or other middlemen to distribute a product line Secondary research This term describes data which has been collected by individuals or agencies for purposes other than those of a given research study Shrinkage Losses in the value of stocks held due to spoilage, deterioration, or pilfering during storage and/or transportation Skimming the market Profit objectives are achieved through a sizeable margin per unit rather than by maximising sales volumes Social marketing The process of identifying human needs in non-competitive economies and/or sectors of society and determining the means of efficiently and effectively delivering products and services to meet these needs Stabilisation programmes IMF sponsored economic recovery programmes intended to stimulate the demand side of the economy Stabilisation policies work to reduce a country's expenditure levels to match national income They provide the economic stability necessary before increased growth can be achieved The policy instruments typically employed in the pursuit of economic stabilisation are: exchange rate policy, fiscal policy and monetary policy Stakeholders Those individuals or groups who affect and/or are affected by, the operations of the organisation including, consumers, members of the channel of distribution channel, suppliers, the general public, shareholders and government Stockouts A failure to fulfill an order from inventory Strategic business units (SBUs) A business entity belonging to a larger commercial enterprise but having its own defined business strategy and whose management has responsibility for its profits and sales performance The concept of a strategic business unit has its origins in large and diversified commercial companies It was developed as a means of retaining the vitality of the entrepreneurial spirit by giving management a high degree of responsibility and autonomy in decision making Structural adjustment programmes A suite of macro-economic policies, sponsored by the World Bank, designed to improve the structure of production by allocating resources in accordance with their opportunity cost rather than on any other basis and thereby maximising the efficiency of resource allocation, increasing the value of current output and improving the prospects for the rate of growth over time and avoiding the need for subsidies and taxes in support of the production structure (Also termed ESAPs or Economic Structural Adjustment Programmes) Syndicated research The collection of marketing data using standardised procedures which is then sold to a number of different clients Tactics The pursuance of a marketing plan to achieve short term objectives Tangible product The physical features and characteristics perceived through the senses touch, smell, taste, vision and hearing Target market Those segments of a market which an organisation decides it will attempt to serve Each target group of customers has similar needs and/or characteristics and if successfully penetrated will help the organisation achieve its marketing objectives (see also ‘market segments’) 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van http://www.fao.org/DOCREP/004/W3240E/W3240E13.htm Test market The trial launch of a new product or service into a confined geographical area or market segment with the purpose of testing the performance of the proposed marketing mix prior to the full scale market introduction Tied-agreements Agreement whereby an intermediary wishing to become the exclusive dealer for a given product must also carry others within the supplier's product line Trademark A brand or part of a brand that to which a seller has a legally enforceable, exclusive, right to use Trading up The process of moving consumption to higher priced versions of a product Uniformed delivered pricing Where all buyers pay the same price for the product irrespective of differences in their physical distance from the source of supply Universal Product Code (UPC) A set of numbered vertical bars appearing on the labels or packs of goods and which can be read by scanner systems These numbers and bars constitute a code containing such information as country of origin, supplier, product category, product size, pack type and price Variable costs Those costs which vary directly with the level of production Vehicle scheduling models Mathematical models which help management route transport vehicles in such a way as to minimise both the time taken to make deliveries and total transport costs of deliveries Examples of mathematical models are; the savings method, the simplified delivery service model and TRANSIT Vertical marketing systems A system in which the producer(s), wholesaler(s) and retailer(s) act as a unified system with a resultant increase in efficiency of the system through the removal of duplicated services, economies of scale and reductions in potential conflicts of interest Wholesalers Intermediaries acting to make marketing systems more efficient by buying a variety of products, in fairly large quantities, and selling these items on to other businesses who require relatively small quantities of a variety of goods Zone pricing A pricing scheme which results in all customers within a defined geographical area paying the same price with different prices being paid by customers located in other geographical areas 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm Originated by: Agriculture Department Title: AGRICULTURAL AND FOOD MARKETING MANAGEMENT More details Index A add value 141 adding value 23 administered pricing 174 adoption process 86 early adopters 86 early majority 86 Innovators 86 laggards 87 late majority 86 advertising 7, 56, 210, 211, 249 cost-per-thousand method (CPM) 229 hierarchy of effects model 216 African Distillers 211 agricultural equipment 51, 184 agricultural light engineering programme 103 agrochemicals 88 fungicides 89 aid 40 Algeria 141 allocational efficiency 27 animal fats, 163 animal feed 122, 240 animal feed systems 240 animal health and hygiene 178 ARMARC 119 asparagus 186 attitudes 99 auctioneer upward bidding and the Dutch method 184 auctions 123 augmented product 56, 137 augmented product, 166 Australia 94 average fixed cost 165 average variable cost 165 B banana 55 bananas 248 bar code 199 basic price 166 beef 130, 163 black markets 16 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm Boston Matrix 140 Botswana 125, 213 Botswana 217 brainstorming 75 brand extension 144 brand loyalty 11 branding 136, 141, 142, 143, 153 brand choice 145 brand image 140 brand loyalty 141, 145 heterogeneity assumption 146 homogeneity assumption 146 Markov chain 146 second-order models 149 stationarity assumption 146 stationary probabilities 147 steady state 148 time-variant assumption 146 transitional probabilities 145 brand management 143 brand manager 66 brand name 137, 141, 143, 144 brand proliferation 142 branding strategy 141 connotative meaning 144 dealer's brand 143 denotative meaning 144 distributor's brand 143 manufacturer brand 143 multibrand 144 own-label 143 premier brands 150 premium brands 143 private brand 143 Brazil 166 breakeven point 169 broilers 127 Brooke Bond Liebig 11 Bulog 258 business analysis 78 business policy 46 buyer-of-last-resort 116, 132 buying decision models 100 C Cadbury's 84 Campbell Soup Company 247 Canada 185 cannibalising 84, 144 Cape 141 Cargill 11 Carmel 141 carriers common carriers 198 contract carriers 198 private carriers 198 cassava 8, 237 cassava grater 237 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm caterpillar 138 change agents 226 channel management 177 channels of distribution 138 chickens 127 China 55, 95, 110 Chiquita 141 Ciba 151, 178 co-operatives 15, 18 Coca Cola 184 Coca Cola bottle 151 cocoa 14 coconut 179 coffee 14, 126, 141, 236 coffee beans 8, 166 cognitive dissonance 98 Cognitive consistency theories 98 Cold Storage Commission 32 Coles and Beharrell 149, 150 Colombia 141 combine harvester Axial Flow Combine Harvester 88 commissioning agents 123 commodities 113 commodity 114 competitive edge 137 concentrated marketing 105 concept test 77 concept testing 76, 249 conformation 124 containerization 199 copy research 230 core benefit 137, 142 core product 56, 166 core strategy 56 corporate objectives 158 corporate planning 46 corporate strategy 46, 158, 211 corporate strategy 158 cost-plus approach to pricing 168 cotton 14, 117, 186 Cotton Lint & Seed Marketing Board 174 Cotton Marketing Board 32 cross price elasticity of demand 164 cross-price elasticity 165 custom millers 35 customer service levels 189 D Dairiboard 131 Dairy Marketing Board 32 decision making unit 106 decision-making unit (DMU) 100 Del Monte 11, 109 delphi forecasting 75 demographic 104 depth interviews 245 deregulated markets 34 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm derived demand 107 descriptive research 240 diary panels 249 differential advantage 56 differentiated marketing 105 differentiated product 181 direct product profitability 193 diseconomies of scale 165 distribution channel 178 distribution requirement planning (DRP) 195 distribution strategies exclusive distribution 181 extensive distribution 181 selective distribution 181 Du Pont12 152 dustbin audits 247 Dutch method clock auction 184 E early adopters 240 economic efficiency 27 economic order quantity 197 economic structural adjustment in many developing countries 23 economic structural adjustment programme (ESAP) 26, 27 economic structural adjustment programmes economic structural adjustment programmes (ESAP) 130 economies of scale 165 eggs 126, 128, 262 electronic scanners 199 endogenous factors 93 entrepreneurs 41 entrepreneurship 34 EPOS 199 Ethiopia 8, 126 European Union 124 evoked set 102, 103 exchange rate 39 exogenous factors 93 exploratory research 240 export boards 16 extended family 95 extensive distribution 181 F FAO 244 fertilisers 125 fertilizer 40 field experiments 248 financial institutions 39 fish 163 fixed costs 165 Foba Engineering 51 focus groups 77, 245, 246 food security 16 foreign exchange 38, 40, 41 fruit juice 150 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm full-cost pricing 168 G gari 8, 237 Geest 109, 141 Ghana 38 goat 163 government markets negotiated contracts 109 open bids 109 grades 117 grain 9, 36 Grain Market Board 34 Grain Marketing Board 32 Grain Marketing Board (GMB) 37 GRAMIL 119 Gross Michel 248 Gross 166 gross margin 264 groundnut 126 groundnuts 14,16 gur H hammer mill 166 hammer mills 185 herbicides 95, 219 hides 125 hierarchy of effects 213 hodzeko 159 Hoechst 151 horizontal marketing systems 184 hypotheses 255 hypothesis null hypothesis 239 I ICI 75, 151 ILO 244 IMF 174 in-depth interviews 245 income elasticity of demand 125, 133 incremental-cost pricing 168 India 141, 185, 219 Indonesia 121, 122, 258 industrial buyers 16 industrial roller mills 118 informal markets 40 innovation idea generation 75 new product ideas 71 intensity of distribution 181 International Coffee Organisation 236 international harvester 88 International Monetary Fund 26 interpersonal influence 211 inventory management 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm bulk discounts 198 economic order quantity (EOQ) 196 fixed order quantities 197 fixed order times 197 inventory carrying costs 192, 196 order processing costs 196 safety stock 198 Iran 126 irrigation systems 51 Israel 144 ITC 244 Ivory Coast 55 J Jaffa Sweetie 141, 144 Japan 121 Japanese materials requirement planning Kanban 195 joint venture 10 Just-In-Time (JIT) 193 K Kenya 130, 141, 174 Kenya Cooperative Creameries 131 Kotler 137 L laboratory experiments 248 lamb 163, 165 lard 125 learning 98 cues 98 drive 98 Lesotho 186 levels of measurement 252 interval 252 nominal 252 ordinal 252 ratio 252 Levitt 137 liberalised markets 184 licensed buying agents 15 livestock feed 8, 219 livestock products 262 load planning 200 local buying agents 14, 115 lorenz curves 61, 66, 139, 140 the 80/20 principle 65 loss leaders 159, 173 M maize 14, 34, 37, 118, 159 Malawi 36, 37 Malawi, 119 Mali 36 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm management information system 193, 206 Manilay 137 manufacturing resource planning (MRP II) 195 marginal analysis 166 marginal analysis, 157 mark-on 168 mark-up 165, 168 market intelligence 10 market liberalisation 116, 174, 210 market penetration 181 market planning 46 market positioning tests 76 market research 151 market segmentation 104, 142 market share 158 market share analysis 60 marketing boards Export Marketing Boards 16 Food Marketing Boards 16 marketing communications marketing concept marketing costs 74, 264 marketing efficiency 257 marketing expense to sales ratio 60 marketing mix 2, 7, 47, 104, 156, 158, 210, 225, 237, 248 marketing plan 212 marketing plans brand plans 50 divisional plans 50 functional plans 50 product line plans 50 product plans 50 product/market plans 50 marketing profitability analysis 61 marketing strategy 85, 211, 212, 225 Markov Models 146 mass market 177, 181 mass marketing 158, 181 mass media 211 materials requirement planning (MRP) 195 materials requirement planning system (MRP) 195 McCarthy 149 meat 126 media panels 249 Mercat Group of Companies 119 merchandising middlemen 180 milk 89, 126, 130, 138, 150, 185 butterfat 132 fermented milk 132 millers 34, 260 millet 14, 185 milling equipment 51 milling machine 137 mission statement 51 Mitsubishi 152 modified starches 163 monopsony 34 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm Monsanto 141, 151 morphological analysis 75 multibrand 144 Murphy 141 N Narmibia 94 National Milling Corporation 119 naturalistic inquiries 247 Nepal 8, 117, 259 niche market 75 niche market Nigeria 2, 51, 94, 99, 126, 185 nuclear family 95 O oat 75 observational methods 247 offal 125 oilseeds 117 olive oil 163 operational efficiency 27, 258, 259 operational marketing plans 50 operational planning 46 orange juice 74 order buyers 122 organisational buying 106 organisational markets 107 government markets 107 industrial markets 107 reseller markets 107 ostrich 94 own-label 143 Oxfam 106 P packaging 137, 149, 150, 153 Active packaging 152 aseptic packaging 152 Oxygen scavenger 152 Packaging design 150 polyethylene terephalate 151 sous-vide vacuum packaging system 152 paddy 260 Pakistan 103, 213 palletisation 199 palm oil 8, 14, 16, 163 pantry audits 247 parallel market 16 parallel markets 174 parastatal 36, 174 parastatals 3, 114, 132, 160 payback period 78 pelts 125 penicillin 75 personal interviews 77 personal selling 210 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm Peru 88 Philippines 137 physical distribution 177 marketing logistics 188 materials management 188 plantations 179 point of equilibrium, 160 polyethylene terephalate 152 polystyrene 75 portfolio analysis 52, 72 Boston Consulting Group growth-share matrix 72 cash absorbers 73 cash generators 73 growth-share matrix 72 potatoes 262 poultry 163 power in a channel 186 premium price differential 166 pressure groups 222 price band 168 price elasticity of demand 162, 163 price spread 259 pricing administered, pricing 174 discriminatory Product-form pricing 171 Segmentation pricing 171 Time pricing 171 geographical FOB pricing 172 freight absorption pricing 173 Uniform delivered pricing 173 Zone pricing 173 pan-territorial pricing 173 premium-priced 186 price lining 171 promotional pricing 173 psychological customary pricing 171, 172 Odd pricing 172 odd-pricing 171 Product line pricing 172 Quality pricing 171 psychological pricing 171 Skimming strategies 171 pricing decisions 56 pricing efficiency 261 pricing objectives 157 primary research 244 processing product augmented product 142, 153 core product 153 generic products 141, 153 product differentiation 142 product features 142, 153 product line 67, 138, 139, 140, 144 product line extension 82 product map 140, 153 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT 10 van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm product mix 138, 139 product portfolio 138, 142, 153 tangible product 137, 153 product life cycle 52, 138, 158, 214 product life cycle (PLC) 72 product line pricing 172 product testing 76 product's life cycle 178 production millers 35 project SAPPHO 80 projective techniques 245, 246 promotion 7, 56 promotional strategy 178 public enterprise 12 public relations 56, 211 publicity 210 pull strategy 178 push strategy 179 Q qualitative research 245 quality 143, 151 queleatox 218 R reference groups 95 reference product 264 relationship marketing 159 research brief 235 research design 238 return on investment 157 return-on-investment 78 revenue pooling 174 rice 14, 137, 258, 260, 262 Rio Tinto 51 risk bearing 10 roller milling technology 34 rubber 14 sale-on-commission 23 S sales agents 183 sales analysis 59 sales brokers 183 sales force 223 sales promotion 210 bonus purchases 221 cash incentives 221 competitions 221 cooperative advertising/promotions 221 discount coupons or money-off packs 220 lotteries, games or competitions 220 point-of-sale merchandising 220 premiums 220 samples 220 trade allowances 221 trade shows and exhibitions 221 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT 11 van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm trading stamps 220 sampling methods 254 scenario writing 75 scheduled crops 14 Schering 151 Scherings 151 secondary data 242 secondary processing 12 seed 88 self-image 100 selling 56 Senegal 36, 37 sensitivity analysis 63 simulated test markets 249 skimming the market 181 social marketing soft drinks 236 Somalia 40 sorghum 14, 185, 213, 217, soured cream 159 South Africa 94 SPAR 184 Sri Lanka 141, 179, 213 stakeholders 159 stockout 198 stockouts 196 storage 7, 39 storage costs 191 strategic alliances 184 strategic business unit 48, 68 strategic business units 31, 157 strategic grain reserve 38, 40 strategic marketing plans 50 strategic planning 46 strategic plans 211 straw 240 structural adjustment programmes 116 Sudan 128 sugarcane sunflower seed oil 16 supply chain 150 surveys 245 Swaziland 94 Swiss 151 SWOT 52 syndicated research 249 synectics 75 T tangible product 56 Tanzania 37, 39, 119 target market target marketing 142 tea 8, 14, 150 tea harvesting equipment 179 test market 81, 85 Simulated test market 83 Standard test market 83 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT 12 van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm test marketing 78 test markets 248 Tetra Pak 150 tied-agreements 182 time series forecasting 241 tobacco 14 tomato 99 total cost approach 191 total distribution concept 191 total fixed costs 165 total transport costs 201 tractors four wheeled tractors 213 trade associations 222 transport transportation costs 191 Typhoo 150 U Uganda 36, 37, 39 undifferentiated marketing 105 UNDP 244 unique selling proposition 56,142, 228 unique selling proposition (USP) 218 United Fruit 109 United Fruits 141, 248 United Kingdom 94 upward bidding 184 USA 94 USP 228 V Valery 248 value added 264 variable costs 165 vegetable oil 163 vehicle routing 201 vehicle scheduling 201 computer-based routing 203 computerised models for vehicle scheduling 205 fixed routes 202 the savings method 203 the simplified delivery service model 203 TRANSIT model 203 variable routes 202 W Wakomet 185 warehouses 191, 195, 196, 197 weights and measures wheat 262 wholesale markets 110 wholesalers 260 full-service 182 wine 97 World Bank 26, 27, 35, 174, 244 24/12/2006 12:18 AGRICULTURAL AND FOOD MARKETING MANAGEMENT 13 van 13 http://www.fao.org/DOCREP/004/W3240E/W3240E14.htm Y yoghurt 105 yoghurts 138 Z Zambia 36 Zimbabwe 32, 34, 36, 37, 94,131, 159, 211 Zimbabwe Cotton Marketing Board 137, 186 24/12/2006 12:18 ... of marketing communications Setting marketing communication objectives Factors influencing the communications mix The marketing communications mix Advertising Sales promotion Public relations... of marketing communications Setting marketing communication objectives Factors influencing the communications mix The marketing communications mix Advertising Sales promotion Public relations... Agriculture Department Title: AGRICULTURAL AND FOOD MARKETING MANAGEMENT More details AGRICULTURAL AND FOOD MARKETING MANAGEMENT Contents MARKETING AND AGRIBUSINESS TEXTS I. M Crawford This publication