Market Positioning/Marketing Strategies Dr. Wen-Chi Huang Associate Professor Department Of Agribusiness Management, National Pingtung University Of Science And Technology (NPUST), Taiwan

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 2 Content Definitions Industrial, Commodity, or Branded Product Economy of Scale and the Importance of Organizing Small Farmers Managing Product Quality

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 3 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 ”

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 4 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 5 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 6 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 7 Commodity Product Commodity Pricing Mechanisms –Individual Negotiation –Auction Market –Electronic Market –Formula Pricing –Collective Bargaining –Administrated Prices

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 8 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)

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 9 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 10 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 11 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 12 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 13 Thank You

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 14 Components of Marketing Plan Executive summary Situation analysis Marketing objectives Market Selection: Target Markets Marketing Strategy Marketing Mix Budgets, control, and accountability

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regional Forum cum Training Workshop June Hanoi Vietnam 15 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. Schaffner, D.J., W.R. Schroder, and M.D. Earle, 1998, Food Marketing: An International Perspective. Boston: McGraw-Hill