Market Positioning/Marketing

Strategies

Dr. Wen-Chi Huang

Associate Professor
Department Of Agribusiness Management,
National Pingtung University Of Science
And Technology (NPUST), Taiwan
 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 Regiona 2
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 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 Regiona 3
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 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

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 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

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 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 Regiona 6
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 Commodity Product

• Commodity Pricing Mechanisms

– Individual Negotiation
– Auction Market
– Electronic Market
– Formula Pricing
– Collective Bargaining
– Administrated Prices

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 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)

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 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

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 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 Regiona 10
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 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

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 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 b
y the standards
– Consumer product: Brand is the composite of private “q
uality” standards
– National/International standards for commodity
– Specification of industrial products
• Quality of the “total” product include product, pac
kage, and service
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 Thank You

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 Components of Marketing Plan

• Executive summary
• Situation analysis
• Marketing objectives
• Market Selection: Target Markets
• Marketing Strategy
• Marketing Mix
• Budgets, control, and accountability

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 References
• Asian Productivity Organization (APO), 2002, Food Standards and La
beling Systems in Asia and the Pacific. Tokyo: APO
• Bearden, W.O., T.N. Ingram, and R.W. LaForge, 2001, Marketing: Pri
nciples & Perspectives. Boston: McGraw-Hill
• Council of Agriculture (COA), Executive Yuan, 2008, Taiwan Agricult
ure 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

Making Markets Work for Small Farmers: Understanding Marketing and Market Intermediation/ First Regiona 15
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