AGRICULTURAL

MARKETING/AGRIBUSINESS
MARKETING
Nanette C. Abelilla-Aquino
Assistant Professor
Department of Agribusiness Management
College of Economics and Management
U.P. Los Banos

June 1, 2011
Contents
 Pinoy Marketing
 What Marketing is Not
 The Strategic 3 Cs of Marketing, Marketing
Defined
 Core Concepts of Marketing
 Agribusiness Defined, Myths of Agribusiness
 Importance of Marketing/Agribusiness Marketing
 Classification of Marketing Activities
 Key Players in the Agribusiness Mktg System
 Marketing Functions
 Issues in Agribusiness Marketing in the
Philippines
 Marketing Considerations and Strategies for
Agribusiness Products
 Pinoy Marketing

What’s so “hot” about

marketing in the
Philippines?
 Jollibee
-Starting out as an ice cream parlor and
discovering their destiny as a hamburger
chain in 1978, Jollibee has attained
worldwide admiration in so short a time.
-- Today, Jollibee is also the owner of
Chowking and Greenwich
-- They also own the Delifrance franchise in
the Philippines
 Eight O’Clock
-In the powdered juice market, Eight
O’Clock has surpassed another
multinational brand as the dominant leader
in the Phil since 1991

-Its
revenues continued to grow reaching
nearly P3 billion in sales in 2000 despite the
one-time 25% price off challenge from its
multinational competitor in 1995
 United Laboratories
-Filipino United Laboratories, better
known as Unilab, and owner of
known brands like Biogesic, Alaxan,
and Neozep, accounted for over 20%
of the entire Phil pharmaceutical
market, the highest by any drug
company.
 Hapee
-Hapee toothpaste , owned by Cecilio
Pedro, has since been the first and by
far the only Filipino company, that
has survived and cornered
respectable market shares in the
toothpaste market which has long
been dominated by multinationals
Pinoy Marketing
In processed meat, it’s Purefood; in
ice cream, you simply must try
Selecta. In cigarettes, it’s Hope.
UFC dominates the banana catsup
market, the preferred catsup in the
Philippines with over 100 million
bottles consumed annually.
Pinoy Marketing
The Philippines is also home to
several role model brands
worldwide. The dominant market
shares in the Philippines of Procter
and Gamble’s Safeguard soap,
Nestle’s Bear Brand milk and San
Miguel beer are the highest in any
single market worldwide.
Pinoy Marketing
In the telecom industry, we are known as the text
capital of the world. The GSM Association
estimates that of the 200 billion text
messages transmitted worldwide for the year
2001, the Philippines accounts for over 80
million messages a day. This means that
while the Philippines comprises only about
1.2% of the world population, it is responsible
for some 15% of the world’s text messages.
Aren’t you proud about
the marketing
capabilities of the
Pinoy? Aren’t you
proud to be a Pinoy?
What Marketing is Not

“marketing as selling”
While selling is an important
activity of marketing and is a
central function in daily business
operations, marketing is not
selling
What Marketing is Not

“marketing equals advertising”

While the importance of
advertising in marketing is not to
be underestimated, the fact of the
matter is, advertising, like selling,
is merely a part of the many
functions of marketing.
The Strategic 3Cs of Marketing
Customer

Company

Competition
 Strategic 3 Cs of Marketing

A marketer should always

consider the strengths and
weaknesses of his company in
serving the needs and wants of his
customers. However, it should be
able to do this profitably better
than his competition.
3 Cs Key Objectives

1. Customers To satisfy the needs,

wants and expectations of
target
customers.

2. Competition To outperform competition.

3. Company To ensure corporate health

and profit.
3 Cs Outputs

Customers Sales

Competition Market shares

Company Profit
 Key Result Areas

• The output of Customers,

Competition, and Company is
collectively called key result
areas. These outputs are sales,
market shares, and profit,
respectively.
 Key Result Areas
A. Sales
Sales results from satisfying
customer’s needs and wants.
Before one can sell anything,
a demand must be created.
More sales will come when
more demand is created.
 Key Result Areas

* In the category of fast

moving consumer goods like
Pantene shampoo and Surf
detergent, the first step in
creating demand is by
building awareness for the
brand and the product via
mass media.
 Key Result Areas

* For direct selling companies

like Avon and Sara Lee,
demand for their products is
created by recruiting an
increasing number of sales
people.
 Key Result Areas

To increase sales revenues, a

firm can increase either the price
or the sales volume. The price,
however, can only be increased
up to a certain threshold and will
affect demand if not done within
the affordability equation of its
target market.
 Key Result Areas

Sales volume can be

increased through what is
known as the 3 Us of
marketing:
1. New USERS
2. New USAGE
3. More USAGE
 Key Result Areas

1. New USERS – Who uses the

product?

• Pearl shake pioneers Zagu and

Orbitz are still not available in
many parts of the Philippines.
They can expand regionally and
even internationally
 Key Result Areas

1. New USERS – Who uses the

product?

• Diet Coke was formulated to cater to

people who do not like or can not take
the sugar content of regular Coke.

• Sustagen Premium was formulated

as an alternative beverage for the
 Key Result Areas

2. New USAGE – For what purpose

is the product used?
• Petroleum jelly was originally
used for vehicles but is now used
as moisturizer and ointment for
insect bites
 Key Result Areas

2. New USAGE – For what purpose

is the product used?

• Arm and Hammer introduced its

baking soda as a new way to
deodoorize refrigerators
 Key Result Areas

3. More USAGE – When and in

what occasions is it used?

• Del Monte regularly comes out with

recipes to encourage more usage of
Del Monte products
• Star margarine invented “Star Rice”,
an innovation that expands the usage
of margarine other than on bread
 Key Result Areas

B. Market Shares

Market share means the

ratio of your brand sales
versus the total market
sales.
 Key Result Areas

B. Market Shares
• MSG maker Ajinomoto and Nescafe
coffee are examples of brands with
dominant market shares in the
Philippine food and beverage market

• Honda and Toyota are neck-and-neck

in the passenger car market since the
mid-1990s
 Key Result Areas

C. Profit

Profit is an indispensable component

for a firm to continuously satisfy
its customers. Profit, however,
must always come hand-in-hand
with honor.
 Marketing Defined
 Marketing is the process of
continuously and profitably
satisfying the target customers’
needs, wants and expectations
superior to competition (Josiah
Go)
 Marketing Defined
 Marketing is the societal process by
which individuals obtain what they
need and want through creating
offering and freely exchanging
products and services of value with
others (Kotler et.al)
 Marketing is a series of services
involved in moving a product from the
point of production to the point of
 Importance of Marketing
 It affects us in every moment of our
lives.
 It provides a host of opportunities for
business and career development
 Good marketing system speeds up
growth of developing countries.
 Importance of Marketing
 Effective marketing is needed to
link producers and consumers.
 Effective marketing addresses
discrepancies and separations
between consumers and
producers.
PRODUCERS CONSUMERS
• produce and sell Discrepancy in quantity
in large quantities • prefer to buy and
consume in small
• specialize in quantities
producing a narrow
assortment of goods • need a broad
and services Discrepancy in assortment of
assortment goods and services

Marketing
overcomes these
discrepancies.
 PRODUCERS CONSUMERS
• tend to locate where it is • located in many scattered
Separation in Location
economical to produce locations

• produces goods and • may not want certain

services on a regular or Separation in Time goods and services all the
seasonal basis time or may regularly
demand seasonal products

•may not know who needs • do not know what is

what, where and when available from whom,
where, and when

•value goods and services • value products in terms

in terms of costs and Separation of info of economic utility and
competitive price ability to pay

•hold title to goods and Separation in • want goods and services

services that they Value that they may not own
themselves do not consume

Separation in Ownership

Marketing overcomes
these separations
Scope of Marketing
10 Types of Entities Marketed by Marketing
People
Entities Examples
1.Goods Agricultural products
2.Services Construction, health
services
3.Experiences Experience of going to
Disneyland
4.Events Trade shows,
Octoberfest, Olympics
Scope of Marketing

Entities Examples
5. Places Entertainment and tourist
spots
6. Persons Celebrities, consultants
7. Properties Real estate, stocks
8. Organizations U.P. Los Baños
9. Information Magazines, Encyclopedia
10. Ideas Consultancy companies
Core Marketing Concepts
Target Markets and Segmentation
• A marketer can rarely satisfy
everyone in a market.
• Therefore, marketers start by
dividing up the market. They identify
and profile distinct groups of buyers
who might prefer or require varying
product and service mixes.
Core Marketing Concepts
Target Markets and Segmentation
• A market segment consists of a
group of customers who share a
similar set of wants

(there are car buyers who are primarily

seeking low-cost basic
transportation and those seeking a
luxurious driving experience)
Core Marketing Concepts
Target Markets and Segmentation
• The marketer does not create the
segments; the marketer’s task is to
identify the segments then decides
which segment(s) present the greatest
opportunity – which are its target
markets.
Core Marketing Concepts
Target Markets and
Segmentation

• Segmentation is done to
“homogenize” markets
• Products contain offerings
directed to specific target
markets
 Core Concepts of Marketing
 Marketers and Prospects

 A marketer actively seeks for

prospects for exchange of values.
 Prospects are those identified to
have a certain need and want
which a company can effectively
serve.
Core Marketing Concepts
Needs, Wants and Demand
• Needs – basic human requirements.
People need food, air, water, clothing,
and shelter to survive
• These needs become wants when
they are directed to specific objects
that might satisfy the need. A Japanese
needs food but wants sushi, tempura,
and Asahi beer.
Core Marketing Concepts
Needs, Wants and Demand
• Demands are wants for specific
products backed by an ability to pay.
Many people want a BMW; only a few
are able and willing to buy one.
• Companies must measure not only
how many people want their product
but also how many would actually be
willing and able to buy it.
 Core Concepts of Marketing
 Products or Offerings
 Products – anything offered for
sale, attention and acquisition
 Products come in the form of
goods, services, and ideas.
 Core Concepts of Marketing
 Value and Satisfaction

Value is the consumer’s estimate of the

overall capacity of the product to
meet desired needs and wants

Satisfaction is the end result when a

product is able to meet customer
expectations.
 Core Concepts of Marketing
Exchange and Transactions
Exchange is the prerequisite of marketing
Exchange takes place if : there are two
parties who are willing to exchange
products and services; each party is
capable of communication and delivery;
each party has something to offer for
exchange

Transaction is the trade of values

Core Marketing Concepts
Exchange and Transactions
• A transaction is a trade of values between two
or more parties: A gives X to B and receives Y in
return. Juan sells Pedro a television set and
Pedro pays P10,000 to Juan. This is a classic
monetary transaction; but transactions do not
require money as one of the traded values. A
barter transaction involves trading goods or
services for other goods or services
Core Marketing Concepts
Relationships and Networks
• Relationship marketing has the aim
of building mutually satisfying long-
term relations with key parties –
customers, suppliers, distributors – in
order to earn and retain their business

• This is a process of forging long term

relationships with the customers
Core Marketing Concepts
Relationships and Networks

• The ultimate outcome of

relationship marketing is the
building of a unique company
asset called a marketing network.
Core Marketing Concepts
Relationships and Networks
• A marketing network consists of
the company and its supporting
stakeholders (customers, employees,
suppliers, distributors, retailers, ad
agencies, university scientists, and
others) with whom it has built mutually
profitable business relationships
Core Marketing Concepts
Marketing Channels
• Marketers make the products
available to the customers through
marketing channels

• To reach a target market, the

marketer uses three kinds of marketing
channels: communication channels,
distribution channels and service
channels
Core Marketing Concepts
Marketing Channels
• Communication channels deliver and
receive messages from target buyers, and
include newspapers, magazines, radio,
television, mail, telephone, billboards,
posters, fliers, CDs, audiotapes, and the
Internet. Beyond these, communications are
conveyed by facial expressions and clothing,
the look of retail stores, and many other
media
Core Marketing Concepts
Marketing Channels
• The marketer uses distribution
channels to display, sell, or deliver
the physical product or services to
the buyer or user. They include
distributors, wholesalers, retailers,
and agents.
Core Marketing Concepts
Marketing Channels
• The marketer also uses service
channels to carry out transactions
with potential buyers. Service
channels include warehouses,
transportation companies, banks,
and insurance companies that
facilitate transactions.
 Core Concepts of Marketing
 Supply Chain

 Also known as the value delivery

system
 Describes the long process which
starts from raw material sourcing to
the marketing of the final products.
 Core Concepts of Marketing
 Competition

 One of the realities in marketing

 Includes actual and potential
rivals in product and service
marketing
 Core Concepts of Marketing
 Marketing Environment

Macro-environment includes demographic,

economic, natural, technological,
politico-legal and socio-cultural
environments.
Industry environment includes the
participants in the supply of raw materials
and production, distribution, promotion
and consumption of products.
 Core Concepts of Marketing
 Marketing Mix

The set of tools a firm uses to pursue

marketing objectives with the target market.
Four Ps of marketing – product, price,
promotion, place
Four Cs of marketing – customer satisfaction,
cost, convenience, communication
 1
External Marketing Environment
External Environment Social
is not controllable Social Ever-Changing
Change
Change Marketplace
Demographics
Demographics

Economic
Economic
Product
Product Conditions
Distribution Conditions
Distribution
Promotion
Promotion
Price
Price
Competition
Competition Target Market
Political
Political&&
Legal
LegalFactors
Factors
Technology
Technology
Environmental
Scanning
Chapter 3 Version 6e ©2002 South-Western 7
 Agribusiness Defined
 … the sum total of all operations involved in
the manufacture and distribution of farm
supplies; production activities on the farm; and
the storage, processing, and distribution of
farm commodities and items made from them
(Davis and Goldberg, 1957)
 Agribusiness Sectors
 encompasses the whole of the agriculture
sector plus a portion of the industrial &
service sectors

AGRICULTURE INDUSTRY
(Agroindustries)

SERVICES
(Agroservices)
 Myths of Agribusiness
 Agribusiness is agricultural production
through farming.

 Agribusiness is big business.

 Agribusiness is purely a private sector

undertaking.
 Vertical Structure &
Coordinators
Consumers

Retailers
Managers
Wholesalers Government Officers
Educators
Processors Researchers

Farmers

Farm Suppliers
 Classification of Agribusiness
Products
 Fresh agricultural products
 Semi-processed agribusiness
products
 Finished products
 Classification of Agribusiness
Products
 Fresh agricultural products – these are
products freshly or directly harvested
from the farms, which do not pass higher
level of transformation. Fresh agricultural
products are cleaned, sorted, and graded
according to standards or grades desired
by the markets.
Classification of Agribusiness Products
 Semi-processed agribusiness products – these
are products that underwent secondary or the
second level of transformation. These are in
forms which are for use by other industries and
processors but may not be consumed. The ff
are examples of semi-processed products:
* stripped abaca for handicraft production
* crude coconut oil for refining
* raw sugar
* natural rubber for tire production
 Classification of Agribusiness
Products
 Finished products – these are agribusiness
products that may be directly consumed
by the buyers. These are not usually
intended for further processing. Examples
are: dairy products like milk, cheese, and
yogurt; woodcarvings; tire; processed
meat; canned fish; and herbal soap
 Classification of Marketing
Activities
 Transactional activities
 Physical handling and distribution
of products
 Facilitating activities
 Classification of Marketing
Activities
 Transactional activities
– these are
exchange activities which lead to the
transfer of ownership or property
rights. Examples of these activities
are buying and selling, negotiation,
and risk-taking.
 Classification of Marketing
Activities
 Physical handling and distribution of
products – these refer to activities
which enable the different parties to
have physical possession of the
product. These activities are
concerned with the physical supply
of the product and include assembly
and storage, grading, processing, and
transportation
 Classification of Marketing
Activities
 Facilitating activities
– these are
activities which create faster and
more efficient performance of
transactional and physical handling
activities. These include market
intelligence and marketing
information dissemination, financing,
provision of marketing support
 Key Players in the
Agribusiness Marketing
System
The Agribusiness System
Input Subsystem

Support
Production Subsystem Subsystem
Coordination Government
Financing Private
AgenciesInstitutions
Processing Subsystem Manpower Industry Associations
Technology Financing Institutions
Information Education/ Research
Infrastructure Institutions
Marketing Subsystem Policies/Programs

Consumers
 Key Players in the Agribusiness
Marketing System
 Input sector – this is the start of the
agribusiness marketing chain.
Participants include manufacturers,
dealers, brokers, and other types of
intermediaries involved in the
production and distribution of farm
and agro-processing inputs.
 Key Players in the Agribusiness
Marketing System
 Farm sector – contains the primary (crop) and
secondary (livestock) factories of agriculture,
which produce raw materials for consumption
and for further processing. Marketing
participants are the farmers and several layers
of middlemen generally termed as wholesalers,
retailers, local buyers, assemblers, dealers, or
brokers, who are mainly involved in the
trading of products in their fresh or raw forms.
 Key Players in the Agribusiness
Marketing System
 Processing sector– regardless of the
scale of processing activities,
processed products are usually
marketed through intermediaries.
These intermediaries mainly handle
semi-processed or finished agro-
based products.
 Key Players in the Agribusiness
Marketing System
 Agroservices – these are entities
which function mainly as a provider
of services to facilitate performance
of production and marketing
functions. Some of the agroservices
provided are in the areas of technical
assistance, financing, warehousing,
market information dissemination,
and breeding services.
 Key Players in the Agribusiness
Marketing System
 Marketing sector – forms the links between the
other sectors mentioned. This sector is playing
a different role in the physical movement of
products from one sector to another. To
illustrate, the middlemen, who are the major
sectoral players, are involved in bringing
fertilizers to the farmers, farm produce to the
processors, and processed products to the
business and consumer markets.
 Classification of Middlemen
 Assemblers – these are usually rural traders or
barrio buyers who do accumulation of produce
of individual farmers and bulk these for
storage or for distribution to wholesalers.

 Wholesalers – they usually handle products in

bulk or in big volumes and sell to retailers, to
processors, or to other wholesalers. They do
not deal with end-users of the product.
 Classification of Middlemen
 Retailers – intermediaries who deal directly
with the end-users or the big consumers. They
are the wholesalers’ partners in distribution
activities.

 Agents and brokers – these are the types of

middlemen who do business of negotiating in
behalf of the producers and buyers. They
function mainly as intermediaries who bring
the two parties together.
 Marketing Functions
 Negotiation
 Assembly
 Grading
 Storage
 Processing
 Packing/packaging
 Financing
 Risk-taking or risk-bearing
 Market intelligence/market research
 Marketing Functions
 Negotiation – this is a function which
facilitates transfer of ownership. The
negotiation function starts with finding the
buyers and bringing the sellers and buyers
together to make arrangements.
 Assembly – being done by an intermediary to
accumulate the produce of many small farmers
or producers to attain desired volume.
 Marketing Functions
 Grading – because of the variability in
agricultural outputs, grading must be done to
facilitate buying, selling, transportation,
storage, and pricing of the produce. Grading is
done to standardize measurements, which
could be in terms of size, weight, and overall
quality.
 Storage – done primarily to make goods
available when it is needed either for
processing or for consumption
 Marketing Functions
 Processing – though oftentimes not considered
a marketing activity, it is largely a marketing
function. This is because agribusiness products
must pass through some levels of
transformation before being made available to
the users. Processing increases marketability
of products by changing product forms.
Examples are meat manufacturing, oil
extraction, fiber stripping and milling.
 Marketing Functions
 Packing/packaging – packaging is defined as
the total product presentation. Agribusiness
products , whether in fresh, semi-processed or
processed forms, must be packed in acceptable
and recommended packaging materials.
Packaging serves to protect the product,
prolong shelf life, increase product storability,
facilitate product handling, and improve
overall presentation to make products
appealing to buyers
 Marketing Functions
Financing
Marketing entails a lot of costs. In the Philippine
setting where some farm road networks are not
fully developed, transportation cost is higher.
This is even made higher by the fact that
agribusiness products require more careful
handling because of their bulk and
perishability. Financing is therefore important
to handle all market-related costs and
problems.
 Marketing Functions
 Risk-taking or risk-bearing – associated
with any type of business activity is the
loss incurred from operations. This could
be in the form of physical damages due to
natural causes or this could be in the form
of loss associated with the changes in
costs of raw materials and prices of
products handled.
 Marketing Functions
 Market intelligence/market research – this is
being done to assure that there is a product-
market fit, that is, the produce must match
with what the end-users want.

 Promotion – a continuous function of

marketing. The objective of promoting goods
and services is to inform prospective buyers of
product availability and also to increase sales.
Issues in Agribusiness Marketing
in the Philippines
 Inefficiency – defined as the failure
of the source or the producer to bring
the produce to the market at the time
it is needed and at the lowest possible
cost.

 Dependence on Middlemen
Reasons for farmers’ dependence
on the middlemen
 Smallness of farmers’ scale of
operations
 Producers’ lack of market awareness
 Increasing importance of
middlemen’s participation in the
production and harvesting processes
 Specific Issues in Agribusiness
Marketing
 Farmers’ Level

1. Low prices of agricultural produce/price

squeeze
2. Perceived lack of buyers or markets

3. Poor access to major markets due to lack

of market infrastructure
4. Lack of relevant market information
 Specific Issues in Agribusiness
Marketing
 Traders’ Level
1. Irregularity of volume of available products
and inability of farmers to meet demands.
2. Lack of market infrastructure, which results in
increased marketing cost and delayed
distribution.
3. Competition due to relatively many traders
handling the same products.
 Specific Issues in Agribusiness
Marketing
 Consumers’ Level

1. High prices of agricultural produce.

2. Variability in quality of agricultural
products in the market.
 Marketing Considerations and
Strategies
 For fresh farm products
Product Strategies
Product Strategies are changes made to physical
products to make them more attractive and
saleable to consumers. This is usually termed
as value adding for farm products.
To be assured of quality products, a producer or
a farmer adopts grading, packaging, and
careful handling in transporting the produce.
 Marketing Considerations and
Strategies
 For fresh farm products
Pricing Strategies
Price is defined as the value of a product
expressed in monetary terms.
Setting prices for fresh agricultural products is
relatively difficult because of the perfectly
competitive nature of the market
Everybody tends to adopt the going-on pricing
strategy
 Marketing Considerations and
Strategies
 For fresh farm products

Distribution Strategies
Producers or farmers can improve
distribution by production
scheduling. Producers could time
their production to help even out
shortages in supply during lean
months
 Marketing Considerations and
Strategies
 For fresh farm products

Promotion Strategies
Given the very little differentiation among farm
products, these are rarely promoted. Promotion
usually entails cost, an added burden which the
farmers are not willing to shoulder. Only the
big companies, which have the resources and
branded products to sell, have the capability to
advertise.
 Marketing Considerations and
Strategies
 For semi-processed and Processed Products
Product Strategies
In addition to producing high-quality products
that are well-packaged, product innovation is
also needed to make products saleable and
open to new markets. In all cases, innovation
is very important to create new products for
the market.
Processed products must be branded and labeled
 Marketing Considerations and
Strategies
 Pricing Strategies
Three factors must be considered in price
determination : demand, cost, and competition

Cost-oriented pricing strategies are usually

adopted by processing enterprises. Mark-up
pricing is the most commonly used cost-
oriented pricing method. Price is computed by
adding all costs and adding a certain mark-up.
 Marketing Considerations and
Strategies
 Distribution Strategies
The target market is the most important determinant
in the design of distribution strategies of the
processing companies. For exported products,
processors either export directly or sell to indirect
and direct exporters.
Locally distributed products have two groups of
target markets: institutional or organizational
markets and consumer markets
 Marketing Considerations and
Strategies
Institutional or organizational buyers
usually buy directly from the
processors.

Products for the consumer markets go

to retail stores like supermarkets,
grocer shops, and convenience stores.
 Marketing Considerations and
Strategies
 Promotion Strategies

 DTI conducts annual exhibit and trade fairs for

food and non-food products.
 Membership in export association and
processors association
 Processors also use advertisement through
print media, television, and point of purchase
displays.
 Glossary of Terms
 Benefits – advantages that meet the explicit
needs and wants of the customers
 Brand – a proprietary name, letter, number,
or group of words, letters, or numbers
intended to differentiate one seller from
another
 Distribution channels – any series o firms
or individuals who participate in the flow
of goods and services from manufacturer to
final consumer or business user
 Glossary of Terms
 Features – product attributes offered by a
company
 Market – a group of actual and potential
buyers with similar needs and wants
interacting with sellers offering various
products or services to satisfy needs and wants
 Market development – a company’s growth
strategy that identifies and develops new
market segments for existing company
products
 Glossary of Terms
 Market penetration – a company’s growth
strategy that improves sales of existing
products in existing market segments
 Market potential – what a whole market
segment might buy under ideal conditions
 Market segment – a fairly homogeneous
group of customers who will respond to
marketing mix in a similar way
 Glossary of Terms
 Market segmentation – the process of dividing the
total market into several groups seeking similar
benefits from a product or service and requiring
separate marketing mixes
 Market shares – the proportion of a company’s
total sales of a product during a defined duration
in a specific market or geographical area
 Marketing – the process of continuously and
profitably satisfying the target customer’s needs,
wants and expectations superior to competition
 Glossary of Terms
 Marketing mix – the set of controllable and
inter-related variables composed of product,
place, price, and promotions that the company
assembles to satisfy a target group better than its
competitors
 Marketing strategy – specifies a target market
and a related marketing mix
 Needs – the state of felt deprivation of some
basic satisfaction
 Packaging – all the activities of designing and
producing the container for a product
 Glossary of Terms
 Place – making products available in the right
quantities and locations – when customers
want them
 Place utility – having the product available
where the customer wants it
 Positioning – communicating the overall
positive impression of a brand, relative to
competition
 Price - the value of a product expressed in
monetary terms; the only element of the
marketing mix that produces revenue
 Glossary of Terms
 Product – the tangible offering of a firm that
satisfies customer’s needs and wants
 Product development – a company’s growth
strategy that identifies and develops new
products to sell to existing markets
 Promotion – communicating information
between seller and potential buyer to influence
attitudes and purchase intentions.
 Prospecting – following down all the sales
leads in the target market to identifying
potential customers
 Glossary of Terms
 Psychographics – the analysis of a person’s
lifestyle
 Quality – the ability of a product to satisfy a
customer’s needs and wants
 Retailing – all of the activities involved in the
sale of products or services directly to final
consumers
 Sales potential – the portion of market potential
where a specific company’s brand of a product
could expect to sell under ideal conditions
 Glossary of Terms
 Services – activities or benefits that are offered
for sale. They are essentially intangible and do
not result in the ownership of anything
 Substitutes – products that offer the buyer a
choice
 Target market – a fairly homogeneous group of
people or organizations to whom a company
wishes to appeal
 Wants - specific satisfiers of needs
 Wholesaling – refer to activities that sell to those
who buy for resale or business purpose
 References
The following materials were adopted and referred to in
this marketing reviewer.
Go, Josiah (2007), Fundamentals of Marketing in the
Philippine Setting, Josiah Go Foundation
Mojica, Loida E. (2003), The Agribusiness Marketing
Subsystem
Mojica, Loida E. Introduction to Marketing
Management Lecture Notes
Piadozo, Ma. Eden S. (1987), Syllabus on Agricultural
Marketing