chapter 5 Flashcards
Production planning definition
Production plan is a blue print which seeks the answer of following questions:
* 1) what to produce 2) how much to produce 3) to whom it is to be produced 4) how to
produce 5) where to produce 6) when to produce.
These management decision are important to agricultural products as well as industrial
products.
Steps of Production Planning
- Farm planning: land topography, amount of land, fertility balance, etc.
- Members planning: Types of household, members to be Involved
- Labour Planning: How many family labour, hired labour to be involved
- Input Planning: Types of inputs, tools and equipment use, etc.
- Product planning: Variety to produce, crop type management, time of
planting, intercultural operation and harvesting, etc. - Delivery planning: Post harvest operations, processing or manufacturing,
contacting agents, price determination, price taking etc.
Marketing mix definition
- The mix is the right combination of marketing activities to ensure customer
satisfaction. - The marketing mix comprises the product, price, place (distribution) and
promotion decisions and is often called the 4 P’s.
define Marketing strategy:
A strategy is a systematic plan of action that integrates the organization’s goals, policies and
action sequences in to a whole.
* It is the complete plan designed specifically for attaining the marketing objective /planning of
the firm/farm.
The formulation of marketing strategies is important in agribusiness which can be done through:
i) selecting the target market and ii) assembling the market mix.
Ansoff growth matrix i
is a marketing planning tool which helps a firm to determine its
product and market growth strategy.
* Ansoff product/market growth matrix shows that growth of a particular firm depend on
whether it markets its new, innovative or existing products in new or existing markets
Market penetration
Concentrating on existing products to existing market.
* It means the firm aims to increase sales within its present market place
The strategies for market penetration
Attract the customers who have not yet become regular users, but are occasional users.
- Altering one or more of the elements of marketing mix such as price or promotion techniques
- To increase the consumption amongst the existing users. For ex: N-cell or NTC
Market development (extension)
Finding or developing new markets for existing products
The strategies include
Identify the users in different markets with similar needs to existing customers.
- Identify the new customers who would use a product in a different way.
- Explore for the export possibilities or new territories not covered yet.
Product development
Developing new products for the existing market
* The firm will attempt to increase the profitability and growth by introducing new
products in the existing market.
The strategies include
To produce and market new products which are closely associated with the products
or brands which the customers already consume.
- To examine the purchasing habits of customers and then expanding the product range
to match these habits.
Diversification
Developing the new products and new markets
* This is done by the firm if the firm expects the new opportunity and has investment
funds available or alternatively the firm may be forced into this types of action
because of the pressures in the existing markets or on the existing product range.
* This option comes with the greatest level of risk as it is not based on the existing
knowledge within the firm.
Marketing Planning:
To avoid failure and matching production plan, marketing planning is
important.
* Market planning not only includes input marketing but also includes output
marketing.
* It provides the framework for all business decisions of the enterprises.
Objectives of the market planning
It acts as a roadmap
* Assist in management control and monitoring the implementation of marketing
strategy
* Informs new participants in the plan of their role and function
* To obtain resources for implementation
* To stimulate thinking and make better use of resources
* Assignment of responsibilities, tasks and timing
Strategic Marketing Planning (SMP) Framework/tools
To cover marketing strategies taken for the particular commodity, strategic
marketing planning framework is priority structure which facilitates proper
planning.
