Assessing Market Opportunities
Marketing refers to the set of
activities done to identify, predict,
and meet customers’ needs.
Market refers to a means of
exchange of goods and services
between two parties - a buyer and a
seller.
3 clasification of market according
to the extent of area covered:
local market, the focus of products is based
on the needs of the locality. Perishables are
often the primary products, with uniform
pricing all over the said market. e.g.
Traditional, physical markets in the
Philippines such as Divisoria, Quiapo, and
Dangwa flower market can be categorized to
serve this market classification.
national market, the country’s whole area is
covered. Products normally range from durable
and non-durable consumer goods to industrial
goods such as metal and wood. e.g. Large and
small groceries under one company spread
across the country serve this market
classification.
international market, the area covered for the movement
of products is the whole world. Technological advancements
in transport, storage, and packaging allowed both durable
goods and perishable goods to be sold throughout the world.
e.g. Some sellers in e-commerce applications serve this
market classification. Philippine mango producers who
export their products also service this market classification.
Buyer is a person who purchase or intends to
purchase something.
Trader is a person who buys and sells goods,
either for himself or as a representative for a
company/organization. e.g. institutional
traders, retail traders
Institutional buyers refer to companies
or organizations that purchase very large
quantities of product.
e.g. schools, hospitals
Wholesaler buys products from
manufacturers and sells them to retailers.
e.g. agricultural supplies companies
A consumer can be an individual or
a group who is the end-user or target
demographic of a product or service.
A local market usually hosts products
that target the surrounding community
where the market is located.
e.g. a grocery store in Taguig
A retailer can be in-store, whose revenue
comes mainly from people who visit the store
to buy products, or nonstore, whose revenue
comes from vending, direct selling, home
shopping networks, and internet retailing.
e.g. JJ supermarket, MM Sari-Sari Store
Types of Buyers
Spendthriftsare buyers who like spending
money. They are the easiest customers
because they do not need a lot of
convincing to make a purchase and do not
experience buyer’s remorse as well.
Tightwads are buyers who love to save
money and avoid spending as much as they
can. You can appeal to them using data
instead of using emotions and emphasize
what they will save by purchasing the
product.
Average spenders are where the majority
of buyers can be classified. You can
persuade them to make a purchase as long
as you persuade them that the purchase is
appropriate
Product
Product is any good or service offered in
market to satisfy a person’s needs or wants.
Product classification according to
Durability and Tangibility
NON – DURABLE GOODS
-are low priced ,tangible goods that are
used and purchased frequently . These
products also expire more quickly .
E.g. field crops, seafood,meat
DURABLE GOODS
-are tangible goods that are not quickly
replaced and require a larger investment
than non durable [Link] products can
be rented or bought.
-e.g. metal roof,plow
SERVICES
-are intangible products in the form of
processes rather than physical products.
-e.g. produce shipping, crop inventory ,
equipment repair
A core product is a product that satisfies
the customer’s principal need or want. As
an example, we will use Company X. The
basic benefit of its product, rice, is to
satisfy the customer’s hunger.
A generic product is a version of the
product with the minimum requirements
for that product to do its task. In our
example, Company X’s generic product is
an edible, starchy cereal grain.
An expected product is a version of the
product with the set of features the
customer expects when they purchase the
product. In our Company X example, the
expected product is rice in vacuum
packaging. If this packaging was not met,
the customer might think the product’s
quality was compromised, and thus below
the customer’s expectations.
An augmented product is a product with
added features or services that differentiate
it from competitors. In our Company X
example, an augmented product would be
the different varieties of rice that they offer.
That way, customers can choose the rice
they prefer in terms of sheen, starch
content, and other factors affecting the
preference in rice variety
A potential product includes future
enhancements to keep customers loyal to
the product. In our Company X example, a
potential product would be a 10% discount
on the next purchase of Company X rice.
The Supply Chain
A supply chain is a system composed of a
sequence of activities from the sourcing of
raw materials to the final delivery of a
product or service to consumers.
Components of the Supply Chain for Agro-
enterprises
Sample Supply Chain for
Agricultural Activities
Value Creation and Addition
Value creation is the process of turning labor and
resources into something that meets the needs of others.
Adding value to agricultural products allows agro-
enterprises to generate income more than from just selling
the raw products to food processors. Value-added
agriculture is driven by customers’ changing tastes and
preferences, so when you plan to supply value-adding
activities for your enterprise, you should consider which
activities the customer demands.
Value-Adding Activities
Cleaning
Presenting clean products to customers might gain
you extra approval from them and secure you
these customers’ next orders. In the example of
tomato production, cleaning tomatoes after harvest
is not a common practice, but it is always a
recommended step for tomato producers without
water shortage.
Sorting and Grading
Sorting is the segregation of rotten or diseased
produce from healthy and fresh ones, while
grading refers to the segregation of produce based
on color, size, stage of maturity, or degree of
ripening.
Packaging
Proper packaging, which includes labelling, helps
ensure that you deliver customers a consistent
quality and quantity of products and therefore
retain their patronage.
Storage
Storage aids in the continuity of product
supply regardless of season, as well as in
extension of the processing season.
Processing
Processingis the use of facilities and/or
equipment to turn the crop into a more
durable form as well as add value.
Tomatoes can be processed into sauces or
jam.
Transporting
Transporting products allows you to reach buyers
that wouldn’t normally purchase from you because
of transporting issues. The transportation should
be kept clean, same with all produce.
Product Consolidation
Product consolidation means reducing the overall
number of products depending on the customer’s
demands. Doing this helps focus your production
costs into products that sell more or produce
higher yield and therefore gain you higher income.
Value Creation and Addition
