BMK 201 Lecture Notes - Lecture 27: Opportunity Cost, Marketing Mix, Agribusiness
6 Jan 2021
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Document Summary
The process by which food and agribusiness firms develop and implement programs that assist them in satisfying consumer needs and facilitate making a profit. Key marketing principles are: find wants and fill them: a firm"s profit in a function of consumer satisfaction. Market-oriented firms try to answer what do consumers want?" rather than what can we make?": segment and target: consumer preferences vary and are subject to budget constraints. So, groups of consumers can be divided into market segments, each sharing similar needs and desires. Resources necessary to perform the marketing functions (costs) Form, place, time and possession utilities (benefits) Can be achieved by reducing the costs. Efficient marketing is the maximisation of this benefit/cost ratio. Food and agribusiness marketing can be considered as an input-output system. Can be achieved by increasing the benefits. Enhanced operational efficiency same resources can produce more output. Enhanced pricing efficiency reflects amount of utility consumers get for a price, or the bang-for-the-buck.
