KOHLS

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KOHLS UHL - CHAPTER TWO

• ANALYZING AGR FOOD MARKETS

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REVIEW
KOHLS UHL CHAPTER ONEINTRODUCTION TO FOOD
MARKETING

• A . Marketing Is
• B. Marketing Is
• C. Marketing Is
• D. Marketing Is
• E. Marketing Is
• F. Marketing Is

A System
Large And Complex
A Variable
Productive
A Process
Evolving
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COURSE CONCEPTS

• Wk 1 Kohls Chap 1 Intro To Food Marketing
• Wk 2 Kohls Chap 2 Analyzing Food Market
• Kohls Chap 3 Ag Prod Marketing
• Wk 3 Kohls Chap 4 Food Consumption
• Kohls Chap 5 Food Processing
• Wk 4 Kohls Chap 6 Food Marketing
• Kohls Chap 7 International Marketing
• Wk 5 Kohls Chap 8 Price Analysis
• Kohls Chap 9 Market Competition
• Friday Midterm

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KOHLS UHL - CHAPTER TWO ANALYZING AGR FOOD
MARKETS
LEARNING OBJECTIVES AFTER THIS LESSON, THE
STUDENT SHOULD BE ABLE TO

• 1. Distinguish Between The Various Marketing
  Activities Using The Functional Approach
• 2. Discuss Elements In The Behavioral Approach
• 3. Distinguish Between The Various Middle Persons
  In The Institutional Approach
• 4. Discuss The Various Ways Of Measuring Market
  Performance.

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KOHLS UHL - CHAPTER TWO ANALYZING AGR FOOD
MARKETS

• Discussion Points
• I. Basic Questions
• II. Marketing Activities (What They Do)-
• A. Functional Approach.
• B. Behavioral Approach
• C. Institutional Approach
• D. Commodity Approach
• III. Market Performance
• (How Well They Do It )
• IV. Food Marketing Issues

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ANALYZING FOOD MARKETING SYSTEM
KOHLS UHL - CHAPTER TWO ANALYZING AGR FOOD
MARKETS
Basic Questions

• 1. Who Does What

And 2. How Well Do They Do It
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Analyzing the FoodMarketing System

• Need A Set Of Procedures
• Organizational Tools
• Alternative Perspectives
• Alternative Approaches
• Functional Approach
• Institutional Approach
• Behavioral Systems Approach
• Structure/Conduct/Performance (S-C-P) Approach
• Marketing Management Approach

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I. MARKETING ACTIVITIES A. FUNCTIONAL APPROACH
WHAT
Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
2-1

• 1. Exchange Function Title Transfer
• A. Buying Resources
• 1. Seeking Sources
• 2. Assembling
• 3. Purchasing Activities

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b. SELLING VS MARKETING ( 4 P'S)
Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1
Selling Convincing The Customer To Take What
We Have
Marketing Giving The Customer What They
Want

• 1. The Right Product
• 2. At The Right Place

3. At A Reasonable Price 4. With The Right
Promotion
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Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1

• 2. PHYSICAL FUNCTIONS

A. Processing Form Utility
B. Transportation Place Utility 1. Method
Routes 2. Crating Loading
C. Storage Time Utility 1. Raw Materials
2. Finished Goods
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3. FACILITATING FUNCTIONS "GREASE"
Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1

• A. Standardization
• 1. Putting "Likes" Together
• (A). QUANTITY (B). Quality

2. Facilitates (A). Sale By Description
(B). Pricing (C). Concentration
(D). Inspection
B. Financing 1. Cash Flow Smoothing 2.
Carrying Inventory
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4. RISK BEARING
Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1

• A. Physical Risk
• 1. Deterioration
• 2. Destruction

B. Market Risk 1. Change In Consumer Taste
2. Government Programs" 3. Laws Illegal To
Sell 4. Price Decreases
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Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1
5. MARKET NEWS

• A. Collecting Data
• B. Interpreting Data
• C. Disseminating Information

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Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
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6. CHARACTERISTICS QUESTIONS

• A. The Functions...
• 1. Affect Food Cost
• 2. Affect Food Value
• B. You Can...
• Eliminate The Middleman
• But Not
• Their Marketing Functions

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c. FUNCTIONS CAN BE
Learning Objective
Distinguish Between Various Marketing Activities
Using Functional Approach
1

• 1. Preformed By Anyone
• 2. Anywhere In Food System

Farmer
Assembler
Processor
Wholesaler
Retailer
Consumer
D. Appropriate No. Of Functions? E. Preformed
Efficiently ?
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B. BEHAVIOR APPROACH HOW
2-2
Learning Objective
Discuss The Behavioral Approach

• 1. Efficiency Output/Input Ratios
• 2. Power Concentration
• 3. Communication
• 4. Adapting To Change

5. Uses Of Behavioral Systems Approach A.
Contractual Relationships. B.
Consolidations Mergers
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C. INSTITUTIONAL APPROACH WHO
Learning Objective
Distinguish Between Various Middle Persons In
The Institutional Approach
3

• 1. Merchant Middlepersons
• A. Takes Title
• B. Wholesalers
• C. Retailers
• 1.Sell To Final
• Consumer

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Learning Objective
Distinguish between various middle persons in
the institutional approach
3
2. Agent Middlepersons A. Do Not Take Title
B. Sell Services Or Knowledge C. Commission
Agents 1. Physical Control D. Broker
Agent
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Learning Objective
Distinguish Between Middle Persons In The
Institutional Approach
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3. Speculative Middlepersons

• 4. Food Processors
• 5. Facilitative Organizations
• A. Market Exchanges
• B. Government
• --- Keep Game Fair

C. Trade Organizations
--- Info Dissemination
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Learning Objective
Distinguish between various middle persons in
the institutional approach
3
Uses Of Institutional Approach 1. Advantages Of
Specialization. 2. Understanding Economies Of
Scale. 3. What Is Nature Of Competition? 4. Who
Are Existing Or Potential Competitors?
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D. COMMODITY APPROACH
Learning Objective
Distinguish between various middle persons in
the institutional approach
3

• 1. Grain Marketing

2. Fruit Vegetable Marketing
3. Milk Marketing
4. Livestock Marketing
5. Cotton, Peanut, Tobbacco
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II. MKT PERFORMANCE HOW WELL
Learning Objective
Discuss various ways of measuring market
performance.
4

• A. Individual Basis
• 1. Consumer Concerns
• A. High Price Levels
• B. Marketing Practices

2. Farmer Concern A. Low Price Levels B.
Excessive Mkting Costs C. Reduced No Of Buyers
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B. INDUSTRY BASIS
Learning Objective
Discuss various ways of measuring market
performance.
4

• 1. Market Structure
• A. No Size Of Firms
• B. Degree Of Prod Difference
• C. Barriers To Entry

2. Market Conduct A. Pricing Strategies B.
Promotion Strategies
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Learning Objective
Discuss various ways of measuring market
performance.
4

• 3. MARKET EFFICIENCY

A. Operating Efficiency 1. Justification
For Change 2. Decrease Marketing Cost
Without Dec Market Utility 3. Increase
Market Utility With -Out Increase Market Cost
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b. PRICING EFFICIENCY
Learning Objective
Discuss various ways of measuring market
performance.
4

• 1. Tells Consumer Preferences
• 2. Sends Resources To High Value Use
• 3. Coordinates Mkt Activities
• 4. Environmental Concerns

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III. FOOD MARKETING ISSUES
Learning Objective
Discuss various ways of measuring market
performance.
4
A. Organizational Operational
--Market Concentration
(Mkt Share Of Largest Firms)

• B. Cordination Control
• C. Farmer Marketing
• D. Consumer Issues

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SUMMARY
KOHLS UHL - CHAPTER TWO ANALYZING AGR FOOD
MARKETS

• Food Marketing Can Be Analyzed By

1. What Jobs Have To Be Done
2. Who Does The Jobs
3. How Well The Jobs Get Done
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V. QUESTIONS FOR DISCUSSION
KOHLS UHL - CHAPTER TWO ANALYZING AGR FOOD
MARKETS

• A. How Do Producers Consumers Decide Which
  Marketing Functions To Perform For Themselves?
• B. What Is The Reason For The Large Number Of
  Middleperson In Our Society?
• C. Consumers Are Sovereign - What Does It Mean?
  Are They?

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VI. SELF TEST CHAP 2 FOOD AG MKTS

• __ 1. Place Utility
• __ 2. Functional Approach
• __ 3. Selling
• __ 4. Cant Be Eliminated
• __ 5. Efficiency Power
• __ 6. Who Does What
• __ 7 Oper Price Efficiency
• __ 8. Exchange Function
• __ 9. Put Likes Together
• __10. Time Utility

• A. Behavioral Approach
• B. Convincing Customer
• C. Institutional Approach
• D. Marketing Functions
• E. Market Performance
• F. Standardization
• G. Title Transfer
• H. Transportation
• I. What Activities
• J. None Of The Above

H
I
B
D
A
C
E
G
F
J
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NEXT TOPIC

• AGRICULTURAL PRODUCTION
• AND MARKETING