The Concept Of Agricultural Marketing

The Concept Of Agricultural Marketing.

Poor business organization of agricultural producers, the disorganization does not allow them to be the main economic agents in the agricultural business and to face each other with other agents to negotiate on a large scale.

The devaluation of agricultural activity, it is necessary for the producer to revalue the rural area, giving it the corresponding power and of which its men are capable and so they believe, to achieve full participation in making their decisions, which internalize The need, to be honest, and responsible when assuming a loan, signing a contract or closing a deal, that they can accept that they can produce what the market requires and at a lower cost, that each agricultural producer constitutes an important man in the economy of our country and that more income can be generated in an environment of ecological balance.

It does not lead prices in the market, most farmers do not know or do not keep a record of their income and expenses, which makes it impossible to know the real cost of their products and determine profitability, so they become “price followers”, In other words, it measures this from the point of view of the previous price.

Ignorance of the Agents involved in the Productive Chains, it is not possible to do good business if we do not know who our clients will be, even worse if I do not know how to reach them, and what product they require and when they require it.

Various phytosanitary problems (pests and diseases ) and indiscriminate use of pesticides arise as a consequence of the lack of joint orientation and attention, increasing costs, and decreasing the quality of the product as well as its acceptability.

The Concept Of Agricultural Marketing.

Commercial informality, disorganized production without the orientation to safe markets, and little diffusion of quality standards or of the products we offer with the sole purpose of avoiding taxes, we forget that the central idea of the business is to earn higher profits and increase profitability, informality does not allow large-scale sales, that is, to project large national and international businesses.

Low industrialization, the industrialization of a part of the production would allow a smaller and better supply, as well as generate an added value to our production and avoid the fall in prices.

Traditionally, agricultural commercialization or commercialization of agricultural products is understood as “the process that takes agricultural products from the farm to the consumer” (Caldentey 1992). This definition, which we use in a text from 1972, is not my own but is based on other similar definitions used, in previous years, by authors from the United States, which is the country with the most abundant texts and studies on this subject.

Concerning the previous definition, we want to make some considerations. The first is that when talking about the commercialization of agricultural products, we cannot limit ourselves to analyzing only the problems related to the first phase of the process, that is, to action by farmers, but we must take into account the entire process until reaching to the last phase of the same, since all these phases are related, existing a mutual influence between them.

The Food Industry.

The first phase of evolution consists of a certain development of the transformation phase. The phenomenon, which began in the United States at the end of the last century, consists in that small family and artisan establishments that complement the role of farmers are replaced by large establishments that handle large quantities of product and therefore benefit economies of scale, producing at ever lower costs.

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Learn About The Benefits Offered By The “Harvest And Sell Fixed”

Learn About The Benefits Offered By The "Harvest And Sell Fixed

One of the main problems that agricultural producers in the country face daily is the marketing of their products. Well, not all of them are connected to the markets and marketing faces a long chain of intermediaries, which hurts not only the farmer but also the final consumers.

In this way, the initiative seeks to guarantee that farmers ensure the advance sale of their crops before planting, and can sell their products with quality and at a good price.

As the President of the Republic, Iván Duque, pointed out at the time, “contract farming is the way to protect small producers and guide them towards productive integration with other businessmen in the field since they need a link with a buyer, a fair price established so that they do not fall into the clutches of intermediaries who oppress them and who pay them below production costs ”.

For his part, Minister Andrés Valencia said that contract farming is an agreement between large buyers, such as agro-industries and chain stores, and agricultural producers, for the cultivation, harvesting, and supply of agricultural products with future deliveries. with sales characteristics, and predetermined purchases from before starting the cultivation.

How To Market My Agricultural Product

Web Page

To begin, the best tool is to publish a web page with the complete content of your company. Make sure it includes: who they are, products or services, points of sale, contact information, photo gallery, and up-to-date blog posts with multimedia content (photos, videos, audios).

Email Marketing

It is highly recommended to determine a mechanism for capturing those customers once they reach your page. So you’ll get their basic or contact information and include them in your list of potential customers. a number of the knowledge which will apply to your page includes emails from visitors, which can be wont to make shipments of newsletters ( newsletters ) periodically.

Social Media

Social networks became the simplest promotional tool for companies as they require little or no investment. to start with, it’s advisable to open accounts on platforms like Facebook, YouTube, and Instagram. Through these accounts, you’ll be ready to publicize your products, services, and business efforts. Social networks are excellent means of building communication ties with potential consumers and thus must be used professionally and always getting to every detail which will favor or harm your company.

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Relationship Between The Type Of Producer And The Marketing Strategies Applied

Relationship Between The Type Of Producer And The Marketing Strategies Applied

It is important to have classified the type of producers since we have a parameter to be able to measure the impact that we can have within the market with our strategies. A producer classified as advanced when carrying out the three activities of production, product transformation, and commercialization, will have greater control (over all aspects of their product in costs, raw material supply, processes, distribution, and commercialization), than a basic producer that you are only in a link with a single activity and more exposed to the entry of new competitors.

It is important to note that there are countless marketing strategies to be applied to the agricultural sector, but it is important to do so according to the type of producer, for them to work and be useful in supporting better marketing. There are strategies that in principle can be seen as totally alien and may even seem more attached to the operation or administration, but deep down they are directly related and their application will have a favorable impact on generating higher sales and increased profits. 

Do You Know How To Make Effective Email Marketing Campaigns?

One of the most common mistakes in the use of email marketing in agriculture is that they only dedicate themselves to sending sales emails.

Make a mix, combine sales-oriented emails with a content format that brings you closer and generates interest to the potential customer.

 Up-Selling and Cross-Selling Strategy for Agricultural Ecommerce 

If you have agricultural e-commerce, these strategic techniques are for you.

One of the simplest ways to increase the sales of your agricultural SME is through the application of Up-Selling and Cross-Selling.

What Is Up-selling ?

Up-Selling is defined as a technique of marketing and sales is to offer the customer a similar product that they have bought or want to buy.

Sometimes upselling is about offering a higher value product or service than the one your potential customer wants to buy.

Relationship Between The Type Of Producer And The Marketing Strategies Applied

What Is Cross-selling ?

Cross-selling or cross-selling is to offer a potential customer or client complementary agricultural something to the product or service you want to buy or have bought.

It is simply based on a database of agricultural customers who are offered days, weeks, or months after their last purchase an offer/promotion that is usually related to their last purchase.

If you carry out the combination of these marketing and sales techniques with email marketing, you will likely be able to increase your turnover.

 Agricultural Storytelling Strategy

Telling stories that work, that’s why all love marks and other companies practice storytelling. It is key that you know this strategy.

What Is Agricultural Storytelling?

Agricultural storytelling is the term used in marketing to allude to the art of telling stories.

A technique used to try to sell by telling stories about the product, services, or the brand.

Empathizing and connecting emotionally with our target audience in a closer way, providing a touch of differentiation.

 Experiences Or Experiential Marketing Strategy

If we talk about differentiation,  experience marketing is a good way to stand out from your competitors.  

In the business world of agriculture, it is increasingly difficult to stand out from the competition.

But agricultural customers love emotions, live experiences.

What Is Experiential Marketing ?

Experiential marketing is based on the client and their experiences, on the contrary, traditional marketing is based on aspects of the product such as its quality, characteristics, and benefits.

The key issue of experience marketing is that the agricultural customer opts for a product or service because of the experience and experience that he obtains before the purchase and while consuming it. 

Humanize your brand and feel like a customer.

To sell through emotions and feelings !!!

 Sem Strategy For The Agricultural Sector

Digital advertising on Google is advertising that appears in the upper and lower results pages of the search when you make a specific search.

But the reality is that there are many problems since many agricultural companies begin to carry out their first Google Adwords campaigns without any type of strategy to watch their back.

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Types of Agro Digital Marketing Strategies

Types of Agro Digital Marketing Strategies

Marketing strategies are the grooves where to plant an action plan to achieve visibility and traffic on the internet.

In this complete guide, you can find answers, models, and types of online marketing strategies.

Identify them, know how to apply them, and update yourself on what is coming.

What Is An Agro Marketing Strategy Or Marketing Strategies?

Although it sounds repetitive, sometimes it is good to get away from the commercial circuit and analyze the definition and concept of what we do routinely.

Now, what is an agro marketing strategy or marketing strategies?

Marketing strategies, also known as marketing strategies, marketing strategies or business strategies, consist of a set of actions that are carried out to achieve certain objectives and goals related to agribusiness.

What Is An Agro Digital Marketing Strategy In The Agricultural Sector?

Due to the entire ecosystem that digital marketing encompasses (SEO, content marketing, analytics, etc.), it can be difficult to know where to start or to identify what is most important to our company.

For digital agro marketing to be effective, you need an agribusiness strategy on the web.

Digital agro marketing for the agricultural sector has become a priority for all those small, medium, and large companies that want to be competitive in a saturated and unfaithful market.

Without being alarmist, it is important to mature the idea that SMEs that do not have an agro-digital marketing strategy will find it difficult to be chosen by customers, even if their hand is raised.

Ah! The differentiation as a flag and the added value as a mast allow us to stand out among so many options.

Like almost everything, you have to start at home, by defining the agribusiness model and objectives.

Types of Agro Digital Marketing Strategies

How To Make An Agro Marketing Strategy Online For Agricultural Smes?

Before defining the marketing strategies we must go through and be clear about these points:

1. Definition of the Business Model

2. Marketing audit for SMEs

3. SWOT analysis in Digital Marketing

4. Define the target audience

5. What resources do you have?

6. Define the marketing objectives of your SME

7. Definition of the marketing strategy for SMEs

8. Measure the strategy and adopt measures

Market Conditions:

a) It is a market with few or many producers.

b) some clients want there to be more production

c) There are constant innovations that appear in the market.

It is very common to observe areas of the country where there is a high concentration of producers and that at a certain moment the level of prices and profit margins decrease, mainly affecting producers of the basic level that, by not giving an added value of transformation to their crops, are directly exposed to these ups and downs.

It is important to know the number of existing customers to determine if we can continue to grow, and even try to know the innovations that may exist to take advantage of them and strengthen our position against the competition.

Organization Of The Guild:

a) There are associations and invitations to all producers of the guild.

b) They join forces between producers to make consolidated purchases or sales and improve the forces against suppliers and clients of the sector.

c) The market has not developed and there are many opportunities to introduce innovations.

Relying a little more on the level of competition in the sector, we have to make a diagnosis of what type of competitors exist in the market, as well as think about the possibility of joining forces to achieve more solid growth and as a group that helps to obtain benefits. mutual for better consolidation.

All this we can know through the level of organization or formal organizations of producers that exist, remember that the greater the number of producers within a group, the greater the force to achieve the objectives of our strategies.

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Marketing Strategies In Agriculture

Marketing Strategies In Agriculture

The first months of the year are still valid for setting new purposes. For this reason, we will begin by proposing the topic of “Marketing Strategies in agriculture”, a very broad topic and with a lot of literature in which we can easily find definitions and concepts; however, it is not easy to find information on how to adapt this within the sector and it is much more difficult to adapt them to agriculture in Mexico, since in our country there is a great diversity of agricultural products, and in high-value sectors, we also find a very wide diversification of customs for each region, which, in some cases, are within very mature markets, and in others, although they have great growth potential, the development of the production chain is very incipient or of very low development.

Therefore, this article is an explanation and a small manual, like all those that we try to write from the beginning of our participation, so that it can be used regardless of the size of your business in the agricultural sector and regardless of the level of development in the market of the product you grow, to make the best decisions and, of course, can increase your profitability.

Definition

It is important to mention that a marketing or marketing strategy in the agricultural sector is not about going out to knock on doors to sell our product. A marketing strategy begins with an internal and external diagnosis of our activities, to gather valuable information and establish a series of alternatives to follow to achieve a goal, deciding to carry out the strategy that best suits us according to our possibilities and carrying it out through implementation tactics during the continuous operation and progress of our business.

The strategy must use a set of tactics to achieve our objective, these will be the tools that we have to execute our actions in pursuit of the objective.

Marketing Strategies In Agriculture

Internal And External Diagnosis

Before making any strategy decision, we must make an initial diagnosis of who we are and the resources we have, as well as the situations we face in each harvest cycle; For this reason, we must ask ourselves the following questions:

For Internal Diagnosis:

As in any improvement reflection, we must do an internal exploration to determine where we stand, making an inventory of our strengths, abilities, and resources, as well as our weaknesses and shortcomings, to correct and mitigate the latter.

Through what I observe in all of Mexico, I have divided the type of producers that exist into 3 different groups, to propose a different marketing strategy for each group, since what they need, possibly others have already surpassed and your needs are different.

I have classified the groups into “Basic”, “Intermediate” and “Advanced” to easily identify them and make your query easier to see which one you are in.

Market Focus

It is the vision that we must have as a result of our internal and external diagnosis, showing a list of our strengths and weaknesses within the market, as well as the characteristics of the products that customers are demanding every day.

There are a large number of market strategies, which must be applied according to the type of producer we are, however, I have concentrated them in 4 groups that apply to different types of producers described in the first part already mentioned:

Types Of Marketing Strategies For Agriculture:

a) Growth

b) Consolidation

c) Integration

d) Positioning

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Distribution Channels In Agriculture Marketing

Distribution Channels In Agriculture Marketing

There are three distribution channels: direct, short, and long. These three distribution channels can coexist in a single distribution strategy.

Direct Circuits

Direct channels refer to sales that are made directly from producer to consumer. This concerns different sectors of the economy from primary to tertiary: sale in a craftsman’s shop-workshop, sale at the farm, sale at markets, fairs and shows by producers, etc.

The main advantage of this direct circuit is that it eliminates all intermediaries and therefore ensures large margins for the producer, who is free to set his selling price. It also makes it possible to create a more personal relationship between producers and consumers, to make production methods known, to promote the know-how specific to the company. For the seller who is also the producer, this direct link with customers allows him in vivo to see what pleases customers, what they expect from the products, what are the obstacles to purchasing or, on the contrary, the triggers, etc.

Distribution Channels In Agriculture Marketing

There are also drawbacks to direct sales, the main one being the obligation to store their products at their place of work or in a room, which induces additional expenses linked to the real estate cost of storage and compulsory insurance.

Short Circuits

Short circuits are developing more and more. You have noticed that to escape the proliferation of intermediaries, small producers join forces in collectively managed points of sale. Whether it is AMAP, farmers’ markets, pop-up shops, or others, new short circuits are flourishing. They mingle with traditional short circuits such as restaurateurs, small shops, street vendors, etc. Here too, the idea is to limit the margins due to intermediaries.

The short circuit, therefore, has a unique intermediary between the producer and the consumer. It requires from the producer a storage capacity for its goods but also great reactivity for its deliveries to limit stock outs at points of sale.

In the context of sustainable development and local consumption, the short circuit is popular with consumers just like the direct circuit.

Long Circuits

Long circuits are those which involve more than one intermediary. Their major advantage is to free the producer from the costs associated with marketing and sales. It also makes it possible to reach customers who are otherwise inaccessible due to their geographic distance, their consumption habits, or other factors.

The disadvantages of long circuits are real. The question of the profit margin which returns to the producer is the problem mainly posed by this type of circuit. In the case of farmers, long circuits turn out to be catastrophic since the producer is not free to set the selling price to the end customer or even to the various intermediaries. Thus, many farmers, for lack of sufficient distribution channels, find themselves forced to sell at a loss when, at the same time, the major distribution brands and the food industry are earning significant margins.

Being in control of the distribution of its products and services is therefore essential for the vitality of a company.

Distribution Channels

There are different types of distribution channels: omnichannel, multi-channel, cross channel. Refer to our articles dedicated to distribution channels for more information.

Distribution Methods

Depending on the distribution strategy chosen by the company, distribution takes place on an intensive, exclusive, selective, or franchise basis. The distribution method must of course be consistent with the chosen distribution channel but also with the positioning of the product and the company to correspond to the commercial strategy.

Marketing Your Eggs In Short Circuits, What Rules Should Be Followed?

The marketing of laying hen eggs for direct sale to consumers, or local shops, can represent additional income and activity, or constitute a full-time professional activity. But there are a few rules to follow. We mainly detail here the rules relating to the marketing of eggs.

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