“If you don’t know

where you’re going,

you may end up
somewhere else.”
-Casey Stengel
 It basically answers the questions:
 Where am I?
 Where am I going?
 How will I get there?
Business Plan Outline /Components

• Generally, a business plan has the following seven

(7) major components:
• Executives Summary
• Business Description
• Marketing Plan
• Competitive Analysis
• Products/Service Plan
• Operations and Management Plans
• Financial Components
Marketing
marketing involves all activities designed to create interactions
that satisfy human or organisational needs or wants in a way
that brings profit to the organization in question.

Marketing involves identifying and satisfying customer needs.

 it is the process of planning and executing the conception ,

pricing, promotion and distribution of goods and services to
facilitate exchanges that satisfy individual and organizational
objectives.

4
 What is Marketing?
There is the need to point out that marketing is not just
about selling.
Selling is indeed part and parcel of marketing but just an
aspect of it.
 As Kotler puts it ‘selling is only the tip of the marketing
iceberg’.
Peter Ducker supports this idea by stating that the aim of
marketing is to identify and understand customers so well
that the product on offer fits them well and sells itself.

5
 Some Point to Note
Marketing starts even before a product is made.
The needs and wants must be identified before the
offering of any product.
Marketing is not just about selling, though it is part
and parcel of it.
Marketing even continues after the product has been
sold and used or consumed.

6
Uniqueness of Agricultural Marketing
• Usually, producers of agricultural goods are often
separated from the potential consumers of these goods.
• After the production of raw commodities, a set of activities
need to be carried out to bring the vast arrays of goods
together and be placed at the disposal of millions of
consumers.
• These complexity of activities involves the interactions of
persons, institutions (rules and regulations), infrastructure,
and products in the larger environment.
• It therefore involves set of institutional arrangements and a
proper coordinating mechanisms.
The Scope of Marketing
Marketers are skilled in stimulating demand for a
company’s products:
Marketers are involved in marketing the following:
Goods: Agricultural commodities and livestock,
fixatives, easel, pencils etc
Services: Soil analysis for clients airlines, hotels ,
consultancy etc
Experience: Canopy walk at Kakum National Park,
Climbing Mount Everest, Flying over mount
Kilimanjaro in Tanzania.
Events: Marketers promote time based events such
as Olympics ,Anniversaries, major trades
8
The Scope of Marketing Cont.
Persons: Celebrity marketing and personal PRO’s.
Places: Cities , regions, and tourist sites.
Properties: Real estate, business, Vehicles etc
Organizations: Spend money to Strong favorable
Images, Mindsets, Corporate identities.
Information: Schools and institutions distribute at a
price.
Ideas: Every marketing offering includes a basic idea

9
 Needs, Wants, and Demands

Need:
State of felt deprivation including physical, social,
and individual needs.
Wants:
Form that a human need takes, as shaped by
culture and individual personality.

Wants + Buying Power =

(Effective) Demand

10
Needs ,Wants and Demand Cont.
 The task of assessing or estimating and forecasting demand is crucial
for Marketers.

 Types of Demand:
 Effective demand
 Potential demand
 Declining demand
 Derive demand

11
 Need / Want Fulfillment
Needs and wants are fulfilled through a Marketer
• Some combination of products, services, information, or
experiences offered to a market to satisfy a need
or want.
• A marketer therefore seeks : a response, a purchase , a
vote a donation from another party.
• It two parties sell something to each other , then both of
them are marketers

14
What is a Market?
‘Market’ here refers to the environment where exchange of
transactions take place and not just the exchange of business
goods.
A set up where two or more parties engage in exchange of
goods, services and information is called a market

The two or more parties involved in a transaction are called

sellers and sellers.

Also present in a market are actual and potential buyers of a

product.

These people share a need or want that can be satisfied

through exchange relationships.
13
 Market Cont.

In brief, a market exist where the forces of demand (represented by

buyers) and supply (represented by sellers) operate to affect a price
and where the titles to goods and services may be exchanged and
transferred.

• It is therefore possible that a market be organized or integrated

around any means of telecommunication facility such as telephone,
fax, e-mail, letters etc. without the parties involved coming into
physical contact.
Types of Markets
Physical Markets- physical market where buyers and can
physically meet the sellers to exchange the desired goods and
services with money.
Virtual Markets- buyers purchase goods and services through
the internet or any source that do not involves the physical
presence of both parties.
Auction Markets-Sellers sell their goods to the highest bidder
Market for intermediate Goods-such markets sell raw
materials required for the final production of other goods.
Black Markets-setups for selling illegal goods such as drugs and
weapons.
Knowledge Market- a set for exchange of information and
knowledge based products.

15
Types of Markets Cont
Financial Market-Market for exchange of liquid assets and may
be classified as follows:
Stock markets- a market for exchange of shares/stocks
Bond Market- a market for exchange of debt securities, usually
in the form of bonds.
Foreign Exchange Market/Currency Markets-Parties are
involved in trading of currency.

predictive Markets- Set up where exchange of good or services

takes place for future. Eg forward contracts .
Markets can be in a form of mono poly- where there is a singe
seller and many buyers at the market place or Monopsony -
where there are many sellers and a single buyer.

16
Types of Markets Cont

• Consumer market
• Business Market
• Reseller Market
• Government Market
• Global Market
• International Market
• Local Market

17
Types of Agricultural Markets

Based on some considerations, agricultural markets

can be classified into the following categories:
• Local Markets
• Central Markets
• Retail Markets
• Direct Markets
• Indirect Markets
• International Markets
 Marketing philosophies
Product Orientation:
Consumers favour quality and
high performance products so
management’s efforts should
aim at continuous research
and development to come out
with innovative features
Production Orientation:
Consumers will favour
products that are available
and highly affordable so
management should focus
on production and
distribution efficiency.
Selling Orientation:
Consumers will not buy enough of a firm’s
product unless it embarks on aggressive
selling and promotion effort.
Marketing Orientation:
An approach where production is aimed at
customer satisfaction whilst taking into
account the offers of competitors.
Societal Marketing Orientation:
An Organization should determine the needs
of target markets, deliver the desired
satisfactions more effectively and efficiently
than competitors in a way that maintains or
improves the customer’s and society’s well-
being.
 Planning for Marketing

In order to successfully and profitably market new products that

consumers want, farmers or group of farmers need to do market
planning by following the steps below:
• Identify buyers and their needs.
• Decide on marketing channels to use.
• Plan production to meet buyers needs.
• Plan to harvest, process, grade, package or store.
• Identify arrangements for transport and delivery of the product.
• Calculate the marketing costs to be incurred.
• Calculate the perceived profits to be earned.
Marketing Strategy and Plan

Marketing mix
• Product—What are you selling?
• Price—What does the price “say” about your product?
• Place—What is the best location for your business?
• Promotion—How will you advertise and publicize your
product?
Marketing plan—statement of marketing goals and the
strategies to achieve them.
Product
• Broadly, a product is anything that can be offered
to a market to satisfy a want or need,
• It include physical goods, services, experiences,
events, persons, places, properties, organizations,
information, and ideas
• Basically products = goods + services
Product Levels: The Customer-Value
Hierarchy
Core
Benefit
Basic
Product
Expected Product

Augmented Product

Potential Product
 Product Classifications
• Durability and Tangibility
Nondurable goods
Durable goods
Services
Consumer-Goods Classifications
Convenience goods (staples, impulse goods,
emergency goods)
Shopping goods (heterogeneous or homogeneous)
Specialty goods
Unsought goods
• Industrial goods classifications
Materials and parts (raw materials, and
manufactured materials)
Capital items (installations and equipment)
Supplies and business services (maintenance and
repair items (paint, nails, brooms) and operating
supplies (lubricants, coal, writing paper, pencils).
 Pricing Your Product
Prices are very important in every business venture.
Prices dictates the pace of growth of any enterprise or economy.
They provide incentives for any economic and commercial venture. Hence
needed to be considered seriously.

• “A price is the perceived or quantitatively calculated worth of a product

(i.e. goods and services) both to buyers and sellers”
• , Prices are called different names in different industries: e.g wages and
salaries for labor, rent for houses, interest for capital costs, fees for
schools and hospitals, fares for transport, taxes for demands from
governments for providing goods and services, bills for utilities.
• Pricing on the other hand is ‘The act of establishing or setting prices or
the worth, of a particular product, by the seller, with or without the prior
consent of the buyer.
• Certain functions may go to assist the pricing, e.g. grading, packaging,
location etc.
Pricing Your Products Cont.

Several factors may influence the setting of prices for

products and may include the following:
• Corporate Marketing Objectives and Strategies.
• Market Information.
• Production and marketing costs.
• Competition in the Industry.
• Politics, Laws and Regulations.
• Market Arrangement
• Cyclical and Seasonal Factors
• Customers
Price Considerations

• Simply undercutting competitors’ prices will

not necessarily win you the largest market
share.

• Consider the psychology of pricing: consumers

tend to infer things about a product/service
based on its price.
Place: Location!
• The type of business affects the location that
works best.
• Who are your customers?
• Where do they shop?

• Goal: Find a location affordable for you, yet also

convenient for customers.
Place/Distribution Channels of Agricultural
Products
• Marketing Channels /agents usually called middlemen are
those individuals or business concerned that specialize in the
performance of various marketing functions that are
involved in the purchase and sale of goods as they are moved
from producers to consumers.
• They operate as individual proprietors, partnerships, co-
operatives or non-corporate organizations.
• Itinerant Traders
• Processors and Manufacturers
• Wholesalers
• Retailers
Place/Distribution Channels of Agricultural
Products Cont.
• Agent Middlemen (Brokers, Commission men etc.)
• Co-operatives
• Identifiable Institutions that uses the product in large
quanities e.g Schools, hospitals workplaces etc.
• Marketing Boards.
• Parastatal Marketing Organizations
• Exporters
• Facilitative Organizations
Promotion

• Promotion—use of advertising and publicity to

get your marketing message to your customers.
Advertising—purchased promotion (billboards, TV
ads, magazine ads, etc.).
Publicity—free mention of a company, person, or
product/service in the media.
 Marketing of Service
• American Marketing Association (AMA) defines
service as Activities , benefits and Satisfactions which
are offered for sale or are provided in connection with
the sale of goods.
• Types of Services
1.Core Services: A service that is the primary purpose
of the transaction. Eg Hair cut or Services of a
Lawyer
2. Supplementary Services that are rendered as
corollary to the sale of a tangible products. Eg. Home
delivery options offered by restaurants above a
minimum value bill.
 Types of Services
• 3. Hybrid: Consist of equal parts of goods and services
• Eg. People patronizing restaurants for both food and
services.
• 4. Major service with accompanying minor goods and
services : Vetinary Services
• 5.Pure Service: the offering consists primary of a
service. Poultry Consultancy, Eg Baby sitting ,
Guidance and Counselling, and Massage
Nature and Characteristics of Services
Service characteristics includes:
1. Intangibility
2. Inseparability
3. Perishability
4 Heterogeneity or variability
5. Lack of ownership.

5. Strategies for Service Organizations

1.) Service differentiation:

a.) Service firms offer different strategies to be recognised in
the competition.
b.) Service firms differentiate their services in supply chain
management practices.
c.) Service firms differentiate on the basis of image too.
2) Service quality:
Managing the quality is very difficult because of service
characteristics. Service dimensions includes:
• Reliability
• Responsiveness
• Assurance
• Empathy and
• Tangibility
3) Service productivity: the service productivity can be increased
in the following ways
a.)Train the existing employees.
b.)Recruit new employees who work better.
c.)Increase the quantity of their services
d.)Provide physical evidence to the services.
Differences between goods and services
Goods Services
A physical commodity A process or activity
Tangible Intangible
Homogenous Heterogeneous
Production and distribution are separated Production, distribution and consumption
from their consumption are simultaneous processes

Can be stored Cannot be Stored

Transfer of ownership is possible Transfer of ownership is not possible
Types of Service Customers
• Too gentle to insist on his right
• Gentle but will insist on his right publicly
• Gentle but will insist on his right privately
• Unassuming but very argumentative
• Sarcastic but proves his point
• Abusive and tries to get the support of others
• Selective of employees.
Disruptive Customers
• Maladjusted customer or rule breaker- do not want
to follow rules.
• Solution: do not discriminate, explain rules to
customers
• The Thief- have no intention to pay, or pay less than
the full price, pretending to benefit from concession,
receive service in other customers name or will shop
lift.
• Soln. prepaid method or automation.
Disruptive customers cont
• Belligerent Customer: extreme anger because of
drunkenness , drug abuse, and other forms abusive
behaviour.
• Soln
• Can be restituted.
• Feuders- customers who engaged very serious
arguments with other customers including their own
family members in restaurants, trains, etc.
• The origin of the argument may pre-date the service.
Disruptive customers cont
• The Vandal physically abuses the service provider,
• Physical assault, rip of banners , smash glasses etc.
• Soln security to restrain the vandal
• The Demonstrator: these are customers who fail to
pay for services as a way of protest,
• It may be as a result of delays , shoddy work , broken
promise, insulting staff or dissatisfied with service.
• Soln,
Facilitating services
• FAQ’s
• Order taking
• Websites
• Billing
• Payment systems
Supplementary services
• Hospitality
• Safe keeping
• Consultation
• Responsiveness to special requirement
 Branding

• Branding and presentation offers the product such unique

features like flavor, added ingredients, quality, name, design,
packaging etc.

• with additional benefits and services such as guarantees, after

sales, credits deliveries ‘catchy words’ etc.
What is Brand?

• A brand as "a name, term, sign, symbol, or design,

or a combination of them, intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of
competitors.
Branding ?
Branding is the process of creating a
brand that engages the hearts and
minds of customers

Brands do not live on products,

Brands live in in the heart and
minds of target market (Duncan
2007)
Choosing Brand Elements
• Brand elements are those trademarkable devices that
identify and differentiate the brand. They include:
Memorable
Meaningful
Likeable
Transferable
Adaptable
Protectible
Distinctive
 Benefits of Branding

Corporate Identity is the overall image of a firm

in the minds of diverse publics such as
customers, investors and employees
Corporate branding help create a corporate
identity that the public immediately recognizes;
logos, stationery, brochures, business cards and
any other thing that the firms identity could be
found (Kotler and Armstrong, 2008).

.
Benefit of Corporate Branding
Cont.
Why Corporate Identity
Set you apart from your competitors.
Sends a strong message to clients
about who you are. It establishes a
feeling of trust and confidence that
encourages them to do business with
you.
 Establish Your Brand

• Choose an easy-to-remember name that describes

your business.
• Design a logo that symbolizes your business.
• Develop a good reputation.
• Create a brand “personality” and communicate it to
your target market.
Defining Brand Equity
• Brand equity is the added value endowed on
products and services.
• It may be reflected in the way consumers think, feel,
and act with respect to the brand, as well as in the
prices, market share, and profitability the brand
commands for the firm.
• Brand equity must be measured from the customers’
perspective- Customer-based brand equity
Components of brand equity:
1. Brand loyalty
2. Brand awareness
3. Perceived quality
4. Brand associations
Packaging, Labeling, Warranties
and Guarantees
• Most physical products must be packaged and
labeled.
• Many marketers have called packaging a fifth P
along with price, product, place, and promotion.
• Most marketers, however, treat packaging and
labeling as an element of product strategy.
• Warranties and guarantees can also be an
important part of the product strategy, which often
appear on the package.
Packaging
• All the activities of designing and producing the
container for a product.
• The package is the buyer's First encounter with the
product and is capable of turning the buyer on or off.
• Various factors have contributed to the growing use
of packaging as a marketing tool:
 Self-service
Consumer affluence
Company and brand image
Innovation opportunity
Labeling
• The label may be a simple tag attached to the product
or an elaborately designed graphic that is part of the
package.
• It might carry only the brand name, or a great deal of
information.
• Even if the seller prefers a simple label, the law may
require more.
• Labels perform several functions:
• identification, grading, description and promotion.
An Example of a Labelled Product
 Warranties and Guarantees
• Warranties are formal statements of expected
product performance by the manufacturer..
• Whether expressed or implied, warranties are legally
enforceable.
• Guarantees reduce the buyer's perceived risk
• They suggest that the product is of high quality.
• Helpful when the product is not that well known or
when the product's quality is superior to competitors.