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Agricultural Marketing Terms

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Vertical Integration

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A strategy where a company expands its business operations into different steps on the same production path, such as when a farm owns both the crop production and the processing plants.

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Product Differentiation

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A marketing process that showcases the differences between products, focusing on the unique aspects to make a product more attractive compared to its competition.

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Cross-Promotion

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A marketing strategy where two or more companies or products are promoted together, with the aim to utilize the synergy between them to increase each other's sales.

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Value-Added Products

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Products that have been processed or altered to increase their value from the original raw material, often resulting in a higher price point.

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Direct Marketing

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The business of selling agricultural products directly to the consumer, bypassing any middlemen such as wholesalers or retailers.

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Price Skimming

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A pricing strategy that involves setting a high price for a new product to maximize profits from the segments willing to pay the high price, before reducing the price to attract a broader market.

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Market Penetration Pricing

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A strategy in which a product is introduced to the market at a low initial price to stimulate rapid and wide consumer adoption.

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Market Basket Analysis

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A data analysis technique used to discover purchase patterns by examining the items that customers buy together, often used for cross-selling strategies.

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Market Segmentation

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The process of dividing a market of potential customers into groups or segments, based on different characteristics such as demographics or buying habits.

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Branding

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The process of creating a unique name, symbol or design that identifies and differentiates a product from other products.

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Niche Marketing

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Focusing on a specific segment of the market, offering a product or service to satisfy the particular needs and preferences of that niche.

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Commodity Marketing

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The buying and selling of primary agricultural products, such as grains, livestock, and other raw goods.

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Agribusiness

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A business that earns most or all of its revenues from agriculture, involving everything from farm equipment to seed and fertilizer production.

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Loss Leader Strategy

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A pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods.

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Cooperative Marketing

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This type of marketing involves a partnership between producers (usually farmers) who pool their resources for processing, marketing, and distributing their products.

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Customer Relationship Management (CRM)

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A strategy that companies use to manage interactions with customers and potential customers, often utilizing data analysis about customers' history with a company to improve business relationships.

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Green Marketing

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Marketing products based on their environmental benefits, often using sustainable, organic, or 'eco-friendly' branding.

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Agritourism

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A form of commercial enterprise that links agricultural production and processing with tourism to attract visitors onto a farm, with the goal of generating additional income.

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Supply Chain Management

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The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

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Cost-Plus Pricing

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A pricing strategy where a fixed percentage is added on top of the production cost to determine the selling price of a product.

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