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Agricultural Marketing Terms
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Vertical Integration
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.
Product Differentiation
A marketing process that showcases the differences between products, focusing on the unique aspects to make a product more attractive compared to its competition.
Cross-Promotion
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.
Value-Added Products
Products that have been processed or altered to increase their value from the original raw material, often resulting in a higher price point.
Direct Marketing
The business of selling agricultural products directly to the consumer, bypassing any middlemen such as wholesalers or retailers.
Price Skimming
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.
Market Penetration Pricing
A strategy in which a product is introduced to the market at a low initial price to stimulate rapid and wide consumer adoption.
Market Basket Analysis
A data analysis technique used to discover purchase patterns by examining the items that customers buy together, often used for cross-selling strategies.
Market Segmentation
The process of dividing a market of potential customers into groups or segments, based on different characteristics such as demographics or buying habits.
Branding
The process of creating a unique name, symbol or design that identifies and differentiates a product from other products.
Niche Marketing
Focusing on a specific segment of the market, offering a product or service to satisfy the particular needs and preferences of that niche.
Commodity Marketing
The buying and selling of primary agricultural products, such as grains, livestock, and other raw goods.
Agribusiness
A business that earns most or all of its revenues from agriculture, involving everything from farm equipment to seed and fertilizer production.
Loss Leader Strategy
A pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods.
Cooperative Marketing
This type of marketing involves a partnership between producers (usually farmers) who pool their resources for processing, marketing, and distributing their products.
Customer Relationship Management (CRM)
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.
Green Marketing
Marketing products based on their environmental benefits, often using sustainable, organic, or 'eco-friendly' branding.
Agritourism
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.
Supply Chain Management
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.
Cost-Plus Pricing
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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