The 3rd "P" of the marketing mix deals with promotional activities.
Promotional activities in the agribusiness are designed to do one thing – communicate the value of the firm’s products and services. Any marketing strategy incorporates variety methods for informing customers of the value of the firm’s products and services and convincing them to buy from the firm. This part of the marketing strategy is basically a communication process intended to modify customer behavior and encourage a positive buying decision.
Methods of promoting our product or service can be a combination of Advertising, Sales Promotions, Personal Selling, and Public Relation (PR). However, to determine which methods of promoting our product or service must consider the life stage of the product, the stage of product adoption in the marketplace, competitors’ actions, and available budget. The agribusiness company also should follow the promotion strategy process.
Five steps/process to develop a promotion strategy:
1. Identify the target audience – could be specific groups of prospects, a group of key influencers, or a group of former customers.
2. Determine the communications objective – the firm decides the action they want as a result of purchase, such as to remind customers of something, or to change a noncustomer’s attitude – i.e. product adoption.
3. Design the message- here the marketer creates a message consistent with the communication objective. Ideally the message will get the audience’s attention and elicit the desired action.
4. Select the communication channel – there are a variety of channels available to the agribusiness marketers – television advertising, coupons in the print media, personal sales calls to food retailers, and in-store merchandising support such as signs and display racks.
5. Manage the implementation of the program – this step involves allocating the promotional budget to the various activities, coordinating the market communication process, and measuring the results of the process.
Why Agribusiness Company need Promotional Activities?
1. Our promotions are designed to create demand.
2. Key market communications channels are: Advertising, Sales Promotion, Personal Selling, and Public Relation (PR).
Different Methods of promoting your product or service
First Method - Advertising
i) Advertising - are aimed at Making potential customers aware of the existence of your business, your product and services and to encourage them to buy from you.
ii) Purpose of advertising - is to inform people how best they can satisfy their needs and wants, and how they can benefit by buying your goods and services.
iii)Communication medias for advertising – television (used by national food manufacturers), radio (by local agribusiness – why?), magazines, newspaper, direct mail, internet (entertaining websites to encourage frequent access to the sites).
What advertising can do?
Principle of AIDA
A - Attention
I - Interest
D - Desire
A - Action
Yellow Pages Directory
b) Sales Promotions
Second Methods of promoting your product or service.
Sales Promotions – i.e. programs and special offerings designed to encourage interested customers into making a positive buying decision. Examples of sales promotion activities are: Giving prospects and customers hats, pens, note pads etc.;
Food shoppers will get free samples, coupons, special offers (buy 1, get 1 free), contests, and rebate; and Regional trade shows such as MAHA Exhibitions – numbers of suppliers attract thousands of farmers.
c) Personal Selling
The third Method of promoting your product or service is Personal Selling. For this method, the company will use salesperson - provide flexible and highest impact, through knowing individual needs of the customer
d) Public Relations
The fourth Method of promoting your product or service is Public Relation activity.
Through Public Relations activities - the company will establish a favorable image – typically influence the target audience in an indirect way. For examples:
a) favorable news stories that create positive image for the firm such as food Company expenditures on nutritional education programs for school children,
b) getting news stories carrying the company’s desired message publicized through the television, radio, and print media – fund raising story, the message may be that the local firm really cares about the local community.