“The Essence of Marketing Is Management Decision Making”

Attributes of the 21 st Century Farm Executive ( Doane’s Focus Report ) 1. Anticipate and adapt to changing needs of their markets 2. Are open to exploring new ideas and considering different points of view 3. Are net workers 4. Are strategic thinkers 5. Have the ability to assess strengths and weakness in people, including themselves

Attributes of the 21 st Century Farm Executive (Continued) 6. Operate in a continuous improvement mode 7. See things form a systems perspective 8. Are calculated risk takers and excellent risk managers 9. Are opportunists and recognize the importance of timing

10. Spend more time thinking about “what-if” scenarios and developing contingency plans 11. Seek input and expertise outside the business 12. See change and challenges as opportunities, and don’t view themselves as victims Attributes of the 21 st Century Farm Executive (Continued)

13. See themselves as the head coach 14. Use a balanced approach to management 15. Spend more time on monitoring and analysis Attributes of the 21 st Century Farm Executive (Continued)

16. Decisions are based on reason and judgment, less on emotion 17. Innovative and seek ways to force themselves tothink outside the box 18. Work harder at communication 19. Put first things first Attributes of the 21 st Century Farm Executive (Continued)

20. Focus on developing the business’s future leaders 21. Are passionate about what they do 22. Are excellent problem solvers 23. Have learned how to resolve conflict constructively 24. Are skilled negotiators Attributes of the 21 st Century Farm Executive (Continued)

25. Have learned how to balance their life

Agriculture Marketing (AGB:235) An overview to the agricultural markets and marketing systems and how these are evolving in a rapidly changing global market. Students will learn how to analyze markets and pricing alternatives and how to use the futures markets to lock-in or improve profits. Includes the study of farm level price behavior, pricing systems and marketing management. Other areas that will be studied include technical analysis and use of other market information.

Class Assignments Discussion Questions 5 pts.) A discussion board will be provided in online in Moodle. For each unit I will be posting an assignment for you to respond to. Postings must show intelligent thought and are worth 5 pts each. You may also respond to other student’s postings.

Class Assignments (continued) Chapter Terms –You are to pick 20 of the chapters and define the full list of terms for that chapter. You can use any chapters that you want but you must include at least one chapter from Part VI. The terms list are due no later than one week after the chapter has been covered in class.

Class Assignments (continued) HedgeSim (5 10 pts.) This is a marketing simulation program that is available on the NICC computer network

Class Assignments (continued) Market Advisory Reports: –Six reports are to be written about an agriculture marketing advisory service. –The purpose of these reports is to expose you to the different types of market information that is available.

Class Assignments (continued) Futures Challenge –You are going to simulate trading contracts on the CBOT or CME as a speculator. –You may trade Corn, Soybeans, Live Hogs, Live Cattle, Feeder Cattle, or Fluid Milk.

Class Assignments (continued) Marketing Plan Assignment –You will be required to develop a 12 month marketing plan and proceed through the first 4 weeks of its implementation.

Moodle will be used as a online resource for discussions and assessments

“The Task of Marketing Is to Convert Society’s Needs and Wants Into Profitable Opportunities”

Two Million US Farms With an Average Farm Size of 449 Acres

Farm Products Are: Perishable Vary in Quality Geographically Concentrated

They Must Be: Collected Sorted Swiftly moved to market or stored.

Marketing Defined The performance of all business activities involved in the flow of food products and services from the point of initial production until they are in the hands of the consumers.

Food Marketing Challenges Food distribution to consumers –What to produce –How to process –Where to distribute Reasonable returns to farmers –Price / profit signals from consumers –Profit margins beyond the farm Dr. John D. Lawrence, Iowa State University

A Market Provides Four Utilities Form Place Time Possession

Key Players: Food Producer (Farmer) Food Marketing Firms (Middleman) Food Consumers(Everybody)

Food for Thought At the Coffee Shop Need three volunteers –Farmer Fred –Consumer Connie –Middleman Mike Role Play Mini Case I, Page 13

Farmers and Middleman Competitive? Complimentary? Mutually Interdependent?

The Most Important Function of a Market Is to Assist in the Efficient Allocation of Resources

Employment 57,800 new opportunities per year 41% will be in the area of marketing, sales and management Number of farm operators is declining although good opportunities remain for the right people.

Two Sides of Marketing Micro Marketing –Those decision maker choices faced by individuals in food production, processing, and consumption Macro Marketing –The big picture focus –State, regional, country, world

“To be successful, marketing managers must be aware of how the changing macromarketing environment is affecting their decisions and creating new market opportunities.”

“The Pioneers of Our Country Did Not Have to Concern Themselves With Marketing Problems”

What About Developing Countries? Brazil?

“Agriculture Production and Food Marketing Must Develop Hand in Hand

Market Economies Vs. Centrally Planned (Communist) Economies

Criteria of a Market Economy Recognize Private Property Rely on Decentralized Price System Emphasize Competition Freedom of choice –Including freedom to fail High Value on Satisfied Customers Limited Role of Government

Market Economy Faults Excesses Waste of Resources Pollution Not equal results for all Unemployment Inflation Recession

Discussion Questions (Page 19) Count off and divide into 7 groups. –Group Question 1 –Group Question 2 –Group Question 3 –Group Question 6 –Group Question 8 –Group Question 9 –Group Question 10