Agro food marketing is a form of marketing in which agricultural and food products use general marketing approaches like the other products and services in the market. All the marketing topics that are relevant for other products and services like marketing mix, segmentation, positioning, branding, targeting etc. are very important for agricultural and food marketing.
What is Agro - Food Marketing?
Why it is different?
Agro food marketing differences in a way that involves challenges such as dealing with a perishable product whose quality and availability depends on the current harvest condition on the supply side. Farmers very often face a limited or no control over market conditions. Farmer’ reaction time to the market changes is very limited and it depends on the natural cycles of the products that they produce. Farmers often face a so called “cost-squeeze” meaning when market prices decline, prices paid to farmers decline too, however, even though the prices decline, the costs of the farmers do not. These price fluctuations may change a crop from being profitable to cause significant loss.
Growers, producers and manufacturers now work together to create products and services that meet customers’ standards. Because competition is increasing on a global level, in order to beat that competition you can not only use managerial skills, you also need significant marketing knowledge. Marketing science in the industry of agriculture and food has allowed adaptation of previously mentioned marketing tools to be adopted to the specific challenges in this relevant industries.
Why it is important?
Food Marketing Efficiency
Implementing specific marketing in the case of agriculture and food industry allows optimizing the limiting budgets for marketing especially in the farming business. Additionally, marketing in the case of these industries incorporates the specific challenges that are derived from the food as a perishable product that needs to be delivered and consumed on the global market. Therefore, efficient market in the context of agriculture and food industry needs to take into consideration the specifics of the value chain, post harvesting activities, storing, food safety standards, increased awareness of healthy food etc.
Optimal ratio “value for price”
Agricultural and food marketing assists food and agricultural businesses to identify the right competitive value attributes of the products and to optimally match them with the monetary value of the product-THE PRICE.
Meeting customer standard
Implementing conventional marketing tools in the context of agriculture and food industry means incorporating all required food safety standards that are obligatory to compete on local, regional and the global market. Additionally, marketing helps businesses in the way how these standards should be exposed and promoted in order consumers to know what they are buying.
Adaptation of products to market needs
Marketing tools assist agricultural and food businesses in better understanding the specific needs of the final consumers and how these needs can be satisfied by optimal combination of the qualitative and monetary attributes of the food products. Segmenting and targeting are essential to understand the specifics of the food demand and the ways how businesses should position in order to meet these market characteristics.
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