• Title/Summary/Keyword: Direct marketing

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A study on direct-to-consumer and intermediated marketing for the 6th industrialization in the U. S. agricultural sector

  • Kim, Sounghun
    • Korean Journal of Agricultural Science
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    • v.45 no.2
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    • pp.308-316
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    • 2018
  • The Korean government introduced the $6^{th}$ industrialization in the agricultural sector to increase farmers' income and value-added agricultural products. The U.S. government has also supported farmers' efforts to increase their income and value-added products in a similar way even though the $6^{th}$ industrialization is not the usual concept in the U.S. Especially, direct-to-consumer and intermediated marketing is one of the main methods to increase farmers' income and value-added agricultural products in the U.S. The purpose of this paper was to analyze direct-to-consumer and intermediated marketing in the U.S., through a survey and frequency analysis. The results of this study are as follows: First, U.S. farmers have shifted their concern and efforts from direct-to-consumer marketing to intermediated marketing because intermediated marketing may offer higher value-added agricultural products. However, consumers' perception and interest are higher for direct-to-consumer marketing than for intermediated marketing of agricultural products and related services. Consumers also will increase the portion of consumption of agricultural products and related services through direct-to-consumer marketing. This difference between farmers and consumers may cause difficulties in increasing farmers' income and value-added agricultural products in the U.S. Korean farmers may have same problem in the future, even though they have not encountered it yet. Especially, the Korean government needs to develop the capabilities of farmers so that they can solve this problem.

Development of a New Direct Marketing Channel in the Chinese Rural Market: The Case of Hongfu Fertilizer Company

  • Li, Dao-sheng;Hong, Jinhwan
    • Asia Marketing Journal
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    • v.15 no.2
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    • pp.29-47
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    • 2013
  • Distribution channel decisions involve long-term commitments with other firms that are very difficult to change or replace. In particular, marketing channel decisions in emerging markets are much more complicated due to unfamiliar conditions and problems such as lack of market data and distribution systems. Therefore, when a company considers changing or introducing a marketing channel in an area, it is much more difficult to judge its effectiveness in an emerging market than in a developed market. In this study, we investigate the development process of a new direct marketing channel of Hongfu Fertilizer Company (hereafter Hongfu), a medium-sized Chinese fertilizer manufacturer, and propose an approach to test the feasibility of this new marketing channel in the Chinese rural market. We measure the effectiveness of Hongfu's new marketing channel from two perspectives: i) from customers' perspective through direct responses of farmers, which showed that a new channel can increase the convenience and lower the purchasing costs for the farmers, and ii) from the company's perspective, by calculating the incremental profit of the company using the expansion factor (T/Q) method, which suggested that the execution of Hongfu's strategy to expand a new marketing channel will result in an increase in profits. The results of this study contribute to the development of a methodology to test the feasibility of a new direct marketing channel in the emerging markets such as the Chinese rural market. Traditional and indirect distribution channels in emerging markets are generally not very efficient and difficult to change. Especially, in emerging markets, like the Chinese rural market, the methods of testing channel feasibility must be different from that of developed markets. Considering market situations, market experiments can be more effective then systematic market surveys in testing channel feasibility in emerging markets. This study implies that managers must learn to cope with a transition from the traditional marketing channels in emerging markets. With the development in farmers' understanding of marketing concept, the transition from traditional marketing channel is unavoidable for all firms. Farmers in China are generally very conservative, however, their buying behaviors are changing. Therefore, fertilizer companies should try to adjust in accordance with farmers' demand characteristics that the efforts to meet the economic needs of farmers with new marketing channels as well as trust building are critical in the near future.

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Marketing Issues of Pureundeul Farming Corporation at Asan City (푸른들영농조합의 친환경농산물 유통실태와 발전과제)

  • Kim, Ho;Yoon, Jong-Yeol
    • Korean Journal of Organic Agriculture
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    • v.13 no.1
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    • pp.69-84
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    • 2005
  • Pureundeul fanning corporation(PFC) is an cgmplary body of all producer organizations for environmentally friendly agriculture(EFA) in Korea. It is located at Asan in Chungnam and has 301 farmers. They attained more than 10 billion wons as a sale in 2004. And The direct marketing channel of the EFA products is the second logistics center(Asan) ${\to}$ the first logistics center(Gwangju Gyunggi) ${\to}$ local hansalim shops ${\to}$ consumers. It is needed to construct the system of the direct marketing as follows : First, it needs to construct the direct marketing system within the region for EFA products of Asan. Second, the direct shop and suppling area should be enlarged as a way to promote sales with the demand increase of EFA products. Third, an aggressive promotion campaign is be needed for increasing motivation of consumption and understanding of EFA products.

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A Study on the Fisheries Marketing Channels (수산물 마아케팅 경로(FMC)에 관한 연구)

  • 강연실
    • The Journal of Fisheries Business Administration
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    • v.23 no.2
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    • pp.101-128
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    • 1992
  • How to distribute fisheries catches from producer to consumer is very important for everybody joined fisheries marketing channels (FMC), because most people are influenced their revenue and expenditure through marketing channels. Many institutions in Korea after 1960's have tried to develop the rationalization of FMC, but they have not gotten the satisfactory results in general in spite of a lot fruits. Comparing with general manufacturing industry, the fisheries industry has some specializations in the marketing channels. It makes them unique structure included wholesale market system similiar to fresh (perishable) food market with expertised technology. Wholesale market collects, distributes the fisheries catches and evaluates in by auction or bidding without consideration of producer's opinion. It is very necessary institution to make a decision to equatible price for fresh food and to play an important role for marketing effectiveness with minimum total transation and with massed reserve among institutions. But it has two weak points to increase the marketing cost and to make products bad fresh (perishable). Therefore, both Producer and consumer want to find the direct channels not to pass through wholesale market and to get more profit. I wanted to explain what problems of traditional FMC are and why the direct channel is necessary as follows in this paper. Chapter II : The types and specialization of FMC Chapter III : The structure and problem of fisheries wholesale market channel Chapter IV Marketing cost of FMC and direct channel I suggested when the direct channel in FMC is designed, new planner must carry out marketing functions which are performanced by wholesaler, middle man and the joined members of auction at wholesale market. In view of consumption area, these functions are : (1) the finding of production partner to make a business ; (2) communication of information ; (3) collecting ; (4) distribution ; (5) selecting and grading ; (6) evaluating ; (7) financing and payment ; (8) organization, in view of consumption area. The government must support also the group or individual of new direct channels to succeed it with (1) furnishing of market information (2) supplying of land and facility (3) financing (4) feed-back of dierct channels totally (5) making an opportunity of communication between producer and consumer. I want to emphasize again wholesale market is necessary and important institution for equatible price of fresh food in spite of the its weak points. At the same time. the direct channels are necessary to reduce the marketing cost and to keep better fresh food.

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The preference for direct marketing according to the characteristics of policyholders in the life insurance industry (생명보험산업에서 보험계약자 특성에 따른 비대면채널 선호 분석)

  • Jung, Se-Chang
    • Journal of the Korean Data and Information Science Society
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    • v.22 no.6
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    • pp.1137-1143
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    • 2011
  • The purpose of this paper is to analyse the preference for direct marketing according to the characteristics of policyholders and suggest implications for marketing strategies with regard to direct marketing. A marked characteristic of this paper is a good quality of data and the results gained from analysing the data can be trusted very much. Binary logistic regression is employed. A statistically significant preference is shown in the group such as male, a younger generation, a hazardous occupation, the metropolitan area, and the customer of foreign company. The results suggest that promotion for female is needed to revitalize direct marketing. A tight underwriting for a hazardous occupation is also required.

Game Theoretic Analysis of the Direct Marketing Channel Strategy of a Manufacturer (게임이론을 이용한 제조업체의 직접마케팅 진입전략 분석)

  • Rhee, Min-Ho;Cho, Hyung-Rae
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.32 no.3
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    • pp.168-177
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    • 2009
  • The proliferation of the internet and electronic commerce has given the manufacturers the opportunity of direct marketing. This study analyzes the decision of manufacturers regarding whether to sell the products through independent sales company or to sell the products to the consumer directly. To do this, a new demand function is proposed and sub and super games are modeled and analyzed based on the demand function. By analyzing the Nash equilibria, it is shown that the manufacturers' decision of direct or indirect marketing not only depends on the competitiveness between the products but the absolute and relative marketing capabilities of the manufacturers. It is also shown that, in some cases, the manufactures have incentive to rise the competitiveness between the products to maximize the channel profit.

Changes in Marketing Environments and Prospect of Cyber-Agricultural Market (유통(流通)환경(環境)의 변화(變化)와 가상(假想) 직거래시장(直去來市場)의 도입방안(導入方案))

  • Kwon, Yong-Dae
    • Korean Journal of Agricultural Science
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    • v.23 no.2
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    • pp.330-341
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    • 1996
  • As the agricultural marketing environments, which are consumers' tastes and preferences, producers' involvements in marketing business, government policy and liberalization of domestic market, have rapidly changed, current marketing systems are facing transitional periods. To cope with changing marketing environments, it is desirable to develop new marketing system that efficiently direct the flow of agricutlural products from producers to consumers. Cyber-marketing system, in which producers and consumers could conduct direct transaction with each other using computer internet system, would be suggested so that marketing stages and costs can be reduced. However, for cyber-marketing to be managed successfully, it is a need to establish data base and information network system for producers' group and consumers' group and to improve the marketing functional performances such as grading, packaging, and storage system.

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A Study on the Development of Direct Marketing Strategy for Organic Agricultural Products (유기농산물 직거래전략 개발에 관한 연구)

  • Yoo, Duck-Ki
    • Korean Journal of Organic Agriculture
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    • v.19 no.4
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    • pp.475-500
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    • 2011
  • One of the first important strategic decisions when a starting an organic marketing initiative (OMI) is to plan the right strategy for distributing products. This decision depends to a large extent on whether the OMI has chosen a quality-premium product strategy or a price-quantity strategy. All distribution decisions interact strongly with other aspects of the marketing mix. Where and how a product is distributed objectives, its chosen strategy and the availability of human and capital resources. To select a market channel, frequent contact and discussions with possible partner are important. Generally, a distribution is made between the direct and indirect physical distribution of organic products to consumers. The longer the supply chain, the lower the chances that an OMI can steer the market through its own marketing measures and convince consumers through its own promotion activities. Generally speaking, the shorter the chain between OMI products and the final consumer, the less dependent the OMI will be on the success of other market actors. Direct selling activities to the retail or food industries also requires an OMI to undertake additional processing and marketing activities. For example, retailers often expect products to have been packed and labelled ready for sale. To conclude, distribution channels should be chosen in accordance with the product and price policy as well as the management capacity of the OMI.

A Study on the Production Adjustment and Price Support Program of Sea Mustard Aquaculture (미역양식업의 생산조정과 가격지지)

  • 강종호;진상대
    • The Journal of Fisheries Business Administration
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    • v.32 no.2
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    • pp.73-89
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    • 2001
  • The market conditions of sea mustard is changing by overproduction, decreasing price, Import of blanched and salted sea mustard from China into Korea domestic market and increasing market share of sea mustard of China in Japan. In addition, the price support program in sea mustard aquaculture must be modified due to the restriction of domestic support by international organization such as WTO. There are two ways to solve those problems. First is that finding a way to solve the overproduction of sea mustard. One of possible ways is the production adjustment by Marketing Order. Second is that finding an alternative way to replace price support program. The possible way is Direct Payment instead of purchase stockpile system. To introduce marketing Order, outlook center, organization of self-management, production adjustment through output control measure, improvement of market structure, and education/publicity arc necessary. Also, to implement marketing order, setting a model business by government is required. There are two steps for implementation of marketing order. First step is to construct Order Committee including organization of producer, people related marketing. However, this committee must run by government for certain short-term. Second step is to improve quality of product and acceleration of demand. At visual point that enforcement of the first step is completed, government has process that government transfers Order Committees self-correcting. It is desirable that government only conduct the support acts such as quality improvement and acceleration of demand. Also, at early stage it is necessary to have aid system for marketing order For example, we can expect that income increase by production adjustment in long run. However, in short run the income of producer may decrease so, it is required to compensate his economic lose. For compensation, The useful means that can be utilized is direct payment. Direct payment is not continued policy. Also, when production adjustment policy such as Marketing Order has effective results, Direct Payment as an assistant measure must be reduced or abolished. Therefore, when production adjustment acts as an effective tool to control overproduction, Direct Payment system.

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The Effects of Marketing Culture on Service Quality, Customer Satisfaction and Customer Loyalty in Distribution Service Firms (유통서비스 조직의 마케팅문화가 서비스품질, 고객만족 그리고 고객충성도에 미치는 영향에 관한 연구)

  • Park, Jong-Oh;Jang, Chung-Seok
    • Management & Information Systems Review
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    • v.23
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    • pp.99-134
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    • 2007
  • In recent years there has been much emphasis on the need for service firms to develop an organizational culture which facilitates the successful implementation of marketing activities. This study examines the relationship among marketing culture, service quality, customer satisfaction, and customer loyalty in fast food service firms. The results of empirical analysis can be summarized by the following: First, marketing culture(employee service quality, interpersonal relationships, selling task, organization, internal communications, innovativeness) had a significant direct effect on service quality. Second, marketing culture(employee service quality, selling task, internal communications) had a significant direct effect on customer satisfaction. It had also a positive, significant indirect effect on customer satisfaction through service quality. Third, service quality had a significant indirect effect on customer loyalty through customer satisfaction. Therefore, the results of the study provide the practical implication for establishment of service firms' marketing strategies, related to marketing culture.

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