Agroindustrial project analysi

THE MARKETING FACTOR 35ucts are purchased occasionally. Purchasing frequency affects severalmarketing issues, pricing among them. A manufacturer, forexample, can sell rice at a low price because it is purchased frequently,but a product such as palm hearts requires a high priceto offset its low volume. The demand for some agroindustrial products,such as ice cream and hot breakfast foods, is seasonal. Thisposes additional questions for inventory management, cash flow,and diversification of product line, questions that will be examinedfurther in chapter 4.Where people purchase varies by segment and product. Highincomeconsumers tend to use supermarkets or specialty stores,whereas low-income consumers shop at small, neighborhood storesor public markets. Although buyers are willing to travel for plannedpurchases, they buy impulse items according to what is available.When designing a distribution system, manufacturers should considerwhere consumer segments shop. For example, the Mexicangovernment's food-marketing agency, Compafiia Nacional de SubsistenciasPopulares (CONASUPO), situated its low-price food storesin low-income neighborhoods to reach these consumers.Market researchMarket research attempts to identify consumer needs, marketsegments, and the buying process to facilitate sound marketingdecisions. The process consists of four steps: data specification,source identification, data collection, and data analysis (see thesecond section of the bibliography for further reference).DATA SPECIFICATION. The private or public marketer must definehis or her market information needs. These needs will vary accordingto the type of agroindustrial project, the marketer's familiaritywith the product's market, and the financial risks. 4SOURCE IDENTIFICATION. After identifying the necessary information,a marketer should locate the information's primary and sec-4. Definition of the "market" and the "consumer" is also essential for socialinterventions such as governmental programs to serve malnourished children.For the information requirements relevant to such undertakings, seeJames E. Austin, Confronting Urban Malnutrition: The Design of NutritionPrograms, World Bank Staff Occasional Papers, no. 28 (Baltimore: JohnsHopkins University Press, 1980), pp. 18-51.