Agroindustrial project analysi

52 AGROINDUSTRIAL PROJECT ANALYSISgenerally more costly and have a lower breadth and coverage thanindirect methods but a stronger effect on consumer behavior.' 3Indirect promotional vehicles include television, radio, film,newspapers, periodicals, billboards, posters, and leaflets. The distinctionsamong them reflect differences in the characteristics of thetarget audience. For example, if the audience has a low literacyrate, a firm would choose oral rather than written media. Likewise,lower-income segments would not be reached by television advertisingbut might be reached by transistor radios. Mass media vehiclescan cover broad audiences at frequent intervals.Direct and indirect techniques of promotion are not mutuallyexclusive-if it is cost beneficial to use both techniques, they canbe mutually reinforcing. In general, if the product is new, complex,expensive, and not easily differentiated, the consumer buying processis complicated and risky, and personal selling is more effective.Both techniques can be used with push or pull strategies.DistributionDistribution is important in the marketing mix because it linksthe processor to the marketplace. It should be examined by lookingat the structure and functions of the distribution system to assessintegration and outlet options.STRUCTURE. The structure of the distribution system can be describedby the length of its channels-that is, the number of intermediariesbetween the manufacturer and the consumer. It can alsobe described by the breadth of the system-the number of wholesalersand retailers at each level. Finally, it can be described bythe nature of the institutions operating it. At the wholesale level,these institutions can be full-line, limited-line, or specialty wholesalerswho buy and resell goods. Agents and brokers also operateas wholesalers, but as commissioned sales agents for the manufacturerrather than as buyers of merchandise. Government marketingboards can also be wholesalers, particularly for major exportproducts. Retail stores can be categorized according to the kind ofgoods offered-for example, convenience, shopping, or specialty.13. Telephone contact can achieve broad coverage and high frequency evencompared with some mass methods-for example, mailings or advertising inperiodicals. In many developing countries, however, telephone ownership islimited and service defective, thereby diminishing this method's applicability.