Application of Market Segmentation Strategy in Agricultural Products Marketing

Abstract: Market segmentation is the key to the success or failure of farmers' agricultural products marketing in China. Under the condition of buyer's market, subdividing agricultural products market will become an effective measure for agricultural development and farmers' income increase. Farmers must correctly choose the target market in the market segments in order to succeed in the marketing of agricultural products. To avoid entering the "fallacy of composition" misunderstanding of market segmentation.

Keywords: market segmentation of agricultural products marketing

Market segmentation is the inevitable product of the buyer's market of agricultural products.

China's agricultural products market is over-saturated. Since the reform and opening up, China's comprehensive agricultural production capacity has been greatly improved. There are many kinds of agricultural products in the market, showing a prosperous scene. The situation that the overall supply of agricultural products exceeds demand has been formed, and it has gone out of the state of "supersaturation". According to the 200 1 survey conducted by the National Bureau of Statistics, the supply of 1 18 major agricultural products in China exceeds demand, and the self-sufficiency of grain has been greatly enhanced, resulting in the phenomenon of continuous decline in food prices and a large number of stocks. Cotton production is affected by the development of alternative production and the obstruction of textile export, and the market demand is weak. There is a serious surplus of some small agricultural products in income elasticity of demand, and it is difficult to sell them. This has seriously dampened the enthusiasm of producers and operators. Many farmers feel that the competition is more and more fierce, consumers are more and more difficult to satisfy, marketing is more and more difficult, and many farmers fail to operate. If this problem is not solved well, it will endanger the healthy development of agricultural production.

There is a gap in the saturated market

Saturation means that at a certain coordinate point in the agricultural product market, the demand of a specific consumer is well met within a certain period of time, while blank means that the demand of the whole agricultural product market is constantly developing and changing, and new explicit or implicit demand points are constantly generated. The "saturation" of agricultural products market is relative, but the blank is absolute, the demand of consumers is endless, and the exploration of agricultural products market is endless. On the surface, the agricultural product market seems to have reached a certain degree of "saturation". In fact, with the improvement of living quality and living standard, consumers' demand for agricultural products has produced a new trend of multi-level, diversification and multi-variables. Under the bustling and dense surface of agricultural products market, there is a huge virtual space. It's just that explicit needs are easier to capture and discover, while those hidden potential needs are often easily overlooked. However, relative to explicit demand, implicit demand often has a larger market space. In this sense, the process of agricultural development is the process of constantly eliminating the blank market and constantly approaching market saturation. The process of optimizing the market positioning of agricultural products is the process of gradually adapting to the dominant demand of specific consumer groups, gradually running in with the dominant demand of specific consumer groups, and cultivating consumer complex on the basis of regrouping consumer groups according to certain ideas.

Find the market gap through market segmentation

There is a blank spot, but where is it? How to find these blank spots? This requires market segmentation. The so-called market segmentation refers to the process of dividing the market into several consumer groups with similar needs according to the differences of consumer needs. After market segmentation, every consumer group is a market segment, also known as "sub-market" or "sub-market", and each market segment is a group of consumers with similar needs. Consumers belonging to different market segments have obvious differences in the demand for the same product, while consumers belonging to the same market segment have extremely similar needs. The consumption group of agricultural products is a constantly changing and developing sports body. This huge group with a large number of people is widely distributed in all aspects of society, forming a specific consumer group with independent main parts and overlapping marginal parts. Regardless of age or income. These consumers of agricultural products, who have the advantages of different groups, constitute a diversified, multi-level and multi-variable agricultural product market and become the market basis for the sale of different agricultural products. In order to survive, develop and gain a foothold in the highly competitive market, farmers must look for market opportunities through market research and market segmentation according to the differences of consumers' needs and desires, buying behaviors and buying habits. Only in this way can survival and development have a goal, and profits and benefits can be guaranteed.

From this point of view, market segmentation is a core content of farmers' marketing strategy and a key issue that determines the success or failure of farmers' marketing. In recent years, many producers of agricultural products start with market segmentation, tap the potential of agricultural products market expansion, "divide and disintegrate" consumer groups, and create and develop new agricultural products markets in the "reconstruction" and "rebirth" of new consumer groups. Only by carrying out professional division of labor according to the principle of market segmentation can we effectively enter the market. This is the general trend of developing agriculture after China's entry into WTO, and it is also the only way to increase farmers' income.

Market segmentation of agricultural products is an effective measure for agricultural development and farmers to get rich.

Market segmentation of agricultural products is helpful to find that the market opportunities in marketing opportunities are the unmet needs that have appeared in the market. Using the method of market segmentation, farmers can not only find their own favorable target market and launch corresponding products, but also constantly improve old products, develop new products and open up new markets according to the changes in the target market. Some farmers in the north sell the yolk and albumen of eggs separately and take them apart to make a big market. Consumers who love egg yolk buy egg yolk, and consumers who love egg white buy egg white, each with his own love and needs. Consumers have benefited, and sellers have made money that they could not make before.

Market segmentation of agricultural products can effectively formulate the optimal marketing strategy. Market segmentation is the premise of the application of marketing mix strategy. That is to say, if the producers and operators of agricultural products want to implement the marketing mix strategy, they must first subdivide the market and determine the target market. Because any optimized marketing mix strategy is formulated for the target market to enter. Leaving the target market, we made a marketing strategy without goals. Such a marketing plan is not feasible, let alone optimized. For example, in recent years, China's apple production has been bumper year after year, the market is relatively saturated, the market sales are not smooth, the price has fallen, and fruit farmers are at a loss. However, in this case, apples from Washington, USA landed in Beijing, Shanghai, Guangzhou and other cities, and occupied the apple market in China under a strong propaganda offensive. Analyzing the reasons for its success, apart from a full understanding of the marketing environment, an optimized marketing mix strategy and a mature marketing strategy operation mechanism, correct market segmentation and target market selection have played a very important role.

Market segmentation of agricultural products is beneficial for farmers to make full use of their strengths and avoid their weaknesses. The management ability of each farmer is extremely limited for the whole market. Therefore, farmers must subdivide the whole market, determine their own target market and concentrate their advantages in the target market. Otherwise, farmers will lose their advantages and thus fail in the fierce market competition.

Market segmentation of agricultural products is conducive to the development of new products to meet the diversified needs of consumers. When many producers carry out market segmentation strategy, those unsatisfied consumer needs will become market opportunities for different producers one by one, new products will emerge one after another, the types, colors and varieties of products on the market will increase, and people's quality of life will be improved accordingly.

Correct selection of target market in market segmentation

Choosing the target market is a problem that farmers should pay close attention to when they enter the market. The target market is a kind of consumers that operators hope to tap and occupy, and these consumers have roughly similar needs. By choosing consumers with different needs, find those consumers whose needs are not met or not, and then dig and occupy them according to their own production capacity, management capacity and sales capacity. An ideal target market must have three basic conditions: first, it must have enough sales, that is, it must have unsatisfied real demand and potential demand. This problem is not a big problem for ordinary small farmers, but it is very important for large agricultural producers. Second, operators must be able to meet this market demand. Third, this market must have a competitive advantage, that is, there is no or little competition, or there is competition but not fierce, and operators have enough strength to beat competitors. You can choose such a market as your target market. Determining the target market, also known as market positioning, is a decision-making activity for farmers to choose a certain market segment as their marketing target. Selecting the target market generally includes three steps:

Estimate the demand of the target market

The demand of the target market refers to the total amount of a product purchased by a certain type of consumers in a given market environment. This change in market demand depends on consumers' preference for a product, purchasing power and marketing efforts of operators. If a product is really loved by consumers, the purchasing power of consumers is constantly improving, and the marketing strategy of operators is correct, it is possible to increase demand. When estimating the target market demand, it is necessary to estimate both the actual purchase volume and the potential increased purchase volume, so as to calculate the maximum market demand. Farmers should decide whether to choose this market as the target market according to their own maximum market demand.

We should carefully analyze our competitive advantage.

There may be many kinds of market competition, such as brand, quality, price, service mode and interpersonal relationship. But in general, it can be divided into two basic types: one is cheaper than competitors under the same conditions; The first is to provide services that meet the special needs of consumers, thus offsetting the adverse effects of high prices. In comparison with similar competitors in the market, farmers analyze their own strengths and weaknesses, try their best to foster strengths and avoid weaknesses, or learn from each other's strengths, so as to surpass competitors and occupy the target market.

Choose market positioning strategy

This means that farmers should determine the competition principle according to the situation of each target market and their own conditions in their production and business activities. Generally, it can be divided into three types: the first is the "tit-for-tat" positioning, that is, the operating products are set in a similar position to competitors and compete with competitors for the same market segment. For example, some farmers choose what others do in the market. The implementation of this positioning strategy requires operators to have advantages in resources, product cost and quality, otherwise they may fail in the competition. The second is "fill in the blank" positioning, that is, farmers do not imitate the business direction of others, but look for new business projects that are not occupied by others but valued by consumers, and adopt the strategy of filling the market vacancy. For example, some farmers find that large enterprises have advantages in broiler sales, so they choose to operate and raise "farm chickens" and slaughter live chickens on the spot to fill the "blank" that large enterprises cannot operate. The third is the positioning of "finding another way", that is, when operators realize that they are unable to compete with powerful competitors in the same industry, they can choose their relative advantages to compete according to their own conditions. For example, some farmers who manage vegetables, lacking the batch and funds to enter the supermarket and the transportation capacity, use regional fairs, or contact enterprises and catering units, or even walk around the streets to avoid the competition in the big market and sell vegetables to consumers who can't often buy them in the market.

Choosing the target market of agricultural products must get out of the misunderstanding of "fallacy of composition"

The meaning of majority fallacy

The purpose of choosing the target market is to make the products marketable. The problem is: especially the marketable market will definitely become the ideal target market for enterprises. If there are many fallacies, farmers will not be able to achieve the expected marketing goals, and may also lead to setbacks and failures. Most fallacies mean that too many farmers regard the same market segment as their own target market, resulting in the supply of a certain product far exceeding the market demand. In this case, these farmers are engaged in the same product, in fact, they are competing for a limited consumer group of the same product. As a result, social labor and resources are wasted, and other market demands that can be met are not met, which greatly increases the opportunity cost of farmers, affects their economic benefits, and even causes farmers' marketing failure. In real economic life, most fallacies often occur.

Cause analysis of most fallacies

From the practice of farmers' marketing, the reasons for most fallacies are:

First, farmers take the market with the largest market capacity and the greatest profit potential as the target market. Many farmers only pay attention to market demand potential and attractive profits. I believe that as long as there is market demand, attention is paid to product quality, the price is reasonable, and the promotion work is added, the sales volume will be expanded, the market share will be improved, and the maximum profit will be obtained. As a result, there are too many competitors, resulting in synchronous vibration and losses.

Second, business operators are eager for quick success and instant benefit in guiding ideology, and only consider the current interests of farmers, so it is easy to avoid the important and neglect the important, but they can't see the long-term interests, which makes their operations in trouble. In this case, farmers take the most accessible market as the target market. Some farmers see that some agricultural products sell well, with little investment, quick results and easy access to the market, so they increase their investment impulse. If a family makes a fortune by planting fruit seedlings, it will be planted in every household, village and town, and finally it can only be used as firewood. Similar cases are too numerous to mention. What's more, many farmers are still doing the same thing.

Third, I can't resist the temptation of the external market. Market segmentation, to determine the target consumer groups, can only be within their own effective market scope, and never give up their own advantages to pursue the so-called "hot". As the saying goes: "You don't have to learn to grow crops, so people do what they do." This is a kind of blind obedience. It is under the guidance of this habitual thinking that many farmers are eager for quick success and instant benefit, blindly developing, squeezing the same way of making money when they see others making money, consciously or unconsciously expanding the planting area of similar agricultural products, and as a result, no one can make money. This kind of "fallacy of composition" has become commonplace and suffered greatly.

Fourth, there is a lack of detailed understanding of the target market that has been identified. Information is different from unique intelligence. It is indeed a valuable resource, but it has resources. When you learn from the media that a certain commodity in a certain place is in short supply and the price is high, you will collide with many farmers who have learned the same information from all directions and taken unified measures in the market, and the shortage will become surplus, and the beautiful goods snapped up will suddenly become unsalable. It is hard to call it market failure, but it can be called market allergy.

Fifth, the changes in the target market are not grasped enough. The variables of market segmentation are constantly changing with the change of social environment. We can't treat the changing market with the concept of fixed inconvenience, but should adjust the marketing strategy in time by adapting to changes and analyzing specific problems.

Market segmentation is a complex problem, not simply what to plant and what to raise, but also involves many factors such as capital, market, talents and technology. Therefore, market segmentation must be carried out in a planned and step-by-step manner through comprehensive consideration, scientific demonstration and overall planning of various factors. Objectively speaking, it is difficult to completely avoid most fallacies in the production of commodity economy. The problem is to control most fallacies to the smallest extent possible and minimize the losses caused by them.

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