Page 139 - DMGT509_RURAL MARKETING

Rural Marketing

Notes “We are a good North American nitrogen company,” he said, adding that a lot of its
growth has also stemmed from sales of nitrogen outside North America.
“With our ESN (ESN Smart Nitrogen, a patented coated fertilizer) business, with our
potash expansion and with our retail expansions and with speciality expansions, the
business is going to continue to grow.”

Agrium is one of North America’s biggest fertilizer companies, with operations in Canada,
the United States and South America.
Last month, it posted record annual profits of $283 million US and nearly $3.3 billion in
sales, crediting revenue and profit growth in its existing retail, seed, chemicals and fertilizer
businesses.

Saskatoon-based Potash Corp. has 5,000 employees in five countries around the world and
accounts for one-quarter of the global production capacity for potash. It produces three
nutrients, potash, nitrogen and phosphate products, but its biggest focus and profits are on
potash.
Question
What lessons can the Indian fertilizer industry learn to help Indian agriculture grow
rapidly for Indian needs and for exports as well?

7.5 Summary

 Market segmentation involves grouping your various customers into segments that have
common needs or will respond similarly to a marketing action.

 Positioning is developing a product and brand image in the minds of consumers.
 Effective positioning involves a good understanding of competing products and the benefits
that are sought by your target market.

 Effective market segmentation takes effort.
 Market segmentation is a process through which businesses identify if different market
groups seem to be good ventures.
 An interesting aspect of the project is that instead of ending with just presenting this
research, great value has been added through several interesting features.

7.6 Keywords

Accessible: The segment should be reachable and serviceable. It should be accessible through
existing marketing institutions, such as distribution channels, advertising media and sales force.
There should be middlemen to distribute the products.
Concentrated Targeting: This approach focuses on selecting a particular market niche on which
marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate
on understanding the needs and wants of that particular market intimately.
Demographics: It focuses on the characteristics of the customer. For example age, gender, income
bracket, education, job and cultural background.
Psychographics: It refers to the customer group’s lifestyle. For example, their social class, lifestyle,
personality, opinions, and attitudes.
Substantial: The segment should be substantial. It should be large enough in terms of customers
and profit potential. IT should justify the costs of developing a separate marketing mix.

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