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Veteran Advisor

What Are Your Marketing Objectives?

I see a list of some marketing objectives:

 

Highest Price

Long Term Profitability

Cover Expenses

 

Funny, they don't include minimize losses. I'd have thought after the work of Kahneman and Tversky that minimizing losses would be a factor, but maybe it's not.

 

You can look at these objectives differently. 

 

Highest Price can be each load sold - kind of fits the greed emotion we see talked about and can be a short run, day-to-day method that maybe many of us use.

 

Long Term Profitability seems to focus on a more objective, solid-thinking way of marketing without so much emotion.

 

Cover Expenses appears to me to be something dreamed up by bookkeepers and doesn't seem to me to be a way to get ahead in either the short or the long run.  If cover expenses means include a profit, then it's the big industrial model and may work in some industries but in a commodity seems hard.

 

Kahneman and Tversky developed the famous study that showed that people tend to play it safe when they're ahead and take big risks when they're losing.  Is that how we are?  Do we sell too early on a bounce and hold too long when prices go down?  I tend to sell to early but I don't think I hold too long.

 

Do you even have any market objectives in the sense being talked about here?

 

 

 

 

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5 Replies
Senior Contributor

Re: What Are Your Marketing Objectives?

Stealing from the poor should be talked about as an alternative. Crooks
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Honored Advisor

Re: What Are Your Marketing Objectives?

The battle for proper verbage goes on...

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Highlighted
Honored Advisor

Re: What Are Your Marketing Objectives?

Todays marketing plan is to read the markets vibes......... stop planting corn and plant oats    corn is down again and oats are up 2.75   Go for it Iowa....

 

Stop looking like a runway model in a bikini every time usda flies over ...............

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Frequent Contributor

Re: What Are Your Marketing Objectives?

SW, Cast your gaze a bit farther north and you may find a few producers seriously eyeing that plan.  Soybeans really like small grains in the rotation.

 

To the original question: Long term profitability

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Veteran Advisor

Re: What Are Your Marketing Objectives?

The crystal ball gazers prophecy that agriculture will go from being supply driven, that is, we plant what we think we can sell, to demand driven, that is, we plant what someone wants us to plant.  If so, that would dramatically change marketing, I'm not sure for the better.

 

As it is now, my plan is maximize income.  I market pre-planting by selling futures anytime from now to June for the 2018 crop and I sell cash grain, sometimes with future contracts, anytime from now to June for the 2017 crop and anytime from now to June 2019 for the 2018 crop.  Most of my cash sales are made in the spring for Jan delivery.  Sometimes this plan even works.

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