What Constitutes good marketing?
I believe a good marketing plan should establish guidelines and objectives for the following:
- The product mix—corn, beans, wheat, or cotton.
- What planting and harvest date to optimize insurance or cash prices.
- When to set the flat price of the products produced.
- When to lock up basis.
- How much to store and for how long
- When should contracts be rolled or simply priced out because of spread relationships.
- How much cash flow exposure to accept in a marketing program.
- Process of how goals will be met when mistakes are made in assumptions.
- Drop dead dates when minor adjustments in strategy are required if target objectives are not reached.
Remember, in the development of any marketing plan one should have a firm grasp of the underlying direction of the fundamentals (bullish or bearish) and the expected intensity (range of move). We like to say it is the fundamentals that determine the long-term direction of the market while the technical actions are the stop and go signs along the way indicating when to sell and when to defend a position.
More on Thursday.
For those of you who are just beginning or just want to refresh yourselves with marketing terms, ideas, and strategies, on Tuesdays and Thursdays we will have articles regarding terminology and marketing. If you have ideas, email me at [email protected].
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