Mr. J.A. YOUNG
INTRODUCTION
The development of aquaculture products historically has tended to be dominated by technical innovation in production and a focus upon high unit value species. This has tended to concentrate expanding production within a comparatively limited range of species. Irrespective of the peculiarities of individual situations generally this has resulted in substantive increases in the supply of specialised, but similar, products within comparatively short periods of time. It is not surprising to note that this trend has frequently been followed by a reduction in market prices.
This sequence of events is of paramount importance to aquaculture producers since it is usually upon these formerly high price levels that the viability of the project rested. But having invested in specialised production falling market prices may be preferable to the costs of industry exit. Indeed often the individual producer will attempt to redress the shortfall in revenue by increasing production further still. This of course, only tends to worsen the situation in the longer term since all producers will tend to adopt the same strategy and so further expand market supply. The tendency of aquaculture projects to experience this cycle, which has many historic parallels in agricultural crop cycle, suggests the need to attempt to the more proactive in their monitoring of the market. Analysing trends within the market should enable the adoption of production strategies more consistent with the changes in customer wants and particular to guide new developments.
The reluctance of aquaculture organisation to embrace a more orientated approach may be explained by a number of reasons. Many opine that their limited finances cannot stretch to developing marketing programmes; that marketing is the exclusive preserve of larger concerns; that they have no marketing skills or training. Others still view themselves de facto to be in the market for fish and as such, they are incapable of differentiating their output from other producers.
Producers of cultured products, just like those from the capture sector, need to recognise that they are but one part of the wider food market which functions to satisfy an increasing diverse array of food consumer wants. It is increasingly evident that producers who do not embrace the challenges of marketing must also incur the greater risk of failure. To illustrate the folly of accepting this greater risk the remainder of this paper identifies some of the initial marketing actions which may be taken. It is argued that the returns from their adoption easily outweigh the risks of their rejection.
THE MARKETING CONCEPT
Each and every day individuals and organisations buy and sell products and services; this act may be said to be an exchange process. Marketing is the discipline dedicated to ensure that when individuals and organisations enter into the exchange process both parties experience mutual gain. The buyer is satisfied with their purchase, just as the seller is pleased to have sold. In order words each feels that, having entered into the exchange, they are better off. This may be considered as the principle : you win, I win. But in order to create this situation sellers first need to identify what will give buyers value and satisfaction so that appropriate products can be made for sale. This requires that market research be undertaken.
Market research needs to be done all the time because what gives consumer value satisfaction one day may not do so the next. Peoples' tastes are constanly changing, therefore there is a need to monitor these events as they occur. By doing so, plans may be made to ensure that the appropriate products continue to be offered for sale, and that research and development takes heed of emergent trends.
Having researched the market and invested in making the products, seller will be keen to ensure that potential buyers are aware of the existence and the particular features of their products. To do this sellers must communicate with the prospective customers, and may chose a variety of techniques to do so. Advertising, sale promotion, personal selling and publicity may all be used in particular situations depending upon the characteristics of the product and the market.
These processes take place all the time, and on many occasions without us realising or at least noting their existence. This constant process of exchange and information flows within the market may be represented as a simple marketing system as is shown in Figure 1 below.
Figure 1: The Simple Marketing System
It will be appreciated that Figure 1 is a simplified conceptual view of what happens in practice. Rather than there being just the one exchange as illustrated above, the flows shown will tend to be more complex and involve a number of intermediaries. It should be noted however that each of these intermediaries may also perform functions which are vital to ensuring that the consumers gets full value and satisfaction.
For example, a wholesaler may buy products from 100 different producers. The wholesaler's customers, who may be retailers selling on to final consumers through a further process of exchange, can obtain a wide range of products without having to deal individually with each of the 100 producers. To visit each of the producers would use up the retailer's time. It is thus to his advantage to pay a margin, or mark-up, to the wholesaler for his service. These functions within the marketing chain are often mistaken as pure profiteering without anything being added; a more objective analysis requires that the function and any values added there in are identified before forming an opinion as to their worth.
THE APPLICATION OF THE MARKETING CONCEPT
Whilst all fish producers, by definition, play some part in the simple marketing system, many do so only passively. However it is a relatively simple step for producers to become more involve in the collection and communication of market information. For example it may be that consumers are willing to pay a price premium for fish of a given size or presented in a particular way. Through the process of gathering market information, producers can adapt their production, harvesting and handling actions accordingly. In addition, farmers producing fish more to the liking of consumers should find that their product will be preferred to that available from elsewhere. In other words the marketing orientated producers may start to differentiate their product. This differentiation may start to be communicated throughout the market, most probably by word of mouth.
When you consider your own individual food purchasing decisions at local markets, you'll probably recognise that this sort of process exists. The marketing concept simply tries to ensure that the producer becomes or alert to this process can be generated through market research.
MARKET RESEARCH
Two broad types of data are commonly used in marketing research. Somewhat confusingly, the first type of data that should be looked at is known as secondary data.
SECONDARY DATA
Secondary data refers to data which already is published by other sources such as official government publications and extends to include newspapers and other more specific trade publications. Secondary data should always be investigated before anything else as it is likely to be the most readily available and because it is comparatively cheap. The price advantage stems from the simple reason that its costs have been spread over a larger number of end users.
The range of sources of secondary data is extremely widespread. Tyypically it might extend from data available in international publications, such as the annual FAO yearbook of Fisheries Statistics, Infofish and suchlike through to more localised government, trade organisations and other media sources. Public libraries, and obviously those attached to educational institutions often have a rich seam of data which can be accessed at only the cost of time. Give the potential changes within markets it is desirable to monitor the fish and food markets regularly. Any relevant market information should be stored to enable later analysis.
Whilst this process of secondary data collection may provide more insight to the market than exists at present, it will not provide a complete solution to the needs for marketing data. In many situations producers may want to take their line of enquiry to a further, more detailed stage that offorded from scondary sources. In other instances, for example, a new fish species, comparatively limited data may exist. To compensate for the areas not covered by the secondary data, primary data will to be gathered.
PRIMARY DATA
Primary data refers to the information which is specific to the research investigation being undertaken. Having identified the broader parameters of the market there will usually remain a number of questions; for example about the more specific charactersistics of the consumer and the market. There are potentially many factors that are of interest and many different variables could be researched. However because of time and financial constraints it is necessary, and common practice, to limit collection to only those which are most important to the study.
Price is frequently regarded to be the most important variable since it represents the monetary value placed upon fish at different points of exchange within the marketing system. Price is often the signal best remembered by consumers. Price observations may cover a wide range of species, not all of which may be grown by those observing. This is because such fish, like some other foods, will represent a potential substitute product with which your production must complete. Research may thus focus, not only upon the absolute market value of fish but also perceptions of relative value.
Primary data will commonly be sought about price variation with other phenomena such as species size, quality, mode of presentation etc. The importance of such additional information cannot be stressed enough, especially in identifying emergent trends. In most cases trends within the market begin only gradually and build momentum later. It is therefore important to attempt to be aware of, and possibly participate in, any new developments within the market. It is to the individual's advantage to be as proactive as possible to these changes rather than simply responding once events have happened.
DATA COLLECTION
Many factors may influence the quality of data collected. Within the constraints of this paper it is impossible to list all the considerations. However a number may be identified to be of particular importance.
Questionnaires and their Design
In market research questionnaires are frequently employed to obtain primary data. Questionnaires are often used on a face-to-face basis, rather than by options such as telephone or post, because in this way they can provide more detailed information. However it should be noted that other techniques, including experimentation and observation, may be more applicable in some circumstances.
Questionnaires seem to be comparatively easy to design, but experience shows that there are many factors which can result in poor quality data being gathered. Their construction requires considerable thought as to the objectives of the investigation. It must be remembered that all research projects carry their own constraints in respect of finance, labour and feasibility. There are always likely to be questions which it would be nice to know the answer to, but in practice these often cannot be included.
The questionnaire should therefore aim to collect only that data which is essential to the enquiry in hand. Over-ambitious surveys run a higher risk of failure as the chances are that respondents will lose interest and fail to complete the questionnaire; often before the vital questions are asked. A good rule is therefore to constantly ask whether the project really needs to know the piece of information being sought. If it doesn't then don't ask for it.
Questionnaires may consist of a number of pre-determined questions with the wording the possible answers planned in advance. This type, known as structured questionnaires, are often used in large consumer surveys. At the other extreme the questions may simply be generated by the interviewer during the interview. A “research guide” or “topic list” may be employed simply as an aide-memoir. This method tends to be used less frequently. But in situations where expert in particular subject are being interviewed, such as interviews within the trade, it does provide a better means of collecting detailed information.
Questionnaires may contain “closed” or “open” questions. Closed questions require an answer from a number of specified alternatives. For example, the question “Do you cat fish?” may offer the answers “yes, no or (less likely) don't know”. Analysis of a predetermined set of responses is easier, but there may be a risk of leading the respondent. Certainly there are times when we want the respondent to answer in their own words. Often this is so that more detailed information can be obtained. Such questions are said to be open. For example, “What species of fish do you buy?”.
In practice questionnaires will have a combination of both open and closed questions. This technique of combining different types of question is commonly used as it often provides the means of getting better data. Importantly, it also makes the interview more interesting for the respondent which increases the likelihood of them completing the questionnaire.
Once the possible format of the questionnaire has been decided it is then very important that it is tested, or “piloted”, on a sample of the population to be targeted. Often, it will be necessary to revise the questionnaire structure and the questions it contains a number of times. This is because it is difficult to anticipate how different people might respond to questions asked. No matter how frustrating this may seem, it must be remembered that there is little point in using a questionnaire which will not generate the data required.
Interviewing Techniques
Once the problems of designing the questionnaire have been solved, the quality of the data obtained might also be improved through interview skills.
Conducting interviews becomes easier with practice, but there are some guidelines which should assist the process. Once the prospective respondent is identified the interviewer should approach the intended subject in a manner which is not threatening. Adopting an authoritarian posture, (“tell me or else!”), may get some information, but whether it is accurate is another matter altogether. There are many aspects to the “body language” appropriate to individual situations and these will vary between and within different cultural environments. A general rule is that the interviewer should try to blend in with the respondent's situation and accepted practices as far as is reasonable.
The interview should begin with a polite introduction which introduces the interviewer and their organisation (official identification may be appropriate), the purpose of the investigation, gives any necessary assurances, explains why the respondent has been selected and an estimate of the expected time. This is best done with a prepared form of words. In some cases it may be necessary to arrange another time for the interview. Never force someone to give an interview: they are liable to stop part way through or give wrong information.
Once the respondent has agreed, the interview should be conducted in an efficient and effective manner. This demands that the interviewer fully understands the questions and knows what and when to ask. An interview which rambles on the never gets to the point is not going to give good quality information.
It is also very important that the respondent is given the opportunity to think about their own answer. Any temptation to lead the respondents answers or thinking must be resisted. To ensure that this is done, the questions should be phrased so that they are clear, are not likely to mean something else and that the words used are readily understood.
To achieve a good standard of interview it is useful to practice first with colleagues, then on a sample of the population before beginning collection for real. In an attempt to ensure that at least the above points are observed, some system of quality control checks should be in place. This will be easier if individual questionnaires record the interviewer, place, date and other information to identify the data collection.
Finally, once the questionnaire has been complete the interview should end with thanks for time spent and any arrangements for any follow-up exercise. In the case of the fish market survey it is important to develop a good relationship with the respondents. But at the same time you must ensure that the relationship remains professional and that the objectives of the research remain foremost.
CONCLUSIONS
It may thus seen that there are a number of comparatively simple steps which may be undertaken by producers to improve their marketing actions. As was identified these may be done on an individual basis, but clearly these are significant opportunities for different forms of co-operation. This is all the more so when individuals may wish to explore the potentially high risk options of new markets. And once the data has been collected it is important to ensure that it is not allowed to ossify. To realise its full potential marketing data must be used to drive a set ongoing actions.
