The Ag Equipment Industry in the 21st Century.

#2 in Series

Meet Rocky, your parts assistant in 2010

Rocky is automated, but he can ask open-ended questions about products or parts, then respond appropriately to customer answers. He can help a customer determine a replacement part, deliver the part, handle the sales transaction, including credit card charge and receipt, and provide installation tips. His attitude can be jovial or matter-of-fact, but he is always courteous and polite.

Today Rocky is available only in a three-dimensional, virtual reality showroom of the future, developed by the Research Triangle Institute (RTI) for John Deere Commercial & Consumer Equipment Division. In the future, the range of Rocky's knowledge will be immeasurable. He will be programmed with information on every John Deere machine and part.

Rocky is just one example of how today's technology can fill real-life needs for dealers, according to Cleo Franklin, manager of parts marketing for John Deere.

"This isn't just the `wave' of the future," Franklin said. "This is the future -- this is what's developing today and what we anticipate seeing in our dealerships in the next few years."

Farmers on the Internet? Maybe.

Although the purpose of a recent survey of large farming operators by Ag Retailer magazine was to evaluate services of ag retailers, the results showed a bigger picture of Internet use. The survey, with 69 percent of respondents reporting total sales of more than $250,000, showed that 66 percent of the respondents have computers and 60 percent have access to the Internet. However, only 41 percent of these computer owners use the Internet to obtain information about products and services, and only 14 percent use the Internet to order products and services. Although 14 percent of the respondents said they never order products or services off the Internet, about 33 percent said they never even use the Internet.

It looks like the Internet already affects the way farmers do some business. Ag Retailer says 21 percent of those surveyed currently purchase inputs directly from manufacturers. That number rises to 27 percent of farmers who have more than 1,500 acres.

Look inside the crystal ball

If you are attending EXPO 2000 in Louisville, July 22-24, you won't want to miss the panel discussion, "Inside the Crystal Ball ... How to Prosper and Thrive in the New Millennium" on Sunday, July 23 at 1:30 p.m. The dialogue with dealers, manufacturers and suppliers will focus on what is needed for all segments of the lawn, garden and power equipment to prosper and grow in these changing times. The session is sponsored by the North American Equipment Dealers Association (NAEDA) and the Outdoor Power Equipment Distributers Association (OPEDA). Admission is free to pre-registered participants. For registration forms, contact Sellers Expositions at 800-558-8767 or 502-562-1962.

B2B marketing -- 10 trends to watch

Business to business (B2B) marketing will take some different directions this year, according to Business Marketing magazine. Here are the predicted trends:

1. Corporate giants will show their clout on the Internet.

2. Global B2B marketing and advertising will target their messages more directly.

3. Partnerships will increase among former competitors in order to share information.

4. Customer relationship management software will be used extensively.

5. Marketing agencies will become strategic partners of the businesses they represent.

6. Simple promotional messages will replace text-heavy, buzzword-laden copy.

7. More mergers, buyouts and closings will result from the competitive business environment.

8. Focus on keeping old customers will be more important than acquiring new customers.

9. Customers will almost exclusively find product and company information on the Web.

10. Marketing on the Internet will replace trade publications for reaching targeted audiences.

Learning from a distance

Enormous growth in distance education is coming, according to Richard Carter of the College of Agriculture at Iowa State University (ISU). He predicted that the college will ultimately have more students off-campus than on. ISU developed the first distance education program leading to a masters degree in agronomy, for which 119 courses were offered for the fall semester last year. In 1997, the number of courses offered was only 76.

Carter said many students will take advantage of learning over the Internet, which will provide off-campus students with degree programs, courses and instructional materials.

Five-steps to an Internet sale?

The five-step process to a purchase, which is rooted in the theory of consumer behavior, can be applied to business-to-business marketing, according to an article in the April 2000 issue of Input/Output. If marketers understand the buyer's behavior at each of the five steps -- need recognition, information search, evaluation of alternatives, purchase and post-purchase evaluation -- then the marketer can better influence or manipulate the purchasing outcome.

Typically, need recognition is sparked by external sources (such as an advertisement, problem or recommendation). The information search usually results in an accumulation of materials about the products being considered. The evaluation of alternatives is completely in the buyer's hands, and its a go or no-go situation. If it is a go, the prospective buyer moves to the purchase state and completes the buy. The final post-purchase evaluation stage determines whether the buyer is satisfied or not.

Not every purchase requires every step. The number of steps involved in a buyer's decision is based on the level of his or her involvement in the purchase. For example, the buyer of a hand tool or machinery part may not go through all the phases. However, the potential buyer of a large ticket item like a tractor will take every step.

Using the five steps in business to business marketing can be very different because of the organizational structure of both entities, including corporate objectives, policies, procedures, additional individuals in the buying procedure and structured evaluation criteria.

How will this five-step purchasing model be adapted to your Internet sales efforts -- consumer or business-to-business? How will you, as a marketer of your product or service, involve and influence the consumer or the business-to-business potential buyer in each step?

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(Editor's note: Throughout 2000, this Implement & Tractor series will explore the changes and issues that will challenge, confront and control the agricultural equipment industry in the 21st century. I&T readers are invited to submit their thoughts about the future they see coming and how those changes and issues will affect their particular segments of the industry. -- Mary Shepherd, 319-277-3599)