Basic Concepts of Agricultural Marketing - Copy - Copy

7/29/2019 Basic Concepts of Agricultural Marketing - Copy - Copy

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ADAM SMITH

Consumption is the sole end purpose

of all production: the interest of the

producer ought to be attended only so

far as it may necessary for promotingthat of consumer.


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DIXIE (1989)

Marketing is the series of

services involved in moving a

product or commodity from the

point of production to the point

of consumption.


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GAEDEKE AND TOOTELIAN

Marketing A management

orientation focusing all the activities

of the organization on satisfying

customer needs and wants, there byhelping achieve organizations long

range objectives.


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SELLING CONCEPT

Demand for a product is

equal to supply.

Emphasis is needed to sellthe product to increase

profit.(promotion)


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MARKETING CONCEPT

Supply of the product is greater than

demand, creating intense competition

among suppliers.

Identify wants and needs and match these

to organizational resouces.


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Wholesalers

Government

specialty stores

Consumers

Grocery stores

Exports Restaurant


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INPUT SUPLIER

Suppliers of all input should be identified

before the production of any product.

Done during the purchase of agricultural lotand/or construction of building to prevent

disruption during the production.


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Production agriculture

Production of crops or animal based product commence.

All production standards Are set by the owner, farm

manager, and consultants and are relayed to the farm

workers and concerned individual for reference purpose


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Assemblers/brokers

They gather all the goods produced by every

farmer within the area. Some get goods

outside the country to complete the needed

volume required.


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The marketing system

The marketing system is

composed of six major

components or subsystems.


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a. Producer subsystem

Consist of the initiators of

production who may be small

farmers or corporate farms


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b. Channel subsystem

Consist of market participants or

intermediaries who are directly

responsible for making the

farmers product available toend users at type right time,

place and form


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c. Flow subsystem

Facilitates products financial and

information flows. Information

consists of product trends,

grading, standardization andprices


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e. Consumer subsystem

Refers to the final reposition of

the products produced by the

farmers.


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f. Environmental subsystem

Includes the climatic/physical,

socio-cultural, economic,

technological, legal/political factors

affecting marketing system.


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Conflict of interest in agricultural

marketing.

Key players InterestFarmers Maximum price, unlimited

quantities

Manufacturers Low purchase price, high quality

Traders and retailers Low purchase price, high quality

Consumers Low purchase price, high quality


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Important terminologies

Service- activity performed to alter the form, time, place

possession characteristics of the product.

Production service- services added prior to production.

Marketing services-services added after production.


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Point of production

The point of usual first sale by the

farmer.(at farm or home)


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market

A group of buyer and sellers with

facilities for trading.


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Utilities in marketing


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utility

The satisfaction, value, or

usefulness of the product.


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Form utility

- when someone makes something, they

assemble a product from parts and you can

use it


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For example, the form, when

applied to a clothing item, can be

the shape of the garment and the

range of sizes and the selection of

fabric.


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In agriculture,

The packers who slaughter

hog and cut them to pork

carcases add form utility


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Place utility

The utility of place refers to having theproduct exist in a location that is easily

accessible to the buyer at the moment

in time when their payment transaction

is concluded.


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example

If you are selling products in a huge warehousestyle store, the utility of "place utility" can be as

simple as having the product in boxes ready to be

picked up and the customer can simply walk

directly to the cashier to make payment.


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in agriculture,

The moving of hogs from

Mindanao to Luzon.


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Time utility

Goods are made available when they

most wanted.


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Example

The seven eleven conveniencestore

Meat wholesalers who freeze

some pork products for later use.


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Possession utility

letting the customer have the

product, usually after they pay, they

can "possess" it and hold it,

transport it etc


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example

When someone buys something from a

vendor, essentially, it is a "transfer of

ownership


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Image utility

The satisfaction accuired from

emotional or psychological

meaning attached to product.


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example

Some people pay more fororganic foods because it is

perceived to be more

nutritious.

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