MARKETING INSTITUTIONS

ARNAB BASUIII rd Semester

Roll Number- 04

1. Elucidate the institutional structure &their role in fisheries marketing.(Nov 2006)

2. Advantages of cooperative marketing in fisheries. (Nov 2006 & Nov2010)

3. Critically evaluate the functions of secondary fish marketing institutions in India.(Nov 2008)

4. Regulated markets in Norway & India .(Nov 2008)5. Co-operative in fish marketing.(Nov 2008)6. Primary fish marketing Institution.(Nov 2008)7. Discuss the role of different marketing institutions in

facilitating trade in fish & fishery products in India.(Nov 2009)8. Explain the concept of regulated markets & describe the

significance of marketing of fish through co-operative.(Nov 2009)

9. Role of middlemen in fish marketing.(Nov 2009)

SIF -2307 ECONOMICS OF FISH MARKETING

WHAT IS MARKET?

According to Robert Dorfman, a market is, a group of people and firm who are in contact with one another for the purpose of buying and selling some commodity. It is not necessary that every member of the market is in contact with every one else; the contacts may be indirect.

• Marketing institutions play an important role in this buying or selling of commodity in the market.

• Actually the following process is doing by Marketing institutions, i.e.,

PRODUCER

CUSTOMER

MARKETMARKETING INSTITUTION

WHAT IS MARKETING INSTITUTION?

According to dictionary definition of an institution is “ESTABLISHMENT” or “BUILDINGS” .

But from the point of view of our use the term refers to “all of the peoples, buildings and facilities which are actually carry on the work of marketing”.

CLASSIFICATION OF MARKETING INSTITUTION

MARKETING INSTITUTION

PRIMARY MARKETIG

INSTITUTION

PRODUCER FISHERMEN

FISH MARKETING COOPERATIVES

FISHERIES COOPERATION

SECONDARY MARKETING INSTITUTION

MERCHANT MIDDLEMEN

AGENT MIDDLEMEN

A. BROKERS B. COMMISSION

AGENTS

A. WHOLE SALER B. RETAILERS

SPECULATIVE MIDDLEMEN

OTHER INSTITUTION

DIFFERENT FINANCIAL

INSTITUTION – i.e. 1.BANKS

2.INSURANCE COMPANIES,

3.MARKET INTELLIGENCE,

4.TRANSPORTATION FACILITIES, 5.INFRASTRUCTURAL FACILITIES

etc.

A) PRIMARY MARKETING INSTITUTIONS:-

Primary marketing institutions are those institutions which are represent and promote the interest to the primary producer.

It is three type – i)Producer fishermen ii) Fish marketing co-operatives iii) Fisheries corporations

B) SECONDARY MARKETING INSTITUTIONS :-Secondary marketing institutions are those which represent and

promotes their own interest – MIDDLEMEN (JOBBERS/ DISTRIBUTERS/ DEALERS etc.).

In this institutional approach to marketing gives primary emphasis to people and business organization.

Different types of middlemen are present which are giving below:-

1. Merchant middlemen:- Characteristics:- • They are take the title of the goods.• They are take financial risk.• They own the product and handle.• They buy a product, performs functions on that & add utility to it

and sale for profit.• Try to cover the costs of the functions he performs.

Merchant Middlemen

Retailers Wholesalers

1.a. Retailers:- Characteristics:-

• It is a market agency.• Closer to the customer.• They buy commodities from wholesalers & deals in small

quantities.• Most numerous marketing agencies.

1.b. Wholesalers:- Characteristics:-

• The number of wholesalers less than number of retailers in the market.

• They buy commodities from producers.• They sale commodities to retailers.• They generally deals with large volumes of goods - bulk.• Generally not closer to the consumer.• The wholesaler performs fewer functions, then the retailers

able to doing their job.• Considered to be the master of fish market.

2. Agent middlemen:- Characteristics:-

• They act as a representatives for their commodity.• They do not take the title of the product.• Their income is generated by fees & charges in exchange for

service.• Principle function of the agent middlemen is providing market

information (in which they become specialist).• Those agents engage in negotiations that, transfer the title of

producer from seller to buyer after successfully accomplish this task.

Agent Middlemen

Brokers Commission agent

2.a. Brokers:- Characteristics:-

• They perform the duty of bringing the buyers & sellers together – negotiating favorable terms of exchange.

• Represent either side of a sale- usually represent the seller.• Help the buyer or seller to get the different marketing

information which help to bargain effectively – against fee. • Fee based on the amount of sales.

2.b.Commission agents:- Characteristics:-

• They are more reliable than brokers.• His job is to sell the product at the best possible price, with no

obligation to the owner.• They collect on the sale of the product deduct their expenses &

remit the balance to the seller.

DIFFERENCE BETWEEN BROKERS AND COMMISSION AGENT

SUBJECT COMMISSION AGENTS

BROKERS

Degree of freedom enjoy in determining the price in the market

More free as they can determine the price by considering the supply & demand of the day – Do n’t consult for the willingness of the buyer and seller regarding price.

Less free as they can determine the price by considering the supply & demand of the day – They consult for the willingness of the buyer and seller regarding price.

3. Speculative middlemen:- Characteristics:-

• Speculative middlemen –important for efficient marketing system.

• Actual role is minimizing the market condition fluctuation and stabilized it.

• Anticipate future price change & predominant role in setting the limits of market price – try to make profit from it.

• They enter to the contact with both sellers and buyers and realized the profit for them selves.

• They deal mostly in the futures condition rather then physical goods and most often attempt to earn profit from short run fluctuations.

So, A Speculative middlemen is one who seen the market price risk and willing to accepting them in the hope that the price will move in a direction that will afford him profit.

C) OTHERS MARKETING INSTITUTIONS:-

• There are few organizations are present who do not take part directly in marketing activities, but it is important for marketing. Those are consider as a others marketing institutions.

• Among those important facilitative organizations are :-Different financial institution (like banks, insurance companies etc.), transporting facilities (like railway, shipping, airway, truck, car etc.), promotional agencies, marketing research agencies, warehouse etc.

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