AGRICULTURAL

MARKETING
GROUP 6
 AGRICULTURAL MARKETING

Agricultural marketing is a process which starts with a

decision to product a saleable farm commodity, involves all
the aspects of market structure or system, both financial
and institutional, based on technical and economic
considerations, and includes pre and post-harvest
operations, assembling,grading storage.
Basic consepts of marketing
• Production- focus is on producing large amounts of a product with
this marketing consept. It also focuses on the product being
readily available to the customer at a low cost.
• Product- In this consept, the emphasis is on updating and
improving the quality of the product. These actions , along wuth
providing features that are useful and appeal strongly to
customers, allow for the product to be offered at a higher price.
• Selling- This consept relies on the strong persuation or even
agrressive selling to convince as many customers as possible to
buy.
• Marketing- This consept focuses on the needs and desires of the
customer. The goal is to deliver a high value product that satifies
the customers.
• Societal- This consept differs from the others . The aim is not only
profits,but also social responsibility.

APPROACHES TO THE STUDY OF AGRICULTURAL MARKETING

COMMODITY APPROACH
1.Studying the commodity approach
2. Product oriented than marketing functions orriented
3. Study may cover the characteristics of the product, market demand and
supply situation, prices, consumer preferences, market potential of new
products, etc.
INSTITUTIONAL APPROACH
1.Studying the various agencies and business structures involved in the
marketing processes
2. Attempts to answer the question “who”
3. Consider the nature and character of the various middlemen and
related agencies, also the arrangement and organization of the
marketing machinery.

TYPES OF MIDDLEMEN
1. MERCHANT MIDDLEMEN- take the title to and therefore own the
products they handle buy and sell for thier own gain.
A Contact buyers
B. Gain millers
C. Wholesalers
D. Assembly wholesaler or viajeros
E. Financer wholesaler or bodegeros/cuartejera
F. Shippers
G.Wholesalers-retailer
H. Retailer

2. AGENT MIDDLEMEN- acts as representative of thier

clients do not take title to and therefore do not own the
products they handle; income is in the form of fees and
commission.
• Commission agent- normally take over the physical
handling of the product; arranges for the terms of sale,
collection, deducts his fees and remits the balance to the
principal.
• Broker- Ussually does not have physical control of the
product; ordinarily follows the instructions of his principal
closely and has less discretionary power in price
negotiations than the commision agent.

3.PROCESSORS AND MANUFACTURERS

4. FACILITATIVE ORGANIZATIONS
5. MARKET ASSOCIATIONS

FUNCTIONAL APPROACH
* Attemps to answer “what” in the query “who does what?”
* Marketing function- a major specialized activity performed in
accomplishing the marketing process.

TYPES OF MARKETING FUNCTIONS

1. Exchange function
2. Physical function
3. Facilitating function
USES OF THE FUNCTIONAL APPROACH

* Consider the jobs

* Helpful in evaluating marketing costs of various middlemen
* Useful in understanding the difference in marketing
machinery by breaking down a complex marketing task into its
component function.

INDUSTRIAL ORGANIZATION OR MARKET STRUCTURE,

CONDUCT, PERFORMANCE APPROACH
• Considers the job that must be done
• Helpful in evaluating marketing costs of various
middlemen.

MARKET STRUCTURE- how market is orgnized based on

the characteristics that determine the relationships among
the various selles in the market, among the various buyers
in the market and between sellers and buyers in the market.

CLASSIFICATION OF MARKET STRUCTURE

a. Purely competitive market- number of buyers and
sellers is sufficiency large so that the no individual can
perceptively influence price by hid decision to buy or sell.
Product is sufficiency homogeneous so that a product of
one firm is a perfect substitute of that of another firm.
b. Absolute monopoly- distinguishing characteristic is a
single seller.
c. Monopolistic Competiton- large number of seller offer
differentiated product which are close substitute but the
single seller are able to differentiateit with trade name, style,
quality, service, location and other factors.
d. Oligopoly- market with a few sellers. Each firm produces
a large fraction of the industry’s total product wherein the
action of ine firm in the industry can influence other firms.
PURE OLIGOPOLY- sellers produces homogeneous product
DIFFERENTIATED OLIGOPOLY- sellers produces similar but
not identical product.
e. Monopsony- market with single buyer.

MARKET CONDUCT- How firms adjust to the market in which

they engaged as buyers or sellers. Behavior or pattern that
the firm exhibits in a market.
MARKET PERFORMANCE- how much economic resource of
the industry’s market behavior or conduct deviates from the
best possible contribution it can make to achieve relevant
socio-economic goal.

MARKETING FUNCTIONS- is a role which helps a company

to identify and source potentially successful products for the
marketplace they operate on and then promote them by
differentiating them from similar products.
1. Transportation- involves physical movements of goods
from the place of production to the place of
consumptions.The mode of transport denpends on
the nature of product, cost, locations, etc.
2. Storage or warehousing- in order to maintain smooth flow
products in the market, the marketer, stores the goods in the
warehouses.
3. Standardization and grading- the next function involved in
marketing is standardization and grading .
STANDARDIZATION- producing products based on
predetermined specifecations to achieve uniformity and
consistency in the output is called standardization.
GRADING- classifying products into different groups on the
basis of quality, size, quantity etc; is called grading.
4. Packaging and labelling- the marketer, then, design
and develope the package for the product and labels it.
Packaging and labelling are considered as the “Pillars of
marketing”. Packaging designing and developing the the
package for the product is called packaging.

5. Physical distribution- managing physical distributions of

the product is another function of a marketer. It involves
selection of channel of distribution and mode or transport
for taking goods from the producer to the consumers.
6. Gathering and analyzing marketing information
(market research)- it includes collection and analysis of
information related to what the customers want to buy,
when they are likely to buy, in what quantities do they buy,
from where do they buy etc.

MARKETING MARGIN AND COSTS are the expenses

incurred by various marketing oganizations and agencies to
move commodities, produce, and products from producers
to consumers.
 MARKETING PROGRAM- 4 P’s of marketing

• PLACE- is where you sell your product and the

distributions channels you use to get it to your customer.
Much like price, finding the right place to market and sell
your product is a key factor in reaching your audience.
• PRICE- is the cost of product or service. When marketing
a product or service, it is important to pick a price that is
simultaneously accessible to the target market and meets
business goals. Different pricing models can have a
significant impact on the overall success of a product.
• PRODUCT- the product is the good or service being
marketed to the target audience. Generally, successful
products fill a need not currently being met in the
marketplace or provide a novel experience that create in
demand.
• PROMOTION- is how you advertise your product or
service. Through promotional activities, you will get the
word out about your product with an effective marketing
campaign that resonates with your target audience.