The Role of Marketing

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• The Role of Marketing

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• Marketing is typically defined as those business
  activities that occur after the product leaves
  the farm.

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• Marketing involves the forward flow of product
  from farm to consumer and ....

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• the reverse flow of information from consumer
  back to producer.

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• As taste and preferences change, this information
  needs to be relayed back to agribusinesses and
  the livestock producer.

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• Marketing adds value to the product.

• When a consumer purchases meat
• he/she is purchasing a mix of products and
  services.

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• Marketing adds value to the product.

• When a consumer purchases meat
• he/she is purchasing a mix of products and
  services.

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• Functions performed by the marketing system
• 1. Exchange
• 2. Physical
• 3. Facilitating

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• Exchange
• Buying and selling

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• Physical
• Transportation

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• Physical
• Processing

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• Physical
• Storage

Pork Bellies
Ham
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• Facilitating
• Standards and grades
• Financing
• Market information
• Risk bearing

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• Market failures
• Usually associated with technical or pricing
  inefficiencies.

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Externalitieswhen the market does not take
into account the impact of an economic activity
on outsiders. For example, the market may ignore
the costs imposed on outsiders by a firm
polluting the environment.
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Externalities
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• Technical inefficiencies are often associated
  with outdated infrastructure, or plant and
  equipment.

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• Pricing inefficiencies usually involve some type
  of monopoly power.