What is Marketing?

1
What is Marketing?
Marketing of Agricultural Commodities

• All activities involved in the production flow
  of goods services from point of production to
  consumers

It involves anticipating customers needs wants
findings ways to satisfy these needs..
profitably
-Anticipating - Needs Wants - Management
Process - Customer Satisfaction - Profitability
Developed by Paul Armah
2
Marketing Involves

• Non-agricultural Marketing
• Agricultural Marketing
• Agribusiness Marketing
• Non Agricultural Marketing
• Defined All activities involved in
  the
• production flow of non-agric goods
  
• services from point of production to
  
• consumers.

Developed by Paul Armah
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Agricultural Marketing

• Defined It is the connecting link btwn
• farmers consumers or performance
  
• of all activities involved in the flow of
• food pdts services from point of initial
• pdn until they are in hands of consumers
• Involves 2 activities .

1. Physical Distibution 2. Economic Exchange
Developed by Paul Armah
4

• 1.Physical Distribution Includes processing,
  handling transfer of farm products from farmers
  to consumers.
• 2. Economic Exchange Involves exchange
  price-setting activities.

Developed by Paul Armah
5
Food Marketing Channel
Consists of firms their functions that form
industry.
Its the food marketing or distribution system.
Farmers Sell products through
Assemblers Brokers
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Agribusiness Marketing

• Is the marketing of supplies services to from
  the
• farm producer.

Its a blend of agric. non-agric. marketing.
Agribusinesses add utility or value to farm
product to enable consumers buy the
preferred product (Form) in the right place
(Place), at the right time (Time)
at the right price (Price)
Developed by Paul Armah
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The Agribusiness Industry

Provide inputs that agric producers need
Transform distribute pdts to consumers in
desired form
Input Sector
Processing Manufacturing
Production Sector
Farm Sector Produce crops livestock
Developed by Paul Armah
8
Market

• An area for organizing business activities
  for answering basic economic questions of what,
  how, how much to produce, distribute it.
• Thus a market may be defined by
• a. A Location (e.g. Jonesboro market)
• b. A Product (e.g. the grain market)
• c. A Time (e.g. August soybean market)
• Most important feature of a market is
  Economic i.e. its pricing exchange activities.

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Productivity of Agric Marketing

• Is Agricultural Marketing Productive?
• Parasitic View Activities performed in the
  marketing
• channel is often viewed as
  parasites or
• unproductive. This is not
  true.
• 2. Utility View Economists define production as
  utility
• creation. Utility is
  classified into Form,
• Place, Time Possession.
• Form Utility Hog producers sausage processors
  
• create form utility - change
  raw material to
• useful pdt
• Place Utility Railroads truckers add place
  utility by
• moving pdts from producers to
  consumers

Developed by Paul Armah
10

• Time utility Packers may freeze store pork
• supermarkets may also hold sausage for
  the
• future. These are time
  utilities.
• Possession utility A wholesaler seeks out a
  retailer
• who finally sells the sausage to
  consumers.
• By transferring the sausage these
  people are
• adding possession utility.
• Thus all those involved in moving the pdt to the
  right place, at the right time and in the right
  form in order to produce the final utility to the
  consumer are productive.

Developed by Paul Armah