What is Marketing?

1. Marketing of Agricultural Commodities What is Marketing? It involves anticipating customers needs & wants & findings ways to satisfy these needs..profitably All activities involved in the production & flow of goods & services from point of production to consumers -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

3. 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. Wholesalers Sell toGrocery & Specialty Food Stores, Restaurants & Institutions Retailers Sell toConsumers Food Processors Distribute to brokers & wholesalers, Assemblers & Brokers Sell to Food & Processors Food Marketing Channel Consists of firms & their functions that form industry. Its thefood marketing or distribution system. Farmers Sell products through Assemblers & Brokers

6. 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

7. 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, & distributeit. • 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.

9. 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