Marketing Concepts and Terminology Quiz

Agricultural Marketing Overview

• Agricultural marketing is the process of moving agricultural products from farms to consumers.
• It involves production, processing, distribution, and sales, ensuring fair returns for farmers and consumer satisfaction.
• Essential components of marketing include services, point of production, and point of consumption.

Sub-Sectors in Philippine Agriculture

• Philippine agriculture comprises crops, livestock, fisheries/aquaculture, and forestry.

Importance of Agricultural Marketing

• Encourages entrepreneurial farming practices.
• Shifts focus from production to a market-centric approach.
• Supports small-scale farmers through extension workers and institutions.

Characteristics of Agricultural Products

• Perishable: Requires proper handling and refrigeration to reduce spoilage due to their nature of organic components.
• Seasonal: Availability often restricted to specific seasons, which should be considered in production planning and sales.
• Bulky: Transportation and storage costs can be high, leading to higher logistical planning in agricultural products.
• Variable Quality: Difficulty in grading and standardizing products.
• Irregular Supply: Dependence on environmental factors (e.g., weather) leads varying input and selling.
• Small-Scale Holdings: Scattered production complicates marketing, inventory, and sales projections.
• Price Instability: Farm prices fluctuating frequently impacting returns and farmer profitability.
• Processing Needs: Adds value but incurs further costs.

Utility in Agricultural Marketing

• Form Utility: Raw materials transformed into finished goods, adding value.
• Place Utility: Products available at accessible locations (e.g. retail stores, online platforms).

Market and Marketing Services

• Market: A platform for buyer-seller exchanges.
• Key Elements: Buyers (ultimate/industrial) sellers (suppliers), and trading facilities (physical/virtual).

Marketing Services

• Marketing functions to change product form, time, place, and characteristics.
• Production Services: Occur before production; marketing services occur after.

Marketing Environments

• The external environment impacting agriculture marketing include micro and macro considerations.

Agricultural Marketing Subsystems

• Producer, Channel, Flow, Functional, and Consumer subdivisions/components involved in agricultural marketing.

Marketing Process

• Concentration: Gathering products at a central point.
• Equalization: Balancing supply with demand.
• Dispersion: Distributing products to consumers.

Marketing Channels

• It involves an interconnected system of institutions and agencies moving products from farms to consumers.
• Includes middlemen (e.g., merchant, agent) who perform different roles/tasks
• Middlemen are essential for marketing as they help bridge the disconnect.

Marketing Structure

• Market structure specifies the way sellers interact concerning the commodity they sell.

Classification of Market Structure

• Purely competitive, monopoly, monopolistic competition, oligopoly, and monopsony as categories to understand the market's features.

Market Conduct and Performance

• Market conduct: How firms respond in the market.
• Market performance: How well the market functions relative to a socioeconomic ideal.

Marketing Margins (Price Spread)

• Difference between consumer price and producer price.
• Includes all costs associated with the marketing process including transportation, storage, intermediaries and more.

Marketing Charges

• Costs incurred by various agencies in the process of marketing products (e.g., retailers, wholesalers, etc.).

Marketing Mix (4Ps)

• Product, price, place, and promotion, as aspects of marketing a comprehensive marketing plan.

Labelling and Branding

• Methods of information and identification/recognition.

Promotion

• Methods to attract/persuade consumers to buy, or for other marketing considerations.

What is Economics?

• Economics is the study of choice and management of scarce resources across households, firms and societies.

Economics Branches

• Microeconomics (individual and firm choices/decisions) and macroeconomics (economic structure and broader behavior).

Basic Managerial Functions

• Planning, organizing, staffing, directing, coordinating, reporting, and budgeting.

Scarcity

• Economic scarcity implies limited resources with unlimited wants and needs, forcing choices about resource allocation and use.

Factors of Production

• Land, labor, capital, and entrepreneurship as crucial inputs in creating/producing any good.

Classification of Economic Resources

• Land (natural resources), labor (human effort), capital (man-made tools/resources) and entrepreneurship (organizing and managing).

Capital

• Financial and physical resources (machinery, buildings, infrastructure).

Entrepreneurship

• Ability to take risks, innovate, and organize resources for production (e.g., businesses).

Principles of Economics-

• Concepts explaining individual choices and societal consequences in making decisions among various options.

Demand

• Quantity of a good or service consumers are willing and able to buy (related to price).

Supply

• Quantity of a good or service sellers are willing and ready to sell (related to price).