STORAGE: THE TIME DIMENSION OF MARKETING PDF
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Mindanao State University – General Santos
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Summary
This document provides an overview of storage in marketing, covering operations, objectives, and costs. It examines the importance of storage for seasonal products and the risks associated with storage, such as physical and market risks.
Full Transcript
STORAGE: THE TIME DIMENSION OF MARKETING Operation of Storage: 1. Storage to equalize seasonal production to the pattern of demand. 2. Storage at all times within trade channels to keep marketing system operations without interruption Objectives of Storage: Genera...
STORAGE: THE TIME DIMENSION OF MARKETING Operation of Storage: 1. Storage to equalize seasonal production to the pattern of demand. 2. Storage at all times within trade channels to keep marketing system operations without interruption Objectives of Storage: General: Balance supply and consumption during period of plenty and period of scarcity Specific: 1. To maintain a reasonable stable price for the producers, middlemen and the consumers 2. To make products available at all times 3. To bring the product from the farm to the market 4. Prolong the shelf life of the product Extent of storage: 1. Storage is most important for crops that are harvested and marketed within a short period of time 2. Less important for products which are produced and marketed throughout the year. Place of storage: 1. Farm 2. Marketing channels 3. Terminal markets 4. Cold storage 5. Consuming areas Costs of storage: 1. Costs of physical facilities a. Repairs and maintenance b. Depreciation c. Insurance against loss d. Handling fee e. Electric f. Rent for equipment 2. Interest on capital 3. Costs of quality deterioration a. Shrinkage b. Insect damage Risks of storage: 1. Physical risk 2. Market risk
