Week 1 I Overview of Agricultural Marketing.pdf

AGRICULTURAL AND INDUSTRIAL MARKETING PREPARED BY: PROF. ENGELINE DELA CRUZ-ILUMIN DISCUSS THE PRINCIPLES OF MARKETING AND AGRICULTURAL MARKETING AND ESTABLISH THEIR LINK MARK 40083  NEEDS, VALUE, COST, EXCHANGES RELATI...

AGRICULTURAL AND INDUSTRIAL MARKETING PREPARED BY: PROF. ENGELINE DELA CRUZ-ILUMIN DISCUSS THE PRINCIPLES OF MARKETING AND AGRICULTURAL MARKETING AND ESTABLISH THEIR LINK MARK 40083  NEEDS, VALUE, COST, EXCHANGES RELATIONSHIPS WANTS, PRODUCTS AND AND AND MARKETS AND SATISFACTION TRANSACTION NETWORKS DEMANDS  NEEDS, WANTS, DEMANDS, ETC. Need is a state of felt deprivation of some basic satisfaction. People require food, clothing, shelter, safety, belonging, esteem, and a few other things for survival Wants are desires for specific satisfiers of these deeper needs. Human wants are continually shaped and reshaped by social forces and institutions, such as churches, schools, families, and business corporations demands are wants for specific products that are backed by an ability and willingness to buy them.  NEEDS, WANTS, DEMANDS, ETC. Product is anything that can be offered to someone to satisfy a need or want. It refers to physically object. Service refers to intangible (nonphysical) products that satisfy consumers‟ wants and needs Exchange is the act of obtaining a desired product from someone by offering something in return  NEEDS, WANTS, DEMANDS, ETC. Transaction is a trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. It is also called legal transfer of ownership  The process of determining the needs and wants of consumers & being able to satisfy those needs & wants profitability Marketing includes all of the activities necessary to move a product from the producer to the consumer Traditionally, a “market” was a physical place where buyers and sellers gather to buy and sell goods  “The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.” (American marketing association) Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably. The Chartered Institute of.Marketing (UK)  BUYER A market is made up of buyers & sellers Buyers are people who need or want a product or service and have the money to buy it. A market must also have sellers who are willing & able SELLER to produce goods & services for sale  AGRICULTURAL MARKETING the process of planning, promoting, and distributing agricultural products from producers to consumers.  AGRICULTURAL MARKETING the study of all activities, agencies, and policy involved in the procurement of farm inputs and the movement of agricultural product from the farms to the consumer. involves various activities that ensure the efficient movement of agricultural goods from farms to the final consumers. encompasses both the physical movement of products and the associated processes of pricing, packaging, branding, and distribution.  AGRICULTURAL MARKETING The term agricultural marketing is composed of two words agriculture and marketing. Agriculture - means growing and/or raising of crops and livestock Marketing - encompasses a series of activities involved in moving the goods from the point of production to point of consumption. Some of the definitions of agricultural marketing are given below: Human activity directed at satisfying the needs and wants through exchange process. (Phillip Kotler). Performance of business activities that directs the flow of goods and services from producers to users (American Marketing Association).  Product Development and Standardization 01 This involves improving the quality, packaging, and branding of agricultural products to meet consumer preferences and market demands. Pricing and Market Analysis 02 Determining appropriate pricing strategies based on supply and demand, production costs, and market trends. Market analysis involves studying consumer behavior, identifying market opportunities, and understanding competitors  Transportation and Distribution 03 Efficient transportation and distribution systems are crucial for getting agricultural products from farms to markets Promotion and Advertising 04 Creating awareness and demand for agricultural products through advertising, promotions, and marketing campaigns. 05 Market Information and Research Gathering and analyzing market data to make informed decisions. Market Access and Channels 06 Identifying and developing distribution channels that connect producers to consumers.  Government Policies and Regulation 07 Government policies, regulations, and trade agreements can impact agricultural marketing. Value Addition 08 Adding value to agricultural products through processing, packaging, and creating by- products.  Export and International Marketing 09 Expanding agricultural products to international markets Sustainability and Ethical Considerations 10 Addressing environmental sustainability and ethical concerns in agricultural production and marketing, such as organic and fair-trade certifications. Agricultural marketing comprising of all activities involved in supply of farm inputs to the farmers and movement of agricultural products from the farms to the consumers. The agricultural marketing system includes two major sub- system, product marketing and input (factor) marketing. PRODUCT MARKETING INPUT MARKETING Includes farmers, Includes input village/primary traders, manufacturers, distributors, wholesalers, etc. related associations, etc.  The agricultural marketing system includes two major sub- system, product marketing and input (factor) marketing. PRODUCT MARKETING INPUT MARKETING - Farmers - Village/Primary - Regulated Includes input Marketing Traders Committees manufacturers, distributors, - Wholesalers - Processors -Retailers related associations, etc. - Importers/Exporters - Marketing Cooperatives PRODUCT MARKET Market where final products are sold to consumers. Eggs and potatoes from farms. INPUT MARKET Input market includes items like metal, fertilizer, seed and wood. These types of products are purchased by producers. The price of a product is determined by the value that buyers place on the product. When many buyers want a certain product, the price will be higher. If few buyers want a product the price will be lower. The agricultural marketing system is understood and developed as a link between the farm and non-farm sectors. The subject of agricultural marketing includes marketing functions, agencies, channels, efficiency and costs, price spread and market integration, producer’s surplus, government policy and research, training and statistics on agricultural marketing and imports/exports of agricultural commodities.  helps in accelerating the pace of economic development. important multiplier of agricultural development. Optimization of Increase Widening Growth of Resource use in Farm of Markets Agrobased and Output Income Industries Management  Price Adoption and Employment Addition to Signals Spread of New Creation National Technology Income Better Creation of Living Utility Agricultural marketing in the Philippines encompasses a range of activities aimed at efficiently bringing agricultural products from local producers to consumers and other market participants. Smallholder Farming A significant portion of agricultural production in the Philippines comes from smallholder farmers who cultivate small plots of land Crop Diversity The country produces a wide range of crops, including rice, corn, coconut, sugarcane, fruits, vegetables, and other cash crops. Supply Chain Challenges The agricultural supply chain in the Philippines can be fragmented, leading to inefficiencies in distribution and transportation. Traditional Markets Traditional wet markets and public markets remain important venues for selling fresh produce. Wholesale Markets Wholesale markets play a crucial role in aggregating and distributing agricultural products. Retail Sector The retail sector, including supermarkets, grocery stores, and convenience stores, is an essential channel for reaching urban consumers. Agriculture Cooperatives Cooperatives play a role in aggregating and marketing agricultural products. Government Initiatives The Philippine government has various programs and agencies that support agricultural marketing, including the Department of Agriculture (DA) and its regional offices. Promotion and Branding Efforts to promote and brand Philippine agricultural products have gained importance. Market Information Access to market information, including pricing trends, demand forecasts, and consumer preferences, is crucial for informed decision-making by farmers and other market participants. Challenges Challenges faced by agricultural marketing in the Philippines include post?harvest losses, lack of cold storage facilities, inadequate infrastructure, and limited access to credit and financing for farmers. Emerging Trends Digital platforms and e-commerce are increasingly being explored to connect farmers directly with consumers, bypassing traditional intermediaries. Sustainability There is a growing emphasis on sustainable and organic farming practices, responding to consumer demand for healthier and more environmentally friendly products.  Agricultural marketing generally means the marketing of agricultural products to the first handler. In macro (social) perspective, is the performance of all business activities involved in the forward flow of food and fiber from farm producers to consumers.  Agricultural marketing is the process by which a farmer seeks to maximize the return from farm production by providing buyers what they want and supplying it at a profit. - It has to be customer-oriented. - It provides all those participating in it with a profit. Agricultural marketing is the series of activities and services relating to moving agricultural product from the point of production to the point of consumption.  AGRICULTURAL AND INDUSTRIAL MARKETING PREPARED BY: PROF. ENGELINE DELA CRUZ-ILUMIN