2. Introduction
Between the colonial era & present time,
agric. marketing system have undergone a
profound changes culminating at the present
liberalised marketing arrangement.
Intervention in Agric. marketing was through
the instrumentality of marketing boards.
With SAP in 1986, marketing boards were
abolished - gave room for private
participants to take over marketing of
Agricultural produce within and outside the
country
3. WHAT IS MARKET
Latin word ‘marcatus’ which means
trade/merchandise or a place where
business is conducted.
An area/setting within which price making
forces operates, or any arrangement that
brings together buyers and sellers
Factors necessary for the existence of
market are: Goods & Services, sellers &
buyers and Agreement on common price
4. WHAT IS MARKETING
Marketing connotes a series of activities that
are involved in moving goods or services from
the initial point of production until it reaches
the ultimate consumer.
It is an area for organizing and facilitating
business activities and for answering the basic
economic question of “WHAT TO PRODUCE”,
“HOW TO PRODUCE” and “HOW TO DISTRIBUTE
THE PRODUCT”
It includes all those activities involved in
the creation of time, place, form and
possession utility.
5. ROLES OF MARKETING
Provision of income and sources of livelihood
to the marketing agencies and/or
intermediaries.
Generation of foreign exchange earnings.
Encouraging specialization and expansion of
output.
Sustenance of the country’s economic growth
through the development of an exchange
economy.
6. MARKETABILITY OF FARM
PRODUCE
Marketing of agric. produce is regarded as unique and
deserving of specialized attention due to the perishability and
its bulkiness in nature.
Effective marketing of agricultural products is dependent
on the creation of conducive circumstances as well as the
provision of resources and services.
Th/4 Marketing has to be customer-oriented and has to
provide the farmer, transporter, trader, processor, etc.
with a profit. This requires those involved in marketing
chains to understand buyer requirements, both in terms of
product and business conditions
7. Marketing Plan
Marketing plan is a business document
written for the purpose of describing the
current market position of a business and
its marketing strategy for the period
covered by the plan.
The marketing plan is created to clearly
show what steps will be undertaken to
achieve the business’ marketing objectives.
8. Why Undertaking Marketing Plan
Needs for a specialized strategy to introduce
something new, such as new product planning,
entering new markets and/or trying new
strategy to fix an existing problem.
Needed as part of the yearly planning process
within the marketing functional area.
Is component within an overall business plan,
such as a new business proposal to the
financial community.
9. How to develop & format Marketing Plan
The approach taken here is to present a 6 part plan
as there are many ways to develop and format
Marketing plan.
Purpose and Mission
Situational Analysis
Marketing Strategy and Objectives
Tactical Program
Budget, Performance analysis and Implementation
Additional Consideration
10. Marketing Channels, Chains & Functions
A marketing channel is a path through
which goods & services flow from
producers to the final consumers.
The distribution channel is important in
evaluating marketing systems because they
indicate how the various market
participants are organized to accomplish
the movement of a product from the
producer to the final consumer.
12. Market Chains
Describe the series of markets through which
products or services pass until they reach the
consumers. Marketing chain is part of marketing
channel and its study is therefore important for
it reveals the relative importance of various
markets or exchange points in the marketing
system
Shortest or longest chain will heavily depends on
the commodity as some have long marketing
chain while others have short
13. Marketing Costs and Margin
These are the actual expenses incurred
in the performance of the marketing
functions as commodity moves from the
farm to the ultimate consumers
Marketing margin represents difference
in price of a given commodity at
different stages of time, form, place and
possession as it moves from primary
producer to the ultimate consumer.
14.
15. Who are the Marketing
Participants
1. Merchant middlemen: Middlemen that
takes titles and owns the goods they handled.
a. Rural buyers b. Wholesalers c. Retailers
2. Agent middlemen
3. Cooperatives
4. Processors/Manufacturers
16. HOW TO GET THE BEST PRICE
The most effective way to determine your best
price is to test the market price, by offering a
variety of different price points.
The fundamental guideline to testing prices is
to keep charging more and more until you
reaches the point at which people walk away. _
Note that this guideline may hinder your
business, so you should be very careful
17. HOW TO GET THE BEST PRICE
Hypothetical example of a price test conducted
for a dairy house to determine how to
maximize the sales of their newly produced
milk. 3 price points were tested: N 250, N450 &
N700
A large volume of traffic was driven to 3 sales.
Using an A/B/C split test, the traffic was evenly
distributed to these 3 houses—each of them
identical except for the price.
18. HOW TO GET THE BEST PRICE
The results of this three-day micro-test is as
below:
The first lesson learned here is that if the highest
price had not been tested, nobody would know
that so many people would still buy a litre of milk
at N700
Price N 250 N450 N700
Orders 125 157 127
Revenue 31,250 70,600 88,900
19. HOW TO GET THE BEST PRICE
Having tested, it's time for some analysis...
For dairy product, it would have been tempting to
declare the highest price the "winner" and look
forward to high monthly revenues from that time
onward.
In this case, it was the number of orders that caught
everyone's attention (127 litres were ordered at N700
but 157 litres were ordered at N450).
