Agricultural Marketing:An Introduction.

1. AGRICULTURAL
MARKETING:
AN INTRODUCTION

2. Modern Day Marketing Concept
 The Production Concept
 The Product Concept
 The Selling Concept
 The Marketing Concept
 The Societal Marketing Concept
The Production Concept is based on the assumption that
the consumers prefer those products which are both
accessible and affordable. The business organizations
mainly focus on bulk production through improvements
in production efficiency and product distribution system.

3. Modern Day Marketing Concept
 The Product Concept assumes that products of finest
quality for a given price are only preferred by the
consumers. Hence, the firms should produce superior
quality products and devote all their main resources
for improving product quality.
 The Selling Concept lays emphasis on selling efforts
for stimulating and generating customer interest in the
products. This concept necessitates the use of sales
force for selling the products and during the process
the firms may use fair and foul tactics.

4. Modern Day Marketing Concept
 The Marketing Concept revolves around satisfaction
of customer needs and wants. The firms should tailor
their marketing program by determining needs and
aspirations of the target market. The customer
satisfaction is considered key to generate profits for the
organization.
 The Societal Marketing Concept is a broadened
version of the marketing concept. It urges upon the
companies to pay special attention to improvement in
public welfare while fulfilling the needs and wants of
target market.

5. Marketing
 Old Concept:
 Producer’s oriented / Supply driven
 Modern Concept:
 Consumer’s oriented / Demand driven
 It is a total system of interacting business activities
designed to plan, price, promote and distribute want
satisfying good and services to target markets in order
to achieve organizational objectives.

6. Agricultural Marketing
 According to Thomson, the study of agricultural marketing
comprises all the operations, and the agencies conducting them,
involved in the movements of farm produced foods, raw
materials and their derivatives such as textiles, from the farm to
the final consumers, and the effects of such operations on
farmers, middlemen and consumers.
 Acharya and Agarwal defined agricultural marketing as
comprising of all activities involved in supply of farm inputs to
the farmers and movements of agricultural products from the
farms to the consumers.

7. Agricultural Marketing
 First definition mainly focuses on product side of
agricultural market and does not consider the farm
supplies whereas second definition also does not
adequately cover the scope of agricultural marketing.
 “Agricultural Marketing embraces all business
activities involved in production planning,
transformations, grading, storing, transportation and
distribution of goods and services related to
agriculture as desired by agricultural
producers(farmers)and ultimate consumers”

8. The Market
 A place or area where buyer and sellers interact to
achieve their objectives.
 Indicates an aggregate demand of potential buyers of a
specific commodity or services
 After a commodity name
 The business activities that direct the movement of
good and services from producers to consumers
 An exchange process accompanied by the price
making mechanism constitutes a market

9. Types of Market
 On the base of location
 On the base of regulation
 On the base of nature of competition
 On the basis of end users
 On the basis of products
 On the basis of coverage

10. On the basis of location
 Primary market
 Secondary market
 Retail markets
 Terminal markets

11. On the basis of location
PRIMARY MARKETS
• These are markets at primary level such as a village
market, roadside market and small town market.
• The farmers bring their produce to these markets and
sell it to a village dealer, a village shopkeeper, a
broker representing some commission agent or a
representative of a processor or manufacturer. The
main reasons for his selling in these markets are small
stock of produce, urgent need of cash and non
availability of transport facilities.

12. On the basis of location
SECONDARY MARKETS
• Secondary or wholes markets carry out the function
of assembling agricultural produces and disposing off
it to consumers.
RETAIL MARKET
 The small shopkeepers and street venders who
purchase agricultural produce from primary and
secondary markets in bulk and sell it in small
quantities to the consumers through their shops or
other means constitutes the retail market.

13. On the basis of location
Terminal Market
 A market which is mainly involve in export of
commodities, is called terminal market

14. On the basis of Regulation
 a) Free Market
 Free market is a market where forces of demand and
supply operate freely and, hence, perfect competition
prevails in that market. There is no restriction on price
setting mechanism.
 b) Regulated Market
 A market managed by an elected committee or local
authorities is known as a regulated market.

15. On the basis of Nature of competition
 Perfect market
 Imperfect market

16. Perfect market
• A market is said to be perfect where following four
conditions for perfect competition prevail.
1. Large number of buyers and sellers.
2. Homogeneous products
3. No constraint on entry or exit and
4. Consumers and Producers as price taker

17. Imperfect Market
 An imperfect market is a market where one or more
conditions of perfect competitions are lacking e.g.
Monopoly, Monopolistic Competition, Oligopoly
etc.

18. On the basis of end users
 Consumers market .
 Industrial martket

19. On the basis of end users
These markets consist of
individuals and
households who buy
products for their direct
consumption
 Industrial and
instutions that buy
products for further
processing from
industrial market
Consumers market . Industrial market

20. On the basis of products traded
 These are the market
where factors used for
agricultural production
are bought and sold.
 Pesticides ,fertilser
,seed. Farm machinery
and labour market.
• In product markets,
agricultural produce is
traded.
• Grain markets, fruit
markets, vegetables
markets etc.
Factor(input)market Product(output)market

21. On The Basis Of Coverage
 Domestic markets
provide goods &
services to the
domestic consumers
only.
 Domestic markets
include local, regional
& national markets
 International markets
serve the foreign
consumers & are
characterized by
intense competition in
terms of price &
quality.
Domestic Markets International Markets

22. Role Of Agricultural Marketing In
Economic Development
A well developed agricultural marketing sector may contribute
to economic development of a country in following ways.
• An efficient agricultural marketing system has a tangible
impact on marketable and marketed output of the farmers and
hence contributes to overall national income of a country.
• Assist in providing capital and necessary business skills for
trading to the entrepreneurs.
• It modernize farm production structure through development.
• It improves the efficiency of resource allocation.
• It improves market organization transmits correct market
responses and minimizes the scope of distorted market signals.

23. Factors Responsible For The Neglect
OF Agricultural Marketing
• The gains from marketing improvements cannot be quantified
objectively and concretely.
• Marketing is sometimes criticized as being inefficient and is often
accused of creating high profits for the intermediates between
producer and consumer.
• The development of agricultural marketing system requires direct
investment of money which resource constrained economize
cannot afford.
• Lack of skilled and trained manpower in the field of agricultural
marketing that could be highly instrumental in the development of
marketing system is another factor for the neglect of the this sector
• Farmers are hesitant to become shopkeepers and are not inclined to
equip themselves with modern marketing tactics.