AGRICULTURAL MARKETING(AGBM) PART 1 BASIC CONCEPTS OF AGRICULTURAL MARKETING

Reference S.S. ACHARYA N.L. AGARWAL

Prepared By Airin Rahman Lecturer Dept. of Agribusiness & Marketing Sher-e-Bangla Agricultural University Bangladesh, Dhaka.

Definition & Scope

The term marketing does not refer the old sense of selling and advertising, but also the new sense of satisfying customer needs. Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. It includes all the activities involved in the creation of time, place, form and possession utility. According to Thomsen, the study of agricultural marketing comprises all the operations and the agencies conducting them, involved in the movement of farm produced foods, raw materials and their derivatives, such as textiles, from the firms to the final consumers and the effects of such operations on farmers, middlemen and consumers. It also involved policies in the procurement of farm inputs by the farmers and the movement of agricultural products from the farms to the consumers.

Objectives of the study

A study of the agricultural marketing system is necessary for a understanding of the complexities involved and the identification of bottlenecks with a view to providing efficient services by various groups involved with the system as well as transfer of farm products and inputs from producers to consumers about.
1.

Producers Consumers

- Time saving, maximum share, maximum price for surplus, cost effective ss chain
1.

- Cost effective maximum quality and quantity(contrary to farm producer)

1.

Market middlemen and traders

Government

- Steady and increasing income (purchase at low price & sale at high price)
1.

- Safeguard the interests of all the groups associated in marketing.

Scope and Subject Matter

The subject of agricultural marketing includes product marketing as well as input marketing. The importance of farm inputs- improved seeds, fertilizers, insecticides and pesticides, farm machinery, implements and credit- in the production of farm products has increased in recent years. Thus the scope of the subject must include both product marketing and input marketing. It covers what the system is, how it functions and how the given methods or techniques may be modified to get the maximum benefits. Specially, the subject of agricultural marketing includes marketing functions, agencies, channels, efficiency and costs, price spread and market integration, producers surplus, government policy and research, training and statistics on agricultural marketing.

Difference in marketing of agricultural and manufactured goods

1. 2. 3. 4. 5. 6. 7.

Perishability of the product Seasonality of production Bulkiness of products Variation of quality of products Irregular SS Small size holdings and scattered production Processing

Role of Agrimarketing in Economic Development

Optimization of resource use & output management Increase in farm income

Widening of markets
Growth of agro-based industries Price signals Adoption & spread of new technology Employment Addition to national income Better living Creation of utility (Form, Place, Time & Possession utility)