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Price
- Agricultural inputs and industrial products
share similar response patterns
- Users of these two products tend to be
more quality conscious than price
conscious
- Response to the consumer goods is likely
to be influenced by the price factor
Market Mix for Agriculture Inputs vis--vis
consumer and industrial goods
Product
- Incase of agricultural inputs and
industrial good, consumers are more
interested to know the technical details
or the performance parameters
- importance of product knowledge and
advisory services
Market Mix for Agriculture Inputs vis--vis
consumer and industrial goods
Promotion
- agri input consumers share similarities with the
consumer goods users
- in both the cases, the number of prospects to be
reached is large, diverse and spread across
different regions.
- Both the product groups require market
segmentation
- Prospects of the industrial products are relatively
small in numbers, uniform in their requirements,
and generally concentrated in cluster of region.
Market Mix for Agriculture Inputs vis--vis
consumer and industrial goods
Place (distribution)
- levels of channel and the network intensity
required for consumer goods and agricultural
inputs are relatively higher than that required for
industrial products.
- Role of channel as a dispenser in consumer
goods and agricultural inputs
- The channel does not have a pulling function
- Pulling is done by advertisement,
demonstrations, personal contacts and other
extension means
Market Mix for Agriculture Inputs vis--vis
consumer and industrial goods
Price * *
Promotion * *
Place * *
(Distribution
)
Marketing Environment for
Agriculture Inputs
Understanding farmers Perception about
Inputs
- Why the farmers want to use Inputs?
(usefulness)
Price of output
Cost of Input
Non-monetary inputs (techniques)
Marketing Environment for
Agriculture Inputs
There is sufficient lag between the point
when input is used and the point when
output is realized
Price of output is expected price and it
may be less or more than the actual
price realization
- It may differentiate the actual
realization of Agro-economic potential
of Agriculture Input
Marketing Environment for
Agriculture Inputs
Cost of Input
- Price of Input
- Extension services
- Credit
- Entrepreneurship
(risk management)
Marketing Environment for
Agriculture Inputs
When effective demand has been
created, actual consumption will depend
on:
- Adequate production
- Effective Distribution
Marketing Environment for
Agriculture Inputs
Effective Distribution
Output Price
Input Cost
Agro-Economic Potential
Extension Services
Infrastructure
Transport Services
Credit
Entrepreneurship
Effective Demand
Adequate Production
Effective Distribution
Actual Consumption
Marketing Environment for
Agriculture Inputs
Agriculture input supply should not be
seen in isolation