Villaruel Coop MKTG FTM 2020 V2 1

2020-2021
Instructional Material on
(COOP-20063)
Cooperative Marketing and
Fair-Trade Movement
Compiled by:
ANGELITA S. VILLARUEL, MCD
Polytechnic University of the Philippines,
College of Social Science and Development,
Department of Cooperatives and Social
Development
TABLE OF CONTENTS PAGE
NUMBER
UNIT 1 LESSON Introduction: The Economic Emphasis on 3
1
PRODUCTION AND MARKETING
UNIT 1 LESSON History of Production and Marketing 6
2
Cooperatives
Agricultural / Industrial Producers and
Marketing Cooperative
UNIT 1 LESSON Concept of Marketing 11
3
UNIT 1 LESSON Analyzing Market Opportunities and 16
4
Environments
UNIT 1 LESSON Market limitations, Trends, Segmentation, and 18
5
Strategic Positioning Strategy
UNIT 1 LESSON Service and Environmental Considerations in 22
6
Product Development in Green Marketing
UNIT 1 LESSON Study of Market and Buyer’s Behavior 26
7
UNIT 1 LESSON Managing Product, Sales, Product lines and 32
8
Brands
UNIT 1 LESSON Display, Pricing and Distribution Channel 40
9
UNIT 2 LESSON Fair Trade Movement 46
1
UNIT 2 LESSON Preparation of Marketing / Product and Fair- 53
2
Trade Exhibit Plan
Reference 57
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Cooperative Marketing & Fair-Trade Movement
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COURSE TITLE : Cooperative Marketing & Fair-Trade Movement
COURSE CODE : COOP 20063
Compiled By : Angelita F. Sumaway-Villaruel
OVERVIEW
Cooperative Marketing and Fair-Trade Movement is designed to provide BSC students a
comprehensive understanding and useful skills in relation to the different dimensions of
production, marketing and Fair-Trade Movement Organizing for cooperatives.
It covers orientation, developmental strategies and operational processes affecting
business of cooperatives as well as the different component procedures of effective
marketing, production operations management and Fair-Trade movement organizing.
Furthermore, it hones the skills of the students in real product development, marketing
and trade development of cooperative enterprises.
MODULE OBJECTIVES:
KNOWLEDGE: Adapt responsibly on the use of technology and information systems on
cooperatives’ operations management, 5s continuous improvement philosophy and other
coop’s performance standards for marketing and fair-trade movement
ATITUDE: Practice the ethical and organizational values of cooperation, honesty,
integrity, care, service, sincerity among other values. Adapt strong sense of justice, work
ethics, and social responsibility expressed in the core values of love of God and neighbor.
SKILLS: Support strategies for global co-operative future and engage in operationalizing
coop business which is a practical vehicle for promoting self-reliance amongst individuals
and society.
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COURSE MATERIAL
Unit ONE LESSON 1 Introduction

The Economic Emphasis on PRODUCTION AND MARKETING
LEARNING OBJECTIVES:
1. Discuss the Mode of Economy or economic cycle (from production, distribution
and consumption)
2. Identify the difference and connection of production, marketing and consumer //
operations management
3. Show interest and appreciation of the importance of knowing the course
The Rationale on studying Cooperative Marketing & Fair-Trade Movement
Large percentage of resources in the country is agriculture, we exported banana, sugar,

mangoes and more, Even International Rice Research Institute was built in the
Philippines to strengthen agricultural technology, innovation and modernization on rice
variety. It is not new to us that most of the other country studied here about agricultural
technology and applied all the learnings to their own country, as of now most of them are
in growing economy and become richer than us. Compared to our local farmers and local
economy, we failed to improve or proved to them the agricultural production and
marketing, instead other country did.
Since we are agricultural country, we supposed to give more emphasis on innovate,
research and develop on the aspect of agricultural technology while doing other form of
modernization connected to agriculture such as infrastructure, agricultural industry and
commercialism. Nevertheless, most of our farmer are still on a struggle for survival, still
belong to the poverty line, including factory workers, they are still on the indigent situation
they did not receive the reality of agricultural development and industrialization, that’s why
most of the present generation do not want to take a risk on agricultural industry, because
as they observe there is no development in agriculture, even history on cooperatives
notice that large percentage of Farmers Cooperatives Marketing (FACOMA) failed, only
few survived.
This can be the challenge in today’s generation, continue embracing the technology and
modernization while enhancing or focusing from beginning to end of our economy, the
agricultural production to marketing or distribution of goods and up to consumption or
forwarding products to ultimate consumer in good condition.
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We will take the opportunity on working together with the value of cooperativism.
Cooperativism as an effective tool/strategy not just for economic development but also
for social transformation (constituency building, strengthening and organizing small,
individual local Agri based producers and marketing social enterprises, facilitation of
value chain-based integration of cooperatives) Cooperatives as catalyst throughout
value-chains for sustainable rural development and empowerment of local communities
and industries. Cooperatives as government’s partners/conduits (local investors, direct
implementers, gap-fillers, extension service providers, etc.) in the implementation of its
programs towards sustainable rural development, and economic empowerment of local
communities. Cooperatives offer alternatives and innovations on property rights
and resource distribution/transfer. (presented by the department of agriculture and NAPC during
virtual forum of PCC las July 20,2020)
A cooperative is an autonomous association of persons united voluntarily to meet their

common economic, social, and cultural needs and aspirations through a jointly owned
and democratically controlled enterprise. (ica 1995), that in this module the class will try
to study the economic side of cooperatives on how to deal will other business groups.
DEFINITION OF ECONOMICS
Economics relating to, or based on the production, distribution, and consumption of goods
and services growth.
That Economics is a social science that seeks to analyze and describe the production,
distribution, and consumption of wealth.
In the 19th century economics was the hobby of gentlemen of leisure and the vocation of
a few academics; economists wrote about economic policy but were rarely consulted by
legislators before decisions were made.
Today there is hardly a government, international agency, or large commercial bank that
does not have its own staff of economists. Many of the world’s economists devote their
time to teaching economics in colleges and universities around the world, but most work
in various research or advisory capacities, either for themselves (in economics consulting
firms), in industry, or in government
Still others are employed in accounting, commerce, marketing, and business

administration; although they are trained as economists, their occupational expertise falls
within other fields. Indeed, this can be considered “the age of economists,” and the
demand for their services seems insatiable. (www.britannica.com/topic/economics)
An economy is the large set of inter-related production, distribution and consumption
activities that aid in determining how scarce resources are allocated. The production
marketing and consumption of goods and services are used to fulfill the needs of those
living and operating within the economy, which is also referred to as an economic system.
Economics as:
Production the action of making or manufacturing from components or raw materials, or
the process of being so manufactured. As finished products
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Marketing or distribution of finished product. Is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large
Consumption: The process in which the substance of a thing is completely destroyed,
used up, or incorporated or transformed into something else.
ACTIVITIES AND ASSESSMENT

1. Make three column chart to write example of activities/process of raw materials in each
economic cycle.
ECONOMIC CYCLE
RAW PRODUCTION DISTRIBUTION CONSUMPTION
MATERIALS
1. Palay seeds • Palay farm • Warehousing • Retail store
production • Thresher • Per sack, 50 kilos 25
• Commercial rice kilos or 1 kilo
• Organic rice • Public Market
• Brown rice • Super market
2.
3.
4.
5.
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UNIT ONE LESSON 2
History of Production and Marketing Cooperatives
Agricultural / Industrial Producers and Marketing Cooperative
1. Discuss Coop History focus on producers and marketing co-op experiences
2. Value the success and failures of Cooperatives in all walks of life.
COURSE MATERIAL:
What are a Production Cooperatives?
The production or industrial cooperative is a cooperative, which is, first and foremost,
designed to provide employment and a source of livelihood for the members who work in
it.
"Workers' production cooperative societies are established by the workers or employees
for the purpose of jointly practicing their occupation for their employment, or public or
private services resulting from the practice of the said occupation, including the sale of
products manufactured, processed, converted or extracted by them, and the execution of
auxiliary emplacement and installation work.“ - Antoine Antoni (French Cooperative Law of 1937)
Workers' production cooperatives are economic enterprises functioning in a market and

subject to competition from other enterprises. They group together workers who are or
who wish to become joint owners and joint managers.
They operate, first and foremost, in accordance with democratic principles whose
precepts, as adapted to economic and industrial life, represent their members' welfare
not only on the economic level (raising the entrepreneur's income and value added), but
also on the social level (with an emphasis on provident schemes, solidarity and mutual
level) and the human level (improving the working environment by the sense of
confidence resulting from the choice of managers by and from among the members, and
the feeling of being among one’s own').
History of Production Cooperatives
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FRANCE, 1830’S
Trade union organizations, non-governmental organizations and even governments
themselves began to regard industrial production cooperatives as potential vehicles for
the creation of employment.
1848
300 Production Coops were established in France, on which 100 of them are in Paris.
Philippe Bûchez; workers should be self-reliant and build a production coop for their
employment.
Louis Blanc; government or state should fund and build a production coop for the
employment of its common people.
BRITAIN
Establishment of production cooperative, consisted of workers’ associations which
provided the capital necessary for their enterprises. The workers supplied the capital,
thereby earning the right to work in the cooperative and participate in the democratic
cooperative process followed Philippe Bûchez's instigation
GERMANY (1825-1864)
The instigation of Louis Blanc inspired Ferdinand Lasalle, as he emphasized the role of
the government in FUNDING the establishment of production cooperative.
1973; Years of high number of unsuccessful production coops
1975; Gained success. In INDIA, 12, 508 coop associations of textile branch alone (30%
of the Indian Weavers' Association formed a production coops), and the value of their
combined production amounted to 140 million USD.
AGRICULTURAL COOPERATIVES
What does an Agricultural Cooperatives do?
Marketing—ranging from helping members sell their products at the first-handler level, to
processing, distributing, retailing, and exporting
Supplying high-quality products at reasonable prices to Members, providing specialized
services such as drying, credit, utilities, insurance, or trucking, Potential benefits of
Agricultural Cooperatives.
Reduced per-unit handling or processing costs

Dividends based on how much each member uses the cooperative
Improved service
More marketing power through greater size, brand identification, quality control, etc.
Assured sources of supply at a reasonable cost
Political influence
Education to help members improve business practices
Support for family farms
Income generated in the local community
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History of Agricultural Cooperatives
and its Legal Framework
The history of Agricultural Cooperatives in the Philippines may be subdivided into four
waves namely:
1. First Wave: During the American Regime
2. Second Wave: The immediate post-war period
3. Third Wave: Martial Law Regime
4. Fourth Wave: Under the Restored Democracy
Business Scope and Performances

Some of the more common activities being handled by the typical Agricultural
Cooperative are as follows:
Cash Trading
This is business done on a cash and carry basis. The customer enjoys at least the use
of the goods and services for cash payments he/she gives.
Selling at Market Price

Cooperatives offer goods and services at prevailing market prices. This promotes
stability. It can cope with operational expenses and cover up the negative effects of
shrinkage, depreciation and losses. It helps maintain the prices of goods.
Quality standardized goods

Cooperatives are intended to develop communities through the production of high-quality
goods and provision of better services.
Cooperative wholesale business or interlending (cooperative bank)

The benefits from the wholesale are considerable. Members can market and acquire
the goods and services at the right price and quality. They can even lower and raise
savings. They can also influence the production of badly needed goods and services
INDUSTRIAL PRODUCERS COOPERATIVES (Irine Bartolome)

WHAT IS AN INDUSTRIAL PRODUCERS COOPERATIVE?
Association of workers and craftsmen, they Undertakes Collective production,

Processing, and Marketing of goods, the Benefits the workers socially and economically
Organized by small-scale producers or artisans to face competition and increase
production
Industrial Cooperatives are very helpful in Obtaining raw materials, Improving the quality
of products and Securing the economies of large-scale production
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What is an Industrial Cooperative Association?
MARKETING COOPERATIVES
What are a Marketing Cooperatives?

According to Art. 23 of Republic Act No. 9520, Marketing Cooperative is one which
engages in the supply of production inputs to members and markets their products. They
can also store, process, and package output prior sale. Farmers join a marketing
cooperative to gain more control in marketing their products so they can:
• Increase the price they receive for their products
• Reduce the costs of marketing their produce and of obtaining agricultural inputs
such as seed and fertilizer
• Make the market for their goods more secure.
History of Marketing Cooperatives
THE PRE-FORMATION PERIOD

During the 19th Century, Filipinos who traveled and studied in Europe brought home the
idea of cooperatives
Dr. Jose P. Rizal and Teodoro Sandiko, the Filipinos who experience close contact with
the new economic movement in Europe
1896 Dr. Jose Rizal initiated an agricultural marketing cooperative while in exile in Dapitan
in Mindanao
1898 Emilio Jacinto organized another failed commercial marketing cooperative in San
Pedro, Laguna. The initial gem of cooperativism during the Spanish colonial period
however failed to take root due to the intense revolutionary struggles of the Filipinos
against the Spaniards.
December 9, 1927 The Americans introduced the Cooperative Marketing Law (PA No.
3425) which encouraged the formation of state-initiated Coop, Bureau of Commerce and
Industry Vested the right to organize farmers’ marketing Cooperatives.
THE JAPANESE OCCUPATION

The number of cooperatives increased tremendously; Agricultural Cooperatives were
linked with Urban-based Cooperatives due to the high demand for food in Manila.
1952 The state organized Farmers' Cooperative Marketing Associations (FACOMAs) and
Producers Marketing Associations (PROCOMAs)
FACOMA to Provide collateral-free loans (to buy machineries) funded by the US agency
mostly in Central Luzon.
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THE MARTIAL LAW PERIOD
Featured the height of state-initiation of cooperative organizing which was patterned after
the Japanese- mode of cooperative development tied-up with the government-initiated
Land Reform Program.
THE AQUINO PRESIDENCY

President Corazon C. Aquino’s Cooperative Development Program learned from the past
failures of excessive government loans or credit support to cooperatives as in the
FACOMA’s (Farmers’ Cooperative Marketing Associations) and SN’s (Samahang Nayon)
Table 1: Updates on the Total Number of Registered Marketing Cooperatives

YEAR TOTAL NUMBER OF REGISTERED
MARKETING COOP
1993 290
2011 753
2012 1, 043
2013 1, 178
2014 1,254
SOURCE: CDA
Table 2: Updates on the List of Operating or Active Marketing Cooperatives
YEAR OPERATING MARKETING COOP

2015 716
2016 754
2017 669
2018 672
SOURCE: CDA
ACTIVITY / ASSESSMENT:
1. In a power point presentation and or word format, make an additional
presentation or research paper about the origin of cooperatives in Europe,
Asia and Philippines, focusing on Producers, Marketing and Consumer
Cooperatives up to year 2020.
2. In an essay form, not less than 100 words, How do you see the future of
Cooperative movement and the youth today on manner of distribution of
products?
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UNIT ONE LESSON 3 Concept of Marketing
After each and every session the learners are able to:
1. Discuss marketing concept applied in the business of cooperatives

2. Enumerate Issues and problems that affect the operations of cooperatives in
macro and micro perspective
3. Adapt strong sense of justice, and social responsibility expressed in the core
values of cooperative marketing.
COURSE MATERIAL:
5 Marketing Concepts – Marketing Management Philosophies
The marketing concept is the strategy that firms implement to satisfy customers’ needs,
increase sales, maximize surplus and beat the competition. There are 5 marketing
concepts that organizations adopt and execute. These are; (1) production concept, (2)
product concepts, (3) selling concept, (4) marketing concept and (5) societal marketing
concepts.
Marketing is a department of cooperative management that tries to design strategies
that will build gainful relationships with target consumers.
Marketers must answer 2 important questions.
1. what philosophy is the best for a cooperative in setting marketing strategies?
2. What will be the importance for organization, customers and society’s interests?
To answer these; there are five alternative concepts under which organizations design
and carry out their marketing strategies.
These 5 alternative marketing concepts are also called marketing management
philosophies.
Marketing Management Philosophies or 5 Marketing Concepts are;

1. Production Concept,
2. Product Concept,
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3. Selling Concept,
4. Marketing Concept,
5. Societal Marketing Concept.
Marketing Concepts – Marketing Management Philosophies

The marketing concept is the strategy that firms implement to satisfy customers’ needs,
increase sales, maximize profit and beat the competition. There are 5 marketing concepts
that organizations adopt and execute. These are; (1) production concept, (2) product
concepts, (3) selling concept, (4) marketing concept and (5) societal marketing concepts.
Marketing is a department of management that tries to design strategies that will build
profitable relationships with target consumers.
Marketers must answer 2 important questions.
1. what philosophy is the best for a company in setting marketing strategies?
2. What will be the importance for organization, customers and society’s interests?
To answer these; there are five alternative concepts under which organizations design
and carry out their marketing strategies.
These 5 alternative marketing concepts are also called marketing management
philosophies.
Marketing Management Philosophies or 5 Marketing Concepts are;
1. Production Concept,
2. Product Concept,
3. Selling Concept,
4. Marketing Concept,
5. Societal Marketing Concept.
These concepts are described below;
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Production Concept:
The idea of production concept – “Consumers will favor products that are available and
highly affordable”. This concept is one of the oldest Marketing management orientations
that guide sellers. Companies adopting this orientation run a major risk of focusing too
narrowly on their operations and losing sight of the real objective. Most times; the
production concept can lead to marketing myopia. Management focuses on improving
production and distribution efficiency. Although; in some situations; the production
concept is still a useful philosophy.
Production Concept example:-
You see in Amazon or retail stores; the market is flooded with cheap products from china.
Everything from the cheap plastic product from China is on your cart now. The best
example of the production concept is Vivo, the Chinese smartphone brand. Their phones
are available in almost every corner of the Asian market. You can walk in any phone shop
in Asia and can walk out with the latest and greatest smartphone from Vivo.
Product Concept
The product concept holds that the consumers will favor products that offer the most in
quality, performance and innovative features.
Here; under this concept,
Marketing strategies are focused on making continuous product improvements.

Product quality and improvement are important parts of marketing strategies, sometimes
the only part. Targeting only on the company’s products could also lead to marketing
myopia. For example; Suppose a company makes the best quality Floppy disk. But a
customer does need a floppy disk?
She or he needs something that can be used to store the data. It can be achieved by a
USB Flash drive, SD memory cards, portable hard disks, etc.
So that the company should not look to make the best floppy disk. They should focus to
meet the customer’s data storage needs.
Product Concept example: -

When you think of high-quality products; Apple will be one of the top ones. Their products
are so good that they set industry trends and standards.
Logitech makes very high-quality computer products such as keyboard, mouse, and
webcams. These high-quality products are priced higher but people still buy and they get
almost free advertisement from independent reviews.
Selling Concept
The selling concept holds the idea- “consumers will not buy enough of the firm’s products
unless it undertakes a large-scale selling and promotion effort”. Here the management
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focuses on creating sales transactions rather than on building long-term, profitable
customer relationships. In other words; The aim is to sell what the company makes rather
than making what the market wants. Such an aggressive selling program carries very
high risks. In selling concept, the marketer assumes that customers will be coaxed into
buying the product will like it, if they don’t like it, they will possibly forget their
disappointment and buy it again later. This is usually a very poor and costly assumption.
Typically, the selling concept is practiced with unsought goods. Unsought goods are that
buyers do not normally think of buying, such as insurance or blood donations. These
industries must be good at tracking down prospects and selling them on a product’s
benefits.
Selling Concept example: -

Every saw an ad online or TV commercial that you almost can’t escape and hide from?
The Selling Concept is in play. Almost all companies eventually fall into this concept.
“Mountain Dew” ads are hard to miss. If people like Mountain Dew or not, that is debatable
but you can see that PepsiCo is pushing it hard using ads. Almost all soft drinks and
soda drinks follow the selling concept. These drinks have no health benefits (actually
harm your health more), you can easily replace them with water (the most available
substances in the earth). And the soft drink companies know it, and they run ads 24×7,
spending millions,
Marketing Concept
what is marketing concept
The marketing concept holds- “achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than
competitors do”.
Here marketing management takes a “customer first” approach. Under the marketing
concept, customer focus and value are the routes to achieve sales and profits. The
marketing concept is a customer-centered “sense and responds” philosophy. The job is
not to find the right customers for your product but to find the right products for your
customers. The marketing concept and the selling concepts are two extreme concepts
and different from each other.
Marketing Concept example: -

Restaurants and startups do follow the marketing concept. They try to understand the
consumer and deliver the best product or service, which is better for the competition.
Dollar shave club is the best example. They changed the Men’s grooming market. They
have understood that people are not happy with their previous grooming products and
their prices. Where other company’s grooming products will cost hundreds to buy for just
one month. Dollar shave club charges a couple of bucks a month with higher quality
products and convenience of home delivery.
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Societal Marketing Concept
Societal marketing concept questions whether the pure marketing concept overlooks
possible conflicts between consumer short-run wants and consumer long-run welfare.
The societal marketing concept holds “marketing strategy should deliver value to
customers in a way that maintains or improves both the consumer’s and society’s well-
being”. It calls for sustainable marketing, socially and environmentally responsible
marketing that meets the present needs of consumers and businesses while also
preserving or enhancing the ability of future generations to meet their needs. The Societal
Marketing Concept puts Human welfare on top before profits and satisfying the wants.
The global warming panic button is pushed and a revelation is required in the way we use
our resources. So, companies are slowly either fully or partially trying to implement the
societal marketing concept.
Societal Marketing Concept example: -

While large companies sometimes launch programs or products that benefit society; it is
hard to find a company that is fully committed socially. We can see Adidas doing great as
they continue to support Colin Kaepernick despite pressure from various parties. Tesla is
promising a big push for green energy with electric cars and solar roof panels/tiles.
Conclusion: Companies Follows a mix of Marketing Concepts in Real-world

Companies don’t follow a single marketing concept rigidly. They usually use a mix of
marketing concepts or change it depending on the market situation, competition and sales
numbers.
Source: https://www.iedunote.com/marketing-concepts
ACTIVITIES / ASSESSMENT
1. Working paper and Analysis, to Identify the on What are the Marketing
concept did the cooperatives follows and How?
2. Enumerate the difference between Marketing concept and Selling concept
of a cooperatives.
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UNIT ONE LESSON 4
Analyzing Market Opportunities and Environments
1. Determine the use of marketing mix in the cooperative business operations
2. Choose product potentials in changing market and customer’s preferences
Choosing the right Product Mix for Cooperatives

1. Product- This refers to the commodity that a cooperative produce and has to
present to the market for the intended customers.
2. Price -Cooperatives need to set a competitive price that provides surplus. The right
price determines the marketing of the product.
3. Promotion-The most important P’s in the 5P’s in marketing. Promote your product
with a well-established marketing strategy.
4. Place -It is important that a product is available and accessible at the right place
and the right time
5. People -Are the key to a thriving business, whether it’s your staff or the customers
buying your product. People make your business.
Determining Product Potential in changing, Market and Customer’s Preferences

Market Potential quite simply, is the total demand for a product in a given
business environment
5 Elements to determine Market Potential

1. Market size
refers to the maximum total number of sales or customers your business can see,
often measured over the course of a year.
It's helpful to know the potential market size before launching a new product line
or line of business, since that can help you understand if it's a worthwhile
investment of your time and money.
2. Market Growth
The rate at which a market's size is increasing.
Commonly marketers create a marketing campaign founded primarily on
maximizing a specific market's growth rate.
3. Competition
is the rivalry between companies selling similar products and services with the goal
of achieving revenue, profit, and market share growth.
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Identifying your competition and staying informed about their products and
services is the key to remaining competitive in the market and is crucial to the
survival of any business.
4. Profitability
refers to the financial factors that affect a company’s ability to make money after
subtracting overhead costs like employee salaries, rent and equipment. Whether
you’re starting a new business or just introducing a different product in your market,
it’s important that you determine whether the market can support you and your
goals.
5. Consumer and product type
Is your product a repeat buying product or one-time sale only?
ACTIVITY AND ASSESSMENT

1. In a power point presentation or a separate sheet (hand written) or word format
prepare an additional report presentation on Analyzing Market Opportunities and
Environments using the Marketing, Producers or Consumer cooperative of your
choice. And give example of each Market Potential.
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UNIT ONE LESSON 5 :
Market limitations, Trends, Segmentation, and Strategic Positioning Strategy
LEARNING OBJECTIVES;
1. Recognize market limitations, trends, segmentation and strategic
positioning strategy
2. Analyze factors affecting product generation and production
3. Services and environmental considerations in product development
Green marketing concept
COURSE MATERIAL:
Trends
A pattern of gradual change in a condition, output, or process, or an average or general
tendency of a series of data points to move in a certain direction over time, represented
by a line or curve on a graph.
Market Segmentation
Market segmentation is the research that determines how your organization divides its
customers or cohort into smaller groups based on characteristics such as, age, income,
personality traits or behavior.
Types of Market Segmentation

Geographic Segmentation
Geographic segmentation creates different target customer groups based on
geographical boundaries.
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Firmographic Segmentation
Firmographic segmentation would take into consideration things like company size,
number of employees and would illustrate how addressing a small business would differ
from addressing an enterprise corporation.
Behavioral Segmentation
Behavioral segmentation divides markets by behaviors and decision-making patterns
such as purchase, consumption, lifestyle, and usage.
Psychographic Segmentation
Psychographic segmentation takes into account the psychological aspects of consumer
behavior by dividing markets according to lifestyle, personality traits, values, opinions,
and interests of consumers.
5 Primary Steps of Segmentation
Conduct Preliminary Research

Get to know your customers better by asking some initial, open-ended questions.
Determine How to Segment your Market

Decide which criteria (i.e. demographics/firm-graphics, psychographics, or behavior) you
want to segment your market by.
Design your Study

Ask a mix of demographic/firm-graphic, psychographic, and behavioral questions. Be
sure to make your questions quantifiable.
Create your customer Segment

Analyze your responses either manually or with statistical software to create your
segments.
Test and Iterate

Evaluate your segments by ensuring they are usable and helpful. If they aren’t, try
segmenting based on other criteria.
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Strategic Positioning
Strategic positioning is a more sophisticated approach to strategic planning. It is a
systematic, analytical process used to define and differentiate an organization.
FACTORS AFFECTING PRODUCT GENERATION AND PRODUCTION

It is a process of combining various inputs to make something for consumptions.
For making or producing something, we need some tangible and intangible materials.
FACTORS OF PRODUCTION
Inputs that a business uses to produce a good or service. These are the building blocks
or materials and supplies that businesses use to create goods and service in an effort to
make a profit.
Land
Ordinarily when we speak of land, we refer to the space upon which we build our homes,
farms and factories. In economics we speak of land as a factor of production and hence
we refer to not only the soil but all the natural resources which we find on
the ground, beneath the ground in the water and in the air.
Characteristics of Land
The land is a free gift of nature.
The land has no cost of production.
It is immobile.
The land is fixed and limited in supply.
Passive factor of production
Factors Affecting Productivity of Land

Qualities of Land, Use of land, Improved techniques of production, Location of Land,
Ability of Organizer
Labor In ordinary language, labor refers to the work done manually or it refer to the
workers who use their hands and feet. In economics the term labor refers to
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“The inclusion of all efforts made by man to earn a living” If a person uses his energy and
exerts his mind and body with the motive of getting an income, he is engaged in labor.
Characteristics of Labor
Labor is an active factor of production, Labor cannot be separated from the laborer, A
laborer sells his labor and not himself, Efficiency of labor differs, Labor cannot be engaged
continuously in production like machine Factors Affecting Productivity of Labor, Morale
and Attitude, Fatigue, Absenteeism, Skills and qualifications of workers, Reassignment
of manpower
Capital Generally when we speak of capital, we refer to it as money but in economics the
term capital is used in a much wider sense, it refers to all man-made goods which are
used in production. Capital includes tools, equipment's, machinery, equipment, etc.
Characteristics of Capital
Capital is man-made- it is not a gift of nature; Supply of capital is elastic. It can be
produced in large quantity when its requirement increases, Capital is a passive factor of
production, Capital is perishable as it can be destroyed, Capital is highly mobile
Factors Affecting Productivity of Capital

• Technology
• Durability • Operating hours
• Maintenance • Proper place
Entrepreneurship
• Entrepreneurship is the drive to develop an idea into a business.
• An entrepreneur combines the other three factors of production to add to
supply.
He/She is the person who decides

• What to produce?
• Where to produce?
• How to produce?
Characteristics of Entrepreneurship
• Risk taker
• Innovative
• Visionary
• Leadership
• Problem-solver
Factors Affecting Productivity of Entrepreneurship

• Skills and qualifications
• Personality
• Too much ideas
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• The way of management
• Career Vision
UNIT ONE LESSON 6

Service and Environmental Considerations in Product Development
In Green Marketing
Green Marketing
• Refers to the process of selling products and/or services based on their
environmental benefits.
• Typically practiced by companies that are committed to sustainable development
and CSR.
A. Green Design
• Intended to develop more environmentally products and processes.
• The application of green design involves a particular framework for considering
environmental issues.
B. Recycling Initiatives
• Engineers been incorporating recyclable materials in many new product designs
for years.
• The goal is to ensure that products are designed in or way that is as attractive as
possible to recyclers.
C. System Thinking
• A central concept in green design is the notion that the systems effects of design
decisions should be considered.
D. Engineering Design
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• Most engineering designs can be classified as inventions – devices or systems
that are created by human efforts and did not exist before or are improvements
over existing devices or systems.
E. Ecological Factors during Engineering Design
• We should take varied factors into consideration: functional, marketing,
sociological; economic; qualitative, ecological.
WHAT IS GREEN MARKETING?

Environmental issues have gained importance in business as well as in public life
throughout the world.
• Concept of green marketing concerns with protection of ecological environment.
Modern marketing has created a lot of problems.
• Particularly, giant factories have become the source of different pollutions.
Production, consumption and disposal of many products affect environment
adversely.
• In the tradition of green marketing, brands launch eco-friendly products or create
the corresponding environment around them by using eco-friendly packaging or
refuse from it, make products recyclable and reusable, use green energy for
product production, design products from recycled materials to reduce waste,
choose local selling to reduce transportation energy, and more.
• As a part of green marketing, brands also often participate in recycling programs,
become more scrupulous about waste disposal practices, donate to different green
movements, and don't forget to educate their customers about what they do to
protect the environment and why it matters.
Sustainable examples of green marketing

1. Patagonia contributes to climate change issues and works on discovering
sustainable ways to produce products. At the same time, the brands’ honest with
customers, admitting it's not entirely green: The shell of coats is made of fossil
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fuels. But this fact doesn't influence the positive image of the brand, as the
community sees its sincere passion for helping the planet.
2. Starbucks has been certified by LEED since 2005, but it has move beyond that by
planning to eliminate all plastic straws by 2020 and open 10,000 environmentally
friendly stores by 2025.
Starbucks tries hard to engage its community in sustainable issues. It uses green
materials for producing, packaging, and delivering its product to customers. As part
of its "Green Store" initiative, the brand also plans to reduce waste and use 30
percent less water and 25 percent less power during production processes.
3. . Timberland – World-known clothing manufacturer and retailer Timberland uses
sustainable stories to introduce its products. As active LOHAS supporters, its
clients wouldn't choose the brand if there was no green element in it.
4. IKEA -This brand uses many tactics and sources to manage waste and renew
energy. Ninety percent of its buildings have solar panels, it uses wind farms to
generate energy, and it has planted millions of trees, while sending only 15 percent
of waste to landfills.
5. The Body Shop -
This brand is known for its effective green positioning. The Body Shop is approved
by Leaping Bunny, the gold standard for non-animal tested products. It also
supports farmers, defends human rights, initiates health treatments and training
events for employees, identifies its values as to protect the planet, and –what's
more important – actually lives up to those values.
• Coca-Cola, with its Plant Bottle campaign, aiming at empowering female
entrepreneurs, encouraging a healthy lifestyle, and helping to conserve water
worldwide by 2020.
• PepsiCo, with its campaigns on reducing water and energy usage across all
business operations. (In 2012, it got the Stockholm Industry Water Award for it.)
• Tom’s of Maine, with its #GREENSCHOOLFUND campaign, teaching students
how to contribute to a cleaner environment.
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• Hershey, with its environmentally-friendly practices, aiming at reducing
greenhouse gases by 50 percent by 2025.
• Seventh Generation, with #ComeCleanand #GenerationGood campaigns,
encouraging Customers market and Behavior [issues] affecting customers
behavior/buying and decision-making [process]
• Institutional and organizational Market [coop market, industrial/market, sellers’
market and government market]
• Market demand
• Forecasting manufacturers to green all production processes.
ACTIVITY AND ASSESSMENT

1. In a power point presentation or a separate sheet (hand written) or
word format prepare an additional report presentation on Market
limitations, Trends, Segmentation, and Strategic Positioning Strategy
using cooperatives of your choice (preferably Marketing, producer or
consumer cooperatives).
2. Make your own product or a title proposal using green marketing
3. Short Quiz will be prepared after the session.
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UNIT ONE LESSON 7
Study of Market and Buyer’s Behavior
• Customers market and Behavior [issues] affecting customers behavior/buying

and decision-making [process]
• Institutional and organizational Market [coop market, industrial/market, sellers’
market and government market]
• Market demand
• Forecasting
1. Examine customers/member market and behavior [issues] affecting customers
behavior/
2. buying and decision-making [process]
3. Locate institutional and organizational Market [coop market, industrial market,
sellers’ market and government market]
4. Determine market demand for a product
5. Predict market and buyers’ behavioral patterns
MARKET AND BUYER'S BEHAVIOUR

CUSTOMERS MARKET AND BEHAVIOR (ISSUE) AFFECTING CUSTOMERS
BEHAVIOR/BUYING AND DECISION MAKING (PROCESS).
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Key Factors that influence the buying decision of consumer
Motivation, Perception, Learning, Attitude and Beliefs
• Family, Reference Group, Role and Status
• Culture, Sub-culture, Social Class
• Age, Income, Occupation, Lifestyle
• Personal Income, Family Income, Income Expenses, Consumer Credit, Liquid
Asset of the Consumer, Savings
PSYCHOLOGICAL - factor that talks about psychology of an individual that drives his
action to seek satisfaction.
SOCIAL - factors that are prevalent in the society where a consumer lives in
CULTURE factors that an individual learns at a very early stage of life due to socialization
within the family and other key institutions, such as the set of values, preferences,
behavior patterns, and perceptions are learned as the individual grows.
PERSONAL factors to the consumers that strongly influences their buying behaviors.
These factors vary from person to person that results in a different set of perceptions,
attitudes and behavior towards certain goods and services.
ECONOMIC factors that talk about the level of sales in the market and the financial
position of the consumer, i.e. how much an individual spends on the purchase of goods
and services that contribute to the overall sales of the company.
Customer Buying and Decision-Making Process

PROBLEM RECOGNITION The first stage of the process is working out what exactly you
or the customer needs. The customer feels like something is missing and needs to
address it to get back to feeling normal. If you can determine when your target
demographic develops these needs or wants, it would be an ideal time to advertise to
them.
INFORMATION SEARCH This is the search stage of the process. One that is continually
changing from old fashioned shopping around to the new shop front which is Google.
Information is not only gathered about stuff and on things but from people via
recommendations and through previous experiences we may have had with various
products.
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EVALUATION OF ALTERNATIVES
This step involves evaluating different alternatives that are available in the market along
with the product lifecycle. Once it has been determined by the customer what can satisfy
their need, they will start seeking out the best option available. This evaluation can be
based upon different factors like quality, price or any other factor which are important for
customers. They may compare prices or read reviews and then select a product which
satisfies their parameters the most.
PURCHASE
After the alternatives have been evaluated, consumers take the decision to purchase
products and services. They decide to buy the best brand. But their decision is influenced
by others’ attitude and situational factors.
POST PURCHASE EVALUATION

The purchase of the product is followed by post-purchase evaluation which refers to
analyzing as to whether the product was useful for the consumer or not. If the product
has matched the expectations of the customer, they will serve as a brand ambassador
who can influence other potential consumers which will increase the customer base of
that particular brand. The same is true for negative experiences; however, it can halt the
journey of potential customers towards the product.
INSTITUTIONAL AND ORGANIZATIONAL MARKET (COOP MARKET, INDUSTRIAL

/MARKET, SELLERS MARKET AND GOVERNMENT MARKET
Institutional Market This is the market where buyer are large players like hospitals,
schools, university and hotels and the product purchased is not directly consumed by
them. They use the purchased good to deliver and create goods and service of their
own.
Cooperative Market Agreement between a manufacturer and a member of

distribution chain (distributor, wholesaler, or retailer) under which the manufacturer
shares a certain percentage of the member's advertising and promotion costs, or
contributes a fixed sum.
Organizational Market buys goods and services to use in producing other products,
to resell, or for their own use. Organizational markets usually have fewer buyers but
purchase in far greater amounts than consumer markets.
Resellers Market are organizations that buy goods and services which they later sell
at a profit. Resellers anticipate the needs of their customers, and they fill up their
stockrooms with products for resale.
MARKET DEMAND
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DEMAND is the quantity of a good or service that consumers and businesses are
willing and able to buy at a given price in a given time period.
MARKET DEMAND is the sum of the individual demand for a product from buyers in
the market. If more buyers enter the market and they have the ability to pay for items
on sale, then market demand at each price level will rise.
EXAMPLE
The following table shows their individual demand schedules as well as the market
demand which is obtained by horizontally adding the quantities demanded by
individuals at a given price.
There are several factors that determine the demand for a product.
These are:
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Demonstration Effect Often, the new commodities or new models of an
existing product are bought by the rich people.
Population of the Country The population of the country also determines

the total domestic demand for a product of mass consumption.
Distribution of National Income the distribution pattern of the national
income also determines the overall demand for a product.
FORCASTING
Forecasting is done by any company to estimate future trends for the
market, product, etc. Market forecast is a key component of market
analysis which provides with estimated figures based upon some
calculation done on the figures of market research.
DIFFERENT FORECASTING METHODS

Channel and Customer Surveys In some kinds of markets, such as business
to business markets, research companies tend to ask customers how much
they are likely to spend on given products in a given time period. The
answers are used to make a forecast.
Sales Force Composite This is a type of forecast based on information

gathered from the sales force of a company. Sales people usually have a
good intuition of how much of a product can reasonably sell in a given time
period.
Executive Opinion This is pretty much the best guess of the company
executives. It is usually the starting point of many forecasts. It can be made
even more thorough and accurate by basing the bonuses of executives on
the amount of sales they make.
Expert Opinion This is just like executive opinion, only the expert is a third
party from outside the company. Just like executive opinion, it should also
be backed by research and quantitative methods.
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BUYER'S BEHAVIORAL PATTERN
“The most important thing is to forecast where customers are moving, and
be in front of them." Philip Kotler
ACTIVITY AND ASSESSMENT :

1. In a power point presentation or a separate sheet (hand written) or
word format prepare an additional report presentation on
Institutional and organizational Marketing coop market,
industrial/market, sellers market and government market, Market
demand and Forecasting.
2. Short Quiz will be prepared after the session.
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UNIT ONE LESSON 8
Managing Product, Sales, Product lines and Brands
• Market and product research – considerations of product improvement and

quality assurance
• Product and Brand concept, Packaging concept and Promotional Mix
• Sales Issues and Problems Affecting the Retailing Business
• Management of Sales Force
MARKET RESEARCH
Market research is the process of determining the viability of a new service or product
through research conducted directly with potential customers. Market research allows a
company to discover the target market and get opinions and other feedback from
consumers about their interest in the product or service.
IMPORTANCE OF MARKET RESEARCH

Market research is a critical tool in helping companies understand what consumers want,
develop products that those consumers will use, and maintain a competitive advantage
over other companies in their industry.
HOW MARKET RESEARCH WORKS

Market research consists of a combination of primary information, or what has been
gathered by the company or by a person hired by the company, and secondary
information, or what has been gathered by an outside source.
PRODUCT RESEARCH
Product research is the marketing research that provides information on the desired
characteristics of a product or service. Product research helps companies to understand
what the customers really want, so that the product can be tailored to match the needs of
the customer. This research can help to refine new product ideas.
IMPORTANCE OF PRODUCT RESEARCH

1. Competitive edge
2. Innovation
3. Goal endorsement
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ADVERTISING It is the best way to communicate to the customers. Advertising helps
informs the customers about the brands available in the market and the variety of products
useful to them. Advertising is for everybody including kids, young and old. It is done using
various media types, with different techniques and methods most suited.
PACKAGING It is a Processes (such as cleaning, drying, preserving) and materials (such

as glass, metal, paper or paperboard, plastic) employed to contain, handle, protect,
and/or transport an article. Role of packaging is broadening and may include functions
such as to attract attention, assist in promotion, provide machine identification (barcodes,
etc.), impart essential or additional practice of combining several related goods or
services into a single offer. See also bundling.
BRANDING The process involved in creating a unique name and image for a product in
the consumers' mind, mainly through advertising campaigns with a consistent theme.
Branding aims to establish a significant and differentiated presence in the market that
attracts and retains loyal customers.
QUALITY ASSURANCE Quality Assurance is popularly known as QA Testing, is defined

as an activity to ensure that an organization is providing the best possible product or
service to customers. QA focuses on improving the processes to deliver Quality Products
to the customer. An organization has to ensure, that processes are efficient and effective
as per the quality standards defined for software products.
PROCESS OF QUALITY ASSURANCE This helps reduce problems and errors, in the
final product.
Plan - Organization should plan and establish the process related objectives and
determine the processes that are required to deliver a high-Quality end product.
Do - Development and testing of Processes and also "do" changes in the processes
Check - Monitoring of processes, modify the processes, and check whether it meets the
predetermined objectives
Act - Implement actions that are necessary to achieve improvements in the processes
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Difference between Quality Control and Quality Assurance
PRODUCT IMPROVEMENT Product lifecycles continue to shorten as customer quality

expectations continue to increase. In order to remain competitive, you must continuously
improve product quality and performance while simultaneously holding costs down.
“PRODUCT AND BRAND CONCPET, PACKAGING CONCEPT AND PROMOTIONAL MIX
PRODUCT It is an object or system made available for consumer use; it is anything that
can be offered to a market to satisfy the desire or need of a customer.
BRAND CONCEPT It is what makes the product identifiable and differentiable.

Is the general idea or abstract meaning behind a brand.
BRAND NAME: It is that name which is given by the manufacturer or maker of the product
or a range of products. A brand name is most often trademarks.
Brand Identity: This is the way in which any business perceives its brand. This is basically
the image of the brand from the point of view of its maker and how the maker wants it to
be perceived by consumers.
BRAND IMAGE: It is the perception of customers about a particular brand. It is basically

how consumers perceive the brand.
BRAND LOYALTY: This refers to the tendency of a particular group of customers who
will continue buying the particular brand instead of other similar brands in the market.
BRAND ASSOCIATION is a link which a customer creates in his mind about the brand.
This link should be positive so that the brand is perceived as positive.
SONIC BRANDING: This refers to the use of sound in advertising a particular product or
service. The underlying concept is that when a customer hears that sound, they will think
of that particular product.
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BRAND VOICE: The way a brand speaks to its customers. It is that unique and constant
feature included in every brand decision which makes your customer recognize it and
differentiate it from others. (E.g. Sprite, in India, has a unique brand voice of being
straightforward in everything) Brand voice gives rise to the personality.
BRAND RECALL: is the ability of consumers to recognize the brand when the product
category is mentioned. (E.g. coca cola is recalled when soft drinks are mentioned)
BRAND RECOGNITION: is the ability of consumers to recognize the brand when asked
questions about that brand or when shown products of that brand. (E.g. a product is
shown to you and you’re asked if you’ve seen this before or not or do you remember its
name or not)
BRAND AMBASSADOR: A person/group of persons hired by the organization to

represent a brand.
PACKAGING CONCEPT can be used by marketers to encourage potential buyers to

purchase the product.
Physical protection: The objects enclosed in the package may require protection from,
among other things, mechanical shock, vibration, electrostatic discharge, compression,
temperature, etc.
Information transmission: Packages and labels communicate how to use, transport,

recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and
chemical products, some types of information are required by governments. Some
packages and labels also are used for track and trace purposes.
Convenience: Packages can have features that add convenience in distribution,

handling, stacking, display, sale, opening, re-closing, use, dispensing, reuse, recycling,
and ease of disposal.
Barrier protection: A barrier from oxygen, water vapor, dust, etc., is often required.
Permeation is a critical factor in design. Some packages contain desiccants or oxygen
absorbency to help extend shelf life. Modified atmospheres or controlled atmospheres
are also maintained in some food packages. Keeping the contents clean, fresh, sterile
and safe for the intended shelf life is a primary function.
PROMOTIONAL MIX
blend of promotional variables chosen by marketers to help a firm reach its goals.
Advertising- is the paid presentation and promotion of ideas, goods, or services by an

identified sponsor in a mass medium. Examples include print ads, radio, television,
billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, mobile
apps, motion pictures, web pages, banner ads, emails.
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Personal selling- is the process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral presentation,
often in a face-to-face manner or by telephone. Examples include sales presentations,
sales meetings, sales training and incentive programs for intermediary salespeople,
samples, and telemarketing.
Sales Promotion- is media and non-media marketing communication used for a pre-
determined limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and
exhibitions. Public relations or publicity- is information about a firm's products and
services carried by a third party in an indirect way. This includes free publicity as well as
paid efforts to stimulate discussion and interest. It can be accomplished by planting a
significant news story indirectly in the media, or presenting it favorably through press
releases or corporate anniversary parties. Examples include newspaper and magazine
articles, TVs and radio presentations, charitable contributions, speeches, issue
advertising, seminars.
Sponsorship- of an event or contest or race is a way to generate further positive publicity.

Product placement- is paying a movie studio or television show to include a product or
service prominently in the show.
Digital marketing- is the marketing of products or services using digital technologies,

mainly on the Internet, but also including mobile phones, display advertising, and any
other digital medium.
“SALES ISSUES AND PROBLEMS AFFECTING THE RETAILING BUSINESS”

• KEEPING UP WITH EVER-CHANGING CUSTOMER EXPECTATIONS
• MAINTAINING CUSTOMER LOYALTY
• KEEPING UP WITH THE PACE OF MODERN TECHNOLOGY
• ACCESS TO CAPITAL
“MANAGEMENT OF SALES FORCE”

Efforts put forth to attain a company’s sales objectives. Sales management can involve
any of the following activities:
(1) formulation of sales strategy through development of account management policies,

sales force compensation policies, sales revenue forecasts, and sales plan.
(2) implementation of sales strategy through selecting, training, motivating, and
supporting the sales force, setting sales revenue targets.
(3) sales force management through development and implementation of sales
performance, monitoring, and evaluation methods, and analysis of associated behavioral
patterns and costs
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SALES FORCE OBJECTIVES
A sales force will have one or more of the following tasks.
Prospecting – search for leads
Targeting – allocation of time between prospects and customers
Communicating – info about company and products
Selling – Approach, presentation, answering objections, closing sales
Servicing – consulting, technical, financing, etc.
Info gathering – market research
Allocating – scarce products to customers.
DESIGNING SALES FORCE STRATEGY AND STRUCTURE
Ways sales reps work with customers to maintain company competitive edge:
Rep to buyer – discuss issues with a prospect or customer
Rep to buyer group – rep gets to know as many members of buyer group as possible
Sales team to buyer group –
Conference selling – company sales rep and resource group to customer to talk big
problems or opportunities
Selling Seminar – Company team to group of buyers/customers
Once company has strategy can go with direct sales force or contractual force. Direct
sales force is standard sales force with office and field reps, while contractual reps are
purely commission sales forces.
Territorial – each rep gets own piece of land to work equally divided by workload or
potential – result is no customer confusion as to who the rep is
Product - Sales force sells along product lines
Customer – Sales force sells along Customer/Industry lines
Complex – combination of both
Depends upon the number of customers you want to reach then:
Group customers into classes by annual sales volume
Establish desired call frequency-The number of calls to be made per year on each
account in a size class
Classes size time freq. = workload
Determine number of calls a rep can make a year
Workload divided by rep calls per year = number of reps needed
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TRAINING METHODS:
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COMPENSATING SALES REPRESENTATIVES
Compensation is made in three ways:

a) Direct Salary
b) Direct Commission
c) Combined Plans
SUPERVISING AND MOTIVATING SALES REPRESENTATIVES

Supervising Sales Force
a) Directing the sales force
b) Identify customer targets and set call norms
c) Develop prospect targets
d) Use sales time efficiently
Motivating Sales Force

a) Organizational Climate
b) Sales Quota
c) Positive Incentives
d) Honors
e) Trips
f) Merchandise / Cash
g) Awards
Motivating Sales Force

a) Organizational Climate
b) Sales Quota
c) Positive Incentives
d) Honors
e) Trips
f) Merchandise / Cash
g) Awards
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EVALUATION OF SALES REPRESENTATIVES
a. Sources of Information
b. Call Reports
c. Sales Reports
d. Work Plan
e. Expense Reports
UNIT ONE LESSON 9

Display, Pricing and Distribution Channel
Product display and store layout

Pricing concept
Selection and management of Marketing channels
a) Organize product display, pricing and distribution strategies
b) Discover the proper layout and appropriate to product of cooperative
c) Recognize the importance of being organize to give service excellence
Product display
The merchandise display happens to be a special presentation of the products of a store
that is used to attract and even entice consumers. The nature of these displays can vary
between industries, but all merchandise displays will be based on various basic principles
that were designed to help increase purchases. Yes, merchandise displays are a big part
of the merchandising concept, which is there to help promote sales by coordinating
market, sales strategies and advertising.
Visual Merchandising Tips for a Market/Retail Store

If you have a grocery or general merchandise store, here’s some additional tips on how
to display your merchandise:
1. Categorize your products by aisles or groups of aisles, meaning you should have
departments throughout your store for a consistent look and feel.
2. Place high margin items at the front of your store. These include things like:
• Sunglasses displays
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• Back to school items
• Sodas and candy bars
• Batteries and small electronics
3. Place consumables and everyday goods at the back of your store. Everyone
needs paper towels, toilet paper, and Ziploc bags. Placing these high-volume
items at the back of your store allows customers to eye other products as they
walk to the back, giving you a better chance to get extra sales.
Product Display Guidelines

• Arranging the products neatly and keeping the aisles & store clutter-free
• Placing the products in a manner that they are accessible to the consumer
• Arranging all categories of products in distinctive sections
• Showcasing focused/new products upfront
• Placing Price & Feature specification cards with every demo product, making
them serve as silent salesmen
• Alignment of back wall branding should go along with product on display
• Motive shouldn’t be to keep all the products in display but to display less and
relevant products
• Window display should be simple, relevant, and done in such a way which
reflects the mix of product range available in the store
Store Layouts
Since moving merchandise is the name of the game, the store layout should help to
achieve that goal by guiding customers through the store, exposing them to product, all
while managing important stimuli that encourages purchasing behaviors. How people
experience your store is a big part of your brand that needs to be as carefully crafted as
other aspects of your brand.
There are four commonly used store layouts:

1. Grid We’re all familiar with the grid. Nearly every convenience store, pharmacy,
and grocery store utilize this familiar layout. Reams of merchandise are displayed
on a predictable pattern of long aisles where customers weave up and down,
browsing as they go. The grid maximizes product display and minimizes white
space. This layout is all about product, product, product.
2. Herringbone If you think the grid may be best for your merchandise, but you
have a very long, narrow retail space, the herringbone layout is one to consider.
The herringbone layout has many of the same pros and cons as the grid, with a
few notable exceptions.
3. Loop (Racetrack) The loop, or racetrack layout takes the grid’s fairly predictable
traffic flows a step further and creates a deliberate closed loop that leads
customers from the front of the store, past every bit of merchandise, and then to
the check-out. Customers are exposed to the most merchandise this way, but the
path they take is controlled.
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4. Free-Flow The free-flow layout philosophy is almost a rejection of the others.
With free-flow, there is no deliberate attempt to force customers through
predictable traffic patterns; wandering is encouraged. Therefore, with free-flow,
there are far fewer rules, but that doesn’t mean there aren’t any — don’t forget
about the commonalities that are based on natural human behavior. Free-flow
has been called the simplest store layout because there’s no defined pattern, but
arguably that’s what makes it the most complex. How you organize your
merchandise in a free-flow store is limited only by your square footage and your
imagination.
Concept of product pricing

Setting prices as per the level where marginal revenue is equal to marginal
cost is called marginality rule. However, there is evidence produced by some
researchers that most of the organizations do not follow marginality rules
rather they follow different market conditions. Pricing decisions play an
important role in an organization since they help in generation revenue.
Profit Oriented Objectives:

a. Maximizing profit
b. Achieving a Target Return
Sales-Oriented Objectives:
a. Increasing the sales volume:
b. Increasing or maintaining market share
Status quo-Oriented Objectives:
a. Stabilizing the Prices
b. Meeting the Competition
c. Determining prices according to consumer’s paying capacity
Cost Volume Analysis and Break-Even Analysis:
Focuses on relationship between cost, revenue, and volume of output. The
purpose of cost-volume analysis is to estimate the income of cooperative under different
operating conditions.
Use of the techniques requires identification of all costs related to the production
of a given product. These costs are then assigned to fixed costs or variable costs. Fixed
costs tend to remain constant regardless of volume of output. Variable costs vary directly
with volume of output. The major components of variable costs are generally materials
and labor costs. We will assume that variable cost per unit remains the same regardless
of volume of output.
The total cost associated with a given, volume of output is equal to the sum of the
fixed cost and variable cost per unit times volume.
TC = FC + VC x Q
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FC = Fixed Cost - are those that tend to remain constant regardless of
Volume of output.
VC = Variable Cost- vary directly with volume of output. The major
Components of variable cost are material and labor
Q = Quantity or volume of output
TC = Total Cost QBEP = Break even quantity
TR = Total Revenue P = Profit
SP = Specified Profit R = Revenue
Total Revenue
Total Cost = FC +VC
Break-even point
Fixed cost
Total Variable cost
Revenue per unit, like variable cost per unit, is assumed to be the same regardless of
quantity. The total revenue will have a linear relationship to output, assume that all output
can be sold. The total revenue associated with a given quantity of output.
Q=RxQ
The difference between total revenue and total cost and volume of output, is the
volume at which total costs and total revenue are equal is referred to as the break-even
point (BEP). When volume is less than the break-even point, there is a loss rather than a
profit; when a volume is greater than the break-even point there is a profit. The greater
the deviation from this point, is the greater the profit or loss. Total profit can be computed
using the formula:
P = TR – TC
= R x Q – (FC + VC x Q)
The required volume needed to generate a specified profit is:
Volume = SP + FC
R – VC
A special case of this is the volume of output needed for total revenue to equal total cost.
This is the break-even point, computed using the formula:
QBEP = F C
R - VC
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Example:
The owner of Sampaloc Multi purpose Cooperative, R. Bughao, is contemplating adding
a new line of pies, which will require leasing new equipment for a monthly payment of P
6,000.00. Variable costs would be P2.00 per pie, and pies would retail for P 7.00 each.
a. How many pies must be sold in order the break even?
b. What would the profit (loss) be if 1,000 pies are made and sold in a month?
c. How many pies must be sold to realize Profit of P 4,000.00?
Solution:
FC = P 6,000.00 VC= P 2 per pie Rev = P 7 per pie
a. QBEP = F C 1 = P 6,000.00 = 1,200 pies / month
REV- VC P 7–P 2
b. For Q = 1,000, P = REV x Q –(FC + VC x Q )
= P 7 x 1,000 –(P 6,000 + P 2 x 1,000) = P 1,000.00
c. P = PHP 4,000: solve for Q in the preceding equation:
PHP 4,000 = PHP 7 Q – (PHP 6,000 + PHP 2 Q)
Rearranging terms, we obtain
PHP 5 Q = PHP 10,000 Q = 2,000 pies
Selection and Management of Marketing Channels

it is the distribution network through which a producer puts his product in the
hands of actual users.
Classification of Channels of Distribution

1. DIRECT CHANNEL
• When manufacturer and customer deal directly with each other
• There is no middleman present in this type of channel
2. INDIRECT CHANNEL
• Companies producing goods on a large scale.
• Usually, they sells goods through middleman.
• (wholesalers, retailers)
SELECTING MARKETING CHANNEL

1. Factors to be considered before selecting a suitable channel of distribution:
➢ Product
➢ Market
➢ Company
2. Intermediaries
➢ the main role is to resell the products of the manufacturer to final customers.
➢ they play a significant role in the flow of products from producers to
consumers and on company profitability.
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HOW INTERMEDIARIES MINIMIZE TRANSACTIONS? is Having one intermediary
MARKETING CHANNEL (MANAGEMENT refers to the process of analyzing, planning,
organizing, and controlling a firm’s marketing channels.
How to maximize the profit of the company is in Managing the marketing channels
effectively and efficiently.
Motivational Strategies
To induce member cooperation:
➢ Paying higher slotting allowances.
➢ Offering higher trade discounts.
➢ Provide strong advertising and promotional support.
➢ Training channel members’ salespeople and;
➢ Offering superior logistical support.

1. Problem Solving: A small firm produces and sells novelty items in a five–
state area. The firm expects to consolidate assembly of its electric turtle line
at a single location. Currently, operations are in three widely scattered
locations. The leading candidate for location will have a monthly fixed cost of
PHP 42,000.00 and variable costs of PHP 3 per turtle. Turtles sell for PHP 7
each. Prepare a table that shows total profits, fixed costs, variable costs, and
revenues for monthly volumes of 10,000, 12,000 and 15,000 units.
2. In a power point presentation or a separate sheet (hand written) or word
format prepare an additional report presentation and additional data on
Lesson 7 and 8
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a) Discuss Fair-trade movement History focus on product development
experiences
b) Identify the issues and problems that affect the operations and management of
Fair-Trade movement
c) The Opportunities of Fair-Trade Movement
Definition
Fair-trade is a set of business initiatives that are run according to certain objectives and
criteria. At the same time, it is an international social movement (IIED, 2000; Young, 2003;
Pirotte, 2005). The idea of fair-trade originated in the 1960s as a response to the unequal
terms of trade imposed upon the developing countries. “Fair-trade is a trading
partnership, based on dialogue, transparency and respect, which seeks greater equity in
international trade. It contributes to sustainable development by offering better trading
conditions to, and securing the rights of, marginalized producers and workers – especially
in the South”.
Fair-trade organizations (backed by consumers) are actively engaged in

supporting producers, in awareness raising and in campaigning for changes in the
rules and practices of conventional international trade (www.bafts.co.ukandwww.ifat.org)
Fair trade is an institutional arrangement designed to help producers in developing

countries achieve better trading conditions. Members of the fair-trade movement
advocate the payment of higher prices to exporters, as well as improved social and
environmental standards.
Goals of Fair-Trade:
1. To improve the livelihoods and wellbeing of producers by improving
market access, strengthening producer organizations, paying a better price
and providing continuity in the trading relationship.
2. To promote development opportunities for disadvantaged
producers, especially women and indigenous people and to protect children from
exploitation in the production process.
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3. To raise awareness among consumers of the negative effects on producers
of international trade so that they exercise their purchasing power positively.
4. To set an example of partnership in trade through dialogue, transparency
and respect.
5. To campaign for changes in the rules and practice of
conventional international trade.
6. To protect human rights by promoting social justice, sound
environmental practices and economic security.
History
1940s An American lady called Edna Ruth Byler first sold handcrafts made by the dis
favored people.
1946, she and her colleague Ruth Lederach buy needle from Puerto Rico producers
and sell them in USA. Importance and How to develop a Fair Trade
In 1958, he first fair trade shop was opened in Ohio in USA.
In 1968, the developing countries adopted a new political at the second session of the
United Nations Conference on Trade and Development ( UNCTAD ) in New Delhi. The
conference emphasizing the massage " Trade not Aid".
In 1969, the first European shop was opened in Breukelen, Netherlands.
In 1988, Max Havelaar was launched as the first Fairtrade label under the initiative of
the Dutch development agency Solidaridad.
In 1989, International Fair-Trade Association (IFAT), which is WFTO, was established
as the first global fair-trade network. The first ‘Fairtrade’ coffee from Mexico was sold
into Dutch supermarkets.
In 1994, Network of European World Shops (NEWS!) was formed. Green and Black
Maya Gold Chocolate launched, followed by Cafedirect coffee and Clipper Tea. (Early
fair-trade goods)
In 1997, Fairtrade Labelling Organization (FLO) was formed. Hence, a universal label
was established worldwide to measure the standard.
2000s Garstang located in Lancashire of the UK becomes the first ‘Fairtrade town’ in
the world. The annual retail value of FAIRTRADE Mark sales in the UK reaches £45m
and Fairtrade coffee takes 14% of the UK market.
In 2002, an International Fairtrade Certification Mark was launched by FLO in order to
improve the visibility of the fair trade mark in shops.
In 2007, the first fair trade franchise business becomes available in the UK. 21 labeling
initiatives are members of FLO international. Fair trade retail sales research £1.67
billion worldwide.
Recently, 2011, the fair-trade retail sales go up to £4.42 billion. More than 1.2 million
farmers and workers are benefit from fair trade movement.
Significance of Fair Trade

Fairtrade labelled products VS Individual members of IFAT on 2002
Fair-trade certified coffee 90% retail sales increase on a single year.
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How to Develop Fair Trade Movement
Fair Trade is a global movement committed to paying fair prices in trade, impacting
producers in developing countries. The concept came as a response to global poverty
levels and focuses on the marketing of products and development trade.
Fair trade is an institutional arrangement designed to help producers in developing
countries achieve better trading conditions.
The Fair-trade support small scale farmers and workers who is marginalized from trade
in every variety of ways also they monitor the impact of fair trade in communities.
It promotes sustainable development by offering better trading conditions to, and securing
the rights of, marginalized producers and workers in developing countries
Comparing co-operative and fair-trade movement: the differences

We can see differences and sometimes clear divides in terms of (a) the type of agencies,
(b) the rationale, (c) the cultural values and (d) the economic activities.
a. Types of Agencies
Cooperatives Fair Trade
Social Category Social and Economic Process

agents
Legal Status Social concept and legal Social concept but leaves
formula for a society with open all sorts of options as
economic activities for the society formula
Types of Agent Involved Come in all sorts Labelling or certifying
agencies, the specialized
outlets
Historical Significance Fully, institutionalized and Takes the shape of a new
and Appeal well-established social social movement
movement
b. Drive and Rationale

Origin and Drive Producer-driven Consumer-driven

Target Group Increase incomes of Improve the income situation of
Rational consumer and producers producers
Strategic Means to an end Much more an end in itself

Rationale
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c. Organization Culture and Values
Logic Market Forces with Self- Support or Assistance Logic

help
Condition Management Commitment
Objective Growth Oriented Human Development and Respect

of human Development
d. Economic Activities
Economic Sectors Every economic sector Limited range of products and

activities
Benefits
1.  stable prices that cover the costs of sustainable production
2.  market access that enables buyers to trade with producers who would otherwise
be excluded from market;
3.  partnership (producers are involved in decisions that affect their future) and
4.  empowerment of farmers and workers 
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Cooperative Marketing and Fairtrade Movement
Summary Exam
1. _________ is a trading partnership, based on dialogue, transparency and respect, which seeks
greater equity in international trade. It contributes to sustainable development by offering better
trading conditions to, and securing the rights of, marginalized producers and workers – especially
in the South”.
a. Fair-Trade b. Free Enterprise c. Free Marketing d. All of the above.
2. This refers to the commodity that a cooperative produces and has to present to the market for the
intended customers.
a. Service b. Product c. Credit d. consumer
3. The merchandize display happen to be special of the products of a store that is use to attract and
even entice consumers.
a. Merchandise inventory b. store layout c. product display
4. ____________________ is a systematic process of collecting, analysing and interpreting

information. This information could be about the target market, consumers, competitors and the
industry as a whole.
a. Marketing mix b. consumer coop c. production d. market research
5. ______________ is a general idea and an abstract meaning behind the brand working
a. Brand Concept b. Product Concept c. Promotion d. Price
6. ___________ is the sale of goods to end users, not for resale, but for use and consumption by the
purchaser, involves the sale of merchandise from a single point of purchase directly to a customer
who intends to use that product.
a. Whole Sale b. Retail c. Middle Man d. All
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7. _________THE WRAPPING MATERIAL AROUND A CONSUMER ITEM THAT SERVES TO CONTAIN,
IDENTIFY, DESCRIBE, PROTECT, DISPLAY, PROMOTE AND OTHERWISE MAKES THE PRODUCT
MARKETABLE AND KEEP IT CLEAN.
a. Promotion b. Price c. Packaging d. Product
8. _______________ A PAID FORM OF NON-PERSONAL COMMUNICATION ABOUT AN ORGANIZATION

AND/OR ITS PRODUCT TO BE TRANSMITTED TO TARGET-AUDIENCE THROUGH A MASS MEDIUM BY AN
IDENTIFIED SPONSOR.
a. Product b. Price c. Packaging d. Advertisement
9. _________________________________are economic enterprises functioning in a market and subject

to competition from other enterprises.
a. Workers' production cooperatives b. Service Cooperatives c. Consumer

Cooperatives d. Multipurpose Cooperatives
10. Cooperatives offer goods and services at _______________________. This promotes stability. It can
cope with operational expenses and cover up the negative effects of shrinkage, depreciation and
losses. It helps maintain the prices of goods.
a. Cash Trading b. prevailing market prices c. original price d. none
11. According to Art. 23 of Republic Act No. 9520, _______________________ is one which engages in the
supply of production inputs to members and markets their products.
a. Credit Cooperatives b. Workers Production Cooperatives c. Marketing

Cooperatives d. Multipurpose Cooperatives
12. The change or value for a Product service, a value that will purchase a finite quantity, weight or other
measure of goods or services.
a. Service b. Price c. Place d. Packaging
13. Cost that will vary depend on how much it will cost to manufacture one unit of the product.
a. Fixed Cost b. Total Cost c. Variable Cost d. Manufacturing Cost
14. Expenses incurred by the producers cooperatives that are not related to actual processing of goods and
tend to remain constant, cost even without production of goods.
A. Fixed Cost b. Total Cost c. Variable Cost d. Manufacturing Cost
15. Is done by any company to estimate future trends for the market / product etc. Also known as the
“statement of the future”.
a. Strategic Plan b. Forecasting c. Business plan d. All
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16. A Person or organizational unit that plays a role in the consummation of a transaction with the
marketer or an entity.
a. Costumer b. business Partner c. Chairperson d. Secretary
17. _______________________is the attitude displayed by a person while buying, consuming and
disposing a product or services, and it could be affected by several factors.
a. Coop member b. Consumer Behavior c. Chief Executive Officer d. All
18. In 1844, the Rochdale pioneer founded a successful cooperative store. In 1854, they also founded
the Rochdale Cooperative Manufacturing Society, extending their principles to production as well as
_______________.
a. Insurance b. sari sari store c. retail trading d. manufacturing
19. A decade later, they set up the __________________________ which was followed by its
counterpart in Scotland established in 1868-69, to exchange their products to other retail trading.
a. Cooperative Wholesale Society b. Mondragon Coop c. Coop Manufacturing Society
20. ______________________________ founded in town of Mondragon, Basque Country of Spain in

1950's, by Father José María Arizmendiarrieta.
a. Equitable Society of Rochdale Pioneers b. Raiffeisen Bank c. Mondragon Cooperative

Association d. Levi’s Quebec Canda
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UNIT TWO LESSON 2
Preparation of Marketing / Product and Fathenir Trade Exhibit Plan
1. Design a Marketing Plan for a particular cooperative business
2. Present the proposed marketing plan to intended coop beneficiary or
panel of evaluators
DEVELOPING FAIR TRADE
FAIR TRADE AND ITS IMPACTS IN DEVELOPING COMMUNITIES
1. Fair Trade is a global movement committed to paying fair prices in trade,
impacting producers in developing countries.
2. Fair trade Labelling International set international standards for products in
certifying production trade.
3. Fair Trade impacts the building of sustainable businesses by demanding fair
wages and treatment.
4. Fair Trade uses the money that may have been put toward high-priced goods to
build schools instead.
5. Fair Trade impacts workers, farmers and families.
6. Fair Trade is a model for alleviating global poverty.
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FORMAT OF FAIR-TRADE PLAN
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Do's and Dont's to Develop a successful Fair Trade Show
How to have a successful trade show? For almost every industry, trade shows are
wonderful opportunities for companies big or small to market their brand, showcase
products, network with fellow industry partners, and interact with customers or
prospective clients directly.
Do: Secure a convenient location in advance

It may sound like a timeworn phrase, for location is everything! For a venue that is
expected to house a large number of both exhibitors and attendees, it is important to
secure the booking beforehand to avoid mishaps — imaging how difficult it would be to
book a sizeable location last minute. Also, a convenient and strategic location is of utmost
importance, especially if you will be having industry professionals flying in for your event.
A convenient and easily located venue will boost your attendance and allow attendees to
commute and find their way to the trade show without any hassle.
Don’t: Underestimate the space needed for each booth

A spacious trade show booth with interactive displays While the prospect of having many
booths in participation sounds attractive for your event, overcrowding compromises the
event experience for both your exhibitors and attendees. In fact, floor space can be used
an incentive to encourage participation from companies, so be sure to ration enough
space for each booth. As the needs of each booth and how they would like to exhibit their
products or services will be different, check with participating companies to confirm the
amount of space required to set up a successful trade show booth. Also, take note to
leave enough room for attendees to move around without getting caught in human traffic.
Do: Provide food, beverages and entertainment

Finger food are a convenient alternative that enable easy handling Food and beverages
are integral to every event experience, especially after your attendees have spent a
considerable amount of time walking around and talking. It is also considerate to provide
catering for staff in participating booths, who do not have the luxury of leaving their
placements for meals. Buffets or sandwiches are especially convenient and offer flexibility
to have food on the go. Entertainment is also an important aspect today, with companies
investing in popular acts and multimedia resources to keep attendees hyped and
interested in the event. Employing relevant entertainment will also help you in drawing
your target audience to the event.
Don’t: Overspend your marketing budget

Keep a tight rein on your budget and avoid wasting it on unlikely audiences While
advertising and marketing are crucial and ensure attendance at your event, you’re going
to want to make the most of your budget. Make sure you don’t waste resources promoting
to audiences who are irrelevant or disinterested in your event! Consider your target
audience, their behaviors, and plan your marketing strategy around them. Through which
medium are you more likely to generate interest and response for your event? Is it through
social media or out-of-home advertising? While it may seem tempting to market the event
to a wide audience to encourage high participation rates, there is no point in attracting
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people who are unlikely to convert into leads for your participating booths. A low ROI for
these companies will translate into low participation for your next trade show.
Do: Set up your exhibit design around your goals

When you set clear goals, it will help you plan and design your tradeshow and also
measure your exhibiting success effectively. Everything should be considered in advance,
including your booth and exhibit corner design. Use branded items that fit in with your
company goals and show up strong at the trade show. Keep in mind that your booth
design will work to support you and your goals.
Don’t Neglect Budget Allocation

Helping you to not overspend your budget, to end with a high ROI, and to succeed in your
advertising and marketing of events, a detailed budget allocation comes in handy to
control the overall trade show expenditures. Try to distribute finances like this: 6% graphic
design and production, 10% exhibit design and decor construction, 11% other show
services, 35% for exhibit space, 16% staff travel/lodging/logistics, 10% exhibit shipping,
7% promotion, and 5% for other trade show-related items.
Do: Follow up after your event

As with every event, it is essential to follow up at the end of your trade show with your
vendors and attendees. This helps to build a positive relationship between your company
and its industry partners, and sets you up with a list of potential sponsors, participants,
and attendees for your next event. Offer you thanks to all involved parties for the success
of the trade show and ask for feedback so you can evaluate the event experience and
work on improving the subsequent one.
FAIR TRADE PRODUCTS

There are many different kinds of products that bear the various Fair-Trade labels. Most
of them are agricultural goods, such as coffee, tea, chocolate, herbs and spices, sugar,
flowers, and produce, such as bananas and mangoes. However, both Fair Trade
USA and Fair trade International certify some manufactured products as well, including
clothing, wine, and sports balls. Here’s a closer look at some of the most common Fair-
Trade Products (and where they’re sold) to help you form more socially responsible eating
and drinking habits.
The Fair-trade certification system covers a growing range of products, including

bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and
vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine.
Fairtrade International sets international fair-trade standards and supports fair trade
producers and cooperatives. Sixty percent of the fair-trade market revolves around food
products such as coffee, tea, cocoa, honey, and bananas.
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1. In a power point presentation or a separate sheet (hand written) or word
format prepare an additional report presentation and additional data on Unit 2
Lesson 1 and 2.
2. Prepare a whole marketing / product development plan for a fair trade. Using
the approved title on the green marketing
3. Present the product in a class organized fair trade plan in written or in a video
format.
REFERENCES:
1. http://sfp.ucdavis.edu/pubs/Family_Farm_Series/Marketing_556/coops/
2. Altman, M. (2009). History and Theory of Cooperatives. University of Newcastle.
https://www.researchgate.net/publication/228272144
3. http://www.cda.gov.ph/transparency/overview/historical-background
4. https://encyclopedia2.thefreedictionary.com/Producers+Cooperative
5. https://www.co-oplaw.org/co-op-basics/types/producer-cooperatives/
6. http://kooperatiba.ph/coop-cgm.php
7. BSC 2-1, 2-2,2-3 and 2-4 batch 2019-2020
Thank you very, much, God bless and Keep safe always….
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Villaruel Coop MKTG FTM 2020 V2 1

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2020-2021

Unit ONE LESSON 1 Introduction

The Rationale on studying Cooperative Marketing & Fair-Trade Movement

Large percentage of resources in the country is agriculture, we exported banana, sugar,

A cooperative is an autonomous association of persons united voluntarily to meet their

Still others are employed in accounting, commerce, marketing, and business

ACTIVITIES AND ASSESSMENT

Workers' production cooperatives are economic enterprises functioning in a market and

Reduced per-unit handling or processing costs

Business Scope and Performances

Selling at Market Price

Quality standardized goods

Cooperative wholesale business or interlending (cooperative bank)

INDUSTRIAL PRODUCERS COOPERATIVES (Irine Bartolome)

Association of workers and craftsmen, they Undertakes Collective production,

What are a Marketing Cooperatives?

History of Marketing Cooperatives

THE PRE-FORMATION PERIOD

THE JAPANESE OCCUPATION

THE AQUINO PRESIDENCY

Table 1: Updates on the Total Number of Registered Marketing Cooperatives

Table 2: Updates on the List of Operating or Active Marketing Cooperatives

YEAR OPERATING MARKETING COOP

1. Discuss marketing concept applied in the business of cooperatives

5 Marketing Concepts – Marketing Management Philosophies

Marketing Management Philosophies or 5 Marketing Concepts are;

Marketing Concepts – Marketing Management Philosophies

These concepts are described below;

Production Concept example:-

Marketing strategies are focused on making continuous product improvements.

Product Concept example: -

Selling Concept example: -

Marketing Concept example: -

Societal Marketing Concept example: -

Conclusion: Companies Follows a mix of Marketing Concepts in Real-world

Choosing the right Product Mix for Cooperatives

Determining Product Potential in changing, Market and Customer’s Preferences

5 Elements to determine Market Potential

ACTIVITY AND ASSESSMENT

Types of Market Segmentation

5 Primary Steps of Segmentation

Conduct Preliminary Research

Determine How to Segment your Market

Design your Study

Create your customer Segment

Test and Iterate

FACTORS AFFECTING PRODUCT GENERATION AND PRODUCTION

Factors Affecting Productivity of Land

Factors Affecting Productivity of Capital

He/She is the person who decides

Factors Affecting Productivity of Entrepreneurship

UNIT ONE LESSON 6

WHAT IS GREEN MARKETING?

Sustainable examples of green marketing

ACTIVITY AND ASSESSMENT

• Customers market and Behavior [issues] affecting customers behavior/buying

MARKET AND BUYER'S BEHAVIOUR

Customer Buying and Decision-Making Process

POST PURCHASE EVALUATION

INSTITUTIONAL AND ORGANIZATIONAL MARKET (COOP MARKET, INDUSTRIAL

Cooperative Market Agreement between a manufacturer and a member of

Population of the Country The population of the country also determines

Fair trade is an institutional arrangement designed to help producers in developing