Commercial Geography

Lecture # 1
 Introduction
Faculty: Rana Mubasher
Qualification: MS, HRM MBA,
Marketing
M-Com , Finance
Visiting Faculty Member, Business Consultant &
Trainer

E-mail: bizvisionmarketing@yahoo.com
Contact # 03002125404
 Evaluation Scheme
• Quizzes 05
marks
• Assignment & Project 10 marks
• Mid-Term 10 marks
• Attendance 05 marks
• Final Term 10 marks
Total 40
marks
 Books Recommended
Commercial Geography
By Yousuf Rehmani

Pakistan Geography, Economy & People.

By Fazle Karim Khan
Oxford Publisher (Latest Edition)
 Students Introduction
1. Your Name
2. Last Qualification
3. Career Objective
4. Reason for Joining BS Program
5. Hobbies
 Geography meaning

• The study of the physical features of the earth

and its atmosphere, and of human activity as it
affects and is affected by these, including the
distribution of populations and resources and
political and economic activities.
• The nature and relative arrangement of places
and physical features.
Definition of Geography
• Geography is the study of Earth's landscapes,
peoples, places and environments. It is, quite
simply, about the world in which we live.

• Geography is unique in bridging the social

sciences (human geography) with the natural
sciences (physical geography).
Commercial Geography Definition

“Geography that deals with commodities

according to their places of origin and their
paths of transportation.”
 Importance of Studying Commercial
Geography
• Students,
• Traders,
• Manufacturers,
• Consultants,
• Importers,
• Exporters
• Government
 Importance of Studying Commercial
Geography for Students
It help the students to select the right career path
for their future so that they can become a good
employee, banker, trader or manufacturer.
Importance of Studying Commercial
Geography For Trader
Trader can be aware of different products
available in the country and in other parts of the
world as per their required quantity, quality and
price.
Importance of Studying Commercial
Geography for Manufacturers

It help the manufacturers to explore better,

cheaper and in time availability of raw material
domestically or internationally.
 Importance of Studying Commercial
Geography for Government
Commercial geography help them to know the
importance of different resources available in
the country and in other parts of the world to
enable them plan to explore / develop more
resources where they have competitive edge and
allow imports from those countries where
domestic needs can be served in low prices.
 Primary Activities

“ Activities directly related to the extraction/use of

natural resources are called primary activities”
Examples of Activities

• Fishing
• Hunting
Examples of primary Activities
• Fishing
• Hunting
• Lumbering
• Agricultural Activities
• Mining
• Forestry
 Agriculture
“The science, art, or practice of cultivating the
soil, producing crops, and raising livestock and
in varying degrees the preparation and
marketing of the resulting products cleared the
land to use it for agriculture.”
 Advent of Agriculture
• For most of human history, we were hunter-
gatherers. And then,
• About 10,000 years ago, we began to
domesticate plants and animals as a way to make
our food supply more accessible and predictable.
• In many ways, the birth of agriculture can be
defined as the moment we stopped chasing our
food and started raising it.
 Agriculture In Recent Time
• Agriculture has reshaped human civilization.

• For the most part, these changes have been good

ones.

• But as we enter a new era of human

history, agriculture faces new challenges and new
responsibilities.
 Origin of Agriculture

• Around 8,500 BC, humans in the

Fertile Crescent (an area that
stretches through modern-day Egypt,
Israel, Turkey and Iraq) slowly
started to plant grains, instead of
gathering them in the wild.
Origin of Agriculture (Cont)
• By 7,000 BC, they also began to
domesticate animals such as sheep, pigs
and goats. A thousand years later, they
domesticated cattle.
Origin of Agriculture (Cont)
• Before the advent of agriculture, humans were
nomadic, traveling constantly in search of wild
animals and grain. With the rise of agriculture as
a predictable, centralized source of food, they
suddenly had an incentive to stay put. Cities
began to form.
• In this way, agriculture began to change not only
the human diet, but human civilization as well.
Gradual Advancement
• Over the next 8,500 years, agriculture evolved
relatively slowly. Through trial and error,
farmers around the world began to breed better
plants.
• They naturally noticed that not all plants within
a species were the same. Some grew larger,
tasted better or were easier to grind into meal.
They simply began to save seeds from the best
plants and sow them for the next year’s harvest.
Gradual Advancement (Cont)
• Over hundreds of generations, this led to the
transformation of wild plants into the larger,
tastier grains and vegetables we know today.
• During the Bronze and Iron Ages, stone and
wooden tools were replaced by stronger, more
efficient metal tools. However, farming
remained a time- and labor-intensive pursuit
that involved nearly 80% of the world’s
population.
•
Gradual Advancement (Cont)
• Agriculture represents the single largest human use
of land and water. Therefore, it has a greater
potential impact on our planet than any other
human endeavor.
• At the same time, agriculture is one of the first
things to be affected by changes in our environment.
Rising temperatures, extreme weather, drought—
these are only three of the many issues agriculture
must deal with in order to feed mankind. Quite
simply, if you care about the environment, you have
to care about agriculture. And vice versa.
 Definition of animal husbandry

“A branch of agriculture concerned with the

production and care of domestic animals”
Elements of Animal Husbandry
What is it ?
It is the branch of agriculture concerned with the
breeding of farm animals:

Cattle
Pigs
Sheep
Horses
Poultry
History of Husbandry
Domestication of wild animals started in the
Prehistoric period, and they were:
Sheep (northern Iraq)
Goats (same region)
Modern Development
Selective breeding
Advances in animal nutrition
Vet medicine
Artificial insemination
Embryo transfer
Farm Specialists
Breeders
Milkers
Feeders
Health specialists
Vets
Cattle Raising
Cattle have been domesticated since the Neolithic
period (After Stone age)
The Cattle Family
Cow
Milking cow
Heifer (Give no birth or just one)
Milker
Calf
Ox
Bull
Breeds of Cattle
Dairy cattle

Holstein Black/White Pezzata rossa

Brown Swiss
Farming Subsistence
• Farming subsistence is a self-sufficiency
farming system in which the farmers focus on
growing enough food to feed themselves and
their entire families.

• The output is mostly for local requirements with

little or no surplus trade.
 Industry

“An industry is a group of manufacturers or

businesses that produce a particular kind of goods
or services”
 Industrialization

“Industrialization is the process by which an

economy is transformed from a primarily
agricultural production to one based on the
manufacturing of goods.”
 History of Industrialization

• During the 20th century, gasoline-powered

machines began to replace traditional, horse-
drawn equipment.

• This, combined with advancements in fertilizer

and pesticide technology after World War II,
allowed agricultural productivity to take another
leap (Rise) forward.
History of Industrialization (Cont)
• The new technological efficiencies meant
farmers could manage more land.
• This led to fewer, larger farms.
• For developed countries, it also led to a shift in
the labor force.
• In the United States, for example, the percentage
of the workforce engaged in farming dropped
from 40% (in 1900), to just 2% (in 2000).
History of Industrialization (Cont)

• Because fewer of us lived on farms, it became

easier to forget how crops were grown, processed
and shipped.

• In the more developed countries, at least, food

became an available, affordable commodity that
came from “somewhere else.”
 Handicraft Definition

"Products which are produced either completely

by hand or with the help of tools. Mechanical
tools may be used as long as the direct manual
contribution of the artisan remains the most
substantial component of the finished product”
Importance of Handicraft Industry
• The Cultural Importance: Handicrafts play
very important role in representing the culture
and traditions of any country or region.
Handicrafts are a substantial medium to
preserve of rich traditional art, heritage and
culture, traditional skills and talents which are
associated with people's lifestyle and history.
Importance of Handicraft Industry (Cont)
• The Economic Importance: Handicrafts are
hugely important in terms of economic
development. They provide ample opportunities
for employment even with low capital
investments and become a prominent medium
for foreign earnings
Importance of Handicraft Industry (Cont)
During recent years, the importance of handicrafts
has been surged due to their cultural and
financial values. The small scale industries -
including handicrafts can play a major role in
the development of the economy of both
developed and the developing countries equally.
• In countries such as India and China,
handicrafts are as high as the mechanized
products in quality and volume, and are a major
source of their foreign earnings. These countries
are focusing on the development of handicraft
industry, in order to strengthen the economy.
Importance of Handicraft Industry (Cont)
handicrafts industry is highly labor intensive,
cottage based and decentralized industry. The
industry is spread all over the country mainly in
rural and urban areas.
Importance of Handicraft Industry (Cont)
The Handicraft sector is highly creative sector and
produces large variety of crafts products. This
industry is localized segment of the domestic
and international market.
Importance of Handicraft Industry (Cont)
Though Handicraft industry is considered a
cottage industry, but it has evolved as one of the
major revenue generator over the years. There
has been consistent growth of over few years and
the industry has evolved as one of the major
contributor for export and foreign revenue
generation.
Importance of Handicraft Industry (Cont)
There is huge demand for the Handicraft products
in both national and international market. To
match the demand and supply with quality,
there is need to have greater technological
support and innovativeness with the uniqueness
in industry.
 Classification of Handicraft Industry
• Metal ware,
• Wood ware,
• Hand printed textiles,
• Embroidered and crocheted goods,
• Shawls, Carpets,
• Bamboo products
• Zari goods,
• Imitation jewellery
• Paintings,
• Earthenware,
• Jute products,
• Marble Sculpture,
• Bronze Sculpture
• Leather Products and
• other miscellaneous handicrafts.
 Post-industrialization

• Between 1900 and 2012, the world’s population

grew from 1.6 billion to more than 7 billion. In
1700, only 7% of the earth’s surface was used for
agriculture. Today it is more than 40%. And only
a portion the land that is left is currently suitable
for growing crops.
Post-industrialization (Con)

• Clearly, agriculture is at a crossroads. The world

needs to produce more food than ever before,
while conserving the limited resources we have
available. Where we go from here will require
the ingenuity and cooperation of farmers,
companies, governments, universities and
citizens alike.
 Skills Required for Manufacturing

• Attention to Detail.
• Critical Thinking.
• Strong Communication.
• Interest and Aptitude for Technology.
• Dependability.
• Ability to be Cross-Trained.
 Skills Required for Manufacturing (Cont)

• Ability to work on a diverse team.

• STEM skills.
• Flexibility.
• Big-time problem solving.
• Foreign language.
Important factors to consider before starting a manufacturing
business

• Demand for your product

• Competition from other manufacturers
• Market Growth
• Setup costs
• Previous experience, knowledge and
qualifications
• Finance available and finance options
• Availability of workforce
Important factors to consider before starting a manufacturing
business (Cont)

• Business location
• Rules and regulations
• Supplies
• Equipment
• Factor overheads
• Availability of Ancillary services
• Threat of Substitutes
• Break Even.
 Nature of products
• Durable Products
• Nondurable Products
• Pure Services
 Classification
• Consumer Products
• Industrial Products
• Persons, Organizations, Ideas & Places
 Types of Products
• Consumer products
• Industrial products
• Persons, Organizations, Ideas & Places
Consumer Products
• Convenience Products
• Shopping Products:
• Specialty Products:
• Unsought Products
 Convenience Products

Those consumer products that are purchased immediately &

frequently with little efforts and comparison are called
convenience products. Examples of convenience products
include the following.
• Candy
• Newspapers
• Soap
• Fast Food etc.
The convenience products are placed at the front locations of
the stores in abundance quantity so that they are easily
available to the customers. The price of these products is
kept lower.
 Shopping Products
This type of product is purchased less frequently & careful comparison
is made by the customer on the price, quality, sustainability & style.
In case of purchase of shopping products, increased time & effort is
made by the customers in collection of information & comparison
making. Following are some of examples of shopping products.
• Clothing
• Furniture
• Major Appliances
• Used Cars
• Hotel & Motel Services
These products are distributed in fewer outlets by the marketer along
with the strong sales support services that assist customers in their
comparison making.
 Specialty Products
Specialty products are those consumer products that have
brand identification or unique characteristics and an
important group of customers are happy to purchase these
products. Following are some of examples of specialty
products.
• Specific brand & kinds of cars
• Photographic equipment with high price
• Designer clothes
• The services of legal or medical specialist
The customers of such products can make enough effort with
them for reaching relevant dealers. However, they do not
compare the specialty products normally.
 Unsought Products

• Those consumer products that are either not known to

the customers or they are known, but customers do
not usually consider them to purchase. The important
innovations are usually included in the category of
unsought products because the customers get the
awareness through advertisement. Following are the
examples of unsought products.
• Life Insurance
• Blood donation to Red Cross
A lot of personal selling, advertising & marketing efforts
are required for unsought products.
 Industrial products

Those products that are purchased that are buying

for further processing or for use in operating a
business are called industrial products.
 Industrial Products

• Raw Material
• Parts
• Capital Goods
• Supplies
• Industrial Services
 Raw Material

• Raw materials, natural products & manufactured

materials are included in the category of
material.

• Farm products & natural products are included

in raw material part like cotton, wheat,
vegetables, fruits, fish, crude petroleum, iron etc.
 Spare Parts

In any business setup machinery and equipments

are frequently used that’s why parts of these
equipment are also considered as industrial
goods.
 Capital Goods

Those industrial products that assist the

production & operation of customer are called
capital items like accessory equipment’s &
installations.
 Supplies
These includes items like office stationary,
lubricants and other small things.
 Industrial Services

It includes repair and maintenance services of

machinery and equipments
 Persons, Organizations, Ideas & Places
The marketing entities named persons, organizations,
ideas & places are also included in the category of
products recently. The organization sells itself by
carrying out certain activities like creating,
maintaining & changing the behavior & attitude of
customers for an organization. Similarly, people also
perform certain activities for development,
maintenance & change of behavior & attitude
towards certain people through person marketing.
Similarly the ideas & places are also regarded as
products.
 .

Questions
 .

Thank You
 Quiz # 1
• Define Commercial Geography. [01]
• Briefly explain the importance of commercial
Geography for different group of people. [09]