AGRICULTURAL

MARKETING
 INTRODUCTION

Agricultural marketing is the systematic process of

planning, executing, and controlling the flow of
agricultural products from producers to consumers. It
encompasses a range of activities including production,
processing, transportation, storage, and distribution, all
of which are integral to ensuring a smooth transition of
agricultural goods from farms to end-users.
 INTRODUCTION

Agricultural Marketing comprises various activities starting

from the cultivation process till the retailing process. Some
of those activities are:
•Production planning of the crop to be cultivated by the
farmers.
•Cropping, cultivation. and harvesting of the crops.
•Stocking the final crop produced by the farmers.
•Grading and transportation.
•Final distribution to the wholessalers.
 INTRODUCTION

The agricultural products are not only used for domestic purpose but are
also exported outside the country based on the demand placed by a country.
The marketing chain of agriculture sectors involves:
•Farmers
•Suppliers
• Functionaries
•importers
•exporters
•external beneficiaries and;
•costumer
 AGRICULTURAL
MARKETING

Agricultural marketing is a process which starts with a

decision to produce saleable farm commodity, and it involves
all the aspects of market structure or system, both
functional and institutional, based on technical and economic
considerations, and includes pre- and post-harvest
operations, assembling, grading, storage, transportation, and
distribution (National Commission on agriculture X11I Report,
1976).
 Importance of Agricultural
Marketing
Agricultural marketing plays an important role not only in stimulating production and
consumption, but also in accelerating the pace of economic development. It is the most
important multiplier of agricultural development.
1. Optimization of Resource use and Output Management-
An efficient agricultural marketing system leads to the optimization of resource use and output
management.
2. Increase in Farm Income-
An efficient marketing system ensures higher levels of income for the farmers reducing the
number of middlemen or by restricting the cost of marketing services
and the malpractices, in the marketing of farm products.
 Importance of Agricultural
Marketing
3. Widening of Markets-
An efficient and well-knot marketing system widens the market for the products by taking
them to remote corners both within and outside the country, i.e., to areas far away from
the production points.
4. Growth of Agro-based Industries-
An improved and efficient system of agricultural marketing helps in the growth of agro-
based industries and stimulates the overall development process of the economy.
5. Price Signals-
An efficient marketing system helps the farmers in planning their production in
accordance with the needs of the economy.
6. Adoption and Spread of New Technology-
The marketing system helps the farmers in the adoption of new scientific and technical
knowledge.
 Importance of Agricultural
Marketing
10. Creation of Utility
Marketing is productive, and is as necessary as the farm production. It
is, in fact, a part of production itself, for production is complete only
when the
product reaches a place in the form and at the time required by the
consumers.
The following four types of utilities of the pruct are created by
marketing:
a.Form Utility
b. Place Utility
c.Time Utility
d. Possession Utility
 Objective and Scope of the Study of
Agricultural Marketing

The study of agricultural marketing delves into the activities,

agencies, and policies that govern the movement of agricultural
products from farms to consumers, while also encompassing the
process of farmers procuring farm inputs.
Objective:
The primary objective is to bridge the gap between producers
(farmers) and consumers. It aims to ensure the efficient and
profitable flow of agricultural products and inputs through
various marketing activities and strategies .
Scope:

Movement of Agricultural Products: This includes the

entire journey of products, from harvesting and processing
to storage, transportation, and distribution, reaching the final
consumer.
Scope:

●Procurement of Farm Inputs: This involves

understanding the demand for seeds, fertilizers,
pesticides, and other resources needed by farmers,
and ensuring their efficient and timely supply.
Scope:
●Marketing Functions: The study analyzes various
marketing functions like grading, packaging, branding,
pricing, promotion, and distribution of agricultural
products.
●Marketing Agencies: It explores the roles of different
intermediaries involved in the marketing chain, such as
wholesalers, retailers, processors, and government
agencies
Scope:

●Marketing Policies: This includes understanding

the impact of various government policies and
regulations on agricultural marketing, such as
pricing policies, trade agreements, and subsidies.
Scope:

Emerging Trends: The field also examines

and adapts to current trends in the
agricultural sector, such as direct marketing,
organic farming, and e-commerce.
 APPLICATION OF MARKETING
IN AGRICULTURE

There are various components of marketing

mix which assumed to be under the control of
firm. The main objective of having marketing
involved in agricultural sector is that this
marketing mix can be augmented for product
or service.
 APPLICATION OF MARKETING
IN AGRICULTURE

Various assumptions are made implementing any

marketing strategy when promoting products. This is
important because it creates balance between:
(a) The requirements and proficiencies of the firm.
(b) Competing firms' marketing mix.
(c) The choices made by the costumers.
 APPLICATION OF MARKETING
IN AGRICULTURE

Another assumption about marketing is that

the part or level of an agri-business or
marketing system where a firm's costumers
"go to market" is always apparent. Whether
a firm should ve define its costumers as the
final, retail-level costumers, or as some
'organizational' market in between.
 APPLICATION OF MARKETING
IN AGRICULTURE

Time and effort put into identifying who

is the costumer is time and effort well
spent.
A further assumption that has
developed with the evolution of of the
marketing mix notion.
 Challenges in agricultural Marketing
in developong countries

Lack of Transportation Facility: In developing countriee, the

remote areas and their infrastructure is not up to the mark and
there are places which extremely negligent and do not have road
facilities at all.
Poor Quality of Product: Due to lack of knowldege and lack of
resources, there are many farmers in developing countries who
fail to use improved seeds and fertilizers for their crops.
Role of Middleman: They take huge share of farmer's income
and let farmers suffer the load of loans.
 Challenges in agricultural Marketing
in developong countries

Lack of grading: In case of agricultural commodities, the mixing

of good and bad products is very common in developing countries
like India and Pakistan. There is no proper method of grading
these crops.
Lack of Credit Facilities: In many states of developing
countries , no initiatives is taken to provide effective credit
facilities to the poor farmers.
Problems of Produce Collection: The collection of produce
from small farmers is very expensive and a difficult process.
Lack of storage Facility: Storage facilities are highly
recommended and are required as they help in
preserving the food products.
Weight and Measures: There are people who misinfor
customers by misleading them in context to the weight
and measures of the product.
Market News: The literacy rate of farmers in
developing countries is comparably lower than the
developed countries.
 Characteristics of Agricultural
Products

The subject of agricultural marketing has been treated as separate descipline

because agricultural commodities possess special characteristics than
manufactured commodities.
1. Perishability of the product
2. Seasonality of production Farm products are produced in particular season of
the year.
3. Bulkiness of the products
4. Variation in quality products
5. Irregular supply of agricultural products
6. Small size of holding ans scattered production
7. Production pricing
8. Processing
 MARKETING MIX

Marketing mix is describe as the features of

a product or commodity or any service that
are presented by a firm to its costumers by
adopting various marketing strategies. Those
four Ps of marketing mix are product,
promotion, place (distribution), and price.
 MARKETING MIX

Product: All dimensions of goods, services, and combination

of both which a firm produces, is known as product.
Promotion: Can be defined as the efforts made by a firm
through various methods of communication to reach
costumers. Promotion includes:
•Advertising
•Personal selling
•Public relations
•Sales promotion
 MARKETING MIX

To promote any product, there is a clear intention

behind a firm. The two intentions are:
1. The provision of information designed to help
costumers make choices.
2. The 'pushing' of a product by creating incentives to
purchase, including what is called, in law, puffery
which emphasizes the positive features of a brand.
 MARKETING MIX

Price: The amount paid by the costumer in

return of the agricultural products purchased
from the market.
Place: For marketing to sell products, it is
important to have a place or a distribution
network.
Thank You