Marketing refers to all activities, which are associated with flow of goods and services from production to consumption.
What are the activities involved in marketing of Agricultural products?
• Buying and assembling
• Transporting and distributing
• Packing
• Storage
• Processing
• Grading
• Packaging
• Collecting market information.
• Selling
• Financing
• Bearing risks.
What is a market?
A place/space where commodities and services are bought and sold .
The main agricultural products –commonly found in markets include- Vegetables, Cereals, Fruits etc
Market segmentation: This basically involves classification of customers in terms of product demand for example incase of tomatoes who are the main consumers?
-Institutions (Schools, Colleges, hotels,)
-Age group-Young, old, and teenage -Gender (Male, female)
-Locality (Urban, rural)
Market segmentation clearly defines the main consumers of an intended product.
Quality aspects to look for:
What does your market require in terms of size, shape, colour, texture etc?
When to sell our products? This question can be answered by carrying out a market information research.
The following are basic questions one would seek answers for;
When is the product in high supply?
What are the prices like during the time of high supply?
When is the supply at its lowest level?
How are the prices like during the low supply?
What factors influence the supply of the product ?
Can these factors be influenced by human action or not ?
How do we ensure that there is demand for the product?
The following principles are helpful when planning to sell our products -
Timing: Do not sell because your neighbor is selling! Sell when there are few suppliers of the product in question.
Diversify the market: Do look for alternative market segmentation; avoid crowding in one market space.
Diversify products: Study the main products in the market. Come up with products that others are not supplying.
Value addition: Value addition comes in various forms- packaging, processing or even selling the product in combination with others ( Peeling potatoes, slicing kales, good paper packages).
Pricing: Pricing is a very important aspect in marketing, how do you determine the prices?
Costs to consider:- Production, transportation, value addition, etc
What is the price being offered for the same product to other suppliers?
Too a high price or too low price might necessarily yield the desired results.
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