Agribusiness and Marketing

1. Welcome to the Department ofEconomics and SociologyFACULTY OF BUSINESS ADMINISTRATION AND MANAGEMENT

2. Agribusiness and Marketing

3. Agribusiness Marketing The bridge that links producer & consumer

4. Agribusiness • A business that earns most or all of its revenues from agriculture. • An agribusiness tends to be a large-scale business operation and may dabble in farming, processing and manufacturing and the packaging and distribution of products.

5. Agribusiness is the business of agricultural production. • It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales.

6. What Is a Market? Buyers Sellers

7. What Is a Market? • A market is made up of buyers & sellers • Buyers are people who need or want a product or service and have the money to buy it. • A market must also have sellers who are willing & able to produce goods & services for sale.

8. Input market The input market includes items like metal, fertilizer, seed & wood. These types of products are purchased by producers. Product market This is the market where final products are sold to consumers. Eggs and potatoes from farms. Shoes from shoe stores. Two Types of Markets

9. Input markets Product markets Types of Agricultural Markets

10. What Is Marketing? • The process of determining the needs and wants of consumers & being able to satisfy those needs & wants. • Marketing includes all of the activities necessary to move a product from the producer to the consumer.

11. Agribusiness marketing: Agribusiness marketing has come to mean the marketing operations from the first handler to the final consumer-beginning with suppliers to farmers and covering producing, processing, and marketing to the final consumer.

12. Marketing utility: • Utility will refers to the value of marketing which adds to goods and services. • The marketing function will allow to create utility. There are five types of utilities, namely;

13. Form utility: To change the raw materials to finished products .For example, palm oil bunch to edible cooking oil. • Time utility: Making the products is available during the convenient hours. • Place utility: Making the products and services available in convenience location and place.

14. Possession utility: Making the exchange of goods and services between the buyers and sellers. • Information utility: To inform the buyers that the products exist, how to use it, the price and other related information of the products availability.

15. Difference between Market and Marketing

16. Marketing Philosophies • The five marketing philosophies help determine the management of marketing. • Companies approach and conduct business in different ways in order to achieve their organizational goals. •  The five competing concepts by which companies are guided in their marketing efforts are: 

17. The Production Concept • Kotler has defined the production concept as a philosophy that holds consumers who will favor those products that are available and highly affordable and therefore management should concentrate on improving production and distribution efficiency.

18. The Product Concept • The product concept as defined by Kotler holds that the consumer will favor those products that offer the most quality, performance and features and therefore the organization should devote its strategy to making continuous product improvement.

19. The Selling Concept • Kotler has defined the selling concept, which says that the consumer will not buy enough of the organization’s product unless the organization undertakes substantial selling and promotion efforts.

20. The Marketing Concept • The marketing concept as defined by Kotler is that the key to achieving organizational goal is for the organization to determine the needs and wants of the target market and to adapt itself to delivering the desired satisfaction more effectively than its competitors. The product concept and the selling concept have given way in many successful farms to the marketing concept.

21. The Societal Marketing Concept • Kotler has defined that the societal marketing concept holds that the organization’s task is to determine the needs, wants, and interest of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and society’s well-being.

22. The importance of Agribusiness • Agribusiness denotes the collective business activities that are performed from farm to fork. • It covers the supply of agricultural inputs, the production and transformation of agricultural products and their distribution to final consumers. • Agribusiness is one of the main generators of employment and income worldwide.

23. Agribusiness is characterized by raw materials that are mostly perishable, variable in quality and not regularly available. • The sector is subject to stringent regulatory controls on consumer safety, product quality and environmental protection. • Traditional production and distribution methods are being replaced by more closely coordinated and better planned linkages between agribusiness firms, farmers, retailers and others in the supply chains.

24. These are the central issues addressed by FAO's Agribusiness Development Programme, which advises on policies and strategies to improve agribusiness competitiveness, including fostering better coordination and linkages among business partners. • It also produces training materials, in particular for small farmers and for managers of agro-processing enterprises who need technical, managerial and business planning training.

25. Importance of Marketing: • 1.Marketing plays an important role in society. The total population of Bangladesh exceeds 16 crore people. Think about how many transactions are needed each day to feed, cloth, and shelter a population of this size.

26. The number is huge. And yet it all works quite well, partly because the well-developed Bangladeshi economic system efficiently distributes the output of farms and factories. • Marketing makes food available when we want it, in desired quantities, at accessible locations and in sanitary and convenient packages and forms (such as instant and frozen foods).

27. 2.Marketing is important to business. • The fundamental objectives of most business are survival, profits, and growth. • Marketing contributes directly to achieving these objectives. • Marketing includes the following activities, which are vital to business organizations:

28. assessing the wants and satisfactions of present and potential customers, designing and managing product offerings, determining prices and pricing policies, developing distribution strategies, and communicating with present and potential customers.

29. 3.Marketing offers outstanding career opportunities. • Marketing offers great career opportunities in such areas as professional selling, marketing research, advertising, retail buying, distribution management, product management, product development, and wholesaling.

30. Marketing career opportunities also exist in a variety of non-business organizations, including hospitals, museums, universities, the armed forces, and various government and social service agencies.

31. 4.Marketing affects our life every day. • Marketing plays a major role in our everyday life. We participate in the marketing process as a consumer of goods and services. • About half of every dollar we spend pays for marketing costs, such as marketing research, product development, packaging, transportation, storage, advertising, and sales expenses.

32. By developing a better understanding of marketing, we will become a better-informed consumer. We will better understand the buying process and be able to negotiate more effectively with sellers.

33. Thank You All ANUP KUMAR MANDAL Assistant Professor Department of Economics and Sociology