Transcript Introduction of agribusiness and marketing

Welcome to the Department of
Economics and Sociology
FACULTY OF
BUSINESS ADMINISTRATION AND MANAGEMENT
Agribusiness and Marketing
Agribusiness Marketing
The bridge that links producer & consumer
Agribusiness
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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.
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Agribusiness is the
agricultural production.
business
of

It includes agrichemicals, breeding, crop
production
(farming
and
contract
farming), distribution, farm machinery,
processing, and seed supply, as well as
marketing and retail sales.
What Is a Market?
Buyers
Sellers
What Is a Market?
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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.
Two Types of Markets
Input market
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The input market
includes items like
metal, fertilizer, seed &
wood.
These types of products
are purchased by
producers.
Product market
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This is the market where
final products are sold to
consumers.
Eggs and potatoes from
farms.
Shoes from shoe stores.
Types of Agricultural Markets
Input markets
Product markets
What Is Marketing?
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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.
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.
Marketing utility:
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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;
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Form utility: To change the raw
materials to finished products .For
example, palm oil bunch to edible
cooking oil.
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Time utility: Making the products is
available during the convenient hours.
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Place utility: Making the products and
services available in convenience location
and place.
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Possession
utility:
Making
the
exchange of goods and services between
the buyers and sellers.
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Information utility: To inform the
buyers that the products exist, how to
use it, the price and other related
information of the products availability.
Difference between Market and
Marketing
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:
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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.
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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.

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.

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.
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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.
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The importance of Agribusiness
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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.
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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.
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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.
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.
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The number is huge. And yet it all works
quite well, partly because the welldeveloped 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).
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:
 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.
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.
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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.
4.Marketing affects our life every
day.
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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.
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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.
Thank You All
ANUP KUMAR MANDAL
Assistant Professor
Department of Economics
and Sociology