AGR 513 Agricultural Products Marketing

AGR 513
AGRICULTURAL PRODUCTS MARKETING
CHAPTER 1
INTRODUCTION
Chapter 1 Outline
• Definition Of Agricultural Marketing
• Marketing Scope
• Marketing Module
• Marketing Utility
• Marketing Concept
• Importance Of Marketing
• Characteristics Of Products And Production
• National Agricultural Policy
QUIZ…
• Define AGRICULTURAL MARKETING in your point of
views !
• https://www.youtube.com/watch?
v=uCj6T9MkAGw&list=PLphIrQBPm1Nz-
99MMuEUAiEEShWdpMlrH
Definition of Product
Agricultural Marketing Definition
MARKETING SCOPE
MARKETING MODULE
• In 1960’s Mc Carthy introduced a module on
marketing. This module is known as Marketing
Module or Agricultural Marketing Circle. It consists of
3 circles namely:
• First Circle - Target customer

– Examples: Clothes made from silk which is high
quality products. The target consumer is of high
income and high class social status.
Continued..
• Second Circle - Marketing Mix or Four (4) P’s that

can be controlled via- Promotion, Price, Place,
Product / Services
Price -The amount of money that a consumer has to pay for the purchase of goods
and services
-Listing of prices, discounts, allowance, credit, periods of payments, sale of
products
Products -Goods and services that a producer offers to the target market in a certain
/services locations
-Quality, styles, characteristics, brand name, sizes, services etc
Place -Refers to the company's activities that make the product available to the target
consumers at a specific location or geographical vicinity (area)
-Channels, coverage, locations, inventories, transportation
Promotion -Activities that persuade the consumers to buy the products
-Publicity, sales enhancements, direct selling, web sites, advertisements
Example of E-Marketing
•https://www.alibaba.com/product-detail/High-qualit
y-gift-packaging-box-for_1337569225.html
Continued..
• Third Circle - Environmental Factors / macro that
cannot be controlled.
1) Political & Legal
• It will influence the marketing activities of firms and
organization and the countries economic growth. It
can be categorized :
– Monetary and fiscal policy
– Laws and regulation
– Relation of government and industries.
Continued..
2) Demographic
• Based on geographical regions, the characteristics
of the population, market segmentation and the
distribution on various aspects such as :
 Wants factors: Urban, town, rural areas. Age, education
levels. Sex and occupation. Race and religion. Family
lifestyle.
 Sociological factors :Groups either family or social group
 Physiological factors : Personality, attitude of buying
behavior
Continued..
3) Economic
3) Influence the level of macro economy from the
aspects of growth of gross national products,
inflation rate, consumption, money supply, credit
support, income and credit flexibility.
4) Technology
3) Influence the market by:
– Transportation (faster), Automobile ,Television
(advertising) , Retailers (purchasing), Packaging
(safe) , Advances in technology (new tech.) ,
Market receptiveness to technology (in
marketing process).
Continued..
5) Legal's & Regulation
5) Agricultural products are mostly substitute or complementary ,
bulky & easy to deteriorate.
6) E.g.: The application of excessive insecticides to vegetables & a
proper packaging of the products.
6) Social and Cultural
– Will influence the economic, political, & technology of certain
countries because of shifts in populations, better job opp.,
attitudes towards new tech., & trends in using computers
– Social aspects of the society can be seen through the various
changes of consumer products such as artificial to natural
ingredients, product safety or environment & consumerism
awareness.
MARKETING UTILITY
MARKETING CONCEPT
Orientation Concentration Purposes
towards
Producer Production. Producer does not require prior
Total output of products feedback of consumer wants and
offered for sale in the needs.
market. Profits gained form sale of products.
May occurred surplus of products in
the market
Consumer Consumer needs & Producer produce based on the

wants. feedback of the consumer.
Total output of products Profit gained from sale of products.
offered for sale depends Surplus of products might not occur
on consumer’s wants and in the market.
needs.
IMPORTANCE OF MARKETING
Continued..
ROLE OF MARKETING
CHARACTERISTICS OF THE PRODUCTS
1) A raw material
 Output largely a raw material
 E.g. livestock to meat, wheat to cereal
 From farm product to food
 Successful farmers must be more market
oriented
Continued..
2) Bulky and perishable product
 Agricultural products are more bulky and
perishable
 Bulk effect marketing functions with physical
handling
 How to reduce bulkiness?
 Transport high value or value added instead of raw
material
 This perishable products require speedy handling and
often special refrigeration
Continued..
3) Quality variation
 Varies from year to year and season to season
 Standardization and grading to facilitate the sorting of
different variation in grades
 Variation in quality and prices may due to:
 Level of grading of products
 Natural disasters such as earthquake, floods
 Changing of marketing strategies, demand and supplies
 Management in efficiencies in dealing with crops
practices
 How to control quality variation?
 Use the same planting material
CHARACTERISTICS OF PRODUCTIONS
Continued..
Continued..
Continued..
Continued..
HOW TO OVERCOME THE PROBLEMS
NATIONAL AGRICULTURAL POLICY (NAP)
Three NAP
• Since 1984, three NAP were formulated to develop
agricultural sector:
• Emphasize on NAP 1 (1984-1991)
– To develop the export oriented sector
• NAP 2 (1992-1998)
• NAP 3 (1998-2010)
– Increasing competitiveness of the agricultural
sector
– Maximizing income through optimum utilization
of resources
- being in the original
position
Strong growth in exports
of electronics & electrical
products to US
The value of the ringgit dropped from MYR 2.50 per USD to at one point, MYR 4.80
per USD.
Malaysia refused economic aid packages from the International Monetary Fund (IMF)
and the World Bank and by refusing aid from IMF, Malaysia was not affected to the
same degree in the Asian Financial Crisis as Indonesia, Thailand, and the Philippines.
Specific Objective Of NAP 3
• Enhancing food security
• Increasing productivity & competitiveness of the
sector
• Deepen linkages with others sector
• Create new sources of growth
• Adopting sustainable development, utilization and
management of natural resources
Strategies for achieving the NAP objectives
• Optimizing The Resources Use

– Land, labor, capital and management are to be
utilized effectively.
• Human Resources Development
– The use of technologies in the agricultural sectors
e.g. mechanization in planting and harvesting
(paddy) will improved efficiency in used of labor.
– Manpower training is required to handle such
cases, efficient agribusiness in marketing, and
agro-based processing.
Continued..
• Enhancement Of Research And Development And
Technological Diffusion
– Would maintained the competitiveness of the
agricultural sectors e.g. rubber, oil palm, rice and
other commercial products & must be market
driven, commercially orientated and
environmentally friendly.
• Greater Role Of The Private Sectors
– Incentives, promotion and packages will enhanced
the sale of products for export purposes.
Continued..
• Reformed Marketing Strategies of the producers
– Products should be view as commodity and plays
it’s role in the export of the products to various
countries like Middle East, African, Latin America
and China as traditionally to the U.S.A.
• Expanded Food Production
– The finished products should be supplied first for
the demand of the domestic populations.
– The products produced must be competitive in
nature.
Continued..
• Development Of Viable And Self-Reliant Farmers
Institution
– The needs of this institution is highly required to
reduce or less the burden of the farmers.
– Some farmers are incapable to supply their
products because lack of facilities such as financial
strength, marketing, storage and transportation
purposes.
NATIONAL AGRO-FOOD POLICY
2011-2020
NATIONAL COMMODITY POLICY
2011-2020
THE END

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AGR 513

AGRICULTURAL PRODUCTS MARKETING

• First Circle - Target customer

• Second Circle - Marketing Mix or Four (4) P’s that

Consumer Consumer needs & Producer produce based on the

• Optimizing The Resources Use

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