AGRICULTURAL

MARKETING:
AN INTRODUCTION
 Modern Day Marketing Concept
 The Production Concept
 The Product Concept

 The Selling Concept

 The Marketing Concept

 The Societal Marketing Concept

The Production Concept is based on the assumption

that the consumers prefer those products which are
both accessible and affordable. The business
organizations mainly focus on bulk production
through improvements in production efficiency and
product distribution system.
 Modern Day Marketing Concept
 The Product Concept assumes that products of
finest quality for a given price are only preferred
by the consumers. Hence, the firms should
produce superior quality products and devote all
their main resources for improving product
quality.
 The Selling Concept lays emphasis on selling
efforts for stimulating and generating customer
interest in the products. This concept
necessitates the use of sales force for selling the
products and during the process the firms may
use fair tactics.
Modern Day Marketing Concept
 The Marketing Concept revolves around
satisfaction of customer needs and wants. The
firms should tailor their marketing program by
determining needs and aspirations of the target
market. The customer satisfaction is considered
key to generate profits for the organization.
 The Societal Marketing Concept is a broadened
version of the marketing concept. It urges upon
the companies to pay special attention to
improvement in public welfare while fulfilling the
needs and wants of target market.
Marketing
 Old Concept:
Producer’s oriented / Supply driven
 Modern Concept:
Consumer’s oriented / Demand driven
It is a total system of interacting business
activities designed to plan, price, promote and
distribute want satisfying good and services to
target markets in order to achieve organizational
objectives.
 Agricultural Marketing
 According to Thomson, the study of agricultural marketing
comprises all the operations, and the agencies conducting
them, involved in the movements of farm produced foods,
raw materials and their derivatives such as textiles, from
the farm to the final consumers, and the effects of such
operations on farmers, middlemen and consumers.

 Acharya and Agarwal defined agricultural marketing as

comprising of all activities involved in supply of farm
inputs to the farmers and movements of agricultural
products from the farms to the consumers.
 Agricultural Marketing
 First definition mainly focuses on product side
of agricultural market and does not consider the
farm supplies whereas second definition also
does not adequately cover the scope of
agricultural marketing.
 “Agricultural Marketing embraces all business
activities involved in production planning,
transformations, grading, storing, transportation
and distribution of goods and services related to
agriculture as desired by agricultural
producers(farmers)and ultimate consumers”
 The Market

 A place or area where buyer and sellers interact to

achieve their objectives.
 Indicates an aggregate demand of potential buyers
of a specific commodity or services
 After a commodity name
 The business activities that direct the movement
of good and services from producers to
consumers
 An exchange process accompanied by the price
making mechanism constitutes a market
Types of Market
 On the base of location
 On the base of regulation
 On the base of nature of competition
 On the basis of End users
 On the basis of products
 On the basis of coverage
On the basis of location
 Primary market
 Secondary market
 Retail markets
 Terminal markets
 On the basis of location

PRIMARY MARKETS
• These are markets at primary level such as a village

market, roadside market and small town market.

• The farmers bring their produce to these markets and

sell it to itinerant dealer, a village shopkeeper, a broker

representing some commission agent or a
representative of a processor or manufacturer. T
• he main reasons for his selling in these markets are

small stock of produce, urgent need of cash and non

availability of transport facilities.
On the basis of location
SECONDARY MARKETS
• Secondary or wholes markets carry out

the function of assembling agricultural

produces and disposing off it to
consumers.
RETAIL MARKET
 The small shopkeepers and street venders who
purchase agricultural produce from primary
and secondary markets in bulk and sell it in
small quantities to the consumers through
On the basis of location
Terminal Market

 A market which is mainly involve in export of

commodities, is called terminal market.
 These are generally situated in large urban
centers
 Karachi with sea port and Lahore, Peshawar,
and Faisalabad with dry port
On the basis of Regulation
 a) Free Market
Free market is a market where forces of demand
and supply operate freely and, hence, perfect
competition prevails in that market. There is no
restriction on price setting mechanism.

 b) Regulated Market
A market managed by an elected committee or
local authorities is known as a regulated market.
On the basis of Nature of
competition
 Perfect market
 Imperfect market
Perfect market
• A market is said to be perfect where following
four conditions for perfect competition prevail.
1. Large number of buyers and sellers.
2. Homogeneous products
3. No constraint on entry or exit and
4. Consumers and Producers as price taker
Imperfect Market
 An imperfect market is a market where one
more conditions of perfect competitions are
lacking e.g. Monopoly, Monopolistic
Competition, Oligopoly etc.
On the basis of end users
 Consumers market .
 Industrial martket
On the basis of end users

Consumers market . Industrial market

These markets consist  Industrial and

of individuals and instutions that buy
households who buy products for further
products for their processing from
direct consumption industrial market
On the basis of products traded

Factor(input)market Product(output)market

 These are the • In product markets,

market where agricultural produce is
factors used for traded.
agricultural
production are • Grain markets, fruit
bought and sold. markets, vegetables
 Pesticides ,fertilser , markets etc.
seed. Farm
machinery and
labour market.
On The Basis Of Coverage

Domestic Markets International Markets

 Domestic markets  International

provide goods & markets serve he
services to the foreign consumers
domestic & are characterized
consumers only. by intense
 Domestic markets completion in terms
include local, of price & quality.
regional & national
markets
Role Of Agricultural Marketing In
Economic Development
A well developed agricultural marketing sector may
contribute to economic development of a country in
following ways.
•An efficient agricultural marketing system has a tangible
impact on marketable and marketed output of the farmers
and hence contributes to overall national income of a
country.
•Assist in providing capital and necessary business skills
for trading to the entrepreneurs.
•It modernize farm production structure through
development.
•It improves the efficiency of resource allocation.

•It improves market organization transmits correct market

responses and minimizes the scope of distorted market
signals.
Factors Responsible For The
Neglect OF Agricultural Marketing
• The gains from marketing improvements
cannot be quantified objectively and concretely.
• Marketing is sometimes criticized as being
inefficient and is often accused of creating
high profits for the intermediates between
producer and consumer.
• The development of agricultural marketing
system requires direct investment of money
which resource constrained economize cannot
afford.