AMT: Lesson-27 Agricultural Marketing Functions

Hence, it is important to store the goods at a safe place during this time lag. Any negligence during this period will result in damage to the product and losses. Warehouse helps to maintain a smooth flow of goods and to stabilize the prices in the market. This function is performed by retailers, wholesalers and manufacturers. An improved and efficient system of agricultural marketing helps in the growth of agro-based industries and stimulates the overall development process of the economy. Many industries like cotton, sugar, edible oils, food processing and jute depend on agriculture for the supply of raw materials.

Reducing cost- Like the terms and conditions of purchase, sales and payments hear this will lead to a reduction in cost during a transaction. The marketing channel plays an important role in order to make and choose the floor of the product in the ever-growing market. Grading before sale enables farmers to get a higher price for their produce. It facilitates the handling of the commodity, specially such fruits as apples, mangoes, etc., during storage and transportation.

which function helps in place utility

Manufacturer ‡Wholesaler ‡Agent ‡ Retailer ‡Consumer is an example for three level channel. Manufacturer‡ Retailer ‡Consumer is an example for one level channels. A Retailer is one who sells to the ultimate consumer. What is the difference between Marketing and Sales Sales focuses on selling existing products to customers and driver volumes through promotional means. Marketing focuses on products that meet customer needs through marketing programs that enhances customer satisfaction.

What is Marketing and Marketing Strategy?

A group of people specializing in food production and identified as farmers shoulder the noble responsibility of feeding the entire world. Hence there is no need to emphasis that food produced at specific places has to be distributed to other places of consumption. It is in this juncture, marketing plays its vital role. It is also known as marketing channels or marketing distribution channels or channels of distribution.

The process of displaying the label on the product is called labelling. There is an old English saying that two women and a goose may make a market. However, in common parlance, a market includes any place where persons assemble for the sale or purchase of commodities intended for satisfying human wants. Other terms used for describing markets in India are Haats, Painths, Shandies and Bazar. Retail management saves time and ensures the customers easily locate their desired merchandise and return home satisfied.

Price is the exchange value of a product or service expressed in monetary terms. It is the money, which the buyer pays to the seller for a product or service. Price is the amount for which a product, a service or an idea is exchanged regardless of its worth to the buyer. Pricing is the function of translating into quantitative terms the value of the product or idea by the marketing manager before it is offered for sale to consumers. Pricing is the process of setting objectives, identifying the factors governing the price, formulating price policies and strategies setting prices, implementing them and controlling them 24. The subject of output marketing is as old as civilization itself.

Explain the Functions of Marketing

These are the functions that are related to the creation of place & time Utilities. Physical transfer of goods from the manufacturer to the consumer takes place through transportation & storage. The following are the physical functions of marketing.

  • Marketing encompasses a series of activities involved in moving the goods from the point of production to the point of consumption.
  • If the price is too high, it may lose customers and if the prices are too low it might suffer losses.
  • The following are the physical functions of marketing.
  • Packing means, the wrapping and crating of goods before they are transported.

This also includes product development, marketing, operations, distribution, finance, and customer service. When the supply chain of any company is effective, it helps in decreasing costs and increasing profitability. All agricultural commodities have to be brought from the farm to the local market and from there to primary wholesale markets, secondary wholesale markets, retail markets and ultimately to the consumers. The outputs from the factories must be taken to the warehouses and from the warehouses to the wholesalers, retailers and finally to the consumers . Transportation adds the place utility to goods.


The storage function, therefore, adds the time utility to products. Determining the price of a product is an important function of a marketing manager. A sound pricing policy is important for selling the product to the customers. The price policy of a firm should be such that it attracts all types of customers. The price policy of the company directly affects the profit element and successful functioning of the company.

The brand ensures the quality and standard of the product—the company in creating an image for its product in the market. Transportation is the physical means of carrying products from one place to another. Transport helps in assembling & dispersing the products. It links together the manufacturers and consumers who locate in different places. Carrying the products to search places where they are needed creates time utility. Transport also helps in widening the market area.

  • Manufacturer‡ Retailer ‡Consumer is an example for one level channels.
  • The retailers anticipate the wants of the consumers and then supply them the right kind of goods at a reasonable price.
  • Then we discuss the functions of marketing management.
  • Goods are to be made available at a time when they are needed.

A well-designed system of marketing can effectively distribute the available stock of modern inputs, and thereby sustain a faster rate of growth in the agricultural sector. An efficient marketing system minimizes costs, and benefits all the sections of the society. The expectations from the system vary from group to group; and, generally, the objectives are in conflict. The efficiency and success of the system depends on how best these conflicting objectives are reconciled. Every single activity performed in carrying a product from the point of its production to the ultimate consumer may be termed as a marketing function.

Answer in brief. Explain any four functions of marketing. – Organisation of Commerce and Management

This again results in an increase in the marketed surplus and income of the farmers. If the producer does not have an easily accessible market-outlet where he can sell his surplus produce, he has little incentive to produce more. The need for providing adequate incentives for increased production is, therefore, very important, and this can be made possible only by streamlining the marketing system. Markets can also be classified on the basis of as to wholly owned subsidiary examples who are the market functionaries and to whom the marketing margins accrue. Over the years, there has been a considerable increase in the producers or consumers co-operatives or other organizations handling marketing of various products. Though private trade still handles bulk of the trade in farm products, the co-operative marketing has increased its share in the trade of some agricultural commodities like milk, fertilizers, sugarcane and sugar.

which function helps in place utility

It must be noted that each market or market place can be classified on the basis of the 12 criteria mentioned above. A 12-dimensional classification of markets is shown in Chart 1.1. A market is the area within which the forces of demand and supply converge to establish a single price. The word market originated from the latin word ‘marcatus’ which means merchandise or trade or a place where business is conducted. Philip Kotler has defined marketing as a human activity directed at satisfying the needs and wants through exchange process. ‘Developing the product according to customer needs.’ – This statement is related with marketing concept.

Agricultural marketing is a process which starts with _________________ of a saleable farm commodity. There are two types of markets on the basis of volume of transactions at a time. Advertising, personal selling and sales promotion. Explain ‘Market Planning’ and ‘Product Designing and Development’ as functions of marketing. Product cost sets the lower limits of the price, the utility provided by the product and the intensity of demand of the buyers sets the upper limit.

Grading and standardization is a marketing function which facilitates the movement of produce. Without standardization the rule of caveat emptor prevails; and there is confusion and unfairness as well. Standardization is a term used in a broader sense.

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