University of Chittagong

[Dept. of Marketing Studies & International

Marketing]

Course Title
Agricultural Marketing
3rd Year BBA (hons.)

Course Instructor
Shajib Kumur Ghosh
Presented By:

Faisal
Ahmed
(FAB)
Most people think that marketing is only
about the advertising and/or personal
selling of goods and services. Advertising
and selling, however, are just two of the
many marketing activities.

Marketing is a process by which

companies create value for customer and
build strong customer relationships in
order to capture value from customer in
return
 This view is consistent with the following definition of
marketing found in a popular marketing textbook:

"Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods, services, organizations, and events to create and
maintain relationships that will satisfy individual and
organizational objectives."

A definition of Marketing in nine words, Marketing is the

act of connected customers to products
Along with all of the new terminology, new techniques,
and new twists the Internet has brought us, it has also
opened opportunities for misguided notions about the
definition of marketing. While the above definitions
describe different facets or definitions of related terms,
they do not convey the much broader process that is
truly marketing. By taking a look at some dictionary
and trade definitions of marketing we can get a better
feel for what marketing is truly.
 Agriculture is the utilization of natural resource to
produce commodities which maintain life, including
food, fiber, forest, products horticulture crops and
their related services.

Another way, Agriculture is the science and arts of

farming or business of cultivating the soil producing
crops and raising livestock

Agriculture: Agriculture Cultivation of the soil,

including the allied pursuits of gathering crops and
rearing livestock.
Bangladesh is primarily an agrarian economy. Agriculture is the
single largest producing sector of economy since it comprises about
30% of the country's GDP and employing around 60% of the total
labor force. The performance of this sector has an overwhelming
impact on major macroeconomic objectives like employment
generation, poverty alleviation, human resources development and
food security. Agricultural holdings in Bangladesh are generally
small. Through Cooperatives the use of modern machinery is
gradually gaining popularity. Rice, Jute, Sugarcane, Potato, Pulses,
Wheat, Tea and Tobacco are the principal crops. The crop sub-
sector dominates the agriculture sector contributing about 72% of
total production. Fisheries, livestock and forestry sub-sectors are
10.33%, 10.11% and 7.33% respectively.
Marketing is an organizational performance of
all business activities involved in the flow of
goods and services from the point of initial
agricultural production until they are in the
hands of the ultimate

According to kohl offers, “Agricultural

marketing is the Performance of all activities
which is related from production centre to
ultimate consumer in reception of goods”
 Objectives:
 The farmer has realized the importance of adopting new
techniques of production and is making efforts for more
income and higher standards of living. As a
consequence, the cropping pattern is no longer dictated
by what he needs for his own personal consumption but
what is responsive to the market in terms of prices
received by him. While the trade is very organized the
farmers are not Farmer is not conversant with the
complexities of the marketing system which is
becoming more and more complicated. The cultivator is
handicapped by several disabilities as a seller. He sells
his produce at an unfavorable place, time and price.
The objectives of an efficient marketing system are

To enable the primary producers to get the best possible returns,

To provide facilities for lifting all produce, the farmers are willing, to sell at an
incentive price,

To reduce the price difference between the primary producer and ultimate
consumer, and

To make available all products of farm origin to consumers at reasonable price without
impairing on the quality of the produce.

To meet the demand of the consumer.

To makes proper assembling and distribution because it’s impossible to produce

agricultural products in a specific region.
Earning foreign currency by agricultural products.

To reduce unemployment by using wide distribution channel and strong

marketing system.

To develop economic efficiency of a country.

To increase relation among the abroad.

To stimulate economic and technical cooperation among food marketing

institutions in the Region for the improvement of food marketing system in the
respective countries;

To establish among its members a machinery for systematic interchange of information and
experiences regarding various aspects of food marketing activities

To establish and maintain appropriate relationship with FAO of the United Nations and other
international and regional organizations pursuing similar or related objectives.
For the purpose of achieving its objectives, the
Association performs the following functions:

Exchange of information and experiences among the food marketing

institutions in the countries in Asia and Pacific Region, on policies,
programes, projects and technologies on food marketing;

Training of senior level policy makers and middle-level managerial and

technical staff on various policies, programmers, management and
technical aspects of food marketing system;

Technical and economic cooperation among food marketing

institutions in countries of the Region in planning, initiating,
implementing and evaluating specific policies, programmers and/or
project activities to improve food marketing system.
The term agricultural marketing is composed of two words -
agriculture and marketing. Agriculture, in the broadest sense
means activities aimed at the use of natural resources for
human welfare, and marketing connotes a series of activities
involved in moving the goods from the point of production to
the point of consumption. Specification, the subject of
agricultural marketing includes marketing functions,
agencies, channels, efficiency and cost, price spread and
market integration, producer’s surplus etc. The agricultural
marketing system is a link between the farm and the non-
farm sectors.
 Effective marketing of agricultural products is
dependent on the creation of conducive
circumstances as well as the provision of
resources and services. The circumstances
required are those supportive of all commercial
bargaining and exchanges and consist of
institutions and structures to maintain:
 A legal and dispute settling system
 A financial and credit provision system.
 A standard setting and verification system.
 A price setting and confirmation system.
 The Food Marketing System
•Firms, Organizations
•Product Flows, Distribution Channels
•Management and Marketing Activities
•Pricing and Exchange
The most popular Agricultural Marketing system

► Domestic and global Economy:

Food industry is the part of a larger economy in any country and is therefore
affected by macroeconomic trends in growth, employment, inflation and interest
rates.

►Science and Technology :

Science and Technology al so major influences on the country food system.

Food production is increasingly becoming industrialized and new technologies
in food processing; packaging and marketing have given rise to new products,
companies and industries. Technology has become a powerful engine of
change in food industry, as illustrated by recent biotechnology developments.
►Consumer taste and preferences:

Food consumer and their wants and needs are also reshaping the nature of
the food system. Todays consumers demands increasingly diverse,
healthy. Convemently prepared and economical food products.

►Infrastructure:

Everyone sometimes neglect or take for granted the role that social capital
or infrastructure plays in the development of an efficient food marketing
system. These are the resources created by the society for the benefit of
all.
►Competition:

Competition is a major influence on the organization and behavior in the food

industry. Though their attempts to improve profits. Satisfy consumers and gain
a competitive edge, food producers and marketing firms continually search for
new and different ways to market their products.

►Laws and Govt. policy:

The behavior of the marketing system is also limited by the rules, customs and
values of a society. Though such rules may be changed by society, at any given
time the marketing system must rework out its activities within the currently
existing framework.
To create value for customer marketers need to
emphasize on the following points:
The most basic concept underlying marketing is that of human needs.
Human needs are states of felt deprivation. They include basic physical
needs for rood, clothing, warmth, and safety; social needs for
belonging and affection; and individual needs for knowledge and self-
expression.

Wants are the form human needs take as they are shaped by culture
and individual personality
.

Wants are shaped by one’s society and are described in terms of

objects that will satisfy needs. When backed by buying power, wants
become demands. Given their wants and resources, people demand
products with benefits that add up to the most value and satisfaction.
Consumers’ needs and wants are fulfilled through a marketing offer-
some combination of products, service, information, or experiences
offered to a market to satisfy a need or want. Marketing offers are not
limited to physical products. They also include services, activities of
benefits offered for sale that are essentially intangible and do not
result in the ownership of anything.

Many sellers make the mistake of paying more attention to the specific
products they offer than to the benefits and experience produced by
these products.

Smart marketers look beyond the attributes of the products and

services they sell. By orchestrating several services and products, they
create brand experiences for consumers.
Marketers need to emphasize on creating on customers value which
make them satisfied. Satisfied customers buy again and tell others
about their good experiences. Dissatisfied customers often switch to
competitors and disparage the product to others.

Marketer must be careful to set the right level of expectations. It the

set expectations too low they may satisfy those who buy but fail to
attract enough buyers. If they raise expectations too high buyers will
be disappointed. Customers value and customers satisfaction are key
building blocks for developing and managing customers relationships.
Marketing occurs when people decide to satisfy
needs and wants through exchange relationships.
Exchange is the act of obtaining a desired object
from someone by offering something in return.

Marketer wants to build strong relationships by

consistently delivering superior customer value.
 The concept of exchange and relationship lead to the concept of
a market. A market is the set of actual and potential buyers of a
product. These buyers share a particular need or want that can
be satisfied through exchange relationship.

So from the above discussion it can be said that if the

marketers want to survive and lead in the market powerfully
and also want to maximize profit they have to create customer
value based on the above points.