Marketing
functions and functionaries
Agricultural marketing
involves in its simplest form the buying and selling of agricultural produce. In olden
days, when the village economy was more or less self sufficient, the marketing of
agricultural produce presented no difficulty, as the farmer sold his produce direct to the
consumer on a cash or barter basis. Agricultural marketing consists of all the functions
and services used in moving the commodities from the producer to the final consumer. It
includes not only the physical movement to the place where the product is wanted but also
putting it into the form and amount is desired and having it ready at the time it is
wanted.
Marketing
functions: In modern marketing, the agricultural produce has to undergo a series
of transfers or exchanges from one hand to another before it finally reaches the consumer.
This is achieved through three important marketing functions namely
a. |
Assembling
(Concentration)– Concentration pertains to the operations concerned with the
assembly and transport of produce from the field to a common assembling area or the
market. |
b. |
Preparation
for consumption( processing) – The produce may be sold, as obtained from the
field, or may be cleaned, graded, processed and packed either by the farmer or village
merchant before it is taken to the market. Some of the processing is necessary for the
conservation of quality. |
c. |
Distribution
(Dispersion)– It involves the operations of whole selling and retailing as
various points. By a series of indispensable adjustments and equalizing functions, it is
the task of distribution system o match the available supplies with the existing demand. |
The essential
functions of agricultural marketing may be describe as follows:
1 |
Assembling:
Collection of produce
for sale in mandis or larger markets is called Assembling. Assembling is of two types:
- Bringing together of smaller amounts of
produce for greater convenience and economy in buying, transporting or processing.
- Assembling occurs in the distribution
of finished products. Wholesaler buy from many processor to have on hand the commodities
wanted by retailers to supply the consumers.
|
2. |
Grading
and Standardization :
Grading is the sorting
out of the commodities into different groups on the basis of size, variety, taste,
quality, colour etc. Such separation may or may not conform to established standards.
Whereas standardization fixes the grades and does not allow them vary from season to
season and year to year. Grading and standardization are used interchangeably.
Advantages of Grading and standardization
- Uniformity between markets is provided
- Products of similar grade can be stored
in bulk
- Market values are better understood
- Commodities can be bought and sold
without previous examination
Standards provide a
basis for market reporting and advertising
|
3. |
Processing
:
Processing is the
conversion of farm produce into more consumable form. E.g. conversion of wheat into
floors, preparation of butter, ghee from milk, hulling of paddy into rice etc. Processing
imparts form utility
Advantages
- Surplus produce may be conserved
- Reduces the work in home
|
4. |
Transportation:
Physical movement of
produce from the place of production to the final consumer is called transportation.
Transportation creates place utility. Transportation takes place through different means
like road, rail, air, and water.
|
5. |
Storage
:
Storage is the holding
of produce from time of production until needed by the consumers. Storing creates time
utility. Storage helps to spread out market supply. Some products are stored for short
period whereas fresh fruits, vegetables require cold storage.
|
6. |
Packaging:
Packaging is the
packing or covering the product in such sizes and pattern as to be most Marketable. The
objectives of packaging are
- to facilitate the handling of product
- to reduce the storage and marketing
cost
- to prevent loss by deterioration and
rob
- to make products more attractive
|
7. |
Distributing:
It relates to
dispersing, retailing and marketing of produce. Distribution bridges the gap between the
wholesalers and large number of consumers. |
Marketing
functionaries (Agencies)
The transfer of
produce or goods takes place through a chain of middlemen or functionaries (agencies).
In a primary market,
the main functionaries are the producer, the village, or itinerary merchant, pre harvest
contractors, commission agents, transport agents etc.
In the secondary
market all the functionaries of primary market are involved and also the processing and
manufacturing agents are the additional functionaries. Financing agents, such as shroffs,
banks and co-operatives also take part.
In the terminal or
export market, the commercial analyst and shipping agent also get involved in the transfer
of goods.
The functionaries have
their own setup. They may be individuals, partners or co-operatives who may buy and sell
on ready and future basis, at a price determined by forces of demand and supply. Each
functionary renders some service in the process of marketing and also earns a varying
margin of profit for himself and at same time bears risks involve in the process. |
Agri-
Knowledge
(Agricultural Marketing)
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