Agricultural Rural Marketing

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    PROJECT SUBMITTED TO

    Prof. Aftab Ahmed

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    PRESENTED BY

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    Rural agricultural marketing

    Introduction

    Marketable surplus

    Concept and functions

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    Agricultural vs. Manufactured

    goodsBase Agriculturalcommodities

    Manufactured

    goods

    Implications

    Perishable Yes No Immediate sale or

    storage facility

    Seasonal Yes No Storage facility for distribution of

    items like food

    grains

    Variations in

    quality

    Natural By design Gradind

    Processing Needed Finished Miller/processing

    agent is

    intermediary

    Size Bulk Varying quantities Transport is

    essential

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    Functions of agricultural

    marketing Assembling

    Grading and standardization

    Processing Transporting

    Storing

    Distributing

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    Types ofAgricultural Market

    Primary Market

    Secondary market

    Terminal Market On the basis of frequency with which

    they are held

    Based on types of products

    Based on volume of transactions at a

    time

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    Agricultural Markets and Agents

    Primary markets

    Secondary markets

    Terminal or export market

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    Rural Agricultural Marketing - Strategies for

    Improving Marketing within Rural Areas

    Product strategies1. Small unit and low priced packing

    the objective is to keep the price low so that the entirerural community can try.

    Examples - shampoos, biscuits, pickles, Vicks fivegram tins, etc.

    2. New product designs

    A close observation of rural household items indicates

    the importance of redesigning or modifying theproducts.

    Thinking in terms of new product designs speciallymeant for rural areas keeping their lifestyles in view.

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    Contd3.Sturdy products

    The product meant for rural areas should be sturdy enough tostand rough handling and storage.

    People in rural areas like bright flashy colors such as red, blue,green etc., and feel that products with such colors are sturdy

    but they are more concerned with the utility of the item also.

    4. Brand Name The brand name awareness in the rural areas is fairly

    high.

    A brand name and/or logo is very essential for ruralconsumers for it can be easily remembered.

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    Contd Pricing strategies

    Low cost/cheapproducts

    Avoid sophisticated packing - Bring down costs

    Refill packs/Reusable packaging Reduces Price

    Application of value engineering- technique used toevolve cheaper products by substituting the costly raw

    material with the cheaper one, without sacrificing thequality or functional efficiency of the product, forexample in food industry, 'soya protein is being usedinstead of milk protein.

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    Contd Distribution strategies

    While it is essential to formulate specific strategiesfor distribution in rural areas, the characteristics ofthe product, its shelf life and other factors have tobe kept in mind.

    The distribution strategies that are specificallydesigned for rural areas are : through co-operativesocieties, public distribution system, multi-purpose

    distribution centres, distribution up to feedermarkets/mandi towns shanties/hat/jathras/melas,agricultural input dealers etc.

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    Contd Promotion strategies Mass media - television, cinema, print media, radio ,

    hoardings/wall paintings, shanties/hats/melas, non-price competition, special campaigns , hand bills andbooklets, posters, stickers, banners of the schemes

    etc.

    For disseminating the information related toagricultural and other rural industries products, thegovernment should circulate pamphlets either to

    Panchayati raj office or to schools where it can bedocumented for the reference.

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    MajorAreas ofConcernintheRural

    MarketingSector

    Government should assume a more dynamic role in the field of agriculturalmarketing that of a strong buffer between global forces and local needs.

    Emphasize value addition by giving a thrust to agro-processing industries atfarm level so that the benefit of value addition is transferred to the producer.

    There is a need for professionalizing agricultural marketing as a subject ofgreat practical application.

    Institutional linkages should be emphasized upon to integrate the markets,for easy movement of goods and also to facilitate the inter-state trade.

    Regular surveys and analytical studies on agricultural marketingshould beconducted, so that appropriate policy adjustments and refinementswhenever necessary.

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    Conclusion

    Indian agricultural marketing system should bemade much more competitive by infusing

    competition within the country and preventing the

    external system equation from interfering with the

    local markets in the larger interests of the nation.

    The most glaring deficiency in rural economy is in

    giving the farmers a better deal in terms of

    institutional and advisory services and practical

    training.

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    THANK YOU