3. What Is Marketing?
• The process of determining the needs and
wants of consumers & being able to satisfy
those needs & wants
• Marketing includes all of the activities
necessary to move a product from the
producer to the consumer
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5. What Is a Market?
• A market is made up of buyers & sellers
• Buyers are people who need or want a
product or service and have the money to buy
it
• A market must also have sellers who are
willing & able to produce goods & services for
sale
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6. Two Types of Markets
Input market
• The input market includes
items like metal, fertilizer,
seed & wood
• These types of products
are purchased by
producers
Product market
• This is the market where
final products are sold to
consumers
• Eggs and potatoes from
farms
• Shoes from shoe stores
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8. Supply and Demand
• The price of a product is determined by the
value that buyers place on the product
• When many buyers want a certain product the
price will be higher
• If few buyers want a product the price will be
lower
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10. Four Important Questions
• What is the current situation?
• Where do we want the situation to be?
• How can we get from where we are to where
we want to be?
• What is/will the operating environment be
like?
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11. How Can I Add Value?
Simple vegetables
Pre-packaged vegetables
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12. Production
The goal is to add value through effective
management:
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Value Added
Labor
Equipment
Operating
inputs
Vegetables
Dairy products
Other
Inputs (Resources) Production
13. A Value Chain
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Customer
Farmer
Wholesaler
Cooperative
Equipment
supplier
Retail Sales
Input
supplier
Exporter
14. Identifying a Market
Those who wish to sell products identify
potential target markets for their products.
Once a potential market is identified, research
is done to find out the wants & needs of the
consumers in that particular market.
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15. Identifying a Market
Market research includes:
• Surveys
• Questionnaires
• Literature
• Any kind of information that can be
found regarding the market segment
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16. Working Together
Necessary for working together
• Trust
• Honesty
• Commitment
• Openness
• Board member responsibility to the members
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17. Examples of Working
Together• Provide production & market information
• Product marketing
• Input purchasing
• Equipment services
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18. Working Together in Marketing
• The goal is to improve profit by buying or
selling in volume and the ability to access
additional markets
• Working together requires individual farmer
commitment
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19. Working Together
• May allow individual farmers to use proven
technologies and efficiencies not available to
the farmer individually
• Usually requires a formal business
arrangement
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20. Working Together
Key questions
• What are the goals for the joint operation?
• Who are the members?
• Do all members have the same goals?
• Who is the leader/champion?
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21. Working Together
Key questions
• Will it lower my costs of production?
• Will it improve my market access?
• Does it fit my goals?
• What will be the impact on my operation?
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22. Working Together
Potential benefits
• Access to improved technology
• Capture economies of size
• Improved product quality & market access
• Utilize otherwise unavailable production,
marketing & information systems
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23. Working Together
Limitations of working together
• Requires commitment of people
• Requires joint responsibility
• Loss of some degree of control
• Formal business procedures
• Increased communication requirement
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