MARKETING ANALYSIS

1. TOPIC :- REASON OF HIGH MARKETING COST
PRESENTED BY :-
PANKAJ KUMAR

2. CONTENT
• Marketing cost
• Objective of studying marketing cost
• Reasons of high marketing cost
• Factors affecting marketing cost
• Ways of reducing marketing cost of farm products
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3. MARKETING COST
• The movement of products from the producer to the
ultimate consumers involves costs , taxes and cess
which are called marketing cost.
• These costs vary with the channels through which a
particular commodity passes through
• Marketing cost include labour, transport, packaging,
rent,advertising, interest charge, selling charge.
• Marketing cost vary from commodity to commodity
and product to product.

4. • Marketing costs would normally includes :-
• Handling charge at local points.
• Assembling charges.
• Transport and storage costs.
• Handling by wholesale and retailer charges to customers.
• Expenses on secondary services like finance , risk taking and
market intelligence.
• Profit margings taken out by many different agencies.
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5. Objective of studying marketing cost:-
• To ascertain which intermediaries are involved between
producer and consumers.
• To ascertain total cost of marketing process of commodity.
• To compare the price spread paid by the consumer with the
price received by the producer.
• To see whether there is any alternative to reduce the cost of
marketing.
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6. Reasons Of High Marketing Costs :-
• High transportation costs increase marketing cost.
• Consumption pattern – bulk transport to deficit areas where the
production is low.
• Due to Lack of storage facilities marketing cost is increased.
• Bulkiness of the produce
• Volume of the product handled
• Absence of facilities for grading
• Perishable nature of the produce
• Costly and inadequate finance
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7. Reasons Of High Marketing Costs
• Seasonal supply
• Unfair trade practices
• Business losses
• Production in anticipation of demand and high prices
• Cost of risk
• Sales services
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8. FACTORS AFFECTING MARKETING COST
• Perishability
• Losses in storage and transportation
• Packaging – costly depends on type of packing
• Facilities extended by dealers to consumers
• Advertisement – necessity of demand creation
• Need for retailing – more retailing more costly
• Necessity of storage
• Extent of risk
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9. Ways of reducing marketing costs of farm products
• Increased efficiency in a wide range of activities
between producers and consumers such as
increasing the volume of business , improved
handling methods in pre-packing, storage and
transportation , adopting new managerial
techniques and changes in marketing practices
such as value addition , retailing etc.
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10. WAYS CONTINU...
• Reducing profits in marketing at various stages.
• Reducing the risks adopting hedging.
• Improvements in marketing intelligence.
• Incresing the competition in marketing of farm products.
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11. SYMBOL OF TRUST