There are several reasons for high marketing costs of farm products. Transportation costs are often high due to bulk transport of products to deficit areas. Lack of adequate storage facilities increases costs. Other factors include the bulkiness and perishable nature of produce, as well as costly and inadequate financing. Seasonal supply patterns and unfair trade practices also drive up costs. Various factors like perishability, packaging requirements, storage needs, and advertising affect marketing costs. Reducing costs requires improving efficiency across the marketing process from producers to consumers through better handling, storage, transportation and risk management techniques.

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