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Chapter 8 Principles Of Agricultural Marketing - Coggle Diagram
Chapter 8
Principles Of
Agricultural Marketing
Types Of Middlemen
Speculative middlemen
Risk taking investor
Processors & manufacturer
Change physical form of product
Agent Middlemen
Broker & commission men
Facilitative Organization
Receive income from fees & assessment for
those who use their facilities
Merchant middlemen
Wholesaler & retailers
Importance Of
Middlemen
Manage marketing
Matching supply with demand
. Additional production
Provide transport, storage, grading & packing
Business expansion
Levels Of Marketing
Channels
One level
Producer → Retailer → Consumer
Three level
Producer → Distributor →
Wholesaler → Retailer → Consumer
Zero level
Producer → Consumer
Factor Influencing The Types Of Middlemen
Selection Of Market Channel
Nature of product
Agricultural product are perishable
Distance between producer & consumer
Long distance, high cost
Financial status
Direct sell to final consumer
Laws & regulation
Sold to FAMA for better price
Production scale
Large production, less cost
Roles Of Marketing
Channel In Strategies
1. Link producer to buyer
2. Influences the firm’s pricing
strategy
3. Affecting product strategy
through branding, policies, willingness to stock
4. Customizes profits, install, maintain, offer credit.