Documente Academic
Documente Profesional
Documente Cultură
SUBSYSTEM
Topic Outline
• Classification of Agribusiness
Products
• Characteristics of Agribusiness
Products
• Classification of Marketing
Strategies
• Key Players in the Agribusiness
Marketing Subsystem
Topic Outline, cont…
• Market Functions
• Issues in Agribusiness
Marketing in the
Philippines
• Marketing
Considerations and
Strategies for
Agribusiness Products
The Marketing Subsystem
• One of the 5
aggregates of the
agribusiness system
• Objective: satisfy the
needs and wants of the
consumers
Classification of Agribusiness
Products
1. Fresh agricultural products
2. Semi-processed agribusiness
products
3. Finished products
Fresh Agricultural Products
• Negotiation • Market
• Assembly intelligence/market
• Grading research
• Storage • Promotion
• Processing
• Packing/Packaging
• Financing
• Risk-taking or risk-bearing
Marketing Functions, cont…
• Negotiation
– Starts with finding buyers and bringing the
sellers and buyers together to make
arrangements
– Becomes smoother if buyer-seller relationship
is already established
• Assembly
– Accumulate produce of small farmers or
producers
Marketing Functions, cont…
• Grading
– Facilitate buying, selling, transportation,
storage and pricing.
– Standard measurements – size, weight and
overall quality
• Storage
– to make goods available when it is needed
either for processing or for consumption.
Marketing Functions, cont…
• Processing
– Largely a marketing function (AB products pass
through this)
• Packing/Packaging
– Total product presentation
• Financing
– To handle all market-related costs and
problems
– Sourced from banks, or own money - middlemen
Marketing Functions, cont…
• Risk-taking or risk bearing
– Must be ready to assume risks considering losses to be
incurred during operations.
– Must be able to devise ways to cushion business
against risks.
Marketing Functions, cont…
• Market intelligence/market research
– Important in process conceptualization
• To assure product-market fit
– process of gathering and analyzing relevant
market information for the purpose of making
and fine-tuning marketing decisions to
respond to the ever-changing consumer
preferences.
– Map out competitive strategies (4Ps) if there
are many competing firms
Marketing Functions, cont…
• Promotion
– Continuous function of marketing
– Objective: inform buyers, increase sales
– Fresh VS Branded
• Fresh are rarely promoted, processed are. Why?
• Fresh are not branded and are homogeneous to
justify cost of promotions
• Processed are differentiated and branded, to
capture markets and develop brand loyalty
Marketing Functions, cont…
• Market characteristics:
– Who are the buyers?
– What specific agribusiness products do they buy?
– Where are the buyers located?
– What are their types of business organizations?
– For what purpose do they buy?
– What are their quality and volume requirements
– What are their specific marketing terms and
conditions?
Agribusiness Market Research