Session 6 Session 6: Understanding Marketing and Markets Marino O. Samar March 7, 2013

Objectives By the end of the session, the participants shall have: 1. Discussed the key elements of marketing and its process; 2. Discussed the needed information to be gathered from the different stakeholders and market opportunities

Marketing is the process of exchange products and services between the producer (farmer) who sells, and the consumer who buys Market is the place where the exchange of products and services takes place. It is made up of sellers, buyers, products and prices

Marketing is the performance of all activities involved in getting agricultural products from the farm to the final consumer at the place and time desired by consumer, in the form the consumer desires, and at a price the consumer is willing and able to pay for the product received. A marketing system will be effective and efficient if all activities are carried out in a unified and coordinated manner. An effective and efficient marketing system will result in a price structure that is acceptable to the consumer.

S3 - Guide questions on your experiences in marketing Who has sold products at the market? What products did they sell? What quantity did they sell? How did they take the products to the market? What was the market like? What difficulties did you have/encounter? What would you do differently?

Marketing is the exchange of goods and services for profit Sellers Products Buyers Product Packaging Handling Transport Consumer Marketing Channels

What are the tasks and services in marketing? Producing Harvesting Assembling Grading Sorting Packaging Transporting Distributing Storing Selling and Buying Processing Retailing Market Identification Financing

FMR Archipelago Perishability Product MARKETING MIX Price Fresh Cost structure Value adding Logistic costs Competitors Fresh Semi-processed Processed Place Promotion Word of mouth Agri fishery trade fair (local /international Advertisements FMR Archipelago Perishability

Exercise 1 – Understanding Marketing Understanding of marketing based on the experiences or learning of participants from their own farms. Organize the participants into 5 groups Each group to select a product that they are familiar and answer the questions. Write the answers on manila paper(20 min)

Exercise 1- questions Who is the final consumer? What are the different ways to market the product? What are the constraints or problems you might experience when selling the products?

Some Marketing Concepts A product may pass through a number to get from the farmer to the final consumer or user (marketing channels) At each stage value is added to the product. And each stage a cost is also added to the product. The cost include transport, storage, packaging, handling fees. 4 Ps of marketing – product, price, place, promotion

Some Marketing Concepts If farmers sell in local markets their profit margin might be high, but they can only sell small amounts. If the products reaches the city market or international market, then the farmer can sell larger amounts. However, such sales would need the support of traders and others along the way. Each of them would add value and cost to the product. Because the costs are higher, the profit margin will be lower.

Conclusion: A product exists only if someone is willing to pay for it (someone who buys it) A product can be sold only if it has a costumer Marketing is therefore critical to the success of the farm business

Exercise 2 - Where can We Market? Participants to identify a commodity that is commonly produced among them (5 group). Write the name of the commodity in the handout Where can We Market. Each group should discuss their selected commodities and the questions from the handout:

E2- Where can we market? What are the different market outlets available for the products? What quantities do they want? When is the best time to use these markets? What else do they know about these markets? What else do they think they need to learn about these markets?

S6 It is important to know what market outlets are available for your products. It is also vital to know about these markets, with regard to time access, terms and conditions and other facilities. Those information will determine which market to use or where to sell the product.

God bless you more and have a nice day.