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

2. 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

3. 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

4. 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.

5. 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?

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

7. 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

8. 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

9. 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)

10. 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?

11. 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

12. 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.

13. 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

14. 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:

15. 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?

16. 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.

17. God bless you more and have a nice day.