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Agricultural marketing - economics



Agricultural marketing

The term agricultural marketing is composed of two words – agriculture and marketing. Agriculture, in the broadest sense, means activities aimed at the use of natural resources for human welfare, i.e., it includes all the primary activities of production. But, generally, it is used to mean growing and/or raising crops and livestock.

Marketing encompasses a series of activities involved in moving the goods from the point of production to the point of consumption. It includes all activities involved in the creation of time, place, form and possession utility.

Philip Kotler has defined  marketing as “ a human activity directed at satisfying the needs and wants through exchange process”.


Agricultural marketing is the study of all the activities, agencies and policies involved in the procurement of farm inputs by the farmers and the movement of agricultural products from the farms to the consumers.

Agricultural marketing system in developing countries including India can be understood to compose of two major sub-systems viz., product marketing and input (factor) marketing.

Market – Meaning
The word market originated from the latin word 'marcatus' which means merchandise or trade or a place where business is conducted.

Terms used for describing markets in India are Haats, Painths, Shandies and Bazar.

A market may be :
1. A market is the sphere within which price determining forces operate.
2. A market is the area within which the forces of demand and supply converge to establish a single price.
3. The term market means not a particular market place in which things are bought and sold but the whole of any region in which buyers and sellers are in such a free intercourse with one another that the prices of the same goods tend to equality, easily and quickly.
4. Market means a social institution which performs activities and provides facilities for exchanging commodities between buyers and sellers.
5. Economically interpreted, the term market refers, not to a place but to a commodity or commodities and buyers and sellers who are in free intercourse with one another.
6. The American Marketing Association has defined a market as the aggregate demand of the potential buyers for a product/service.
7. Philip Kotler defined market as an area for potential exchanges.

Components of a market

1. The existence of a good or commodity for transactions (physical existence is, however, not necessary);
2. The existence of buyers and sellers;
3. Price at which the commodity is transacted or exchanged
4. Business relationship or intercourse between buyers and sellers
5. Demarcation of area such as place, region, country or the whole world.

Dimensions of a Market
 
Any individual market may be classified in a twelve-dimensional space.There are various dimensions of any specified market.

 These dimensions are:

1. Location or place of operation
2. Area or coverage
3. Time span
4. Volume of transactions
5. Nature of transactions
6. Number of commodities
7. Degree of competition
8. Nature of commodities
9. Stage of marketing
10. Extent of public intervention
11. Type of population served
12. Accrual of marketing margins


 CLASSIFICATION OF MARKETS



ON THE BASIS OF LOCATION 
                                                                   VILLAGE MARKETS 


                                                                   PRIMARY MARKETS 


                                                                   SECONDARY            


                                                                   WHOLESALE MARKETS 


                                                                   TERMINAL MARKETS 


                                                                   SEA-BOARD MARKETS 


                                                                    
 ON  THE  BASIS  OF  AREA  OR  COVERAGE


                                                                   LOCAL/VILLAGE MARKETS 


                                                                   REGIONAL MARKETS 


                                                                   NATIONAL MARKETS 
      
                                                                   WORLD/INTERNATIONAL 


                                                                   MARKETS 


             ON THE BASIS OF TIME SPAN 
                                                       


                                                                   SHORT PERIOD MARKETS 


                                                                   PERIODIC MARKETS 
                                                                   LONG PERIOD MARKETS 


                                                                   SECULAR MARKETS 


                                                                    


ON THE BASIS OF VOLUME OF  TRANSACTIONS  
                               
                                                                         WHOLESALE MARKETS 


                                                                           RETAIL MARKETS 


                                                                    


ON THE BASIS OF NATURE OF   TRANSACTIONS 

                  SPOT/CASH MARKETS 


                                                                                FORWARD MARKETS 


                                                                    


ON THE BASIS OF NUMBER OF  COMMODITIES TRANSACTED


   GENERAL MARKETS 


                                                                            SPECIAL MARKETS 


  ON THE BASIS OF DEGREE OF   COMPETITION


                                                                   PERFECT MARKETS 


                                                                   MONOPOLY MARKETS 


                                                                   DUOPOLY MARKETS 
 
                                                                   OLIGOPOLY MARKETS 


                                                                   MONOPOLISTIC 

                                                                   COMPETITIVE MARKETS 


                                                                             


ON THE BASIS OF  NATURE OF  COMMODITIES

     COMMODITY MARKETS 


                                                                 CAPITAL MARKETS 


                                                                              


ON  THE  BASIS  OF  STAGE  OF MARKETING

     PRODUCING MARKETS  


                                                                 CONSUMING MARKETS 


                                                                              


ON THE BASIS OF EXTENT OF   PUBLIC INTERVENTION


           REGULATED MARKETS 
 

                                                             UN-REGULATED MARKETS 


                                                                              


ON  THE  BASIS  OF  TYPE  OF   POPULATION SERVED 


             URBAN MARKETS 


                                                            RURAL MARKETS 


                                                                             


ON   THE   BASIS   OF   MARKET  FUNCTIONARIES      AND   ACCRUAL    OF   MARKETING   MARGINS


          FARMERS MARKETS 


                                                        CO-OPERATIVE MARKETS 


                                                            GENERAL MARKETS 


 

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