Summary: Ag Marketing
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Ch 1-3
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2 Major Food Marketing Systems
1. Physical (handling, processing, storage transportation)
2. Economic (the valuation or price-settling process -
Expenses in Marketing System:Where does the money go?
-79% goes to middleman
-21% goes to farmer -
Utilities in Marketing Process
-form (change in physical characteristics)
-place (change in location)
-time (storage)
-possession (change in ownership) -
-the "big picture" view-looks at issues of organization, performance, and how system is changing over time
Macro-marketing -
-the viewpoint of individual decision maker-issues include: buying/selling decisions; marketing strategies; market research
Micro-marketing -
-no marketing system needed-products used by those who produce them
Primitive (self-sufficient) Society -
-producers began to specialize and trade with producers of other goods
Barter Society -
-more advanced societies-not just in areas of production, but in urban areas as well
Specialization -
a major specialized and necessary activity performed in marketing; "what" is done
Marketing Function-Functional Approach -
three major groups of functions
1. Exchange
2. Physical
3. Facilitating
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