Marketing Chapter 5

MARKETING COSTS AND MARKETING EFFICIENCIES
TOTAL COST OF MARKETING
MARKETING EFFICIENCY
MARKET MARGIN
MARKETING COST
Marketing process of the producer, processor and middlemen
PRICE POLICY
Factors Contributed
Population Growth
Cost of Food Marketing Inputs
Consumers desires for additional food marketing service
Factors Influenced
Time
Form of Products
Institution
Weather
Location
Competition & Bargaining
Marketing Communication
Operational efficiency
Refers to the situation where the costs of marketing are reduced without affecting the output of the efficiency ratio.
Pricing efficiency
Is concerned with the ability of market system to efficiently allocate resources and coordinate the entire food production and marketing process in accordance with consumer directives
How To Measure
Price
Services Offered
Structure
Attitudes
“Price refers to the organization procedure in setting the right price to the right customer at the right place an time”
3 price discrimination schemes
First degree or perfect price discrimination (individual targeting)
Second degree price discrimination (group targeting)
Third degree price discrimination (location of customer segment)
Criteria improved
Technology
Organization
Pricing
Product innovation
Categorized
Labor cost
Transportation cost
Packaging cost
Hire purchase machinery
Depreciation
Advertising
Taxes
Maintenance and utility
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