AGRI Grovestudies
Section A
1a. Define :-
- Market -: The word market originated from the latin word 'marcatus' which means merchandise or trade or a place where business is conducted.
Word 'market' has been widely and variedly used to mean:
(a) a place or a building where commodities are bought and sold, e.g., super market;
(b) potential buyersand sellers of a product; e.g., wheat market and cotton market;
(c) potential buyers and sellers of a country or region, e.g., Indian market and Asian market;
(d) an organization which provides facilities for exchange of commodities, e.g., Bombay stock exchange; and
(e) a phase or a course of commercial activity, e.g., a dull market or bright market.
- Marketing :- Marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. It involves identifying customer needs and wants and then developing products or services that meet those needs and wants. Marketing also involves promoting those products or services to potential customers through advertising, sales promotions, public relations, and other forms of communication.
- Market Structure ;- Market structure is an economic term that describes how a market is organized and how competitive it is. It considers factors like the types of goods sold, the number of sellers, and the barriers to entry.
Market structure affects the behavior of firms and buyers and the performance of the market. There are four main types of market structures: perfect competition, monopolistic competition, oligopoly, and monopoly.
1b. Market segmentation is the process of dividing a broad market into smaller, more specific groups of consumers who have similar needs and characteristics. The goal of market segmentation is to identify and target groups of consumers who are most likely to purchase a product or service and tailor marketing efforts to their specific needs and preferences.
There are several ways to segment a market, including demographic, geographic, psychographic, and behavioral segmentation.
Demographic segmentation divides a market based on characteristics such as age, gender, income, education, and occupation. Geographic segmentation divides a market based on geographic location, such as country, region, city, or climate.
Psychographic segmentation divides a market based on lifestyle, values, beliefs, and personality.
Behavioral segmentation divides a market based on consumer behavior, such as purchasing habits, usage rate, and loyalty.
Market segmentation is important because it helps businesses identify and understand their target customers and their specific needs. By understanding their target customers, businesses can tailor their marketing efforts to these customers, increasing the likelihood of successful sales.
1c.
Section B
2a. This law states that there exists an inverse relationship between price and the quantity
demanded of a good, keeping other things constant. In other words, this law says that the
quantity demanded of a good will increase if the price decreases and the quantity demanded
of a good will decrease if the price increases (Keeping other things constant).
Determinants of Demand
1. Price
This factor says that, as the price of a commodity increase, the quantity demanded falls, keeping other
things constant. This happens due to a decrease in the satisfaction level of the consumer.
2. Income
When income rises, so will the quantity demanded. When income falls, so will demand. The
demand for the commodity is also affected by the income of the consumer. But the effect of
change in income on demand depends on the nature of the commodity. Two types of goods
are related to the income of the consumer; Inferior Good ( Poor quality good) , Normal good (Better quality good)
The demand for the commodity is also affected by the change in the price of the related
goods. Related goods are of two types:
Substitute Goods
These are those goods which can be used in place of each other for consumption or those
goods which can replace each other. a consumer can substitute tea with
coffee.
Complimentary goods
These are those goods that are consumed together to obtain satisfaction. For example, Car
and petrol are used together, the pen and ink are used together.
4. Taste and preferences
The taste and preferences of the consumer directly influence the demand for a commodity.
They include a change in fashion trends, habits, etc. Take an example, if a commodity is in
fashion or it is preferred by a consumer, then the demand for such a commodity will increase
or vice versa.
5. Number of Buyers in the Market
The number of consumers affects overall, or “aggregate,” demand. As more buyers enter the
market, demand rises.
2b. Marketable surplus is the amount of agricultural produce that remains available for sale after the needs of the producer's household have been met. Several factors affect the marketable surplus of agricultural produce. These include:
Production factors: The level of production and productivity of agricultural crops depend on various factors such as soil fertility, availability of water, weather conditions, and the quality of inputs such as seeds, fertilizers, and pesticides. If these factors are favorable, the production level will be high, resulting in a larger marketable surplus.
Harvesting and post-harvest management: The harvesting and post-harvest management practices, such as storage, transportation, and processing, affect the quality and quantity of the marketable surplus. Proper harvesting practices and post-harvest management can minimize losses and preserve the quality of the produce, resulting in a larger marketable surplus.
Infrastructure and market access: The availability of infrastructure such as roads, transportation, and storage facilities, and market access affect the quantity and price of the marketable surplus. The absence of infrastructure and market access can lead to higher transportation costs and lower prices, resulting in a smaller marketable surplus.
Government policies: Government policies such as price support, subsidies, and trade restrictions can affect the level of production and the quantity of marketable surplus. Price support and subsidies can incentivize farmers to produce more, resulting in a larger marketable surplus, while trade restrictions can limit market access, resulting in a smaller marketable surplus.
Consumer preferences: Consumer preferences for certain crops or products can affect the marketability of agricultural produce. If consumers prefer certain crops or products, the market demand for these crops will be higher, resulting in a larger marketable surplus.
Market conditions: Market conditions such as supply and demand, market price, and competition can affect the quantity and price of the marketable surplus. A higher demand or lower supply of agricultural produce can lead to higher prices and a larger marketable surplus, while lower demand or higher supply can lead to lower prices and a smaller marketable surplus.
2c. The product life cycle is a marketing concept that describes the stages a product goes through from its introduction to its eventual decline and withdrawal from the market. The concept is based on the idea that products have a limited life cycle and that their sales and profitability will follow a predictable pattern over time.
The product life cycle consists of four stages: introduction, growth, maturity, and decline.
Introduction Stage: This is the stage where a new product is introduced to the market. Sales are usually low during this stage, as the product is not yet well known and may have limited distribution. The focus of marketing during this stage is to create awareness and generate interest in the product.
Growth Stage: As the product becomes more well-known and gains market acceptance, sales start to increase rapidly. The focus of marketing during this stage is to expand distribution and build brand loyalty. Competition may also increase during this stage as other companies enter the market.
Maturity Stage: During the maturity stage, sales growth starts to slow down, and the product reaches its peak in terms of market share. The focus of marketing during this stage is to maintain market share and maximize profits through cost reduction and efficiency.
Decline Stage: In the decline stage, sales start to decline due to changing consumer preferences, increased competition, or technological advances. The focus of marketing during this stage is to manage the decline and possibly introduce product improvements or modifications to extend the product's life cycle.
2d.
The producer's surplus is the quantity of produce which is, or can be, made available by
the farmers to the non-farm population. The producer's surplus is of two types:
1. Marketable Surplus
The marketable surplus is that quantity of the produce which can be made available to the
non-farm population of the country. It is a theoretical concept of surplus. The marketable surplus
is the residual left with the producer-farmer after meeting his requirements for family
consumption, farm needs for seeds and feed for cattle, payment to labour in kind, payment to
artisans – carpenter, blacksmith, potter and mechanic – payment to landlord as rent, and social
and religious payments in kind. This may be expressed as follows:
Where
MS = P – C
MS = Marketable surplus
P = Total production, and
C = Total requirements (family consumption, farm needs, payment to
labour, artisans, landlord and payments for social and religious work).
2. Marketed Surplus
Marketed surplus is that quantity of the produce which the producer-farmeractually sells in
the market, irrespective of his requirements for family consumption, farm needs and other
payments. The marketed surplus may be more, less or equal to the marketable surplus.
