MARKETING ACTIVITIES IN THE FIELD OF SALE OF AGRICULTURAL PRODUCTS
Section: ECONOMICS
Abstract and keywords
Abstract (English):
Agriculture, like no other branch of the national economy, is characterized by a variety of organizational and economic forms. Hence, various forms of agromarketing, ranging from targeted marketing programs to the effectiveness of agribusiness. The primary task of agromarketing for the harmonious satisfaction of consumer demand is the creation of an integrated agro-marketing system on the scale of the Republic of Kazakhstan, the creation of the necessary conditions for the implementation of the capabilities of each marketing system of various organizational forms.

Keywords:
agromarketing, sales, transportation of products, costs, sales, buyer, intermediaries, sales planning, agriculture, agribusiness
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The formation of the country's food market and its orientation to specific consumers requires adopting the concept of marketing, that is, creating an integrated system that allows not only rational use of all types of resources, but also predicting commercial activity.

Marketing in the field of agricultural activity includes: research work in the field of marketing of agricultural products, product assortment planning, identification of unsatisfied demand, potential consumers, selection of channels for the movement of products from the manufacturer to the consumer, development of sales promotion measures, development of effective marketing information systems for collecting, storing and processing information, and much more. Interconnectedness and complex application is the essence of agromarketing. In other words, marketing is a concept in which everything is subordinated to the ultimate goal - the maximum sale of agricultural products.

But, according to many economists, there are fundamental differences between marketing and ordinary sales activities.

First of all, economic education in accordance with the principles of marketing has a specific management structure. The focus is not on production, but on everyday issues related to the number of transactions concluded and the corresponding volume of sales. Therefore, the "philosophy" of marketing is integrated into each stage (production and sales), that is, it is brought to every employee - from the manager to the performer. The main goal is to meet the needs of consumers of products, not production, expansion of the assortment.

When implementing this marketing function, it is important to choose the means and methods of transporting products in terms of delivery time, urgency, costs and the degree of fulfillment of contracts between buyers and intermediary enterprises.

Sales planning and its control are integral parts of the organization of product sales.

The main elements of sales planning and control in a marketing environment are the following:

1) preparation of forecasts of general economic and market conditions;

2) preparation of a forecast for the sale of products by the enterprise;

3) development of financial estimates for sales;

4) definition of sales standards;

5) selection of product sales channels;

6) preparation and implementation of sales plans and organization of trade;

7) development of a trade information plan;

8) statistical analysis of the progress of product sales.

Product sales control pursues an objective assessment of the progress of its implementation in order to clarify issues that need to be addressed to improve sales. Control should be comprehensive and systematic.

The main task of production and the economy as a whole is to use the intelligence and physical labor of people to transform natural raw materials into a form suitable for meeting needs. The early forms of economic structure are characterized by production, primarily for their own needs. At this stage, there is no exchange of products between various economic entities. Even reserves are created only if it is caused by natural, especially climatic, conditions. Such a method of autonomous individual farming is hardly viable and realistic in today's conditions. The starting point of our reasoning is the stage of economic development of society, which is characterized by a high degree of division of labor. With the beginning of industrialization, production became much more complicated and specialized. At the same time, people's needs have become more diverse, so that a separate economic entity is not able to produce everything necessary for itself, nor to consume everything that it produces.

The emergence of new needs, the constant increase in real incomes of the population and the development of new technologies lead to the fact that an increasing number of different goods are offered on the market. All goods must find their buyer in order to maintain normal economic turnover. The product can be sold in two ways: either in the manufacturer's own household (in the form of semi-finished products or the results of their own scientific research), or through the sale of goods on the market.

The main feature of the modern economy (whether market or planned) can be called the relationship of the exchange of products for money between independent economic entities. The exchange does not necessarily have to be based on sales, it can be about leasing or leasing, which is often found in the market of investment goods and durable goods.

Such a type of human activity as marketing is aimed at satisfying needs and needs through exchange.

Currently, the following concepts are used in literature and practice: agricultural marketing, agromarketing and agribusiness marketing.

For example, Robert W. Branson and Douglas T. Norvell write: "Agricultural marketing basically meant marketing from the producer to the first consumer."

They also give the following definition of agromarketing: "This is all activity related to agricultural production and with food, seeds, harvesting, processing and delivery to the final consumer, including analysis of consumer needs, motivation, purchases and consumer behavior."

In 1957, J.N. Davis and Roy A. Goldberg introduced the concept of "agribusiness marketing", which meant marketing operations from the first buyer to the final consumer.

In essence, these concepts are identical, but they have differences in the content aspect.

Marketing efforts currently in connection with the receipt of a large number of food products from abroad are aimed at preserving the quality of food, service and aesthetic provision, noble, voluntary action.

The features of agomarketing, as already noted, are also determined by the discrepancy between the working period and the production period in agriculture. For example, crop production is received once or twice a year, and the working period lasts a whole year. In this regard, agromarketing specialists should know very well how to predict the dialectic of consumer demand, the trend of its satisfaction, market conditions, etc., because the effectiveness and nobility of marketing depend on it. With this feature of agricultural production, there is also such a feature as seasonality. Distinctive features of agricultural and industrial production are realized in distinctive forms and methods of agromarketing.

Agriculture, like no other branch of the national economy, is characterized by a variety of organizational and economic forms. Hence the various forms of agromarketing, starting with the target program of marketing activities and ending with the effectiveness of agribusiness. The primary task of agromarketing in order to harmoniously meet consumer demand is to create an integrated system of agromarketing on the scale of the Republic of Belarus, creating the necessary conditions for the realization of the capabilities of each marketing system of various organizational forms.

A complex aspect of the organization of agromarketing is the reflection of the dialectic of organizational and economic forms in connection with the stochasticity of this process. For example, now in all CIS countries, including Kazakhstan, Khrestyan farming is becoming more widespread, but due to limited material (especially starting) opportunities, the process is becoming more complicated, and marketing must adapt, of course, to cooperatives. In the current conditions, the improvement of agromarketing is also due to the fact that now a lot of food products are coming from abroad in Kazakhstan. At the same time, many factors of international agromarketing are being implemented, so the marketing support of our formations should successfully compete with foreign firms. No other types of marketing are experiencing such competition now.

And on 15.04.2021, 17,669 organizations engaged in agricultural activities (excluding forestry and fisheries) were registered in Kazakhstan.

The largest number of agricultural organizations is located in the Turkestan, Almaty and Akmola regions of the Republic of Kazakhstan.

 

Table 1. Number of agricultural enterprises by regions of Kazakhstan as of April 2021 (excluding forestry and fisheries)

 

 Region

Number of enterprises

 

Turkestan region

3695

Almaty region

2122

Akmola region

1999

North Kazakhstan region

1346

East Kazakhstan region

1241

Kostanay region

928

Zhambyl region

908

Almaty

814

Karaganda region

757

Shymkent

672

West Kazakhstan region

629

Aktobe region

592

Pavlodar region

574

The city of NURSULTAN

554

Kyzylorda region

529

Mangystau region

167

Atyrau region

142

 

Being a state with a raw-material orientation of the economy, the Republic of Kazakhstan tries to limit the export of raw materials and stimulate deep processing of raw materials.

Kazakhstan has huge areas of agricultural land, including those necessary to provide livestock with fodder. The main sources of providing livestock and poultry with fodder in the republic are pastures, natural and seeded hayfields, arable land for growing fodder crops. The total area of acreage in Kazakhstan in 2019 amounted to 22,135.8 thousand g, of which the share of fodder crops accounts for about 15%.

In accordance with the strategy "Kazakhstan 2050" in the agro-industrial complex, the main directions in the industry were improving the country's food security, the formation of agricultural business, increasing the competitiveness of domestic products and increasing sales volumes, both in the domestic and foreign markets, reducing the level of food imports, the introduction of an effective system of state support for agricultural production.

  • The main areas supported by the state:
  • Animal husbandry (cattle breeding, cattle breeding, dairy farming, horse breeding, camel breeding, poultry farming);
  • Crop production of grain, melons, technical, fruits, vegetables;
  • Processing of agricultural products (meat processing enterprises, slaughterhouses; poultry farms; milk (milk processing enterprises, milk collection enterprises); grain, vegetables and fruits (processing, cleaning, storage, shipment).

The subsidization program in the livestock market is aimed at ensuring the maximum effectiveness of state support measures for the industry in priority areas.

The analysis suggests that agriculture is a priority industry for the state, whose products have a stable demand among consumers.

The sale of products is the final stage in the activities of any commodity producer. The financial results of the entire activity of the enterprise depend on how well the sales are organized in each specific case. It is possible to have advanced technology, highly productive livestock and high-yielding crops, efficient production organization and at the same time incur significant losses in revenue and profit due to lack of due attention to the implementation process. Not all marketable products are equally effective.

The main directions of improving the effectiveness of implementation in the organization in the near future may be:

- increasing the volume and quality of marketable products;

- improvement of the range of commercial products;

- optimization of implementation channels.

To increase sales, it is necessary to identify opportunities for production growth and optimize on-farm needs.

References

1. Moldasheva R.K. Marketing. Tutorial. - Almaty, TechnoErudite. 2018.-176 p.

2. S.S. Satybaldy. Marketing system interaction of business entities of industrial sectors and markets. Monograph. - Almaty, TechnoErudite. 2018. - 204 p.

3. Kotler F. Fundamentals of Marketing. 5th ed. F. Kotler., A. Gary., M-Williams. 2016. - 752 p.

4. Accounting in the agro-industrial complex: textbook / Z.O. Imanbaeva, L.P. Moldashbaev. - Nur-Sultan, 2021.

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