Wednesday, January 11, 2023

ECONOMICS FORM SIX TOPIC 5: MARKETING AND DISTRIBUTION

  Eli-express       Wednesday, January 11, 2023

 Marketing: refers to making communication about products or services. A purpose of which is to encourage the receipt of the communication to purchase/ use the product of the service

-Marketing involves finding what customers want, setting out to meet their needs provided and it can be done at a profit.

-Distribution: is a commercial activity of transporting and selling goods from a producer to a consumer. It is about how to get the product in the hands of consumer.

-NOTE:

The topic of distribution tries to identify the role played by cooperatives, crop authority, board, agencies, corporation etc.

In Tanzania marketing and distribution is done by;

Cooperative societies

Marketing board

Internal and external trade authority

Private companies.

COOPERATIVE SOCIETIES.

A cooperative societies is association of people who join voluntary with some common goal or objective

Is an autonomous association of person united voluntary meet their common economic, social and cultural needs.

Cooperative societies are based on the following principles;

Open membership

Limited interest on capital

Democratic control

Cooperative education for all members

TYPES OF COOPERATIVE SOCIETIES.

Societies are categorized into two main groups

According to membership registration

This includes primary cooperative society, secondary cooperative societies, national cooperative society and international cooperative society.

According to their services

This include saving and credit cooperative society, marketing cooperative society.

Consumer cooperative society

Transport cooperative society

Handcraft cooperative society

ROLES OF MARKETING COOPERATIVE SOCIETY

They help formers to market their produce

They own and run farms

They increase the bargaining power of their members

They protect farmers against exploitation by middlemen

They provide education to the members

They provide subsidies of inputs to formers

They provide employment in transport and marketing

They provide advice to farmers

They provide social services to the members

PROBLEMS FACING MARKETING COOPERATIVE SOCIETIES.

Government interference

Embezzlement of funds by leaders

Lack of skilled labors

Problem of mismanagement due to lack of managerial skills

Dishonest members where some of them are poor

Shortage of credit facilities to member

Inadequate transport, storage and packing facilities

Corruption

Tribalism

MARKETING BOARDS.

Are trading agencies established by the government to control the marketing of primary and processed agricultural commodities.

There two main categories of marketing boards;

The export marketing board

Statutory boards

II) STATUTORY BOARDS.

This is a marketing board that involved in market of food stuffs e.g. maize, cashew nuts etc

Examples of marketing boards in Tanzania;

Cotton marketing board

Coffee board

Maize produced board

Cashew nut board

ROLES OF MARKETING BOARDS

Buying product from farmers
Setting out prices with the help of the government
Storage and collection of produce
They offer transport from the producers to the warehouse
They offer advices to producers on mechanization and new technology
They control the production of the produce
They advice the government on importation and exportation products
They conduct research on marketing of agricultural product
They conduct selling of produce.

PROBLEMS FACING MARKETING BOARDS

The problem of overproduction

Price fluctuation

Government interference

Competition from private buyers

Delay of payment to farmers which discourages crop product

Lack of enough market for the produce

Low quality produce as result of poor technology

Problem of mismanagement of marketing boards.

BOARD OF INTERNAL TRADE (BIT)

It was establish in 1973 replacing state trading company. The board has the following functions;

Conducting internal market research

Advising the businessmen and government on trading activities

Organizing internal trade fair and exhibition

It sets and revises internal trade policies

They supervise all internal trade activities

They provide employment to qualified person in the board

BOARD OF EXTERNAL TRADE (BET)

The following are the function of BET;

They conduct market research

They provide training of personnel in foreign trade

They provide information on export commodities requiring businessmen from abroad

They provide consultation services

They participate in trade outside the country

They look for market for produce abroad

PRIVATE CROP BUYERS.

Are businessmen, who buy crops directly from producers, they can be in the form of individual or companies.

ADVANTAGES OF PRIVATE CROP BUYERS.

They provide incentives to farmers

They buy and pay in cash

They reduce bureaucracy in buying of crop

They increase competition in buying of crops

They provide subsidies and other financial assistance to the farmers

They reduce the producer’s problems of storage by buying immediately of harvesting.

DISADVANTAGES OF PRIVATE CROP BUYERS.

Private buyers lead to instability in price.

Private buyers buy produce at low prices to maximize profit

They do not provide education to producers

Private buyers do not private infrastructure services like those provided by cooperative and market board.

Private buyers reduce the strength of cooperative society

They do not help to improve the quality of the produce

Private buyers do not provide inputs to producer like cooperative society.

The existence of private crop buyers has led to decline of quality some product because sell crops before they mature at low price.

The existences of private buyer have led to high level of theft of produce.

TRANSPORT AND COMMUNICATION.

Transport; is a movement of a good or service from one place to another.

The following are the modes of transport.

There are mainly three forms or modes of transport namely.

Land transport

Air transport

Water transport.

LAND TRANSPORT.

It includes the following means of transport human portage, animal transport, road transport

Human portage

It consider/ means of transport where human beings acts as unit of carriage (vessels)

It is flexible

It is always available and can be provided by anybody

It has the lowest cost

It can be used in area where other means of transport cannot be used

DISADVANTAGES

It is very slow

It is limited to a given types of good

Animal transport

This is means of transport which uses camels, horses, donkey, bulls as a means/ units of carriage.

ADVANTAGES

Its flexible

It can be used in hostile areas

It is cheap

It is faster compared to human portage

Its slow compared to other means of transport

It is used for specific goods

Not suitable for long distance

Road transport

This involves the use of vehicles.

ADVANTAGES

It is fast for short distance

It cheap for short distance

It is flexible compared to rail transport and air water

It provide for consumer choice by offering variety of unity of carriage

It does not require very strict time schedule compared to trainer aeroplane.

Its available in many areas including rural areas

It reduces damage of goods resulting from quick deliberate

DISADVANTAGES.

It is slow over long distance

It has risk of theft and hijacking by highway robbers

It is expensive for long-distance.

It carries limited loads compared to other means

Road construction is expensive

Lead to accidents

It is affected by weather condition

Railway transport

ADVANTAGES

It is cheap over long distance

It can carry bulk goods

It is less affected by weather condition

It provides warehousing services at different terminals

It follows a time schedule.

DISADVANTAGES

Not flexible

It is slow

It is expensive to build a railway line

Not suitable for short distance

Pipe lines.

This refers to use of pipe in transporting liquids and gases i.e. Tazama

ADVANTAGES

It is convenient

After construction of pipeline, it’s cheap to maintain

It cover a long distance

It carries a big volume of liquids and gases

Its suitable and reliable

Extension can be made to make it flexible

DISADVANTAGES.

The initial cost of constructing a pipeline is very high

It has high risks of destruction

If a leakage is not detected it can be very dangerous

They cannot carry solid goods

WATER TRANSPORT.

It is cheap no cost construction

It carries bulk goods

It has less risks of accidents

It is good for inflammable goods such as fuel

Modern flight are well equipped for protection with containerization and refrigeration

It is comfortable

DISADVANTAGES

It is not flexible, it is geographically determined

It is very expensive to build a ship

Not suitable for passengers over long distance

In case of an accident there is higher possibility of a great loss of life

It causes delay in delivery

It is not economical for small quantities of goods.

AIR TRANSPORT

ADVANTAGES

It is the fastest

It is free from physical barriers

It enables producer to deliver their good easily

It is suitable and comfortable over long distance

They have well developed packaging methods

DISADVANTAGES

It is expensive to build or buy a plane

It is very expensive to use

It is not flexible

It is accidents are fatal i.e. bring great loss of life

It is not reliable during bad weather condition

It has high risk of high jack

It follows a schedule timetable

FACTORS TO CONSIDER WHILE CHOOSING A MEANS / MODE OF TRANSPORT

The distance

The cost of transport

The agency of the matter

The nature of the good to be transport i.e. the size

The means of transport available

The terminal of the passengers

COMMUNICATION

Is the transfer of information from one person or point to another

The following are type’s communication;

ORAL COMMUNICATION

Is the convention of information through mouth

2. WRITTEN COMMUNICATION

Is the convention of information through written documents

3. VISUAL COMMUNICATION

This involves use of picture

4. AUDIOVISUAL COMMUNICATION
Note:
Generally is composed with written and Visual communication in which verbal communication involves the use of words (face to face) and Non verbal involves the use of gestures,symbols and sign language like Tanzania sign language (TSL)

5.VERBAL COMMUNICATION-face to face ,telephone,radio,television and other media.

6.NON VERBAL COMMUNICATION-body language,sign language,gestures,how we dress or act.

TOPIC 15: MARKETING AND DISTRIBUTION ~ ECONOMICS FORM 6
QN. Discuss the roles of transport and communication in the economy

TRANSPORT AND COMMUNICATION PLAY THE FOLLOWING ROLES

It helps to create a market

It bridges the gap between producer and consumer

Enables contact to exist between producer, seller and consumer

It increase mobility of labor and other factor of production

It provide employment

It enable the transfer of technology and trading information

It make goods available where needed

It help to change utility of goods from one place another

It brings about consumers choice

PROBLEM FACING TRANSPORT AND COMMUNICATION

Lack of funds to construct and maintain road railway unit of carriage

Increasing number of accidents

Poor weather conditions

Increasing cost of fuel

Lack of enough goods/ products to transport

Remoteness of some areas.

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