Question

1. Agribusinesses engage in two different types of marketing. Discuss each and their relationship to each other. Discuss differentiated and undifferentiated products as they affect the activities of each of these two types of firms. What is the difference between a price maker and a margin maker? What are the conditions a processor must meet to enable her to price her products independently of the supplies and prices of relevant farm products? What constraints does a margin maker face? Why does a firm handling commodities often have more influence on its buying prices than its selling prices? 3. As a wheat trader, you have just heard an official projection of the U.S. average yield at 30 bushels for the upcoming crop. What else do you need to know for that information to become helpful?

Answer 1

The two different kinds of markets are Commodity Handling and Product Marketing. Product Handling is finest referred to as buying products "at the farm gate" (directly from the producer) and moving said products through marketing channels to consumers. Products are thought about undifferentiated products since there are little to no differences from one supplier's product to the next Undifferentiated items extremely cost competitive due to the harmony of each product and because of this, there is no chance to advertise to promote an item by one supplier. Item Marketing is the transformation of raw products into differentiated items. Because each business is producing its own variant of a product that separates the said product from its competitors, earnings can be translucent to the use of advertising and marketing. Item marketing companies also have a decreasing focus on price competitors since each product is distinguished from the next.

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