TOPIC 15: MARKETING AND DISTRIBUTION ~ ECONOMICS FORM 6
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.
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;
Internal and external trade authority
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;
Limited interest on capital
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.
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
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
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
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
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.
It includes the following means of transport human portage, animal transport, road transport
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
It is very slow
It is limited to a given types of good
This is means of transport which uses camels, horses, donkey, bulls as a means/ units of carriage.
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
This involves the use of vehicles.
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
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
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.
It is slow
It is expensive to build a railway line
Not suitable for short distance
This refers to use of pipe in transporting liquids and gases i.e. Tazama
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
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
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
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.
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
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 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
Is the transfer of information from one person or point to another
The following are type’s 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
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.
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.
TOPIC 16: INTERNATIONAL TRADE ~ ECONOMICS FORM 6