ECONOMICS FORM SIX; MARKETING AND DISTRIBUTION
UNAWEZA JIPATIA NOTES ZETU KWA KUCHANGIA KIASI KIDOGO KABISA:PIGA SIMU:0787237719
MARKETING AND DISTRIBUTION
–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;
- Cooperative societies
- Marketing board
- Internal and external trade authority
- Private companies.
- 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
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.
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.
- 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
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.
- Not flexible
- It is slow
- It is expensive to build a railway line
- Not suitable for short distance
ECONOMICS FORM SIX; MARKETING AND DISTRIBUTION
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
- 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
- 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 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
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
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,signlanguage,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.