WIS331 MARKETING 02/26/1990 08:47 AM D1 363 Lines Agriculture Marketing/Distribution and Retail Services Marketing This unit deals with marketing. Topics include career opportunities, history of marketing, types of marketable goods, market functions, supply and demand, market equilibrium, market costs, and marketing alternatives. Objectives To acquaint students with employment information and career opportunities in the area of marketing in agriculture To increase student awareness of the history of marketing in agriculture To acquaint students with basic marketing concepts and applications To increase student understanding of the dynamics of supply and demand and influencing factors To increase student understanding of the various elements of the marketing system in agriculture To develop student appreciation of the role and importance of marketing in agriculture Competencies At the conclusion of this unit, students will be able to explain current employment information such as job descriptions, job availability, personal and educational requirements, working conditions, opportunity for advancement, and other factors relative to potential employment in the area of marketing in agriculture and relate it to their personal needs and aspirations; describe several highlights in the history of marketing in agriculture; distinguish between the five categories of marketable goods and give examples of each; demonstrate familiarity with the major market functions; explain how major types of markets operate; demonstrate familiarity with basic concepts of supply and demand; identify several factors influencing supply and demand for agricultural commodities; demonstrate familiarity with costs associated with marketing agricultural products; explain and discuss the merits of alternative marketing methods; and list strategies for improving marketing of agricultural products. Subject Matter (Basic skills integration areas are shown in brackets following title.) Careers - Current and future employment needs - Job descriptions - Training requirements - Working conditions - Opportunities for advancement - Other factors Marketing history [Social Studies] - Early methods - Current marketing Types of marketable goods [Science] - Perishable - Nonperishable - Raw materials - Finished products - Recycled materials Major functions of a market [Careers, Social Studies] - Buying - Selling - Transportation and distribution - Processing and packaging - Standardization and grading - Financing - Risk - Information and advertising Major market types [Social Studies] - Auction - Direct - Consumer direct - Local buyers - Central - Commissioned - Contracted - Co-op pools - Commodity trading - Computer Effects of supply and demand on markets [Careers, Mathematics, Science, Social Studies] - Supply-and-demand curves - Elasticity of supply and demand Elastic Inelastic Unitarian Factors that affect demand [Careers, Social Studies] - Number of consumers - Consumer tastes - Consumer income - Availability and price - Governmental influences - Imports and exports - Future conditions Factors that affect supply [Careers, Social Studies] - Number of sellers - Production costs - Technology - Competitive goods - Monopolies - Governmental influences - Future conditions Equilibrium in the market [Mathematics] - Price versus supply and demand - Cobweb theories Marketing costs [Careers, Mathematics, Social Studies] - Produce costs Risk Finance Production costs Transportation Raw materials Spoilage and shrinkage - Buyer costs Transportation Assembly Standardization Storage and holding Risk Finance Spoilage and shrinkage - Processor or packer costs Transportation Processing Grading and standardization Selling Holding and storage Financing Spoilage and shrinkage - Wholesaler costs Processing Transportation Risk Holding and storage Merchandising Spoilage and shrinkage - Retailer costs Transportation Risk Holding and storage Advertising Spoilage and shrinkage Marketing alternatives [Careers, Mathematics, Social Studies] - Marketing orders Milk Crops Livestock Advantages and disadvantages - Contract marketing Livestock Crops Milk Advantages and disadvantages - Options Types 1.premium 2.cull 3.put Reasons to option 1.types 2.futures prices 3.dates of expiration 4.strike prices Advantages and disadvantages - Hedging Short hedges Long hedges Advantages and disadvantages - Futures trading Chicago and New York exchanges Using futures in traditional marketing Advantages and disadvantages - Certificates of delivery Defined Types Uses Advantages and disadvantages - Consignment of goods Uses Advantages and disadvantages - Direct marketing Uses Advantages and disadvantages - Component marketing Uses Advantages and disadvantages Improvements in marketing [Careers, Science, Social Studies] - Producer education - Research markets before production - New products - Advertisement of products - Improved quality of produced goods - Expand exportation - Consumer education Motivational Activities Take a field trip to a local auction market. Post bulletin board displays that show current market prices for various commodities. Obtain a computer hookup to access up-to-the-minute market prices. Invite a local businessperson to give a marketing presentation. Take a field trip to an area business to observe its marketing program. Learning Activities Participate in a Supervised Agricultural Experience program. Record weekly market prices for a particular commodity and plot them on a graph. Play a Monopoly-type game using commodities. Sell food items, such as oranges, bananas, and candy bars, at a classroom auction; keep track of the bids that each item brings to study supply and demand. Instructional Materials Textbooks and References Fundamentals of Modern Marketing by Ed Cundiff et al. 4th ed. Englewood Cliffs, NJ: Prentice Hall, 1985. Available from National Farm Book Company. Marketing Farm Products: Economic Analysis by Geoffry S. Shepherd and Gene A. Futrell. 7th ed. Ames, IA: Iowa State University Press, 1982. Available from National Farm Book Company. Marketing of Agricultural Products by Richard L. Kohls and Joseph N. Uhl. 6th ed. New York: Macmillan, 1986. Available from National Farm Book Company. Bulletins and Pamphlets The following are available from the Chicago Mercantile Exchange. Livestock Hedgers Workbook Livestock Options The following are available from the Cooperative Extension Service. The Delicate Supply-Demand Balance. A2972. How Parity Prices and Support Levels Are Determined. A2974. The Milk Producer's Cost-Price Outlook for 1979. A2976. Pricing Milk to Farmers on a Component Basis. A2977. What Is a Federal Milk Marketing Order A2973. The following is available from the Ohio Agricultural Education Curriculum Materials Service. Agricultural Marketing Principles. AgDex 84. Periodicals Agri-View The Country Today Computer Software The following is available from the American Association of Vocational Instructional Materials. Price Discount vs. Interest The following are available from the American Vocational Association. Job Hunters Survival Kit. Apple. The following are available from Hobar Publications. Agricultural Marketing Alternatives. IBM. Agricultural Marketing and Commodity Futures. Apple. Futures Account. IBM. Grain Marketing. Apple, IBM. Price Charting. Apple. The following is available from Vocational Education Productions. Ag Management Series On-line Computer Networks The following are available from Ag Ed Network, AgriData Resources, Inc. About Profiting with Options. FE9993. Agriculture Marketing. CSU296. Futures. CSU298. Futures Market. CSU299. Grain Market. CSU302. Marketing Alternatives. CSU297. Films, Videotapes, and Slides The following is available from the Instructional Materials Laboratory. Agricultural Marketing. Ag-81-T (29 transparencies). The following are available from Modern Talking Picture Service, Inc. The Consumer Connection. 17728 (16mm film, color, 23 minutes). Trademarks: The Name Game. 20345 (16mm film, color, 15 minutes). 1980. The following are available from Nasco. Agricultural Cooperatives. C10554N (Filmstrip with cassette). Agricultural Marketing. C10556N (Filmstrip with cassette). Equipment and Facilities Computer/printer