Question

Question 5:

Marketing is a specialist activity just as is production in the farm business. Marketing requires the investment of resources for labour, capital and management.

Explain why activities in marketing should be appraised the same as any other investment in a farm business.

Answer 1

Marketing is an art and science both. Producer can maximize his profit by marketing. Investment is required on marketing as on other activities of business. In investment we get return in money but in marketing we get money in the form of increased sale of the product. Investment on marketing is required for the following reasons

To know the taste and preferences of that particular good and to know the interests of the consumer. All this possible in the form of marketing a businessman conduct a market survey to know the taste and preferences of particular age group or particular commodity.

To create demand- investment on marketing is required to create demand for the product marketing is the process by which demand ki predicted. Marketing create demand for upcoming products and services so investment on marketing is as required as other investments.

To analysis the market- Investment on marketing is required to analyse the market to know your share in market by marketing you can sustain your share in market and can create new share in market

To increase the goodwill- by investing in marketing your product will reach to everyone by this way reach of the product would be wide and this will increase goodwill of business which is important to every business

To make more sale and profit- by investing in marketing business get movement and product reaches to everyone and this leads to sale maximization and sale maximization leads to higher profit.