Price spread and marketing efficiency - SlideShare

PRICE SPREAD Price spread is defined as the difference between the price paid by consumers and. Costs in price spread includes (i) the cost involved in moving ... SlideShareusescookiestoimprovefunctionalityandperformance,andtoprovideyouwithrelevantadvertising.Ifyoucontinuebrowsingthesite,youagreetotheuseofcookiesonthiswebsite.SeeourUserAgreementandPrivacyPolicy. SlideShareusescookiestoimprovefunctionalityandperformance,andtoprovideyouwithrelevantadvertising.Ifyoucontinuebrowsingthesite,youagreetotheuseofcookiesonthiswebsite.SeeourPrivacyPolicyandUserAgreementfordetails. Upload Home Explore Login Signup Successfullyreportedthisslideshow. Activateyour14dayfreetrial tounlockunlimitedreading. Pricespreadandmarketingefficiency 14 Share SakthivelR • Oct.11,2017 • 14likes • 15,009views DownloadNow Download NextSlideShares Youarereadingapreview. Activateyour14dayfreetrial tocontinuereading. ContinueforFree UpcomingSlideShare Marketingefficiency,MarketmarginandMarketingcost Loadingin…3 × Facebook Twitter LinkedIn Size(px) Starton ShowrelatedSlideSharesatend Share Email     Topclippedslide 1 1of10 1of10 Pricespreadandmarketingefficiency Oct.11,2017 • 14likes • 15,009views 14 Share DownloadNow Download Downloadtoreadoffline Marketing ItcontaininformationaboutthePRICESPREADANDMARKETINGEFFICIENCY Readmore SakthivelR Follow GeospatialAnalystandDeveloper. ItcontaininformationaboutthePRICESPREADANDMARKETINGEFFICIENCY Readmore Marketing Marketingefficiency,MarketmarginandMarketingcost DrSathaiahManimuthu AgricultureMarketing(Mkt165)chapter5-marginalcost&mktgefficiencies watakmangapilu Bba103 InderSamant Productionfunction TinkuKumar TheoryofDemand DAVISTHOMAS Production1 PraveenOjha Producerssurplusandmarketstructureconductperformance AdhiyamaanRaj PerishableGoods AbdullahSarwar BusinessEconomicsUnit3 AmitSarkar Ebdani,lester JennyTuazon Marketingefficiency,MarketmarginandMarketingcost DrSathaiahManimuthu AgricultureMarketing(Mkt165)chapter5-marginalcost&mktgefficiencies watakmangapilu Bba103 InderSamant Productionfunction TinkuKumar TheoryofDemand DAVISTHOMAS Production1 PraveenOjha Producerssurplusandmarketstructureconductperformance AdhiyamaanRaj PerishableGoods AbdullahSarwar BusinessEconomicsUnit3 AmitSarkar Ebdani,lester JennyTuazon MoreRelatedContent SimilartoPricespreadandmarketingefficiency Economics3 GolamBitonsir MeModelAnswers infinity Economics100mostimportantquestionscbse svj8446160578 Agribusinessmarketanalysis DaisyIfeoma ManagerialEconomics JisjissyChandran demandanalysis QiscollegeofEngg.&technology Microeconimcs AmiteshYadav IntroductiontoMicroEconomics RajaRamSharma Bab6productionandporductioncost FazziDeen Theoryofcostfinal TejKiran Microeconomicsii UpanandaWitta Producerbehaviourandsupply madankumar Microeconomics VikasAbhishek Ch11 DorianK DemandAndsupply YashikaParekh Productionanalysis(2) pasupuletimadhulatha Marginalutilityapproach MacVasquez Microeconomics JaimineVaishnav Monopoly SreeSankaraCollegeKalady ConsumerandProducerSurplus DerekWessler MorefromSakthivelR Thermalremotesensing SakthivelR Remotesensingandgisformonitoringvectorbornediseases SakthivelR Bhuvan SakthivelR Pythoningeospatialanalysis SakthivelR c,c++,javaandpythoningisdevelopment SakthivelR Lmsmoodle SakthivelR Realtimepcr SakthivelR Howtowriteanarticle SakthivelR Fundamentalanalysisofsilver SakthivelR Climatechangeinagriculture SakthivelR consumerbuyingbehaviour SakthivelR Transposons SakthivelR Transgenicsinbioticstressmanagement SakthivelR Seeddrying SakthivelR Scminagrofoodindustries SakthivelR Probitmodel SakthivelR Privatizationinagriculture SakthivelR m-commerce SakthivelR Manmadedisasters SakthivelR Hardskillsandsoftskills SakthivelR Featured WhattoUploadtoSlideShare SlideShare BeAGreatProductLeader(Amplify,Oct2019) AdamNash TrillionDollarCoachBook(BillCampbell) EricSchmidt APIdaysParis2019-Innovation@scale,APIsasDigitalFactories'NewMachi... apidays Afewthoughtsonworklife-balance WimVanderbauwhede Isvcstillathingfinal MarkSuster TheGaryVeeContentModel GaryVaynerchuk MammalianBrainChemistryExplainsEverything LorettaBreuning,PhD Blockchain+AI+CryptoEconomicsAreWeCreatingaCodeTsunami? 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PRICESPREADANDMARKETING EFFICIENCY 2. PRICESPREAD Pricespreadisdefinedasthedifferencebetweenthepricepaidby consumersandthenetpricereceivedbytheproducerforanequivalentquantityof farmproduce. Itisexpressedaspercentageofconsumer’sprice. Pricespread=(Consumerprice–Netpriceofproducer)*100 Consumerprice 3. Costsinpricespreadincludes (i)thecostinvolvedinmovingtheproductfromthepointofproductionto thepointofconsumptioni.e.marketingcost. (ii)profitofthevariousmarketfunctionariesinvolvedinmovingthe producefromtheinitialpointofproductiontillitreachestheultimateconsumer. 4. ESTIMATIONOFPRICESPREAD 1)Lotmethod:Tracingthelotfromproductionpointtoconsumptionpoint. 2)Sumofaverageofgrossmarginmethod: Sumofgrossmargins/Totalnoofpersonsinvolved 3)Comparisonofpricesatdifferentlevelsofmarketing 5. MARKETINGEFFICIENCY Marketingefficiencyisthedegreeofmarketperformance. Marketingefficiencyistheratioofmarketoutputtomarketinginput (costofresources). MarketingEfficiency= 𝑂𝑢𝑡𝑝𝑢𝑡 𝐼𝑛𝑝𝑢𝑡 6. Theefficiencyofamarketstructurecanbeknownthroughthefollowing: (i)Whetheritfullfilstheobjectivesassignedtoitorexpectations fromthesystematminimumpossiblecostormaximizesthefulfillmentof objectiveswithgivenlevelofresources(orcosts) (ii)Whetheritisresponsivetoimpulsesgeneratedthrough environmentalchangesandwhetherimpulsesaretransmittedatalllevelinthe system. 7. APPROACHESTOACCESSMARKETINGEFFICIENCY TechnicalorPhysicalorOperationalefficiency:Thisaspectofefficiencypertains tothecostofperformingafunction.Efficiencyissaidtohaveincreasedwhencost isreducedforperformingafunctionforeachunitofoutput.Thisisdoneby reducingphysicallossesorthroughchangesinthetechnologyofthefunction.eg. Storage,packing,transportation,handlingandprocessing. PricingorAllocativeefficiency:Pricingefficiencymeansthatthesystemisableto allocateproductseitherovertime,acrossspaceoramongthetraders,processorsand consumersinsuchawaythatnootherallocationwouldmakeproducersand consumersbetteroff.Thisisachievedthroughpricingoftheproductatdifferent stages,atdifferentplaces,atdifferenttimesandamongdifferentusersandhence calledpricingefficiency. 8. ESTIMATIONOFMARKETINGEFFICIENCY 1)Conventionalmethod: ME=(Netpricereceivedbyfarmers–Consumer’sprice) MarketingCost 2)Shepherd’sformula: ME=Consumer’sprice (MC+Marketingmargin) 3)Acharyaapproach: ME=Netpricereceivedbyfarmers (MC+MM) 9. RELATIONSHIPBETWEENPRICESPREADANDMARKETING EFFICIENCY Pricespreadα 1 𝑀𝑎𝑟𝑘𝑒𝑡𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 i.e.,Pricespreadisinverselyproportionaltothemarketefficiency. Thefarmershouldgetpricespreadofmorethan50%forproperfunction ofthemarket. 10. 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