Strengthening Agricultural Marketing

One of the best definitions of marketing is that “marketing involves finding out what your customer wants and supplying it at a profit.” Probed more deeply, this deceptively simple sentence manages to encompass most facets of marketing. It is also a convenient structure around which to explain the expanding role of ICT in strengthening agricultural marketing.

The phrase “finding out what your customer wants” emphasizes the role of communications in agricultural marketing. It encompasses two kinds of information: (1) the immediate information required on the market’s demand for specific volumes and quality of agricultural products and (2) the longer-term information on market trends (referred to here as “market intelligence”) required to make future plans for the farm. ICTs, especially mobile phones, facilitate the provision of both types of information. ICTs are used for real-time market research to obtain current information and help users gradually accumulate market knowledge and insight.

“Supply” emphasizes the critical role of transport and logistics in moving products efficiently and effectively from rural production areas to consumption points, which increasingly are located in distant urban markets. The management of supply chains—the aggregation of product, organization of transport, and consolidation of loads—is increasingly improving through the use of ICTs.

The phrase “at a profit” has as a subtext the multiple issues surrounding the reduction of costs and improvement of prices. Reducing costs can involve, for example, reducing transaction costs, reducing losses following the harvest, gaining better access to cheaper inputs, and increasing productivity for an overall reduction in the unit costs of production. Improving prices can involve, for example, gaining a stronger negotiating position, exploring alternative markets, or making better decisions on where and when to sell product