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Marketing mix of agricultural enterprises

Author(s) Kharenko A.A., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Tsymbaliuk Y.A., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2016 issue 89. Pat 2
pages 146-158 index UDK 631.1.027
Abstract The article reviews the components of the marketing mix of agricultural enterprises in Cherkassy region and determines directions of their improvement. Agricultural enterprises of the region have a breadth of 4P marketing mix – 6 positions and the length – 4.83. The main types of products for these farms are cereals (maize and winter wheat), oilseed crops (especially sunflower seeds) and sugar beet. As for the livestock production, the development of dairy breeding is considered to be the item of the highest priority. Under current conditions in Ukraine, commodity producers have to focus on procurement prices of processing companies and for-profit organizations which buy goods for resale. Taking into account the particular significance of agricultural products and its producers for the stable development and country’s independence, the state should be substantially involved in price setting. The following sales channels of agricultural enterprises’ production are distinguished: processing companies, share rent, salary, marketing and for-profit organizations. Each sales channel ratio is different for each type of production. Cereal and oilseed crops are sold by commodity producers mainly through channel resellers. Sales of sugar beet and livestock production are realized through direct marketing channels. The open trade is not practically used. The marketing activity of agricultural commodity producers is developed least of all. Primarily, it is related to the peculiarities and specific features of the agricultural marketing, and then – to the lack of understanding of the overwhelming majority of directors to take into consideration it for ensuring the effective development of farms. The most effective marketing mix tool of the enterprise is a product. Other tools such as communication, distribution and price are only based on its characteristic features. The overwhelming majority of agricultural commodity producers have no special units or people doing marketing within the enterprise. Directors and main specialists of the enterprise act as marketing experts but they mainly deal only in trade and price policy, as well as in the distribution based on their own experience and current situation. Promising directions of business activities on the improvement of components of the marketing mix are implementation of a program of improvement in the quality of production, stock marketing development, attracting professionals to perform marketing functions in enterprises and the development of service cooperative business (storage, primary processing of products, market research, creation of optimal quantities of goods and promotion).
Key words agricultural enterprises, marketing mix, assortment of goods, price determination, distribution policy, product promotion.
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