Impact Of Physical Distribution Channels In Marketing Of Agricultural Produce
(A Case Study Of Perishable Agricultural Produce In Boki L.G.A Of Cross River State)
Physical distribution channels play a crucial role in the marketing of agricultural produce, influencing various aspects of the supply chain from production to consumption. These channels encompass the entire process of getting agricultural products from farms to end consumers, involving activities such as transportation, storage, and retailing. Efficient physical distribution channels optimize the flow of goods, reduce wastage, and ensure timely delivery, thus enhancing market access for farmers and increasing their profitability. Moreover, these channels facilitate the matching of supply with demand, enabling farmers to respond effectively to market fluctuations and consumer preferences. By providing infrastructure and logistical support, physical distribution channels enable agricultural producers to reach wider markets and enhance the visibility and accessibility of their products, thereby contributing to the competitiveness of the agricultural sector. Additionally, these channels serve as conduits for valuable market information, allowing farmers to make informed decisions regarding production levels, pricing strategies, and product differentiation. Overall, the effective management and utilization of physical distribution channels are essential for optimizing marketing outcomes and promoting the sustainable development of the agricultural sector.
Physical distribution channels has created a created a great impact by bridging the gap between the producers and the final consumers. The inability of farmers to effectively reach out to distance markets and most final consumers with their agricultural products have resulted to waste of resources in Boki local government area. The main objective of the study is to find how best to market agricultural products in the area. Primary and secondary data were collected through the use of questionnaires and documented materials respectively. The population of the study was 227,400, while the sample size was 399. Chi-square test statistics was used to test the high hypotheses. Among the findings of the study; in effective and high cost of transportation, lack of storage facilities and basic infrastructure hindered the marketing of agricultural products in the area. The researcher thus recommended the provision of basic infrastructure like accessible road, storage facilities and improved transport system among others to assist in improving the marketing of agricultural products in the area.
Title Page
Certification
Dedication
Acknowledgements
Abstract
Table Of Contents
CHAPTER ONE
1.1 INTRODUCTION
1.2 Stament Of The Problem
1.3 Objective Of The Study
1.4 Research Questions
1.5 Significance Of The Study
1.6 Scope And Limitation Of The Study
1.6 Definition Of Terms
CHAPTER TWO:
2.0 REVIEW OF RELATED LITERATURE
2.0 An Over View Of Physical Distribution
2.1 Nature And Importance Of Physical Distribution And Marketing Logistics.
2.2 Distribution Channels For Consumer Products
2.3 Objectives Of Channels Of Distribution
2.4 Functions Of Distribution Channels
2.5 Selecting The Type Of Channel
2.6 Distribution Of Agricultural Produce In Nigeria
2.7 Impact Of Agricultural Marketing In Nigeria
2.8 Factors That Affect Agricultural Marketing In Nigeria
CHAPTER THREE:
3.0 RESEARCH METHODOLOGY
3.1 Sources of data collection
3.1.1 Primary
3.1.2 Secondary data
3.2 Population of the study
3.3 Sample size determination
3.4 Sample technique
3.5 Validity and reliability of the instrument
3.6 Method of data analyses
CHAPTER FOUR:
4.0 PRESENTATION, ANALYSES AND INTERPRETATION OF DATA
4.0 Introduction
4.1 Data analyses
4.2 Test of hypotheses
CHAPTER FIVE:
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendix
1.1 INTRODUCTION
In many marketing science, the effective management distribution of product are essential to those that determine the extent of product availability at consumption point. Channel analyses is important in evaluating marketing system because it indicates how the various market participants are organize to accomplish the movement of products from the producer to the final consumer.
Distribution channel according to Philip, Kotler and Garry Armstrong (1999:362) is viewed as an interdependent organization involved in the process of making a product or service available for use or consumption by the consumer or business user.
Channels of distribution are management tools used in moving goods from the point of production to that of consumption. This function of getting goods into the hands of consumers is often referred to as „‟distribution„‟. Hence physical distribution involves planning, implementing and controlling the physical flow of materials, final goods
and related information from point of origin to point of consumption to meet customer requirements and satisfactorily.
Distribution channels however, play major roles in the marketing of goods and in the business sector as a whole. Williams {1984: 38} stated the following as the usefulness or the importance of distribution channels to include: firstly, it gives place utility i.e. by moving goods from one place to another. Secondly, by bringing goods to the place of consumption when needed, it adds time utility.
Also by bringing the goods to the consumer in convenient shape, unit size and packaging, it adds convenient value. Thirdly, by making it possible for consumers to obtain goods at a price he is willing to pay and under condition which brings satisfaction and ownership. Efficient and effective distribution system is particularly essential in moving perishable products from the points of production to the point of consumption due to the nature of the products.
1.1 STATEMENT OF PROBLEM
Physical distribution has impacted greatly in ensuring that goods and services are made available when and where they are desired and in safe
conditions. But due to the rise in technological development and global marketing, the process however, is not without problems as many companies and business people still lack adequate physical distribution facilities leading to the spoilage of these products before getting to their destination points.
Appropriate strategies for efficient and effective distribution of these products are required in distributing agricultural products in Boki local government area.
In Boki L.G.A lack of adequate and efficient distribution system has badly affected marketing of perishable products in the area as many of them perish on their way before getting to their consumption point.
1.2 OBJECTIVE OF THE STUDY
The following are objectives of the study:
i. To determine the problems that affects the selection of channels of distribution for agricultural products.
ii. To identify the basic components of physical distribution of agricultural marketing used in the area.
iii. To identify physical distribution strategies necessary or applicable for perishable agricultural products
iv. To make recommendation that could help to improve the efficient and effective physical distribution of agricultural products.
1.3 RESEARCH QUESTIONS
1. Do channels of distribution have any effect in the distribution of agricultural products in Boki L.G.A?
2. Do Government policies have influence on the distribution channel to be used for agricultural products in Boki L.G.A?
3. Does Boki have enough storage facilities that will promote agricultural products?
4. To what great impact has physical distribution channel in providing agricultural products when and where they are needed?
5. Does lack of infrastructures like access roads affects the distribution of agricultural products in Boki L.G.A
6. Does inadequate processing plant affect large scale production of perishable agricultural products in Boki L.G.A?
1.4 RESEARCH HYPOTHESE
Ho: channels of distribution are not effective in the distribution of agricultural products in the area
HI: Channels of distribution are effective in the distribution of agricultural products in the area
HI: Inadequate processing plants discourage large scale production of perishable agricultural products.
HO: Inadequate processing plants encourage farmers into large scale production of perishable agricultural products.
3. HO: Lack of basic infrastructure like access roads has no significance effects on agricultural products distribution in Boki L.G.A
Hi: lack of basic infrastructure like access roads has significance effects on the distribution of agricultural products in Boki L.G.A
4 HO: Government policies do not have significance influence on agricultural products in the area.
HI: Government policies have significance influence on agricultural products distribution in the area.
1.5 SIGNIFICANCE OF THE STUDY
This research would be of great importance and will assist farmers in the management of physical distribution channel in the area. It will also help business firms and organization that are involved in physical distribution in Boki Local government area.
This study will also reveal the available distribution channels in Boki L.G.A and how to effectively utilize them. It will serve as reference materials to other researchers who may carryout similar work in the nearest
future. Furthermore the result of this study will be of tremendous importance. It will also help consumers of perishable agricultural products to have these product when and where they are needed at the time they are needed .the study will equally assist channel member to know how best to perform their marketing activities to satisfy their clients, to local government, state and federal government ministries and parastatals seeking information as regards marketing of perishable agricultural products
1.6 SCOPE AND LIMITATION OF STUDY
This study is based on the perishable and none-perishable agricultural products in Boki local government. Information and data about „‟the impact of physical distribution channel in the marketing‟ is given only as related to these areas. Scarcity of resources in our depressed economy made it extremely difficult to conduct the research in a wide scope and area.
The financial commitment involved in this research work can also militate against wider coverage.
1.7 DEFINITION OF TERMS
DISTRIBUTION
Distribution is that which cover abroad range of activities aim at efficient movement of finished goods from the end of the production line to the consumers (Boon & Kurtz, 2000; 390)
DISTRIBUTION CHANNELS
Distribution channels consist of a set of interdependent organization involved in the process of making a product or consumption by the consumer or business user (Philip Kotler & Gary Armstrong 1999; 362).
Etzal, walker and Stanton (2007;380) defined marketing channel as the set of people and firms involved in the transfer of title of a product as the product mores from producer to ultimate consumer or business users.
Nwokoye (200; 105) define marketing channels as „‟the combination of institution through which a seller markets his products to the ultimate buyer‟‟ marketing channel are individuals or institutions that facilitates the flow the producer to the final user. Individuals and institution mentioned in this definition refer to middle men like wholesalers‟ retailers, distributors and agents.
REIABILITY: The ability of an item to perform a required function under stated condition for a stated period of time (Baily and Farmer, 19: 44).
MARKETING CONCEPT: According to kinnear and Bemhardt (1990:12,), marketing concept is a decision making approach that focuses on customer needs and their societal consequences as it integrates all activities of the organization to satisfy these consumer needs in a way that is consistent with concern for broader societal consequence. The purpose is to achieve long-run objectives through the satisfaction of these customer needs, which must be balance against the needs of society as a whole.
MARKETING MIX: Mc McCarthy and Perrault, (1991: 33) defined marketing mix as those controllable variables which a firm can use to influence favorable response and stimulate profitable sales in the marking place. Nell Borden popularize the concept of marking mix
AGRICULTURE: According to Webster‟s Dictionary (1980) agriculture is a science or practice of farming.
SHARE PROJECT MATERIALS ON:
Impact Of Physical Distribution Channels In Marketing Of Agricultural Produce:
Physical distribution channels play a crucial role in the marketing of agricultural produce. These channels encompass the various stages and intermediaries involved in getting agricultural products from producers to consumers. The impact of physical distribution channels on the marketing of agricultural produce can be significant and can affect aspects such as product quality, availability, pricing, and overall market reach. Here are some key points to consider:
- Efficient Transportation: Physical distribution channels ensure the efficient movement of agricultural produce from farms to markets. This impacts the freshness and quality of the products when they reach consumers. Efficient transportation reduces spoilage and ensures that produce arrives in good condition.
- Market Access: Distribution channels provide farmers with access to a wider range of markets. They can reach local, regional, national, and even international markets through various intermediaries like wholesalers, retailers, and exporters. This expands the potential customer base and can lead to increased sales.
- Product Quality and Handling: Distribution channels often involve sorting, grading, and packaging of agricultural produce. This helps maintain product quality and consistency, meeting consumer expectations and regulatory standards. Proper handling can also extend the shelf life of perishable products.
- Pricing and Value Addition: The choice of distribution channels can influence pricing strategies. Farmers may receive different prices depending on whether they sell directly to consumers at a farmers’ market, through a local retailer, or via a larger distribution network. Some channels may allow for value addition through processing and packaging, which can result in higher prices.
- Market Information: Intermediaries in distribution channels often have valuable market information. Farmers can benefit from this information to make informed decisions about what to grow, when to harvest, and where to sell their products. This information helps in reducing market risks.
- Risk Mitigation: Distribution channels can help mitigate risks associated with market fluctuations and weather-related challenges. By diversifying their customer base and having multiple distribution options, farmers can reduce their vulnerability to market shocks.
- Consumer Convenience: Retail distribution channels make agricultural products readily available to consumers in convenient locations. This convenience can increase consumer demand for agricultural produce, driving sales.
- Regulatory Compliance: Distribution channels often help ensure that agricultural products meet regulatory and safety standards. This is especially important for exports, where compliance with international regulations is critical.
- Brand and Reputation: Distribution channels can help build and maintain a brand’s reputation. Products that consistently meet quality and freshness standards through their distribution channels are more likely to develop a positive reputation among consumers.
- Economic Impact: The development of distribution channels can have a significant economic impact on rural communities. It can create jobs and stimulate economic activity in areas where agriculture is a primary industry.
In conclusion, physical distribution channels are a vital component of the marketing of agricultural produce. They impact product quality, market access, pricing, and overall market reach. Farmers and agricultural businesses should carefully consider their distribution strategies to optimize these factors and meet the demands of both domestic and international markets.