By James G. Brown
Booklet through Brown, James G.
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Extra resources for Agroindustrial investment and operations
Commercial success depends on satisfying the wants of the final consumer as well as all the others who participate in the market system. The product must move smoothly from the point of production to the point of final consumption. This is the basic principle of the market-driven approach to agroindustrial business development. The MarketA Business Definition Business people use the term "market" to describe the groups of individuals or organizations that make up their pool of actual and potential customers.
But their "wants" are of a more subjective nature. What does this mean for marketing practice? Once their basic needs are satisfied, customers give higher priority to their "wants". Thus, they might prefer to buy a pre-prepared, gourmet, low-calorie, frozen entrée packaged in a heat-and-serve tray, rather than bulk staples, once they know it can satisfy the body's need for sustenance. Their decision is governed by a wide range of wants, such as convenience, or their desire to project a cosmopolitan image, demonstrate their economic standing, or satisfy a particular taste.
Even a village with a small rice mill or an oilseed press can be said to be in the early stages of industrialization. As the domestic economy develops, disposable income and urban population grow and create markets for a greater volume and diversity of processed goods. When farm incomes rise and labor productivity increases, more and more production capacity can be diverted from agriculture to meet this new demand. Prepared foods such as bread, tortillas, and processed cassava quickly become standard items in urban and even rural diets.
Agroindustrial investment and operations by James G. Brown