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Identify agricultural marketing systems A, B and C represented in the diagram above.
Business/Management
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Step-by-step solution
6 steps2.1.1
Identify marketing system A.
System A describes members working together voluntarily for a common goal. This is characteristic of a cooperative.
Identify marketing system B.
System B describes farmers selling freely to achieve the highest price. This is characteristic of individual marketing or a free market system.
Identify marketing system C.
System C describes the government deciding on prices to stabilize them. This is characteristic of control marketing or state-controlled marketing.
- A: Cooperative marketing
- B: Individual marketing (or Free market marketing)
- C: Control marketing (or State-controlled marketing)
2.1.2
State two principles of marketing system A (Cooperative marketing).
- Voluntary and open membership
- Democratic member control (one member, one vote)
2.1.3
State one disadvantage of marketing system B (Individual marketing).
- Individual farmers have limited bargaining power, which can lead to lower prices for their produce.
2.1.4
State one benefit of marketing system A (Cooperative marketing) to the members.
- Members gain increased bargaining power due to collective selling, leading to better prices for their products.
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