Categories: Lesson Notes

JSS 3 First Term Agricultural Science Lesson Note – Pricing and Advertising

The content is just an excerpt from the complete note for JSS 3 First Term Agricultural Science Lesson NotePricing and Advertising. Check below to download the complete PDF

 Topic:Pricing and Advertising

Content:(a) Definition of pricing

(b) Price determinants

Sub-Topic 1: Definition of pricing

Price means the amount of money that is offered or asked for when something is bought or sold.

 Pricing. It is the placing of price on a particular farm produce that will suit the customers and fetch higher income to the farmer. Farmers also promote their products and services through such techniques as advertising and personalized sales, which serve to inform potential customers and motivate them to purchase.

Advertising is also a means by which a farmer tells the would-be consumers about the existence of a product, the quality, the uses and the price of such produce.

Four elements are normally distinguished: getting the right product to the market; selling the product at the right price; ensuring that the promotion is right—that is, advertising and marketing for the product; and ensuring that the product is distributed to the most convenient place for customers to buy it.

Pricing strategy

It is defined as the method adopted by the business to set its selling price

The step implemented by a firm to determine the optimum price of a product, and the strategy includes:

  1. Cost-plus pricing: this is the cost of manufacturing the products plus the profit mark up
  2. Competitive pricing:this involves setting price in line with or just below the competitors price to try capture the more of the market
  • Penetration pricing: this when the price is set lower than the competitors price in order to be able to enter a new market.

 Sub-Topic 2: Price Determinants

In a market, there are buyers and sellers. The buyers bring their money to the market to buy goods while the sellers bring the goods to the market for sale. The factors that determine the price at which both the seller (farmer) and buyer (consumer) are satisfied are:

(i)Cost of production

(ii) Quality of produce

(iii) Quantity of produce

Cost of production: to determine the price for your product, it is important to use your cost of production as your base. Therefore, you must know your cost of production so that a break-even point can be established.

Government policies: government subsidies reduce the input cost for farmers, and support prices fixed by the government that ensures that prices do not fall below such levels. Policies that curb export of agricultural products may prevent shortages or causes a glut in the market, leading to stable prices or a

DOWNLOAD FILE

Sunday

Share
Published by
Sunday

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

2 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

2 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

2 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

2 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

2 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

2 months ago