Abstract

Abstract. The analysis of the activity of agricultural enterprises indicated its inherent high degree of risk. Unlike other industries, a significant share of integrated risk for agriculture is weather risk. It is this risk that necessitates the diversification of agricultural marketing into three forms: with a deficit of the main commodity product of the agricultural enterprise in the market; with the balance of sales and supply and with the market surplus of marketable products. It is pointed out that in order to reduce the risk, a significant number of medium-sized producers rely on multi-product production and management has to simultaneously make use of all the intended forms of marketing. It has been established that the marketing activities of agricultural enterprises for a number of reasons: established tradition, lack of financial resources, etc. are often sporadic, fragmented, not a systematic, purposeful activity with defined goals, well considered tools, adequate funding and resources. Therefore, a number of specific steps have been proposed for the implementation of effective agribusiness: changing the traditional way of thinking; formation of a holistic systematic approach to marketing policy as a single coordinated complex of management and marketing; thorough study of the market of products manufactured by the agricultural enterprise, and the formation of the forecast for the next season. To strengthen marketing activities and conduct effective agribusiness, algorithms have been developed to gain a competitive advantage. It is shown that agricultural marketing today is becoming a broader field of activity than providing pure production and marketing using the main levers — price, product, sales and communication. It must best meet the needs and requirements of consumers, in particular, by shifting the main emphasis from price and sales aspects to communication. This is one of the main ways to ensure the function of agribusiness efficiency. It is proposed to use the experience of developed countries and more widely employ modern information technologies of management and marketing, in particular, decision support systems and analysis of risks and forecasts for the next period. The following ways are proposed for the use of modern decision support systems, risk analysis and forecasts in Ukrainian agricultural management and marketing: cooperation, use of these information systems on the basis of lease or, less relevant, expert risk assessment. A mathematical method of taking into account the degree of risk in the business processes of agricultural enterprises is proposed. Keywords: marketing, management, management, manager, agricultural management, agribusiness, information technology marketing. JEL Classification M11, M31, Q13 Formulas: 1; fig.: 3; tabl.: 0; bibl.: 22.

Highlights

  • Agricultural production has a significant difference from other branches of the economy, which, in the first place, is that the profitability of agro enterprises is largely dependent on weather conditions

  • The analysis showed that the largest fluctuations in the share of loss-making enterprises to their total number are demonstrated by small enterprises and the smallest fluctuations are among medium ones

  • Based on the information obtained during the study, it has been established that a significant degree of risks, first of all, weather risk is decisive for management and marketing of agricultural enterprises

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Summary

Introduction

Agricultural production has a significant difference from other branches of the economy, which, in the first place, is that the profitability of agro enterprises is largely dependent on weather conditions. Each agricultural enterprise deals with pricing policy as well as with promotion and sales of its products, communication with business environment and the study of competitors All this activity often has a sporadic, fragmented character. The third step consists in a thorough study of the market of products manufactured by agroenterprise and the formation of the forecast for the season It is the risks of agribusiness, to a significant degree - weather risk, that form the conditions and set tasks for management and require diversification and strengthening of marketing activities of agroenterprise. Since a significant number of small agricultural enterprises are not single-product, in accordance with their commodity nomenclature and heavy crop or crop failure, the agroenterprise must simultaneously work in all these directions

Strategic Marketing
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