Answer to Question #235978 in Marketing for Vhugala

Question #235978
MrMakgathoisalivestockfarmerfromPhethwanewhohasbeenowninggoatsandcattlefor over 7years. Unfortunately,he hasbeenrearing hislivestockwithoutselling themmeaning he never participated in a market, even though he invests his time, energy andmoney in the production of those livestock.One day he was approached by Mr Mulaudziwho was interested in purchasing some of the livestock since he owns a butchery. Theydiscuss trading the livestock in exchange for money. Mr Makgatho was reluctant at first butfinally agreed to exchange his livestock at a price that Mr Mulaudzi wanted. Based on thisscenario, answer thefollowingquestions.

Whichtypeofpricingmechanismisthis?Andmotivate your answer. (5)
WhyfarmerlikeMrMakgathoareoftencheatedinthemarketandhowcanhebewellequippedorknowledgeable aboutthemarketdynamicsandactivities. (10)
Expert's answer

Fixed pricing because they predefined prices based on livestock.

How to be well equipped about the market the marker

  • The value of established brand awareness and loyalty cannot be overstated. Customers back brands with which they identify. This devotion and trust are typically built over many years, and it is exceedingly difficult to break them.
  • Cultural subtleties may seem insignificant during the planning stages—after all, you'll be hiring locals to manage the firm for you, right? On the other hand, today's consumers are well-educated and can spot a "fake" when they see one. To fulfill the demands of the local market, you must adequately prepare.
  • Hire a local attorney who can educate you on local business regulations and keep you out of trouble to prevent legal blunders and bureaucratic complexities. It is just not enough to rely on your own intelligence and resources. An expert on the ground can ensure that your new market entrance plan follows the rules of the road at all times.

reasons why farmers do not find it profitable to perform their marketing activities to improve their prices

  • They treat it as a way of life rather than a business.
  • The second reason is that they choose low-end earning sources.
  • The third reason small farms fail is due to inadequate or non-existent bookkeeping.
  • And the reason for this is because it was undercapitalized from the beginning.

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