Marketing and Computing Gains EPP/TLE 6 Quarter 2

EPP/TLE 6

1. Marketing and Computing Gains

2. Marketing refers to all activities that entrepreneurs do to promote and sell products or services to consumers. Marketing makes use of the marketing mix," also known as the four Ps—product, price, place, and promotion .

3. a. Product refers to an item an entrepreneur plans to offer to customers . b. Price refers to how much the entrepreneur will sell his/her products . c. Place refers to the distribution of the product. d. Promotion refers to the integrated marketing communications campaign which includes advertising, selling, sales promotions, public relations, direct marketing, and others.

4. The farmer may choose any of the following of methods of selling: 1. Direct farm sales. A convenient way to generate income since there is no extra cost for rent. Selling transactions can be done within the farm. 2. Farmer’s market/livestock auction market. As an animal raiser/farm operator, you should be on the lookout for events such as livestock auction markets or similar events in your area where people from nearby provinces come to buy livestock direct from raisers themselves.

5. 3. Farm to market. Some farming families or entrepreneurs also have meat shop or fish stall in the nearby wet market to sell their own products. 4. Restaurants. One possible livestock client can be the nearby restaurants in your area. You could establish “suki” system. 5. Selling through middlemen. Middlemen are people who buy goods from animal and fish raisers and sells them to retailers or other consumers.

6. 6. Cooperative marketing. One way to make sure there are good prices and food security is to form a cooperative or a marketing association with other farmers. When farmers sell their products together , they can better control the prices they get for their crops and reduce the costs of transportation and marketing. 7. Internet marketing is the most inexpensive way to reach target market . Also called online marketing, internet marketing is the process of promoting a product or services over the internet.

7. Steps in Computing the Selling Price and Profit Desired 1. Determine the total expenses A. Cost of total expenses · Cost of Animal—piglets, fingerlings · Cost of Feeds · Vitamins and supplemental food · Immunization and Vaccination

8. B. Operational Expenses · Labor · Transportation · Housing · Utilities (Water and Electricity) · Taxes · Medical Consultations · Miscellaneous

9. Determine the percentage profit desired or how much you want to earn. To compute the amount equivalent to your desired percentage profit , multiply the total expenses (cost of materials + operational cost ) by your percentage profit desired expressed in decimal points . For example, if total expenses for raising 10 hogs in 5 months is P40,000.00 and the percentage profit desired is 30%, multiply P40,000.00 by 0.30 and the amount is P12,000.00 This is your expected profit.

10. Add the total expenses and percentage profit to determine the selling price of the 10 hogs. Selling price is the 10 hogs is P52,000.00.