CORE 4 - Market Produce

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Competency-Based Learning Materials

Market Produce

Date Developed:
CBLM in January 2022
AGROENTREPRENE
Developed by: Page 1 of 119
URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
HOW TO USE THIS COMPETENCY BASED LEARNING MATERIAL

Welcome to this Competency Based Learning Material for the Module


MARKET PRODUCE.

This learning material contains activities for you to complete. It covers the
knowledge, skills and attitudes required to complete the competency:
MARKET PRODUCE one of the modules in the Core Competencies for
Agroentrepreneurship NC II.

You are required to go through a series of learning activities in order to


complete each of the learning outcomes of this module. In each learning
outcome, Learning Elements and Reference materials are available for your
further reading to assist you in the required activities. You are expected to
accomplish all the required activities and to answer the self- check after
each learning element. Please note that you need to have 100% correct
answers to each self-check to pass the activity. You are required to obtain
answer sheets, which are available from your trainer or at the end of each
learning element, to reflect your answers for each self-check. If you have
questions, please do not hesitate to ask your facilitator for assistance.

Recognition of Prior Learning (RPL)

You have acquired some or most of the knowledge and skills covered in this
learning material because you have:

 Actual experience on the job;


 Already completed training in this area.

So, if you can demonstrate to your trainer that you are competent in a
particular skill, you do not have to do the same training again. Or, if you feel
you have the skills, talk to you trainer about having them formally
recognized. You may also show Certificates of Competence from previous
training. And if you acquired skills are still updated/relevant to the module,
they may become part of the evidence you can present for RPL.

A Learner’s diary can be found at the end of this learning material. Use this
diary to record important dates, jobs undertaken and other workplace
events that will assist you in providing further details to your trainer or
assessor. Record of Achievement is also provided for your trainer to fill-in
upon completion of this module.

Date Developed:
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
This module was prepared to help you achieve the required competency in
Agroentrepreneurship NC II. It will serve as a source of information for you
to acquire required knowledge and skills for AGRI FISHERIES SECTOR, with
minimum supervision or help from your trainer. This material will aid you in
acquiring the competency at your own pace, independently. To achieve the
full benefit of this module.

 Talk to your trainer and agree on how you will both organize your
training on this unit. Read through the Competency Based Learning
material carefully. It is divided into sections which will cover all the
skills and knowledge you need to successfully complete this module.
 Most probably, you trainer will be your supervisor. He/She will be
there to support and show you the correct way to do things. Ask for
help if you need one.
 Your trainer will tell you about the important things you need to
consider when doing the activities. It is important that you listen and
take notes.
 You will have plenty of opportunities to ask questions and undergo
rigid practice. This will help you in achieving competency your new
skill. Sample practice will improve your speed, memory and even
confident.
 Talk with more experienced colleagues and ask for guidance.
 Answer self-checks at the end of end section to test your own
progress.
 When you finished each element and feel that you are ready,
demonstrate the activities outlined in the learning material to your
trainer.
 As you work through the activities, your trainer will be taking note of
your performance. He/She will be providing feedback on your
progress. Your readiness for assessment will be reflected in his/her
report, if and when you have successfully completed each element.
 When you have completed this module and feel confident that you
have had sufficient practice, you may request you trainer to arrange
an appointment with a registered assessor for your assessment. The
results of the assessment will be recorded in your Competency
Achievement Record.

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Caren Grace Justo-
Market Produce
Alibania
LIST OF COMPETENCIES

No. Unit of Competency Module Title Code


1. Assess Market Assessing Market AFF243301
Opportunities Opportunities
2. Establish Farm Establishing Farm AFF243302
Production Plan Production Plan
3. Handle Finances Handling Finances AFF243303
4. Market Produce Marketing Produce AFF243304

Date Developed:
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AGROENTREPRENE
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Caren Grace Justo-
Market Produce
Alibania
UNIT OF COMPETENCY : MARKET PRODUCE

MODULE TITLE : MARKETING PRODUCE

MODULE DESCRIPTOR: This unit deals with the knowledge, skills and
attitudes required of farm owner/agro-entrepreneur to monitor prevailing
price of produce, apply marketing strategies and trade produce

NOMINAL DURATION : 48 hours

SUMMARY OF LEARNING OUTCOMES:


Upon completion of this module the students/trainees will be able to:

LO1. Monitor prevailing price of produce;


LO2. Apply marketing strategies;
LO3. Sell produce

ASSESSMENT CRITERIA:
 Determine major buyers and trading centers of the produce according
to industry practice
 Gather information on price following standard procedure
 Record price information following industry standard procedure
 Use collected information in strategizing to optimize sales and profit
according to standard marketing procedure
 Apply value adding activities to increase sales and profit based on
market plan
 Identify services of business development service (BDS) providers
based on industry practices
 Do consolidation of produce and group marketing following industry
practices
 Perform negotiation with buyers and business development service
providers according to industry practice
 Establish sales terms and condition and agreed following marketing
practices
 Prepare produce for selling according to marketing requirements
 Deliver produce to buyers based on agreement

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January 2022
AGROENTREPRENE
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
 Assess marketing operation based on marketing practices
 Record details of marketing transaction and keep as reference
following industry practice

Date Developed:
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AGROENTREPRENE
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
LEARNING OUTCOME # 1 Monitor prevailing price of produce

CONTENTS:
 Types of buyers and trading centers
 Criteria in determining major buyers
 Supply and demand in relation to price movement
 Sources of price information
 Method of monitor prices
 Procedures in recording price information

ASSESSMENT CRITERIA:
1.1. Determine major buyers and trading centers of the produce
according to industry practice
1.2. Gather information on price following standard procedure
1.3. Record price information following industry standard
procedure

CONDITIONS:
The students/trainees must be provided with the following:
 Writing materials
 References
 Handouts
METHODOLOGIES:
 Modular self-paced
 Lecture/discussion
 Demonstration/role play
ASSESSMENT METHODS:
 Direct observation and questioning
 Demonstration
 Oral interview and written test

Date Developed:
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January 2022
AGROENTREPRENE
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
Learning Outcome#1: Prepare Budget Plan

Learning Activities Special Instructions

1. Do not write anything on the


1. Read Information Sheet No. 4.1-1
module; provide extra paper in
on Determine major buyers and doing the Self-check.
trading centers of the produce
according to industry practice

2. Answer the Self-check 4.1-1 Refer your answer to Answer Key


4.1-1.
3. Read Information Sheet No. 4.1-2
on Gather information on price
following standard procedure

4. Answer the Self-check 4.1-2 Refer your answer to Answer Key


4.1-2.
5. Read Information Sheet No. 4.1-3
Record price information following
industry standard procedure

6. Answer the Self-check 4.1-3 Refer your answer to Answer Key


4.1-3.

Date Developed:
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January 2022
AGROENTREPRENE
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
INFORMATION SHEET 4.1-1
DETERMINE MAJOR BUYERS AND TRADING CENTERS OF THE
PRODUCE ACCORDING TO INDUSTRY PRACTICE

Learning Objective:
After reading this information sheet you should be able to determine
major buyers and trading centers of the produce according to industry
practice
INTRODUCTION:
Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of your ideas, goods or services to satisfy
the needs of individual consumers or organizations.
Every business need to successfully market their products and
services. Marketing is a critical tool for establishing awareness, attracting
new customers and building lasting relationships. When done effectively,
marketing can help you increase sales and establish your competitive
advantage.
Marketing refers to all activities a company does to promote and sell
products or services to consumers. Hence, in the market where the
costumer and buyer meet.
Kinds of buyers and trading centers:
a. Local traders- is an individual who engages in the buying and selling
of financial assets in any financial market, either for themself or on behalf of
another person or institution. The main difference between a trader and an
investor is the duration for which the person holds the asset. Investors tend
to have a longer-term time horizon, while traders tend to hold assets for
shorter periods of time to capitalize on short-term trends.
b. Trading agents- A trade agent is an entrepreneur who works as an
intermediary to connect buyers and sellers. Also referred to as import-export
agents or brokers, these professionals buy items from a company and sell
them directly to customers.
c. Manufacturer - A manufacturer is a person or company that produces
finished goods from raw materials by using various tools, equipment, and
processes, and then sells the goods to consumers, wholesalers,
distributors, retailers, or to other manufacturers for the production of more
complex goods.

Date Developed:
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AGROENTREPRENE
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URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
Manufacturers are considered a significant part of the economy.
Manufacturing can be traced back to the ancient world. However, for many
centuries, the typical manufacturer was a single skilled artisan with
assistants. Each artisan kept the secrets of the production and transferred
the knowledge only to apprentices. Production was limited to manual
operations.

Types of Manufacturers
1. Made to Stock (MTS)
Made to Stock manufacturers produce substantial quantities of goods
and store the manufactured goods before their final sale. MTS businesses
aim to forecast the demand for their products in the market and then
produce the quantity of goods corresponding with the predicted demand.
The success of made to stock manufacturers mostly depends on their
ability to forecast the market demand correctly. If the forecast significantly
deviates from the actual demand, they will face the under- or over-
production.
2. Made to Order (MTO)
Unlike their MTS counterparts, made to order manufacturers produce
goods only if they receive orders from customers. The nature of MTO
production eliminates the necessity to forecast future demand for the
products. Thus, MTO businesses will not face overproduction.
However, MTO manufacturers generally face a higher lead time
between the initiation and completion of an order. In addition, a sudden
increase in the current demand for the products tends to put additional
pressure on the operations, which, in turn, will lead to even higher lead
times.
3. Made to Assemble (MTA)
Instead of immediately producing a final good, made to assemble
manufacturers initially create the basic parts of a final good that can be
quickly assembled together when an order from a customer is received.
MTA production significantly reduces lead times for customer orders.
Nevertheless, the business could face lower demand for certain types of
basic parts.
d. Wholesaler- is a person or company who sells products in bulk to
various outlets or retailers for onward sale, either directly or through a
middleman. Wholesalers are able to sell their products for a lower price as
they are selling in bulk, which reduces the handling time and costs involved.

Date Developed:
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Market Produce
Alibania
e. Retailer- is a person or a company who sells products directly to their
customers for a profit. The retailer may be the manufacturer of the product,
or may acquire relevant products from a distributor or a wholesaler. The
products they sell will be at a higher price than they would be from a
wholesaler, due to markups.
f. Local/public market- is made up of small independent businesses,
and each shop or stall is owner-operated. Rather than one company selling
every item, like you would find in a supermarket, a public market features
dozens of vendors selling food and other products they made themselves.
g. Consumers- Consumers are defined as individuals or businesses that
consume or use goods and services. They are people or organizations that
purchase products or services. The term also refers to hiring goods and
services. They are humans or other economic entities that use a good or
service. Furthermore, they do not sell on that item that they bought. They
are the end users in the distribution chain of goods and services. In fact,
sometimes the consumer might not be the buyer.
h. Supermarket- A supermarket is a self-service shop offering a wide
variety of food, beverages and household products, organized into sections.
This kind of store is larger and has a wider selection than earlier grocery
stores, but is smaller and more limited in the range of merchandise than a
hypermarket or big-box market. In everyday U.S. usage, however, "grocery
store" is synonymous with supermarket, and is not used to refer to other
types of stores that sell groceries.
The supermarket typically has places for fresh meat, fresh produce,
dairy, deli items, baked goods, etc. Shelf space is also reserved for canned
and packaged goods and for various non-food items such as kitchenware,
household cleaners, pharmacy products and pet supplies. Some
supermarkets also sell other household products that are consumed
regularly, such as alcohol (where permitted), medicine, and clothing, and
some sell a much wider range of non-food products: DVDs, sporting
equipment, board games, and seasonal items (e.g., Christmas wrapping
paper in December).

Criteria in determining major buyers
6 Segmental Choice Criteria Used by Company When Buying Products
from Supplier!
Choice criteria are used by members to evaluate supplier proposals.
These criteria are likely to be determined by performance criteria used to

Date Developed:
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Market Produce
Alibania
evaluate the members themselves. Purchase managers will be evaluated on
reduction of purchase expenditure, so they will be price conscious.
Quality managers will be evaluated for the quality of the output
produced from the machines, so they will ensure that the equipment is
capable of producing quality output. Organizations use technical, economic
and personal criteria.

1. Quality:
Quality means different aspects depending on the type of product the
company is buying. For equipment that is used to manufacture items in
bulk, the capacity of the machine and the cost per unit would be the major
factors of quality.
For a component that goes into the assembling of a final product,
quality is about meeting the designed specifications. The quality of the
component that goes into the making of a product, effectively determines the
quality of the product of the customer.
Quality of business products is very important because they directly
determine the quality of operations and quality of products of the business
customers. Business marketers have to convince their buyers that by using
their products and services, buyers can improve their operations and quality
of the products they make.

Date Developed:
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AGROENTREPRENE
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Market Produce
Alibania
2. Price and Life Cycle Costs:
For products of similar specifications and quality, price becomes a key
consideration. Life cycle costs include productivity savings, operating costs,
maintenance costs and residual values as well as initial purchase price.
When evaluating products some companies make detailed evaluations
of life cycle costs, because they realize that during the life of the equipment
it may actually incur costs few times the initial price of the equipment, in
the form of operating costs and maintenance costs.
By calculating life cycle costs of a product, new perceptions of value
may be achieved. A supplier whose initial price is higher than its
competitors but whose product otherwise is better, should calculate the life
cycle costs of its own equipment and that of its competitors to demonstrate
to the buyer that the competitors’ products with less initial price will
actually work out to be more costly for him.
3. Continuity of Supply:
Disruption of a production run is a major cost. A small price
advantage does not compare with the costs of unreliable delivery.
Suppliers that guarantee timely deliveries achieve a significant
differential advantage. Shortage of components which go into the assembly
of the customer’s product can bring the company to a standstill.
A delayed delivery of equipment that makes the company’s product
effectively, means that the company is losing revenue for that period.
Timeliness and continuity of supply is very important in business markets
because disruption in supply or delayed delivery causes loss of revenue to
the business customers.
4. Perceived Risk:
Perceived risk can come in two forms-functional risks such as
uncertainty with respect to product or supplier performance, and
psychological risks such as criticism from colleagues and censure from
boss. A supplier can reduce the functional risk of the buyer by giving
guarantees of good performance.
The supplier should assure the buyer that he will ensure that the
product works for him. A buyback guarantee greatly reduces functional
risks of buyers. A good track record of a supplier will reduce a buyer’s risk.

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The latter of fear of upsetting the boss, losing his status or job can
play a determining role in purchase decisions. Supplier companies should
try to inform important executives or members of DMU about their product
when discussions are on with an individual buyer, so that other executives
and especially the top management do not get the impression that they are
being kept out of the loop and get suspicious about the purchase process.
Suppliers can reduce psychological risks of buyers by convincing the
bosses of individual decision makers, that their subordinates are making a
sound decision.
If a decision maker loses face or suffers the wrath of his boss because
he bought a particular product, the decision maker will always be wary of
making another purchase from that supplier.
The supplier should make the decision maker look good in his
company and in the eyes of his boss. A business marketer’s job does not end
with convincing a decision maker.
It extends to convincing everyone in the buyer company who can
make a critical comment on the purchase, because all such comments will
determine whether the supplier is going to get business from the buyer
company in the future or not. It is a small world out there in the buyer
company.
News of a wrong or even a controversial purchase will immediately put
the decision makers on the line. It is imperative that business marketers
support the people who made the decision in favor of marketer’s product.
Buyers reduce uncertainty by gathering information about competing
suppliers, checking opinions of important people in the buying company,
buying only from reliable, familiar and reputable suppliers and by spreading
risk through multiple sourcing.
5. Personal Likes and Dislikes:
Though business products are mostly evaluated on economic criteria,
personal preferences do creep in. A buyer may personally like a salesperson
more than another, and he may prefer to buy his product, particularly when
competing products are very similar.

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Market Produce
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It is seen that even when a company selects its supplier on the basis
of competitive bidding, purchasers help salespeople they like, to become
competitive. A buyer may perceive the salesperson as being honest, truthful
and likeable, while another buyer may not.
The process of selective attention (only certain information sources
may be sought), selective distortion (information from those sources may be
distorted); selective retention (only some information may be remembered)
also applies in business markets.
Therefore, it is important that a salesperson be on good terms with the
purchasers, and engages with them even outside their work. He can find
some common interest with the purchasers and participate in it together-
playing golf with a buyer is as much for business as it is for entertainment
and fitness.
6. Implications for Marketers:
Interdepartmental conflict may manifest itself in the formation of
competing camps over the purchase of a product. These opposing
departments may have very genuine differences about the desirable
characteristics of the product.
Sometimes two departments use choice criteria that cannot be
satisfied by the same product. The production department may desire high
volumes and low operating costs from a machine. The R&D department may
want the machine to be more flexible or multifunctional so that new
components can also be manufactured on the same machine.
The demands of the two departments conflict with each other in
irreconcilable ways. It may be convenient for a supplier to let the
management of the buyer company resolve the differences between the two
departments.
But this indifferent approach will not allow the supplier to influence
the choice criteria that will ultimately emerge. A supplier should not mislead
the two departments, but it can be on the side of the department whose
choice criteria matches with the strengths of its offering.
A supplier’s appeals and arguments may need to change when
communicating to different Decision-Making Unit members. Discussion with
a production engineer may be about the technical superiority of the product,
but the salesperson has to focus on price when he is talking to the purchase
manager.

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Market Produce
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Therefore, it is important that the sales team comprises of experts who
can converse with members of the DMU in their language, and who can
understand their motivations, and convince them that its product satisfies
each of their requirements i.e., it is a technically superior product, and is
also reasonably priced.
The criteria used by buyers change over time as circumstances
change. Price may be relatively unimportant to a company when it is trying
to solve a highly technical problem and order will be placed with the
supplier who provides necessary technical assistance.
But after the problem has been solved, and other suppliers become
qualified, price may become crucial. Therefore, a salesperson needs to
understand the level of urgency that a buyer is facing, and frame its
proposal in light of that knowledge.
A buyer always remembers the supplier who helped him to get over a
crisis, and may prefer him over other suppliers, if there is not much to
choose between the suppliers.

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SELF- CHECK 4.1-1
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet.

1. Manufacturer is an individual who engages in the buying and


selling of financial assets in any financial market, either for themself
or on behalf of another person or institution.
2. Trading agents- A trade agent is an entrepreneur who works as an
intermediary to connect buyers and sellers.
3. Local/public market- is made up of small independent businesses,
and each shop or stall is owner-operated.
4. Wholesaler is a person or a company who sells products directly to
their customers for a profit.
5. Consumers are defined as individuals or businesses that consume
or use goods and services.

ENUMERATION
Enumerate the following;
1. Types of Manufacturers
2. 6 Segmental Choice Criteria Used by Company When Buying
Products from Supplier.

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ANSWER KEY 1.1-1
TRUE OR FALSE
1. False
2. True
3. True
4. False
5. True

ENUMERATION;
  1. Types of manufacturers
a. Made to Stock (MTS)
b. Made to Order (MTO)
c. Made to Assemble (MTA)
2. 6 Segmental Choice Criteria Used by Company When Buying
Products from Supplier.
1. Quality
2. Price and Life Cycle Costs
3. Continuity of Supply
4. Perceived Risk
5. Personal Likes and Dislikes
6. Implications for Marketers

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INFORMATION SHEET 4.1-2
GATHER INFORMATION ON PRICE FOLLOWING STANDARD
PROCEDURE
Learning Objective:
After reading this information sheet you should be able to gather
information on price following standard procedure.
INTRODUCTION:
Assessing seasonal supply and demand
Market supply and demand are important concepts, because they
influence the prices that farmers and agripreneur can get for their produce.
If farmers understand seasonal supply and demand, they can:
 Plan what crops to grow, when to plant and harvest, and where to sell;
Plan to harvest their crops at the beginning or at the end of the
season, when prices are higher;
 Grow a crop variety that is more expensive than the standard one, for
example, red potatoes may be sold for more money than white
potatoes; Decide to grow a more nutritious crop, such as vegetables or
fruits instead of maize;
 Decide what the best time would be to sell their crop, for example, by
storing it until the price goes up; and
 Try to increase the quality of the crop by protecting it from pests and
diseases, so it can be sold for a higher price.

Information on and knowledge of market supply and demand help the


agripreneur to understand the importance of specific products and to make
use of opportunities that occur because of changes in demand and supply.
Market supply
Market supply is the quantity or amount of a product (maize,
potatoes, tomatoes, eggs, etc.) that producers can offer to the 114 Module
11: Agricultural Entrepreneurship market for sale. The supply of a product
depends partly on its price and on local conditions. If farmers see that the
price of a product is high, they will try to sell it immediately and they are
also likely to grow more of the product next season. If the farmers see that
the price is falling, they may keep their products in storage, until the price
recovers. Low prices will also discourage them from planting the same crop
the following season.

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Market Produce
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The supply of a product also depends on local conditions. For
example, if there is a lot of rain in an area, farmers can harvest a great deal
of grain, but if there is drought, the harvest is poor. Other local conditions
that may also affect the supply of a product are:
 Pests and diseases; y Availability of, and access to fertiliser,
water and quality seeds;
 Poor roads and transport vehicles;
 Poor farmer health and nutrition; and
 Pregnancy and child rearing (in the case of women farmers).

Market demand
Market demand refers to the amount of the product that customers
are willing and able to buy, which partly depends on the price. If the price is
low, more people will want to buy and each person may want to buy more of
the product. If the price goes up, fewer people want to buy and each person
will probably buy a smaller amount.
The demand for a product is also affected by other factors and
customers generally want to buy more:
 Staple foods (such as maize or wheat) or major vegetables (such as
onions and tomatoes) and less unfamiliar types of food or items
they use only in small quantities;
 High-quality products rather than items that are low-quality or
damaged; 115 Part of the New Extensionist Learning Kit
 Fresh products, such as vegetables harvested yesterday, rather
than produce that was harvested weeks ago; and
 Scarce items, such as the first fruits of the season.

Longer-term changes in demand are caused by changes in consumer


tastes and attitudes. For example, families are buying more maize and
wheat than sorghum and millet, because they perceive these more recent
crops as more modern and aspirational. In the same way there has been a
fall in the purchase of traditional drinks in favor of processed drinks that
people consider to be healthier and more attractive.
Seasonal supply and demand
In countries with highly identifiable seasons, supplies are low at the
start of the harvest season and, therefore, prices are high. Prices are at their
lowest level just after the crop is harvested in the main production areas. At
the end of the season, prices normally increase again, as supply declines.

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Prices are generally highest during the off-season, when only a small
percentage of farmers are able to grow or sell the crop.
Short-term changes in supply and demand may be caused by the
weather. For example, during the colder times of the year, a hot period
increases the demand for crops like tomatoes, cucumbers, etc., whereas
vegetables for cooking are in higher demand during colder weather. In this
way, seasonal changes lead to short-term fluctuations in the prices of these
products.
Sources of price information
Three experiments show that the source of price change information—
whether human or nonhuman—moderates the effect of price change on
perceptions of price fairness. Both inferences of the marketer's motive and
stimulus-induced affect mediate the effects of the source and price change.
Opportunity and motivation to process also affect the relative influence of
inferred motive and affect. This research demonstrates antecedent roles of
both price source and affect.
a. Farm gate;
The farm gate value of a cultivated product in agriculture and
aquaculture is the market value of a product minus the selling costs
(transport costs, marketing costs). The market value is not the same as the
price farmers get for their product, as (if an auction is used), the value they
get per weight may be well below the market price. In some cases, the value
they get per weight may even be below the breakeven price.
When selling by auction, the price the farmers get for their product is
typically lower than the price they get if they sell directly to the consumer
(as they are able to set this price themselves).
The farm gate value is also far lower than the retail price consumers pay
in a store as it does not include the additional costs the store makes
(shipping, handling, storage, marketing) nor the profit margin the involved
companies ask.
b. Price at the trading centers
Pricing your product properly, giving complete and accurate
quotations, choosing the terms of the sale, and selecting the payment
method are four critical elements in making a profit on your export sales.
Pricing can be the most challenging due to different market forces and
pricing structures around the world. What determines a successful export
pricing strategy? The key elements include assessing your company’s foreign
market objectives, product-related costs, market demand, and competition.

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Other factors to consider are transportation, taxes and duties, sales
commissions, insurance, and financing.
As in the domestic market, the price at which a product or service is
sold directly determines your company’s revenues. Your firm’s market
research should include an evaluation of all variables that may affect the
price range for your product or service. If your company’s price is too high,
the product or service will not sell. If the price is too low, export activities
may not be sufficiently profitable or may actually create a net loss.   
 Traditional components for determining proper pricing are costs,
market demand, and competition. Each component must be compared
with your company’s objective in entering the foreign market. An
analysis of each component from an export perspective may result in
export prices that are different from domestic prices. 
 There are additional costs that are typically borne by the importer.
These include tariffs, customs fees, currency fluctuation, transaction
costs (including shipping), and value-added taxes (VATs). These costs
can add substantially to the final price paid by the importer,
sometimes resulting in a total that is more than double the price
charged in the United States. U.S. products often compete better on
quality, reputation, and service than they do on price—but buyers
consider the whole package.

c. Local Market pricing


Local marketing refers to the marketing strategies a business uses
online to get their products or services in front of people in their local area
and engage new and potential customers within a specified radius with the
intention of turning them into diehard fans. Typically, local marketing is
used by businesses that have a physical storefront in their community, such
as restaurants, bars, spas, medical offices, and chiropractors.
Since there are many different kinds of marketing that can grow your
business, why does local marketing matter? Simply put, it is next to
impossible to win over the customers that will sustain your business
without utilizing local marketing resources and methods.
Local Marketing Pricing Strategy
A local marketing pricing strategy includes all the ways a business
uses to set the price for a product or service. Getting this number right is
important because it can make or break your budget and financial goals,

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meet your customers’ expectations, and keep yourself competitive with other
businesses.
Examples of the best pricing strategies are:
 Price skimming
 Penetration pricing
 Competitive pricing
 Premium pricing
 Loss Leader pricing
 Psychological pricing
 Value pricing

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SELF- CHECK 4.1-2
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Market supply and demand are important concepts, because
they influence the prices that farmers and agripreneur can get
for their produce.
2. Decide what the best time would be to sell their crop, for
example, by storing it until the price goes down.
3. The supply of a product depends partly on its price and on local
conditions.
4. Market demand refers to the amount of the product that
customers are willing and able to buy, which partly depends on
the price.
5. Prices are at their lowest level just after the crop is harvested in
the main production areas.

ENUMERATION
Enumerate the following;
1. 3 sources of price information
2. At least 3 Local Marketing Pricing Strategy

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ANSWER KEY 1.1-1
TRUE OR FALSE
1.True
2.False
3.True
4.True
5.True
ENUMERATION;
1. Sources of price information
a. Farmgate
b. Price at the trading center
c. Local market pricing
2. Answers are any of the following;
•Price skimming
•Penetration pricing
•Competitive pricing
•Premium pricing
•Loss Leader pricing
•Psychological pricing
•Value pricing

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INFORMATION SHEET 4.1-3
RECORD PRICE INFORMATION FOLLOWING INDUSTRY STANDARD
PROCEDURE
Learning Objective:
After reading this information sheet you should be able to record price
information following industry standard procedure

INTRODUCTION:

Retailers are aware of consumers’ tendency to shop for the best price
online but so many are unsure how to respond to this behavioral tendency.
The worst thing you can do is to make pricing decisions in a vacuum
without knowing what your competitors are charging for similar products.
Whether you are giving your products a premium positioning in the market
or going for the cheap, discounted sale, it pays to have a price monitoring
strategy in place.
A good competitor price monitoring strategy acts as your own personal
GPS that shows you what others are doing and how you can respond to take
advantage of opportunities.
Below are 4 objectives to use as a starting point for what your price
monitoring strategy should accomplish for your retail business.

 Accuracy - Your price monitoring should deliver accurate and valid


data
 Timely insight - Price monitoring should give you actionable insights
when you need them
 Action - Where some ecommerce managers fall short is in monitoring
price data without applying it in any way
 Competitive Advantage - Set objectives about how you want price
monitoring to translate into greater market share, or higher revenue,
or some other meaningful business outcome

Next up, we cover the practical steps you will need to take to devise a
competitor price monitoring strategy that delivers on all your objectives.
Step 1: Set Your Market Positioning
Market positioning is the first essential component in your price
monitoring strategy. It will allow you to make sense of the price data that
you are going to collect. There is nothing as unsettling as finding that every
competitor you have is selling their products at a lower price than you. In

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the absence of a defined market position for your brand, you might well
panic and think you should discount everything in your store.
Step 2: Study the Competition
The next step in creating your competitor price monitoring strategy is
to identify and study the competition. In this process, we suggest coming up
with 4 different lists of competitors based on different strategic relationships
to your brand.
 Similarly-Positioned Competitors - studying competitors with
similar positioning as you do
 Very Different Positioning - studying those with very different
positioning, these could be high end or low end of the market
 Most Important Competitors - defining your most important
competitors, should be a smaller list of 5-10 that you think matter
most
 “Foils” of your brand - defining your “foils”, competitors that are
where you want to be and you can emulate to help you get there

Having granular lists that target different “types” of competition can


yield much more actionable data than just lumping all competitors into one
list. As you study these different groups of competitors, the similarities
within each group will make it easier to identify patterns for each subset.
Step 3: Identify Competitor Sites and Products for Monitoring
For collecting the price data, we recommend going with a price
monitoring tool that will help automate the process. According to
TechCrunch, large retail companies such as Walmart and Amazon, with
their commitment to low prices, have very sophisticated algorithms for price
matching. You can easily get the main functionality you would need for your
own brand, however, using a price intelligence tool such as Competitor
Monitor’s own price monitoring software.
With your tool in place, you now need to identify the competitor sites,
as well as select which products you want to price monitor. Price monitoring
software automatically collects price data along with other data you might
be interested in reviewing, such as:
 Product descriptions
 Product images
 Reviews
 Shipping fees

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Step 4: Test the Pricing Data for Your Relevant Products
You should also plan to test the pricing data that you get from
competitor price monitoring.
You can begin with a subset of data, for example, targeting your most
important products. After your initial price monitoring setup, collect data for
a period of time, say 2-3 days, or up to a week.
Then go over the data to see the prices logged from competitors’ stores
for products you sell.
This initial data will help confirm that your strategy is delivering the
right data that you can make use of. If any product is missing, add it to the
set, and if any prices seem stale, you can check the settings in your pricing
tool.
Once you are happy with the quality of data, apply the tool to your
entire store or product catalog.
Step 5: Identify Problems and Adjust the Strategy
After testing your price monitoring strategy or running it for a while,
you may encounter problems that make it necessary to adjust your strategy.
For example, some products might go out of stock at competitors, or a
competitor might change their website. In such cases, you need to evaluate
the reasons why data is missing or inaccurate, and decide, for example,
whether to drop the competitor from your price monitoring set.
Evaluating and tweaking your competitor price monitoring will help
keep your data relevant. You will then be able to look at the fresh data at
intervals of, say, two weeks, to determine how your store should price goods
to gain maximum advantage.
Step 6: Make Price Monitoring Part of your Daily Routine
If you are selling products in a competitive vertical, checking data at
long intervals might be suboptimal. Your goal in such a market might be to
review prices across the industry in near-real time. This requires monitoring
on shorter time frames.
Price intelligence software like Competitor Monitor will monitor daily
price changes for you. The data is available in one easy to use dashboard so
that you can see, at a glance, price changes from competitors.
You can, therefore, make price monitoring part of your daily business
management routine. The daily price updates will help you spot
opportunities or the need to adjust prices based on what competitors are
doing.

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The Benefits of a Competitor Price Monitoring Strategy
Creating a competitor price monitoring strategy will put powerful data
in your hands that can help you make your products appeal to more buyers.
Getting there requires clarifying your brand’s positioning, identifying
competitors’ worth monitoring, and making use of the right price monitoring
tools. With an effective price monitoring strategy implemented, you will get
weekly, daily, or even real time updates of important changes in the
competitive landscape.
Procedures in recording price information
Cost accounting is defined as "a systematic set of procedures for
recording and reporting measurements of the cost of manufacturing goods
and performing services in the aggregate and in detail. It includes methods
for recognizing, classifying, allocating, aggregating and reporting such costs
and comparing them with standard costs." (IMA)[1] Often considered a
subset of managerial accounting, its end goal is to advise the management
on how to optimize business practices and processes based on cost
efficiency and capability. Cost accounting provides the detailed cost
information that management needs to control current operations and plan
for the future.
Cost accounting information is also commonly used in financial
accounting, but its primary function is for use by managers to facilitate their
decision-making.
Elements of Cost Accounting
Basic cost elements are:
 Material
 Labour
 Expenses and other overheads

Material (Inventory)
The materials directly contributed to a product and those easily
identifiable in the finished product are called direct materials. For example,
paper in books, wood in furniture, plastic in a water tank, and leather in
shoes are direct materials. Other, usually lower cost items or supporting
material used in the production of in a finished product are called indirect
materials. For example, the length of thread used in a garment.

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Furthermore, these can be categorized into three different types of
inventories that must be accounted for in different ways; raw materials,
work-in-progress, and finished goods.[5]

Labour
Any wages paid to workers or a group of workers which may directly
co-relate to any specific activity of production, maintenance, transportation
of material, or product, and directly associate in the conversion of raw
material into finished goods are called direct labour . Wages paid to trainee
or apprentices does not come under the category of direct labour as they
have no significant value.
Overheads
Overheads include:
 Production or works overhead including factory staff
 Administration overhead including office staff
 Sales overhead including production and maintenance of catalogues,
advertising (development and purchases), exhibitions, sales staff, cost
of money
 Distribution overhead
 Maintenance and repair including office equipment and factory
machinery
 Supplies
 Utilities including gas, electric, water, sewer, and municipal
assessments
 Other variable expenses
 Salaries/payroll including wages, pensions, and paycheck deductions
(e.g., NI and PAYEE in the UK, FICA in the US)
 Occupancy (rent, mortgage, property taxes)
 Depreciation (durable goods including machinery and office
equipment)
 Other fixed expenses

These categories are flexible, sometimes overlapping as different cost


accounting principles are applied.

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SELF- CHECK 4.1-3
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. A good competitor price monitoring strategy acts as your own personal
GPS that shows you what others are doing and how you can respond
to take advantage of opportunities.
2. Market positioning is the first essential component in your price
monitoring strategy. It will allow you to make sense of the price data
that you are going to collect.
3. For collecting the price data, we recommend going with a price
monitoring tool that will help automate the process.
4. With an effective price monitoring strategy implemented, you will get
weekly, daily, or even real time updates of important changes in the
competitive landscape.
5. Cost accounting never provides the detailed cost information that
management needs to control current operations and plan for the
future.

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ANSWER KEY 1.1-1
TRUE OR FALSE
1.True
2. True
3.True
4.True
5. False

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LEARNING OUTCOME #2 Apply marketing strategies

CONTENTS:
 Types of collected information
 Market strategizing
 Computation on sales, cost and profit
 Value addition
 Kinds of business service providers
 Advantages and benefits in group marketing
 Types of collaboration through coops, associations, informal clusters

ASSESSMENT CRITERIA:
1.1. Use collected information in strategizing to optimize sales and profit
according to standard marketing procedure
1.2. Apply value adding activities to increase sales and profit based on
market plan
1.3. Identify services of business development services (BDS) providers
based on industry practices
1.4. Do consolidation of produce and group marketing following industry
practices

CONDITIONS:
The students/trainees must be provided with the following:
 Writing materials
 References
 Handouts
METHODOLOGIES:
 Modular self-paced
 Lecture/discussion
 Demonstration/role play
ASSESSMENT METHODS:
 Direct observation and questioning
 Demonstration
 Oral interview and written test

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Learning Outcome#2: Apply marketing strategies

Learning Activities Special Instructions

Do not write anything on the


1. Read Information Sheet No. 4.2-1
module; provide extra paper in
on Use collected information in
doing the Self-check.
strategizing to optimize sales and
profit according to standard
marketing procedure
2. Answer the Self-check 4.2-1 Refer your answer to Answer Key
4.2-1.
3. Read Information Sheet No. 4.2-2
on Apply value adding activities to
increase sales and profit based on
market plan
4. Answer the Self-check 4.2-2 Refer your answer to Answer Key
4.2-2.
5. Read Information Sheet No. 4.2-3
Identify services of business
development services (BDS) providers
based on industry practices
6. Answer the Self-check 4.2-3 Refer your answer to Answer Key
4.2-3.
7. Read Information Sheet No. 4.2-4
Do consolidation of produce and
group marketing following industry
practices
8. Answer the Self-check 4.2-4 Refer your answer to Answer Key
4.2-4.

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INFORMATION SHEET 4.2-1
USE COLLECTED INFORMATION IN STRATEGIZING TO OPTIMIZE
SALES AND PROFIT ACCORDING TO STANDARD MARKETING
PROCEDURE

Learning Objective:
After reading this information sheet you should be able to use
collected information in strategizing to optimize sales and profit according to
standard marketing procedure

INTRODUCTION:
Market Research
Market research is defined as the process of evaluating the feasibility
of a new product or service, through research conducted directly with
potential consumers. This method allows organizations or businesses to
discover their target market, collect and document opinions and make
informed decisions.
Market research can be conducted directly by organizations or
companies or can be outsourced to agencies which have expertise in this
process.
The process of market research can be done through deploying
surveys, interacting with a group of people also known as sample,
conducting interviews and other similar processes.
Primary purpose of conducting market research is to understand or
examine the market associated with a particular product or service, to
decide how the audience will react to a product or service. The information
obtained from conducting market research can be used to tailor marketing/
advertising activities or to determine what are the feature priorities/service
requirement (if any) of consumers.
Three key objectives of market research
A market research project may usually have 3 different types of
objectives.
 Administrative: Help a company or business development, through
proper planning, organization, and both human and material
resources control, and thus satisfy all specific needs within the
market, at the right time.

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 Social: Satisfy customer’s specific needs through a required product or
service. The product or service should comply with the requirements
and preferences of a customer when it’s consumed.
 Economical: Determine the economical degree of success or failure a
company can have while being new to the market, or otherwise
introducing new products or services, and thus providing certainty to
all actions to be implemented.

Types of Market Research: Market Research Methods and Examples


Whether an organization or business wishes to know purchase
behavior of consumers or the likelihood of consumers paying a certain cost
for a product, market research helps in drawing meaningful conclusions.
Depending on the methods and tools required, following are the types:
1. Primary Market Research (A combination of both Qualitative and
Quantitative Research): Primary market research is a process, where
organizations or businesses get in touch with the end consumers or employ
a third party to carry out relevant studies to collect data. The data collected
can be qualitative data (non-numerical data) or quantitative data (numerical
or statistical data).
While conducting primary market research, one can gather two types
of information: Exploratory and Specific. Exploratory research is open
ended, where a problem is explored by asking open ended questions in a
detailed interview format usually with a small group of people also known as
sample. Here the sample size is restricted to 6-10 members. Specific
research, on the other hand, is more pinpointed and is used to solve the
problems that are identified by exploratory research.
As mentioned earlier primary market research is a combination of
qualitative market research and quantitative market research. Qualitative
market research study involves semi-structured or unstructured data
collected through some of the commonly used qualitative research methods
like:

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Focus groups: Focus group is one of the commonly used qualitative
research methods. Focus group is a small group of people (6-10) who
typically respond to online surveys sent to them. The best part about focus
group is the information can be collected remotely, can be done without
personally interacting with the group members. However, this is a more
expensive method as it is used to collect complex information.
One-to-one interview: As the name suggests this method involves
personal interaction in the form of an interview, where the researcher asks a
series of questions to collect information or data from the respondents. The
questions are mostly open-ended questions and asked in a way to facilitate
responses. This method is heavily dependent on the ability and experience of
the interviewer to ask questions that evoke responses.
Ethnographic research: This type of in-depth research is conducted
in the natural settings of the respondents. This method requires the
interviewer to adapt himself/herself to the natural environment of the
respondents which could be a city or a remote village. Geographical
constraints can be a hindering factor in conducting this kind of research.
Ethnographic research can last from a few days to a few years.
2. Secondary Market Research: Secondary research uses
information that is organized by outside source like government agencies,
media, chambers of commerce etc. This information is published in
newspaper, magazines, books, company website, free government and
nongovernment agencies and so on. Secondary source makes use of the
following:
 Public sources: Public sources like library are an awesome way of
gathering free information. Government libraries usually offer
services free of cost and a researcher can document available
information.
 Commercial sources: Commercial source although reliable are
expensive. Local newspapers, magazines, journal, television media
are great commercial sources to collect information.
 Educational Institutions: Although not a very popular source of
collecting information, most universities and educational
institutions are a rich source of information as many research
projects are carried out there than any business sector.

Steps for conducting Market Research


Knowing what to do in various situations that arise during the
investigation will save the researcher’s time and reduce problems. Today’s

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successful enterprises use powerful market research survey software that
helps them conduct comprehensive research under a unified platform and
hence provide actionable insights much faster with fewer problems.
Following are the steps to conduct an effective market research.
Step #1: Define the Problem
Having a well-defined subject of research will help researchers when
they ask questions. These questions should be directed to solve problems
and they have to be adapted to the project. Make sure the questions are
written clearly and that the respondents understand them. Researchers can
conduct a test with a small group to know if the questions are going to know
whether the asked questions are understandable and will they be enough to
gain insightful results.
Research objectives should be written in a precise way and should
include a brief description of the information that is needed and the way in
which it will obtain it. They should have an answer to this question “why are
we doing the research?”
Step #2: Define the Sample
To carry out market research, researchers need a representative
sample that can be collected using one of the many sampling techniques. A
representative sample is a small number of people that reflect, as accurately
as possible, a larger group.
 An organization cannot waste their resources in collecting
information from the wrong population. It is important that the
population represents characteristics that matter to the
researchers and that they need to investigate, are in the chosen
sample.
 Take into account that marketers will always be prone to fall into a
bias in the sample because there will always be people who do not
answer the survey because they are busy, or answer it
incompletely, so researchers may not obtain the required data.
 Regarding the size of the sample, the larger it is, the more likely it
is to be representative of the population. A larger representative
sample gives the researcher greater certainty that the people
included are the ones they need, and they can possibly reduce
bias. Therefore, if they want to avoid inaccuracy in our surveys,
they should have representative and balanced samples.

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 Practically all the surveys that are considered in a serious way, are
based on a scientific sampling, based on statistical and probability
theories.

Step #3: Carry out data collection


First, a data collection instrument should be developed. The fact that
they do not answer a survey, or answer it incompletely will cause errors in
research. The correct collection of data will prevent this.
Step #4: Analyze the results
Each of the points of the market research process is linked to one
another. If all the above is executed well, but there is no accurate analysis of
the results, then the decisions made consequently will not be appropriate.
In-depth analysis conducted without leaving loose ends will be effective in
gaining solutions. Data analysis will be captured in a report, which should
also be written clearly so that effective decisions can be made on that basis.
Analyze and interpret the results is to look for a wider meaning to the
obtained data. All the previous phases have been developed to arrive at this
moment.
How can researchers measure the obtained results? The only
quantitative data that will be obtained is age, sex, profession, and number of
interviewees because the rest are emotions and experiences that have been
transmitted to us by the interlocutors. For this, there is a tool called
empathy map that forces us to put ourselves in the place of our clientele
with the aim of being able to identify, really, the characteristics that will
allow us to make a better adjustment between our products or services and
their needs or interests.
Step #5: Make the Research Report
When presenting the results, researchers should focus on: what do
they want to achieve using this research report and while answering this
question they should not assume that the structure of the survey is the best
way to do the analysis. One of the big mistakes that many researchers make
is that they present the reports in the same order of their questions and do
not see the potential of storytelling.
To make good reports, the best analysts give the following advice:
follow the inverted pyramid style to present the results, answering at the
beginning the essential questions of the business that caused the
investigation. Start with the conclusions and give them fundamentals,
instead of accumulating evidence. After these researchers can provide
details to the readers who have the time and interest.

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Step #6: Make Decisions
An organization or a researcher should never ask “why do market
research”, they should just do it!
Market research helps researchers to know a wide range of
information, for example, consumer purchase intentions, or gives feedback
about the growth of the target market. They can also discover valuable
information that will help in estimating the prices of their product or service
and find a point of balance that will benefit them and the consumers.
COLLECTED INFORMATION THAT MAY INCLUDE;
a. Buyers- A buyer is a person who is buying something or who intends
to buy it a certain commodity to a supplier or producer. A buyer is a
person who works for a large store deciding what goods will be bought
from manufacturers to be sold in the store. I was a buyer for the
women's clothing department.
Buyer are concluded in order to determine who are your
possible buyer of your produce.
b. Value adding activities- A value-added activity is any action taken
that increases the benefit of a good or service to a customer. A
business can vastly increase its profitability by recognizing which
activities increase value and which do not, and stripping away the non
value-added activities. In most organizations, there is a much lower
proportion of value-added activities than of non-value-added activities.
Value adding activities may include;
 Cleaning
 Processing
 Packaging
 Sorting
 Cleaning
 Peeling and;
 Standard on size, length and weight.
c. Price- is the amount of money that has to be paid to acquire a given
product. Insofar as the amount people are prepared to pay for a
product represents its value, price is also a measure of value. Price is
the very important thing in selling a commodity.
d. Volume- Volume is a scalar quantity expressing the amount of three-
dimensional space enclosed by a closed surface. For example, the
space that a substance (solid, liquid, gas, or plasma) or 3D shape

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occupies or contains.[1] Volume is often quantified numerically using
the SI derived unit, the cubic meter. The volume of a container is
generally understood to be the capacity of the container; i.e., the
amount of fluid (gas or liquid) that the container could hold, rather
than the amount of space the container itself displaces.
e. Quality- Quality is the totality of features and characteristics of a
product or service that bear on its ability to satisfy given needs.
(American Society for Quality) Quality, an inherent or distinguishing
characteristic, a degree or grade of excellence. Quality is the most
important thing in producing a good. Price of the commodity is
dependent to its quality.
f. Terms of payment- the terms of payment of a sale state how and
when an invoice is to be paid. The terms of payment were 50 percent
down and 50 percent on completion. The leading auctioneers offer
inducements such as guaranteed prices to persuade sellers to part
with their treasures, and generous terms of payment for buyers.
Terms of payment is dependent to what a supplier and buyers deal.
g. Mode of delivery- Delivery means voluntary transfer of possession
from one person to another person. Under Sale of Goods Act, person,
between whom such voluntary transfer is made, are seller and buyer.
Usually, seller delivers goods to buyer. However, delivery can be made
to some other person or authorized representative to buyer especially
when buyer gives directions for making of such delivery. Delivery can
be made immediately or can be made at some future date or can be
made according to some condition, which is to be fulfilled.
Mode of delivery maybe, cash on delivery (COD), or thru logistic
or currier and many more
h. Time- Time is the continued sequence of existence and events that
occurs in an apparently irreversible succession from the past, through
the present, into the future. It is a component quantity of various
measurements used to sequence events, to compare the duration of
events or the intervals between them, and to quantify rates of change
of quantities in material reality or in the conscious experience.
Delivery time of a certain commodity is dependent on how the
costumer and producer negotiation.

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SELF- CHECK 4.2-1
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Market research is defined as the process of evaluating the feasibility
of a new product or service, through research conducted directly with
potential consumers.
2. Administrative: Help a company or business development, through
proper planning, organization, and both human and material
resources control, and thus satisfy all specific needs within the
market, at the right time.
3. Economical: Satisfy customer’s specific needs through a required
product or service. The product or service should comply with the
requirements and preferences of a customer when it’s consumed.
4. Social: Determine the economical degree of success or failure a
company can have while being new to the market, or otherwise
introducing new products or services, and thus providing certainty to
all actions to be implemented.
5. Primary market research is a process, where organizations or
businesses get in touch with the end consumers or employ a third
party to carry out relevant studies to collect data.

ENUMERATION;
 Enumerate at least 3 Steps for conducting Market Research
 Enumerate at least 3 important collected information

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ANSWER KEY 4.2-1
TRUE OR FALSE.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE

ENUMERATION;
Answers are any of the following;
 Steps for conducting Market Research

Step #1: Define the Problem


Step #2: Define the Sample
Step #3: Carry out data collection
Step #4: Analyze the results
Step #5: Make the Research Report
Step #6: Make Decisions
 Collected information that may include;
a. Buyers
b. Value adding activities
c. Price
d. Volume
e. Quality
f. Terms of payment
g. Mode of delivery and;
h. time

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INFORMATION SHEET 4.2-2
APPLY VALUE ADDING ACTIVITIES TO INCREASE SALES AND PROFIT
BASED ON MARKET PLAN

Learning Objective:
After reading this information sheet you should be able to apply value
adding activities to increase sales and profit based on market plan.

INTRODUCTION:

What is a Value-Added Activity?


A value-added activity is any action taken that increases the benefit
of a good or service to a customer. A business can vastly increase its
profitability by recognizing which activities increase value and which do
not, and stripping away the non value-added activities. In most
organizations, there is a much lower proportion of value-added activities
than of non-value-added activities.
Value-added activity;
a. Cleaning- is the process of removing unwanted substances, such
as
dirt, infectious agents, and other impurities, from an object or environment.
Cleaning occurs in many different contexts, and uses many different
methods. Several occupations are devoted to cleaning.

b. Sorting- is any process of arranging items systematically, and has


two common, yet distinct meanings:
1. ordering: arranging items in a sequence ordered by some
criterion;
2. categorizing: grouping items with similar properties.
Ordering items is the combination of categorizing them based on equivalent
order, and ordering the categories themselves.
c. Packaging- is the science, art and technology of enclosing or
protecting products for distribution, storage, sale, and use. Packaging also
refers to the process of designing, evaluating, and producing packages.
Packaging can be described as a coordinated system of preparing goods for
transport, warehousing, logistics, sale, and end use. Packaging contains,
protects, preserves, transports, informs, and sells. [1] In many countries it is

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fully integrated into government, business, institutional, industrial, and
personal use.

d. Processing- is a series or set of activities that interact to produce a


result; it may occur once-only or be recurrent or periodic.
Agricultural processing means an industry for the processing of
agricultural products that are primarily produced on the agricultural
enterprise concerned, and includes the storage of the processed product and
where the agricultural processing activity is subservient to the dominant
agricultural use on the property and there is a rational relationship between
the processing and the produce of the agricultural enterprise and units in
the immediate vicinity of the property; and may include a winery, wine cellar
with associated tasting facilities, distillery, cheese making industry, dairy,
fruit ripening plant and food processing factory, but excludes the extraction
of resources such as bottling of water and sand mining;
e. Transporting- is the movement of humans, animals,
and goods from one location to another. In other words, the action of
transport is defined as a particular movement of an organism or thing from
a point A (a place in space) to a point B.
Modes of transport include air, land (rail and road), water, cable, pipeline,
and space. The field can be divided into infrastructure, vehicles,
and operations. Transport enables trade between people, which is essential
for the development of civilizations.
Transport infrastructure consists of the fixed installations,
including roads, railways, airways, waterways, canals, and pipelines and
terminals such as airports, railway stations, bus stations, warehouses,
trucking terminals, refueling depots (including fueling docks and fuel
stations), and seaports. Terminals may be used both for interchange of
passengers and cargo and for maintenance.
Means of transport are any of the different kinds of transport facilities
used to carry people or cargo. They may include vehicles, riding animals,
and pack animals. Vehicles may
include wagons, automobiles, bicycles, buses, trains, trucks, helicopters, w
atercraft, spacecraft, and aircraft.
f. Product consolidation

In business, consolidation or amalgamation is the merger and


acquisition of many smaller companies into a few much larger ones. In the
context of financial accounting, consolidation refers to the aggregation
of financial statements of a group company as consolidated financial

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statements. The taxation term of consolidation refers to the treatment of
a group of companies and other entities as one entity for tax purposes. 
The objective of product consolidation is to reduce the overall number
of parts and increase the number of preferred (higher volume/lower cost)
parts.
In doing so, one can increase order quantities. This will reduce the
part and material overhead costs

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SELF-CHECK 4.2-2

Multiple choices:

Direction: Choose the letter of the best answer. Write the letter of your
choice on your answer sheet.

1. It is any action taken that increases the benefit of a good or


service to a customer .
a. Cleaning
b. Transporting
c. Value added activity
d. Product consolidation
2. It is the process of removing unwanted substances, such as dirt,
infectious agents, and other impurities, from an object or
environment.
a. Cleaning
b. Sorting
c. Product consolidation
d. Processing
3. It is a series or set of activities that interact to produce a result; it
may occur once-only or be recurrent or periodic.
a. Cleaning
b. Sorting
c. Product consolidation
d. Processing
4. It is the merger and acquisition of many smaller companies into a
few much larger ones.
a. Cleaning
b. Sorting
c. Product consolidation
d. Processing
5. It is the movement of humans, animals, and goods from one
location to another. In other words, the action of transport is
defined as a particular movement of an organism or thing from a
point A (a place in space) to a point B.
a. Cleaning

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b. Transporting
c. Product consolidation
d. Processing

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ANSWER KEY 4.2-2

Multiple choices:
1. C
2. A
3. D
4. C
5. B

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INFORMATION SHEET 4.2-3
IDENTIFY SERVICES OF BUSINESS DEVELOPMENT SERVICES (BDS)
PROVIDERS BASED ON INDUSTRY PRACTICES
Learning Objective:
After reading this information sheet you should be able to identify
services of Business Development Services (BDS) providers based on
industry practices.

INTRODUCTION:
Service provider
A service provider (SP) provides organizations with consulting, legal,
real estate, communications, storage, processing. Although a service
provider can be an organizational sub-unit, it is usually a third party or
outsourced supplier, including telecommunications service providers (TSPs),
application service providers (ASPs), storage service providers (SSPs), and
internet service providers (ISPs). [citation needed] A more traditional term is
service bureau (esp. 1960s to 1980s).
IT professionals sometimes differentiate between service providers by
categorizing them as type I, II, or III.[1] The three service types are
recognized by the IT industry although specifically defined by ITIL and the
U.S. Telecommunications Act of 1996.
 Type I: internal service provider
 Type II: shared service provider
 Type III: external service provider
Type III SPs provide IT services to external customers and subsequently
can be referred to as external service providers (ESPs)[2] which range from a
full IT organization/service outsource via managed services or MSPs
(managed service providers) to limited product feature delivery via ASPs
(application service providers).

Types of Service providers;


 Trucking services- Trucking services are a form of ground freight
that move cargo from point A to point B over land. Trucks use shipping
routes to move goods throughout the United States to deliver shipments for
various industries. Shipping by truck allows you to move large or small
shipments, as well as shipments that require special conditions. Shipping

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by truck can also be very economical, especially if departing from a major
port such as Los Angeles or New York City.
 Warehousing services- Warehouse Services means the storage of
goods, wares, or commodities for hire or compensation, and, in connection
with this operation, may include the loading, packing, sorting, stacking,
wrapping, distribution, and delivery of those goods. Warehouse Services
means any transloading, warehousing, cross-docking, consolidation, and
other similar services, including related ancillary services such as
loading/unloading, packing, crating, and handling, that occur in a facility or
on a premises owned, leased, or operated by GEODIS.
 Training services- Training is teaching, or developing in oneself or
others, any skills and knowledge or fitness that relate to specific useful
competencies. Training has specific goals of improving one's capability,
capacity, productivity and performance. It forms the core of apprenticeships
and provides the backbone of content at institutes of technology (also known
as technical colleges or polytechnics). In addition to the basic training
required for a trade, occupation or profession, training may continue beyond
initial competence to maintain, upgrade and update skills throughout
working life. People within some professions and occupations may refer to
this sort of training as professional development. Training also refers to the
development of physical fitness related to a specific competence, such as
sport, martial arts, military applications and some other occupations.
o Types of training services
ii. Physical Training
iii. Occupation Skill training
iv. On Job training
v. Religion and spiritual training
 Cold storage provider- Cold storage is the storage of any
temperature-controlled substance that prevents that substance from
decaying or not adhering to laws and regulations that apply to that item.

Cold Storage Can Appear in A Variety Of Places:


1. A manufacturer may have a private cold storage facility to
warehouse products before they make their way to end users.
An example:
 A Minneapolis-based meat packer has a private on-site cold storage
facility and operates a private fleet.

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2. End users may have cold storage facilities to store temperature-
controlled products after they’ve received them but before they have a
need to use them.
An example:
 A large Chicago hotel chooses to purchase food in bulk and store all
temperature sensitive items in an on-site private cold storage unit.

3. Most commonly, cold storage is outsourced to a third-party logistics


provider (3PL), where products stay until they are ready to be shipped
to an end user.
An example:
 A large Wisconsin cheese producer opts to use a 3PL’s cold storage
facility to store all of its temperature sensitive dairy products.

 Packaging provider- Packaging is the science, art and technology of


enclosing or protecting products for distribution, storage, sale, and use.
Packaging also refers to the process of designing, evaluating, and producing
packages. Packaging can be described as a coordinated system of preparing
goods for transport, warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves, transports, informs, and sells.[1] In many
countries it is fully integrated into government, business, institutional,
industrial, and personal use.
Package labeling (American English) or labelling ([[British
EnglFireish]]) is any written, electronic, or graphic communication on
the package or on a separate but associated label.

Others may include;


 Application service provider (ASP)
 Cloud service provider (CSP) - Software, platform, infrastructure
service provider in cloud computing
 Network service provider (NSP)
 Internet service provider (ISP)
 Managed service provider (MSP)
 Managed Security Service Provider (MSSP)
 Storage service provider (SSP)
 Telecommunications service provider (TSP)

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 SAML service provider
 Master managed service provider (MMSP)
 Managed Internet service provider (MISP)
 Online service provider (OSP)
 Payment service provider (PSP)
 Cleaning service provider
 Gardening service provider
 Pest control service provider
 Oilfield service provider
 Application software service provider in a service-oriented
architecture (ASSP)
 Cable television service provider

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SELF- CHECK 4.2-3
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. A service provider (SP) provides organizations with consulting, legal,
real estate, communications, storage, processing.
2. Warehouse Services are a form of ground freight that move cargo
from point A to point B over land.
3. Trucking services means the storage of goods, wares, or
commodities for hire or compensation, and, in connection with this
operation, may include the loading, packing, sorting, stacking,
wrapping, distribution, and delivery of those goods.
4. Packaging is the storage of any temperature-controlled substance
that prevents that substance from decaying or not adhering to laws
and regulations that apply to that item.
5. Cold storage also refers to the process of designing, evaluating, and
producing packages. Packaging can be described as a coordinated
system of preparing goods for transport, warehousing, logistics,
sale, and end use.

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ANSWER KEY 4.2-3
TRUE OR FALSE.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. FALSE

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INFORMATION SHEET 4.2-4
DO CONSOLIDATION OF PRODUCE AND GROUP MARKETING
FOLLOWING INDUSTRY PRACTICES
Learning Objective:
After reading this information sheet you should be able to do
consolidation of produce and group marketing practices.

INTRODUCTION:
What is group marketing?
Group marketing is the use of the psychological mechanisms
underlying group influence to guide customer behaviors that are beneficial
to the firm. It can be implemented along a continuum in which firms can
become group providers or they can leverage existing consumer groups or
somewhere in between.

6 Benefits of Collaboration Between Marketing and Sales Teams


Just like Batman and Robin, Ross and Rachel, peanut butter and
jelly, Sonny and Cher, sales and marketing are the perfect complement to
one another. Alignment between the two is crucial to decreasing time to
close and increasing revenue.
Sales and marketing play an equally important role within the
organization, but too often, individuals or teams as a whole lose sight of this
and operate (poorly) as independently functioning machines. And does
anyone want a plain jelly sandwich? When sales and marketing departments
are not properly aligned, the result is unqualified leads and/or frustrated
prospects.
Here are six of the many benefits of collaboration between your
marketing and sales teams.
1. Better Qualified Leads
There’s nothing worse than wasting time, energy, and resources on an
unqualified lead who was doomed from the start. Sales and marketing teams
that are in near constant communication allow information to flow freely
from department to department. This means sales can return leads that
aren’t quite sales-ready back to marketing for further nurturing. In addition,
sales reps can inform marketing of where poor leads are coming from, so
marketing can use this information to adjust their strategies accordingly.
2. Increased Revenue

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According to HubSpot, organizations with excellent sales and
marketing alignment close 38 percent more deals, achieve 27 percent faster
three-year profit growth, and achieve 208 percent higher revenue than
organizations with disconnected sales and marketing teams.
3. Buyer Personas That Match the Audience
Both sales and marketing departments rely on buyer personas to
appeal to the audiences that will invest in your product or service. But often,
organizations whose marketing and sales team have ineffective
communication find that their buyer personas do not line up with their
target audience. What’s the point of putting in the time to create buyer
personas and marketing collateral targeted to those personas if the audience
isn’t an appropriate target? Collaboration between sales and marketing
helps marketing generate content that will capture the audience sales is
after.
4. Marketing Creates the Right Material
Most likely, there are several questions your sales reps receive again
and again from customers. When sales communicates this to marketing,
they can create content — a one-pager, whitepaper, ebook, or blog post —
to inform their audience. Sales can use these materials to save time, and
prospects can use them to make more informed decisions.
5. Stay Ahead of The Competition
Most marketers constantly patrol their competition’s website, blog
posts, and other marketing material so they know where they stand in
relation to other vendors. If marketing keeps sales informed of the tactics
and positioning of their competitors, sales can properly address why their
product is superior to their competitors when speaking with prospects.
6. Happy Customers
Poor communication between sales and marketing can leave
customers with a bad taste in their mouth. For example, a
miscommunication between departments about an expired promo code can
create confused and frustrated customers. When sales and marketing
communicate properly, brand messaging is always aligned, and the right
products and promotions are always highlighted, providing the smoothest
possible experience to the customer.
The benefits speak for themselves, but how do you achieve marketing
and sales alignment? Here are a few tips:
Ensure proper communication between sales and marketing.

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A weekly meeting allows the two departments to identify common
KPI’s and goals, brainstorm promotional ideas, discuss the quality of leads
coming in, and communicate what each need from the other.

Hold each other accountable.


Identify each department’s individual metrics for success and SLAs,
and discuss them in your weekly meeting. If an area is falling short of your
goals, discuss what can be done to improve, together.
Invest in Knowledge Sharing.
Help teams stay aligned by giving them the right tools. Tools like a
chat app and a knowledge management solution allow members of each
team to easily communicate with one another outside of the weekly meeting,
and allow sales to quickly find the material marketing produces, exactly
when they need it.
Marketing and sales teams are both incredibly valuable to the
company, but when their efforts are in sync, the results can be
astronomical. Follow these tips to achieve the benefits, and your prospects
will flow seamlessly through the sales funnel.
Types of Cooperative Learning Groups
Formal cooperative learning groups range in length from one class
period to several weeks. The teacher can structure any academic assignment
or course requirement for formal cooperative learning. "Formal cooperative
learning groups ensure that students are actively involved in the intellectual
work of organizing material, explaining it, summarizing it, and integrating it
into existing conceptual structures. They are the heart of using cooperative
learning".
Informal cooperative learning groups are ad-hoc groups that may
last from a few minutes to a whole class period. The teacher uses them
during direct teaching (lectures, demonstrations) to focus student attention
on the material to be learned, set a mood conducive to learning, help set
expectations about material, what the lesson will cover, ensure that
students are cognitively processing the material being taught, and provide
closure to an instructional session.
Cooperative base groups are "long-term (lasting for at least a year),
heterogeneous groups with stable membership whose primary purpose is for
members to give each other the support, help, encouragement, and
assistance each needs to progress academically. Base groups provide
students with long-term, committed relationships."

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SELF- CHECK 4.2-4
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Group marketing is the use of the psychological mechanisms
underlying group influence to guide customer behaviors that are
beneficial to the firm.
2. Sales and marketing play an equally important role within the
organization, but too often, individuals or teams as a whole lose sight
of this and operate (poorly) as independently functioning machines.
3. Sales and marketing teams that are in near constant
communication allow information to flow freely from department to
department.
4. Informal cooperative learning groups ensure that students are
actively involved in the intellectual work of organizing material,
explaining it, summarizing it, and integrating it into existing
conceptual structures.
5. Formal cooperative learning groups are ad-hoc groups that may last
from a few minutes to a whole class period.

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ANSWER KEY 4.2-4
TRUE OR FALSE.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE

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LEARNING OUTCOME #3 Sell produce

CONTENTS:
 Market negotiation
 Marketing arrangements
 Preparation of produce
 Product delivery process with quality handling and traceability
 Computation of sales, cost and profit
 Record keeping of details of marketing transaction

ASSESSMENT CRITERIA:
1.1. Perform negotiation with buyers and business development service
providers according to industry practice
1.2. Establish sales terms and condition and agreed following marketing
practices
1.3. Prepare produce for selling according to marketing requirements
1.4. Deliver produce to buyers based on agreement
1.5. Assess marketing operation based on marketing practices
1.6. Record details of marketing transaction and keep as reference
following industry practice

CONDITIONS:
The students/trainees must be provided with the following:
 Writing materials
 References
 Handouts
METHODOLOGIES:
 Modular self-paced
 Lecture/discussion
 Demonstration/role play
ASSESSMENT METHODS:
 Direct observation and questioning
 Demonstration
 Oral interview and written test

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Learning Outcome#3: Apply marketing strategies

Learning Activities Special Instructions

Do not write anything on the


1. Read Information Sheet No. 4.3-1
module; provide extra paper in
on Perform negotiation with buyers
doing the Self-check.
and business development service
providers according to industry
practice
2. Answer the Self-check 4.3-1 Refer your answer to Answer Key
4.3-1.
3. Read Information Sheet No. 4.3-2
on Establish sales terms and
condition and agreed following
marketing practices
4. Answer the Self-check 4.3-2 Refer your answer to Answer Key
4.3-2.
5. Read Information Sheet No. 4.3-3
Prepare produce for selling according
to marketing requirements
6. Answer the Self-check 4.3-3 Refer your answer to Answer Key
4.3-3.
7. Read Information Sheet No. 4.3-4
Deliver produce to buyers based on
agreement
8. Answer the Self-check 4.3-4 Refer your answer to Answer Key
4.3-4.
9. Read Information Sheet No. 4.3-5
Assess marketing operation based on
marketing practices
10. Answer the Self-check 4.3-5 Refer your answer to Answer Key
4.3-5.
11. Read Information Sheet No. 4.3-6
Record details of marketing
transaction and keep as reference
following industry practice
12. Answer the Self-check 4.3-6 Refer your answer to Answer Key
4.3-6.

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INFORMATION SHEET 4.3-1
Active listening:
PERFORM A structured WITH
NEGOTIATION form ofBUYERS
listeningAND
andBUSINESS
responding in
which the listener
DEVELOPMENT focuses
SERVICE attention ACCORDING
PROVIDERS on the speaker, thereby
TO INDUSTRY
improving mutual understanding.
PRACTICE
Persuasion:
Learning The process of changing an individual or a group’s
Objective:
attitude
After or behavior
reading towards
this an idea,sheet
information event or
youissue by means
should of
be able to do
consolidation
written andofverbal
produce and group marketing practices.
communication.
Negotiation: A discussion method where differences between
INTRODUCTION:
individuals and groups are settled
Negotiating skills
In order to negotiate with their partners and buyers, agripreneur must
be able to:
 Use their active listening skills;
 Clarify issues by asking relevant questions;
 Identify the key issues involved in the negotiation;
 Identify areas of common ground between negotiating parties;
 Develop a line of logical, reasoned argument;
 Put their points across clearly and understandably using verbal
communication skills;
 Identify and structure the problem, identify possible solutions or
courses of action and decide on the most suitable option using
problem-solving skills;
 Plan alternative outcomes if a satisfactory decision cannot be reached;
 Use decision-making skills;
 Use presented facts to make decisions with reasoning skills; and
 Use persuasion skills.
These are known as basic negotiation skills.

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Service provider
A service provider (SP) provides organizations with consulting, legal,
real estate, communications, storage, processing. Although a service
provider can be an organizational sub-unit, it is usually a third party or
outsourced supplier, including telecommunications service providers (TSPs),
application service providers (ASPs), storage service providers (SSPs), and
internet service providers (ISPs). [citation needed] A more traditional term is
service bureau (esp. 1960s to 1980s).
IT professionals sometimes differentiate between service providers by
categorizing them as type I, II, or III.[1] The three service types are
recognized by the IT industry although specifically defined by ITIL and the
U.S. Telecommunications Act of 1996.
 Type I: internal service provider
 Type II: shared service provider
 Type III: external service provider
Type III SPs provide IT services to external customers and subsequently
can be referred to as external service providers (ESPs)[2] which range from a
full IT organization/service outsource via managed services or MSPs
(managed service providers) to limited product feature delivery via ASPs
(application service providers).

Types of Service providers;


 Trucking services- Trucking services are a form of ground freight
that move cargo from point A to point B over land. Trucks use shipping
routes to move goods throughout the United States to deliver shipments for
various industries. Shipping by truck allows you to move large or small
shipments, as well as shipments that require special conditions. Shipping
by truck can also be very economical, especially if departing from a major
port such as Los Angeles or New York City.
 Warehousing services- Warehouse Services means the storage of
goods, wares, or commodities for hire or compensation, and, in connection
with this operation, may include the loading, packing, sorting, stacking,
wrapping, distribution, and delivery of those goods. Warehouse Services
means any transloading, warehousing, cross-docking, consolidation, and
other similar services, including related ancillary services such as
loading/unloading, packing, crating, and handling, that occur in a facility or
on a premises owned, leased, or operated by GEODIS.

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 Training services- Training is teaching, or developing in oneself or
others, any skills and knowledge or fitness that relate to specific useful
competencies. Training has specific goals of improving one's capability,
capacity, productivity and performance. It forms the core of apprenticeships
and provides the backbone of content at institutes of technology (also known
as technical colleges or polytechnics). In addition to the basic training
required for a trade, occupation or profession, training may continue beyond
initial competence to maintain, upgrade and update skills throughout
working life. People within some professions and occupations may refer to
this sort of training as professional development. Training also refers to the
development of physical fitness related to a specific competence, such as
sport, martial arts, military applications and some other occupations.
o Types of training services
vi. Physical Training
vii. Occupation Skill training
viii. On Job training
ix. Religion and spiritual training
 Cold storage provider- Cold storage is the storage of any
temperature-controlled substance that prevents that substance from
decaying or not adhering to laws and regulations that apply to that item.

Cold Storage Can Appear in A Variety Of Places:


1. A manufacturer may have a private cold storage facility to
warehouse products before they make their way to end users.
An example:
 A Minneapolis-based meat packer has a private on-site cold storage
facility and operates a private fleet.

2. End users may have cold storage facilities to store temperature-


controlled products after they’ve received them but before they have a
need to use them.
An example:
 A large Chicago hotel chooses to purchase food in bulk and store all
temperature sensitive items in an on-site private cold storage unit.

3. Most commonly, cold storage is outsourced to a third-party logistics


provider (3PL), where products stay until they are ready to be shipped
to an end user.

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An example:
 A large Wisconsin cheese producer opts to use a 3PL’s cold storage
facility to store all of its temperature sensitive dairy products.

 Packaging provider- Packaging is the science, art and technology of


enclosing or protecting products for distribution, storage, sale, and use.
Packaging also refers to the process of designing, evaluating, and producing
packages. Packaging can be described as a coordinated system of preparing
goods for transport, warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves, transports, informs, and sells.[1] In many
countries it is fully integrated into government, business, institutional,
industrial, and personal use.
Package labeling (American English) or labelling ([[British
EnglFireish]]) is any written, electronic, or graphic communication on
the package or on a separate but associated label.

Others may include;


 Application service provider (ASP)
 Cloud service provider (CSP) - Software, platform, infrastructure
service provider in cloud computing
 Network service provider (NSP)
 Internet service provider (ISP)
 Managed service provider (MSP)
 Managed Security Service Provider (MSSP)
 Storage service provider (SSP)
 Telecommunications service provider (TSP)
 SAML service provider
 Master managed service provider (MMSP)
 Managed Internet service provider (MISP)
 Online service provider (OSP)
 Payment service provider (PSP)
 Cleaning service provider
 Gardening service provider
 Pest control service provider
 Oilfield service provider

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 Application software service provider in a service-oriented
architecture (ASSP)
 Cable television service provider

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SELF- CHECK 4.3-1
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. A service provider (SP) provides organizations with consulting, legal,
real estate, communications, storage, processing.
2. Warehouse Services are a form of ground freight that move cargo
from point A to point B over land.
3. Trucking services means the storage of goods, wares, or
commodities for hire or compensation, and, in connection with this
operation, may include the loading, packing, sorting, stacking,
wrapping, distribution, and delivery of those goods.
4. Packaging is the storage of any temperature-controlled substance
that prevents that substance from decaying or not adhering to laws
and regulations that apply to that item.
5. Identify and structure the problem, identify possible solutions or
courses of action and decide on the most suitable option using
problem-solving skills;

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ANSWER KEY 4.3-1
TRUE OR FALSE.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. TRUE

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INFORMATION SHEET 4.3-2
ESTABLISH SALES TERMS AND CONDITION AND AGREED FOLLOWING
MARKETING PRACTICES
Learning Objective:
After reading this information sheet you should be able to do
consolidation of produce and group marketing practices.

INTRODUCTION:
In every business, Sales terms and condition are always mentioned
between the supplier and the consumer. Sales terms and condition is
dependent to the negotiation of supplier and consumer.

Some terms and conditions of commercial sale (the “Terms and


Conditions”)

1. OFFER, CONFIRMATION OR AGREEMENT


Any Offer is expressly made conditional on Buyer's assent to all of the
terms contained in the Offer without deviation. Acceptance by Buyer of an
Offer may be evidenced by (i) Buyer's written or verbal assent or the written
or verbal assent of any representative of Buyer, (ii) Buyer's acceptance of
delivery of the Products or payment of purchase price for the first
installment of the Products (if applicable), or any such acceptance by any
representative of Buyer, or (iii) other conduct by Buyer or any representative
of Buyer consistent with acceptance of the Offer.
In the event that any Offer or Confirmation is sent in response to
Buyer's blanket purchase order, the terms and conditions of that Offer or
Confirmation, including these Terms and Conditions, shall apply to any
delivery by Seller, irrespective of whether Buyer submits additional
purchase orders (electronically or otherwise) and whether Seller provides a
Confirmation to such additional purchase orders. All terms and conditions
of such documents by Buyer are hereby rejected.
Seller’s Offers are open for acceptance within the period stated by
Seller in the Offer or, when no period is stated, within thirty (30) days from
the date of the Offer, but any Offer may be withdrawn or revoked by Seller at
any time prior to the receipt by Seller of Buyer's acceptance related thereto.
If Seller receives an order from Buyer for the sale by Seller and
purchase by Buyer of Products and such order is not a response to an Offer

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by Seller, or if Seller receives an order or acceptance by Buyer which
deviates from Seller's Offer, such order or acceptance, respectively, shall be
deemed to be a request for an Offer only.
An acceptance by Buyer of any Offer made by an order gatherer,
liaison officer, agent or sales representative for Seller shall constitute an
Agreement between Seller and Buyer upon explicit Confirmation by Seller
itself.
2. PRODUCTS, QUANTITIES AND PRICING
Prices in any Offer, Confirmation or Agreement are in Euros and do
not include any taxes, duties or similar levies, now or hereafter enacted,
applicable to the Products. Seller will add taxes, duties and similar levies to
the sales price where Seller is required by law to pay or collect them and will
be paid by Buyer together with the price.
With regard to Custom Products Seller may deliver a quantity that is a
maximum amount of ten percent (10%) more or less than the ordered
quantity of any order line item. Such delivered quantity will be accepted and
paid for (against an amount being the actual delivered quantity times the
unit price) in full satisfaction of each party's obligation under the Agreement
for the quantity ordered.
3. RIGHTS IN DOCUMENTATION AND INTELLECTUAL PROPERTY
Seller shall retain title to and possession of all designs, masks,
database tapes and source code of the Products. Individual segments or
parts of Product designs, including but not limited to standard cells,
megacells, base arrays or software libraries, are the property of Seller and
may be used by Seller in other designs and may not be used by Buyer
except as a part of Products designed and manufactured by Seller.
Seller grants Buyer a nonexclusive license to use and distribute
software (including firmware in all references to “software”, unless stated
otherwise) in machine-readable form, only in combination with or as part of
the Products for which the software has been provided and only one copy for
each such Product. No rights or licenses with respect to any software source
code are granted to Buyer. With respect to Products, software,
documentation, and portions thereof, Buyer is not authorized to and agrees
that it will not: (i) reverse engineer, decompile, decrypt, disassemble or
otherwise attempt to derive the source code, ideas, technology or algorithms,
except to the extent expressly authorized by statutory law; (ii) modify or
create derivative works; (iii) remove or alter any proprietary markings or

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notices; or (iv) merge, link or incorporate software into any other software.
Should Buyer create any modifications or derivative works of Products,
software, documentation or a portion thereof, Buyer irrevocably assigns and
agrees to assign all right, title and interest in any such modifications or
derivative works to Seller. Buyer's rights under these Terms and Conditions
are conditional upon Buyer not performing any actions that may require any
software, Products and/or any derivative work thereof, to be licensed under
open source software license terms that may, for example, require disclosing
source code, granting a license under intellectual property rights, such as
granting a permission to develop derivative works, or granting other rights
or assuming responsibilities commonly associated with open source
software.
If Buyer is in default of any of the terms herein, Buyer’s license to
software and documentation will automatically terminate. Buyer shall
indemnify Seller against and hold Seller harmless from any damage or costs
arising from or in connection with any violation or breach of the provisions
of this Section 3 and Buyer shall reimburse all costs and expenses incurred
by Seller in defending any claim, demand, suit or proceeding arising from or
in connection with such violation or breach.
To the extent that software and/or documentation is embedded in a
Product, the sale of such Product shall not constitute the transfer of
ownership rights or title in such software and/or documentation, and all
references to “sale” or “sold” of any software or documentation shall be
deemed to mean a license. Except for those rights specifically granted in this
Section 3 in connection with software and documentation: (i) Seller and its
suppliers reserve all right, title and interest, together with all intellectual
property rights thereto, in all software and documentation provided or made
available to Buyer, and (ii) no other express or implied license, right or
interest in or to any patent, patent application, copyright, trade secret,
trademark, trade name, service mark or any other intellectual property right
is granted hereunder.
A sale of any of the Products and these Terms and Conditions shall
not be construed as conferring any right, license or immunity:
 Under any intellectual property rights to any combination, machine,
or process in which Products might be used, or to any modifications of
Products, software, or documentation;

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 With respect to any trademark, trade or brand name, corporate name,
or any other name or mark, or contraction, abbreviation or simulation
thereof;
 Under any intellectual property rights covering an industry standard
set by a standard setting body or agreed to between at least two
companies; or
 Under any intellectual property rights with respect to which Seller has
informed Buyer or has published a statement that a separate license
has to be obtained or that no license is granted or implied.

4. PAYMENT
a. Unless agreed otherwise between Seller and Buyer in writing, Seller
may invoice Buyer for the price of the Products delivered upon delivery
of the Products in accordance with the applicable Incoterm. Net
payment is due within thirty (30) days of date of invoice unless agreed
otherwise between Seller and Buyer in writing. All payments shall be
made to the designated Seller's address. If deliveries are made in
installments, each installment may be separately invoiced and shall
be paid for when due. No discount is allowed for early payment unless
agreed to in writing by Seller. Interest will accrue on all late payments,
at the rate of eighteen percent (18%) per annum or the maximum rate
permitted by applicable law, whichever is lower, from the due date
until payment in full.

b. All deliveries and performance of work agreed to by Seller shall at


all times be subject to credit approval of Seller. If, in Seller's
judgment, Buyer's financial condition at any time does not justify
production, performance of work or delivery on the above payment
terms, Seller may require full or partial payment in advance or other
payment terms as condition for delivery, and Seller may suspend,
delay or cancel any credit, delivery or any other performance by Seller.

c. Payment by Buyer of non-recurring charges (as may be made to


Seller for special design, engineering work or production materials)
shall not convey title to any design, engineering work or production
materials, and title shall remain in Seller.

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d. Buyer shall not offset, withhold or reduce any payment(s) due by it
to Seller. The payment of fees and charges is a covenant of Buyer that
is independent of the other covenants made by the parties hereunder.

e. If Seller incurs exchange rate losses due to Buyer's failure to pay


when payments are due, Seller shall be entitled to equivalent
compensation from Buyer for such losses.

f. In the event of any default by Buyer in the payment of any fees or


charges due, or any other default by Buyer, Seller shall have the right
to refuse performance of any work and delivery of any Products until
payments are brought current and Seller may suspend, delay or
cancel any credit, delivery or any other performance by Seller. Such
right shall be in addition to, and not in lieu of, any other rights and
remedies available under these Terms and Conditions or at law or in
equity.
5. DELIVERY AND QUANTITIES
a. Products shall be delivered Free Carrier (FCA) Incoterms® 2010 at
the airport in the country of dispatch or other facility designated by
Seller, unless otherwise agreed in writing between Seller and Buyer.
Delivery dates communicated or acknowledged by Seller are
approximate only, and Seller shall not be liable for, nor shall Seller be
in breach of its obligations to Buyer, because of any delivery made
within a reasonable time before or after the stated delivery date. Seller
agrees to use commercially reasonable efforts to meet the delivery
dates communicated or acknowledged by it on the condition that
Buyer provides all necessary order and delivery information
sufficiently prior to the agreed delivery date.

b. In the event Buyer contests delivery, Buyer must request a proof of


delivery from Seller within ninety (90) days of the date of Seller's
invoice, otherwise delivery shall be deemed completed.

c. Buyer will give Seller written notice of failure to deliver and thirty
(30) days within which to cure. If Seller does not cure within thirty
(30) days, Buyer's sole and exclusive remedy is to cancel the affected
and undelivered portions of the Agreement.

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d. Title in the Products shall pass to Buyer upon payment in full of
the purchase price in respect thereof. Risk of loss in the Products
shall pass to Buyer upon Seller's delivery in accordance with the
applicable Incoterm.

e. If Buyer fails to take delivery, then Seller may deliver the Products
in consignment at Buyer's costs and expenses.

f. In the event of shortages Seller may allocate its available production


and Products, in its sole discretion, among its customers and as a
result may sell and deliver to Buyer fewer Products than specified in
Seller’s Offer, Confirmation or Agreement, as the case may be.
6. CUSTOM PRODUCT
Prices and/or schedules for Custom Products are subject to change by
Seller if any specifications are revised or supplemented or there are
unforeseen difficulties with the design.
7. RESCHEDULING AND CANCELLATION
No order, Agreement or any part thereof may be rescheduled or
cancelled without Seller’s prior written consent.
8. FORCE MAJEURE
Seller shall not be liable for any failure or delay in performance if:
a. such failure or delay results from the fact that Seller’s
manufacturing volume of the Products concerned is lower than
anticipated due to interruptions in the manufacturing process; or
b. such failure or delay does not result from its fault; or
c. such failure or delay is caused by Force Majeure as defined below or
by law.
In case of such a non-attributable failure, the performance of the
relevant part(s) of the Agreement will be suspended for the period such non-
attributable failure continues, without Seller being responsible or liable to
Buyer for any damage resulting therefrom.
The expression “Force Majeure” shall mean and include any
circumstances or occurrences beyond Seller’s reasonable control (whether or
not foreseeable at the time of the Offer, Confirmation or Agreement) as a
result of which Seller cannot reasonably be required to execute its
obligations. Such circumstances or occurrences include but are not

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restricted to: acts of God, war, civil war, terrorism, insurrections, strikes,
fires, floods, earthquakes, labor disputes, epidemics, governmental
regulations and/or similar acts, freight embargoes, non-availability of any
permits, licenses and/or authorizations required, defaults or delays of
suppliers or subcontractors and/or inability or impracticability to secure
transportation, facilities, fuel, energy, labor, materials or components. In the
event that the Force Majeure extends for a period of three (3) consecutive
months (or in the event that the delay is reasonably expected by Seller to
extend for a period of three (3) consecutive months), Seller shall be entitled
to cancel all or any part of the Agreement without any liability of Seller
towards Buyer. In the event Seller’s production is curtailed, for any reason,
Seller shall have the right to allocate its available production and Products,
in its sole discretion, among its various customers and as a result may sell
and deliver to Buyer fewer Products than specified in Seller’s Offer,
Confirmation or Agreement, as the case may be.
9. LIMITED WARRANTY AND DISCLAIMER
a. Seller warrants that under normal use the Products (excluding any
Excluded Products shall, at the time of delivery to Buyer and for a
period of twelve (12) months thereafter (or such other period as may
be agreed-upon in writing by the parties), be free from defects in
material or workmanship and shall substantially conform to Seller’s
specifications for such Products, or such other specifications as Seller
has agreed to in writing, as applicable.

b. Seller’s sole and exclusive obligation, and Buyer's sole and


exclusive right, with respect to claims under this warranty shall be
limited, at Seller’s option, either to (a) the replacement or repair of a
defective or non-conforming Product, or (b) an appropriate credit for
the purchase price thereof. Seller will have a reasonable time to
repair, replace or credit. The non-conforming or defective Products
shall become Seller’s property as soon as they have been replaced or
credited for.

c. All Excluded Products shall be delivered AS IS WITHOUT


WARRANTY OF ANY KIND.

d. Notwithstanding the foregoing, Seller shall have no obligations for


breach of warranty if the alleged defect or non-conformance is found
to have occurred as a result of: environmental or stress testing,

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misuse, neglect, improper installation, accident, improper repair,
alteration, modification, improper storage, improper transportation or
improper handling of the Products, after the risk of loss in the
Products has passed to Buyer.

e. Buyer may ship Products returned under warranty claims to


Seller’s designated facility only so long as the returns are in
conformance with Seller’s then-current return material authorization
policy and are accompanied by a duly completed return material
authorization form issued by Seller. Where warranty adjustment is
made, Seller will pay for freight expenses. Buyer shall pay for returned
Products that are not found to be defective or non-conforming together
with the freight, testing and handling costs associated therewith.

f. THE EXPRESS WARRANTY GRANTED ABOVE SHALL EXTEND


DIRECTLY TO BUYER AND NOT TO BUYER'S CUSTOMERS, AGENTS
OR REPRESENTATIVES. THE EXPRESS WARRANTY GRANTED
ABOVE IS IN LIEU OF ALL OTHER WARRANTIES, WHETHER
EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY
IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY, OR NON-INFRINGEMENT OF INTELLECTUAL
PROPERTY RIGHTS. ALL OTHER WARRANTIES ARE HEREBY
SPECIFICALLY DISCLAIMED BY SELLER.

g. Subject to the exclusions and limitations set forth in Section 11 of


these Terms and Conditions, the foregoing states the entire liability of
Seller in connection with defective or non-conforming Products
supplied hereunder.
10. INTELLECTUAL PROPERTY RIGHTS INDEMNITY
a. Seller, at its expense, shall: (i) defend against a claim in a legal
proceeding brought by a third party against Buyer that any hardware
Product as furnished by Seller hereunder directly infringes the
claimant's patent or copyright; and (ii) hold Buyer harmless against
damages and costs awarded by final judgment in such proceeding (or
agreed upon in a settlement to which Seller consents) to the extent
directly and solely attributable to infringement by the Product.

b. Seller shall have no obligation or liability to Buyer under Section


10(a): (1) if Seller is not: (i) promptly notified in writing of the claim, (ii)

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given the sole right to control the defense and settlement of such
claim, including the selection of counsel, and (iii) given full reasonable
assistance and cooperation by Buyer in such defense and settlement;
(2) if the claim is made more than three (3) years after the date of
delivery of the Product; (3) to the extent that any such claim arises
from: (i) modification of the Product, (ii) design, specifications or
instructions furnished by Buyer, or (iii) the combination or use of the
Product with any product, software, service or technology; (4) for
unauthorized use or distribution of the Product or use beyond the
specifications of the Product; (5) to the extent that any such claim
arises from Buyer's use, sale, offer for sale or importation of the
Product after Seller’s notice to Buyer that Buyer should cease any
such activity because the Product is, or is reasonably likely to become,
the subject of a claim of infringement; (6) for any costs or expenses
incurred by Buyer without Seller’s prior written consent; (7) to the
extent that the claim is based on any Excluded Products; (8) to the
extent that any such claim arises from any infringement or alleged
infringement of third party's intellectual property rights covering an
industry standard set by a standard setting body or agreed to between
at least two companies; (9) for infringement of any third party's
intellectual property rights with respect to which Seller has informed
Buyer or has published a statement that a separate license has to be
obtained or that no license is granted or implied; or (10) to the extent
that patent infringement damages are computed using a royalty base
that exceeds the cost of the Product.
If any claim of infringement is brought against Seller as a result of
Buyer’s actions in connection with items (3), (4), or (5) of this Section
10(b), Buyer shall indemnify Seller against and hold Seller harmless
from any damages or costs arising from or connected with such claim
of infringement and shall reimburse all costs incurred by Seller in
defending any claim, demand, suit or proceeding for such
infringement, provided Seller gives Buyer prompt notice in writing of
any such suit or proceeding for infringement.

c. If any Product is, or in Seller’s opinion is likely to become, the


subject of a claim of infringement, Seller shall have the right, without
obligation and at its sole option, to: (i) procure for Buyer the right to
continue to use or sell such Product, (ii) replace or modify such
Product in such a way as to make the modified Product non-
infringing, or (iii) terminate any Agreement to the extent related to
such Product. In the event of any such termination, Buyer may return
to Seller all such Products in Buyer’s possession at the time of such

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termination, which are then subject to the claimant’s continuing claim
of infringement; and upon such return Seller shall credit Buyer the
sum paid to Seller by Buyer for such Products, less appropriate
depreciation.

d. The foregoing indemnity is personal to Buyer and is not assignable,


transferable or subject to pass-through to any third party including
Buyer’s customers.

e. SUBJECT TO THE EXCLUSIONS AND LIMITATIONS SET FORTH IN


SECTION 11 OF THESE TERMS AND CONDITIONS, THE
FOREGOING STATES SELLER’S ENTIRE LIABILITY AND OBLIGATION
TO BUYER OR ITS MEDIATE OR IMMEDIATE CUSTOMERS AND
BUYER'S SOLE REMEDY WITH RESPECT TO ANY ACTUAL OR
ALLEGED INFRINGEMENT OF ANY INTELLECTUAL PROPERTY
RIGHTS OF ANY KIND.
11. LIMITATION OF LIABILITY
a. EXCEPT FOR BUYER'S LIABILITY UNDER SECTIONS 3 OR 11(C)
HEREOF, NO PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR
ANY LOST PROFITS OR LOST SAVINGS, INDIRECT, INCIDENTAL,
PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES WHETHER OR
NOT SUCH DAMAGES ARE BASED ON TORT, WARRANTY,
CONTRACT OR ANY OTHER LEGAL THEORY, EVEN IF SUCH PARTY
HAS BEEN ADVISED, OR IS AWARE, OF THE POSSIBILITY OF SUCH
DAMAGES. IN NO EVENT SHALL SELLER BE LIABLE FOR ANY
DAMAGE, COSTS OR EXPENSES ASSOCIATED WITH WARRANTY OR
INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS, WHETHER
FOR THE REPLACEMENT OR REPAIR OF PRODUCTS, INCLUDING
LABOR, INSTALLATION OR OTHER COSTS INCURRED BY BUYER
AND, IN PARTICULAR, ANY COSTS RELATED TO THE REMOVAL OR
REPLACEMENT OF ANY PRODUCTS SOLDERED OR OTHERWISE
PERMANENTLY AFFIXED TO ANY PRINTED CIRCUIT BOARD,
EXCESS PROCUREMENT COSTS, OR REWORK CHARGES.

b. The aggregate liability of Seller, for all Buyer claims arising out of or
in connection with the sale or use of any Product, shall not exceed the
amount that Buyer has paid Seller for such Product during the twelve
(12) months immediately preceding Buyer’s notification to Seller of the
applicable Buyer claim. Notwithstanding the above (a) the liability of
Seller, for Buyer claims regarding delay or non-delivery of Products,

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shall not exceed fifty percent (50%) of the purchase price of the
delayed or non-delivered Products concerned, and (b) the liability of
Seller for all Buyer claims for all Products shall not exceed One Million
Dollars ($1,000,000.00) in the aggregate. The existence of more than
one Buyer claim, or Buyer claims involving more than one Product,
shall not enlarge or extend the above specified limits.

c. The Products are not designed, authorized or warranted to be


suitable for use in military, life support, life-critical or safety-critical
system applications, nor in applications where failure or malfunction
of a Product can reasonably be expected to result in a personal injury,
death or severe property or environmental damage. Inclusion and/or
use of Products in such equipment or applications, without prior
authorization in writing of Seller, is not permitted and for Buyer's own
risk, verification and validation of the suitability of use. Buyer agrees
to fully indemnify Seller for any damages resulting from such
inclusion or use.

d. Buyer must provide notice to Seller of any claim that Buyer has
under these Terms and Conditions within ninety (90) days of the date
that the claim arises, and any lawsuit relative to any claim must be
filed within one (1) year of the date of notice to Seller of the claim.
Buyer agrees that any claim noticed or filed outside of the deadlines
set forth in the preceding sentence are deemed waived.

e. The limitations and exclusions set forth above in this Section 11


shall only apply to the extent permitted by applicable mandatory law.
12. CONFIDENTIALITY
Except for non-confidential documentation provided to Buyer for
distribution with a corresponding Product, Buyer acknowledges that all
technical, commercial and financial information (including without
limitation any source code) disclosed to Buyer by Seller is the confidential
information of Seller. Buyer shall not disclose any such confidential
information to any third party and shall not use any such confidential
information for any purpose other than as agreed by the parties and in
conformance with the purchase transactions contemplated herein.
13. COMPLIANCE WITH LAWS

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Each party hereto represents that it is duly authorized to enter into
these Terms and Conditions and represents that with respect to its
performance hereunder, it will comply with all applicable federal, state and
local laws, including, but not limited to those pertaining to U.S. Export
Administration or the export or import controls or restrictions of other
applicable jurisdictions.
If the delivery of Products under these Terms and Conditions is
subject to the granting of an export or import license by a government
and/or any governmental authority under any applicable law or regulation,
or otherwise restricted or prohibited due to export or import control laws or
regulations, Seller may suspend its obligations and Buyer's rights regarding
such delivery until such license is granted or for the duration of such
restriction and/or prohibition, respectively, and Seller may even terminate
any Agreement related to such Products, without incurring any liability
towards Buyer.
Furthermore, if an end-user statement is required, Seller shall inform
Buyer immediately thereof and Buyer shall provide Seller with such
document upon Seller’s first written request; if an import license is required,
Buyer shall inform Seller immediately thereof and Buyer shall provide Seller
with such document as soon as it is available.
By accepting Seller’s Offer, entering into any Agreement and/or
accepting any Products, Buyer agrees that it will not deal with the Products
and/or documentation related thereto in violation of any applicable export
or import control laws and regulations.
14. ASSIGNMENT AND SETOFF
Buyer shall not assign any rights or obligations under these Terms
and Conditions or any Agreement without the prior written consent of Seller.
Buyer hereby waives any and all rights to offset existing and future claims
against any payments due for Products sold under these Terms and
Conditions or under any other agreement that Buyer and Seller may have
and agrees to pay the amounts hereunder regardless of any claimed offset
which may be asserted by Buyer or on its behalf. Seller is allowed to assign
any rights or obligations under these Terms and Conditions and any
Agreement to its affiliates or to any third party in connection with a merger
or a change of control.
15. GOVERNING LAW AND FORUM
These Terms and Conditions, and all Offers, Confirmations and
Agreements, are governed by and construed in accordance with the laws of
the Netherlands. All disputes arising out of or in connection with these
Terms and Conditions, or any Offer, Confirmation or Agreement, shall first

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be attempted by Buyer and Seller to be settled through consultation and
negotiation in good faith and a spirit of mutual understanding. All disputes
that are not so settled within a period of thirty (30) days from the date the
relevant party notified the other party to that effect, shall be submitted to
the courts of Amsterdam, the Netherlands, provided that Seller shall always
be permitted to bring any action or proceedings against Buyer in any other
court of competent jurisdiction. The United Nations Convention on
Contracts for the International Sale of Goods shall not apply to these Terms
and Conditions, or any Offer, Confirmation or Agreement. Nothing is this
Section 15 shall be construed or interpreted as a limitation on either Seller’s
or Buyer’s right under applicable law for injunctive or other equitable relief
or to take any action to safeguard its possibility to have recourse on the
other party.
16. BREACH AND TERMINATION
Without prejudice to any rights or remedies Seller may have under
these Terms and Conditions or the Agreement or at law, Seller may, by
written notice to Buyer, terminate with immediate effect any Agreement, or
any part thereof, without any liability whatsoever, if:
a. Buyer fails to make payment for any Products to Seller when due;
b. Buyer fails to accept conforming Products supplied hereunder;
c. any proceedings in insolvency, bankruptcy (including
reorganization) liquidation or winding up are instituted against Buyer,
whether filed or instituted by Buyer, voluntary or involuntary, a
trustee or receiver is appointed over Buyer, or any assignment is made
for the benefit of creditors of Buyer; or
d. Buyer violates or breaches any of the provisions of these Terms and
Conditions and/or the Agreement.
Upon occurrence of any of the events referred to under 16(a) through
16(d) above, all payments to be made by Buyer under the Agreement shall
become immediately due and payable.
In the event of cancellation, termination or expiration of any
Agreement the terms and conditions destined to survive such cancellation,
termination or expiration (which shall include without limitation all defined
terms and Sections 4, 8 through 16 and 19 through 24 of these Terms and
Conditions) shall survive.
17. PRODUCT AND PRODUCTION CHANGES
Seller reserves the right to make at any time Product and/or
production changes. In such event Seller represents that said changes shall

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not negatively affect form, fit or function of the Products and their
performance characteristics.
18. DISCONTINUATION OF PRODUCT
Seller reserves the right to discontinue manufacturing and sale of
Products at any time. If however at any time during the term of an
Agreement under which Seller sells and Buyer purchases Products on a
regular basis, such regularly sold and purchased Products are to be
permanently discontinued (“Discontinued Product”), Seller shall use its
reasonable commercial efforts to give Buyer prior written notice of such
discontinuance and shall use reasonable commercial efforts to accept last-
time-buy orders for such Discontinued Product all in accordance with
Seller’s product discontinuation process and general information related
thereto as published on Seller’s website.
19. SEVERABILITY
In the event that any provision(s) of the Agreement or these Terms and
Conditions shall be held invalid or unenforceable by a court of competent
jurisdiction or by any future legislative or administrative action, such
holding or action shall not negate the validity or enforceability of any other
provisions thereof.
20. WAIVER
The failure on the part of either party to exercise, or any delay in
exercising, any right or remedy arising from any Offer, Confirmation or
Agreement, or these Terms and Conditions, shall not operate as a waiver
thereof; nor shall any single or partial exercise of any right or remedy arising
therefrom preclude any other or future exercise thereof or the exercise of
any other right or remedy arising from any Offer, Confirmation or
Agreement, or these Terms and Conditions or by law.
21. NOTICES
All notices and communications to be given under these Terms and
Conditions shall be in writing and shall be deemed delivered upon hand
delivery, confirmed facsimile communication, or three (3) days after deposit
in the mail of the home country of the party, postage prepaid, by certified,
registered, first class or equivalent mail, addressed to the parties at their
addresses set forth on the Offer, Confirmations and/or Agreement.
22. ATTORNEYS' FEES
Should a dispute arise from the subject matter of any Offer,
Confirmation or Agreement, or these Terms and Conditions, the prevailing
party in any resulting litigation shall be reimbursed by the other party for
any and all reasonable attorneys' fees and expenses incurred.

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23. RELATIONSHIP OF PARTIES
The parties hereto intend to establish a relationship of buyer and
seller and as such are independent contractors with neither party having
authority as an agent or legal representative of the other to create any
obligation, express or implied, on behalf of the other.
24. MODIFICATIONS AND CHANGES
Seller reserves the right to make any amendments or modifications to
these Terms and Conditions at any time. Such amendments and
modifications shall have effect (1) on all Offers, Confirmations and
Agreements referring to such amended or modified Terms and Conditions as
from the date of such Offer, Confirmation or Agreement, and (2) on any
existing Agreement thirty (30) days from notification of such amendments or
modifications by Seller to Buyer, unless Buyer has notified Seller within
such thirty (30) days period that it objects thereto.
25. DEFINITIONS
In this Agreement the terms defined hereunder shall have the following
meaning:
 ‘Agreement’ any agreement resulting from an Offer or Confirmation,
and any agreement incorporating these Terms and Conditions by
reference;
 ‘Confirmation’ all acceptances, acknowledgements or confirmations by
Seller of any order of Buyer, including without limitation orders of
Buyer resulting from any pricing or other framework agreement
between any Buyer and Seller;
 ‘Custom Products’ Products designed and manufactured for the
unique needs of Buyer, to Buyer's specifications or requirements,
such as an ASIC or ASSP;
 ‘Excluded Products’ (i) software that is (a) licensed under open source
software license terms, (b) provided by Buyer or any of its designees to
Seller, (c) modified by Buyer or any third party, other than at Seller’s
request, and/or (d) not embedded in a Product by Seller; (ii)
prototypes; (iii) Custom Products manufactured and/or delivered prior
to both parties' written acceptance of the prototypes thereof; (iv)
experimental Products; (v) beta testing Products; and/or (vi) samples
of newly developed Products

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SELF- CHECK 4.3-3
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Sales terms and condition is dependent to the negotiation of
supplier and consumer.
2. Any Offer is expressly made conditional on Buyer's assent to all of
the terms contained in the Offer without deviation.
3. Seller will add taxes, duties and similar levies to the sales price
where Seller is required by law to pay or collect them and will be paid
by Buyer together with the price.
4. If Buyer fails to take delivery, then Seller may deliver the Products
in consignment at Buyer's costs and expenses.
5. Payment by Buyer of non-recurring charges (as may be made to
Seller for special design, engineering work or production materials)
shall convey title to any design, engineering work or production
materials, and title shall remain in Seller.

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ANSWER KEY 4.3-3
TRUE OR FALSE.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE

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INFORMATION SHEET 4.3-3
PREPARE PRODUCE FOR SELLING ACCORDING TO MARKETING
REQUIREMENTS
Learning Objective:
After reading this information sheet you should be able to prepare
produce for selling according to marketing requirements

INTRODUCTION:
Marketing Strategies for Fresh Fruits & Vegetables
For many decades, nutritionists and other health professionals have
tried to get consumers to consume more fresh produce. Yet fruit and
vegetable marketing can be challenging. Fortunately, the public has become
more interested in nutrition, the concept of "functional foods" and home
cooking. Fresh produce business owners can take advantage of these trends
to educate potential customers and encourage the consumption of fresh
fruits and vegetables.

Nutrition Labeling and Education


One of the most significant selling points for fresh fruits and vegetables is
that these foodstuffs are considered by dietitians, physicians and consumers
themselves to be "healthy." This is because fruits and vegetables are often
high in fiber, low in calories, often contain essential nutrients such as
vitamin C, potassium and folic acid, and they may be high in compounds
that offer significant health benefits. However, the public may not be aware
of the nutritional profile of a specific fruit or vegetable. Labels for
prepackaged fresh produce can contain information that is valuable to
consumers who are concerned about what it is they are reading.
 Package labeling: Standard nutrition labels include a breakdown of
micro and macronutrients, and also provide information on serving
size and the number of calories per serving that a particular fruit or
vegetable contains. Suppliers may want to include additional
information about the potential health benefits that a specific type of
produce offers, providing that the information is correct and is in-line
with federal food and drug labeling regulations.
 Food and Drug Administration store posters: Many fruits and
vegetables are sold unwrapped, and unpackaged. Unless the
consumer is shopping with a smartphone, it can be difficult to
determine nutritional information for fresh produce at the point-of-
sale. To remedy this, the United States Food and Drug Administration

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sponsors a nutrition information program for raw fruits, vegetables
and fish.
 Merchants can download, free of charge, posters that display
nutrition facts for fresh produce online. The merchant can then
display the poster near fruits and vegetables so that customers have
accurate information while selecting products for purchase.

 Lesson plans: Teachers are often looking for supplementary material


that they can use to teach their students. Retailers and suppliers can
work with educators to develop age-appropriate curriculum materials
that tell the benefits of eating fruits and vegetables. These materials
might include fun activities such as opportunities to color in pictures
of produce, as well as trivia games and quizzes.

 It may also be possible to incorporate the study of produce throughout


a school's curriculum. For example, fruits and vegetables are grown
all over the world. Students could be encouraged to research the
countries from where their fruits and vegetables come from as part of
social science, geography or foreign language classes. Similarly,
students could research the etymology of the names of different types
of produce and even identify mentions or depictions of them in
literature and artwork.

Preparation Ideas and Recipes


Consumers often shy away from purchasing fresh fruits and
vegetables because they don't know how to prepare and cook them.
Vegetable and fruit marketing professionals working for produce suppliers,
as well as retailers, can take the initiative in educating consumers on
different ways to prepare their produce and incorporate vegetables and fruits
into their daily and weekly meal plans. Professional cooks, home economists
and registered dietitians can assist in the development of innovative,
delicious and healthy recipes.
Here are some ideas for providing preparation tips and recipes:
a. Printing recipes on packages: While much fresh produce is sold loose,
some of it is packaged. Packaging provides produce sellers with the
opportunity to include tips and recipes that can help consumers prepare
delicious fruit and vegetable dishes. Even when minimal packaging is used,
such as a band that holds stalks of bunched broccoli or asparagus together,
it's possible to print information on how to find recipes online.

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Example;
 Free broccoli recipes can be found at www.ABCproduce.com.
 Visit www.ABCproduce.com to download a free vegetable cookbook.
b. Online content: Produce suppliers that maintain an online presence,
either through a website, social media accounts or both, have an
opportunity to share photographs and videos that show the preparation of
recipes that incorporate fresh fruits and vegetables. Blog posts and e-books
can also contain cooking tips as well as full recipes for main courses, side
dishes, salads and desserts.
 Editorial partnerships: Cookbook authors, bloggers, social media
influencers and television show hosts may be interested in forming
partnerships with produce suppliers and retailers. By working with an
influential media personality, vegetable and fruit marketing
professionals can better establish the credibility of their brands.
 In-store classes and sampling: Produce suppliers and store
managers can work together to provide in-store cooking classes,
demonstrations and sampling events for customers. When it comes to
sampling, it may be possible for demonstrators to use fruits and
vegetables instead of crackers when the sample is a dip or sauce. For
example, if the featured sample is a cheese sauce, instead of giving a
customer a cracker or pretzel stick to dip into the sauce, the
demonstrator could provide broccoli or cauliflower florets.
 Recipe contests: Retailers and suppliers can also sponsor recipe
contests, encouraging consumers to develop and submit their favorite
recipes that incorporate fruits and vegetables. Many people find
competitions to be exciting and challenging and their enthusiasm for
the event can be contagious, drawing the attention of other consumers
toward a produce or retail store brand.
 Use of vegetable "waste": Many people are unaware of the ways that
so-called vegetable waste (peels, tops and other scraps) can be used
by consumers. Suppliers and retailers have a role to play in educating
consumers about how they can reduce waste and maximize the value
of the produce that they buy. For example, vegetable scraps can be
added to compost heaps and then used to naturally and effectively
fertilize gardens. In addition, it is also possible to use vegetable
peelings and scraps in making stocks and broths.

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Information about these uses could be presented on websites, via social
media posts and content, in brochures or through in-store special events
and classes. It may also be possible to partner with local environmental
groups, cooking schools and gardening clubs to develop programming that
encourages consumers to responsibly use and recycle produce waste.
Prepackaged Produce Options
While many fruits and vegetables are sold loose, many suppliers sell
packaged produce as well. Here are some ideas for prepackaged fruits and
vegetables that offer additional value to consumers:
 Pre-cut vegetables: Some consumers prefer to avoid the work of
washing, peeling and cutting their vegetables. For these
individuals, pre-cut, prepackaged produce is an option. Pre-cut
fresh broccoli and cauliflower are particularly popular. Because of
their shape, these veggies are often consumed raw as a snack or
hors d'oeuvre.

 Single-serve snacks and meals: Many people are looking for


healthy and convenient light meal and snack options. Many
companies have had success pre-packaging precut, prewashed
vegetables along with dips, such as hummus, crackers or even
cheese.

 Party trays: Fruit and vegetable trays are commonplace at parties


and other events. They can be time-consuming to prepare,
however, which is why many retailers and suppliers sell fruit and
vegetable party trays. Popular options include vegetable crudités
and ranch or onion dip, fruit and cheese platters, as well as fruit
platters with a sweet dip option, such as a caramel sauce for
apples.

Prepared Meals
Consumers who would like to eat at home but don't have a lot of time to
cook often make use of meal kit services and in-store prepared foods:
 Meal kits: This type of meal service allows customers to cook their
own food from scratch, but makes doing so more convenient by

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providing pre-portioned ingredients, along with step-by-step
instructions, in a meal kit. Meal kits are often sold online via
delivery services, though some grocery stores also sell them.
 Heat-and-eat meals: Heat and eat meals take convenience one step
further by offering a fully prepared meal and then sealing it so that
a customer can heat the meal at his convenience. Again, these
types of meals are most often purchased online as part of a
subscription plan, though they may also be available in
supermarkets.
 Prepared food: Grocery stores can reduce waste and maximize
profits by preparing hot and cold recipes with fruits and vegetables
that are still fresh, but are coming close to the end of their shelf
life. These dishes are then sold from the deli, or in-store salad bars
or hot food bars.

In all of these examples, fresh produce can add color, flavor and nutrition
to meal offerings. In addition, the incorporation of vegetables and fruits in
meal kits can also help novice cooks become more comfortable working with
produce. Over time, this comfort could lead to increased sales.
Selecting and Serving Produce Safely
As you enjoy fresh produce, follow
these safe handling tips to help protect
yourself and your family.
Fruits and vegetables are an
important part of a healthy diet. Your
local markets carry a wide variety of
nutritious fresh fruits and vegetables.
However, harmful bacteria that may be in the soil or water where produce
grows can come in contact with fruits and vegetables and contaminate
them. Fresh produce may also become contaminated after it is harvested,
such as during storage or preparation.
Eating contaminated produce can lead to foodborne illness, often
called “food poisoning.” So, as you enjoy fresh produce, follow these safe
handling tips to help protect you and your family.
Buy Right
You can help keep produce safe by making wise buying decisions.
 Choose produce that is not bruised or damaged.

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 When buying pre-cut, bagged or packaged produce — such as
half of a watermelon or bagged salad greens — choose only
those items that are refrigerated or surrounded by ice.
 Bag fresh fruits and vegetables separately from raw meat,
poultry, and seafood when packing them to take home from the
market

Store Properly
Proper storage of fresh produce can affect both quality and safety.
 Store perishable fresh fruits and vegetables (like strawberries,
lettuce, herbs, and mushrooms) in a clean refrigerator at a
temperature of 40° F or below. Use a refrigerator thermometer to
check! If you’re not sure whether an item should be refrigerated
to keep its quality, ask your grocer.
 Refrigerate all produce that is purchased pre-cut or packaged.

Separate for Safety


Keep fruits and vegetables that will be
eaten raw separate from raw meat, poultry, and
seafood — and from kitchen utensils used for
those products.
 Wash cutting boards, dishes, utensils,
and countertops with soap and hot
water between preparing raw meat,
poultry, and seafood and preparing produce that will not be
cooked.
 If possible, use one cutting board for fresh produce and a separate
one for raw meat, poultry, and seafood.
 If you use plastic or other non-porous cutting boards, run them
through the dishwasher after use

Prepare Safely
When preparing any fresh produce, begin with clean hands. Wash
your hands for at least 20 seconds with soap and warm water before and
after preparation.

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 Cut away any damaged or bruised areas on fresh fruits and vegetables
before preparing and/or eating. Throw away any produce that looks
rotten.
 Wash all produce thoroughly under running water before preparing
and/or eating, including produce grown at home or bought from a
grocery store or farmers’ market. Washing fruits and vegetables with
soap, detergent, or commercial produce wash is not recommended.
Produce is porous. Soap and household detergents can be absorbed
by fruits and vegetables, despite thorough rinsing, and can make you
sick. Also, the safety of the residues of commercial produce washes is
not known and their effectiveness has not been tested.
 Even if you do not plan to eat the skin, it is still important to wash
produce first so dirt and bacteria are not transferred from the surface
when peeling or cutting produce.
 Scrub firm produce, such as melons and cucumbers, with a clean
produce brush.
 After washing, dry produce with a clean cloth towel or paper towel to
further reduce bacteria that may be present on the surface

What About Pre-Washed Produce?


Many pre-cut, bagged, or packaged produce items are pre-washed and
ready-to-eat. If so, it will be stated on the packaging, and you can use the
produce without further washing.
If you choose to wash produce marked as “pre-washed” or “ready-to-
eat,” be sure that it does not come in contact with unclean surfaces or
utensils. This will help to avoid cross contamination.

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SELF- CHECK 4.3-3
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Fruits and vegetables are an important part of a healthy diet.
2. Eating contaminated produce cannot lead to foodborne illness,
often called “food poisoning.”
3. When buying pre-cut, bagged or packaged produce — such as half
of a watermelon or bagged salad greens — choose only those items
that are refrigerated or surrounded by ice.
4. Fresh produce business owners can take advantage of these trends
to educate potential customers and encourage the consumption of
fresh fruits and vegetables.
5. One of the most significant selling points for fresh fruits and
vegetables is that these foodstuffs are considered by dietitians,
physicians and consumers themselves to be "unhealthy."
6. Standard nutrition labels include a breakdown of micro and
macronutrients, and also provide information on serving size and the
number of calories per serving that a particular fruit or vegetable
contains.
7. Retailers and suppliers can also sponsor recipe contests,
encouraging consumers to develop and submit their favorite recipes
that incorporate fruits and vegetables.

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ANSWER KEY 4.3-3
TRUE OR FALSE.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
6. TRUE
7. TRUE

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INFORMATION SHEET 4.3-4
DELIVER PRODUCE TO BUYERS BASED ON AGREEMENT
Learning Objective:
After reading this information sheet you should be able to deliver
produce to buyers based on agreement.

INTRODUCTION:
Guide to Deliver High Quality Product and Satisfy Customers
In our daily lives, we talk a lot about ‘quality’ of almost everything – be
it a gadget, appliance, raw material, clothing, food etc. Every person seems
to have his own idea of quality. It is difficult to agree on a single definition of
quality, yet we can define different dimensions or parameters against which
quality of something is measured. These dimensions include reliability,
usability, ease of use, value for money and fit for purpose.
In software houses, we thrive to deliver a high-quality software
product – website, web application, mobile application; a product that could
satisfy customer. This means it is possible that you develop a product which
performs all required functionalities but the customer is still not satisfied.
The question naturally comes in ‘How do we deliver a quality product which
can satisfy customer?’
This post will answer the aforementioned question. This is a guide to
deliver quality product and satisfy customers. In this article, we will briefly
look at the traditional and modern concepts of quality. It will help us
understand how things have changed and what has become talk of the past.
Moving forward, we will explore a framework – the wheel of quality that can
be implemented in any organization to assure delivery of quality products to
a customer consistently.
Traditional Versus Modern Concept of Quality
‘Quality’ is an attribute that can be ascribed to any product in
different contexts. In early ages, craftsmen who produce a product were
responsible for the quality of their products because the scale of production
was small.
A major breakthrough in the concept of quality occurred when mass
production started. Companies tried to produce products with certain degree
of quality that conformed to standards. As time passed, customers became
choosier and their demands increased.
With this change in circumstances, the businesses needed to pace
with the customers’ requirements to survive and eventually grow. This lead
to evolution of the quality approaches and change the viewpoints about how

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quality can be achieved. In this section, we are going to see the differences
between old and new concepts of quality. We will see the differences with
reference to our software development industry.
Inspection Versus Prevention
Inspection was one of the key elements in traditional quality
paradigm. The product was developed and after it is completely developed,
inspection was performed. The aim of inspection was to check the product
against some standards. The team needed to do rework if any fault was
found.
You can easily relate this approach with the ‘Waterfall Model’ of
software development life cycle where testing was performed as a separate
function after software product had been completely developed.
However, the modern era believes in the principle of prevention. It
refers to proactive approach towards the development process to assure a
quality product comes out of it. This includes the processes, tools and
methods.
This is somewhat similar to agile approach where product is being
tested as it is being developed. The approach to prevent defects includes
following process which can foresee a problem and you can work before time
on it. For example, business analysts, testers, developers and project
manager can sit together and discuss a requirement from business and
implementation point of view. This is a good practice to pinpoint any
conflicting requirements or side cases in the discussion phase, which might
have surfaced after product development otherwise.
Quality as a Cost versus Quality as a Profit
Previously, acquiring quality was considered as a cost. Any investment
in tools, methods and processes to achieve higher quality were considered as
a cost. The management was not convinced of investing too much in the
quality.
Gradually, management realized that good quality serves as the profit
in the long run. If company invests in the tools, methods or process to
produce a high-quality product; this results in satisfied and returning
customers. Eventually, the profit received through the increased quality
exceeds the incurred cost.
Therefore, the contemporary approach encourages to invest in
processes and tools to deliver quality products.
Responsibility of Quality Department versus Responsibility of Everyone

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In the traditional environment, employees were held responsible for
poor quality. A separate quality department was deemed responsible for
maintaining and controlling the quality of the produced output. As you can
relate, many software development teams following waterfall approach see
quality assurance team as responsible for delivering a bug free product. This
approach led many developers to leave known issues in the application, only
to be found out by testers and fixed later on.
On the other hand, the contemporary approach instills the
responsibility of quality into every team member. It operates on the principle
that every team member is responsible for the quality of work he is doing i.e.
business analyst will be responsible for documenting good requirements,
architects will be responsible for the architecture of application, developers
will be responsible for the quality of code and testers will be responsible for
the execution of testing process. Together, they all are responsible for
delivering a quality product.
If everyone contributes to the project taking quality into consideration,
a good quality product is likely to be developed. Yes, at the end of the day,
quality assurance engineers verify that the product conforms to the
customer requirements and free of bugs. Yet, anyone in the team cannot
simply alienate himself blaming the quality team for poor quality.
Why traceability is essential for the food and beverage industry
Traceability processes ensure that foods are traced and tracked
throughout the supply chain.
Traceability is vitally important for food safety as well as operational
efficiency. When it comes to the food and beverage industry, it’s all about
connecting the dots.
Traceability refers to the functions that trace the flow of foods
throughout the production, processing and distribution stages. With
traceability, it’s possible to locate a product at any stage of the food chain
and within the supply chain.
There are a number of reasons why traceability is an essential goal for
the food and beverage industry. Because of its essential role in maintaining
food safety, traceability requires producers to have sound, integrated
systems in place to ensure effective controls, both in day-to-day operations
but also in the case of a contamination or other safety issue.
Traceability components
Traceability consists of two distinct components: tracking and tracing.
Tracing creates a history of a product’s navigation throughout the entire

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food chain. Whether for a single unit or a batch, the tracing history provides
information about the product’s origin and its movements forward.

By contrast, tracking is the ability to pinpoint the destination of a


particular product, following its path through the food chain from the point
of manufacturing to the final point of sale or point of consumption. Like
tracing, the tracking can follow an individual unit or a batch.
Put another way, tracing looks backward to a product’s origin while
tracking looks forward to its destination.
Relevance to food safety
As the food supply chain becomes more complex and more global in
scope, the importance of traceability is greater than ever. Added complexity
means that you must have a system and process in place in case a food
safety issue occurs. If it does, traceability will help you pinpoint the source
of the issue and the scope of any potential incident.
With a good traceability product, your food company can be prepared
in the case of a potential issue, with visibility and transparency throughout
the food chain. When an incident occurs, traceability allows for a prompt
response, providing for diagnosis and mitigation.
Traceability also helps food processors, and in some cases entire
industries, to recover faster, restoring public confidence in the product,
company, industry, and food supply. Finally, traceability plays an important
role in future preventative measures that are put in place after an incident.
Food traceability system needs
Traceability comes down to systems that can meet the needs of an
increasingly dynamic food chain. Processes need to be standardized among
producers, suppliers, and distributors so that, in the case of an issue,
traceability can be a powerful asset in the diagnosis and recovery efforts.
To work effectively, your traceability system needs to be verifiable,
results-oriented, cost-effective and applied consistently and fairly.
At NexTec, we work closely with food and beverage processors to
provide the technology expertise and guidance needed to ensure traceability,
food safety, compliance with regulatory guidelines and confidence
throughout the food chain.
With extensive experience and knowledge of the strengths and
features of multiple food distribution software tools, NexTec consultants
work closely with our customers to find the right solutions.

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Modes of Delivery of goods
Delivery of goods may be made in any of the following three ways:

1. Actual Delivery: Also known as physical delivery, actual delivery takes


place when the goods are physically handed over by the seller or his/her
authorized agent to the buyer or his/her agent authorized to take
possession of the goods.
For example, A, the seller of a car hands it over to B, the buyer; it is a
case of actual delivery of the goods.
2. Symbolic Delivery: Where the goods are bulky and heavy and it is not
possible to physically hand them over to the buyer, delivery thereof may be
made by indicating or giving a symbol. Here the goods itself are not
delivered, but the means of obtaining possession of goods is delivered.
For example, delivering the keys of the warehouse where the goods are
stored, or the keys of a purchased car to its buyer, bill of lading which will
entitle the holder to receive the goods on arrival of the ship.

3. Constructive Delivery: In this case neither physical nor symbolic


delivery is made. In constructive delivery the individual possessing the
products recognizes that he holds the merchandise for the benefit of, and at
the disposal of the purchaser. Constructive delivery is also called
attornment.
Constructive delivery may be affected in the following three ways.
 Where the seller, after having sold the goods, agrees to hold them as
bailee for the buyer
 Where the buyer, who is already in possession of the goods as bailee
of the seller, holds them as his own, after the sale, and
 Where a third party, for example, a carrier/transporter, who holds the
goods, as bailee for the seller, agrees and acknowledges holding them
for the buyer

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SELF- CHECK 4.3-4
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Inspection is an attribute that can be ascribed to any product in
different contexts. In early ages, craftsmen who produce a product
were responsible for the quality of their products because the scale of
production was small.
2. Quality’ was one of the key elements in traditional quality
paradigm. The product was developed and after it is completely
developed, inspection was performed.
3. A separate quality department was deemed responsible for
maintaining and controlling the quality of the produced output.
4. Traceability is vitally important for food safety as well as operational
efficiency. When it comes to the food and beverage industry, it’s all
about connecting the dots.
5. Traceability also helps food processors, and in some cases entire
industries, to recover faster, restoring public confidence in the
product, company, industry, and food supply.
ENUMERATION;
Enumerate the 3 modes of delivery.

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ANSWER KEY 4.3-4
TRUE OR FALSE.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
ENUMERATION;
3 Mode of delivery of goods
1. Actual Delivery:
2. Symbolic Delivery:
3. Constructive Delivery:

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INFORMATION SHEET 4.3-5
ASSESS MARKETING OPERATION BASED ON MARKETING PRACTICES

Learning Objective:
After reading this information sheet you should be able to assess
marketing operation based on marketing practices.

INTRODUCTION:
Market analysis
The agripreneur needs to be confident about conducting market
analysis in order to determine market opportunities, market trends, growth
potential in the market, major challenges and opportunities and realistic
business opportunities in the market.
In order to conduct market analysis, the entrepreneur needs the
following skills:
 Critical thinking skills to identify challenges and market opportunities
and to analyze needs and product requirements;
 Decision-making skills to make decisions about opportunities in the
market;
 Problem-solving skills to identify complex problems and design
solutions;
 Coordinating skills to enable value chain actors to succeed together in
the market; and
 Communication skills to present market analysis results to partners
and customers.

Making decisions on market opportunities


Decision-making is the ability to make sensible choices on market
opportunities, which involves the skills of:
 Seeing the most important information quickly;
 Considering the positive and negative sides of each option;
 Selecting options and forecasting the outcome of each option or
alternative; and
 Rapidly deciding on the best option for the business.

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Calculation skills
Basic math skills are essential to all areas of agripreneurship and, therefore,
the agripreneur needs to be comfortable with:
 Adding;
 Subtracting;
 Multiplying;
 Dividing;
 Calculating percentages;
 Calculating fractions and decimals;
 Calculating averages; and
 Calculating area and volume.

Production operation
Production operation refers to all the activities involved in producing a
product, which requires the following skills:
 Managing and updating the production system;
 Short- and long-term planning in terms of what and how to produce;
 Making decisions in terms of the timing of production operations, e.g.
sowing according to soil conditions and seasons, sowing methods and
fertilizer levels;
 Selecting the right resource mix including varieties, agrochemicals
and use of labour to produce at optimal efficiency;
 Scheduling production processes;
 Operating farm machinery and equipment in some cases;
 Workflow management from selecting the input (e.g., seeds, fertilizers
and agro-chemicals) to the point of packaging and selling the product;
 Monitoring and evaluating the production operation; and
 Innovation to explore new ways of solving complex problems.
Managing equipment and labour
Agricultural businesses use equipment to produce crops or raise
animals. The agripreneur needs the following equipment management skills:
 Deciding on the right equipment use for the situation, e.g., ownership,
hiring services, renting, sharing or a combination of the options;

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 Considering the costs involved in equipment options, including
equipment housing, operating and repairing costs, fuel consumption,
interest on investments, taxes and insurance; and
 Assessing the performance of equipment.

Agripreneurship also requires labour—i.e., employees—and they need to


be managed. Therefore, the agripreneur needs the following labour
management skills:
 Human resource planning and recruitment;
 Employee training and development;
 Employee motivation;
 Payroll management;
 Performance management;
 Conflict resolution.
Human resource planning: The process where the
Agri-entrepreneur makes sure that they have the right
workers capable of completing specific tasks.
Recruitment: The process of finding workers to fill
vacant positions in the agri-business.
Conflict: A strong disagreement between individuals
or groups regarding ideas or interests that may result
in an argument.
Conflict resolution: The method of finding a solution
to a disagreement between two or more parties.

Marketing and sales


Marketing is central to any successful business, as it links the product to
the customer. The most important marketing skills for agripreneurs are:
 Interpersonal communication skills like active listening and verbal
communication skills;
 Strong written communication skills and the ability to present content
creatively;
 Influence, persuasion and negotiating skills; and
 Advertising and promotion skills;

Sales drive business success. The sales process has six basic steps:

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 Prospecting for new leads;
 Initial contact with the prospect;
 Presentation of sales materials;
 Objection handling;
 Closing the sale; and
 Follow up/after sales service.

Closing a sale is the most important sales skill to perfect. It is also the
most difficult area to overcome for people without a sales background.
The skills required to perform the sales function include:
 Prospecting skills;
 Written and verbal communication skills;
 Active listening skills;
 Influencing and persuasion skills;
 Presentation skills in order to make effective sales presentation; and
 Reporting writing skills in order to compile regular sales reports.

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SELF- CHECK 4.3-5
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Decision-making is the ability to make sensible choices on market
opportunities
2. Basic math skills are essential to all areas of agripreneurship and,
therefore, the agripreneur needs to be comfortable with: Adding;
Subtracting; and etc.
3. Opening a sale is the most important sales skill to perfect. It is also
the most difficult area to overcome for people without a sales
background.
4. Conflict resolution: The process where the Agri-entrepreneur makes
sure that they have the right workers capable of completing specific
tasks.
5. Human resource planning: The method of finding a solution to a
disagreement between two or more parties.

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ANSWER KEY 4.3-5
TRUE OR FALSE.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE

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INFORMATION SHEET 4.3-6
RECORD DETAILS OF MARKETING TRANSACTION AND KEEP AS
REFERENCE FOLLOWING INDUSTRY PRACTICE

Learning Objective:
After reading this information sheet you should be able to record
details of marketing transaction and keep as reference following industry
practice.
INTRODUCTION:
One of the first steps in being a successful farm manager is keeping
well-maintained, accurate records and establishing a sound record-keeping
system. Keeping accurate records has its benefits, like helping farmers plan
and complete realistic forecasting for the next year.
What is Farm Record Keeping?
Detailed farm record keeping is
crucial when making important
business or planning decisions for
your operation. Not only is it a poor
business practice to not keep records
of farming activities, but it can be
illegal not to keep your records in
order.
Farm records can include any of the following: expenses, labor,
chemical/pesticide tracking, harvest and yield records, planting records,
shipping records, FSMA and Global GAP compliance records, and more.
Traceability plays a huge role in practicing safe farming, as it is
always important to be able to look back and see the full history of product,
from planting to shipping. Keeping your records in good order will vastly
simplify this process, and make auditing season a breeze.

Why Keep Records:


At a minimum, growers must keep records to comply with legal
requirements for taxes and restricted chemical use applications, but
additional record keeping is a valuable tool. Many growers track their
expenses, from equipment runtime, to labor costs, to chemical and fertilizer
costs. Tracking labor, equipment, and chemical costs enable you to make
informed decisions when pricing your products to ensure greater profits.

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Financial record keeping
Financial record keeping is a key element in efficient farm and
agripreneurship management. Without reliable financial records, it is
impossible to determine the financial condition or profitability of a business.
Using financial records helps your client understand how and where their
business is going, identify the weak links in their business and enable them
to take corrective actions to address the weak links. In the following
sections, the different types of financial records are discussed.
Invoices
An invoice is evidence of a particular business transaction. The invoice helps
in recording expenses and the payment of expenses. Figure 27 is an
example of the information that should be recorded in an invoice.

Figure 27: Example of the information that appears on an invoice

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Receipts
 A receipt is a document that records the following information:
 The date and time of a particular purchase;
 Item(s) purchased and the number of items purchased;
 Purchase price and totals;
 Method of payment; and
 The name of location of the store or supplier where the purchase was
made.

Figure 28 is an example of a receipt.

Cash book
The cash book, which is one of the main financial records in any business,
reports on the cash that comes into the business (e.g., by means of product
sales) and the cash that is used to pay for daily items during a particular
period. The cash flow statement organizes and reports the cash generated
and used in the following four categories. Table 13 shows an example.
Date Item Cash in Cash out Balance
[Description
or invoice
number

Sales book

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The sales book records all credit sales made by a business, while the cash
sales are recorded in a cash book. Table 14 shows an
example of a page in a sales book.
Product
name
Date Customer Amount Value Invoice Payment
sold date date

Table 14: Example of a page in a sales book

Employment records
Employment records usually contain the following information on staff
members in your employment:
 Name, address and identification number;
 Dates of employment;
 Amounts of salaries or wages and benefits;
 Pension payments; and
 Income tax information or records.

Accounts and investment records


Farmers need to keep all their monthly bank account statements—at least
until the next monthly statement has come in. The account statements are
records of all the debits and credits. Investment records that should be kept
include bank investment account records, and any other investment records
that show how much your client has paid for an investment and how much
they have earned selling it (if they have sold it).

Bank account statement: A record or list of all the items that have
been processed through a bank account during a particular period
(usually a month).
Debit: Any transaction that lowers the balance on the bank account,
e.g., cash withdrawals, account payments and any other expenses.
Credit: Any transaction that increases the balance on the bank
account, e.g., cash deposits, account payments to you, etc.

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Selecting a record keeping system
There are numerous kinds of farm record keeping systems available on the
market. Before your client chooses a record keeping system, they should
research the different options. As an extension agent, you can help your
clients look for record keeping systems that fit their specific farm operations.
Keep in mind that an effective record keeping system is one that will provide
the necessary information when it is needed. You clients can use paper-
based records, Excel spreadsheets or other computer software and systems.
Paper-based records
Small farms and agripreneurship just starting out often find that paper-
based records meet their needs. The paper-based records are kept in
different folders in a filing system, with categories of related records being
kept in separate folders. The advantage of this system is that it is simple
and easy to use. The disadvantage is that the information is not always easy
to find especially if it not well organized and it may be difficult to access the
relevant records when your client needs them.
Excel spreadsheets
Using a basic Excel spreadsheet is essentially a compromise between paper
systems and more sophisticated record keeping software. If your clients are
running a small and relatively simple operation, Excel spreadsheets may
serve their needs well for many years.
Computer programs and systems
Computer programs and software that are being used at scale in developing
country value chains are Farm force and Source Trace, but there are many
other companies and start-ups offering new farming services. The following
are examples of computer programs and systems that can be used for record
keeping in agricultural businesses:
AgSquared
AgSquared is an online program that includes a set of planning,
management, record keeping, and analysis tools that work together to help
farmers run their farms more smoothly. It allows farmers to turn their
seasonal crop plan into a daily task list, which serves as the starting point
for their records. These records become the foundation for the next year’s
crop
plan.
Agroptima
Agroptima is a simple farm management program that allows farmers to
record their tasks and have an overview of their business.

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Farmforce
Farmforce has been created to help smallholders gain access to formal
markets and improve the effectiveness of out grower schemes. Formal
markets can increase the number of potential buyers for smallholder
produce but these markets require traceability and compliance to food
safety standards; something which has traditionally been challenging and
time consuming. Farmforce is helping to change the game by using mobile
technology to make traceability and compliance an integral part of
smallholder production and to redefine the relationship between growers,
manufacturers and markets.
MapShots AgStudio
AgStudio is agricultural software that farmers can use for:
 Crop record keeping
 Creating field planting maps;
 Tracking and analyzing income and harvest inventories;
 Performing in-depth data analysis
 Generating customized reports; and
 Tracking and logging harvest data anywhere.

Land Magic
Land Magic offers different web-based agriculture software products that
enable farmers to perform crop production management, land management
and harvest management.
Quicken
Quicken is an online personal finance management tool that is widely used
to keep financial records.
SourceTrace
SourceTrace systems specializes in agricultural software mobile applications
for developing countries with a primary focus on sustainable agriculture and
empowerment for smallholder farmers. SourceTrace farmer-centric mobile
applications help manage the agricultural value chain all the way along the
chain to enable smallholder farmers to participate in local and global
markets. SourceTrace mobile applications are scalable from small co-
operatives, farmer producer companies to large agribusiness corporations
and government agencies in the sustainable development sector.

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SELF- CHECK 4.3-6
TRUE OR FALSE.
Direction: Write TRUE if the statement is correct and FALSE if the
statement is wrong. Write your answer in a separate sheet .
1. Detailed farm record keeping is crucial when making important
business or planning decisions for your operation.
2. An invoice keeping is a key element in efficient farm and
agripreneurship management.
3. Financial record is evidence of a particular business transaction.
The invoice helps in recording expenses and the payment of expenses.
4. The cash book, which is one of the main financial records in any
business, reports on the cash that comes into the business (e.g., by
means of product sales) and the cash that is used to pay for daily
items during a particular period.
5. The sales book records all credit sales made by a business, while
the cash sales are recorded in a cash book
6. Credit A record or list of all the items that have been processed
through a bank account during a particular period (usually a month).
7. Bank account statement:: Any transaction that lowers the balance
on the bank account, e.g., cash withdrawals, account payments and
any other expenses.
8. Debit: Any transaction that increases the balance on the bank
account, e.g., cash deposits, account payments to you, etc.
9. Quicken is an online personal finance management tool that is
widely used to keep financial records.
10. SourceTrace systems specializes in agricultural software mobile
applications for developing countries with a primary focus on
sustainable agriculture and empowerment for smallholder farmers.

Date Developed:
CBLM in January 2022
AGROENTREPRENE
Developed by: Page 118 of 119
URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
SELF- CHECK 4.3-6
TRUE OR FALSE.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
6. FALSE
7. FALSE
8. FALSE
9. TRUE
10. TRUE

Date Developed:
CBLM in
January 2022
AGROENTREPRENE
Developed by: Page 119 of 119
URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
REFERENCES
 https://corporatefinanceinstitute.com/resources/knowledge/other/manufacturer/
 https://bostonpublicmarket.org/blog/322/what-is-a-public-market/#:~:text=A%20public
%20market%20is%20made,other%20products%20they%20made%20themselves.
 https://www.yourarticlelibrary.com/business/6-segmental-choice-criteria-used-by-
company-when-buying-products-from-supplier/13448
 https://www.lawinsider.com/dictionary/pricing-information
 https://journals.sagepub.com/doi/10.1509/jmkr.44.2.261
 https://www.trade.gov/pricing-strategy
 https://www.competitormonitor.com/blog/price-monitoring-strategy/
 https://en.wikipedia.org/wiki/Cost_accounting
 https://www.questionpro.com/blog/what-is-market-research/
 https://en.wikipedia.org/wiki/Volume
 https://www.britannica.com/topic/price-economics
 https://www.collinsdictionary.com/dictionary/english/buyer
 https://www.qualitydigest.com/magazine/2001/nov/article/definition-quality.html
 http://thelawstudy.blogspot.com/2015/12/different-modes-of-delivery.html
 https://en.wikipedia.org/wiki/Service_provider#Further_reading
 https://www.mach1global.com/trucking-services-a-domestic-shipping-guide/
 https://www.lawinsider.com/dictionary/warehouse-services#:~:text=Warehouse
%20Services%20means%20the%20storage,and%20delivery%20of%20those%20goods.
 https://www.lawinsider.com/dictionary/training-services#:~:text=Training%20Services
%20means%20instruction%20or,use%20of%20the%20Licensed%20Products.
 https://en.wikipedia.org/wiki/Training
 https://www.winnesota.com/news/coldstorage
 https://www.ama.org/2019/02/03/group-marketing-theory-mechanisms-and-dynamics/
#:~:text=Group%20marketing%20is%20the%20use,groups%20or%20somewhere%20in
%20between.
 https://bloomfire.com/blog/6-benefits-collaboration-marketing-sales-teams/
 https://intime.uni.edu/types-cooperative-learning-groups
 https://www.ampleon.com/about/general-terms-and-conditions-of-sale.html
 https://www.fda.gov/food/buy-store-serve-safe-food/selecting-and-serving-produce-
safely#:~:text=Wash%20all%20produce%20thoroughly%20under,Produce%20is%20porous.
 https://smallbusiness.chron.com/marketing-strategies-fresh-fruits-vegetables-66635.html
 https://reqtest.com/testing-blog/guide-deliver-quality-product-satisfy-customers/
 https://accountlearning.com/delivery-of-goods-meaning-modes-of-delivery/#:~:text=Modes
%20of%20Delivery%20of%20goods&text=Actual%20Delivery%3A%20Also%20known
%20as,take%20possession%20of%20the%20goods.&text=Constructive%20delivery%20is
%20also%20called%20attornment.

Date Developed:
CBLM in
January 2022
AGROENTREPRENE
Developed by: Page 120 of 119
URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania
 file:///C:/Users/user/Downloads/GFRAS_NELK_M11-Agricultural_Entrepreneurship-
Manual.pdf

Date Developed:
CBLM in
January 2022
AGROENTREPRENE
Developed by: Page 121 of 119
URSHIP NC II
Caren Grace Justo-
Market Produce
Alibania

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