Agricultural Economics V (Agricultural Marketing and Organisations)

Definition of Market
Marketing Definition and Functions

By the end of the lesson, the learner should be able to:
Define the term market as an institution for exchange of goods and services. Distinguish between a perfect and an imperfect market.

Q/A on students' understanding of buying and selling. Teacher explains market as institution where buyers and sellers carry out business transactions. Discussion on perfect market conditions where any buyer can purchase from any seller at same prices versus imperfect market characteristics.

Charts showing market scenarios, local market examples
Marketing flow charts, local examples

KLB Secondary Agriculture Form 4, Page 126

Agricultural Economics V (Agricultural Marketing and Organisations)

Monopolistic Competition
Oligopoly and Monopsony

By the end of the lesson, the learner should be able to:
Identify features of monopolistic competition in a market.

Study five features of monopolistic competition: existence of few sellers, varying product quality from firm to firm, products are close substitutes, perfect product differentiation, single seller may dominate due to technological superiority. Students give local examples.

Market structure diagrams, business examples
Market comparison charts, case studies

KLB Secondary Agriculture Form 4, Page 126

Agricultural Economics V (Agricultural Marketing and Organisations)

Definition and Law of Demand
Demand Schedule and Curves

By the end of the lesson, the learner should be able to:
Define the term demand. State and explain the law of demand.

Study demand as quantity of goods consumers are willing and able to buy at specific price in given market and time. Examination of Figure 6.1 showing inverse relationship between demand and price. Discussion on difference between demand and want, effective demand concept.

Figure 6.1 from textbook, demand examples
Graph paper, rulers, sample demand data

KLB Secondary Agriculture Form 4, Pages 127-128

Agricultural Economics V (Agricultural Marketing and Organisations)

Factors Influencing Demand
Elasticity of Demand

By the end of the lesson, the learner should be able to:
State factors affecting demand for a commodity.

Study ten factors affecting demand: population, income, preferences and tastes, prices of related goods, advertisement, beliefs customs and taboos, price expectation, level of taxation, perishability, future expectations. Discussion using local agricultural examples like milk, eggs, meat.

Examples of local agricultural commodities, factor charts
Calculators, textbook examples, calculation worksheets

KLB Secondary Agriculture Form 4, Pages 129-130

Agricultural Economics V (Agricultural Marketing and Organisations)

Types of Elasticity of Demand

By the end of the lesson, the learner should be able to:
Identify types of elasticity of demand. Illustrate elastic, inelastic and unitary demand graphically.

Examination of Figures 6.3, 6.4, 6.5, and 6.6 showing elastic, inelastic and unitary demand segments. Students practice drawing different elasticity curves and identifying characteristics of each type. Analysis of total revenue test for measuring elasticity.

Figures 6.3-6.6 from textbook, graph paper, rulers

KLB Secondary Agriculture Form 4, Pages 130-133

Agricultural Economics V (Agricultural Marketing and Organisations)

Factors Affecting Elasticity of Demand

By the end of the lesson, the learner should be able to:
State factors affecting elasticity of demand.

Study six factors determining elasticity: availability of substitutes, degree of necessity, number of uses a product can be put to, time lag, time span, proportion of expenditure. Discussion using examples like table salt versus luxury commodities. Students classify local commodities by elasticity type.

Local commodity examples, classification charts

KLB Secondary Agriculture Form 4, Page 133

Agricultural Economics V (Agricultural Marketing and Organisations)

Supply Definition and Law

By the end of the lesson, the learner should be able to:
Define the term supply. State and explain factors affecting supply of a commodity.

Study supply as quantity producers are willing to sell at specified prices in given market and time. Examination of Figure 6.7 showing direct relationship between price and supply. Study Table 6.1 supply schedule for meat. Analysis of ten factors affecting supply including number of sellers, technology, weather, government policy.

Figure 6.7, Table 6.1 from textbook, supply examples

KLB Secondary Agriculture Form 4, Pages 133-135

Agricultural Economics V (Agricultural Marketing and Organisations)

Elasticity of Supply

By the end of the lesson, the learner should be able to:
Define elasticity of supply. Calculate elasticity of supply.

Study elasticity of supply as degree of responsiveness to price change. Practice calculating Es using textbook millet example: price change from Ksh 10 to Ksh 12 with supply change from 400kg to 600kg. Students practice calculations and interpret results.

Calculators, textbook examples, calculation worksheets

KLB Secondary Agriculture Form 4, Page 135

Agricultural Economics V (Agricultural Marketing and Organisations)

Price Theory and Market Equilibrium

By the end of the lesson, the learner should be able to:
Explain how market prices are determined.

Study price as amount of money paid for goods or services. Examination of Figure 6.9 showing demand-supply relationship in determining equilibrium price. Discussion on price control, government intervention, and liberalization effects on agricultural commodity pricing.

Figure 6.9 from textbook, price examples

KLB Secondary Agriculture Form 4, Pages 136-138

Agricultural Economics V (Agricultural Marketing and Organisations)

Marketing Functions

By the end of the lesson, the learner should be able to:
Outline the functions of marketing.

Study eleven marketing functions: buying and assembling, transporting and distributing, storage, packing, processing, grading and standardisation, packaging, collecting market information, selling, financing, bearing of risks. Students relate functions to local agricultural marketing examples.

Charts showing marketing functions, local examples

KLB Secondary Agriculture Form 4, Pages 138-141

Agricultural Economics V (Agricultural Marketing and Organisations)

Marketing Organizations and Agencies

By the end of the lesson, the learner should be able to:
Outline the functions of wholesalers and retailers. Outline the functions of itinerant traders, broker agents and commission agents.

Study marketing organizations: wholesalers who buy in bulk and sell to retailers, retailers who sell to consumers in small quantities, itinerant traders who move place to place, packers and processors, commission agents, broker agents, co-operatives, marketing boards, auctioneers. Students identify local marketing agents and their roles.

Examples of local marketing agents, organizational charts

KLB Secondary Agriculture Form 4, Pages 141-143

Agricultural Economics V (Agricultural Marketing and Organisations)

Agricultural Organizations

By the end of the lesson, the learner should be able to:
Outline the functions of Kenya Sugar Authority, Horticultural Crops Development Authority, AFC, ADC, and KMC. Outline the principles of co-operatives. Cite examples of organizations that help farmers in marketing their produce.

Study functions of statutory boards: National Irrigation Board, NCPB, Kenya Sisal Board, Coffee Board, Pyrethrum Board, Cotton Board, Kenya Sugar Authority, HCDA, AFC, ADC, KMC. Examination of co-operative principles: open membership, equal rights, share limit, interest on shares, withdrawal rights, loyalty, education, non-profit motive. Study ASK, 4-K Clubs, Young Farmers Clubs, KNFP, agricultural women groups functions.

List of statutory boards, co-operative examples, youth organization materials

KLB Secondary Agriculture Form 4, Pages 143-150