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Tuesday, 19 July 2011

What is the importance of cooperative marketing and discuss its problems and suggestions to improve it?


Cooperative Marketing :-

A co-operative marketing society is basically a trading firm. All the members of the co-operative marketing society sell their product through society.


IMPORTANCE OF COOPERATIVE MARKETING :-
The importance of cooperative marketing society can be judged by the following facts.

1. Proper Reward of Production :-
Bargaining power of society is greater than the single farmer. So a farmer will get the fair reward of his product.

2. Storage Facility :-
A co-operative marketing society will also provide the facility of storage to its members. The resources of the society will be adequate to provide this facility.

3. No Middleman :-
The major benefit of this co-operative marketing society is that a farmer will save himself from the middleman. So the income of the framer will increase and his economic condition will improve.

4. Elimination of Speculation :-
A co-operative marketing agricultural product and eliminates the speculation and wastage of product.


PROBLEMS OF CO-OPERATIVE MARKETING :-
Following are the main problems of the co-operative marketing :

1. Lack of Finance :-
The co-operative marketing society is facing the problem of finance in developing countries. The member of the society advance the money to the society to increase the volume of business. The co-operative marketing society does not have adequate resources to meet the requirements.

2. Small Scale :-
The co-operative marketing society operates on small scale, because its volume of business is small. So it can not meet the needs of the members.

3. Ineffective Administration :-
The qualified managers can not be employed by the society and the performance of the administration remains poor.

4. Delay in Marketing Decision :-
The working of the co-operative marketing society is also affected badly by the delay in decisions because it takes sometimes to call the meeting and consulting the members.

5. Lack of Storage and Transport Facilities :-
The above facilities are necessary for the efficient operation of the shops. The market societies usually do not have adequate storage and transport facilities.

6. Poor Performance of Shops :-
The co-operative marketing shops performance is very poor and they do not pay the money to the farmers in time.

7. No Co-Operation :-
The members of the society are not co-operative minded. So it is the major cause of the failure of co-operative marketing.


SOLUTIONS :-
The problems of co-operative marketing can be solved by adopting the following measures :

1. Credit Facility :-
In order to increase the business volume of the society, government should provide the finance facility to the society. In this way society can increase the scale of business.

2. Services of Qualified People :-
The co-operative marketing society should hire the services of trained and qualified managers to improve the performance of the society.

3. Transport Facility :-
The government should provide the transport facilities like roads to link the rural areas with the markets. It will encourage the society members.

4. Spirit of Co-operation :-
The members of the society should increase the spirit of cooperation among them.

5. Standardization :-
The cooperative societies should pay special attention to the grading and standardization of the crops.

6. Improvement In Storage Facility :-
The cooperative marketing society should provide the maximum storage facilities to the farmers to save the wastage of crops.

1 comments:

fragrances for women 20 January 2012 02:43  

Marketing IS a long term investment.

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