Direct marketing from producers to consumers: Economic ... - Favv

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Benefits and costs in direct marketing � Labour requirements associated with certain types of direct marketing might be very substantial, e.g., farm shop, farmers’ market, roadside stand require significant amounts of labour � Whereas labour costs do not appear in a cash flow analysis, it is an economic cost � Differs across channels � Moreover, even when not a cash cost, labour requirements might have indirect effects on cach income � Time spent in the farm shop cannot be spent on the field � Labour flexibility is reduced Labour 20
Benefits and costs in direct marketing Fixed nature of many specific marketing costs � Price should be compared with specific marketing costs per additional unit of output sold on that marketing channel � However, quite a lot of specific marketing costs related to direct marketing have a fixed nature, which means they don’t get smaller as sales decrease � These costs are incurred, whether you sell a lot or little, hence, when sales are low, specific marketing costs per unit sold might be that high that they offset the higher price received 21
Page 1 and 2: Direct marketing from producers to
Page 3 and 4: Background ILVO � ILVO conducts m
Page 5 and 6: Background 5
Page 7 and 8: Introduction Direct marketing from
Page 9 and 10: Introduction Observations � A lot
Page 11 and 12: The basic model : theory 11
Page 13 and 14: The basic model : theory Income: Th
Page 15 and 16: The basic model: theory Income: The
Page 17 and 18: Benefits and costs in direct market
Page 19: Benefits and costs in direct market

Direct marketing from producers to consumers: Economic ... - Favv

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