Question

Give a brief account of cooperative marketing.

Answer 1

What is Cooperative marketing?
Cooperative marketing is people helping people or companies helping companies. Usually its when individuals, whole sellers, retailers or companies come together combine their marketing efforts to increase mutual benefits like reduced advertisement costs, economies of scale, fighting competition or increase the collective bargaining value to get a better price for their products or services.

A nice example of cooperative marketing can be seen in case of agriculture where farmers come together form a cooperative marketing society. They sell their surplus produce to the cooperative society which in-turn sells the produce directly to the end customer. In this manner the middlemen is eliminated, farmers get better price for their produce, the end customer gets better price as no middlemen involved, the transportation costs, advertisement costs, storage costs come down for the individual farmers as these costs are collectively borne by the cooperative society. Also the collective bargaining power of the farmers increases as they are no longer the price takers but the price makers.