ECONOMIC ASPECTS OF ADVERTISING IN AGRICULTURE: A REVIEW / Ekonomiese aspekte van advertensiewese in die landbousektor: 'n Oorsig

Abstract

In a dynamic world of change, promotion of agricultural commodities will inevitably become more important, particularly with respect to intensification in the nature of competition, the complexity in distribution and differences between consumer and producer prices. The impact of advertising as a means of promoting agricultural commodities, have to be evaluated in terms of consumer response and the effectiveness of advertising agricultural products, by assuming that advertising can increase the level of sales at any given price by Shifting the demand curve for a specific product to the right, or increase the price or both. Although South Africa is a part of Africa, it has a highly developed and sophisticated marketing structure which necessitates the analysis and decomposition of foreign advertising research done in Europe and America for possible application in South Africa, due to the virtually non-existence of research on generic or brand advertising of agricultural products in South Africa. Empirical research on the effects of advertising generally indicates a positive effect on sales that continues beyond the time of initial advertising. Most analyses considering the effect of advertising on consumer demand for agricultural commodities have pragmatically focused on single-equation demand relations using aggregate data. However, limitations of the single equation approach exists. In general, empirical evidence shows that brand advertising is more efficient than generic advertising.

Uittreksel

Promosie van landboukommoditeite sal onafwendbaar belangriker word in 'n dinamiese wereld, veral met betrekking tot intensifikasie in die aard van mededinging, die kompleksiteit van landboubemarking en die verskille tussen produsente- en verbruikerspryse. Die impak van advertensies as 'n metode om landboukommoditeite te bevorder, behoort ontleed te word aan die hand van die verbruiker se vraag, sowel as produsente se aanbodreaksies, met die aanname dat advertensies die vraag na 'n spesifieke produk sal laat toeneen, dat dit pryse sal laat styg of beide. Alhoewel Suid-Afrika deel is van Afrika het dit 'n hoogs ontwikkelde en gesofistikeerde bemarkingstruktuur. Dit noodsaak die ontleding en bestudering van navorsing gedoen in Europa en Amerika vir moontlike toepassing in Suid-Afrika, weens die gebrek aan navorsing oor generiese of handelsmerk advertensies in Suid-Afrika. Oor die algerneen is daar deur empiriese navorsing bevind dat deur te adverteer, verkope positief beïnvloed kan word en dat die reaksie op die advertensie verder strek as slegs die blootstel-lingstydperk. Die meeste ontledings van die effek van advertensies op verbruikersvraag is pragmaties op enkelvoudige vraagfunksies toegepas met saamgevoegde data. Die enkelvergelyking benadering het egter beperkings. Oor die algemeen is bevind dat generiese advertensies van landbouprodukte minder effektief is as advertensies gekoppel aan 'n spesifieke handelsmerk.