In order to nurture “Specialized Marketing Organizations in Producing Areas”, the Korean government provides them with funds for marketing expenses at low interest rates of three percent for three years. Government funds can be used as operating f...
In order to nurture “Specialized Marketing Organizations in Producing Areas”, the Korean government provides them with funds for marketing expenses at low interest rates of three percent for three years. Government funds can be used as operating funds, such as cash in advance to producers, purchase funds, and maintenance expenses for distribution facilities. In this article, marketing programs carried out by specialized marketing organizations are evaluated by surveying buyers of large-scale retail firms and auctioneers of wholesale markets. The buyers and auctioneers evaluate marketing practices of agricultural cooperatives in producing areas to improve a little but not significantly. Since the cooperatives are poor in carrying out advertising and sales promotions, they have to spend more resources on advertising and sales promotions. In addition, the coopera- tives have to strengthen expertise of sales force, to improve packaging of products, and to have an ability to fill urgent orders and to handle claims effectively.