2. Resources
• VT Direct Marketing Survey
– http://www.uvm.edu/farmpricing/
• Small Scale Food Processors Asso.
– http://www.nyssfpa.com/index.html
• Marketing Your Business
– http://extension.psu.edu/farm-
business/farmentrepreneurs/marketing
• Northeast BF Written Resources
– http://nebeginningfarmers.org/publications/
3. Additional Resources
• Do-It-Yourself Guide to Market Research
– http://www.agmrc.org/media/cms/UofGeorg
iaorg_7EE4EE6C3DABF.pdf
• NY MarketMaker
– http://ny.marketmaker.uiuc.edu/
• Local Harvest
– http://www.localharvest.org/
4. What is Marketing?
• The act or process of selling or
purchasing in a market.
• An aggregate of functions involved in
moving goods from producer to
consumer.
5. Any production with out effective market
strategy will not bring a rewarding return.
6. Define Customer
need
Check on
Satisfaction level Id how to meet
that need
Marketing
Deliver Cycle
Product Finding your unique
selling position(s)
Communications
(Promotion)
7. 3 Generic Marketing Strategies
Each has benefits or reasons for
selecting a particular marketing strategy,
You must determine which works best for
your business.
8. • Cost leadership (Wal-Mart)
– “For the quality, we are the cheapest”
• High volume sales
• Low cost relative to competition
• Cost maximization practices
• Differentiation (Harry and David)
– “There is something really special about us…”
• Create perception that you are unique
• Strong marketing skills
• Focus or Niche Strategy (variation of
Differentiation)
– “We only cater to one segment of the market…”
• Ability to really understand customer need
• Willing to let your customer have a lot of say re: your
product
Generic Strategies - Michael Porter (1980)
9.
10. Fundamentals of Marketing
• Product
• Place
• Price
• Promotion
• People
• Producer
Anytime one of these “P’s”
changes, it should trigger
a review of all the other
“P’s”
14. Price
• What is the value of
your product?
• What are your costs?
– Start Up
• Licensing
• Label design and printing
• Bar code
• Research and
Development
• Insurance
• Business Formation
• Facility and Equipment
15. On going Operational Costs
• Rent, mortgage, utilities
• Raw materials
• Packaging
• Label reprinting
• Insurance, taxes
• Legal and professional assistance
• Labor
• Repair, maintenance
• Marketing expenses
• Shipping & Deliveries
16. Things to Ask
• What will the customer pay?
• What does the competition charge?
• What will the market bear?
• Can you make a profit?
23. Producer
• Share Your Food and Farm Story
• Producer must be knowledgeable
• Provide Good Customer Service
• Communicate well with consumers
• Ask consumers questions and listen to
the recommendations on improving the
product
27. After your research, you
should be able to answer:
• Who is your customer, who is your
competition and what is your production
potential?
• Leading to:
– What is my market potential?
Then as the next step, moving on to develop
effective marketing strategies
28. Describe Your Customers and
Marketplace
• How big is the market in terms of customers?
• What is your customers age, income, buying
preferences and habits?
• Who are your competitors, size of the market?
• Your industry history, trends, future growth?
• Periodically use to update knowledge about
target customers
31. Competition
• Who are your main competitors?
• How is their business…growing?
• How does your product compare to
competition?
• How does your unique selling point
compare?
• What do you know about their operation?
32. What do the Big Guys Do?
• Assess their strengths and weaknesses
• Develop a strategy
• Product concept (trends, needs)
• Develop and Test prototype
• Test market
• Evaluate business and technical aspects
• Introduce and market
33. Smart Considerations
• Can react quickly to new market trends
• Can try new products economically
• No stockholders or BOD to report to
• Can fill niche products needs not met by
big companies
• Need to work smarter, not harder
34. Doing Your Homework:
• Is there a need for your product?
Deciding not to produce a product after
market research shows a limited market is
a good outcome!
“Fail Small, Fail Early”
35. Principals for Marketing
Success
• Focus – keep the customer in mind
• Positioning – unique selling point
• Demonstrations sell
• Advertising – focus on product advantage
• Distribution – product on shelves to satisfy
consumers needs
• Promotion – to increase in store display
36. Contact Information
Steve Hadcock
Capital Area Ag. & Hort. Program
479 Route 66
Hudson, NY 12534
518-828-3346
seh11@cornell.edu
Editor's Notes
Marketing is EVERYTHING you do to promote your business, from the moment you conceive of it to the point at which customers buy your product or service and begin to patronize your business on a regular basis. The key words to remember are everything and regular basis . Jay Conrad Levinson (“Guerrilla Marketing”)
Market Cycle: Start with define Customer need. identify what the need is Identify how to meet that need What sets your product apart or above all others? Communication: getting the word out. Deliver the product (placement – where can your customer get your product?) Check on the satisfaction level—what do you have over “big” producers? Is there a relationship with your customers? Repeat customers vs. one-time shoppers.
(presenter: go through this slide, if you have internet access visit the Wal-Mart and Harry & David websites to highlight the differences between these two companies) Cost leadership – see Wal-Mart website Differentiation—see Harry & David Website Focus—Harry & David
The keys or fundamentals of marketing are often referred to the “P’s” of marketing. Some say there are 4 P’s of marketing others say there are 9, I put it in the middle and say there are 5 P’s of marketing. Product, Place, Price, Promotion and of course People.
must provide the consumer with something they perceive to have VALUE Identify and understand the product/service being marketed What am I going to Market? Sell benefits not just products
Think about your product from the perspective of your Target Market.
is WHERE the customer will purchase your product & how it gets there. Use a Variety of Outlets to Sell Products Distribution strategy -national, regional, international Channels of distribution -self -broker -distributor Co-marketing arrangements with other companies -grocery Gift shops -internet -friends
is WHAT YOU DO to make the connection between your product & the buyer.
WHO will buy your product Target consumer demographics (age, gender, location, education, occupation, income level, household type, marital status Marketmaker http://nymarketmaker.cornell.edu/ Be conscious of psychographics (needs, values, buying styles, cultures, interests)
As your customers needs change, you need to change with them. Based on the 6 P’s of Marketing, every business needs to develop a marketing plan which outlines marketing goals (SMART), strategy, implementation activities and designates who is responsible for sales and marketing . Keys to a Great Marketing Plan involve: Doing your homework Setting goals Write it, revise it, revise it and revise it again. Schedule time to revisit it Goals should be SMART (Specific, Measurable, Acceptable, Realistic and Timed)
Major Food Industry Trends “ Our food system is changing from bringing the consumer to the food, to bringing the food to the consumer” Source: Food Products for a Changing Marketplace
