Marketing- Making it Work for You

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Marketing- Making it Work for You
Ginger S. Myers Extension Marketing Specialist
and Director , Maryland Rural Enterprise
Development Center University of Maryland
Extension 310-432-2767 gsmyers_at_umd.edu
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Defining Marketing Options
1.What will it realistically take to achieve your
goals from a resources perspective? 2. How long
will it take?
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Starting Places Wholesale or contract
Hybrid- contract, group sales, some
differentiation Direct markets-primary Develop
a Marketing Mix
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Overview What is direct marketing? Driving
forces underlying growth in DM. Benefits to
producers and consumers. Prospects for your
future.
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What exactly is direct marketing?
Direct marketing involves selling agricultural
products directly to the consumer (e.g. PYO,
roadside stands, farmers markets, ecommerce, etc.)
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Driving Forces Behind Direct Marketing
Dissatisfaction with low farm gate prices.
Retail buyer consolidation. Urban sprawl.
Consumer interest in food safety
origin. Increased emphasis on convenience and
value added (less volume purchasing).
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Farmers Share of the Food Dollar
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Benefits of Direct Marketing to Farmers
CAN PROVIDE Alternative income streams. Helps
to preserve small farms. Outlet for
organic/specialty niches. Capture greater share
of consumer dollar. Able to be their own
boss/do their own thing less dependent on
wholesale.
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Direct Markets

• Pick-Your-Own
• Can work for seasonal produce like berries.
• Have a phone with an answering machine that gives
  prices and operating hours.
• Provide an educational setting for small
  children.
• Display clear signs with rules and prices

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Direct Markets
Agri-Tourism
Inviting the public onto the farm. Agritourism
can take many forms including retail sales, hay
rides, corn mazes, pick-your-own operations, and
use of woodlands on farms for hunting, hiking,
horseback riding, and other activities. There may
be educational components including programs for
schoolchildren and elderhostel tours, as well as
exhibits and demonstrations tailored to specific
visitor groups. Farms may combine retail sales
and tours with accommodations such as bed and
breakfasts and farm-stays.
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Direct Markets

• Farm Stands and Roadside Markets
• Location is everything.
• Successful when it features one or two
  high-demand items (watermelon,sweet corn).

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Direct Markets
Farmers Markets
There were 76 Farmers Markets in Maryland in
2008. Markets are in every county and the City of
Baltimore. Instant feedback on your products.
Opportunity for on-the-job training.
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Direct Markets
Community Supported Agriculture
CSA- Involves a single farmer, sometimes a group,
selling shares or subscription at the
beginning of the season and then delivering (or
providing for pick-up) baskets of whatever is
produced.
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Direct Markets
Specialty Markets

• Ethnic produce.
• Have a commitment from potential buyers before
  growing the product.
• Must be able to consistently supply product.
• Sales to Restaurants
• Talk to chefs and specialty buyers before growing
  the crop.
• Pre-processed produce may be required.

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Do I Need a Website?

• Not having a website is like not having a
  telephone.
• Use to tell your story.
• Map, hours of operation, directions.
• Sign-up, newsletters
• Internet sales?

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Getting Started

• Think outside the box- Just because you dont
  grow something now doesnt mean you cant grow it
  in the future.
• Go to local farmers markets and see whats
  there( and whats not there).
• Talk to contacts and see if local chefs are
  buying local products.
• Consider tourism outlets.
• Talk to other producers to hear what has worked
  and what hasnt.
• Contact Extension, NRCS, etc regarding the
  prohibitive potential of your property.

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SWOT Analysis

• Strengths and Weaknesses- usually internal
  factors that you can control.
• Opportunities and Threats- Usually external
  factors you cant control
• Understanding trends, customer buying hot
  buttons and industry issues is your best Risk
  Management tool for dealing with EXTERNAL
  Factors.

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Keys to Direct Marketing Success

• Focus on values and set your prices accordingly.
• Know what customers in your area want.
• Seek unique varieties of stand crops or unique
  experiences for agritourism.
• Develop a marketing plan and revise as needed.
• Communication is critical.Learn from others.

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More Getting Started

• Think about what you grow or produce well
  (quality is critical for direct marketing)
• Decide which market(s) work best for you (have a
  plan).
• Check out any regulatory requirements for
  marketing your product(s).
• Think about your story. What makes your product
  unique?.
• RUN THE NUMBERS.

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Cautionary Notes

• Niche/cache marketing is not a panacea
• for production agricultures problems.
• Less capital intensive is not the same as
• less management intensive.
• Land-use regulations may limit added value
• enterprises and entertainment, yet
• these activities may be necessary to justify
• Higher land-related costs.

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