Yellow Pages. Web site. Patterns or habits your customer

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Marketing Your Food Product
2007

• Adapted from www.sba.gov/

Module designed by Tera Sandvik, LRD, Program
Coordinator Julie Garden-Robinson, PhD, LRD,
Food and Nutrition Specialist and Kathleen
Tweeten, MBA, Director, Center for Community
Vitality, Community Economic Development
Extension Specialist
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The following tips will help you navigate through
each module.

• Click the left mouse button or the down arrow to
  continue on to the next bullet or slide.
• Before you begin, youll take a presurvey.
• The presurvey will open in a new window.
• When you are finished with the presurvey, close
  the window to return to the module.
• A symbolizes a question slide. Youll need
  to click your mouse once to see the answer.

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• A means youll need to go to the site listed
  to answer the question.
• After visiting the site, close the Internet
  browser to return to the module.
• Click your mouse once to see the answer.
• When you are finished with the module, you will
  take a post-survey.
• The post-survey will open in a new window.
• When you are finished with the post-survey, close
  the window to return to the module.

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Presurvey

• Before we begin, lets take a presurvey to see
  how much you already know.
• Click here to begin the presurvey.

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Who's going to buy it?
Where should I sell it?
What will they pay for it?
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Do you have a new, exciting product?

• If you do, thats great, but keep in mind
  businesses need more than a great product to
  be successful.
• A high percentage of home-based food businesses
  fail their first year because they didnt
  have a market to support their product.

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Lets learn about marketing basics
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• Marketing is based on the importance of customers
  to a business and has two important principles
• All company policies and activities should be
  directed toward satisfying their customer wants
  or needs.
• Profitable sales volume is more important than
  maximum sales volume.

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How do I use these principles?

• Find your customer wants or needs through market
  research.
• Analyze your competitive advantages to develop a
  market strategy.
• Select specific markets to serve by target
  marketing.
• Determine how to satisfy customer needs by
  identifying a mix of products (market mix) they
  want.

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Marketing Strategy

• A marketing strategy identifies target customers
  that a particular business can better serve than
  its competitors, and tailors product offerings,
  prices, distribution, promotional efforts and
  services toward those target customers.
• The strategy should address unmet customer needs
  that offer adequate potential profitability.
• A good strategy helps a business focus on the
  target markets it can serve best.

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Target Marketing

• Owners of small businesses often have limited
  resources to spend on marketing.
• Concentrating their efforts on one or a few key
  market segments - target marketing - gets the
  most return from small investments.
• These are two main methods used to segment a
  market
• Geographical
• Customer

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Geographical Segmentation is

• Specializing in serving the needs of customers
  in a particular geographical area.
• For example, a neighborhood convenience store
  may send advertisements only to people living
  within one-half mile of the store.

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Customer Segmentation is

• Identifying those people most likely to
• buy the product or service and targeting
• those groups.

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There are two main methods to segment a market.
Do you know what they are?

• Click to see the answer.
• Geographical and customer

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What type of segmentation is the following
example?

• A local pizza place puts fliers in everyones
• mailbox within a one-mile radius of the pizza
• place.
• Geographical
• Customer

Click to see the answer.
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Managing the market mix

• Every marketing program contains four key
  components
• Products and services
• Promotion
• Distribution
• Pricing

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Products and Services

• Product strategies may include
• Concentrating on a narrow product line
• Developing a highly specialized product or
  service
• Providing a product-service package containing
  unusually high-quality service

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Promotion

• Promotion strategies include advertising and
  direct customer interaction.
• Good salesmanship is essential for small
  businesses because of their limited ability to
  spend on advertising.
• Good telephone book advertising is important.
• Direct mail is an effective, low-cost medium
  available to small businesses.
• Web presence may be an important and effective
  part of a successful strategy

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Pricing

• The right price is crucial for maximizing total
  revenue.
• Generally, higher prices mean lower volume and
  vice versa.
• Small businesses often can command higher
  prices because of their
  personalized service.

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Distribution

• The manufacturer and wholesaler must decide how
  to distribute their products.
• Working through established distributors or
  manufacturers' agents is generally easiest for
  small manufacturers.
• Small retailers should consider cost and traffic
  flow in site selection, especially since
  advertising and rent can be reciprocal
• A low-cost, low-traffic location means spending
  more on advertising to build traffic.

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Distribution Cont.

• Products/services, promotion, pricing and
  distribution combine into an overall marketing
  program.
• The nature of the product or service is also
  important in citing decisions.
• Purchases based on impulse should be in a
  high-traffic and visible area.
• Location is less of a concern for products or
  services that customers are willing to go out
  of their way to find.

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Distribution Cont.

• The availability of fast shipping and highly
  segmented mailing lists, developed or purchased
  from list brokers, magazines or other companies,
  has enabled certain small businesses to operate
  from any location, yet serve national or
  international markets.

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Which of the following is not one of the key
components to a marketing plan?

• Pricing
• Promotion
• Distribution
• Planning

Click to see the answer.
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Marketing Performance

• Entrepreneurs must evaluate their marketing
  program.
• Every program should have performance standards
  to compare with actual results.
• Researching industry norms and past performances
  will help develop appropriate standards.

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• Entrepreneurs should audit their company's
  performance at least quarterly. The key questions
  are
• Is the company doing all it can to be
  customer-oriented?
• Do employees ensure the customers are satisfied
  and leave wanting to come back?
• Can the customer easily find what he or she wants
  at a competitive price?

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Lets move on to our marketing plan.

• A sound marketing plan is key to the success of
  any business.
• Marketing plans include
• Market research
• Location
• Customer group you have targeted
• Competition
• Positioning
• Product and service you are
• Selling
• Pricing
• Advertising
• Promoting

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Positioning your product is defined as

• Pricing your product higher than its competition
• Pricing your product lower than its competition
• Creating a unique, consistent and recognized
  customer perception about a firm's offering and
  image
• None of the above
• Click here to help find the answer.

Click to see the answer.
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Marketing, planning and promoting

• Begin with current information about the
  marketplace.
• Visit the local library.
• Talk to customers.
• Look at other businesses advertising strategies.
• Consult with relevant industry associations.

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Write down your plan

• Define your business
• Whats your product or service?
• Where are you selling your product or service
  (neighborhood, regional or national)?
• Whos your competition?
• How are you different from the competition?
• Whats your price?
• How do your competitors market their product?
• What are your promotion methods?
• How are you going to distribute your product or
  where will your business be located?

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Define your customer

• Who is your customer?
• Age
• Sex
• Income
• Neighborhood
• How will your customers learn about your product
  or service?
• Advertising
• Direct mail
• Word of mouth
• Yellow Pages
• Web site

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Newsweek

• Patterns or habits your customers and potential
  customers share
• Where they shop
• What they read, watch and listen to
• Qualities your customers value most about your
  product or service
• Selection
• Convenience
• Service
• Reliability
• Availability
• Affordability
• Qualities your customers dislike about your
  product or service

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Define your plan and budget

• Know previous marketing methods used to reach
  your customers.
• Know methods that have been effective.
• Know cost compared to sales.
• Know cost per customer.
• Research possible future marketing methods to
  attract new customers.
• Figure out what percent of profits you can use
  for your marketing campaign.

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Examples of marketing tools

• Newspaper
• Magazine
• Yellow Pages
• Radio or television advertising
• Internet
• Direct mail
• Telemarketing
• Public relations activities

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The final stage in your marketing plan shouldbe
your overall promotional objectives

• To communicate your message
• To create an awareness of your product or service
• To motivate customers to buy and increase sales

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Post-survey

• Lets see what youve learned.
• Click here to begin the post-survey.

• The last slide shows additional resources.
• After the slideshow is done go to File and
  click on Print.
• A box will open up.
• Click on Slides under Print Range.
• Type in 36 and click on okay.

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Additional Resources

• Marketing plan outline
• www.bplans.com/targetonline/index.cfm?sspecsid4
  affiliatesba
• Marketing strategies for the growing business.
• http//www.sba.gov/smallbusinessplanner/manage/mar
  ketandprice/SERV_MARKETSTRATEGY.html
• Marketing Plans
• http//www.bplans.com/targetonline/index.cfm?sspe
  csid4affiliatesba