marketing grass roots style
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Lara L. Worden
Area Agriculture Agent
NC State Cooperative Extension
Serving Catawba, Cleveland, Gaston, & LincolnCounties
Marketing
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What is Marketing?
Transactional Marketing transaction for profit a sale is one time event increased profits = increased sales &
lowered costs
Relationship Marketing
seeks to grow a business by cultivatingloyal, repeat customers and by word ofmouth advertising to help recruit newcustomers
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What is Marketing?
Marketing is EVERYTHINGyou do to promote your
business, from the momentyou conceive of it to the point
at which customers buy yourproduct or service and beginto patronize your business on
a regular basis.
The key words to rememberare everythingand regular basis.- Jay Conrad Levinson
Guerrilla Marketing
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What isDirect Marketing?
Direct marketing is sellingdirectly to the end consumer.
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The 4Ps and the 4Cs
The Marketing Mix
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The 4 Ps of Marketing
Productneeds to standout, why buy your product over someone
elses?Place
where you market is has as much to do with how youmarket
Price
cost of production, break-even analysis, competition,
what will the market bearPromotion
everything you do to sell your product; can mean thedifference between success and failure
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The traditional 4 Ps ofMarketing matter. They arethe four areas in which a
producer can make changes.But the challenge is to get
beyond them to the 4 Cs.
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The 4 Cs of MarketingWhat does the customer want???
Customer
Product =What thecustomer
wants/needs
Place =Convenience
Price =Cost to User
Promotion =Communication
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Customer WantsNot yesterdays buzz, but todaysor even tomorrows
i.e. Food Buying and Healthy Living Trends 2011 Local Food Rocks!
i.e. Rediscover the Butcher, the Baker, & theCheese Maker Fresh is Better! (follow Europeancounterparts)
i.e. Renewed interest in Food Preservation CanningComeback!
i.e. Chefs in Schools Serious about feeding our
youth healthier, better quality foods!The wrap-around, the bundle No confusion, no contradictions
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Farmers Market Growth:1994 - 2011
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Convenience to the Customer
When they want it, the waythey want it, how they want it
ready to use Time is a lot more than moneythese days
Beyond placement to instantaccessibility
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Cost the Value that theCustomer sees being met
Yes built onCosts/Competition/Communication/
Breakeven/What the market willbear, but
Can you express/sell the Benefit
of your product? (Benefit to thecustomer)
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Features vs. Benefits
FeaturesSize, Quality, Varieties, Price, Types,
Materials
BenefitsHealth, Convenience, Social Status,
Security, Time Savings
PEOPLE BUY BENEFITS, NOT FEATURES!
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CommunicationWhen is a tomato more than atomatoUnderstand and communicate back to thecustomer the attributes the customer islooking for;
Advertising and Word of Mouth matter
Display and Merchandising matter Image projection matters!!!
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Online Newsletters/Blogs
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Displays/Image Projection areImportant!
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1. Determine what people want (the new buzz;DO NOT produce what everybody already
has; e.g. produce in off season)
2. Find or create products that satisfy theirwants3. Select the most effective means of
communicating with people about the productand its benefits
4. Develop strategies that will create a desirefor the product in prospective customerswho have not actively expressed their wants
Where to Start???
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Defining the Market
1. Identify your customer profile2. Identify your market area
3. Determine the number of people inyour market area who potentiallymatch your customer profile.
4. Determine the market potential for
your business in your trade area.
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Customer Profile:DemographicsAgeGender
LocationEducationOccupation
Income LevelMartial StatusKids?
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Customer Profile: Psychographics
Needs and ValuesSecurity, esteem, love, acceptance, understanding,beauty, good health, status, success, simplicity, altruism
Buying StylesPrice, fads, quality, technology, luxury, convenience
CulturesModern, traditional, artistic, religious, liberal,conservative, environmentally aware
Attitude Towards Technology
Early/late adopter, passive or active, work or pleasure Interests
Sports, reading, fitness, cooking, travel, gardening,outdoors, online activities
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Age Subcultures
GI or WWII Generation (before 1933)accounts for 10% of population, mostly overage 79
Swing Generation (19341945) 12%; 67 to 78 Baby Boomers (1946-1964) 25%; 48 to 66
Generation X (1965-1976) 17%; 36 to 47
Millennial Generation (1977-1995) 25%;17 to 35
American Generationsby Susan Mitchell, 1998
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GI WWII Generation Born before 1933 10% population today In 2012: 79 years
plus
In 2015: 82 plus Characterized asfrugal spenders
Less likely to try newthings
Less formaleducation, but moreaffluent
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Swing GenerationBorn 1933 to 1945 Only 12% of population
In 2012: 67 to 78
In 2015: 70 to 82 Small segment caught
between two powerful
forces Some have prospered;
others have not
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Baby Boomers Born 1946 to 1964 25% of population In 2012: 48 to 66 In 2015: 51 to 69
Larger discretionaryincome; buy more saveless; health conscious
Largest generation,
raised by younger stayat-home mothers & Dr.Spock (Not Mr. Spock)
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Generation X
Born 1965 to 1976 17% of population
In 2012: 36 to 47
In 2015: 39 to 50 Well educated, event
or experience focused
Technology drivers Tend to be big spenders
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Millennial Generation Born 1977 to 1995 25% of population
In 2012: 17 to 35
In 2015: 21 to 38 Children of Baby
Boomers & Gen X
Most culturally diverse Busy, wealthy, the next
economic powerhouse
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Market Area & # of People
Eight Steps toIdentifying aMarketHandout
Use the Internet Google
Claritas
City-Data.com
U.S. CensusBureau
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You are Where You Live - CLARITAS
http://www.claritas.com/MyBestSegments/Default.jsp
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You Are Where You Live - CLARITAS
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CITY-DATA.COM
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Gastonia, NC
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Gastonia, NC
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Median Household Incomes in counties within 50miles
Union ($60,074)
Mecklenburg ($55,587)
Lincoln ($47,859)Gaston ($42,110)
Catawba ($43,303)
Cleveland ($37,889)
US Census, NC Quick Facts
Buying is a function of income
Focus in
these
income
zones
http://factfinder.census.gov/home/saff/main.html?_lang=en
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Location, Location, Location
Proximity to customers Neighborhood Convenience Safety (lighting, off-street parking, etc.) Accessibility (ADA)
Visibility Foot traffic, vehicle traffic Other complementary businesses nearby Size / floor plan requirements Lease or own
Zoning restrictions Landlord restrictions Costs (property, amenities, required improvements)
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What do you know?Who would buy a similar product orservice?
Can you describe them in terms ofmeasureable variables, including age,income, education, home value,gender, ethnicity, or zip code?
Do you know how often theypurchase or use the product?
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What do you know?Do you know why they use theproduct?
How often do they use the product?Daily, weekly, monthly? How much of the product do theyuse (light, medium, heavy)?
Why do they use the product?Health? Prestige? Comfort?
P d ti Ad ti St
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Production Adoption Stages
%
Using
Time
Early
Majority
Late
Majority
Innovators EarlyAdopters Laggards
ll
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Who is willing to pay whatprice? There is always a small group ofcustomers who consume/buy asubstantial amount of product
Call this the 20/80 Rule 20% of consumers buy/use 80% ofproduct. Call them the Heavy Half
Can you identify light (occasional),medium (regular) and heavy (veryfrequent) consumers of your product?
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Adoption and Use
Are more of the heavy users amongthe innovators?Are more of the medium users
among the early majority, some in thelate majority?Are more of the light users among
the laggards? Are there some who will neverbuy/use your product?
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Where are mycompetitors?
Wh l h C ?
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Why Analyze the Competition?
Because You Might: Learn more about what the customer reallywants (or doesnt want)Discover unserved niche markets Learn how theyre dealing with new laws, trends,
and technology(e.g., green, social networking,demand-driven manufacturing)
Get ideas for marketing, merchandising, andproduct mix
Obtain valuable advice, support, and information
Because You Will:Determine whether you have aCOMPETITIVE ADVANTAGE
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SWOT AnalysisStrengths
What are your business strengths? Competitionstrengths?
WeaknessesWhat are your business weaknesses? Competition
weaknesses?
OpportunitiesWhat opportunities are available for your business?
ThreatsWhat threats might you encounter?
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From the Internet!
www.localharvest.org
h l ll
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COUNTY: www.localharvest.org
Am I the only one selling it?
N t t d!
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No stone unturned!
http://www.ncagr.gov/NCproducts/index.htm
N t t d!
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No stone unturned!
http://www.foothillsfresh.com/
ASAP L l F d G id
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ASAP Local Food Guidehttp://www.asapconnections.org/
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Piedmont Grown
http://www.piedmontgrown.org/
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In Review The customer is the central focus of
marketing Demographics, psychographics, age, zipcode, etc.
Identify the ideal market area Location, location, location
Is there market potential??? Who is going to buy your product? Who are your competitors? Where are your competitors? How is your product unique?
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Marketing WisdomDont underprice your product(s)Dont try to satisfy all customers
Play the role of educatorQuality is the #1 job!
Th R P d t
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Local, organic, log-grown fresh pickedShiitake mushrooms
The Raw Product
Th Shiit k Q
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Farm Location:Gastonia, NC (Gaston Co.)
Production:
800 pounds per yearGoal:Sell 100% of production
through direct sales to customer
The Shiitake Queen
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d k l !
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We need a marketing plan!
Step 1: supply
Step 2: demand
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Who are my
competitors?
h !
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From the Internet!www.localharvest.org
Farms: 2 w/in 25 miles
5 w/in 50 miles
3 w/in 100 miles
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From the Internet!
www.foothillsfresh.com
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Where are my
customers?
F h I !
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From the Internet!www.localharvest.org
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They shop at Farmers Markets
Within 50 miles
there are 58 farmers
markets
www.localharvest.org
They eat at fine restaurants that
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They eat at fine restaurants thatserve local grown foods
Within 50 mi- 2 listing
Also check:yellowpages.com
http://maps.yahoo.com
local chambers of commerce
Using these searches:
*200 sit down restaurants
*69 caterers
I th D d?
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Is there Demand?
Who wants mushrooms?
In the U.S., per capita consumption is 3.65
pounds of mushroomsMushrooms are thesixth leading vegetable in farm receipts,
consumers are primarily whites and asians.1
1Lucier, G. and A. Jerado. Vegetables and Melons Outlook. VGS-304.
Washington: US Dept of Agriculture. 2009.
I th D d?
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Is there Demand?
Who wants mushrooms?
A heavy user segment is larger families (i.e.
households with children under 18 years livingat home), as they buy fresh mushrooms
significantly more often than their
counterparts without children.1
1Fresh Mushroom Consumer Segment Study. The Mushroom Council. 2005.
Is there Demand?
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Is there Demand?Who wants mushrooms?
The U.S. is the worlds
second largest
mushroom producing
country behind China.Pennsylvania, California,
& Florida are the largest
mushroom growing
states.1
Popular Mushrooms:
White button
Crimini
Portabella
Shiitake
Maitake
Oyster
1Mushroom Council Research Report. 2004
I th i h ?
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Is there a niche?
Niche #1: Foodies! www.foodnetwork.com 2,955mushroom recipes; 608 are shiitake related/asian
inspired.1
1From: www.foodnetwork.com, 2011.
2From: http://my.webmd.com/content/article/20/1728_53385..htm
Niche #2: Natural Health- Mushrooms (shiitake)
may play a role in breast cancer prevention and
treatment.2 May have health benefits for immunity
and cancer recovery.2
P t ti l C t
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Potential Customers
Population (Within Gaston Co.): 199,673
PRIMARY ETHNIC MARKET
White (79%): 160,4891
Asians (1.2%): 240211 US Census, NC Quick Facts, 2005 - 2009.
http://factfinder.census.gov/home/saff/main.html?_lang=en
Where do they live???
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Median Household Incomes in counties within 50
milesUnion ($60,074)
Mecklenburg ($55,587)
Lincoln ($47,859)
Gaston ($42,110)
Catawba ($43,303)
Cleveland ($37,889)
US Census, NC Quick Facts
Where do they live???
Focus in
these
income
zones
http://factfinder.census.gov/home/saff/main.html?_lang=en
R l
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Results
Competitors?10 or fewer farms direct marketingmushrooms within 100 miles
Customers?
Asian & Caucasians with children at homethat have above average incomes and arehealth conscious
Market?
Farmers markets & restaurants in Gaston,Lincoln, Union, & Mecklenburg counties