American Business Trends

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• Troy Cooper
• The Ohio State University Direct Marketing Team
• Add Event
• Add Location, OH
• August 25, 2006

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Welcome Introductions

• Direct Marketing
• Marketing principles applied to agriculture
• Overview
• Products/Services
• Places
• People (Customers)
• Promotion
• Planning
• Resources

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Direct Marketing as it relates to agriculture

• Direct Marketing, as it relates to agriculture,
  selling direct to consumers - individuals,
  families, restaurants, tour groups, big companies
  and others.
• - North American Farmers' Direct Marketing
  Association

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Why Direct Marketingin Ohio?

• Ohios Changing Farms
• increasing number of small acreage farms
• (1 179 acres) 75 percent of Ohio farms
• New Landowners
• Established Farms Diversifying

• Ohios Changing Consumers
• Demographic diversity 15 metro areas
• Interest in locally grown

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Ohio ranks in the top five states for direct farm
sales

• Value of Ag. products sold directly to
  individuals for human consumption
• In the 2002 Census
• of Agriculture, Ohio
• farms reported over
• 37 million in direct
• farms sales.
• www.nass.usda.gov/Census_of_Agriculture/index.asp

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Direct Marketing in Ohio

• 100 Farmers Markets (USDA)
• 600 Farm Markets (ODA)
• 75 Wineries
• Garden Centers, Nurseries,
• Other 8 Produce Auctions,
• CSAs (subscriptions),
• Cooperative Marketing,
• Chef-Grower Networks,

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Marketing is Everything- Jay Conrad Levinson,
Guerrilla Marketing

• Name, Location Image of your business
• Advertising, Public Relations Communications
• Marketing strategies, Sales presentations,
  Events,
• Strategic positioning, Strategic partnering
• Product development, pricing, distribution,
  category, cycle
• Packaging, design, colors, sizes, shapes of
  your product
• How you handle telephone calls. How you present
  yourself.
• Welcome/Thank/Educate
• Customer service/Customer relations/Customer
  Loyalty
• Brand names, Warranties
• On-farm postcards, mailbox at farm, greeter,
  employees
• Off-farm appearances
• The little things

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Marketing OverviewThe Combination

• Marketing is not
• only much
• broader than
• selling, it is
• the whole
• business
• seen from the
• customers
• point of view.
• - Peter Drucker

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Marketing Challenges

• Seller
• Marketing Concept
• Goals

• Buyer
• Demographics - Who
• Psychographics Why
• Prospect, Customer,
• Friend, Fan
• Decision Process
• Other Influences

• Environment
• Noise
• Changes - PEST

• Other
• Unknown
• Not controllable

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Marketing in todaysExperience Economy

• More than product procurement Example
• Agrarian Economy Commodity
• Extracting commodities chicken
• Industrial Economy Flavored
• Manufactured goods chicken
• Service Economy Fast food
• Delivering services KFC
• Experience Economy Medieval
• Stages experiences Times
• Personal and memorable way 

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Products What farms sell?

• Various crops and livestock
• Fruits Vegetables
• Meat and other animal products
• Trees, shrubs, flowers, herbs other
• nursery agroforestry products
• Value-added foods
• nature-based products
• Other products

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What farms sell?Services/Experiences

• Farm tours
• Pick-Your-Own,
• Mazes,
• Hay Rides,
• Games/Play Areas,
• Specialty Gardens,
• Educational Demonstrations
• School tours, Other bus tours
• Corporate parties, Weddings, Birthday parties,
  Working vacations

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What farms sell?Services/Experiences

• Recreation and hospitality enterprises
• Food sales/service local regional cuisine
• Restaurants, Farm Farmers Markets, Tasting
• Lodging Bed Breakfast, Cabins Cottages
• Recreation Hunting or fishing for fee
• Gifts arts crafts other local/regional
  specialties
• Festivals, Events Other Attractions
• featuring natural resources, heritage and
  historical sites, etc.

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PlacesWhere do you sell?

• Roadside stands
• Farm markets Pick-Your-Own operations
• Farmers markets and public markets
• Mail order, Internet-based sales CSA
  Community Supported Agriculture (Delivery)
• Auctions, Festivals Other Events
• On location sales calls (delivery)
• Other
• A product or service provides customer
  satisfaction only if it is available to the
  customer when and where it is needed. - Lambert,
  Stock Ellram, Fundamentals of Logistics
  Management, 1998

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PeopleWho buys/influences?

• Who purchases or influences the purchase of
  products/services?
• Consumers
• Chefs/Restaurants
• Schools, Institutions, Municipalities
• Businesses
• Specialty Retailers
• Other

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Promotions

• Image, Positioning, Branding, Competitive
  Advantage
• Targeted approaches for advertising, public
  relations and other communication strategies
• Merchandising - signage, displays,
• The customer experience hospitality
• Meaningful sales transactions
• Ongoing Customer
• Relationship Management
• Cooperative marketing

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PromotionsCommunication Options

• Newspaper, Magazines, Direct Mail
• Yellow Pages Other Directories
• Internet (Web, Email, )
• Billboards Signage
• Radio
• Cable TV
• Specialty Advertising (caps, pens, mugs )
• Cards, Brochures, Catalogs, Newsletters (print)
• Events (sponsorship, displays, badges, folders,
  bags)
• Public Relations, Presentations Networking
  (member)
• Uniforms
• Packaging Inserts
• Loyalty Programs
• Strategic Partnerships
• Other Word of Mouth, Telephone, Door to Door,

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PromotionsPublic Relations

• Get involved in community activities
• Help sponsor community events
• Acknowledge referrals
• Press Releases
• Short (max. 2 typed pages double-spaced)
• News worthy, local appeal, tied to news
• Visual appeal (newspaper, broadcast)
• Contests
• Be an Expert Speaker
• Have an answering machine message
• Tourism pick your own hours, conditions,
  prices
• Cross Promotions
• Exchange promotional opportunity with other
  business/es (flower grower candy maker
  Valentines Day specials) Coupons/Discounts/Combin
  ed sales

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Promotions

• Who?
• Right Audience/s profile / target market
• What?
• Right Message
• AttentionInterestDesireAction
• (Lavidge and Steiner, 1961)
• When
• Right Time, Frequency (4-9x), Consistency
• Where
• Right Place, Media Choices
• How Much
• Right Budget leftover money, of sales,
  comparative

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Planning

• Marketing Plans
• Section 1 Marketing Summary 
• (opportunity/solution)   
• Section 2 Business, Industry, Category,
  Situation
• Section 3 People Target Markets/Trade Area    
• Section 4 Products Services 
• (pricing, packaging)  
• Section 5 Places (distribution)
• Section 6 Promotions (competitive advantage)
• Section 7 Sales Forecasts Assumptions     
• Section 8 Measures of Success 

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Personal Goals

• Direct Marketing
• To make ?
• To expand an existing business?
• Diversification/Risk
• Extended Season/Cash Flow
• Volume
• As a way of life?
• For social interaction?
• Other reasons?

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Planning Management

• What you want?
• What is the current situation?
• Existing (Audit) what is / is not working
• New Development of objectives, goals and plans
• New people New product
• New place New promotions New planning

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Marketing Measures

• Sales (Units, Timing, gross/net)
• By the hour, day, week, week in a month, month,
  season, year How much did you sell didnt you
  sell?
• People
• Customer mix, Frequency of visits/purchase
• Products (pricing, packaging)
• New Product, Cross-sell (or bundle products)
• Extended Season,
• Product profitability
• Places
• Promotions
• Awareness, Trial
• Source and cost per lead, Conversion of lead to
  sale
• Other KEY DRIVERS (impact profitability, goals)

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Next Steps

• Key Drivers
• Know Who Youre Talking To
• Create Delightful Expectations Experience
• Recognize - Life Changes farms customers
• The good news is that marketing will be around
  forever. The bad news is that it wont be exactly
  the way you learned it because of the
  hypercompetitive and rapidly changing marketplace
  (Kotler, 2003).

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Resource

• http//www.nafdma.com/FMC/

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Resource

• USDA Farmer Direct Marketing, http//www.ams.usda.
  gov/directmarketing/

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Resource

• Direct Marketing Business Management Series,
  http//www.attra.ncat.org/attra-pub/directmkt.html
  

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Resource

• SARE Direct Marketing Resource Guide,
  http//www.sare.org/publications/dmrg.htm

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Resource

• AgMarketing Resource Center , http//www.agmrc.org
  /agmrc/default.html

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Resource

• Industry specific
• Food, Tourism, Garden Center,
• Each state University, Agencies, Associations
• Product Fruit, Veg.,
• Hort., Meat, Tourism
• Place Farmers Market
• People New Markets
• Promotion Internet
• Other Local/Organic, Diversification, New Farm,
  Sustainable Farm, Consumer Science, Nutrition,

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Resource Marketing Associations Journals

• American Marketing Association,
  http//www.marketingpower.com
• Journals, .marketingpower.com/content15789.php
• Direct Marketing Association, www.the-dma.org
• Promotion Marketing Association, ww.pmalink.org
• Marketing Research Association, www.mra-net.org
• Marketing Profs, http//www.marketingprofs.com

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Resource Books
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OSU Direct Marketing Team Julie Fox,
fox.264_at_osu.edu The Ohio State University South
Centers 1864 Shyville Road, Piketon, OH
45661 Tel [phone] or 800-860-7232 Fax
740-289-4591 http//directmarketing.osu.edu