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Using Best Strategies and Psychology to Drive Sales at Markets.

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Presentation on theme: "Using Best Strategies and Psychology to Drive Sales at Markets."— Presentation transcript:

1 Using Best Strategies and Psychology to Drive Sales at Markets

2 Robin B Crowder Marketing Consultant Sustainable Agriculture and Business Development Director, Marketing and Development 21 Acres Center for Local Food and Sustainable Living

3 1.To Avoid Pain 2.Create More Pleasure People do not buy things. They buy the usefulness that things provide. They buy what the thing will enable them to do or be. Key to sales: products that create meaning for the buyer and help avoid pain and create pleasure Why do people buy?

4 Behavioral Economics = Marketing Psychology What is behavioral economics? The study of psychology as it relates to economic decision making processes... Nudge, Switch, Predictably Irrational Behavioral economics looks at decision-making process of buying Use BE in conjunction with creating meaning for buyers and making buying easy

5 Behavioral Economics = Marketing Psychology Three themes predominate: Heuristics: People make decisions based on approximate rules of thumb, not strict logic Framing: Collection of anecdotes and stereotypes making up mental emotional filters that individuals rely on to understand and respond to events Marketplace: Pricing, promotion, placement and product; non-rational decision making AND, importantly making sales transactions easy

6 Consumer Behavior Study Food Marketing Institute Jan Conference: A comprehensive study into food culture shifts, suggests we have become an "eating culture" that requires retailers and manufacturers to reconsider traditional approaches to how they market food.* *Hartman Group and Daymon Worldwide Reframing Retail Through The Lens of Changing Food Culture Based on ethnographic interviews in Seattle, Detroit and Dallas

7 Consumer Research Study Cont. Food, and where consumers buy it, is evermore central to personal identity. We truly are where we shop and what we eat. Consumers seek variety, avenues of discovery, try different kinds of cuisines, greens, grains and salts. Brand loyalty is no longer a given. Its not that consumers are disloyal; they just want to try new things.

8 Consumer Research Study Cont. Consumers shop with eating in mind. What they want depends on what makes up the occasion: who, what, where, how and why. They prefer retailers who get them, not a one-size-fits all approach. When all else is equal, price [and payment methods] matters, and consumers like clear, differentiated choices.

9 RBC Guarantee Employ these marketing psychology strategies to take advantage of behavioral economics and make a direct impact on revenue immediately – the next market day.

10 Give customers a reason to buy – then make it easy for them using psychology and behavioral economics Set the background. Use framing Build relationships. Tell stories about: children, animals, seeds, supplies, equipment, etc. Marketing Psychology: Stories

11 First impressions are formed within first 10 seconds. Typical retail rates of perception: 83% sight 11% hearing 3.5% smell 1.5% touch 1% taste Taste is significantly higher in a direct market environment, perhaps #2 Need to cut through the sensory chaos – visual, physical and auditory – and reach customers Marketing Psychology: Sensory

12 In general, customers: dont want to act dumb dont want to be ill-informed want to be told what to do buy products on impulse dont want to have to ask a price are curious like to be experts want to be treated special are inspired by the rich and famous Marketing Psychology: What customers want and dont want

13 Marketing Psychology: Convey success People want to buy fame and fortune. Share how others use your product: chefs, spas, general customers, wedding planners, rich and famous Tell how your product solved a problem (avoid pain; more pleasure)

14 Cont....In general, customers: dont want to ruin displays spend more money than they think they will/do like to buy in groups/things that go together want a bargain but will pay top price confer and seek advice from others Marketing Psychology: What customers want and dont want

15 Cont....In general, customers: Want you to take their money when they are ready, they dont want to wait Have different methods of payment They want to know what forms of payment farmers take without having to ask Marketing Psychology: What customers want and dont want

16 Marketing Psychology: Display Cultural bias - right-left-right Use repetition Step products Use pyramid Radiate displays Look for ideas elsewhere, grocers, hardware stores, farm and garden, etc.

17 Two checkers, two cash boxes Display of same product on opposite sides Place things where all people can reach them – Avg Womans height, 5.2 Marketing Psychology: Logistics

18 Resting spots for eyes Resting spots for baskets/bags Marketing Psychology: Display Different displays for different styles

19 Marketing Psychology: Sales If you dont do anything else that we talk about today, you must at least do this: Product of the Day (does not need to be on sale) Whats new today? And, the Magic of the Pedestal =

20 Marketing Psychology: Pricing Pricing strategy: Be creative Offer alternatives, experiment Display and price same product differently (provide pre-weighed, bundled, and not bundled) see what sells, probably all will sell Consider how to sell Grade B product

21 Marketing Psychology: Sales Be an involved sales person Ask for the sale Suggest add-ons Farmer guarantee Provide farmer favorites Here, take this. Try it for free. Tell me what you think next week. Recipes – this is a must do! Vendor favorite, Manager favorite, Childrens favorite

22 Marketing Psychology: Call to Action Recipes (One of lifes great mysteries is why doesnt every vendor do this all the time?) Make recipes sales tools Create a sense of urgency (What could be more urgent than asparagus season?) Seasonality, pricing, limited supply, certain varieties

23 Marketing Psychology: Maximize What do you do to create additional sales farm to market and market to farm? Market: On-farm events/sales Other sales locations CSA membership Farm: Market specials Move grade B product

24 Signs sell – Create meaning for buyers -- heuristics Ask yourself: Do your signs convey: Price?Value? Variety?Promotion? Humor?Attributes? Usage?Place? Marketing Psychology: Signage The good, the bad and the ugly

25 Marketing Psychology: Signage The good, the bad and the ugly

26 Marketing Psychology: Signage The good, the bad and the ugly

27 Questions? Robin B Crowder Marketing and Development Director 21 Acres Center for Local Food and Sustainable Living

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