1. Finding Your Market Using Indiana MarketMaker Dr. Maria Marshall Department of Agricultural Economics

2. What Is Marketing The process of creating and delivering desired goods and services to customers Involves all of the activities associated with winning and retaining loyal customers

3. Marketing Secrets to successful marketing –Understand target customers’ needs, demands, and wants. –Offer products that will satisfy those needs, demands, and wants. –Provide customers with quality, service, convenience, and value.

4. Linking Seller and Buyer The seller’s four Ps –Product –Price –Place –Promotion The buyer’s four Cs –Customer benefit –Customer cost –Convenience –Communication

5. What is a market? A market is the set of all actual and potential buyers of a product. Consumer interest is not enough to define a market.

6. What is Your Market? Consider: –Market Definition –Market Trends –Market Type –Product Knowledge –Sales Area –Early Responses –Market Penetration

7. Understanding Your Market Who are our customers and what do they want? Who are our competitors and what do they bring?

8. Defining Your Customer What are the characteristics of your customers? Where will they come from? What is their income range? Why will they be your customer? What do they require from you to remain your customer?

9. Benefits Value Benefits –Quality –Delivery –Service –Technology –Personalization –Shopping ease Cost Benefits –Lower costs –Scale savings –Scope savings –Learning –Organizational practices

10. Quick Competitor Analysis Customer Seeks Competition Offers You Offer Quality Exclusivity Lower Prices Delivery ….

11. Customer Perceptions and Demand Customer perception is a major external factor affecting price. Value is the difference between perceived benefits and perceived price. Analyze customers’ perception of the total price—including shipping and any other additional or hidden costs—as well as perceptions of the product’s benefits.

12. Creating ValueCommunicating Value Customer Perception and Demand Milk quality Yogurt maker Equipment Quality of people Unique products Price Location Facilities Unique services Others? Advertising Sales team Customer list Physical facility Awards R eputation/image Newsletters Tastings Special events Others?

13. Customer Perception and Demand Customers are less sensitive to a product’s price when they: –Are unaware of or can’t easily compare substitutes –Are unaware of the price of substitutes –Perceive the product to be highly differentiated –Would incur costs or difficulties in switching –Perceive that the quality or prestige justifies the price –Are spending a relatively insignificant amount or are sharing the cost

14. Finding Your Target Market Using MarketMaker

15. Indiana MarketMaker Prepared by Maria Marshall Department of Agricultural Economics

17. Partner Sites Online Now Illinois Kentucky Ohio Michigan Iowa Georgia Nebraska New York Mississippi In Progress Colorado South Carolina District of Columbia

19. Who should use MarketMaker? Farmer Direct sellers researching buyers Buyers looking for specific products from farmers Traders on the Internet On-farm retailers Farmers selling to restaurants Farmers selling to food processors Consumer Farmers looking for other farmers to partner with Restaurant chefs looking for product Institutional buyers looking for local product Farmers selling specialty processed foods Community Supported Agriculture U-pick operations

20. Producer Perspective Find consumers Find processors Find restaurants and specialty stores Find farmers markets

21. Food Entrepreneur Perspective Find farmer Find processor Find consumer Find retailer

22. Consumer perspective Find farmers Find farmers’ markets Find restaurants Find specialty stores and markets

23. USING INDIANA MARKETMAKER From the Producer or Food Entrepreneur Perspective

25. Finding Consumers Find a Market –Household type –Married couples with young children –In Indiana—statewide Map it –Should see households per census tract –The darker the color the higher the concentration of households per census tract

26. Purdue University is an Equal Opportunity/Equal Access institution.

30. Finding Consumers Zoom in –Closer look at consumers around Indianapolis –Draw a block around Indianapolis Find Business –Farmers market

31. Purdue University is an Equal Opportunity/Equal Access institution.

33. Finding Consumers Identify (button) –Will provide businesses listed within clicked area –Census tract information such as Population Household type Race Household income Percent of college graduates

34. Purdue University is an Equal Opportunity/Equal Access institution.

37. Map it

38. Purdue University is an Equal Opportunity/Equal Access institution. Detail

39. Find a Market Hispanic households with income $50k- $99K Near Gary area Find a meat market in that area –Click: Find Business –Click: Food Retailer –Click: Meat and Fish Market

40. Purdue University is an Equal Opportunity/Equal Access institution.

45. USING INDIANA MARKETMAKER From the Consumer Perspective

46. Find a Business Farmer –Produces dairy

47. Purdue University is an Equal Opportunity/Equal Access institution.

52. Find a Business Winery –Indiana wineries –Native varietals

53. Purdue University is an Equal Opportunity/Equal Access institution.

56. Find A business You live in Vincennes and want to know where the nearest farmers markets are to buy products for your restaurant. –Find Business –Multistate: Indiana, Illinois and Kentucky –Map all –Block off the area near Vincennes –View results Provides a list of the farmers markets in the blocked off area. Can map individual farmers market Can view detail on individual farmers market

57. Other MarketMaker areas Buy & Sell Forum Case Studies Resources

58. Buyer & Sell Forum Looking to buy products Looking to sell products Looking to provide processing services Looking to provide transportation for ag products

60. Purdue University is an Equal Opportunity/Equal Access institution.

61. Case Studies Example: Increasing Manufacturing Output –Ingrid want to use MarketMaker to learn how to locate all the manufacturers that will do contract canning of jellies, sometimes called co-packers. Step by step instructions –From the begin search database, select Find a Business –Select Processor –Select Fruit and Vegetables –Select State, click Search

62. Resources Fact Sheets and Publications Related Web-sites Glossary –A list of MarketMaker and Industry terms Profile glossary of census definitions such as census tract, age, household, foreign born

63. Purdue University is an Equal Opportunity/Equal Access institution.

66. www.inmarketmaker.com