1. Marketing Your Food Product
2014
Marketing Your Food Product

2. What will they pay for it?
Who's going to buy it?
Where should I sell it?
What will they pay for it?

3. Do you have a new, exciting product?
If you do, that’s 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 didn’t have a market to support their product.

4. Let’s learn about marketing basics

5. 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.

6. 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.

7. 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.

8. 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

9. 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.

10. Customer Segmentation is:
Identifying those people most likely to
buy the product or service and targeting
those groups.

11. There are two main methods to segment a market
There are two main methods to segment a market. Do you know what they are?
Click to see the answer.
Geographical and customer

12. What type of segmentation is the following example?
A local pizza place puts fliers in everyone’s
mailbox within a one-mile radius of the pizza
place.
Geographical
Customer
Click to see the answer.

13. Managing the market mix
Every marketing program contains four key components:
Products and services
Promotion
Distribution
Pricing 4 2 1 3

14. 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

15. 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

16. 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.

17. 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.

18. 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.

19. 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.

20. Which of the following is not one of the key components to a marketing plan?
Pricing
Promotion
Distribution
Planning
Click to see the answer.

21. 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.

22. 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?

23. Let’s 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

24. 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.

25. 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.

26. Write down your plan Define your business
What’s your product or service?
Where are you selling your product or service (neighborhood, regional or national)?
Who’s your competition?
How are you different from the competition?
What’s your price?
How do your competitor’s market their product?
What are your promotion methods?
How are you going to distribute your product or where will your business be located?

27. 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

28. 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

29. 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.

30. Examples of marketing tools
Newspaper
Magazine
Yellow Pages
Radio or television advertising
Internet
Direct mail
Telemarketing
Public relations activities

31. The final stage in your marketing plan should be 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