A basic understanding of the scope of marketing – and the questions raised therein –can help any new enterprise immensely. You may be well versed in the terminology and concepts of marketing as they relate to agricultural production. What applies under that umbrella will still be important to many of you. But the scope of your marketing considerations enlarges when you become part of the processor or other start-up business framework.
So what is this “thing” they call marketing?
- It is something different to every person.
- It is studying.
- It is analyzing.
- It is making decisions about how to reach your goals.
Your strategic business plan and your marketing plan go hand-in-hand. You probably cannot successfully carry out either effort without the other. Right in your business plan, you will deal with the basic outline of how you will market your goods.
But a more expanded marketing plan can provide that necessary information as well as take you on to the levels of how you carry out your strategies and who is going to perform certain tasks. To establish a full fledged marketing plan, keep a couple of things in mind:
- You have to be noticed – you can’t get lost in other people’s “bigger picture.”
- Good marketing and image creation evolve.
According to the experts, the average customer/consumer is exposed to no fewer than 1,500 different images each day; 50 percent of those are forgotten in less than 24 hours. After two weeks, only 5 percent of those images are remembered. Remember that over that two-week period, each day brings in another 1,500 images, some of which reinforce the previous day’s images, some of which are new.
It’s easy to get the feeling you are on a racetrack and all the other cars are accelerating and passing you by – repeatedly.
Actually, you stand as good a chance as anyone of being the remembered (and acted upon) image if you are smart about it. A key element in marketing is:
Be consistent, frequent and on target with your messages – all the messages you send out.
As mentioned earlier, you will need a marketing plan. It is a working document – one that changes as your business plan changes. This plan is one of building on what you know about yourself, defining steps to reach goals and turning one success into a group of them.
Unbreakable Rules
There are two common-sense, cardinal rules to continually keep in mind. We have addressed these in earlier chapters of this manual. They continue to apply.
Rule 1: Know your customer(s).
Rule 2: Know your competition.
Marketing is not just about sales, although making good sales at the right time and prices is always a factor. Instead, marketing is everything you do in terms of addressing your customers and in relation to your competition. These activities probably will lead to improved sales as an outcome.
In your previous working endeavors, you and others have been focused on one or two of the components in what marketing gurus frequently call the “Four Ps of Marketing.” they are pricing, product, place and promotion.
Roll these together and then add something we will address later – image or positioning. None of the factors can be considered in isolation from the other. And all are considered in relation to the two basic rules of knowing customer(s) and knowing competition.
Sound complicated? It can be, but it doesn’t have to be. Your best approach is to have as much information as possible about clients, potential clients, competitors and, of course, your own product and business capacity.
This means doing “research,” as was addressed in an earlier chapter. In the Market Research chapter, types of research information, methods and expected outcomes were discussed.
There are a couple of cautions to keep in mind. You do not want to limit those you query to those who are a built-in market for your product or supporters of your ideas. Supportive attitudes and answers can make you feel good, really good, for a very short period of time. Depending on your product and sales goals, you need to know what a chunk of “the rest of the world” thinks. All that feel-good information can cause you to build a marketing and business plan that will not take you to the success you want.
Marketing Primer Flow Chart
You also need to know the climate in which both you and your customers are operating. You may be able to do this simply with a meeting among you and your partners, associates, etc. Or, you may wish to consider surveying or questioning others for this information. This is called “environmental scanning.” While it may not seem relevant at the time of beginning your operation, you do not wish to be caught by surprise by events that occur over which you do not have control. You need to know where you are sitting in the larger scheme of things.
You should know about the current political climate as it relates to your product. What factors in the economy (regionally, nationally or world-wide) could affect your situation or your customers’ buying ability? What trends related to your product area exist?
You may be able to do all of the information gathering yourself or with your own staff or partners. Probably, it will be money well invested to hire some assistance in this area. You have a big job simply in using the findings of research to make your product, production and sales decisions.
Setting Yourself Apart
What makes you so special? We’ve all heard that question put to someone rhetorically. In terms of marketing your business, it is a question to take very seriously. The idea that successful marketing is about the customer/client and not about you or your product is valid. However, this is also a basic truth – your product and your service to the customer must be clearly and succinctly defined in all that you do. Otherwise, there is no reason to do business with you.
You already are gathering all the information you can out in the marketplace about
customers and potential customers and their preferences, habits, knowledge, etc. You are gathering information about your competitors. What do they do right? What do they do better than you do? How do they deal with customers? What is their image? Why are they ahead/behind you in your field? You have checked out the environment in which you are operating your business and, more importantly, in which your targeted customers are making decisions.
Now, what do you do with all the information you have gathered? You go back to the drawing board, much as you did in devising your product. You need to know where you sit in the midst of all of this customer, competition and environment information.
Worksheets to help you get started are included in Exhibit 3A at the end of this chapter.
Image
Is this important? You bet it is.
There are volumes written in fancy, ad-agency driven jargon about what you “must” do in terms of creating an image for your company. The not-so-good news is some of it is helpful and you should always be learning new techniques to put a spotlight on your company and products. The really good news is that it all boils down to an old adage: “Put your best foot forward.” How that is done is up to you, your business peers and the budget you can or wish to devote to image marketing.
So, what is this thing called “image?” Quite simply, it is the way others (clients,
employees, community units, competitors, etc.) perceive your company and products. And, it is the action you take to bring that about.
Establishing an image, at the very least, needs to be part of your marketing plan. The image you leave with customers visually or by any contact conveys reliability. It conveys your savvy as a company and your respect for a customer. Your image conveys knowledge – you have done your homework.
While establishing an image can often mean gaining a visual identification, such as with a logo, it is not limited to that. Image is a part of everything you do – all written materials, your ways of dealing with customers and other business people, what is noticed about you (in person or in product) at every interaction.
Go back to the idea that what your customer thinks about you is everything. Maybe you are dealing with packaging issues. For that you need a logo, an “appearance.” That visible image should be a part of everything that is viewed by customers (and competitors). It’s a reminder that these people (you) are the ones with the best product, the friendliest service, the quickest delivery, etc.
Image must make sense. It must be consistent – in visual approach as well as in the way you handle customers. Image must be believable and accurate. What short phrase describes your interactions with customers or your product? You may want to develop a tag line and use it everywhere.
A well-defined image also becomes important in dealing with the community(s) in which you work or do business, with governmental agencies, lenders, and on down the line. You are defining yourself with your “presence” and also what you think of your customers.
Tools that Help
Paid advertising is one of the first things we think about when we think of marketing and image issues. It is costly and, if done well to the right audiences, can be effective. But there are other tools that many businesses use that cost less and keep their name and image out where it needs to be.
All written materials should reflect your company image. That probably means
developing or having developed a logo and some preprinted stationery. Brochures are good introduction pieces and can serve well as a substitute for your presence when you want to reach more people than you can possibly visit.
Written Materials
The following set of guidelines may help you if you decide that written materials – promotional fliers, a brochure, Web site information, etc. – can help you further your product marketing efforts.
- Step back. If you are the one responsible for the product’s success, you are probably too close to be the one to have final say in its promotion. It needs some logic applied, not your heartfelt (though possibly accurate) assessment. Let another professional or even a business associate help you out.
- Emphasize what you have learned about customer needs and wants in what you write. You may think a brochure or written piece is about you, but it is really about your customer.
- You don’t have to be cute – but use words that grab interest. Make your key words stand out visually.
- Stress the customers’ return on investment – what do they gain?
- Use language that comes from your customers or whatever group you are addressing, not the jargon of your own niche business.
- Stress authority. This is another way your research pays off. Someone else may be able to give you a testimonial or words of wisdom that fit the message you want to spread.
- If possible, use statistics. Was there something recently in a trade magazine or newspaper?
- Always get a second opinion and always have someone else proofread for you. Any written piece that is done “in-house” by you or associates should be tested on potential customers or recipients. If you use an agency to do the piece, then make sure that activity is included in what you are getting.
- Remember when we talked about all the messages that people receive everyday. This is your chance to be one of them. Pretend you have only five seconds in someone’s vision, then a decision will be made as to whether or not to read further.
Press Releases
Too many smaller enterprises believe that getting media notice is a matter of the media somehow magically knowing there is a story there and then seeking it out. Information about your business, your new products, your new hirings, etc., is probably not going to get passed on as a news “tip” by someone else. But you can – and should – be your own press agent, especially in terms of dealing with smaller market media such as smaller community weekly newspapers.
You can send a press release representing your company by simply putting a bold
“PRESS RELEASE” at the top of the empty portion of your letterhead stationery. What you write should address these factors: What has happened. Who was involved (include addresses). What it means (perhaps a quote from the company owner). What happens next (if a new product, when available and where).
As an entrepreneur, you should know the value of being recognized in the press or by any media. It helps to be noticed (free advertising), but it also helps to establish your company or product credibility. These are some points to remember:
- You use press releases only when you have something that deserves to be noticed. This is not the forum for most opinions or issues stands – at least not associated with marketing your company.
- Focus on what makes your news “newsworthy.”
- Something “different” is generally more interesting, therefore more interesting to media. Are you hiring new people during an economic downswing? Are you introducing another new product line? Have you expanded into a non-local market?
- If a photo applies, supply it.
- Be available once you have sent out a media release. You will have blown an opportunity now – and maybe next time as well – if you aren’t around to answer questions or take advantage of something the media may wish to expand on.
- Don’t feel defeated if your first media release doesn’t create interest. Continue to send releases. If nothing else, your local media will know you exist. Who can predict when that might turn to your advantage?
- Proofread everything that goes out. NO MISTAKES!
Exhibit 3B has a sample form that will work for many items of “news” about your product or company. You will want to add paragraphs to flush out the story angle for the media. If they want more, they will contact you. Your media contacts list does not have to be lengthy or detailed. They do need to be accurate and give contact information if the media wish to pursue it further.
Trade Shows
Trade shows may be one of the best means available to get word out about your new venture. You will find them taking place in your region, at the state level and nationally. Finding the right trade shows to benefit your business and spending the resources to make yourself noticed when at the show will help you gain the best return on your investment.
You should check out the possibilities of exhibiting through grocery, agricultural, food processing and specific meat associations. Instead of going just to observe and learn, you now must gear up to attend as one of the businesses “hosting” the show.
Some basic questions should tell you which shows are worth your effort. Talk to the group putting on the trade show.
- What is the breakdown of the show’s attendance: General interest, purchasers of products, middle traders or vendors, academics, restaurateurs?
- What amount and type of pre-publicity is sent out and to whom?
- What goes into the informational packets that are available to other vendors, sponsors or attendees?
- What are other displays of similar products like?
There are many questions to ask about setup, timing, expectations of you and your staff, logistics, etc. Answers will help determine if the project is “do-able.” Right now, however, you are interested in getting the most bang for your buck. Remember, too, that going to only one trade show each year or season is not the best use of your resources. It is expensive to buy exhibit space, pay staff and prepare a display that is effective. If you are going to get into this arena, look for at least two outlets over a year’s time.
Your goals in making this effort can be quite simple and highly successful:
- Gain exposure.
- Build interest.
- Gain a list of potential customers.
- Make valuable contacts in your product business arena.
In order to have these things happen, however, you – and your exhibit – have to be
noticed and competitive. That means planning ahead and preparing a booth that attracts visitors. Most businesses need some graphic design and construction assistance with this. The associations sponsoring the shows will detail the amount of space that is available for what cost. You will need to construct a display that will fit within the allotted space at each show (or be adaptable to fit).
Several companies produce ready-made, easily folded up and transportable display units. Most are for tabletops, which can help you save costs on the display itself as well as give you additional table area for demonstration, product literature, samples, etc.
You will need either large, blown up photos or some type of graphically attractive word use to bring in interested passers-by. Of course, part of your package will be identification of your company. That could be a super-large logo on one of the display panels.
What would attract potential customers to your display? Your research should help you out here. Just as that research brought you to certain conclusions about how to discuss your product and company, it also will lead you to those words that will entice lookers. Consider what benefits the customer wants and can find in your product, then splash it big on your signage. What are your differences from other products or companies? (Go back to doing worksheets if you need to do so.)
Then spend some time finding out what the other booths (especially those with similar product lines) will be like at the show. While you want to be different and stand out, you need to be on a par with them – or stretch beyond them in terms of presentation, attraction characteristics, size, and use of technological bells and whistles. Yes, it is costly; but it is better to spend a little more than to get no return on investment for what you are spending.
A few other items to put on your list of things to do:
- Have printed materials available for passers-by to take with them. These should not just repeat what is in your display signage.
- If your budget can stand it, this is the place where trinkets and gadgets can do you some good. Let those that stop by your booth leave with a reminder.
- If you do not like the trinkets way of thinking, consider this: Make available a more substantial gift item (or several) and put a big bowl or box on your display table. Ask for individual’s business cards or let them fill out a card-size slip of paper. Then do a drawing for the item(s) at the event’s end. You will have to make it a prize that has some worth to those attending. But you will have gained a ready-made list of contacts.
- This is a good time to consider milking the media. As well as finding out what media coverage is being handled by the sponsoring agency, determine if you have any “news” from your own company. If so, send out a relevant press release a week ahead of the trade show adding that you will be among those present at the trade show event. Perhaps a follow-up call to the media will create the impetus for a one on- one meeting with a reporter, ag experts, columnist, etc.
A Web Site
Very few new facets in our lives and businesses have had the energy, following and potential of the Internet and, in particular, marketing and selling through a Web site. Some businesses (of all sizes) swear by it as a marketing tool. Others, quite simply, don’t feel it has added much to the bottom line. In very recent years, costs associated with creating and servicing a Web site have decreased, at least in the sense that you can get fancier display for your investment.
But keep in mind that marketing activity and investment must have purpose. A Web site may boost your image as a company but some companies still find it has little impact on business.
When is Web site development something to consider using in your marketing strategies? Ask yourself some questions similar to those you must ask to develop your overall marketing strategy.
- What percentage of my customers and potential customers use computers, the Internet and Internet selling/buying mechanisms (E-commerce)?
- Do I/we wish to use the Web as an avenue of sales, information or both in reaching customers?
- Where are my customers located? What geographic areas do I want to add to my customer circles?
- What is the competition doing? Will a Web site alter perceptions about your company compared to perceptions about other companies doing similar things?
If you wish to conduct sales activity through your Web site, there are other things to consider as well. You will have to have in operation a means by which to receive
payment (credit card, purchase order, etc.), since no cash or checks can change hands. People use E-commerce to speed up the process of making purchases. Are you able to deliver? Is staff available to process orders in a timely way? Are you up to speed on requirements for shipping in response to Web-based purchases.
If your customer base is local, a Web site may be of less value to you. Your time may be spent more productively in dealing with these customers through printed messages, local advertising and one-on-one associations. If you are trying to increase sales to a broader area regionally or nationally – and you have sales and shipping details worked out – a Web site may be of more value to you. If you are looking at International sales, it is perhaps a strategy that is necessary.
In some cases, your product sales increases will depend on a learning curve among potential buyers. For example, perhaps your meat product is one that is becoming known for health value or for its value in an eating trend of another type. A Web site may be a way to increase knowledge (again consider the geographic factors) among the public. Web browsing has become a favored, fun activity for many, especially the young (who are the longer-term customers). You can put information about benefits, ways of using a product, trend growth, etc., on your Web site that will in a broad way emphasize why buying your product is a good thing to do. Throughout much of agricultural production, increasing public awareness and knowledge is considered critical to future business.
Where a Web site is linked is as important as using lively graphics on it. If you decide to proceed with developing a site, consider how a customer will come across the site if the exact site address is not known. These “hyperlinks” are critical for expanding image and sales, but don’t mean as much to existing customers. You will have already let them know exactly where to go to find you on the Web.
A Written Plan
You need to find the time to write down a plan that expands upon the marketing section of your business plan. As you build the plan, you will continue to do these things:
- Look at where you are now and ask why.
- Plan to maintain those positions, then expand them to fit your newer goals.
- Define the stumbling blocks that exist between your company and the type or volume of business you want.
The simplest marketing plan follows a format something like this: List overall goals, probably at least three or four; under each goal, list strategies that can help you achieve that goal; under each strategy, list a few actions that will be taken to finish out the strategy. Also, you will want to list a person(s) who will be responsible for an action or strategy.
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Goal |
Person Responsible |
Completion Date |
| GOAL 1: |
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| Strategy: |
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| Action: |
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| Action: |
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| Strategy: |
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| Action: |
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| Action: |
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| GOAL 2: |
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| Strategy: |
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| Action: |
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| Action: |
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| and so on.... |
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Most plans for new companies can safely list one-year goals. You may wish to set up a two-year set of achievable goals. Strategies and actions are given deadlines within the larger timeframe. If you can live up to the promise of continually revisiting the marketing plan to be sure it is on target or to rework it, you might consider doing a six-month plan as well as a two- or even five-year plan. It is a document that will be revisited and revised regularly.
Sample marketing plan worksheets that can get you started are available in Exhibit 3C.
Additional Resources to Explore
Peppers, Don, and Rogers, Martha, The One to One Future: Building Relationships One Customer at a Time; New York: Doubleday; 1993.
Rapp, Stan, and Collins, Tom, MaxiMarketing; New York: McGraw-Hill; 1987.
Ries, Al, and Trout, Jack, Bottom-Up Marketing; New York: McGraw-Hill; 1989.
Vavra, Terry G; Aftermarketing: How to Keep Customers for Life through Relationships Marketing; New York: Irwin Professional Publishing; 1992.
Exhibit 3-C
Marketing Worksheet
About Your Company
What good things can I say about my company and its products?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What makes my company/products better than others?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What is unique or different about my company/products?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What criticisms have I heard about my company and/or its products?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Exhibit 3-A
Marketing Worksheet
About Your Clients
Describe your current clients.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Describe other clients you would like to have.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What differences exist between the above two descriptions?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do current clients say about you? (If you don’t know, find out.)
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do you want them to say about you and your company?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Exhibit 3-A
Marketing Worksheet
About Your Competition
Who are your competitors?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Rank how you stack up against them in terms of clients you want.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
What do customers say about your competitors? (Find out!)
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
How do your competitors market themselves? What works for them?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Exhibit 3-B
Marketing Worksheet
Press Releases
(your company letterhead or stationery)
Press Release
For release __________________________________________________________
(date)
For further information, contact:____________________________________________
(name)(phone)(fax)
______________________________________ has announced
(City)(State)(your company name)
________________________________
(what event, project, creation,change)
The _______________________ will involve
(action)
___________________________________
(number of people, companies, etc)
________________________________ noted that
(Name of company spokesperson and title)
______________________________
(comment about the action)
_______________________________________________________________________
(List any pertinent information, such as national or community statistics, recent quotes,a quote from a local politician, etc.)
Two Year Marketing Plan Worksheet (JPEG)