Finding Your Market Using Indiana MarketMaker

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 notenough 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

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. Customer Perception and Demand Creating Value Communicating Value • Advertising • Sales team • Customer list • Physical facility • Awards • Reputation/image • Newsletters • Tastings • Special events • Others? • Milk quality • Yogurt maker • Equipment • Quality of people • Unique products • Price • Location • Facilities • Unique services • 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 In Progress Colorado South Carolina District of Columbia • Illinois • Kentucky • Ohio • Michigan • Iowa • Georgia • Nebraska • New York • Mississippi

19. Who should use MarketMaker? Farmer 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 • 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

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. From the Producer or Food Entrepreneur Perspective Using Indiana Marketmaker

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.

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

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

29. 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.

32. 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.

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

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

37. Map it Purdue University is an Equal Opportunity/Equal Access institution.

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

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.

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

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

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

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

45. From the Consumer Perspective Using Indiana Marketmaker

46. Find a Business • Farmer • Produces dairy

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

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

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

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