The Marketing Plan. Understanding the 4P s OHIO STATE UNIVERSITY EXTENSION OHIO AGRICULTURAL RESEARCH AND DEVELOPMENT CENTER
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1 The Marketing Plan Understanding the 4P s OHIO STATE UNIVERSITY EXTENSION
2 What is Marketing? - Putting the right product in the right place, at the right price, at the right time! 2
3 Goal Setting Short-term Long-term 3
4 4 P s- What are they? Product/Service Place Price Promotion 4
5 The Product(s) Product selection and supply What products/services do you offer? Food Fish and Shrimp (fresh, valueadded) Aquaponic Crops Sport (bait, stocking) Agritourism Experiences Quality & Attributes Quantity Timing available when buyer wants 5
6 The Product(s) What are your products? Where do your products fit into the market? Product Description Location Selling Price Product A- Product B- Product C- 6
7 The Situation Description of your business Industry Overview Situation Analysis Strengths Weaknesses Opportunities Threats 7
8 8
9 The Market Who are you selling to? Where are you selling? Customer Group Identifier A- Who Where? What do you know? What do they need? Identifier B- Identifier C- 9
10 OSU South Centers OHIO STATE UNIVERSITY EXTENSION Demographics Who/Where are they? Age, Gender, Income Level, Education, Marital Status, Household Type, Location, Occupation Psychographics What is important to them Activities, Interests, Opinions Lifestyle Customer Type Awareness/Relationship Preferences & Behavior What do you know about Your Customers? Non-customers Perceived barriers? 10
11 The Competition Who are they? Comparison Competitor Value to Customers Strengths Weaknesses Competitor A- Competitor B- Competitor C- 11
12 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Place (on/off farm) Roadside stands Farm markets & Pick-Your-Own operations Farmers markets and public markets Mail order, Internet-based sales & CSA Community Supported Agriculture (Delivery) Auctions, Festivals & Other Events On location sales calls (delivery) Restaurants, Specialty Grocers, Institutions Other 12
13 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Place- distribution Own delivery direct-to-buyer Shared delivery with other producers Pre-arranged pick up points Wholesaler or distributor working with restaurants Each system has benefits/limitations and costs 13
14 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Place- distribution/storage How can you keep your product quality? (on/off farm) Harvest to Delivery Cost of Distribution and Storage 14
15 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Promotion Print Business Card Brochure Price List Electronic Website Social Media (blogs, twitter, instagram, facebook, youtube) Other Elevator Pitch Directory Listings Uniforms Keep Your Branding in Mind! 15
16 Marketing Activity Who/Why Cost Success Indicator 16
17 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Promotion- PR Get involved in community activities Help sponsor community events Acknowledge referrals Press Releases (pre-write press releases for every week of busy season) Contests Media link on website with story ideas Deliver samples of first picked to five most popular media outlets along w/media packet other influential people Be an Expert Speaker (speak to civic organizations (30-60 days before busy season) Have an answering machine message Cross Promotions &Cooperative Marketing 17
18 OSU South Centers OHIO STATE UNIVERSITY EXTENSION The Price What are customers willing to pay? What is your break-even point? Are all costs covered? How much profit do you want to make? What is your competition charging? 18
19 How Much $? Pricing Objectives? Bottom Up ALL costs are starting point, then influences such as competition & market tolerance Top Down Analyze range, set retail price, then analyze - costs covered / profit enough? What are customers willing to pay? (supply & demand, seasonality, competition, unique factors, perceived value) - What image convey? Penetration, Rate, Skim - Other Strategies: Bundling, Loss Leader, Impulse 19
20 OSU South Centers OHIO STATE UNIVERSITY EXTENSION Pricing my product Formula A Materials + Labor (production time x hourly rate) divided by number of units/lbs= selling price per unit Monthly: $ (100 hours x $8/hr)/ 120lbs= $15/lb Formula B Materials + Overhead+ Labor (production time x hourly rate) divided by number of units/lbs= selling price per unit Monthly: $1000+ $200+ $800/ 120lbs= $16.60/lb Formula C Materials + Overhead+ Labor + Profit divided by number of units/lbs= selling price per unit Monthly: $1000+$200+$800+$150/ 120lbs= $17.91/lb Match this up to your GOAL/Income needed. Are you short, can you produce what you need to? 20
21 Kelly O Bryant, Business Development Specialist The Ohio State University South Centers 1864 Shyville Rd. Piketon, OH Obryant.6@osu.edu 21
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