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Product, place, price and promotion
A useful way to think about marketing focuses on the four P's: product, place, price and promotion. The key is to use these four P's to create value.
1. Product: Remember, your product needs to satisfy the wants and needs of your potential and current customers. Think about what makes your product distinctive or better than other products, and your customers' perceptions of your service, image, brand and quality. Product can also include processing and packaging.
2. Place is where and how the product meets the customer: a roadside stand, farmers markets, online or telephone sales, on-farm sales, and so forth. Place can mean selling directly to the consumer or to a chef, retailer, wholesaler or broker. Your decision about the best place to market your product will have a big impact on your other strategies, including price and promotion, so it's important to consider early in the development of your marketing plan. A mix of different places or market channels can often be a good strategy.
3. Price is the cost to the customer, the amount of money exchanged for the benefits of the product or service. Before you set a price, consider costs, margins or markups and competition. Your goal should be to deliver value to your customers while earning enough for yourself to stay in business.
4. Promotion: There are many creative ways to reach potential customers and promote your products. Promotion may include referrals, free samples, incentives, radio advertisements or an Internet presence. Try to find ways to track the impact of your various promotional strategies. The key is to develop the necessary contacts, maintain relationships with your customers and budget for these expenses. Too often, people think of marketing and promotion as the same thing. In fact, promotion is the final piece of the marketing puzzle, best tackled only after you have a good handle on the other three aspects.
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Farmer-to-Farmer"Based on my experience, marketing had better be an important part of your business plan, because it will take around 30 percent of your time each week. This is different from how most farmers perceive themselves. This means more than just working in the fields. It means putting orders together, talking with customers, packaging, invoicing and delivery."
~Brian Moyer
Fleetwood, PA
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