Transcript Marketing - University of Minnesota

Marketing Plan
 Marketing plans typically include:
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Market/buyer description
Product description
Competition overview
Pricing strategy
Promotion strategy
Distribution strategy
Inventory and storage strategy
Risks and resources
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Business Plan software can be used to
develop a marketing plan for:
Traditional, bulk commodities
Specialty commodities and value-added
products
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Business Plan software asks questions and
offers tips about:
 Current markets
 Potential new markets
 Pricing strategy
 Promotion and distribution strategy
 Storage and quality control
 Resources – suppliers, contractors, competitors
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
If marketing traditional commodities,
software such as Marketeer can help
with forward contracting strategies.
Marketeer can be imported into the
Business Plan Software.
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
The Business Planning Guidebook can
be used by anyone but worksheets are
geared toward managers interested in:
Specialty commodities
Value-added products
Services
Alternative distribution
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Specialty commodity examples:
Varieties – blue corn, high oil
Non-GMO
Organic
Agraceuticals
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Value-added product/service examples:
Processed -- meat, dairy
IP grain drying and storage
B&B
Hunting preserve
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Alternative distribution examples:
Wholesale
Retail
Direct where buyers include individuals,
restaurants, and institutions
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Business Planning Guidebook asks questions
about:
 Current markets (Worksheet 2.2)
 Buyer preferences (Worksheet 4.1)
 Projected sales volume (Worksheet 4.2)
 Product uniqueness (Worksheet 4.3)
 Competition (Worksheet 4.4)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
More Guidebook questions about:
Distribution (Worksheet 4.5)
Pricing (Worksheet 4.6)
Promotion (Worksheet 4.7)
Inventory and storage (Worksheet 4.8)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 The questions you answer and resources you
use will depend on whether the strategy is to
market:
 New specialty commodities to current buyers
 New products or services to current buyers
 Current commodities to new distributors/buyers
 New commodities/products to new
distributors/buyers
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Some of the easier strategy questions
to answer:
How to price product
How to promote product
How to store and transport product
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Harder strategy questions to answer:
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How
How
How
How
much buyers will purchase
your competition will respond
prices may change in long-run
regulations may change
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Characteristics of Specialty Commodity
Markets
Not fluid
Immature markets; volatility
Lack of transparency and resources
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Marketing strategies typically fall apart
when:
Sales don’t materialize
New competition enters market
Buyer preferences change
Strategy unrealistic from the start
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
What can you do to help business
managers develop realistic marketing
strategies?
• Ask the hard questions
• Share examples
• Identify resources
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Encourage managers to do their homework:
 Contact potential buyers
 Ask questions
 Review contracts
 Be realistic, honest about sales potential
 Observe and learn about competitors
 Get outside opinion
Copyright © 2003 Center for Farm Financial Management, University of Minnesota