Finding Your Market Using Indiana MarketMaker

Dr. Maria Marshall

Department of Agricultural Economics

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

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.

Linking Seller and Buyer• The seller’s four Ps

– Product– Price– Place – Promotion

• The buyer’s four Cs– Customer benefit– Customer cost– Convenience– Communication

What is a market?

• A market is the set of all actual and potential buyers of a product.

• Consumer interest is not enough to define a market.

What is Your Market?• Consider:

– Market Definition – Market Trends – Market Type – Product Knowledge – Sales Area – Early Responses – Market Penetration

Understanding Your Market

• Who are our customers and what do they want?

• Who are our competitors and what do they bring?

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?

Benefits• Value Benefits

– Quality– Delivery– Service– Technology– Personalization– Shopping ease

• Cost Benefits– Lower costs– Scale savings– Scope savings– Learning– Organizational

practices

Quick Competitor Analysis

Customer Seeks

Competition Offers

You Offer

Quality

Exclusivity

Lower Prices

Delivery

….

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.

Creating Value Communicating Value

Customer Perception and Demand

• Milk quality • Yogurt maker• Equipment• Quality of people• Unique products• Price• Location• Facilities• Unique services• Others?

• Advertising• Sales team• Customer list• Physical facility• Awards•Reputation/image• Newsletters• Tastings• Special events• Others?

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

Finding Your Target Market

Using MarketMaker

Indiana MarketMaker

Prepared by Maria MarshallDepartment of Agricultural Economics

Partner Sites

Online Now• Illinois• Kentucky• Ohio• Michigan• Iowa• Georgia• Nebraska• New York• Mississippi

In Progress

• Colorado• South Carolina• District of Columbia

Who should use MarketMaker?

Farmer

• 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

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

Producer Perspective

• Find consumers

• Find processors

• Find restaurants and specialty stores

• Find farmers markets

Food Entrepreneur Perspective

• Find farmer

• Find processor

• Find consumer

• Find retailer

Consumer perspective

• Find farmers

• Find farmers’ markets

• Find restaurants

• Find specialty stores and markets

USING INDIANA MARKETMAKER

From the Producer or Food Entrepreneur Perspective

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

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Finding Consumers

• Zoom in– Closer look at consumers around

Indianapolis– Draw a block around Indianapolis

• Find Business– Farmers market

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

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

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Map it

Purdue University is an Equal Opportunity/Equal Access institution.

Detail

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

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

USING INDIANA MARKETMAKER

From the Consumer Perspective

Find a Business

• Farmer – Produces dairy

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Find a Business

• Winery– Indiana wineries– Native varietals

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Find A business• You live in Vincennes and want to know where the

nearest farmers markets are to buy products for your restaurant.– Find Business– Multistate: Indiana, Illinois and Kentucky– Map all– Block off the area near Vincennes– View results

• Provides a list of the farmers markets in the blocked off area.

• Can map individual farmers market• Can view detail on individual farmers market

Other MarketMaker areasBuy & Sell Forum

Case Studies

Resources

Buyer & Sell Forum

• Looking to buy products

• Looking to sell products

• Looking to provide processing services

• Looking to provide transportation for ag products

Purdue University is an Equal Opportunity/Equal Access institution.

Case Studies• Example: Increasing Manufacturing Output

– Ingrid want to use MarketMaker to learn how to locate all the manufacturers that will do contract canning of jellies, sometimes called co-packers.

• Step by step instructions– From the begin search database, select Find a

Business– Select Processor– Select Fruit and Vegetables– Select State, click Search

Resources

• Fact Sheets and Publications

• Related Web-sites

• Glossary– A list of MarketMaker and Industry terms

• Profile glossary of census definitions such as census tract, age, household, foreign born

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

Purdue University is an Equal Opportunity/Equal Access institution.

www.inmarketmaker.com