1. Ag & Resource Economics
Marketing Basics
Written by
Annette Dunlap, MBA
Extension Associate
Ag & Resource Economics
NC State University

2. The Value-Added & Alternative Agriculture Start-up Toolkit
Program Outline
Understanding the meaning of marketing
The “4 P’s” of the Marketing Mix
Creating a product that sells
Setting a competitive price
Successfully promoting the product
Getting the product to the customer
Resources
The Value-Added & Alternative Agriculture Start-up Toolkit

3. The Meaning of Marketing
Marketing is:
Identifying the needs of wants of your customer and developing a program that will satisfy those needs or wants
Marketing is not:
Selling
Advertising
A good price
The Value-Added & Alternative Agriculture Start-up Toolkit

4. The ‘4 P’s’ of the Marketing Mix
A successful marketing plan is designed around the identified needs of the customer. It is an interlocking program that addresses these four areas:
Product
Price
Promotion
Logistics (Place)
The Value-Added & Alternative Agriculture Start-up Toolkit

5. Characteristics of Products
Have both tangible and intangible parts
The tangible part of the product is observed with one or more of the senses
The intangible part of the product is often the reason people buy it:
a good relationship with the seller
perceived higher quality
ease of access to the place of purchase
The Value-Added & Alternative Agriculture Start-up Toolkit

6. Sellers tend to sell features, but buyers purchase benefits.
The Value-Added & Alternative Agriculture Start-up Toolkit

7. The Value-Added & Alternative Agriculture Start-up Toolkit
Pricing Strategy
People choose on price when they cannot perceive a difference between your product and your competitor’s
Price needs to reflect your costs plus a mark-up to give you a profit
Price needs to be fair and appropriate to the market
The Value-Added & Alternative Agriculture Start-up Toolkit

8. Successfully Promoting Your Product
Promotion is a strategy designed to:
Communicate information about your products
Set you apart from your competitors
Help people make a decision about what you have to offer
The Value-Added & Alternative Agriculture Start-up Toolkit

9. Getting Your Product to the Customer
Value-added and alternative agriculture enterprises depend upon being geographically close to their customers for success.
Consumers consider the ease of buying as part of their decision process when looking for value-added and alternative products
The Value-Added & Alternative Agriculture Start-up Toolkit

10. The Value-Added & Alternative Agriculture Start-up Toolkit
Resources
For an overview of marketing basics, visit:
For a review of how to create a marketing plan, visit:
For information on home-based marketing, visit:
For a review of different approaches to marketing, visit:
The Value-Added & Alternative Agriculture Start-up Toolkit