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Is E-Marketing
Right for You?
Linda B. Landrum
Regional Specialized Agent
UF/IFAS North Florida REC – Suwannee Valley
Marketing is….
communication between company
and customers that influences
customers’ purchases.
Computers on Farms
• 55% of US farms own or lease
computers
• Only 31% of US farms use computers
for their farming business
(Farm Computer Usage and Ownership report,USDA
National Agricultural Statistic Service (NASS); July, 2005)
What savvy farmers have learned
about web-based marketing
• Can be an important part of doing business today
• Can increase sales through increased visibility
• Higher level of online services and quality, requires
more investment and expertise
• Be sure customers are willing to pay for level of service
• Freshness and organic certification are important
competitive advantages
• Delivery areas may need to be limited
• Use of delivery and sales at farmer’s markets or central
pick-up point to reduce costs
• Experiences in order fulfillment throughout farm
catalogs is an advantage
Attra-News Sep/Oct 2005
Internet Users
• Globally, 934 million people have used
the Internet as of Dec. 2004
• US = 185.5 million
• Canada = 20 million
Global Users of the Internet
are predicted to increase to
1.2 billion by 2006
(Computer Industry Almanac)
What is a “User”?
The definition of “User” varies widely:
• How often does the person log on to the internet?
• How long is the person on the internet each time?
Active User of Internet
• Average time that active users spent on
the internet in 2001 was 15 hours per
week
(Jupiter Media Matrix)
• “Active User” is on the internet at least
1 hour per week excluding email and
chat activity
(Emarketer.com’s definition)
Typical Usage of Internet
• 55% used for communication
rooms, text messaging)
• 20% for playing games
• 15% for surfing
• 10% for shopping
(SIQSS)
(email, chat
$87.5 billion spent online in
2004
(Customer Respect Group,
Massachusetts)
Top Rated Websites in
2004
Payless Shoe Source
CVS
L.L.Bean
Customer Respect Group 2005
Age of Internet Users
Age Group
18 – 24
Using the
Internet
73%
Bought Online
Past 12 Months
25%
25 – 34
62%
39%
35 – 44
55%
34%
45 – 54
55%
43%
55 +
36%
29%
(Bristol Group, 2000)
Items Purchased Online
Computer Software
15%
Computer Hardware
12%
Books
13%
Music
11%
Groceries – generic
0.6%
Groceries – brand
0.3%
Recreation
1.3%
Travel
7.7%
(GVU Center, 10/98)
Incentives That Would
Increase Buying
Prices
74%
Compare Prices
45%
Security
38%
Find Items
38%
Customer Service
37%
Easier Returns Policy
37 %
Loyalty Rewards
22%
(Jupiter Communications, 4/00)
Shopper Orientation
Recreational
16.89%
Price Conscious
16.89%
Community-Oriented
12.79%
Involved
12.79%
Convenience-Oriented
12.79%
Apathetic, Convenience-Oriented
12.33%
Personalizing
11.87%
Percentage of type shopper in study entitled “Buying
or Browsing”; an exploration of shopping orientations
and online purchase intention. European Journal of
Marketing, 2003
Factors Affecting
Purchase Intention
• Product type
• Prior purchase experiences
• Gender
Internet shopping is not just
for convenience-oriented
shoppers, so use a more
holistic approach to
marketing.
Reasons Why Not Likely to
Shop Online
• #1 = fear of credit card numbers being
stolen
• Personal information will be abused
• Previous problem with online purchase
such as misrepresented
products/services, incorrect billed
amount, and product never delivered
• Does not have credit card
Caravan® Survey 2001
Ways to Create
Customer Loyalty
•
•
•
•
•
Deliver great service
Gain the customer’s trust
Understand your customers
Communicate
Customize and personalize
Australasion Marketing Journal 10(1), 2002
Ways to Create
Customer Loyalty
•
•
•
•
•
Be responsive
Create a sense of community
Integrate
Create involvement
Offer them an option
Australasion Marketing Journal 10(1), 2002
Factors Affecting Online
Marketing Success
• Type of products sold
• Having an up-to-date company web site
• Time availability
• Expertise
• Regularly emailing customers
Washington State University
“E-Marketing appears to be
complementary to conventional
direct marketing methods
adding on average, a 27%
increase in total sales.”
Internet Direct Marketing Success of Farm
Business in the US: A Web-based Survey.
Types of Web Pages
Web Page as Billboards
Web Page Billboard Plus Email
http://www.lookoutfarm.com/
Web Page as Newsletter
http://www.localharvest.org/farms/M3570
Web Page Directories
http://www.fgga.org/upickdirectory.html
Web Page Store
http://www.beechhillfarm.com/bakery.htm
Web Page Design
• Own design
• Design by Agricultural Association/
Organization
• Commercial Webmaster
• Compare prices and services available
Need Help?
Good places to learn about website options:
• USDA’s How to Direct Market on Internet Publication
http://www.ams.usda.gov/tmd/msb/pdfpublist/internet
marketing.pdf
• Small Business Development Center’s E-Commerce
Guide
http://sbdcnet.utsa.edu/sbic
• Agricultural Marketing Resource Center
http://www.agmrc.org/agmrc/business/operatingbusine
ss/emailmarketinglinks.htm
• E-Commerce Digest
http://www.ecommerce-digest.com
• E-Commerce Product Review Guide
http://products.ecommerce-guide.com
Characteristics of a Good
Web Page
• Organized & Current
• Quick to load, with working links
• Easy to see all parts and find items
• No more than 2 clicks to any part
• Appealing to customers:
– Eye-catching
– Secure transactions
– Personalized
– Constantly changing
Security Concerns
SSL: Secret Socket Language
• Software that scrambles data during transmission
• Protects against non-authorized use of data
Domain Name Registration
• Brainstorm for a catchy, representative
name
• Have alternative names ready
• Select company accredited as registrar
by ICANN
• Where to check if available:
– www.internic.net
Domain Name Examples
• http://www.goatladydairy.com
• http://www.king-ranch.com/
• http://www.flfarmandfeed.com/
• http://www.florida-farmers.com/
• http://www.floridafarmbureau.org/
Customers Sources for Websites
•
•
•
•
•
Search Engines
Email Messages
Websites
Word of Mouth (off line)
Media
– Magazines
– TV
– Radio
• Banner Ads (online)
• Direct Mailings
Packaging Considerations
• Retail size
• Maintain postharvest product quality in
transit
• Weight
• Costs
Shipping Issues
• Costs per pound
• Delay
• Logistics
– Drop off
– Pick up
Other Considerations
• Technical Support
• Web Page Maintenance
– Monitoring Use (Email, Orders)
– Errors and Accuracy (Product Availability)
– Upgrades and changes
Expected Trends
“Being online…is becoming as
important as being in the phone book.
If you want people to contact you at
all, you’d better be listed.”
B. Smith & F. Catalone
Marketing Online for Dummies
Where Do You Go From Here?
• Identify your internet goals
• Web page or not?
• If not,
– use other places to advertise your farms such as
these free sites
• Pick Your Own
www.PickYourOwn.org
• Florida Market Bulletin
http://www.florida-agriculture.com/fmb/place_ad.htm
• Local Harvest
http://www.localharvest.org/register.jsp
• Farm Locator
http://www.newfarm.org/farmlocator/
• Sunshine Farmers Market (Florida Farm Bureau
members)
www.sunshinefarmersmarket.com
• If yes,
– Develop a web page budget as part of your
farm marketing plan
– Network with your current customers, other
businesses, etc.
– Seek information and assistance needed
– Set short term goals and re-evaluate
periodically
To succeed on the
internet, your company
must foster closer
customer relationships in
the face of technology!
Thank You
• For more information visit the
Small Farms web at
http://smallfarms.ifas.ufl.edu
• Take a virtual field day tour by
visiting the Virtual Field Day web
at http://vfd.ifas.ufl.edu
This presentation brought to you by the
Small Farms/Alternative Enterprises Focus Team.
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