Using Best Strategies and Psychologyto Drive Sales at Markets

rbcrowder@21acres.org

Robin B Crowder

Marketing ConsultantSustainable Agriculture and Business Development

Director, Marketing and Development21 Acres Center for Local Food and Sustainable Living

1. To Avoid Pain2. Create More Pleasure

“People do not buy things. They buy the usefulness that things provide. They buy what the thing will enable them to do or be.”

Key to sales: products that create meaning for the buyer and help avoid pain and create pleasure

Why do people buy?

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Behavioral Economics = Marketing Psychology

What is behavioral economics?

“The study of psychology as it relates to economic decision making processes...”Nudge, Switch, Predictably Irrational

Behavioral economics looks at decision-making process of buying

Use BE in conjunction with creating meaning for buyers and making buying easy

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Behavioral Economics = Marketing Psychology

Three themes predominate: Heuristics: People make decisions based on

approximate rules of thumb, not strict logic Framing: Collection of anecdotes and stereotypes

making up mental emotional filters that individuals rely on to understand and respond to events

Marketplace: Pricing, promotion, placement and product; non-rational decision making

AND, importantly making sales transactions easy

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Consumer Behavior StudyFood Marketing Institute Jan. 2013 Conference:

A comprehensive study into food culture shifts, suggests we have become an "eating culture" that requires retailers and manufacturers to reconsider traditional approaches to how they market food.*

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*Hartman Group and Daymon Worldwide“Reframing Retail Through The Lens of Changing Food Culture” Based on ethnographic interviews in Seattle, Detroit and Dallas

Consumer Research Study Cont. “Food, and where consumers buy it, is evermore central

to personal identity. We truly are where we shop and what we eat.”

“Consumers seek variety, avenues of discovery, try different kinds of cuisines, greens, grains and salts.”

Brand loyalty is no longer a given. It’s not that consumers are disloyal; they just want to try new things.”

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Consumer Research Study Cont. “Consumers shop with eating in mind.

What they want depends on what makes up the occasion: who, what, where, how and why.”

“They prefer retailers who “get them,” not a one-size-fits all approach.”

“When all else is equal, price [and payment methods] matters, and consumers like clear, differentiated choices.”

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RBC Guarantee

Employ these marketing psychology strategies to take advantage of behavioral economics and make a direct impact on revenue immediately – the next market day.

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Give customers a reason to buy – then make it easy for themusing psychology and behavioral economics

Set the background.

Use “framing”

Build relationships.

Tell stories about: children, animals, seeds, supplies, equipment, etc.

Marketing Psychology: Stories

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First impressions are formed within first 10 seconds. Typical retail rates of perception:

83% sight11% hearing3.5% smell1.5% touch1% taste

Taste is significantly higher in a direct market environment, perhaps #2Need to cut through the sensory chaos – visual, physical and auditory – and reach customers

Marketing Psychology: Sensory

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In general, customers: don’t want to act dumb don’t want to be ill-informed want to be told what to do buy products on impulse don’t want to have to ask a price are curious like to be experts want to be treated special are inspired by the rich and famous

Marketing Psychology: What customers want and don’t want

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Marketing Psychology: Convey success

People want to buy fame and fortune. Share how others use your product:

chefs, spas, general customers, wedding planners, rich and famous

Tell how your product solved a problem (avoid pain; more pleasure)

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Cont....In general, customers: don’t want to ruin displays spend more money

than they think they will/do like to buy in groups/things

that go together want a bargain but

will pay top price confer and seek

advice from others

Marketing Psychology: What customers want and don’t want

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Cont....In general, customers: Want you to take their money

when they are ready, they don’t want to wait

Have different methods of payment

They want to know what forms of payment farmers take without having to ask

Marketing Psychology: What customers want and don’t want

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Marketing Psychology: Display Cultural bias - right-left-right Use repetition Step products Use pyramid Radiate displays Look for ideas

elsewhere,grocers, hardware stores, farm and garden, etc.

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Two checkers, two cash boxes

Display of sameproduct on opposite sides

Place things where allpeople can reach them – Avg Woman’s height, 5.2

Marketing Psychology: Logistics

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Resting spots for eyes Resting spots for baskets/bags

Marketing Psychology: Display

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Differentdisplaysfor differentstyles

Marketing Psychology: SalesIf you don’t do anything else that we talk about today, you must at least do this: “Product of the Day” (does not need to be on sale)

What’s new today? And, the “Magic of the Pedestal”

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Marketing Psychology: PricingPricing strategy: Be creative Offer alternatives,

experiment Display and price same

product differently (provide pre-weighed, bundled, and not bundled) see what sells, probably all will sell

Consider how to sell Grade B productrbcrowder@21acres.org

Marketing Psychology: SalesBe an involved sales person Ask for the sale Suggest add-ons Farmer guarantee Provide farmer favorites

Here, take this. Try it for free. Tell me what you think next week.

Recipes – this is a must do! Vendor favorite, Manager favorite,

Children’s favoriterbcrowder@21acres.org

Marketing Psychology: Call to Action

Recipes (One of life’s great mysteries is why doesn’t every vendor dothis all the time?)Make recipes sales tools

Create a sense of urgency (What could be more urgent than asparagus season?)Seasonality, pricing, limited supply, certain varieties

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Marketing Psychology: MaximizeWhat do you do to create additional sales farm to market and market to farm?Market:

On-farm events/salesOther sales locationsCSA membership

Farm: Market specialsMove grade B product

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Signs sell – Create meaning for buyers -- heuristics

Ask yourself: Do your signs convey:

Price? Value?Variety? Promotion?Humor? Attributes?Usage? Place?

Marketing Psychology: SignageThe good, the bad and the ugly

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Marketing Psychology: SignageThe good, the bad and the ugly

rbcrowder@21acres.org

Marketing Psychology: SignageThe good, the bad and the ugly

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Questions?

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Robin B CrowderMarketing and Development Director

21 Acres Center for Local Food and Sustainable Living