Using Best Strategies and Psychology to Drive Sales at Markets.
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Transcript of Using Best Strategies and Psychology to Drive Sales at Markets.
Using Best Strategies and Psychologyto Drive Sales at Markets
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?
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
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
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.*
*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.”
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.”
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.
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
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
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
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)
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
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
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.
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
Resting spots for eyes Resting spots for baskets/bags
Marketing Psychology: Display
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”
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 [email protected]
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 [email protected]
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
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
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
Questions?
Robin B CrowderMarketing and Development Director
21 Acres Center for Local Food and Sustainable Living
