Is E-Marketing Right for You?Is E-Marketing Right for You?

Linda B. LandrumRegional Specialized Agent

UF/IFAS North Florida REC – Suwannee Valley

Linda B. LandrumRegional 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 (email, chat

rooms, text messaging)

• 20% for playing games

• 15% for surfing

• 10% for shopping

(SIQSS)

$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 Using the Internet

Bought Online Past 12 Months

18 – 24 73% 25%

25 – 34 62% 39%

35 – 44 55% 34%

45 – 54 55% 43%

55 + 36% 29%

(Bristol Group, 2000)

Items Purchased Online

(GVU Center, 10/98)

Computer Software 15%

Computer Hardware 12%

Books 13%

Music 11%

Groceries – generic 0.6%

Groceries – brand 0.3%

Recreation 1.3%

Travel 7.7%

Incentives That Would Increase Buying

(Jupiter Communications, 4/00)

Prices 74%

Compare Prices 45%

Security 38%

Find Items 38%

Customer Service 37%

Easier Returns Policy 37 %

Loyalty Rewards 22%

Shopper OrientationRecreational 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 cardCaravan® 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

• Be responsive• Create a sense of community• Integrate• Create involvement• Offer them an option

Australasion Marketing Journal 10(1), 2002

Ways to Create Customer Loyalty

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 Publicationhttp://www.ams.usda.gov/tmd/msb/pdfpublist/internetmarketing.pdf

• Small Business Development Center’s E-Commerce Guidehttp://sbdcnet.utsa.edu/sbic

• Agricultural Marketing Resource Centerhttp://www.agmrc.org/agmrc/business/operatingbusiness/emailmarketinglinks.htm

• E-Commerce Digesthttp://www.ecommerce-digest.com

• E-Commerce Product Review Guidehttp://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. CataloneMarketing 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 Bulletinhttp://www.florida-agriculture.com/fmb/place_ad.htm

• Local Harvesthttp://www.localharvest.org/register.jsp

• Farm Locatorhttp://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.