Marlo full e book english by MARLO- LOVE LOCAL FOOD

MARKETING PILLS & CASE STUDIES

Do you want to improve the competitiveness of your business? Keep Readingâ&#x20AC;Ś

This project has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.

What is MARLO project? The MARLO project aims to improve the competitiveness of rural SMEs by introducing a Methodological Training Tool in Marketing of Local and Organic Food Products, and to encourage sustainable development of rural areas. The project is based upon the transfer of the results of LdV project ProudFarmer that was successfully completed by a partnership of 6 organisations from Latvia, France, Italy, Slovenia and Romania in 2010. Adapted training programme will be tested and evaluated in Spain, Latvia, Cyprus and Lithuania. The objectives of MARLO include needs analysis; sharing experiences in promotion of local and organic products and marketing training; adaptation of ProudFarmer training tool to the requirements of the target group and project countries; testing and evaluation; creation of local and international networking and cooperation opportunities for the target group; dissemination and preparation of appropriate mechanisms/processes for further exploitation of project results.

About the training tool… The tool has been developed according to the results of the need analysis carried out by the partners, and consists of three parts:

 Marketing knowledge pills. You can read the full e-book or consult those pills in which you have more interest.

 Study cases, aiming is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products, attracting more customers and diversifying their business.

 Videos illustrating these study cases.

Your opinion is important… Your feedback is important to improve the tool. After finishing reading the materials and watching the videos, the final step is to give us your opinion by filling a brief online questionnaire; we only need 5 minutes of your time. This is the link to the questionnaire: …….

MARKETING PILLS

TABLE OF CONTENTS 1. First principles of Marketing 1.1. Marketing Concept 1.2. Reasons to get started 1.3. Starting thinking different 2. Entering into the market 2.1. Rapid globalization 2.2. Sustainable marketing 2.3. Digital age 2.4. The growth of non-profit market 2.5. The changing economic environtment 3. Market research and marketing strategy 3.1. Basics of market research 3.2. How to perform market research 3.3. Marketing strategy 3.4. Selecting the target market 3.5. Introducci贸n al marketing mix 3.6. The product 3.7. The price 3.8. The place 3.9. The promotion 3.10. New approaches to marketing mix 4. Branding and Social Media 4.1. The branding 4.2. Brand Strategy 4.3. Social media 4.4. Social media strategy 4.5. Advantages and risks of using social media.

1.1. MARKETING CONCEPT

Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Philip Kotler) This definition includes following core concepts:

NEEDS, WANTS and DEMANDS

 NEED: A state of felt deprivation of some basic satisfaction ( Food, Clothing, Shelter, Belonging etc. )

 WANTS: Wants are desires for specific satisfiers of the deeper needs. Needs are few and wants are many.

 DEMANDS: are wants backed by ------Ability to buy and Willingness to buy PRODUCTS, VALUE & SATISFACTION

 Anything that can be offered to someone to satisfy a need or want is a product.  Product refers to physical object. The concept of product is larger than tangible goods/articles/commodities, as it covers services, organizations, events, ideas, etc.” thus, good is a physical object, but not product”. Source: principles of marketing, Philip Kotler.

 Services refer to intangible object EXCHANGE & TRANSACTIONMARKETS & MARKETERS

 Value is the customers’ estimate of the Product’s capacity to satisfy a set of goals  Value is the ratio between what the customer gets and what he gives (Value=Benefits/Costs)

 Customer gets benefits & assume costs  WHEN: o Customer Expectance=Performance (satisfied)

o Customer Expectance>Performance (dis-satisfied) o Customer Expectance<Performance (Highly satisfied)

 Exchange is the act of obtaining a desired product by offering something in return. Exchange takes place when 5 conditions are satisfied:

 Two parties should be there - in a physical or non phsysical way (E-commerce).  Each party must have something of value to the other  Each party is capable of communication & delivery  Each party is free to accept or reject the offer  Each party believes that it is appropriate to deal with the other party There are FIVE competing concepts under which organizations conduct their marketing activities:

The Production Concept. This concept is the oldest of the concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features. The Product Concept. This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However, these managers are sometimes caught up in a love affair with their product and do

not realize what the market needs. Management might commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead people to beat a path to its door. The Selling Concept. This is another common business orientation. It holds that consumers and businesses, if left alone, will ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. This concept assumes that consumers typically sho9w buyi8ng inertia or resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective selling and promotional tools to stimulate more buying. Most companies practice the selling concept when they have overcapacity. Their aim is to sellwhat they make rather than make what the market wants. The Marketing Concept. This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The marketing concept rests on four pillars: - target, integrated marketing, profitability.

SALES CONCEPT VS. MARKETING CONCEPT 

The Sales Concept focuses on the needs of the seller. The Marketing Concept focuses on the needs of the buyer.

 The Sales Concept is preoccupied with the seller’s need to convert his/her product into cash. The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs). The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve competitive advantage (the core of our business, which makes us different and inimitable). This philosophy is the foundation of consultative selling. The Marketing Concept has evolved into a fifth and more refined company orientation: The Societal Marketing Concept. This concept is more theoretical and will undoubtedly influence future forms of marketing and selling approaches. The Societal Marketing Concept. This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being.

This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty, and neglected social services. Are companies that do an excellent job of satisfying consumer wants necessarily acting in the best long-run interests of consumers and society? The marketing concept possibly sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare. Just consider:

The fast-food hamburger industry offers tasty beauty unhealthy food. The hamburgers have a high fat content, and the restaurants promote fries and pies, two products high in starch and fat. The products are wrapped in convenient packaging, which leads to much waste. In satisfying consumer wants, these restaurants may be hurting consumer health and causing environmental problem.

Organizations that hold this belief readily acknowledge that customers are the driving force behind their businesses.

The marketing concept is an integral part of the marketing plan.

Why is Marketing important? Marketing starts with the customers and ends with customers. Meaning thereby, marketing starts with the identification of needs and wants of customers and ends with satisfying it with product or services. Marketing has its origin in the fact that humans are creatures of needs and wants.

Need and wants create a state of discomfort, which is resolved through acquiring products that satisfy these needs and wants. Most modern societies work on the principle of exchange, which means that people specialize in producing particular products and trade them for the other things they need. They engage in transactions and relationship building. A market is a group of people who share a similar need. Marketing encompasses those activities involved in working with markets, that is, the trying to actualize potential exchanges. Marketing management is the conscious effort to achieve desired exchange outcomes with target markets. The marketer’s basic skill lies in influencing the level, timing, and composition of demand for a product, service, organization, place, person or idea. Marketing can be vital to an organization’s success. In recent years numerous service companies and nonprofit organizations have found marketing to be necessary and worthwhile.

Clues to make a good marketing Most established businesses trade with customers they have known for years. This may leave you feeling you have little choice about who you sell to and how. But this is a mistake. By analysing your products and services you can improve the effectiveness of your marketing activities and improve the performance of your business overall. Good marketing involves attention to detail and knowing as much as possible about your customer, their demands and their business. It includes research to ensure your product has a ready market. It benefits from the correct promotional activities and after sales service. For example:

 the growth and bargaining power of supermarkets,  the influence of the welfare lobby,  pressure for a healthy diet  government action on food safety, etc They all have an important influence on the way a farm produce is marketed. Those who are involved in this sector of industry, but who ignore these trends are sure to slip behind. This is an example of being aware of the dynamic nature of the marketing environment.

Factors leading to the increasing importance of marketing

FURTHER READING Latvian Company Very Berry Ltd for Marketing concept suggest first: - Understand what You want to be! - Find Your values! - Define Your client! (https://www.youtube.com/watch?v=MrJYF2ucHTc&feature=youtu.be )

ProudFarmer Project (2010), Methodological Training Tool in Marketing, 1. Marketing of Local and Typical Products, 1.1. First Principles of Marketing. http://www.ddegjust.ac.in/studymaterial/pgdapr/pgdapr-105.pdf http://www2.nau.edu/~rgm/ha400/class/professional/concept/Article-Mkt-Con.html

1.2. REASONS TO GET STARTED

During a time when it is more important than ever, businesses must run seamlessly. Their operations need to be lean and efficient. Because the main purpose of any business is to create value .The business enterprise has two—and only two—basic functions in order to be competitive: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, which is from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the company.

Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. Marketing helps to map out the decisions you have made to determine the future success of your business.

10 Reasons to Market your Business 1.

You’ll make more sales

When people know your business exists, they’re much more likely to become your customers. If your marketing campaigns are doing their job properly, you’ll start to see an increase in sales shortly after you get started 2. You’ll increase awareness Sometimes your best customers might see your advertisements hundreds of times before they buy anything. A lot of people see an ad or online recommendation and, instead of buying straight

away, remember the brand name for future reference. Raising awareness plants your business’s brand, its product, and its benefits in the mind of your target audience. You’ll learn your metrics Whether you’re marketing a bakery or an enterprise software company, knowing your metrics is the key to keeping your marketing campaigns profitable. If you can pinpoint exactly how much your average customer is worth, you know exactly how much you can afford to spend acquiring each new sale. Launch campaigns, get as much data as possible, and trust your metrics. Once you’ve got the data, you’re in the power position to grow your business and increase sales 3.

4. You’ll make consumers trust you Who do you trust more: your friend or a complete stranger? The more well-known your company becomes, the more people will trust you. The more people trust you, the more likely they are to buy your products and services. The earlier you start marketing your business, the longer your target audience will have known you. Start early and build a relationship with your target market that forms an image of sturdiness, reliability, and honesty and people will respond by trusting your business to live up to its image. 5. You’ll build a social asset By marketing your business now, you can build a powerful social asset that you can sell products to tomorrow. Whether you opt for an email list or a Facebook Page, giving your audience a way to connect with you gives you a powerful platform for selling products and asking your audience important questions 6. You’ll learn your Marketplace When you first start your business, your target marketplace can look as vast as the ocean. Once you start marketing, you dive below the surface and instead of seeing a massive expanse of blue water,

you start to see different communities, subcultures, and a huge network of different connections. Once you start your own campaigns, you begin to notice what your competitors are doing. This information helps you develop your own campaigns, learn more about your target audience, and get a better feel for your industry. You also start to learn why customers chose you. By polling your customers, you can learn what drove them to your product 7. You’ll discover what works By marketing your business, you quickly learn which types of advertisements and marketing tacticsare effective, and which ones aren’t effective. There are hundreds of marketing tactics you could use to find customers. From old-fashioned direct mail to search marketing, experimenting with different marketing methods helps you find the ones that work and focus on them. Stay focused on acquiring data and test, test, test 8 . You’ll develop an ‘ideal customer’ profile There’s a customer waiting out there for every business. Great marketing makes it easy for them to find you. Over time, as you build a database with the information you’ve acquired from your marketing campaigns, it also becomes easier for you to find them. Your ideal customer profile includes variables like age, income, location, hobbies and interests, and occupation. Once you’ve marketed to hundreds or thousands of customers, look at your data and search for patterns and characteristics that you could use to profile your ideal customer. The more you can learn about the people you’re marketing to, the better 9. You’ll learn how to test and optimize Knowing how to test different headlines, images, and advertisements is one of the most important skills you can possess. A headline that sounds great in your mind might barely engage your audience, while another that sounds contrived and silly could be the perfect eye-catcher for generating leads and making sales.

10. You’ll build a powerful brand Branding is what separates your business from your competitors. It’s what makes customer choose you instead of someone else. It’s your business’s style, reputation, and culture all rolled into one. Brands are essential, and without marketing your business you’ll struggle to develop a memorable, powerful brand.

And any business, of any size, will find that MARKETING is invaluable! Successful companies never stop marketing!

Marketing Principles Most businesses use a variety of marketing principles in order to optimize the market performance of existing products and to successfully launch products into a new market.

 It ensures that your marketing objectives are aligned with your business goals and strategy

 It formalizes ideas and concepts.  It keeps you focused.  It helps you establish tasks and timelines.  It can help you obtain financing. Marketing, in its basic principles and definitions, has much more to do with your everyday thinking than you can imagine, because it supports you in a better understanding of: What are the concepts used by successful business enterprises? How can I learn more market oriented approach in order to improve my business?

6 Content Marketing Principles Every Business Needs to Follow

FULFILL A NEED

•Your content should answer some unmet need or question for your customer. It needs to be useful in some way to the customer, over and above what you can offer as a product or service. In some cases, it may fill an emotional need - take Coca-Cola or Red Bull's storytelling, for example.

STAY CONSISTENT

• The great hallmark of a successful publisher is consistency. Whether you subscribe to a monthly magazine or daily email newsletter, the content is always delivered on-time and as expected. This is where so many companies fail. Whatever you commit to in your content marketing, you must consistently deliver.

BE HUMAN

•Find your voice. The benefits of not being a journalistic entity is that you have nothing holding you back from being you. Find your voice and share it. If your company's story is all about humor, share that. If it's a bit sarcastic, that's okay too.

HAVE A POINT OF VIEW

•This is not encyclopedia content. You are not giving a history report. Don't be afraid to take sides on matters that can position you and your company as an expert. Example: Lacu Bread (http://www.youtube.com/watch?v=3v5iLBOyJmA) clearly has a point of view -- that locally sourced and responsibly-produced food is superior to processed foods. Don't be afraid to take a stance.

STEP AWAY FROM THE SALES-SPEAK

•At my company, when we create a piece of content that is about our own products or services versus an educational post, it only garners 25 percent of the page views and social shares. The more you talk about yourself, the less people will share and spread your story. It's that simple.

• Although you can't get there right away, you want your content to be best of breed. This means what you are distributing is the very best of what is available in your BE THE BEST particular content niche. I know this may sound overly simplified, but if you expect OF THE your customers to spend time with your content, you must deliver amazing value. BREED

Different perceptions and viewpoints in Marketing Some important definitions are:



Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.



Marketing is the process by which an organization relates creatively, productively and profitably to the market place.

 

Marketing is the art of creating and satisfying customers at a profit.

Marketing is getting the right goods and services to the right people at the right places at the right time at the right price with the right communication and promotion.



Much of marketing is concerned with the problem of profitably disposing what is produced.



Marketing is the phenomenon brought about by the pressures of production and increased spending power.

mass



Marketing is the performance of business activities that direct the flow of goods and services from the producer to the customer.



Marketing is the economic process by which goods and services are exchanged between the maker and the user and their values determined in terms of money prices.



Marketing is designed to bring about desired exchanges with target audiences for the purpose of mutual gain.



Marketing activities are concerned with the demand stimulating and demand fulfilling efforts of the enterprise.



Marketing is the function that adjusts an organization’s offering to the changing needs of the market place.



Marketing is a total system of interacting business activities designed to plan, promote, and distribute need satisfying products and services to existing and potential customers.



Marketing origination with the recognition of a need on the part of a consumer and termination with the satisfaction of that need by the delivery of a usable product at the right time, at the right place, and at an acceptable price. The consumer is found both at the beginning and at the end of the marketing process.

FURTHER READING ď&#x192;ź

Marketing is a view point, which looks at the entire business process as a highly integrated effort to discovery, arouse and satisfy consumer needs. http://www.businessdictionary.com/definition/marketingprinciples.html#ixzz3HYEenQ4L http://marketing-specialist.net/ http://forty.co/why-successful-companies-keep-investing-in-ongoing-marketing https://www.udemy.com/blog/importance-of-marketing/ http://www.entrepreneur.com/article/229319 http://www89.homepage.villanova.edu/edward.schmitt/ppt/ppt.html http://education-portal.com/academy/lesson/introduction-to-marketing-definitionand-applications.html http://www.ddegjust.ac.in/studymaterial/pgdapr/pgdapr-105.pdf

1.3. STARTING THINKING DIFFERENT

How Customer Focused You Are? Customer focus is an essential part of any successful business. And that focus has to be integral to the culture of the business, not bolted on. Defining that culture is a key step in bringing it to life. New enterprises that create a customer-focused culture from scratch are invariably successful and there are some great examples of businesses that have done that. That's great if the business has been overtly aware of customer service from day one and has taken conscious action to safeguard and nurture the culture of the business as it has grown. Organizations focused on their customers consistently outperform their competition. These companies carefully segment their customers, develop a specific value offering for target customers and deliver an outstanding customer experience. In these organizations, everyone â&#x20AC;&#x201D; regardless of position or function â&#x20AC;&#x201D; knows what the customer strategy means for his or her job and makes decisions consistent with this strategy. Although the customer should be your prime focus you also have to keep a close watch on your competition and the market in which you operate. Customers are always right! They are the ones with the budget, the choice and a world full of connected information. And because their choices determine the success of our businesses, it pays to focus on what the customer wants. And needs. And is prepared to pay for.

Remember, you are talking to people just like you Every good content marketer should follow the Golden Rule: Treat others as you would like to be treated. Speak to a person as you want to be spoken to.

What does the customer care about? The customers consistently look for four or five specific types of attributes in virtually all products, whether tangible or intangible:

 Ease of use  Timeliness  Certainty (consistency, accuracy, reliability, predictability, safety)  Cost to own/use  Variety/choice The companies rarely measure their product attributes from a customer perspective. As a result, organizations are unable to proactively address customer wants and expectations. As those wants and expectations evolve and change, data-focused companies risk losing more and more of their market share. How willing are you to put that at risk?

The need to be marketing oriented Marketing is the area of business activities, which is concerned with managing the Exchange process. For most purposes, this means managing the exchange of value between the company’s customers and the company. The company supplies goods or services in exchange for payment. In the following graphic representation we try to show how the marketing concept has developed:

Customer satisfaction starts deep in your company's culture The business's "culture" is more than just an environment or a mission statement; it's the way you and your associates go about your jobs each moment of every day, and it shows through in every customer interaction, no matter how brief. It's impossible to understate how critical these experiences are to your company's profitability and longevity. It's easy to think of qualities most companies would like associated with their business in customers' minds—trust, quality, respect, teamwork, integrity or even just "really, really nice."

But it takes more than just buzzwords to win and keep customers; these core values must be thoroughly embedded in all levels of your organization. A company in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a company's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally, there are three ways of doing this: the customer-driven approach, the market change identification approach and the product innovation approach.

luxurious brand and high quality that justify their high price. Lamborghini, Ferrari, etc.

Consumer-Driven Approach

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no reason to spend R&D (research and development) funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value and Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer-centric alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management.

Product Promotion Price Place (Distribution)

→ → → →

Solution Information Value Access

If any of the 4Ps were problematic or were not in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will decrease. However, in recent years service marketing has widened the domains to be considered, contributing to the 7P's of

marketing in total. The other 3P's of service marketing are: process, physical environment and people. Some consider there to be a fifth "P": positioning. See Positioning (marketing).

Some qualifications or caveats for customer focus exist. They do not invalidate or contradict the principle of customer focus; rather, they simply add extra dimensions of awareness and caution to it. Disruptive technology has produced a theoretical framework that explains the failure of companies not because they were technologically inept (often quite the opposite), but because the value networks in which they profitably operated included customers who could not value a disruptive innovation at the time and capability state of its emergence and thus actively dissuaded the companies from developing it. The lessons drawn from this work include:

ď&#x192;ź Taking

customer focus with a grain of salt, treating it as only a subset of one's corporate strategy rather than the sole driving factor. This means looking beyond current-state customer focus to predict what customers will be demanding some years in the future, even if they themselves discount the prediction.

ď&#x192;ź Pursuing new markets (thus new value networks) when they are still in a commercially inferior or unattractive state, simply because their potential to grow and intersect with established markets and value networks looks like a likely bet. This may involve buying stakes in the stock of smaller companies, acquiring them outright, or incubating small, financially distinct units within one's organization to compete against them. Other caveats of customer focus are:

ď&#x192;ź The extent to which what customers say they want does not match their purchasing decisions. A corollary argument is that "truly understanding customers sometimes means understanding them better than they understand themselves." Thus one

could argue that the principle of customer focus, or being close to the customers, is not violated here—just expanded upon.

 The extent to which customers are currently ignorant of what one might argue they should want—which is dicey because whether it can be acted upon affordably depends on whether or how soon the customers will learn, or be convinced, otherwise. IT hardware and software capabilities and automobile features are examples. Customers who in 1997 said that they would not place any value on internet browsing capability on a mobile phone, or 6% better fuel efficiency in their vehicle, might say something different today, because the value proposition of those opportunities has changed.

EXAMPLE According to the Latvian Country Rural Tourism Association research more attractive tourism products are:

 Culinary

offer (taverns, traditional regional cuisine sites, interactive programs for

visitors)

 Cultural

heritage (crafts, subsistence farming, tradition maintenance in modern tourism product)

 Open

to visitors producing farms in rural areas (food products growers and producers, animal breeders, various home compounders, etc.).

 http://www.bauskata.lv/userfiles/Lauku_celotajs_ZTA_konference.pdf

FURTHER READING It is a fact that decline is the toughest phase in a product life, but there are strategies for revitalizing it, one of them is the following: Show or create more uses for the product. These are some examples:

 Kellogg’s tried to motivate the consumption of Corn Flakes for dinner.  AXE exploits and plays with its deodorant fragrances, so it competes directly with perfumes market. Further reading  Saturation phase of a product. http://yourbusiness.azcentral.com/saturation-phase-product-25236.html Eric Dontigney speaks about the concept of saturation and its causes, as well as different strategies to put into practice when a company struggles against numerous and often cheaper versions of its product. Saturation occurs when the product’s presence in the market reaches a point where demand decreases. Depending on the product, saturation can be part of maturity or a phase by itself. The causes of saturation vary depending on the product, industry and consumer tastes but, as matter of fact, innovations often serve to hasten a product into the saturation phase, because of the consumer loss of interest in the existing products. In other occasions, numerous competitors often flood the market and turn once-premium products into a commodity product that consumers select on the sole basis of price. Strategies to follow:

 Differentiation and repositioning to make a product appealing to a new market segment.  Improvements to existing product features or variations of the existing product.  Increases in advertising and marketing efforts.  For businesses that operate only at a local or regional level, expanding into new geographic markets also offers a means to strengthen sales by restarting the product life cycle in a new location.

EXTENDING YOUR KNOWLEDGE http://www.ehow.com/list_7455727_five-essential-principles-marketing.html http://www.gettingtoexcellent.com/2011/04/how-customer-focused-are-you.html http://www.marketingdonut.co.uk/marketing/customer-care/understanding-yourcustomers/putting-the-focus-on-your-customers http://www.aboutpeople.com/Articles/documents/Areyoureallycustomer-focused.html http://en.wikipedia.org/wiki/Marketing

2.1. Rapid Globalization

Globalization leads to increased competition. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by economic companies etc. Due to rapid globalization local products are tailored for local markets (products with political social specifications and packaging) and global products (products with the same specifications and packaging for consumers from around the world). The movement towards the biological cultural expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms. The phrase “rapid globalization” refers to rapid development of globalization during last three decades and which still continues. The rapid movement towards globalization in recent years is the result of increasing realization among many countries of the benefit of relatively free business across national boundaries and, with that lowering of their barriers to international business. This development is also fuelled by many large corporations who, in quest of lowering their costs and increasing their volumes of business, have established manufacturing bases in many different countries. The progress of globalization still continues at a rapid rate. A globalized world:

 Greater freedom of movement of goods, services, capital, people

 Global citizens  The Information Age – has only just begun

Globalization has been facilitated by advances in technology which have reduced the costs of trade and trade negotiation rounds. Since World War II, barriers to international trade have been considerably lowered through international agreements.

Globalization and its challenges Globalization – the removal of barriers to free trade and the closer integration of national economies – can be a force for good that has the potential to enrich everyone in the world, particularly the poor, but the way it has been managed (especially the international trade agreements) needs to be rethought. Joseph Stiglitz Globalization has been “misgoverned”. John K. Galbraith

Economic Globalization

Increasing economic interconnectivity:

 International division of labor  Rapidly expanding volume of capital flows  Capital remains concentrated among the wealthiest nations  Mixed evidence as to the effect of economic globalization  Unsure whether it exacerbates or reduces economic inequality  Economic interdependence is related to more peaceful relations, but those left behind tend to be resentful

Politics and Globalization

Nation states are less able to control social and economic events within their territory

Global/regional decision-making bodies (UN, EU, etc.) are rising in importance … They are not yet fully democratic/accountable “CNN” effect pressures governments to intervene on human rights violations

Cultural Globalization

Increases exposure to foreign ideas and practices, but…

Cultural exports are disproportionately from western countries, particularly the U.S. In some cases, has resulted in “commoditization” of cultures. Some ethnic and religious groups feel culturally threatened by globalization Has resulted in a sharp increase in reactionary “nationalist” and “fanatical” groups Has “killed” some cultures.

Technology and Globalization

Increases access to information, but… Access is unevenly distributed.

Has made it easier to seek out like-minded voices and avoid opposing views. Makes surveillance and certain types of control easier.

Globalization effects The world economy has seen radical change during the past two decades. Geographical and cultural distance have shrunk due to supersonic travel fax machines global computer and telephone hookups world television satellite broadcasts and other technical advance. This has allowed companies to greatly expand their expand their geographical market coverage purchasing and manufacturing. The result is a vastly more complex marketing environment for both companies & consumers

 Globalization is potentially positive, but needs better management: well-designed rules  Important to position e-trade in a broader context of economic development, socioeconomic culture in the country, and engineering growth

 The immediate international environment also plays a role (in terms of partnerships) – consequently, look for the right partnerships from a distance too.

 Globalization does have problems and negative effects, but it is not going to disappear. So…

 We need to learn how to reap its benefits, and minimize its costs. To do that, we must:   

Understand its impacts Work to remedy the problems Work to spread the benefits as widely as possible

ď&#x192;ź

Managers should also be aware of the best way to approach global demographics from a business to consumer perspective, taking an international product or service and localizing it successfully. This is a significant challenge, necessitating consideration for different tastes and branding strategies during the implementation process. This chart illustrates the process of moving from an international product to a localized product step by step, making note of the element of production that can be universally applied compared to those that need a localized touch.

ď&#x192;ź Managers must also be particularly aware of the current criticisms of a highly global society, particularly as it pertains to ethical and environmental considerations. A global economy is, in many ways, enforcing a global culture. This global culture is often criticized for taking the place of previously established domestic cultures and motivating consumerism. As a result, managers should refer to how to best localize products to retain cultural identity in regions in which they operate. Environmental concerns are of large importance as well, as the constant energy utilization required for this interchange pollutes the environment and uses high quantities of valuable energy-creating resources. Minimizing the damage done to the environment, and offsetting it as best as possible through philanthropic giving, is not only a wise marketing move but a critical ethical consideration which managers must not overlook.

ď&#x192;ź Combining

these points, the globalized society presents enormous opportunity for businesses. Intercultural marketplaces allow for differing demographics, larger market potential, a more diverse customer base (and therefore more diverse product offering), and a highly valuable human resource potential. On the other end of the bargain, managers are

tasked with localizing products and services effectively in a way that minimizes the adverse cultural and environmental effects caused by this rapid global expansion to maintain an ethical operation

Think global, act local: a global marketing strategy Globalisation creates New Consumer Values, which influences our target group: farmers, local producers, tourism companies:

 The new consumer values have important implications for tourism on both the demand and supply side.

 Rising affluence, greater internationalism, an appetite for risk taking, more sophisticated marketing, the feeling of greater time pressures, and improved access to technology all contribute to a fragmentation of tastes in both developed and emerging markets.

 Firms must adopt individual strategies for individual markets and customers, in order to become increasingly competitive in the market place.

 This will require more detailed analyses of demographic trends and value shifts, how these are impacting on tourism demand

 Those tourism organisations that ignore this massive demographic and values shifts and their global impact are likely to experience strategic drift and cease operations. Globalisation is affecting marketing of local/ organic through tourism sector:

 Local businesses, particularly in developing countries, face much greater competition due to globalisation.

 This can put local tourism SMEs at a disadvantage as they do not have resources to compete at global scale.

 Local stakeholders may also be pushed out or sell out  Local prices for commodities and services rise, as do taxes.  The crowding out effects of export oriented tourism growth, resulting in the decline of local (non- tourism) industries, are well recognized

New Customer Values Individualism

 People increasingly tailor holidays to meet their particular requirements.  As travellers become more experienced, they want customised services, rejecting the impersonal, non-interactive system of ‘mass tourism’.

 Tourists seek the unusual and the authentic experience rather than the shared, off-theshelf holiday package

 The

experiences sought are those ‘authentic’ to the destination and its people, personalised and often involve social interaction and emotional connection.

Participation

 As incomes grow, people shift their discretionary expenditure towards experiences as opposed to products.

 One result of the experience economy and tourism has been a fragmentation of the tourist market into subsets of unique experiences.

 With tourists desirous of involvement as participators not spectators, seeking a variety of optional experiences,

 At the same time, tourists are demanding assurances of safe products and services prior to purchase

Self-improvement

 individuals

are becoming more interested in self-improvement as part of the tourism experience, emphasising health, well-being, education, skill development and cultural appreciation.

 people are increasingly concerned about their health and well-being. Greater value is being placed on de-stressing and selfmedicating

 People are increasingly interested in discovering, experiencing, participating in, learning about and more intimately being included in the everyday life of the destinations they visit.

 As more material needs are satisfied tourists seek newer, richer, deeper, experiences. Tourists, have an increased social and environmental consciousness, seeking ‘authentic’ tourism experiences.

EXAMPLE In Latvia premiumisation and popularisation of craft beer were the key trends within the beer category in 2013. An improved purchasing power led consumers to strengthen their habit of buying less but more qualitative wine. Small manufacturers of craft beer have shown doubledigit sales growth rates during recent years, and market leaders have also responded by launching premium brands, often coming in limited edition volumes, which they try to position as craft beer. Most famous beer producers are Aldaris (http://www.aldaris.lv/en ), Cesu Alus (http://www.cesualus.lv/en/ ) and Valmiermuizas Alus (http://www.valmiermuiza.lv/en/news )

FURTHER READING http://www.businessdictionary.com/definition/globalization.html#ixzz3HvsAqOTE http://www.enotes.com/homework-help/what-rapid-globalization-117977 http://susilkarki.blogspot.com/2009/05/rapid-globalization.html http://www.sociocosmo.com/2013/07/globalization-good-or-bad-forindian.html#sthash.k3ZhNa8u.dpuf http://esciencenews.com/articles/2009/03/31/fei.chang.or.pepsi.cola.what.makes.consumers.c hoose.local.brands.over.global.ones http://www.euromonitor.com/beer-in-latvia/report

2.2. SUSTAINABLE MARKETING

The Call for More Social Responsibility Socially and environmentally responsible marketing that:

 Meets the present needs of consumers and businesses  Preserves or enhances the ability of future generations to meet their needs Sustainable marketing involves publicizing your efforts to be socially and environmentally responsible — cutting down production of greenhouse gases, reducing waste, and using resources wisely. Sustainable marketing involves undertaking marketing efforts to get YOUR consumers to act in more environmentally sustainable ways.

Sustainable marketing practices and principles Sense of mission marketing – for instance, Pedigree promotes pet adoption by running advertising campaigns aimed at adoption over buying pets and donates money to support the activities of pet shelters. Socially responsible marketing – marketing safer, more environmentally friendly products and packaging such as Method brand of home products that feature low sculpture cleaning products. Emphasize innovative, customer driven products rather than lower value products that must be replaced over time – planned obsolescence. Conduct a sustainability audit to determine points where the company produces waste, consumes energy, or increases consumer packaging with an eye toward reducing or eliminating them.

Sustainable Marketing Principles

ConsumerOriented Marketing

CustomerValue Marketing

Sense-ofmission Marketing

Innovative Marketing

Societal Marketing

There is significant and increasing interest and demand by both consumers and companies in being more sustainable. The sustainability market includes an increasingly wide range of companies, products, and services, all in some way intending to address sustainability concerns. Why do companies adopt sustainability principles? Sustainable practices are good business practices. Not only does it help the greater good by improving a company’s ecological footprint, but it can reduce waste, increase consumer engagement and loyalty, and provide a competitive edge, all contributing to the bottom line. Unlike more traditional companies that focus almost solely on the bottom line alone, sustainable companies focus on the triple bottom line, which includes:

(1) people, (2) planet, and (3) profits. Sustainable marketing involves developing and promoting products and services that meet consumer and business user needs utilizing society’s natural, human, and cultural resources responsibly to ensure a better quality of life now and for future generations to come.

The marketing concept means meeting the current needs of both customers and the company. But that can sometimes mean compromising the future of both. Sustainable marketing is not just about taking steps to appear more environmentally friendly or more socially conscious and advertising that fact to consumers. It is more substantive and meaningful. Sustainable marketing draws on traditional marketing methods and in addition requires the following:

 Understanding

of consumer’s values, emotions, and buying behavior related to

sustainability

 Knowledge of the evolving sustainability marketplace  Organizational commitment to sustainability and to

positive relationships with their

customers, communities, and the planet An increasing number of consumers base their purchases in some way on the environmental and social impact of the product and services they buy and the companies from which they purchase. Companies can no longer just add “green” to their marketing strategies with nothing to show for it in terms of certifications and ratings, and the same goes for the concept of sustainability. business approach and is now an integral aspect of a quality investment portfolio. Sustainability denotes long-term economic returns derived from sustainable business activities.

Business Actions towards Sustainable Marketing Consumer-Oriented Marketing

• • • •

View marketing activities from the consumer's point of view Deliver superior value Invest in customer-value building marketing Create value FOR customers

Innovative Marketing

•

Company seeks real product and marketing improvements

Sense-of-Mission Marketing

•

Define mission in broad social terms rather than narrow product terms

Societal Marketing

•

Marketing Ethics

•

Company considers: – Customer’s wants and interests – Company’s own requirements – Society’s long-run interests Corporate marketing ethics are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards Who should guide companies? The free market and the legal system? Individual companies and managers

• • • The Sustainable Company

•

Goes beyond caring for the needs of today’s customers and has concern for tomorrow’s customers and the broader world

EXAMPLES Farm "Veckūkuri" Jērcēnu parish (Latvia) produce from raw milk an exclusive product line, which does not contain food additives and a bad E substance, so their validity is only a few days. E supplements provide a longer service life of the food, but the products of artificial substances do not, they are alive, so they should be used immediately. Live dairy products found in Vidzeme, Riga stores and sales networks throughout the Latvia. http://www.mans-piens.lv/?langs=1758

EXTENDING YOUR KNOWLEDGE http://www.business2community.com/marketing/substainable-marketing-getting-back-tomarketing-basics-0338049 http://catalog.flatworldknowledge.com/bookhub/reader/3157?e=gittell_1.0-ch06 https://www.google.lv/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF8#q=Sustainable%20Marketing%20ppt http://www.business2community.com/marketing/substainable-marketing-getting-back-tomarketing-basics-0338049#KzjLzluFL9DC7by0.99 http://www.brighthub.com/money/investing/articles/121628.aspx

2.3. THE DIGITAL AGE

The Digital Age, also called the information age, is defined as the time period starting in the 1970s with the introduction of the personal computer with subsequent technology introduced providing the ability to transfer information freely and quickly.

The Information Age (also known as the Computer Age, Digital Age, or New Media Age) is a period in human history characterized by the shift from traditional industry that the industrial revolution brought through industrialization, to an economy based on information computerization.

Major Forces Shaping the Digital Age

 Digitalization and Connectivity o The flow of digital information requires connectivity  Intranets, Extranets, and the Internet

 The Internet Explosion o Key driver of the “new economy”

 New Types of Intermediaries o Brick-and-mortar firms often face disintermediation from click-only competitors o The click-and-mortar business model has been highly successful

 Customization and Customerization

Marketing Strategy in the Digital Age  E-business: 

Uses electronic means and platforms to conduct business.

 E-commerce: 

facilitates the sale of products and services by electronic means

 E-marketing: 

Includes efforts that inform, communicate, promote, and sell products and services over the Internet.

 E-commerce benefits both buyers and sellers Buyer Benefits of E-Commerce:

 Convenience  Easy and private  Greater product access/selection  Access to comparative

Seller Benefits of E-Commerce:

information

 Interactive and immediate

 Relationship building  Reduced costs  Increased speed

and

efficiency

 Flexibility  Global access, global reach

Online consumers  Now more mainstream and diverse • •

Has created new targeting opportunities Online behavior differs by age

 Online consumers differ from traditional off-line consumers • •

They initiate and control the exchange process Value information highly

 Business to Business sales far exceed Business to Consumers sales  Open trading networks • E-marketspace bringing sellers and buyers together: • Private trading networks o Links sellers with their own trading partners

• • •

•

o Consumers to Consumers web sites help consumers exchange goods or information (https://www.bigbarn.co.uk/ ) Auction sites facilitate the exchange process o Allow access to a much larger audience Newsgroups / forums o Help consumers to find and share information Allow consumers to search out sellers, learn about offers, initiate purchase, or dictate purchase terms o Ex: Priceline.com Some sites facilitate the feedback process between customers and companies o Ex: Planetfeed.com

E-Marketing E-Marketing (Electronic Marketing) are also known as Internet Marketing, Web Marketing, Digital Marketing, or Online Marketing. E-marketing is the process of marketing a product or service using the Internet. It not only includes marketing on the Internet, but also includes marketing done via e-mail and wireless media. It uses a range of technologies to help connect businesses to their customers.

10 Reasons why e Marketing is so Important to the Success of Businesses:

 Online Branding  Meet Changing Demands  Consumer Preferences  Cost Efficiency  Increase Website Traffic

 Increase Sales  Always Available to Consumers  Customized Offerings  Maintain Communication  Improve Credibility

FURTHER READING http://www.socialmediatoday.com/content/6-rules-marketing-strategy-digital-age http://primarytech.global2.vic.edu.au/2009/08/13/blooms-taxonomy-in-the-digital-age/ http://www.bigbarn.co.uk/ http://www.quirk.biz/resources/88/What-is-eMarketing-and-how-is-it-better-thantraditional-marketing http://www.bluerisemedia.com/10-reasons-internet-marketing-is-important-to-yourbusiness/

2.4. THE GROWTH OF NON-PROFIT MARKETING

The various methods of marketing such as slogans and other media activities that are used by non-profit organizations to promote the message as well as to ask for volunteers to help out with the organization's mission. The message is usually more sentimental than necessity or use oriented.

The nonprofit market includes a wide range of entities, from such well-known organizations as the United Way and the Make-a-Wish Foundation to trade associations, alumni associations, book clubs, local charities, and private foundations. The nonprofit market includes a wide range of entities, from such well-known organizations as the United Way and the Make-a-Wish Foundation to trade associations, alumni associations, book clubs, local charities, and private foundations. Top 3 Non-profit Groups by Size, Revenue:

 Public charities o Arts, Education, Health Care, Human Services

 Private foundations  Other organizations

Fundraising: Tends to usually be the primary goal Staffing: Can be a headache for the non-profit segment

o Social and recreational clubs, athletic clubs The non-profit segment faces many challenges. Two of these primary marketing-related challenges include staffing (many have part-time volunteers) and fundraising. As far as staffing goes, position your company as the outsourced marketing partner for the organization to help alleviate this challenge. Think about what you can offer. Can your company provide managed campaign services? Project management? Targeted e-mail? Fundraising offers one of the most valuable opportunities for your company. The non-profit segment is usually data rich, so providing ideas on how you can better implement and utilize their

data to target users and increase ROI-(Return on Investment is how much profit or cost saving is realized) is an effective sell.

 Be unique.  Think out of the box beyond simply variable addressing. So, what are they producing? Non-profit organizations have a wide variety of marketing communications needs. All of these needs provide a tangible opportunity for your company’s services.

 Fundraising campaigns  Marketing campaigns  Event promotions  Variety of print collateral  Email marketing  Some SMS/Mobile marketing Looking specifically at print collateral, organizations are producing things like:

 Enrollment material  Subscription newsletters  Periodicals  Fundraising packets  Project briefs  Museum guides  Donor communications

Thoughts on Marketing • Know Your Audience • Talk to their Needs • Build a Relationship • Metrics, Metrics, Metrics

And Public Relations… • Know your audience • Cost-effective • All about relationships! • Many channels

The Principles are still the same! Non-Profit Marketers Wear Multiple Hats!

Nine Valuable Marketing Lessons from a Nonprofit 1.

Encourage Customers to Spread the Word by Sharing Their Personal Experiences with Your Brand

Tap into the Power of Social Proof

Identify Your Unique Value Proposition and Broadcast It to Your Audience

Identify Brand Evangelists within Your Organization

Harness the Power of Storytelling

Create Content that People Will Fall in Love with

Partner with Well-Known Brands and Influencers

Be a Brand Purist

Get Creative with your Copy, Especially in your Headlines.

CIRCLES OF A NONPROFIT MARKETING The outer circle is what most nonprofit marketing consultants and team members are hired to do: create buzz, ads, word of mouth, “virality” using social media, increase the number of social media fans/followers/connections. This is just the tip of the iceberg in marketing. The second circle is where the real marketing time should be spent. This circle is focused on creating a community that cares most about your cause, and can help you to promote it. Included

in this circle are the elements needed to create an engaged online community around your cause: defining what people really want to talk about crafting the story of the cause, developing an online community that cares passionately about your cause, and supporting all of this with excellent content (your organization’s content + crowd-contributed content). The next circle just outside of the center is the basis for its adjacent second circle. These are the factors that surround the cause itself, and affect the perception of interest in the cause. Timeliness of the issue, the need for a solution to the problem, and public interest in the cause all affect how The Cause is perceived. This is the circle that executive directors, program staff, fundraisers, and founders will want to continuously review and consider. If perception of a problem does not exist, then the you will need to revise your story. If the issue is no longer timely, that will affect interest, The Conversation, community involvement, etc. The innermost circle is The Cause. Note that I do not write that it is The Organization. I wholeheartedly agree with Seth Godin’s description of the innermost circle (in his post, it was The Product): “When the thing you sell has communication built in, when it is remarkable and worth talking about, when it changes the game—marketing seems a lot easier.” Nonprofit marketing requires documented content marketing strategy to guide their efforts. Those who do have a strategy rate themselves higher in terms of content marketing effectiveness when compared with those who do not have a strategy. Nonprofit Content Marketing Research in 2014: Benchmarks, Budgets and Trends–North America from Content Marketing Institute showed that 92% of nonprofit professionals use content marketing, but only 25 % have a documented content strategy. Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.

Highly effective nonprofit marketers use the following tactics much more frequently than those who rate themselves as least effective:

 Videos (80 percent vs. 60 percent),  Articles on other websites (59 percent vs. 38 percent)  Blogs (58 percent vs. 38 percent)  Infographics (43 percent vs. 18 percent)  Online presentations (43 percent vs. 19 percent) Regardless of what type of marketing tactics you use, content marketing should be part of your process, not something separate.

FURTHER READING http://www.business2community.com/content-marketing/nonprofit-content-marketingresearch-successes-challenges-0682361#8hRWSpQXZC3We5hz.99 http://www.investopedia.com/terms/n/nonprofit-marketing.asp http://www.businessdictionary.com/definition/non-profit-marketing.html#ixzz3Hpkc4K5L http://communityorganizer20.com/2012/08/09/the-circles-of-nonprofit-marketing/ http://contentmarketinginstitute.com/what-is-content-marketing/

2.5. THE CHANGING ECONOMIC ENVIRONMENT

The world is changing, globalisation is increasing competition and businesses are facing major challenges. Market economy is affected by consequences of the global financial crisis. ‘Perhaps it would be more advisable to bear in mind the wisdom in an old Chinese proverb: “when the wind of change begins to blow, some people build windbreaks, while others build windmills”

The 15 Global Challenges

The 15 Global Challenges provide a framework to assess the global and local prospects for humanity. The New Economy:

 Substantial increase in buying power  A greater variety of goods and services  A greater amount of information about practically anything  A greater ease in interacting and placing and receiving orders 1

ď&#x192;ź An ability to compare notes on products and services Knowledge in the 21st century is a notion driven by science, technology, culture, creativity, behavioural economics and, more importantly, an open-source approach to innovation. In order to overcome these major challenges and achieve success in a global competitive environment requires innovative companies and business environments.

MARKETING CHALLENGES INTO THE NEW CENTURY Whatever industry you are in you are likely to encounter the top 5 marketing challenges. GROWTH OF NON-PROFIT MARKETING The various methods of marketing such as slogans and other media activities that are used by non-profit organizations to promote the message as well as to ask for volunteers to help out with the organization's mission. The message is usually more sentimental than necessity or use oriented. THE INFORMATION TECHNOLOGY BOOM Technological change in the IT area will likely continue to move quickly, in large part because large amounts of research and development are being devoted to finding further technological breakthroughs. RAPID GLOBALIZATION The worldwide movement towards economic, financial, trade and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately. THE CHANGING WORLD ECONOMY World-wide economic activity between various countries that are considered intertwined and thus can affect other countries negatively or positively THE CALL FOR MORE ETHICS AND SOCIAL RESPONSIBILITY ETHICS-the basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the

natural environment. SOCIAL RESPONSABILITY- the obligation of an organization's management towards the welfare and interests of the society in which it operates.

NEW CONSUMER CHALLENGES  A substantial increase in buying power.  A greater variety of goods and services.  A greater information about things  A greater ease in interacting and placing orders.  Standard of living to quality of living.

THE NEW MARKETING LANDSCAPE The past decade taught business firms everywhere a humbling lesson. Domestic companies learned that they can no longer ignore global markets and competitors. Successful firms in mature industries learned that they cannot overlook emerging markets, technologies, and management approaches. Companies of every sort learned that they cannot remain inwardly focused, ignoring the needs of customers and their environment. Competitive company in the 21st century is driven by science, technology, culture, creativity, behavioural economics and, more importantly, an open-source approach to innovation. In order to overcome these major challenges and achieve success in a global competitive environment requires innovative companies and business environments Traditional Organizational Chart versus Modern Customer-Oriented Company Organization

Challenges and Opportunities in Rural AREAS Agriculture and forestry continue to play a major role in maintaining natural resources and cultural landscapes as a precondition for other human activities in rural areas.However, inappropriate agricultural practices and land use can also have adverse impacts on the preservation of the rural environment, most notably on biodiversity, water and soil, and can contribute to climate change. In Europe, the recent increase in the demand for agricultural and forestry products, along with past market policies and technological developments, has given rise to a process of intensification and specialization of farming systems, resulting in increased pressure on natural resources. The intensification of agricultural production may entail risks such as soil erosion and reduction of levels of organic matter in the soil; increased emission of greenhouse gases; unsustainable water use; water pollution and biodiversity loss. Nevertheless, the growth of demand for agri-food and forestry goods also constitutes a key driver for the development of the economies of rural areas. In this context, the challenge lies in finding a balance between environmental, social and economic objectives when taking new opportunities. Finally, given the increasing competition on liberalized agricultural markets, farmers â&#x20AC;&#x201C; particularly those in new EU Member States still engaged in the process of restructuring semisubsistence farms - need to improve their competitiveness in order for their holdings to be viable in a global economy. This involves implementing measures that enhance farm adjustments to market requirements, both in terms of physical restructuring, human capital development and continuous innovation

SOLUTIONS TO MARKETING CHALLENGES Accepting and meeting marketing challenges have become important for any company to prove their endurance in market and leading it to the path of success.

 Keep in pace with the technology.  Keep focused on fulfillment  Do things, provide services, make products that prove that you are remarkable.  Get your sights keyed into the basics.  Identify customer needs according to changing environment.  Believe in innovation

FURTHER READING http://people.few.eur.nl/stremersch/artikels/Editorial%20Marketing%20competition%20in%20th e%2021st%20century.pdf http://www.mc21.org/docs/hooley_marketing_in_the_21st-century.pdf http://www.icmrindia.org/courseware/Business%20Strategy/Challenges-21st%20Century.htm http://www.millennium-project.org/millennium/challenges.html http://www.businessdictionary.com/definition/non-profit-marketing.html#ixzz3Hp9MC2Y6 http://ec.europa.eu/agriculture/events/cyprus2008/brochure_en.pdf http://21stcenturylibrary.com/2011/10/12/five-challenges-every-librarian-must-face/

3.1. BASICS OF MARKET RESEARCH

What is market research? Is your big new idea a winner or a loser, and how do you know? The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you.

Market research is about listening to people, analysing the information and using it in business. It is the process of systematic collection and interpretation of specific data in order to help: - understand customers' needs and behaviour, - understand the competition, and - improve business decisions and reduce the risks.

Why use market research? Whatever sector you're in, understanding the cultural, social and economic context in which you're operating is crucial. You need to know about the local area, what your competition is, and what people will be prepared to pay for your product or service. Will they like the product? Will they buy it? How much will they pay? How much will they buy? What will trigger their purchase? Understanding consumers allows to develop products (to learn more about product development, see pill "The Product") that satisfy their needs better than the competition. Market research can help you understand whether you have a viable idea in the first place, and can help you improve your sales in the long term. Successful businesses conduct research on a continuous basis to keep up with market trends and to stay competitive. Regardless of whether youâ&#x20AC;&#x2122;re starting or expanding your business, market research is vital to understanding your target market and increasing sales.

Market research should be part of your business strategy. It is worth bearing in mind that consumers' motivation and behaviour change over time so it's wise to consider reviewing your research on a regular basis.

How market research helps design products and find new markets If you are thinking of launching a new product, market research can prove invaluable in determining your idea's potential. If can help identify whether it is appealing, who your target audience is (more on targeting - in pill "Selecting the target market"), how big the market is, who the competition is and how you are positioned in the marketplace.

 Will people like the name of your product?  Will they like the way it looks and feels?  What marketing strategy should you have in place?  Can you find anybody else that have used this strategy? Where they successful? Having a great product is not enough as competitors will always find ways to steal your market share. Focus on really getting to know your consumers – what they want, when they want it and how they want it (more on customer focus - in pill "Starting thinking different"). This can be achieved through asking your existing customers about your products and how happy they are with their delivery and performance.

 Are you currently offering the optimal mix of goods and services to your customers?  What are the most urgent and pressing concerns of your customers? Which improvements would impact your sales most?

 How does your audience find your website? What do they do once they find it?  What’s your competition doing and how can you be better than them? The right information can help you structure your business model, shape marketing campaigns, design products, and market in a way that serves your customers while growing your business. There are four directions a company could look to expand its business, as presented in matrix (known as Ansoff matrix) below.

 A company can seek more business from its existing customers by aiming to grow its market share with its existing products. Market research on customer satisfaction can help identify such opportunities.

 It

can aim for expansion by taking its traditional product range into new markets. Market research can help here by providing information on the size of the new market, the competition, the best way to market and so on.

 It

can aim to persuade existing customers that they should buy different products or services that the company intends to offer. In this case, market research could explore the needs of customers for the new products.

 It can explore the possibility of selling

Figure 1. Ansoff Matrix

new products to new customers. In this most complicated option, market research plays a vital role in uncovering people’s needs, how they are currently being satisfied or not, their likelihood of buying new products or services etc. Once market research was only affordable for large companies. Conventional market research is still expensive, but start-ups and small companies need it the same much if not more than corporations. Luckily, there are many inexpensive ways to get market research done, including:

 Google search,  Polls on Linkedin,

Facebook or Twitter (learn more about social media in pill "Social

media"),

 Trade associations,  Trade shows,  Studying websites of your competitors,  Hiring business students to help with your research. To learn more on how market research can be done, see pill "How to perform market research".

Examples Market research helps to fine-tune ideas for http://www.ces.ncsu.edu/depts/agecon/value/TimJohnson1.pdf

catering

business:

A case study on how one of the UK's leading bakery retailers researches the market and uses the information it gains to influence its decisions about product development: http://businesscasestudies.co.uk/greggs/consumer-focused-productdevelopment/introduction.html#axzz3CFwIp2nv Coca Cola Lost Millions Because of This Market Research Mistake: http://www.qualtrics.com/blog/coca-cola-market-research/ The Coca Cola case shows how important it is do market research correctly. The variables that could affect the problem solution have to be included in the research. When the two out of work journalists had an idea for a new board game, they took two expired press passes to the Toronto Toy Show and pretended to interview toy manufacturers. They later said they learned more about the toy industry in those four hours than anything else they did, and it led directly to the game they invented â&#x20AC;&#x201C; Trivial Pursuit. (Source: theselfemployed.com)

Further reading P.Hague. Practical Guide to Market Research. e-book: http://www.b2binternational.com/publications/practical-market-research/ This book in PDF format that can be downloaded, explains the basics of market research as well as how to design and implement different types of research. According to the author, this is an introductory text covering the whole subject of market research. Anyone with a serious interest is urged to broaden their knowledge by reading widely and the references at the end of the book. Euromonitor International - market research for travel and tourism business http://www.euromonitor.com/travel-and-tourism Euromonitor provides comprehensive research on the travel and tourism industry. They monitor and analyse industry trends in travel and tourism globally, including in-depth data on market share and market size – from the “big picture” down to specific category levels. Euromonitor data and market analysis can advance your knowledge of the industry and its competitive environment, ensuring accurate and focused strategies for your business. J. Cupman. Using Market Research for Product Development. http://www.b2binternational.com/publications/product-development-research/ This white paper shows how market research, when used correctly in product development research, will minimize the risk of failure. It also explains that market research does not always give a clear-cut answer – considerable insights and experience are required by the market research analyst to interpret the data and visualize the opportunity.

3.2. HOW TO PERFORM MARKET RESEARCH

Market research is a key part in developing your marketing strategy (to extend your knowledge about marketing strategy, see pill "Marketing Strategy"). Researching your market helps you understand your customers, your competitors, and the industry in which you operate. The information you gather and analyse builds the foundation of good business decisions whether itâ&#x20AC;&#x2122;s deciding what product youâ&#x20AC;&#x2122;ll offer (to learn more about the concept of Product, see pill "The Product"), where your business should be located, how to distribute your products (more in pill "The Place") or how you communicate with consumers. There are 5 key steps in the market research process: 1) deciding the questions you need answers to, 2) deciding what information you need to collect in order to answer those questions, 3) deciding how you're going to collect the information, 4) deciding how you're going to analyse it, and 5) what you're going to do with the results. In the following sections, we will review the different market research methods and tools, the recommendations on how to analyse the collected market information, and the general ethical principles of market research.

MARKET RESEARCH METHODS AND TOOLS What are the different market research methods? Market research can be divided into two main types: primary and secondary. Existing information (for example statistics) is known as secondary data and primary is the collection of new data.

Primary research is conducted to get really intimate with your market, to answer specific questions you might have or address specific areas of focus. In general it costs more and often takes longer to conduct than secondary research, however online surveys (e.g. on Facebook, Linkedin or using special survey sites like Survey monkey) can be quite cheap to do.

Five basic methods of primary research include: 1.

surveys,

focus groups,

personal interviews,

observation, and

field trials.

It is important to determine the goal of your research and then design your method accordingly. Are you looking for demographic information about your customer base? A simple survey may be the easiest method. Are you looking for information about how your product is used? A focus group may be the most effective tool. Investigate the various methods of collecting primary research data and then select one (or more) of them to use. Another way of gathering information is observational research. For example, you could watch how long people interact with your product before buying it, whether they are alone or with someone else, what else they buy and whether they are looking for assistance. Some important questions in primary research may include:

 What factors do you consider when purchasing this product or service?  What do you like or dislike about the products or services currently on the market?  What areas would you suggest for improvement?  What is the appropriate price for a product or service? 2

There are a number of options for setting up web-based surveys. Survey Monkey (www.surveymonkey.com) is a web-based platform that not only sets up surveys; it helps you reach your existing customer base, as well as potential clients. You can create a custom survey, and Survey Monkey sends it out to your selected targets. They return results to you in as little as 3 days, and costs are based on completed surveys. Search.Twitter.com (https://twitter.com/search-home) is a google-like search engine that allows you to search twitter posts – giving you real-time access to what conversations are taking place. In this way, you can find out what current trends are, see who is talking about products, etc. Google Forms provide a fast way to create a free online survey, with responses collected in an online spreadsheet. People answer your questions from almost any web browser - including mobile smartphone and tablet browsers. You view each response in a single row of a spreadsheet, with each question shown in a column. Social media (to learn more about social media, see pill "Social media") can be a cheap way to perform some primary research - just ask a question and then record the information you get from answers and comments. Even though its name may imply otherwise, secondary research (also known as desk research) is where market research usually begins. Secondary research is conducted by consulting published reports from trusted sources in order to find out:

 who makes up your target market,  what the needs and trends of your market are,  the size of the potential market.  Secondary research can be done using external sources like:  web-based directories and resources,  government agencies and trade associations (national statistics

office, chambers of

commerce, etc.),

 newspapers and magazines. In the case of already existing product/ service, your own sales data and that of your competitors also represents valuable information that can help you understand sales, geographic and demographic trends.

Secondary market research data is quite easy to find, and much of it is free or low-cost. The downside is that it is not customized to your needs, so it may not be as useful as primary research. For example, secondary research may tell you how much money was spent on tourism accommodation in your region last year, but not how much the tourists are willing to pay for the particular accommodation and spa package your hotel has in mind. When conducting your research, put time and effort, and your results will be beneficial. Finding the method that is most effective can take some effort, and may be a bit of trial and error at first. Don’t give up if your first efforts aren’t successful – keep tweaking until you get results that you can use.

Can I do it myself or do I need an expert? It is possible to do basic research yourself, especially if you are in direct contact with your customers or if you just need to do some secondary research. In some cases, when it comes to gathering feedback directly from people you might consider employing professional market researchers. Professionals know how to select the right audience, how to ask the right sort of questions and provide feedback that is relevant, coherent and concise. Experts are neutral third parties that can provide you with information of what people really think and feel about your ideas, products or brands.

HOW TO INTERPRET AND USE RESEARCH RESULTS Conducting market research involves collecting data to be analysed. When analysing data (whether from questionnaires, interviews or other methods), always start from review of your research goals, i.e., the reason you undertook the research in the first place. This will help you organize your data and focus your analysis. For example, if you wanted to improve a product by identifying its strengths and weaknesses, you can organize data into product strengths, weaknesses and suggestions to improve the product. Regardless of which method is used in your primary research (interviews, focus groups, observation), there are some recommended procedures:

 Read through all the data  Carry out the analysis as soon as possible after data collection  Look for majority and minority opinions 4

 Organize

comments into similar categories, e.g., concerns, suggestions, strengths, weaknesses, similar experiences, recommendations, etc.

 Attempt to identify patterns in the themes, e.g., all people who bought product X had similar concerns, most people came from the same geographic area, most people were in the same salary range, etc.

 Keep all comments for several years in case needed for future reference. The information generated by the research can be used to draw conclusions, such as what all customers might like or not like about a product/ service based on what the sample group liked or did not like. The information can also be used to spot differences among groups of people (to learn more about market segmentation, see pill "Selecting the target market") . For example, the research might show that people in one area of the country like the product better than people in another area. Trends to predict what might happen in the future can also be spotted.

CODE OF CONDUCT As market research may lead to collection of sensitive data, some ethical principles must be adhered to. The Code of Conduct as set by Marketing Research Association includes a number of principles that professional research organisations should commit to. However, anybody (including small businesses) performing a market research should behave in the following way:

 treat respondents with respect and protect their rights, including the right to refuse to participate in research;

 don't influence respondent's opinion or attitude;  protect the privacy of respondents, keeping

the data that could identify them confidential, unless permission to disclose it is given and documented in advance.

SOME TIPS 1. Don't avoid research because it seems far too "scientific." Usually the first 20% of effort will generate the first 80% of the plan, and this is far better than nothing. 2. There is no "perfect" research design. It's better to do something than to wait until every detail has been perfected.

3. Work hard to include some interviews or other type of direct contact in your research methods. Questionnaires don't capture "the story," and the story is usually the most powerful depiction of the benefits of your products, services, etc. 4. Don't throw away research results once you analyse them. Results don't take up much room, and they can provide precious information later when trying to understand changes in the product or service.

EXAMPLES Sources of data for secondary research of tourism and food sectors in Cyprus Cyprus Tourism Organisation reports can be used for secondary research by those involved in tourism or related sectors in Cyprus. For example, "Tourism industry subsectors: Country report" (2014) (summary available at http://ec.europa.eu/enterprise/sectors/tourism/tourismbusiness-portal/documents/business/internationalisation/cyprus_country_report.pdf ) presents the main tourism offer, labour market trends, tourism education and training and overview and trends of different subsectors including adventure tourism, cultural tourism, blue tourism. Cyprus Food & Drinks is a department of the Cyprus Chamber of Commerce and Industry and aims to support the Cypriot food and drink industries, focusing especially on the promotion of the traditional gastronomy and the historically important agricultural products that comprise the Cypriot version of a healthy Mediterranean diet. The virtual Exhibition Hall, which is located at http://www.cyprusfoodndrinks.com , has a plethora of Cyprus food and drink companies and aims to provide the gateway for Cypriot processors and manufacturers to promote their products in Cyprus and world wide markets. The website can also be used to research what local products are currently available on the market, to analyse the reviews of different product groups, etc.

FURTHER READING

P.Hague. Practical Guide to Market Research. http://www.b2binternational.com/publications/practical-market-research

e-book:

This book in PDF format that can be downloaded, explains the basics of market research as well as how to design and implement different types of research. According to the author, this is an introductory text covering the whole subject of market research. Anyone with a serious interest is urged to broaden their knowledge by reading widely and the references at the end of the book.

L.S.Pyle. How to Do Market Research - the Basics: http://www.entrepreneur.com/article/217345 Marketing research can give a business a picture of what kinds of new products and services may bring a profit. For products and services already available, marketing research can tell companies whether they are meeting their customers' needs and expectations. This article discusses different types of market research and common marketing mistakes.

3.3. MARKETING STRATEGY

There are two inescapable business truths: 1.

Customers are the only place money comes from

2. Marketing is about identifying and/or creating the needs and wants of a chosen target market and fulfilling them, at a profit, time after time after time. Behind everything that is said and written about marketing, there is one very simple idea: that every business ought to start with its consumers think carefully about what they want and gear all its efforts to satisfying consumer needs (more on the importance of customer focus - in pill "Starting thinking different"). This is especially true in the tourism and local foods market, where the consumer will often be dealing with your business face-to-face in a hotel, restaurant, farmers market, farm shop or via telephone or internet sales.

WHAT IS MARKETING STRATEGY AND WHAT IS IT USED FOR? A marketing strategy is something that every single business, no matter how big or small, needs to have in place in order to succeed in the marketplace. Marketing strategy represents the “roadmap” to achieving greater results, such as sales growth, brand recognition (learn more about brands in pill "Branding"), higher market penetration, etc. A marketing strategy helps you create goods and services with the best chances for making a profit. This is because marketing strategy starts with market research (learn more in pill "Basics of market research"), taking into consideration your optimal target customer, what your competition is doing and what trends might be coming up. Using this information, you determine:

 the benefits that your customers want,  what they’re willing to pay and 1

 how

you can differentiate your product or service from the competition.

A marketing strategy is all about knowing where you’re headed and how you’re going to get there – without going off track, something that is easy to do when you’re busy running and working "in" your business. A good strategy:

 provides the business with focus and direction by identifying the best opportunities worth pursuing as well as the threats to be avoided

http://creativeworksmarketing.files.wordpress.com/2012/07/roadm ap.jpg

 identifies the tools that the company can effectively use to fight competition and gain market share

 saves

company time and money by focusing the resources on attracting the right employees and investing only in marketing initiatives that support the overall business objectives

 differentiates a company from competition by identifying the distinctive advantage  translates the company vision, mission, objectives, into effective Marketing initiatives  serves as foundation for all your communication campaigns  improves the effectiveness of the Marketing message to customers and partners  increases sales and profits An effective Marketing strategy is realistic, easy to understand and practical to implement. Every business owner should make developing the Marketing strategy for the company and its brands a top priority.

THE ELEMENTS OF MARKETING STRATEGY Consider analysing your company (by yourself if you are a one-person business or together with your colleagues) and creating its marketing strategy by answering the following questions:

Company Mission

Think of what you/ your company really is. Forget your past. Who are you now? What do you do? Why?

Company Vision

Think of where you would like your company to be in 3 or 5 years. What is your most ambitious goal, your dream future? Who have you decided to become?

Target Market and Customers

Who are your customers and end-users? What are their real needs and wants? Do you know enough about who you are trying to sell to? Are these the right people for your business to be targeting? Are there alternative or additional markets that you could more profitably exploit? (to learn more about market segmentation and targeting, see pill 'Selecting the target market")

Competitors analysis

Who are your competitors? What do they offer? How do they communicate with the customers and what is their image?

SWOT analysis

What are the resources of your company? What skills, competences, know-how do you (or your colleagues/ employees) have? What property, facilities, tools are at your disposal? How does your company behave in its business? What could you call your strengths and what are the weaknesses? What trends can you see in the market? Are there new opportunities or something that could hinder your business?

Marketing objectives

What are the objectives you would like to accomplish in the next 2-3 years, so that you can call them successful?

7. Marketing Mix (Product, Distribution, Pricing, Promotional strategies) and Unique Selling Proposition (USP)

This part of the strategy provides the direction to be followed in order to accomplish the Marketing objectives. It describes the chosen Marketing Mix (to learn more about this concept, see pill "Introduction to marketing mix"). What do you sell? Is it really what your customers want? Charles Revson (Founder of Revlon) once put it so: â&#x20AC;&#x153;In the factory we make cosmetics. In the drugstore we sell hopeâ&#x20AC;? How is your product different from the competitors? What is the best way to deliver it to the customer? What is the price that the customer would pay? How do you tell the customers about your offer and encourage them to buy? Are you really offering and explaining a clear reason for your existing customers to continue buying and for new customers to consider buying from you?

General guidelines

Have you done something in the past that was successful? Why was it successful? Knowing who you are and who you want to become, what do you want to take from that experience and do it again? What should be the main guidelines of how your company should behave in order to succeed?

Implementation/ Plan

These are the concrete initiatives to be completed during the year in support of the strategies above. Who will do what, when and how much will it cost? There are different opinions on how formal a marketing strategy should be and whether a small business needs a written strategy document. However, it is essential to spend some time and have a good look at your business, its environment and establish what worked for you in the past and could work in the future. Setting the general guidelines and specific objectives for your business as well as the main actions to be taken in the near future can only lead to better business results. A strategy should not be a book that you write and place on a shelf; instead, it should be a living, real-time process that helps you deal with the challenges of ever-changing market. Thus, the strategy should be revisited and revised whenever necessary and at least once a year.

HOW TO BECOME A MARKETING-ORIENTED BUSINESS Successful businesses are focused on, and led by their markets. To become a marketing-led and successful business you should: 1. Ensure that your company understands the importance of marketing to the success of your business (see more in pill "Marketing concept") 2. Understand your market â&#x20AC;&#x201C; consumers, networks and competitors - and focus your activity on consumer needs 3. Ensure you research your market, to ensure you are aware of real consumer needs (see more in pill "Basics of market research") 4. Make sure your product has authenticity (local/ natural ingredients/ traditional methods/ good appearance/ good taste/ freshness) 5. Work on contacts and communication with customers and consumers â&#x20AC;&#x201C;developing two way relationships 6. Be honest and critical of your current situation 7. Develop a clear, realistic and relevant Marketing Strategy/ Plan

EXAMPLE "How I created a marketing plan for my business": http://www.marketingdonut.co.uk/marketing/marketing-strategy/how-i-created-a-marketingplan-for-my-business Creating a marketing plan can be challenging. Sara Drawwater did her homework before embarking on hers but she found that although there is plenty of advice out there, it can be contradictory. Here she explains how she developed a plan that worked for her design business. http://smallbusiness.chron.com

FURTHER READING The website provides a lot of information related to small business, including many case studies. www.entrepreneur.com

An online magazine inspiring, informing and celebrating entrepreneurs since 1973. www.forbes.com A website for the world's business leaders and the No. 1 business news source in the world, forbes.com is among the most trusted resources for senior business executives, providing them the real-time reporting, uncompromising commentary, concise analysis, relevant tools and community they need to succeed at work, profit from investing and have fun with the rewards of winning. http://branduniq.com/ This blog focuses on strategic marketing issues such as differentiating your brand from competition and managing the four components of the Marketing Mix. The ultimate goal of this blog is to encourage and cultivate long term strategic thinking, a key ingredient of strong and prosperous businesses. Minessota Institute for Sustainable Agriculture: Marketing Local Food (2007): http://www.extension.umn.edu/food/small-farms/farm-business/docs/marketing-localfood.pdf This book is partly stories about farmers, partly the condensed wisdom of farmers and their advisors, partly hard-to-find information about food marketing issues, and partly cheerleading for local food systems. B. Tracy. 4 Principles of Marketing Strategy: https://www.youtube.com/watch?v=hZLMv5aexto A short clip from my Total Business Mastery seminar about the 4 Principles of Marketing Strategy. This video will answer your questions about your marketing mix including: How do I get customers? How do i determine my target markets? Whats my competitive advantage? G. Smith. Help! My Business Needs a Marketing Plan and I don't know where to start! http://articles.bplans.com/help-business-needs-marketing-plan-dont-know-start/ This article explains what a marketing plan is and how to develop it. The author emphasizing the importance of reviewing, monitoring, and tracking each strategy on a regular basis. While you may make some adjustments along the way, aim to write a new plan every year. This will help keep your entire team up to date on changing trends and markets, while ensuring relevant new strategies and tactics are identified and developed.

3.4. SELECTING THE TARGET MARKET

Segmentation, Targeting and Positioning (STP) is a well-known strategic approach in modern Marketing. It is one of the most commonly applied marketing models in practice.

MARKET SEGMENTATION Market segmentation involves dividing a broad target market into subsets of consumers that have similar (unmet) needs and priorities. When you identify these segments, you can tailor your marketing strategies (see more about marketing strategies in pill "Marketing strategy") to meet these wants, needs and priorities in a cost-effective way. You can segment your markets based on nearly any variable. If you decide to segment your market geographically, you will look at regional characteristics, population density and sometimes even climate as common influences on your potential customers. You have to identify common needs in the geographic area and tailor your marketing strategy based on that identification.

For example, if a region is largely rural, in your promotion you might emphasize your free shipping since customers are widespread and may not be able to get to your shop easily. Similarly, if the geographic area is an urban area that's densely populated, you could emphasize your convenient locations and the ways your product or service is better than the nearby competition's. If you identify a target market that shares demographic traits, you can aim to address the common needs of that group. For example, new parents might be open to products and marketing messages that center around improving family well-being. On the other hand, teenagers might be receptive to products or messages related to the latest technology and games. Even if your product is not a game and has no advanced technology, you can present your message in an advert with a hightech look to appeal to this demographic. A market can also be segmented according to behavioral characteristics. These include the loyalty to a brand (more on brands - in pill "Branding"), rate of usage, purchases related to annual holidays, etc. Once you identify common behaviors of a market segment, you can aim your offering towards those behaviors. If your target group shares a tendency towards impulse buying, you can emphasize urgency in your marketing message. If a group tends to buy seasonally, you can strive to tie your product to a season. An audience that's segmented psychographically may share lifestyle features such as opinions, values, activities and interests. In this case, you must adapt your product and marketing message (see more on marketing communications in pill "The Promotion") to appeal to specific attitudes of your audience. For example, an environmentally conscious group might be interested in the ways your company contributes to saving the environment. A target audience that's concerned about family values will be interested in messages featuring families using your products or services. Large companies spend a lot of money segmenting their customers, which may be something that small businesses lack the time, experience and resources to do. But there are lowcost and easy methods, including:

ď&#x192;ź Customer

data: You may have collected a lot of information about your customers, including where they live, what they buy and how they prefer to pay. The more information you collect about your customers, the better youâ&#x20AC;&#x2122;ll be able to segment your market;

 Industry research: trade associations and chambers of commerce often collect consumer data on behalf of their members. If you’re a member of your industry’s association, it's likely that it has customer data available;

 Giveaways: You can advertise a promotion that encourages customers to provide you with marketing data. Create an online form that allows people to download a coupon in exchange for their information. Advertise on social networks and other websites to promote a discount or giveaway;

 Outsourcing:

If your business is medium-sized or large, segmenting your market and conducting research may be best accomplished by hiring an external company to assist you.

The most successful small businesses understand that only a limited number of people will buy their product or service. The task then becomes determining, as closely as possible, exactly who those people are, and targeting the business's marketing efforts towards them.

TARGETING As you do your segmentation, you should have a picture emerging of who you think your ideal customer is (or who you want it to be). You might even be able to write a description of your customer. "My target customers are couples in her 30s or 40s who have children, and are environmentally conscious and like travel." Based on what you uncovered in your research (to learn more about market research, see pill "How to perform market research"), you may know, for example, that there are approximately 5000 of those potential customers in your area. It may well be that 1000 of them are already loyal to your competitor, but that still leaves 4000 who are not, or who have not yet purchased the product from anyone. It could be that potential customers don't know about your company, or can't tell the difference between your company and others. It is your job, once you know who your best customers are, to target the group that you've identified - even if you have competition. In addition, you may decide, that you'd also like to extend your target market, e.g. to include women from 50 to 60 years of age that would like to do something new in their free time (as children grew up), e.g. travel or take cooking lessons. If you go back to the basic reasons why people purchase goods or services, and find ways to target that age or lifestyle group, you may be successful in capturing a bigger share of the market!

On the other hand, what if you "specialized" your product or service and then researched your target market, only to discover that there are probably less than 100 people who will buy from you? And what if those 100 are only going to spend 20 EUR per year on your product? Then you need to go back to planning your business and determining a wider or different target market. In order to evaluate the commercial attractiveness of each market segment, the following should be evaluated:

 The market must be large enough to justify segmenting (otherwise it

may make the

market smaller)

 Measurable differences must exist between segments  Anticipated profits must exceed the costs of additional

marketing plans and other

changes

 Each segment must be accessible to you and must be able to receive your marketing messages

 Different segments must need different benefits. No strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important. There are three general strategies for selecting your target markets: Undifferentiated Targeting: This approach views the market as one group with no individual segments, therefore using a single marketing strategy. This strategy may be useful for a business or product with little competition. Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. Small firms often benefit from this strategy as focusing on one segment enables them to compete effectively against larger firms. Multi-Segment Targeting: This approach is used if you need to focus on two or more well defined market segments and want to develop different strategies for them. Multi segment

targeting offers many benefits but can be costly as it involves greater input from management, increased market research and increased promotional strategies.

POSITIONING Positioning is developing a product and brand image (learn more about brands in pill "Branding") in the minds of consumers. It can also include improving a customer's perception about the experience they will have if they choose to purchase your product or service. You can positively influence the perceptions of your customers through promotional activities and by carefully defining your business' marketing mix. Effective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It also requires you to identify a differential advantage with which it will deliver the required benefits to the market effectively against the competition. Volvo built its reputation on "safety." When people want a safe car, they buy a Volvo. FedEx revolutionized the package delivery business because they became synonymous with "overnight." Some companies position themselves as affordable options for consumers by selling low-priced goods. This may require a corresponding decrease in quality, such as a spending less on restaurant interior design. However, this strategy works only if your potential customer is looking for affordability. Some companies price their products or services higher than their competition to create a perceived value (more on pricing options - in pill "The Price"). Consumers wonder why a particular company is able to sell its product for more or why the other consumers are willing to pay more. In the end, they may believe that the higher-priced product or service is worth more. To position your brand, you need to look at everything that affects your brand image and therefore, your customers’ perception of your brand. From customer service to pricing and advertising, every part of your organization has some effect on your customers’ overall perception of your brand, and that leads to the 3 simple steps to brand positioning:

 Understand your customers’ current perception of your brand position.  Determine what you want your customers’ perception of your brand to be. 5

ď&#x192;ź Define and execute the changes within your organization that will meet your customersâ&#x20AC;&#x2122; needs and create the desired perception of your brand.

EXAMPLES Read a case study of a small tourism operator whose careful analysis and segmentation of the market has resulted in an annual average occupancy of 93%: http://www.tourismexcellence.com.au/images/stories/pdf/module1/M1_ChocolateGannets_Jan201 3.pdf A case study on market segmentation and willingness to pay for organic products in Spain: http://www.unavarra.es/personal/m_sanchez/segmentation.pdf New Target Groups in the Organic Food Market: http://www.isoe.de/ftp/poster_biopro.pdf

FURTHER READING Consumer Segmentation for Online Marketers: http://www.getfoundfirst.com/consumer-segmentation-for-online-marketers-ebook/ This is a downloadable free e-book that aims to teach you the basics of researching, determining and targeting the best segments for your products. When you have finished reading this E-Book you should be able to understand and apply the concept of consumer segmentation on any budget.

Targeting - the good and the bad: http://wynbrand.wordpress.com/2011/08/18/56/ This blog article by W. Brand discusses how new technologies and social media influence targeting practices and give power to marketers to influence and persuade, but at the same time may be intrusive for a customer.

3.5. INTRODUCTION TO MARKETING MIX

Once we have studied and identified our target customers (more details about this concept in pill “Selecting the target market”), with their needs and characteristics, the question arises: how can we reach them? The answer is simple: by developing an effective Marketing Mix, which allows us to: Offer the right PRODUCT to the right CUSTOMER, in the right PLACE, at the right MOMENT and with the right PRICE.

But, what is exactly a Marketing Mix and which are its components? MARKETING MIX It is a set of interlinked Marketing Tools that we can control and modify in order to create a relationship with the customer, as well as meet their needs and, consequently, deliver value to them. The final goal for is to make a profit.

For delivering value to customer, first the company has to create and design a Product or Service that responds their needs. The next step is fixing a Price for that product/service, as well as the way for making available for the customer (Place). Finally, the company has to do the Promotion, in order to create customer awareness about the product/service and motivate its purchase. For more information, see pills “The product”, “the price”, “the place” and “the promotion”. In this process, it is essential that the company cares and manages well the relationship with its customers as well as with other stakeholders taking part in the value chain: suppliers, intermediaries, social bodies, etc.

It is important that all the actions are focused on the competitive advantage achievement. In other words, we should find the core of our business, which makes us different and inimitable.

WHO WE CAN CREATE THE RIGHT MARKETING MIX FOR OUR BUSINESS? The starting point for designing an effective Marketing Mix is to be clear what our target market is, in other words, the client/customer/consumer group we want to reach, its profile and needs. Each Group has its own characteristics, so we cannot enter the market in a successful way without a Marketing Mix strategy suited to its peculiarities. The Marketing Mix is integrated into the company´s Marketing Plan, which puts together objectives, strategies (long-term focus) and actions (with an operational nature). So our Marketing Mix should:  Be aligned with our Strategy and Mission.  Be coordinated with the other business  Consider both opportunities and threats that the environment presents, as the and

strengths

It is the Company´s purpose, related to concepts like company history, business idea, differentiation factors, etc. VISSION

areas: production, finances, I+D, etc.

weaknesses

MISSION

the

company.  Be based on a solid information system,

The future situation that the company wants to reach on the long-term. It should be realistic and is the base for STRATEGY Design. VALUES

They summarize the business culture, a set of factors that the employees have to fulfill.

allowing us to detect the changes

More details about business culture in pill “starting thinking different”

related to customer needs and to adapt

Source. Marketingdirecto.com

to these changes. More in pill “Basics of market research”.  Monitor the competitors’ actions.  Develop mechanisms for monitoring the Marketing Mix implementation. To extend your knowledge about these concepts, see pill “Marketing strategy”.

If our business has several products and/or services or is focused on several target markets, it will be necessary to develop a Marketing Mix adapted to each one of these markets.

THE TRADITIONAL MARKETING MIX: THE 4 PS

PRODUCT

PRODUCT/ SERVICE

PLACE

PRICE

PROMOTION

Before defining the product or service we are going to focus on, we have to be sure that there is room on the market: i.e. a

sufficient number of customers willing to buy our product, because only on this way we can generate sufficient sales for exceeding costs made and make profit.

PRICE

The Price should be suited to the purchasing power of the target market. We should also consider the image of the product/service we want the customer to have in mind as well as the distribution strategy. We can play with customer psychology, but we have to be careful. If both product/service and price do not meet customer expectations, they will not buy it and it is possible that negative comments are made about our product/service.

PLACE

Place refers to how we are going to make the product available to the customer. We have to consider all the possible distribution channels:

direct selling, intermediaries, on-line selling, etc.

One key of success is that the client feels the product meet his expectations. There is no better advertising than "word of mouth" from satisfied customers.

PROMOTION

The goal of promotion is to create a set of messages which reach the customer´s mind, induce a perception, feeling or emotion related to our product/service - creating a need related to our product/service

and knowledge on the existence, while at the same time motivate to take action: the purchase of our product/service. Concepts like branding; originality and differentiation are the keys for achieving it. Take a look to pills “branding” and “brand strategy”.

NEW MARKETING MIX MODELS More info in pill “New approaches to marketing mix”.

7PS of service marketing This approach adds 3 new elements to the traditional 4Ps: People, physical environment and process. Although it was initially intended for services marketing, it can be applied to any business.  People. It is referred to both employees and customers. Frequently employees are those who think of a great product, deliver an excellent service and represent the company. Costumer’s decisions define the course of our business so building a successful communication and relationship with them is essential.  Processes. The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers.  Physical evidence. Whatever the customer can see before purchasing: physical environment, packaging, and anything else that helps in presentation.

The Marketing mix 4 Cs. The 4 Ps described previously reflect the company point of view and is the traditional view on marketing mix. However, developments in marketing have led to the adoption of new focal points, such as the 4Cs theory (where the point of view of customers is reflected):  Place becomes CONVENIENCE.  Price becomes COST for costumer.

 Promotion becomes COMMUNICATION.  Product becomes COSTUMER´S DEMANDS AND NEEDS.

Other approaches More details in pill “new Approaches”.

Objectives

Affordability

Awareness

4 A´s

Acceptability

Operations

Availability

4 O´s

Objects

Organization

EXAMPLE An example of taking the customer as a focal point is the inclusion of specific references of how a product/service resolves a need or problem for our target group. Ciripolen or “uncle Cirilo´s polen” is the name of a famous product and brand located in “Las Hurdes” region (Spain). This is a piece of text describing the properties of its main ingredient. Properties of royal jelly

Royal Jelly has a lot of vitamins. It is specially indicated for children, old people and persons who have wealth problems. It reduces Cholesterol, digestive disorders, retards the skin aging and improves its elasticity, as well as stimulates immune system. Specially indicated for students in periods of intellectual effort

“Specially indicated for students in periods of intellectual effort“ They are creating a necessity in customer´s mind. Without that suggestion, probably few students would have thought that royal jelly could help them to be more active in exams periods. The Ciripolen is mentioned in all the tourism websites of “Las Hurdes” region. It is a handmade product whose purchase is recommended to all tourists, both these websites as several reports on tourism in the area. Even the Ciripolen has become the image of the town

EXTENDING YOUR KNOWLEDGE where it is produced: Las Mestas. Food Trucks Share Social Media Secrets,

http://www.entrepreneur.com/article/235455

Related to food trucks, Jacob Hall presents Good tips on how social media using takes advantages to businesses:

 Understand the platforms and their numerous functionalities, then maximize all of them. Instagram is an excellent tool for visual advertising of the food they sell.

 Learn for the masters: Among the most popular methods are setting a firm schedule for the trucks and using Twitter to keep followers apprised of their every move and stop.

 Sum up the core of your brand in one catchy sentence and post photos that fit in.  Quality control monitored through the photos posted by customers. For example, if a picture of a particular dish looks incorrect, fix the problem can be fixed instantly.

 Match posts

to your market: use certain platforms to reach certain customers. Form

bonds by interacting with customers.

3.6. THE PRODUCT

A product is any kind of thing that the company can offer costumer in order to attract his attention; motivating its purchase and use. The concept of product is larger than tangible goods/articles/commodities, as it covers services, organizations, events, ideas, etc.

The concept of product is huge: A t-shirt is a product, and a horse ride through the countryside is a product too.

PRODUCT FEATURES All kind of products mentioned previously can be resumed in two: In the tourism industry, services are especially relevant, considering that they include a huge variety of experiences we can provide to the customer, meeting his desires and delivering value to him. In general terms, products can be classified in: Convenience products: their purchase is frequent, almost in an automatic way. Examples are most of basic supermarket products: bread, milk, eggs, etc. Comparative products: before the purchase, costumer makes a comparison in terms of brand, quality, price, etc. He makes that comparison when he chooses a hotel for his vacation or when he buys a refrigerator or any other domestic machine for example. Luxury products: their features are unique and frequently associated with a strong luxurious brand and high quality that justify their high price. Lamborghini, Ferrari, etc.

PRODUCT LIFECYCLE: HOW TO ADAPT YOUR MARKETING Most of products experiment similar evolution in terms of sales and profits. The product lifecycle illustrates very well this fact:

Source: http://www.comindwork.com/weekly/2013-09-09/productivity/product-life-cycle-sales-vs-profit

1ºProduct development

New idea of product is emerging and developing. The final version of the product is not ready yet. The company is investing in R&D, so there are no sales for the moment, only costs.

2ºIntroduction

This phase starts with the product´s launching to the market. The sales growth is slow because the product is not well-known yet, so the costs are higher than incomes due to the big investment in promotion and distribution (the company is searching the best suppliers and distribution channels in this phase). Related to marketing strategies, the company can choose a quickly penetration into market by a low price to get a huge volume of sales, or skimming strategy (high price in order to get more markup in every single sale). To find more info about these strategies, see pill “The Price”.

MARKUP = Price – Cost per unit

3ºGrowth

If in the previous phase the product has met customer needs, now the sales start to grow quickly. This fact attracts new competitors, so the huge demand is satisfied by a growing offer, which means that market is becoming bigger and more competitive. To maintain their position in the market, companies start to look for new ways of differentiation: new versions or models, complementary products, improvements, new features, etc. In this phase, the huge sales volume allows companies to get profits.

It starts when sales growth becomes slower and, normally, it is longer than the previous phases. At this time, the offer is too huge for the decreasing demand, so companies invest more resources in offensive actions related to marketing and investigation to maintain their market share by attracting competitor´s MARKET SHARE customers. That means more costs and less profit.

4ºMaturity

One efficient strategy for dealing with this situation is creating new versions of the product in order to enter in new market segments. For more details, see pill “Selecting the target market”

“It is the percentage of business or sales a company wields out of total business or sales by all competitors combined in any given market.” Source. http://smallbusiness.chron.com/marketshare-10349.html

5ºDecline

Sales start to decrease and many companies leave the market. Those companies which continue develop strategies like focusing in a specific market segment or simplifying their offer.

If the branding management is intelligent, the product can live much more time, Coca-Cola and Gillette are examples. See “Branding” and “Brand strategy”.

QUALITY AND SAFETY OF PRODUCTS There are many national, European and international legislations related to quality and safety of products we launch to the market, apart from the ethical values which all the companies must adopt. So when we create and commercialize a new product, we need to have the guarantee that it is reliable and fulfills quality standards, as well as that the customer can use it without any risk or damage. In other words, we have the responsibility about the product and the damages it could cause as a result of negligences in production, marketing, logistic, packaging and all the aspects around the production, commercialization and after-sale. Misleading advertising or toxic materials in our products can cause bad reputation among stakeholders and even a complaint involving legal procedures. For the company, that means losses. For more information, see pill ”Sustainable marketing”.

EXAMPLES. PRODUCT LIFECYCLE: HOW TO SURVIVE DECLINE PHASE? It is a fact that decline is the toughest phase in a product life, but there are strategies for revitalizing it, one of them is the following: Show or create more uses for the product. These are some examples:

Strategies to follow:

EXTENDING YOUR KNOWLEDGE What Are the Benefits of Packaging in Marketing?, By Miranda Brookins, eHow Contributor http://www.ehow.com/list_6300400_benefits-packaging-marketing_.html Importance of Product Packaging in Marketing, by Kristie Lorette, Demand Media http://smallbusiness.chron.com/importance-product-packaging-marketing-648.html

SMART PACKAGING: IMPORTANCE AND BENEFITS Function: Protect products

Attract consumers: Facilitates Purchase decision

Promotion: Provide information Differenciation: Reinforce branding and logo

3.7. THE PRICE

At first approach, we can say that the price is the amount of money which the customer pays for a product or service. In a larger sense, it is the sum of the values that customers give in exchange for the benefits of using it. The price is the only element of marketing which produces income. It is also the element the most rapidly can be altered by the company.

THE ROLE OF THE PRICE / CONSIDERATIONS FOR PRICING There are a number of factors that influence the pricing: offer, demand, competitors ‘price, legislations, economic situation, ethic and values, etc. Considering the market environment, when a company wants to set a reasonable price for one given product/service, it needs to answer several questions at first:  What price are customers willing to pay? It is influenced by the customer´s perception in terms of product value. For more information about “product value”, see pill “marketing concept”.  What is the cost of producing the product? The company has to ensure that there is a margin between cost per unit and price; it is the only way of getting profit.  What is the competitors´ price? Within this question, there are some further aspects to consider: o

How is the competitor´s product in terms of value? We can set a price higher than

competitor´s if our product is better than competitor´s in terms of quality, features, design, etc. o

How strong are competitors and what their pricing strategies? If the market is

dominated by a few huge companies, my little enterprise can focus in small unattended market niche and offer high valued products with a higher price.

 Is the product/service unique or easily replaceable? If our product has a specific feature that makes it different and unique, we can set a high price for it. Otherwise, if it is pretty common, the best way to compete is to offer an attractive price and try to reduce the cost in order to maximize the profit margin.

PRICING STRATEGIES NEW PRODUCTS

•skimming pricing •penetration pricing

EXISTING PRODUCTS

•product line pricing •captive product pricing •pack of products •segmented pricing •psychological pricing •dinamic pricing •international pricing

When we want to launch a new product to the market, we have to study which of the following strategies are the most suitable:  Skimming pricing: Company sets a high price with the goal of obtaining the maximum income, so it is focused on the target who is willing to pay this high price, maximizing the profitability. In a second phase, the company is gradually lowing the price to get access to more segments. This kind of strategy is used with electronic articles, like smartphones or tablets. MARKET SHARE

“It is the percentage of business or sales a company wields out of total business or sales by all competitors combined in any given market.”



Penetration pricing: Company sets a low price with the

goal to attract the maximum number of buyers, getting a high market share. The fact of obtaining a huge sales volume makes the cost per unit decreases, so the company can low the price even more.

Strategies for products which are not new:  Product line pricing: normally, the companies do not have one unique product, but a line of related products. We have a lot of examples. Sony does not offer one unique TV, but diverse models: since the most basic version to the most developed, with different sizes, screen features, etc.

To develop this strategy, we have to consider the difference among the cost of producing every model within the line, as well as the competitors´ price and the customer´s expectations. When the company sets the price in function of the different models, the customer associates different level of quality with each model and, consequently, he will choose the model which suits with his purchasing power or the level of quality he is looking for.  Captive product pricing: for products whose use is necessary with the main product: for example the spares of Gillette or the toner for printers. In these cases, the company puts a low price for the main product (printer) and a high price for the captive one (toner). Considering that the customer necessarily has to purchase the captive product, here is where the company obtains profits.  Pack of products: the company combines several products and commercializes them like a one unique pack with reduced price. As an example, we have the case of hotels: usually they sell a pack consisting of accommodation, meals and leisure activities and the price for it is cheaper than the amount of money the customer would pay if he buys each element separately. Using this strategy the company gets to sell products that customer would not buy isolated.  Segmented pricing: there are different prices for the same product, according with each segment features. The segmentation criteria can be the customer profile, geographical, distribution channel, etc. As an example, when we are speaking about segmentation by customer profile, we have the reduced prices for seniors or students in public transportations or in the museums tickets. For more details about segmentation, see pill. “selecting the target market”.  Psychological pricing: this approach considers the psychological non-rational part of prices, not only the economic aspects. It is very common seeing in the supermarket lot of

articles whose price is 0.99 cents instead of 1 euro, the difference is only 1 cent but this little detail makes the customer perceive that the product is much cheaper.  Dynamic pricing: It is a continue price adjustment in function of the demand evolution and other individual circumstances. For example, some of the music online retailers set the same initial price for downloading a song, but the price is gradually rising as downloads increase.  International pricing: the enterprises that commercialize their products in several countries adjust the price considering the specific conditions in each of them, as well as the costs generated as a result of taking the product to each country. This is the reason why the Levi´s jeans are more expensive in Europe compared to USA. For more information about international marketing, see pill “Rapid Globalisation”.

EXAMPLE Pricing strategies for tourism businesses, tourism industry blog http://www.tourismindustryblog.co.nz/2010/03/pricing-strategy-for-tourism-businesses/ When it comes to tourism business, there are several pricing strategies you should know:  Package deals: Developing packages with complimentary tourism partners in your area or with value added components is a good way to stimulate demand without having to discount. Packaging can also be used to target niche markets effectively e.g golf weekend, food and wine tours, pampering packages etc.  Seasonal pricing: Using a mix of pricing throughout the year to cover low and high seasons is a standard way for tourism businesses to cater for different levels of demand due to the time of year.  Last minute pricing: A common method for accommodation suppliers to fill those last minute gaps in inventory availability, based on a discount off daily prices.  Per person pricing: Commonly used by activity/attraction and transport operators or backpacker accommodation and camp sites. Options may include an adult, child and senior citizen price.

 Per unit pricing: for example Price per night, this is the standard way to price accommodation, usually the advertised price is for 2 people so if the accommodation fits more than 2 guests it can have a mix of the per person pricing with extra adult and extra child rates.

FUTHER READING Seven biggest mistakes in setting prices, by Brad Sugars. http://www.entrepreneur.com/article/196678 Pricing is a considerable challenge for all kind of business, especially in highly competitive industries. It is complicated to establish the balance between risk of setting prices too high (you may push potential customers away) and risk of setting prices too low (you cut profits). Brad claims that “there are no secrets in business, there is just information you don't know yet”. Thus, when it comes to pricing, the better information you have about the market and your finances, the better you set the prices for your products. There are several common mistakes in pricing to be avoided:  Enter into the market with too low prices and maintain it all the time: going in too low could be positive at the beginning, since you possibly have significant initial revenue, but in a long-term, your profit could be not enough to survive.  Use the same margin for all products: in fact, those products whose purchase is not frequent need higher profit margins. Even when your profit is based on high sales volume of low-margin products, you should continue to add value and increase these margins, considering that these small increases will be a positive contribution on global profit.  Forget to take all cost into account: In order to price correctly--every cost needs to be identified.  Instead of "following" your competition, do a bit more homework and start to discover and uncover the value you truly offer your customers. Then price for value.

3.8. THE PLACE

To produce and deliver the product to the customer, we need to create relationships not only with him, but also with the key intermediaries within the distribution channel, considering that it is not usual that companies sell their product directly to customers. But, what is exactly a distribution channel? A distribution channel includes all the stakeholders involved in delivering the product/service, from the producer to the final customer.

NATURE AND FUNCTION OF DISTRIBUTION Working with intermediaries (wholesalers, retailers, transport and logistics companies, etc.) has an important advantage: these stakeholders are capable of supplying the product to the market in a more efficient way, because of their networks, experience and specialization. In addition, the company save costs and efforts, the same thing happens to the customer, because there are fewer transactions. How a Marketing intermediary reduces the number of channel transactions

Fuente 1. Principles of marketing, Kolter & Armstrong

This fact adds value to the process too, because of some of the intermediaries’ functions:  Information: They gather useful information for market researches. For more details about marketing research, see pills “basics of marketing research” and “how to perform market research”.  Support and strengthen promotion activities.  Networks: they get to access and communicate with more customers within the target market.  Adequacy: they shape and adapt the offer to the customer needs and desires, because frequently they pack the product.  Distribution: they transport and store commodities.

KINDS OF DISTRIBUTION CHANNELS First of all, the channel can have different levels; each of them consists of a group of intermediaries who have the same function. Considering the number of levels, we can find:

Source. Principles of marketing, Kotler & Armstrong

All of them are conventional distribution channels, which consist on several producers, wholesalers and retailers working independently, trying to maximize their own profit. The problem with this way

of distribution is that often makes the profit of the

WHOLESALER

whole channel decrease. There is not leader within the channel, neither a mechanism to assign functions or solve the conflicts or disagreements.

His function is to buy large quantity of goods from various producers, then stores them and resells to retailers.

Other kind of distribution channel is the “vertical

RETAILER

marketing system”, when these stakeholders work

They sell goods to the final costumer, as opposed to wholesaler or suppliers, who sell their goods to other companies.

together and one of them is in charge of the leadership. This kind of channel is more common nowadays, especially when big companies are involved.

In practice, most of companies use different distribution channels instead of using only one defined channel. The reason is that the companies, even the smaller ones, offer their products/services to different customers with specific profiles and locations so, if the company wants to reach each of them, it has to use the most suitable channel in every case. This method has other advantage: producers do not depend on one intermediary, therefore if one distribution channel does not work, they can count on the other channels and their product/service continues to carry out.

PROMOTION WITHIN THE CHANNEL It is really common thinking about the promotion (see pill. “the promotion”) as the way to convince and attract the customer to buy our product or service, but certainly, promotion can be focused on the distribution channel too, so there are two marketing strategies in this area: 

Push strategy: the main focus is to sell the product/service to intermediaries of the distribution channel by convincing them about its value. On this way, intermediaries will effort to promote the product/service to the final customer.



Pull strategy: focuses on creating a necessity of purchasing our product/service in customers. Consequently, the customer will demand the product and intermediaries will be willing to distribute it.

CONSIDERATIONS FOR CHOOSING THE BEST DISTRIBUTION CHANNEL Choosing the right distribution channel is an essential fact, because the channel we choose to make available the product to the suitable customer has an impact in our sales. Customer access is essential. Our product cannot be the best, but if we know how to put it in customer´s hands in a smart way, certainly our sales will grow.

For this reason, before make this decision, as company, we have to consider several questions: 

Customers profile and how their decision-making process is: what reasons make the customer buy our product and not the competitor´s, how is the purchase action (place, time of the day or week, frequency and effort of purchase, etc.).



Don´t confuse channel partners with final customers. The interests and motivations are not the same and neither the way to deal with them.



Link and align our value proposition with theirs, in order to have a coherent offer and promotion, and communicate a standard message to the customer.



Before doing distribution agreements, we have to be clear what is the level of control we want to have of our product, as well as what roles each partner are going to execute to avoid future conflicts.

For more info about customer profile and value proposition, see pill “marketing concept”.

EXAMPLE 5 Distribution Channels Every Tour Operator Should Harness, by Christabelle Tani. https://www.rezdy.com/blog/5-distribution-channels-every-tour-operator-should-harness/ There are two online distribution channels to consider:  OTAs: Online travel agencies will list your tour or activity on their site and allow their users to search for and click through to book with you. There are a number of them, these are the top three in 2014: o

Booking.com, approx. 166 million visits in January 2014.

Tripadvisor family: approx. 159 million visits in January 2014.

Expedia family: approx. 59 million visits in January 2014.

info

in:

http://skift.com/2014/02/24/the-top-online-travel-booking-sites-for-

january-2014/  Daily Deal Websites: Vouchers and coupons are the perfect channel for filling your capacity during slower periods. Just remember to set a logical limit to the number of coupons sold, and not to offer a discount that is too high. Some examples: o

Groupon and goodlife: shows a range of coupons and discounts related to travels, events, restaurants,

things

do,

beauty

and

spas,

etc

http://www.groupon.com/?post_subscribe=true and www.goodlife.com

FUTHER READING Small Business distribution strategies, my marketing dept. inc. http://www.mymarketingdept.com/small-business-distribution-strategy This article gives some good reasons to utilize distribution channels partners:  Expand sales quickly.  Physical Product Distribution.  Add value, through providing additional services to the end-user like installation, assembly, and customization of the product or service. And different kind of partners:  Outside sales agents: only performs the sales function on your behalf  Distributors/ wholesalers: carries physical inventory & performs the physical distribution and sales function on your behalf.  Franchising: An independent reseller that purchases the rights to a distribution or sales territory of a single product/service brand.  Retailers/dealers: sells to end-users and usually inventories physical product.  Value added resellers: sells to end-users and adds tangible value to the product or service being sold.

3.9. THE PROMOTION

Promotion is a set of messages which the company sends to the customer to influence his way of thinking and acting:  Persuade about the value of our product/service.  Create a necessity in customer´s mind.  Create awareness.  Remind the brand.  Move to action.

PROMOTION TOOLS. ADVANTAGES AND DISADVANTAGES There are a large group of promotion methods, but certainly the most effective way of using the promotion is to develop an integrated strategy (more info about this concept in pill “marketing strategy”) which combines smartly all the tools described below:

ADVERTISING It is any form of paid communication for product, service and idea. There are some considerations to get an effective advertising: 1.

It is necessary to have in mind a clear Mission, focused on

defining objectives: inform, persuade, remind or reinforce a specific message, according to the company´s strategy. 2.

Money or budget decisions should consider the stage of

product lifecycle (see pill “The Product”), market share,

MARKET SHARE “It is the percentage of business or sales a company wields out of total business or sales by all competitors combined in any given market.”

competition, advertising frequency and product substitutability. 3.

Choose the most suitable media to deliver the message: newspaper, television, direct mail,

radio and the internet. It is important to grab attention of the target audience.

4. Checking if the advertising has been effective is essential; one way to check it is to study the evolution of sales after launching the message.  Advertising can reach a huge target located in different geographic areas in a rapid way and also permits to repeat the message many times in a short time.  Sometimes it can be impersonal and not as persuasive as direct selling or marketing. The reason is that advertising is unilateral, so audience does not feel obliged to answer.

DIRECT MARKETING The company does not use intermediaries to deliver the message to the customer. In recent years, direct marketing has experienced a great growth because of the internet: free tools like mailing, profile on a social network and even a website are frequently the most effective ways to influence the customer. More info about e-marketing in pill “the digital age”.  It is an interactive way of promotion, therefore the company obtains feedback about the preferences and necessities of the target and a stronger relation with customer, which creates loyalty based on a personal treatment.  It requires more commitment and time from the company.

PUBLIC RELATIONS This way of promotion is focused on influencing and shaping public opinion, that is the reason why it is useful for building a good company reputation and image among stakeholders in general sense. Be present in events or even organization of these are effective ways to generate publicity, credibility, partnerships and customer loyalty.  Public relations generate credibility about the offer and business.  This way of promotion takes much time and excellent communication skills from representatives of the company.

SALES PROMOTION Sales promotion techniques have a short-term goal, in other words, they try to enhance the purchase in a rapid way, generally, by reducing the overall cost of the product/service (same

product for less money) or by adding an extra value (more product for the same money). The most popular ways of promotion sales are the following:  Coupons  Promotional pricing  Loyalty programs  Free trials and sampling  Rebates  Sales contests  They are powerful tools for attracting customer attention, as they offer strong incentives for clients to purchase. They are excellent complements for the existing offer too.  They do not contribute to create loyalty and long-term relationships.

SPONDSORSHIP This way of promotion is supporting an event, activity or organization by providing financial resources, in return, company obtains advertising space. Sponsorship is common in sports, usually the logo of the sponsor company appears in players outfit.  Nowadays, sponsorship requires really restrictive contracts and the company needs a lot of financial resources if it wants to have recognition.

INTEGRATED MARKETING COMMUNICATIONS Sales Promotion Direct Marketing

Coherent, clear and attractive messages about the company and brand

Spondsorship

Public Relations

Advertising

This approach aims to align and coordinate promotion tools described before in order to create a unified, coherent and consistent image of the company/product/service/brand across multiple communication channels. Certainly, the effect of a promotion campaign will be more positive if each communication channel works together as part of a whole rather than in isolation.

One effective way to deliver our message is using both traditional and digital media. As a SME, advertising in regional newspapers and TV or radio channels is affordable, and guarantees that people around you know your product/service. That way of promotion can be complemented by digital promotion using social media and websites, which lets customers located in other geographic areas be aware of your product/service too. All these little actions are easy to do and not so expensive in terms of time and cost.

EXAMPLE OF AN INTEGRATED PROMOTION CAMPAING One smart way to combine advertising + press relations + direct marketing + sales promotions is the following:

ADVERTISING •Raise awareness of a product •Generate leads for the sales force

PRESS ARTICLES •Reinforce the messages launched in the advertising

DIRECT MARKETING •Follow up inquiries from the advertising or press campaigns •Provide prospects created with information

SALES PROMOTIONS •Convert those prospects to customers.

Find out more information at: http://smallbusiness.chron.com/importance-integratedmarketing-communications-73248.html

Further reading

http://www.tronviggroup.com/the-difference-between-marketing-and-branding/ http://en.wikipedia.org/wiki/Brand

4.2. BRAND STRATEGY

How can I reach my segment? Brand Strategy is How?

you plan on communicating and delivering on your brand messages.

What? Where? When?

To whom?

Defining your brand answer to the quesitons

Defining your brand Questions to ask yourself before working on a new brand or rebranding: What is your company‘s mission?

What are the benefits and features of your products or services?

What do your customers and prospects already think of your company?

 Who I am?  Who need to know?  What do they need to know?  How the will find out?  Why they should care?  How do i want to respond? Do you research?

What qualities do you want them to associate with your company?

Learn the needs, habits and desires of your current and persective customers. And dont rey on what you think they think. Know what they think.

Developing your brand

Get a great logo

Write down your brand messaging

Integrate your brand

Create a voice for your company that reflects your brand

Develope a tagline

•Place it everywhere

•what are the keys messages you want to communicate about your brand? Every empoyee should be aware of your brand attributes. •Branding extends to to every aspects or your business - how you answer your phones, what you or your salesperson wear , your e-mail signatures.... •The voice should be applied to all written communications amd incorporated in the visual imagery of all materials, online and off.

•write a memorable, meaningful and concise statement of your brand

Design templates and create brands standarts for your marketing materials

•use the same color scheme, logo placement, look and feel throughout.

Be true to your brand

•customers wont return to you - or refer you to someone else - if you dont deliver on your brand promise.

Be consistent

•If you cant do this, your attempts at establishing a brand will fail.

The importance of targeting

Focus on your target market (more on targeting - in pill "Selecting the target market")- Your value proposition must be relevant to your target market. This means your target market must be identified and clearly defined. It's important in this process to find the right balance when defining your target market in a way that causes your audience to recognize that you are talking specifically to them. This often requires companies to narrow down their target market, so that the message is strong, compelling and clear. This strategy is probably the most important of all – no matter how amazing, appealing or unique your product or service is – if it is marketed to the wrong people it will never reach its full potential. The ideal Target Market is a clearly identified group(s) of people/organisations who/which…

 Need – and more accurately ‘want’ – your products or services  Can afford to pay for your products or services  Can be easily reached by your marketing efforts  Have similarities (demographic/psychographic) that enable you to easily identify them and ‘group’ them together.

Brand packaging Branding is your identity in the marketplace, is yours saying what it should? Your company image is all about the appearance of your packaging. What is your company image saying to the marketplace? It's important to realize that packaging always either has a negative or positive influence on the purchaser. A negative impression can detour a potential customer, just as a positive reaction can influence a customer to buy. A time to pay special attention to your packaging is when you are in the launch of a "new" brand. If you've already built a strong brand that others recognize often people may not pay as close attention to the packaging. How can you package your brand so that it is an integral part of your business and represents a strong identity? Keep in mind that packaging isn‘t only a box that contains a product, but as a vehicle that reflects your company's brand and image. Packaging can be judged and represented by the following common business tools:

Business card and stationery

Website

Answering system

Email address

• Are they are saying we are strong, we are confident, and we can succees in helping you?

• Does it reflect professionalism, clarity and show them that you respect and care about them?

• Does it say we are here to help you, eager for you business and will do what it takes?

• Does it suggest your role in the company, is it easy to remember, and does it something about you and your business?

All these things speak volumes about your image and they either strengthen or weaken your brand. Your image is all in the packaging. Would potential clients take a second look or is your message getting lost? If you thought these things were not worth the investment or didn't matter, you were wrong. Clients and customers will make assessments of your company based on these things and while not always conscious, that customer appraisal says much about your business, your attitude and your priorities.

Examples http://www.setteradvertising.com/4-examples-of-brand-strategy-driving-organizationalsuccess/ 4 stories of organizations who have developed bold brand strategies to distinguish themselves, gain competitive advantage, and drive sustained growth. These organizations understood that representing something truly meaningful to some ultimately attracts attention, builds momentum, and earns a brand identity that ultimately appeals to all.

Further reading http://www.businessbanter.com/featured/how-to-stay-focused-on-your-target-market/ http://www.inc.com/guides/201104/how-to-narrow-your-target-market.html

4.3. SOCIAL MEDIA

Social media is the social interaction among people in which they create, share or exchange information and ideas in virtual communities and networks. Social media depend on mobile and web-based technologies to create highly interactive platforms through which individuals and communities share, co-create, discuss, and modify usergenerated content. They introduce substantial and pervasive changes to communication between organizations, communities, and individuals. These changes are the focus of the emerging field of technoself studies. Social media such as blogs, microblogs or electronic social networks can transform the ways in which we relate to other people and organizations. Social-media technologies take on many different forms including magazines, Internet forums, weblogs, social blogs, microblogging, wikis, social networks, podcasts, photographs or pictures, video, rating and social bookmarking. Technologies include blogging, picture-sharing, vlogs, wall-posting, music-sharing, crowdsourcing and voice over IP (Internet Protocol), to name a few. Social network aggregation can integrate many of the platforms in use. Social media is the collective of online communications channels dedicated to communitybased input, interaction, content-sharing and collaboration. Websites and applications dedicated to forums, microblogging, social networking, social bookmarking, social curation, and wikis are among the different types of social media. Thereâ&#x20AC;&#x2122;s no denying the fact that social media has changed the face of marketing forever â&#x20AC;&#x201C; and one of the most significant ways that it has altered the marketing landscape is the role it has played in the business sales funnel! Today, social media is a key touchpoint in the consumer experience and therefore the overall sales funnel. From blogging, paid ads on various social media platforms, to branded company pages and accounts, it has changed the way that businesses not only communicate with customers, but how they collect and gather data about their behavior as well.

It all starts with building a strong foundation based on the principles of social media marketing, the varied roles it plays, and the steps toward a successful sales program that has a positive impact on every segment of the sales funnel.

Role of Social Media in Marketing Social media represents low-cost tools that are used to combine technology and social interaction with the use of words. These tools are typically internet or mobile based. Social media gives marketers a voice and a way to communicate with peers, customers and potential consumers. It personalizes the "brand" and helps you to spread your message in a relaxed and conversational way. The downfall to social media, if you could call it that is that it must be a part of your everyday life in order to keep the momentum and attention you need for it to be successful.

What role should social media play in marketing? •We can use social media to provide an identity to who we are and the products or services that we offer. •We can create relationships using social media with people who might not otherwise know about our products (More about product see pill „The product“...) or service or what our companies represent. •Social media makes us "real" to consumers. If you want people to follow you don't just talk about the latest product news, but share your personality with them. •We can use social media to associate ourselves with our peers, that may be serving the same target market( more on targeting - in pill "Selecting the target market”...) •We can use social media to communicate and provide the interaction that consumers look for. The first is developing awareness, or initial discovery on the part of the customer. Whether this can be accomplished through advertising, sponsored posts, influencer outreach, or simply creating content that encourages sharing, a social platform is often the initial introduction to a brand, which happens in the widest part or the top of the funnel.

The second is customer education or building loyalty and influence through sharing useful, entertaining, or otherwise valuable content via social networks. Social media allows you to build resources for your customers and to develop a new type of trust and rapport with your audience by humanizing your brand, which occurs near the middle of the funnel.

http://www.business2community.com/social-media/role-socialmedia-business-sales-funnel-01029848

The third is empowering customers to not only engage with your brand, but to share their own usergenerated content or otherwise interact via social platforms for customer service purposes, creating their social proof via affinity with a brand, and more. This happens at the end of the funnel.

The fourth – and perhaps the most valuable role – is how social media allows business owners, brand managers, and other marketing professionals can collect data using social media. Not only can social networks be used as a sort of free focus group or free source of market research, it can also allow you to get to know your existing customers on a much deeper level. This role plays out at the very bottom or the narrowest part of the funnel, then the associated knowledge informs the activities at the top. These are the roles that social media plays in the sales cycle or funnel – and the next level of involvement in social media marketing for businesses is understanding and executing on the steps required to get there. Before you start with Social media:

 Make a decision about your Social Media;  Know your customer by developing a buyer persona (visualisation of your customer);  A consumer needs interesting content to stay involved in facebook page;  Prepare 30 messages (relevant content, funny video‘s/pictures, product information etc. );

 Study

website analytics (which keywords are searched, which information is preffered);

 Think big, start small. 3

If you aren't already familiar with social media, the terminology and the range of different services can seem daunting at first. But it's worth learning more. Most social media services are affordable and easy to use, and they can put your business in touch with customers like never before.

EXAMPLES http://reputation-communications.com/you-online/general-motors-winning-praise-socialmedia-strategy/ General Motors is using social media to manage customer complaints and its reputation — and using it well. How they are applying social media management is a good case study for other companies in crisis.

FURTHER READING Hafele, N. (2011). “Social Media Marketing: Interaction, Trends & Analytics”, ICT 511 Fall Barefoot, D., and J. Szabo. (2010). “Friends with benefits: A social media-marketing handbook”. San Francisco: No Starch Press. http://www.business2community.com/social-media/role-social-media-business-sales-funnel01029848#F411eLLuA0qTKdPw.99 http://www.sas.com/resources/whitepaper/wp_23348.pdf http://www.entrepreneur.com/video/238691 https://www.youtube.com/watch?v=K-yQAQX3xjo&feature=c4overview&list=UUpgOA_2PgxytY095LqoOkug

4.4. ADVANTAGES AND RISKS OF USING SOCIAL MEDIA

Too many businesses enter into social media because it's 'the done thing' - they feel they should have a presence purely because their competitors do. There are a number of real benefits to getting involved with social media, provided it is properly planned and executed.

Advantages of using social media Business advantages of effective social media use include:

 compelling and relevant content will grab the attention of potential customers and increase brand visibility;

 you can respond almost instantly to industry developments and become heard in your field;

 it can be much cheaper than traditional advertising and promotional activities;  social content can indirectly boost links to website content by appearing in universal search results, improving search traffic and online sales;

 you can deliver improved customer service and respond effectively to feedback;  customers can find you through new channels, generating more leads;  increased loyalty and advocacy from the customers you've connected with;  Find out what your customers really think about you – The idea of filling out a compliment card at a restaurant or going online to fill out a lengthy form is foreign to most people today. With social media, a customer can report a pleasant experience with a brand on social media and other’s can see the positive feedback. Free promotion!

 Reach your customers quickly – When a company has a last minute sale or wants to offer up a promotion, social media can act as a free medium to reach customers Brand recognition – Through social media campaigns, companies can get their brand out there and remain relevant to consumers. Through Facebook and Twitter, brands can roll out a new logo or start a hash tag pertaining to their product;

 broad reach - social media can reach millions of people all around the world;  ability to target particular groups - many forms of social media (e.g. Facebook, Foursquare) allow businesses to target specific groups, often in particular locations;

 free or low-cost - many forms of social media are free for business, and paid options are usually low-cost;

 personal - social media allow you to communicate on a personal basis with individual customers and groups;

 fast – you can quickly distribute information to many people;  easy - you don't need high-level skills or computer equipment to participate in social media. The average person with a standard computer should have no difficulty.

Risks/Disadvantages of using Social Media 

Word travels quickly – If I find a hair in my food or my server picks their nose before

serving me my food, I can snap a picture and share my terrible experience with the world. While these situations can’t completely destroy a company, it is important that they are handled quickly and not just dismissed 

Trying too hard to stay current – Current events and pop culture are easy topics to

have commentary on. Companies often try, sometimes too hard, to put in their two cents. Commenting on the Academy Awards or the Super Bowl is an easy way to show your company is with it, but missing the mark is sometimes embarrassing, ex:JC Penny’s tweet pretending to be drunk before the Super Bowl to sell gloves. 

Woops, wrong account – This happens pretty often and provides a

laugh for everyone except for a company’s PR department. The social media person has both their personal account and the official work account hooked up to their phone and they accidently tweet something controversial from the

company’s account. Be careful and make sure you aren’t tweeting about your wild Saturday from the corporate Twitter account.  You will need to commit resources to managing your social media presence, responding to feedback and producing new content. 

It can be difficult to quantify the return on investment and the value of one channel

over another. 

Ineffective use - for example, using the network to push for sales without engaging

with customers, or failing to respond to negative feedback - may damage your reputation.

The reality of using social media Social media (more about social media see in pill „Social Media“) is an absolute necessity to any company that wants their brand (more see in pill „Branding“) to stay relevant and recognized by consumers. Unfortunately it is a double-edged sword and while not all interactions are pleasant, how you deal with them as a company can really effect customer perception. Companies that delete negative feedback or don’t respond in a timely manner definitely give customers a bad impression of the brand. Be sure to have someone checking it constantly and be sure they know how to respond to any feedback that comes their way. Social media can be a great marketing tool if used correctly.

Advantages and Disadvantages of Using Social Media to Bring Attention to a Product Social networking sites like Facebook and Twitter have transformed the way some businesses think about advertising. Some businesses direct customers toward their social network pages more than they direct them to their own websites. There are certain advantages to marketing via social media, but there are a few related drawbacks as well. Social networking websites provide advertisers with the ability to target audiences based on site users' personal interests and what their friends like. For example, list country music as one of your interests on a social networking site, you will most likely be seeing ads about country music concerts and artists. Some sites' advertising will also highlight which country artists your friends like to provide a personal connection. With such "smart" marketing, advertisers effectively reach the people who are most interested in what they have to offer. Furthermore, social networking enables word of mouth to promote products beyond what advertising alone does.

Some social networking services provide analytic services to their advertisers. With analytics, you have the ability to track which type of advertisements are attracting the most web traffic and demographic information such as the age of people most interested in your product. This type of information equips you to make your products and your advertising more effective. One benefit of social network marketing is that it lets you interact with potential customers with conversations threads and forums. Engaging people in conversation makes them more likely to take a deeper interest your product, but it can be a disadvantage because keeping up with your followers' questions can be time-consuming. If you can't keep up with the conversations and meet your followers' needs, they lose interest. The speed at which social media transmits news about your business can be an advantage or disadvantage. One well-placed, slanderous comment has the potential to damage your business's name quickly. The good news is that with instant updates you have the opportunity to announce your defense quickly. Social networking also gives you the ability to notify your followers instantly about product updates, new releases and even recalls. Live, current content through social media makes your advertising feel less static and makes your products more attractive.

EXAMPLE Brief descriptions and links to 10 Examples of Agriculture in Social Media. All, of which, are varying in content and social media platform. They are in no particular order. https://hoofprintsandheels.wordpress.com/2012/06/22/10-examples-of-agriculture-in-social-media/

FURTHER READING Understanding risks, benefits, and strategic alternatives of social media applications in the public sector http://www.sciencedirect.com/science/article/pii/S0740624X12001025 http://socialnetworking.lovetoknow.com/Advantages_and_Disadvantages_of_Social_Networking Arthur, d., Sherman, C., Appel, d. & Moore, L. (2006). “Why young consumers adopt interactive technologies. Young Consumers” Borges, B. (2009). “Marketing 2.0 Bridging the Gape between Seller and Buyer through Social

4.5. SOCIAL MEDIA STRATEGY

Social media is the social interaction among people in which they create, share or exchange information and ideas in virtual communities and networks. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content."

Why we need a social media strategy and how do it right? If you want to attract and engage social-media fans and followers — and convert them into paying customers — you need to map out a clear, goal-oriented social media plan.

How to do it right? •You cannot just depend on social media, you must integrate it with other vehicles of marketing. •Be yourself, reflect personality. There are no written "right" or "wrong" rules when it comes to social media, only you can determine what will work for you. •Be consistent, if you do not plan on being consistent don't do it at all - it's a waste of everyone's time. Start with a Plan - Before you begin creating social media marketing campaigns, consider your business’ goals. Starting a social media marketing campaign without a plan in mind is like wandering through a forest without a map—you’ll only end up lost. Create a social media marketing plan and brainstorm about your goals:

 what are you hoping to achieve through social media marketing?  who is your target audience? (more on targeting see in pill "Selecting the target market")  where would your target audience hang out and how would they use social media?  what message do you want to send to your audience with social media marketing? 1

 Developing Your Goals. Social media marketing can help with a number of goals, such as: o o o o o

Website traffic Conversions Brand awareness Creating a brand identity and positive brand association Communication and interaction with key audiences

Best Social Media Marketing Tips • Planning – building a social media marketing plan is essential. Consider keyword research and brainstorm content ideas that will interest your target audience. • Content is King — Consistent with other areas of online marketing, content reigns king when it comes to social media marketing. Make sure you are offering valuable information that your ideal customers will find interesting. Create a variety of content by implementing images, videos, and infographics in addition to classic text-based content. • Consistent Brand Image — Using social media for marketing enables your business to project your brand image across a variety of different social media platforms. While each platform has its own unique environment and voice, your business’ core identity should stay consistent. • Blog — Blogging is a great social media marketing tool that lets you share a wide array of information and content with readers. Your company blog can also serve as your social media marketing blog, in which you blog about your recent social media efforts, contests, and events. • Links — While using social media for marketing relies primarily on your business sharing its own unique, original content to gain followers, fans, and devotees, it’s also great to link to outside articles as well. If other sources provide great, valuable information you think your target audience will enjoy, don’t be shy about linking to them. Linking to outside sources improves trust and reliability, and you may even get some links in return. • Track Competitors — It’s always important to keep an eye on competitors—they can provide valuable data for keyword research, where to get industry-related links, and other social media marketing insight. If your competitors are using a certain social media marketing technique that seems to be working for them, do the same thing, but do it better! • Measure Success with Analytics —You can’t determine the success of your social media marketing strategies without tracking data. Google Analytics can be used as a great social media marketing tool that will help you measure your triumphant social media marketing

techniques, as well as determine which strategies are better off abandoned. Attach tracking tags to your social media marketing campaigns so that you can properly monitor them.

SOCIAL MEDIA TOOLS Using social networks can make you stand out from your competitors. Engaging with your customers online can raise awareness and build your reputation as a trusted supplier. Social networks give your business an opportunity to gain new contacts from the comfort of your office. Don't underestimate the savings in cost, time and other resources such as travel that not having to attend a physical networking event can bring to your enterprise. Social networking can improve your business in a number of key areas:

 recruitment  marketing  brand building  customer interaction  locating strategic commercial partners  gathering business intelligence When choosing which social media platform to use, it's important to understand where your customers are (more about research see in pill „Basics of marjet research“). You should target your efforts towards the channels they use. In some cases, you will find your best choice is obvious - for example, you may already know that there is a group on Facebook that reflects your business interests and is used by your customers. You may find you need a combination of social media channels to cover all your needs.

Blogs Blogging involves posting regular stories, pieces of commentary or other content to a website, which can be accessed and read by customers and other industry professionals. Most blogs are interactive, allowing visitors to leave comments and message each other.

By creating thought-provoking posts on industry issues, you can build a reputation as an authority in the field, stimulate discussion and strengthen your relationship with customers. Blogging also provides another route for potential customers to find you if they're not aware of your website.

Online Public Reaction Online PR may include engaging or responding to blogs that are not your own, with the intent of marketing or advertising your product or service. You will need to pay attention when choosing the blog you wish to engage so that you have the right target audience.

Social network channels Social network services are online platforms, which allow people to create a profile representing themselves, and connect with others to broadcast information, stay in touch, send messages and recommend one another. You could either join a general social networking site - such as Twitter or Facebook - or a specialist site for professionals and businesses such as LinkedIn. Social network channels allow you to build a community of engaged customers who will spread your news and information for you. They can also help you get answers to business questions and find new suppliers. Having a presence on a social networking channel can keep you on your industry map with relatively little time and effort.

Internet forums An internet forum, or message board, is an online facility where people can ask questions and hold discussions by posting and replying to messages. Participating in industry and consumer forums to share your expertise and give constructive advice can boost your reputation. Many forums are moderated (that is, messages are approved before they appear online) so you will need to think carefully about how you present any sales messages. Responding on a forum purely to post sales messages will not impress potential customers and may get your messages rejected or even banned.

Examples Case study: Begining Butique- young girl starting her business. http://www.business.qld.gov.au/business/support-tools-grants/support/queensland-business-casestudies/its-all-about-personality Farmers blog, only in lithuanian language and facebook http://naujokoukis.blogspot.com/p/apieuki.html https://www.facebook.com/NaujokoUkis?fref=ts 10 Top Business Blogs and Why They Are Successful http://www.socialmediaexaminer.com/10-topbusiness-blogs-and-why-they-are-successful/ Cheese makers blog and facebook http://www.surininkunamai.lt/ https://www.facebook.com/SurininkuNamai.lt in lithuanian language

Further reading http://www.business.qld.gov.au/business/running/technology-for-business/digital-strategy http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-facebook-tomarket-your-business http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-twitter-tomarket-your-business http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-youtube-tomarket-your-business http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-a-blog-tomarket-your-business http://www.business.qld.gov.au/business/running/marketing/online-marketing/using-mobile-appsto-build-your-business http://animalagalliance.org/images/upload/Social%20Media%20Manual.pdf

CASE STUDIES

CONTENTS

1. Aphrodite Delights (Cyprus). 2. Erikas Augustinavicius (Lithuania). 3. Ktima Christoudia (Cyprus). 4. Pas Tevukus (Lithuania). 5. Uncle Picho (Spain). 6. Pastoralia (Spain). 7. Ievas Siers (Latvia). 8. Very Berry (Latvia).

CASE STUDY: APHRODITE DELIGHTS

INTRODUCTION The aim of this document is to present the case study concerning Aphrodite Delights Ltd, a company producing local traditional sweets in Cyprus. The aim of describing such case studies is to show examples of good practices and successful stories of local producers/farmers/SMEs or entrepreneurs that have developed different services and products related to tourism, developing and diversifying their business. The document includes the interview with Mr G. Gabriel based on the following questions: 1.

What is the name of the company and what does it do?

Who is George Gabriel?

How did the business idea arise?

What are the key success factors of this business?

Did the company have any previous knowledge about the market?

How is this business linked with the tourism sector?

What are the main challenges for the next years?

8. What suggestions would the company make to other farmers/ producers/ tourism companies who want to follow their example?

quieran seguir tu ejemplo?

CONTENTS

What is the name of the company and what does it do?

Aphrodite Delights is a family run company that produces traditional Loukoumi and other sweets in Geroskipou village, in Cyprus. It is a small company that employs about 15 employees in summer and 6-7 in winter season. Loukoumi is a sweet based on sugar, water, starch and may contain nuts and chocolate. According to George Gebriel, the owner of Aphrodite Delights, Loukoumi is a Mediterranean product and similar recipes are used in Cyprus, Greece, Turkey and Lebanon. Aphrodite Delights has been using the same Loukoumi recipe since over hundred years and uses only natural ingredients. It is now produced in 18 different flavours. Local raw materials are used wherever possible. Aphrodite Delights offers a range of other traditional sweets as well: soutzoukos that is made of grape must, rose water, mastic and nuts; chewing gum that is a natural product harvested from the trunk of Pistacia atlantica tree; Koufeta Amygdalou Geroskipou (sugared almonds), Glyko Amygdalou (almond preserve) that is the Cypriot version of Marzipan, and pastellaki (nut brittle). Company's products are sold at the factory shop, in many shops all over Cyprus including Cyprus airports, at hotels and souvenir shops; part of production is exported. Aphrodite Delights makes about 400 tons of Loukoumi each year, or about half the island's annual production.

Who is George Gabriel?

George Gabriel is the owner and Managing Director of Aphrodite Delights. He has been managing the company since 1994 and grew the business by moving to a new purpose built factory where production continues following the food safety standard 22000.

Under the management of Mr Gabriel, the company has received many awards over the recent years such as Best Cypriot product, best small-medium Cypriot enterprise, and also participated in many research and development programs in collaboration with universities and other organisations.

The story of Aphrodite Delights began in 1895, when Sophocles Athanasiou returned to Cyprus after many years of living in Switzerland. During his journey back to Cyprus, he passed from many Greek islands and the coast of Asia Minor where confectionary manufacturers taught him the art of making the Loukoumi and other sweets. Combining this knowledge with his experience acquired in Switzerland, he decided to start a confectionary business and opened a small workshop behind his paternal house in the square of Geroskipou village.

How did the business idea arise?

Soon the products became known both to local people and the English colonial conquerors that ruled the island at that time. With time, these sweet delights became synonymous with Geroskopou. The business was passed from generation to generation and expanded during the years. The grandchildren of the Sophocles Athanasiou created additional small production units, while the great grandson (the current owner G.Gabriel) built a bigger factory, still in the same village of Geroskipou.

What are the key success factors of this business?

First of all, the company belongs to a family that loves their business and is very much attached to it through family history and memories. The name of Aphrodite Delights that is well known and stands for quality is one of the main success factors. The factory operates under strict health and safety standards. Aphrodite Delights is very proud of the two only Cypriot products - Loukoumi Geroskipou and Koufeta Amygdalou Geroskipou, to be awarded with Protected Geographical Indication (PGI) by the European Union. As a result of recognition and product quality, Aphrodite Delights is often invited to represent Cyprus gastronomy in different exhibitions all over the world.

Did the company have any previous knowledge about the market?

The knowledge about the market has been developed through long years of business. The current owner and manager of the family grew up participating in the work of the company.

How is this business linked with the tourism sector?

A big share of products is sold to tourists through factory shop (where tourist groups come by bus), airports, souvenir and other shops, and hotels. The factory shop offers free tasting; staff speaks several languages; visitors can observe through glass walls how sweets are made in the factory or watch a movie that shows the history of the company as well as production process.

What are the main challenges for the next years?

According to Mr Gabriel, there is a lot of competition with other local producers and there are many tourist products that are not made or advertised in a correct way. Some guides take tourist groups wherever they get more commission, and tourists trust their guides. Tourists look for local products; the challenge is to provide correct information - what is the real authentic product. The company is thinking of starting some specialised shops together with a few other local producers that can offer high quality. Aphrodite Delights would also like to expand their exports, and that will be one of the challenges in the coming years.

What suggestions would the company make to other farmers/ producers/ tourism companies who want to follow their example?

High and consistent product quality is very important, as well as the way it is presented to the customers. The customers must be offered correct information so that they can choose the good authentic product. Stories related to business and its products can be used in marketing and help to create a well-known name.

CASE STUDY ERIKAS AUGUSTINAVICIUS INTRODUCTION The aim of this document is to present the case study concerning to Erikas Augustinavicius a beekeeper producing honey and its products, the aim of describing these cases of studies is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business. The document includes the following aspects: 1.

Name of the company and brief description.

Who is Erikas Augustinavicius?

How does the business idea arise?

What are the success keys of your business?

Did you have any previous knowledge about the market?

How is your business linked with the tourism sector?

What challenges for the next years do you have?

8. What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

CONTENTS Name of the company and brief description

Erikas Augustinavicius is a beekeeper holding 100 hives in the very central part of the country. Besides the bee keeping Erikas and his family also provides hospitality service at countryside homestead where people have a great opportunity to experience honey products and get to know more about bee keeping and different products of honey. Among the wide range of different honeys ( from different blooming plants of the season) offered by Erikas â&#x20AC;&#x201C; his the most special product is traditional Lithuanian mead. Some people call it â&#x20AC;&#x201C; traditional wine of Nordic countries.

Who is Erikas Augustinavicius?

Erikas â&#x20AC;&#x201C; is the third generation beekeeper in the family. Beekeeping activities was started by his grandfather and continued by his mother and now

Erikas has taken it over. In beekeeping activities Erikas was involved since his childhood where he was big helping hand to his grandfather. Today the farm produces big choices of honey from different blooming plants. The beehives are being transported long distances around in order for bees to collect pollen from different plants. Depending on the season different taste and colour honey is being collected. Over the years Erikas has it own clientele who is requesting the particular tipe of the honey. Beside honey they also sell pollen, bee bread and mead. Mead production is the very special one as for long time it was only produces for onw needs only due to the legislation of winemaking in Lithuania. In 2014 Erikas was the 3rd small scale wine maker in Lithuania licensed to produce homemade wine. Due to the very strict legislation homemade wine making is almost non existing product in Lithuanian. After few years of legal preparation and certification Erikas received the license to produce and sell homemade wine.

What makes Erikas and his â&#x20AC;&#x153;Susves meadâ&#x20AC;? so exclusive as he is the only wine make who specialises only exclusively on mead and does it according over 100 years old recipy. His mead is being produces by fermenting honey drink without any added sugar â&#x20AC;&#x201C; only his owm produced honey. In 2015 is genuine recipe certification process will be finished and he is expecting to receive National heritage certificate

How does the business idea arise? Mead making tradition in the Lithuania has ancient roots. Legends say that this was the first naturally fermented drink discovered very accidently. When the wild bee honey stored in the hollow of the old tree trunk was diluted by rain water it naturally starts to ferment. And after some time someone noticed that nice smell and taste drink comes out of it. In the mediaeval times it used to be the most popular drink among the dukes and noblemen in the area. In Erikas family mead was produced only for own needs. But after long time lobbying work done in file of small scale home wine making Erikas decided to put effort to receive the license to make wine. Up to the recent years the only mead produce the Lithuania was strong spirit distillery producing strong honey drink (not fermented as alcohol was added)

What are the success keys of your business?

The main success key of business is the very traditional local product with strong attention to the traditional recipe. Also as it is the family business. Everyone knows each part of process and has its responsibility.

Did you have any previous knowledge about the market?

Erikas Augustinavicius had knowledge about the market and quite accurate knowledge. So far, in Lithuania was only one producer of mead and a huge demand - it is a traditional ancient Lithuanian drink. Promotion tools which Erikas use in his business are: participation in exhibitions and fairs with all their production; organising of mead tasting; information tours organisation in the farm for journalists.

How is your business linked with the tourism sector?

Business is related to rural tourism directly - beekeeping farm is not far from Erikas homestead "Šušvė”. During the excursions in the apiary, tourists can see bees and honey products, in the homestead. Bee keeping and wine making becomes important part in the hospitality business and creates good synergy

What challenges for the next years do you have?

Challenges for the coming year – after getting a license and a certificate to become a well-known

and best-selling producer of the products.

What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

For other farmers/producers/tourism companies Erikas Augustinavicius recommends to seek for their niche, their face, their product. Specialisation on what you can do best is very important.

CASE STUDY Ktima Christoudia

INTRODUCTION The aim of this document is to present the case study concerning Ktima Christoudia winery in Cyprus. The aim of describing such case studies is to show examples of good practices and successful stories of local producers/farmers/SMEs or entrepreneurs that have developed different services and products related to tourism, developing and diversifying their business. The document includes the interview with Mr and Mrs Christoudia based on the following questions: 1.

What is the name of the company and what does it do?

Who are Yiannis and Alexia Christoudia?

How did the business idea arise?

What are the key success factors of this business?

Did the company have any previous knowledge about the market?

How is this business linked with the tourism sector?

What are the main challenges for the next years?

8. What suggestions would the company make to other farmers/ producers/ tourism companies who want to follow their example?

quieran seguir tu ejemplo?

CONTENTS

Ktima Christoudia is a family-owned winery located close to Kato Drys village in Cyprus. The winery cultivates their own grapes and creates only limited quantities of high quality white, red and rose wines.

What is the name of the company and what does it do?

Ktima Christoudia also produces traditional Cypriot sweet - soutzoukos - which is made of grape juice, flour and nuts, with no added sugar. Some grapes are dried and sold as raisins. The winery is housed in a new building with modern machinery and facilities. In addition to winemaking premises and wine cellar, there is a shop selling own produce as well as other local products. Everybody visiting the winery is offered free wine tasting and may request a tour of the winery, which is provided by the owners that are happy and proud to show around their business. About half of production is sold in the winery, to visiting tourists and locals. The rest is distributed through shops and restaurants in Cyprus.

Who are Yiannis and Alexia Christoudia?

Yiannis and Alexia Christoudias are the owners of Ktima Christoudia. They have always liked wine and enjoy making it. They have travelled all over Europe to learn the secrets of trade but they prefer working with local grape varieties. Wine has been part of Cyprus history since 4000 years and there is a number of local vines that are or could be used to make unique Cyprus wines. They are of a great interest to Yiannis and Alexia that keep experimenting, developing their vineyards and creating new types of local wine.

How did the business idea arise? Yannis and Alexia started producing wine in 1992, first as a hobby providing wine for family and friends. It took 3 years to make their first wine, taking some lessons but mostly learning from own experience. They sold small quantities of wine but didn't consider it a business. Encouraged by success of their hobby, Yannis and Alexia started a winery (called Krelan winery then) in 1999 and moved to the current location in 2011. They got some support from EU funds for the new winery equipment, and initially thought of starting a small hotel as well but then decided to focus on the main business.

What are the key success factors of this business?

Christoudias winery is different as they cultivate only indigenous local grape varieties (Xynisteri, Marathevtiko and others). Those grapes have been grown in Cyprus since thousands of years, and are well adapted to grow in Cyprus and produce unique wines. Furthermore, they have their own stories and tales that can be told to customers. For example, Maratheftiko variety produces long branches but small grapes and they say the name of these "lier" grapes comes from the saying "Maratheftes kleftes" (referring to inhabitants of certain region known as liers). Focusing on local varieties is an important competitive advantage. However, the main success factor of Ktima Christoudia is the people that work here. They love what they do and didn't start this business to get rich. They are hospitable, like to show their winery and offer the wine they make. The quality of product and business location (it's close to well-known villages visited by tourists and locals) contribute to success as well.

Did the company have any previous knowledge about the market?

Yiannis and Alexia visited different wineries, attended seminars but mostly learned from own experience. They didn't do any special market research, however they developed the knowledge about the market over the years, trying to create and sell products that are good and appreciated by customers.

How is this business linked with the tourism sector?

When the winery moved to its current location, it was planned from the beginning to work with tourism sector. The building is appropriate to receive tourist groups, they can be offered a tour of the winery, wine tasting, or even a meal with wine. Information boards were created showing what happens in vineyards and winery in different seasons. They keep improving the guided tour, adding different attractions and entertainment (pressing grapes, getting inside a wine tank, tasting wine directly from a barrel, etc.). About half of wines produced at Ktima Christoudia are sold in the shop above the winery, and about 80% (in summer - almost 100%) of customers are foreign tourists. Local tourists come alone; there is no organisation or travel agency that would bring groups of local tourists.

What are the main challenges for the next years?

The challenges include maintaining and improving product quality and introducing new and forgotten local grape varieties. There are many local vines that are not commercially exploited and can only be found in vineyards one by one, among the other cultivated varieties. Some of these rare and forgotten varieties can only be used for wine (not as a fruit for food) and thus were not very attractive for farmers, however they might produce some interesting wines. Ktima Christoudia would like to work with different varieties and introduce new wines. There is also a challenge to be able to deal with the current economic crisis and decreasing numbers of tourists as well as affected purchasing power. The winery is doing some lab tests on soutzoukos (the local grape sweet) in order to establish for how long this traditional local product can be stored. They are also researching another grape product - palouze, aiming to develop a way to package it and increase its shelf life, as there is currently no such packed product on the market.

What suggestions would the company make to other farmers/ producers/ tourism companies who want to follow their example?

The most important advice is to be honest with the clients. The product has to be good, authentic and sold at a correct price. There are boundaries in how much you should charge. Just try to be correct.

CASE STUDY Pas tevukus

INTRODUCTION The aim of this document is to present the case study concerning to homestead Pas tevukus, the aim of describing these cases of studies is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business. The document includes the following aspects: 1.

Name of the company and brief description.

What is Pas tevukus?

How does the business idea arise?

What are the success keys of your business?

Did you have any previous knowledge about the market?

How is your business linked with the tourism sector?

What challenges for the next years do you have?

8. What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

CONTENTS Name of the company and brief description.

Homestead Pas tevukus. Spacious ethnographic countryside style houses on the shore of the Ber탑oras lake. Situated in Zemaitija national park west part of Lithuanian - an ideal place to relax and enjoy the beautiful surroundings of the Ber탑oras lake (Lithuania). It captures the spirit and beauty of the area. Zemaitija national park well known area for the holiday makers where everyone will have a chance to experience fantastic untouched nature, crystal clear water or surrounding lakes, great cycling tracks, walking trails. Fantastic small villages, wood carwing crafts and traditional local food.

Who is Marijona Striaukiene?

Homesteads name Pas tevukus invites everyone to fell like at home, in the village, at ones parents.

Marijona Striaukiene is engaged in culinary heritage for more than 35 years. She drew her experience from her mother-in law and other old masters. The teacher J. Uginciene (which has published several books about Samogitian food) was engaged in various social activities, which was associated with the presentation of culinary heritage. She worked in Plunge agricultural school where a lot of times with the students became a winner in various competitions (craft presentations). Many years of working with the women farmers in Plunge district; she is the chairwoman and devotes all her time to traditions, culinary heritage promotion.

How does the business idea arise?

Marijona took part in the presentation of Lithuanian culinary heritage in foreign countries: France, Germany, Italy, Sweden, Latvia, and Poland. Also she has developed an educational program â&#x20AC;&#x17E;Samogitian ethnographical traditions and their use in the educational process " for Plunge Adult Education Centre. Presented activities have got certificates for the culinary and cultural heritage. Marijona raised up in Zemaitija where hospitality is very important part of the culture. No one had chance to leave a house without being offered something to eat. Developing hospitality business at the accommodation a need for traditional food developed naturally. Marijona being involved in preservation of culinary heritage for long time was offering local traditional cuisine for coming guests. Over the period traditional local food became more important attraction and people are sometimes coming over just to experience and get to know the traditional food and itâ&#x20AC;&#x2122;s history.

What are the success keys of your business?

The key to success is not only a good place to homestead dislocation (Samogitia National Park, the lake), but dedication to work with all your heart, good experience. This is - a way of life. Marijona also says that working in hospitality business you have to love what you do and always be welcoming everyone with open heart. If you enjoy and love your activity this joy and love can be passed to your clients who will feel it.

Did you have any previous knowledge about the market?

Marijona Striaukiene had knowledge about the market. Was actively participating in different local and international travel fairs. Have hosted a lot of press trips. But the most important marketing channel is word of mouth. Countryside tourism, fostering of traditions, popularization of the culinary heritage are closely related, inseparable.

How is your business linked with the tourism sector?

Promotion tools which Marijona uses in her business are: participation in exhibitions and fairs with all their production; organising of mead tasting; information tours organisation in the farm for journalists, information, publishing in homestead web page www.pastevukus.lt in three languages; advertising in web page www.atostogoskaime.lt .

What challenges for the next years do you have?

We plan to build separate rooms (dining room), where guests have the opportunity to make or and to try Samogitian dishes. Constructed weaving and handicraft workshop.

What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

For other farmers/producers/tourism companies Marijona Striaukiene recommends - considering your profile and opportunities bravely begin to take the first step.

CASE STUDY UNCLE PICHO

INTRODUCTION The aim of this document is to present the case study concerning to Uncle PichoArtisans Products of Las Hurdes-. In a general context, the aim of describing these study cases is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business.

The document includes the following aspects: 1. Name of the company and brief description. 2. Who is Uncle Picho? 3. How does the business idea arise? 4. What are the success keys of your business? 5. How is your business linked with the tourism sector? 6. Did you have any previous knowledge about the market? 7. What challenges for the next years do you have? 8. What suggestions would you make to other entrepreneurs who want to follow your example?

CONTENTS Uncle Picho is a company located in “Las Hurdes”, an area situated at the region of Extremadura, famous and well-known at national level because of its wealthy natural resources in terms of beekeeping.

Name of the company and brief description.

Nowadays Anastasio produces and commercialises a great range of artisan honey products: liquors, cosmetics and beauty products, wax and propolis, as well as chocolate and honey caramels and, last but not least, his flagship product: “El Pichín Real”, which in English comes to be “the Royal Pichín”. All of them have the certificate “Alimentos de Extremadura” (“Food of Extremadura”), a remarkable designation achieved thanks to their high-quality. Royal Pichín is made of a number of natural ingredients: royal jelly and honey among others. Rum is the only non-natural ingredient, which is used to preserve the qualities of the product for a long time. Like most of artisan familiar products, secret ingredients and processes are used and developed in the production of this valuable product.

Who is Uncle Picho? Uncle Picho was the nickname of Anastasio´s father, a well-known man among the citizens of “Las Hurdes”. Anastasio decides to create a trademark for his products using this popular nickname, in order to honour his father´s memory. Finally, the son also adopted this nickname, that´s the reason why only a few people call Anastasio by using his real name.

How does the business idea arise? With the support of his wife, Anastasio Marcos began to run his business in 1.983. At the beginning, he produced honey, royal jelly and several products coming from bees, but his activities have been increasing and improving in these years. Regarding the Royal Pichín, Uncle Picho created it about twelve years ago in order to maintain and value a familiar tradition and to promote the beekeeping sector not only in the region of Extremadura, but in the whole country (Spain).

What are the success keys of your business?

Anastasio remarks that he is very grateful to the customer and their loyalty and trust, that fact encourages him to enhance and improve the business and the quality of his products. That is the reason why he makes a big effort in order to get the people inside and outside the country know his products and the beekeeping world. The high-quality of The Royal Pichín and Uncle Picho´s products are also a lead factor to the success of the business, confirmed by the numerous firsts awards obtained so far: First award for unique product, first European award for the quality of honey, as well as first award for tourism promotion, traditional culture or for the empowerment of gastronomy are only a few examples. On the other side, Anastasio has known how to use his facilities in a very clever way. The Honey Home, it is like this how their facilities have been named by him, consists of three different spaces: • An attractive commercial establishment for the direct selling of his products, as well as other typical regional products, becoming his offer stronger and enhancing the sales. Although it is a traditional, strongly linked with artisan elaboration business, uncle Picho counts on an important presence in the Internet: he has his own website where the customer can purchase the products online, as well as profile in several social media. • There is also an area reserved for the bar, thus when the costumer goes to the store, he can spend a relaxing time tasting a royal jelly liquor or a shot of Royal Pichín in a cozy friendly space where the world of beekeeping and its traditions are shown through TV screens and genuine objects. • The third space is a conference room, where Anastasio gives talks to the costumers and visitors, speaking about curiosities related to his professional career, beginnings and experiences and, on the other hand, related to the production process and the beneficial qualities of his products.

What are the success keys of your business?

Uncle Picho is not only connected to tourism sector, we can say that it is part of this industry.

this way, the Honey Home could be considered a jewel of the ethnographic heritage of the region: during their visit, the tourists learn lots of things about beekeeping, its traditions and habits, which also define the identity of “Las Hurdes”, an area where bees and honey are key factors.

How is your business linked with the tourism sector?

Uncle Picho is not only connected to tourism sector, we can say that it is part of this industry.

After creating his company, Anastasio already has the solid intention of using his business as a way to promote both “Las Hurdes” and the region of Extremadura from the touristic point of view. In this way, the Honey Home could be considered a jewel of the ethnographic heritage of the region: during their visit, the tourists learn lots of things about beekeeping, its traditions and habits, which also define the identity of “Las Hurdes”, an area where bees and honey are key factors.

Did you have any previous knowledge about the market?

Because of his age, Anastasio did not have the opportunity of attend the university; the only training we received was during the time he spent in the school when he was a child. However, the lack of theoretical knowledge was not a barrier when this entrepreneur started his business. Throughout these years, Santiago has been learning from the experience.

What challenges for the next years do you have?

The main challenge which he has is to keep innovating and launching new products to the market. Certainly, this way of work defines the background maintained by Anastasio so far: in the last three years, Uncle Picho has achieved to create innovative products like “honey chocolate”, Uncle Picho´s pastries or Vodka Caramel among others, all of them launched in the trade fairs he attends. Moreover, he intends to keep working hard, not only in order to perfect his business, but in order to promote the excellent resources for tourism and economic development in both “Las Hurdes” and the region of Extremadura.

What suggestions would you make to other companies or

It is important to entrepreneurs who want to follow you? maintain the motivation and the desire to be better and excellent. That is the only way to keep your business alive and strengthened. And last but not least, enjoy and love the job you do.

CASE STUDY PASTORALIA AND PAJUELO BROTHERS

INTRODUCTION The aim of this document is to present the case study concerning to Pastoralia interpretative centre of “Torta del Casar” and “Pajuelo Brothers”, the aim of describing these cases of studies is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business.

The interview includes the following aspects: 1.

Name of the company and brief description.

Who is Santiago Pajuelo?

How does the business idea arise?

What are the success keys of your business?

Did you have any previous knowledge about the market?

How is your business linked with the tourism sector?

What challenges for the next years do you have?

8. What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

CONTENTS Name of the company and brief description.

“Hermanos Pajuelo SAT”, which in English comes to be “Pajuelo´s Brother´s ATS- Agrarian Transformation Society”, is a family-owned company located in Cáceres and dedicated to produce the most famous cheese in the region of Extremadura, called “Torta del Casar- Protected Desgination of Origin”, an especial designation for high-quality food products located in an specific geographical area. Torta del Casar is a creamy-soft cheese, completely natural and made of raw ovine sheep milk.

Who is Santiago Pajuelo? Santiago Pajuelo is the CEO of Pajuelo´s Brothers, he started his business in 1990, with a little cattle comprising only 20 sheeps in a little farm. Today, his cattle have more than 3,000 sheeps and, consequently, a huge livestock extension. The production process is completed in the cheese factory, both of places are under a strict sanitary control which guarantees the quality of the product.

How does the business idea arise?

After 20 years working in the cheese factory, Santiago knows that “Torta del Casar” is a product with an interesting history and culture, both of them unknown by most of the people. That is the reason why Santiago decided to create the interpretative centre: Pastoralia, in order to show the origin and evolution of “Torta del Casar” This interpretative centre consists on a modern, graphical museum, where the information is available in several languages: Spanish, English, Portuguese, French and German. In this museum, the visitors can enjoy a tour where the lights, sounds, videos and other interactive materials play an interesting mixture, carrying the visitors to a time travel in order to show them the life style of the traditional sheepers, as well as the evolution from the most ancient to the most current ways of producing the cheese.

After the museum, visitors can see the cheese factory, guided by a professional who works in Pastoralia and knows very well every stage of the production of this creamy cheese. Finally, the tour ends in the commercial establishment, where the visitors can taste the different kinds of cheese produced by “Pajuelo Brothers”.

What are the success keys of your business?

• Pastoralia is the first interpretative centre about a local food product in the region of Extremadura, being a pioneering and innovative initiative and attracting groups of tourists from many places. • In the commercial establishment the visitor can find a huge variety of regional high-quality food products apart from the cheeses produced by “Pajuelo Brothers”. Here, Santiago also sales merchandising related to cheese and sheep world, these aspects make Santiago´s offer be different compared to competitor´s offer, enhancing the sales and diversifying the resources of income. • Effort in constant improvement of the product and internationalization, for this reason, Santiago attends lot of regional, national and international fairs, where he can show and sell his product, as well as develop relations with partners and know new ideas and trends related to production, selling, etc. Thanks to this kind of actions, Santiago has won important awards and recognitions.

Did you have any previous knowledge about the market?

Santiago studied Business Administration at the university and had previous knowledge about the sector, but he did not develop a detailed research related to market or customer´s necessities before creating his business. On the one hand, though observation, Santiago realized that there was a business opportunity which could make the difference and let him obtain a competitive advantage: enhancing the sells using the customer´s emotions, developing a strong relation between “Torta del Casar” and the cheese universe and culture around this traditional product. On the other hand, Santiago searched a way of differentiation by prices based on high-quality unique products.

How is your business linked with the tourism sector?

Pastoralia has been specially designed in order to make the visitor´s experience enjoyable and

unforgettable. As the CEO, Santiago works in strong cooperation with the rest of stakeholders in the tourism sector: tour guides, tourism associations and tourism activities companies are only a few examples. Both Pastoralia and Pajuelo´s Brothers have their own website, available in English and Spanish. On Pastoralia´s website, the visitor can find interesting things about the interpretative centre and book his tour online. Other way to connect with the tourist is the development of a Facebook profile of Pastoralia, because Santiago understands that social networks are the showcase and the most effective way of dissemination and marketing nowadays.

What challenges for the next years do you have?

The main goal of Santiago is continue to work hard in order to consolidate Pastoralia and Pajuelo Brothers like a well-known cheese production company in the national frame, as well as get “Torta del Casar” be the most famous cheese in the world. Other challenge is to continue being different of the rest of competitors and to achieve a strong market positioning

What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

First of all, it is necessary to have a deep knowledge about the characteristics and potential of their product, as wells as having confidence on it.

Working hard not only for increasing the production, but in order to accomplish a production process with more efficiency and quality. And last but not least, do not stop innovating and thinking different.

CASE STUDY Ievas Siers INTRODUCTION The aim of this document is to present the case study concerning Ievas Siers (Ieva’s Cheese) produced by the farm “Vecsiljani”, the aim of describing these cases of studies is to show examples of good practices and successful stories starring by local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business.

The document includes the following aspects: 1.

Name of the farm and brief description.

What is Ievas siers (Ieva’s Cheese)?

How does the business idea of making cheese arise?

What are the success keys of your business?

Did you have any previous knowledge about the market?

How is your business linked with the tourism sector?

What challenges for the next years do you have?

8. What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

CONTENTS Name of the farm and brief description

The farm’s main business is dairy farming and cereal production (wheat, barley, oats, rye, corn and grass breeding). „Vecsiljani” manages 900 hectares of land; it grows wheat, barley, oats, rye, corn and turf. The farm has 320 cows for milking; it employs 17 people, the average age of whom is 30. Since 2010 farm "Vecsiljani" started production of hard cheese called "Ieva's cheese". The „Vecsiljani i”farm’s cheese is named after the chief cheese maker Ieva Midega. To delight the cheese connoisseurs we produce cheese with paprika, tomato, garlic, nettle and cheese clover flavours. The farm obtains the flavours from mixtures of natural dried herbs, which are added to the cheese in small amounts. Depending on the length of maturation Ieva’s cheese is divided into three groups: 2-4 months matured; 4-6 months matured and 6 and more months matured. The farm is open for tourists a cheese tasting, visits of farm and cheese factory)

What is Ievas siers (Ieva’s Cheese)? In March 2010 the farm „ Vecsiljani” launched the production of a semi-hard Gouda-type cheese named „Ievas siers” („Ieva’s Cheese”). It is made from unpasteurised milk, which gives the cheese its unique flavour. The taste, flavour and quality of the cheese depend on the accurate work of each specialist at the farm. Cheese manufacturing starts right after the morning milking; when the warm milk is added, the cheese ferments causing it to curdle. For this purpose, a special cheese bowl with cheese knives is used. Next the curdled cheese is put into special cheese moulds, which give the cheese its special taste and a shape distinctive from other cheeses produced in Latvia. The moulds are put under the press and the cheese rolls are soaked in salty water for 24 hours. After that the cheese is drained and put in a storage house on wooden shelves to mature. To provide a high standart maturation process it is important to maintain a constant temperature. The cheese rolls in the storage house need to be turned every day; it is a pure manual labour. The first cheese makes its way to the customers’ table just over two months after its production. The duration of maturing greatly affects the taste of cheese- the longer the better.

How does the business idea arise?

The farm was founded in 1991, when after Latvia getting Independence started privatization process and Juris further in law has got back previous generation land – 70ha. The business started with 1cow that time and slowly grew. In 2006 Juris after graduating Agriculture University took over the farm and started an active farm development process.

What are the success keys of your business?

• Ieva’s cheese made from fresh cow’s milk produced at the farm;

•

Support of EU funding and knowledge about the supporting programmes;

•

Modernization and using economically efficient programmes;

•

Innovative idea to make added value to the milk;

• Strong promotion

branding

and

• Hard work and usage of the local resources • Active participation in the farmers organization/research projects/sponsorship and social responsibility.

Did you have any previous knowledge about the market?

The farm owner – Juris Sprukulis has academic knowledge in Agriculture as well has experience from selling different staff for farmers (http://87.246.167.234/pakavs/index.php ), agriculture production, home. For learning the craft of cheese-making, chief cheese maker Ieva Midega went to study in Holland, and later Dutch master went to the “Vecsiljani" in order to introduce how to organize the work of the new plant. After more than two years the cheese making skills have become perfect.

How is your business linked with the tourism sector?

The farm welcomes and supports the organization of the educational/professional seminars in the farm.

The farm operates as visiting farm (http://www.celotajs.lv/lv/e/zs_vecsiljani ), which means open for tourists groups and professionals. For visitors is offered a cheese tasting and visits of farm and cheese factory.

What challenges for the next years do you have?

How much cheese are produced, depends on the season. I. Midega says that this year the cheese trade had to feel the effects of the introduction of the euro (2014) - in the first months customers spent less money. The best season of cheese trade is summer, especially in midsummer time when sales volumes rises by about half compared with sales of cheese in the winter. Taking into account the economic situation described, a challenge for the future is to break with the seasonality in the sales The main goal of farm “Vecsiljani” is to continue working hard in order to find export opportunities.

What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

The suggestions to other farmers/producers: • To use the EU financial support • Be economically efficient

•

Know your farm/company development strategy

•

To be innovative

•

Work hard • To know marketing

the market, the

product

• Evaluate the employees and pay good salaries • Love the country side.

CASE STUDY Very Berry INTRODUCTION The aim of this document is to present the case study concerning Very Berry Ltd, the aim of describing these cases of studies is to show examples of good practices and successful stories starring local producers/farmers/SMEs or entrepreneurs. Basically, these have developed different services and products related to tourism, attracting and diversifying their business.

The document includes the following aspects: 1.

Name of the company and brief description.

What is Very Berry?

How does the business idea of arise?

What are the success keys of your business?

Did you have any previous knowledge about the market?

How is your business linked with the tourism sector?

What challenges for the next years do you have?

8. What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example?

CONTENTS Very Berry Ltd was founded in 1998. Main activities involve cultivation of cranberries, raspberries and blueberries. At the moment company runs 20 ha of cranberries, 12 ha of bilberries, 5 ha of raspberries, 1 ha of rhubarb and 1 ha of strawberries.

Name of the farm and brief description.

The owners are Gundega Sauškina and Sergejs Sauškins, who continued the Gundega’s grandparents business traditions. Berries are grown on the company’s fields. With cold pressing technology, there is provided retaining the vitamins within the berries and gets a pure juice, later gently pasteurized, in order for it to keep longer and provide you with vitamins all year round. The juice has no added sugar, flavourings, colourings or preservatives – it contains only what nature has given to the berries. A glass of juice will replace a handful of berries and provide you with a taste of the sun in the dark, cold autumn and winter months. Diluted with water, it is perfect for making hot and cold drinks and cocktails, while in concentrated form it will come in handy for various desserts and sauces. Summer comes alive in a bottle of Very Berry juice. Besides berry plantation, company has developed natural juice production line, and modern refrigeration equipment allows providing fruit and berry freezing and storage services.

What is Very Berry?

Very Berry is Limited Liability Company as well as a brand name of natural berries’ products.

Very Berry products - 100% natural juices, beverages, syrups and fruit snacks - are produced in modern processing and storage unit. All products are natural and are made without preservatives, colours and flavours. Very Berry products are sold in the domestic market as well as exported to Russia, Great Britain, Germany, Poland, Estonia and Sweden.

How does the business idea arise?

Like all beautiful things Very Berry has its own special story. Very Berry was born at the very moment Gundega’s Sauskina’s (current owner of the company) father found out about American cultivated cranberries that were considered to be more valuable than local swamp cranberries. It was not easy to convince Gundega to join his idea, but

somehow he did it and in year 1996 she was on the hook. The beginning was difficult, but very interesting - she just knew she had to try. At that point, even her friends thought she was crazy! Now company grows several kinds of berries in over 100 hectares and produce more than 20 different types of healthy juices and juice drinks. Very Berry says NO to food additives and chemicals. Very Berry bird symbolizes nature, sincerity and the joy of life - these are also the values of the company.

What are the success keys of your business?

• Natural niche product

• All products are made from natural ingredients, without the addition of food preservatives, flavour enhancers or flavourings. They are healthy and vitamin-rich products. • Very Berry juices as opposed to the "juice pack" are squeezed mechanically (using cold press technology), not made from concentrate. The nutrient is essential for the conservation and refrigeration mode - Very Berry berries are particularly rapidly frozen and stored until the berries tapped nutritional optimum temperature. Also, juice, heat treatment (pasteurization) is a particularly gentle to nutrients, and + 2 ° to + 25 ° C temperature the juice without worries can be stored for one and a half years. •

Usage of EU funds.

Did you have any previous knowledge about the market?

The work was not easy - two years were devoted to the research work, trips to other countries to cranberry growers, many and varied literature acquisition and long conversations with scientists and agronomists here in Latvia. Agriculture is not an area to search for quick wealth. In order to start getting the profit from the cranberry field, you need about ten years: to organize the production cycle, to think and learn many new things. Determination alone is not enough, there is also the patience needed, as well as confidence and hard work.

How is your business linked with the tourism sector?

Those interested can apply for tours at "Kalna purvs" and see both - berry fields and factory. Of

course, tasting of the delicious and healthy Very Berry products are included. Swamp of berries: Kalna purvs, Gaujienas pagasts, Apes novads, LV4339 Factory: “Ogas”, Gaujienas pagasts, Apes novads, LV4339 Tālr: + 371 26453555 Fakss: + 371 67287939 E-pasts: ilze@veryberry.lv

What challenges for the next years do you have?

• Frosts and low amount of the produced berries; • Increase the visibility;

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Make the products more widely available.

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Increase of export markets

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New equipment

What suggestions would you make to other farmers/ producers/ tourism companies who want to follow your example? Very Berry keywords to successful business development are: •

Research

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Knowledge

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Technologies

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Patience

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Friendship

Dare to risk and dare to try when creating Your brand! But first: •

Understand what You want to be!

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Find Your values!

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Define Your client!