Business Management

Marketing and Sales

Access Penn State Extension’s educational resources on agricultural marketing and business management. Comprehensive information is available on value-added agriculture, organic produce, and social media and internet marketing.

Agricultural Marketing

Marketing is an important component for the success of agricultural businesses. With effective agricultural marketing, farmers can increase profits, boost sales, and reach out to more customers. The first step to successfully market food products is knowing your customers. Researching the target market gives you the ability to uncover many details about a consumer before you start communicating with them.

Making the most of that research – and using it to interpret what consumers need – is integral for a winning agricultural marketing and sales effort. The data gathered can be utilized to create beneficial strategies that reach the right market. Organic production and marketing, for instance, is a strategy that can add value to a new agribusiness and set it apart.

Many farmers choose to market their products directly to customers at farmers’ markets, fairs, and roadside stands. Compared to selling wholesale, direct marketing allows a higher degree of flexibility and control.

On this page, find information on the marketing of agriculture products. Discover how to design and implement marketing strategies for value-added products and agritourism businesses. For practical tips and best practices, join the Under the Ground workshop, as well as the Food for Profit online course.

Pricing and Selling Farm Products

When running a seasonal business, adjusting the sales strategy throughout the year can prove beneficial for bringing in income while meeting customers’ needs. Strategies to diversify the farm’s income and achieve year-round sales include season extension, crop diversification, and value-added products.

Choosing the right price for each product, however, can be challenging. Pricing is an important strategic process that helps determine what price to attach to a product. Many agribusiness professionals utilize a combination of various product pricing methods, such as target return pricing, psychological pricing, and subscription pricing.

Use Penn State Extension’s Price and Pricing worksheet to estimate the number of units that must be sold to achieve a profitable sales goal. In addition, consider the Strategies for Successful Selling workshop and learn to improve sales pricing and in-depth winter sales strategies.

Online Marketing and Sales for Farm Businesses

In the United States, 90% of the adult population is online. This is why creating a sound digital marketing strategy – and optimizing your online presence – is essential. In addition, with the increased growth of e-commerce, the need for farms and agribusinesses to implement e-commerce into their farm marketing plan has become crucial.

Sales of agricultural products through e-commerce can facilitate advantages such as market outlet diversification, expanded customer base, and customer convenience. More to that, it allows for collecting valuable data on product sales and customers that can be used to fine-tune and improve the customers’ online experience.

In this section, access Penn State’s video series on online sales management to learn more about designing your online store, as well as picking and packing orders efficiently. Information on understanding different e-commerce payment methods is also available.

Marketing on Farm Markets

Farm markets provide a profitable and convenient way for local farmers to sell their products. When selling at farm markets, differentiating your products can make a big difference. An attractive display provides several benefits, including attracting customers, announcing a sale, and promoting slow-moving items.

To create an effective product display, consider your goals, budget, and theme. Good visual merchandising is further based on elements such as balance, focal point, color, and lighting. Explore hands-on strategies for farmers’ markets and roadside stands with Penn State Extension’s Retail Farm Market School. This online course will teach participants how to use produce science best practices, handle products, and implement merchandising and customer service strategies. A Farmers Market Managers Conference is available, as well.

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  1. Power of Pricing!
    Articles
    Power of Pricing!
    By Brian F. Moyer
    Understanding our cost structure and desired margin helps us identify appropriate pricing methods and their relationship to profitability.
  2. Garlic Producer
    Videos
    Garlic Producer
    By Thomas Ford, Lynn Kime, Jayson K. Harper, Ph.D., Michael Orzolek, Ph.D., Steve Bogash
    Length 4:04
    Garlic Producer Video
  3. Direct Marketing
    Articles
    Direct Marketing
    By Sarah Cornelisse
    For those with the time and resources to spare, direct marketing can increase both revenue and local awareness of an agricultural enterprise.
  4. Listening to Customers through Interviews, Focus Groups and Surveys
    Articles
    Listening to Customers through Interviews, Focus Groups and Surveys
    By Kathryn Brasier, Ph.D.
    How to select a customer pool to participate in interviews, focus groups and surveys to help improve your business by listening to customer needs.
  5. Image: Pixabay
    Articles
    Agritourism Diversification: A Business Planning Questionnaire
    By Sarah Cornelisse, Claudia Schmidt, Lynn Kime, Christi (Graver) Powell
    Selecting or making changes to the products or experiences that your agritourism business offers demands that you thoughtfully plan out how the new venture fits into your current business operations. This article guides you through relevant issues.
  6. Source: Mark Muhlberger Unsplash
    News
    2022 Holiday Food Trends for Farm Markets
    Date Posted 11/3/2022
    Consumers are still exploring new and innovative flavors and products this winter holiday season, but with a more limited budget.
  7. Photo credit: Bigstock
    Articles
    Best Practices for Online Order Packaging, Shipping, and Pick-Up
    By Sarah Cornelisse, Claire Wessner
    The effectiveness of your online order packaging, shipping, or in-person order pick-up coordination impacts customer satisfaction retention. This article shares best practices for direct marketers of all product types.
  8. Source: Joey Nicotra, unsplash
    Articles
    Who Is Buying Wine Produced in the Mid-Atlantic Region?
    By Kathy Kelley, Ph.D., Claudia Schmidt
    This article reports results from a winery tasting room visitor survey on buyer profiles of wine made by wineries in the mid-Atlantic region.
  9. Image: David/AdobeStock
    Articles
    Considerations for Selecting a Point-of-Sale (POS) System
    By Sarah Cornelisse
    Modern point-of-sale systems perform functions beyond simple facilitation of cash transactions. System hardware and software offer the ability to accept multiple payment methods, manage customer data, and enhance efficiency.
  10. Source: Ratul Ghosh (unsplash)
    Articles
    Food Trends for 2022
    By Kathy Kelley, Ph.D., Claudia Schmidt
    This article provides an overview of food trends suggested by top industry associations and organizations and those that appear in several other reputable lists.
  11. Photo: Bigstock.com/TeroVesalainen
    Articles
    Overcoming Consumer Barriers to Online Purchasing
    By Sarah Cornelisse
    Consumer concerns about online shopping continue to exist, deterring more widespread use. To counter these concerns, there are several steps that businesses can take to enhance their online presence and encourage online purchasing.
  12. Under the Ground Helps Businesses Grow From Customer Feedback
    News
    Under the Ground Helps Businesses Grow From Customer Feedback
    Date Posted 12/1/2021
    Under the Ground provides businesses with valuable qualitative customer feedback, peer networking, and immersive educational experiences.
  13. Elaboración de un Plan de Negocio
    Articles
    Elaboración de un Plan de Negocio
    By Lynn Kime
    Una tarea importante al iniciar una nueva empresa es elaborar un plan de negocios que sea una "hoja de ruta" para guiar el futuro del negocio o la empresa.
  14. Responding to Customers Effectively Online
    Videos
    Responding to Customers Effectively Online
    By Sarah Cornelisse
    Length 5:37
    Responding to online customer communications is a critical component of your business’s online customer care. This video highlights key aspects to ensure high quality interactions.
  15. Producción de pimiento
    Articles
    Producción de pimiento
    By Lynn Kime, Jayson K. Harper, Ph.D., Michael Orzolek, Ph.D., R. Matthew Harsh
    Los pimientos se prestan bien para la producción agrícola a pequeña escala y a tiempo parcial.
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