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. Image credit: Unsplash/Hannah-Cole
    Articles
    Value-Added Agriculture: Enhancing Farm Opportunities
    By Sarah Cornelisse, Jeffrey Hyde, Ph.D., Lynn Kime
    Value-added agriculture offers important benefits for farmers interested in diversification of their farm operations. This article provides an overview of value-added agriculture and tips for getting started.
  2. Food truck. Source: Micheile Henderson, Unsplash
    Articles
    Working with Vendors at Your Agritourism Business
    By Sarah Cornelisse, Claudia Schmidt, Christi (Graver) Powell, Jackie Schweichler, Esq.
    Contracting with vendors to provide additional products or experiences is a way for agritourism operators to enhance the visitor experience; however, several issues should be fully considered prior to inviting a vendor to operate at their premises.
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