Community Resources & Economic Development Helping Artisans Reach Global Markets Pamela J. Brown, Ph.D. Associate Professor & Extension Entrepreneurship

Community Resources & Economic Development

Helping Artisans Reach Global Markets

Pamela J. Brown, Ph.D.

Associate Professor &

Extension Entrepreneurship Specialist (Retired)

Texas Cooperative Extension

Texas A&M University System

Funded through a grant from the Southern Regional Development Center, Mississippi State University


Module 3*How To Market Your Craft Business

OnlineObjectives

– Develop a market plan– Conduct simple market research– Understand e-commerce trends– Identifying target craft consumer– Marketing online and offline – Application to craft business_________

*Presented by Ashley Lovell, Extension Specialist – Economic Development, Texas Cooperative Extension, [email protected] Draft 052907


Marketing My Business

List all the different kinds of marketing you do for your business

10 minutes


Are You Flying Blind?


Do You Have a Plan?

The product

The industry

The customer

The strategy

Marketing is EVERYTHING you do on behalf of the business


Hobby Or Business?

Are you a hobbyist – making craft that you hope will sell,

ORare you an artisan that makes what will

sell?

As an artisan, the answer should shape your marketing plan!


Doing Your Homework?

Develop your marketing plan. Do it before going online!


Know Your Industry

Hobby crafts Fine art Tourist souvenirs Museum art Furniture

Interiors Toys Gifts Folk art Wearables

Activity: Search for information:

Size, location, support, competition, trends, types of ecommerce


Read About an Artisan

Go to these sites:

http://craftsreport.com/october05/oe.html

Or

www.gourmasque.com

Or

www.garyweeks.com/global_village.htm


Define The Handcraft Consumer

• Demographics• Identifying AND defining your market

30-50 Urban Affluent Educated

• Psychographics – how people use/spend time• Targeting your customer

• Form Quality• Function Travel


More Resources for Artisans

Texas Commission on the Arts– www.arts.state.tx.us – www.arts.state.tx.us/craft/ciform.asp

• A registry for Texas artisans

American Crafts Council– www.craftcouncil.org

Craft Organization Directors Association– www.coda.org


Who is Using the Internet? U.S. 81% of teens 63% of adults

• 18-29 80%• 30-39 74%• 50-64 60%• 65+ 26%

60% women 66% men Ethnicity

• Whites -68%• Blacks -42%• Hispanics -60%

Source:www.pewinternet.com

GLOBAL 445 Million people 51% of most developed

countries

Source: www.clickz.com


Internet Usage by Age Group . . .Who Are YOUR Customers?

*Pew/Internet, Pew Internet and American Life Project www.pewinternet.org

Primary purchasers of craft


Caution - Don’t assume potential customers

value:Good design

Quality materialsHigh prices

Unique design Time for creativity/process

Demographics of online purchasers will change as online use and access increases!

Target ‘Everyone’ - NO

Segment customers to understand what they want


Source: PewInternet.org, 2005

Total U.S. online:>70 million

Broadband access will change who and how people use the Internet

The “New Normal” American Way of Life


How Are People Buying?

28% of online consumers do not buy online 59% search aggregate sites, not merchant sites Value the in-store, personalized experience Delivery costs and time Credit security Delay in purchase satisfaction No credit Seeing is believing Too complicated


Finding Customers

Like fishing, you have to think like a fish to catch a fish!– Think like your customers, not as an artisan

• What do customers want?• Where do they shop?• What do they shop for?• What do they search for online?• More???


Why Consumers Don’t Buy On-line

Cost of connectivityAccess at work?Disrupts home/work routinesToo complicatedCommunication challenging Ordering not dependableTrust Overall consumer-buying experience


Will Customers Be E-loyal?

Multiple retailersPrice Good serviceEmotional connection/loyaltyRelevance to customersKeep customer as central focus

of e-commerce


Build customer loyalty – good/bad?


Activity

Do a search to find your business’s target market characteristics.– Hint:

• Search for demographic info• Search for psychographics • Search by age, location, income, ethnicity, etc.http://americandemographics.com http://cyberatlas.com

Resources to learn about customers– Research publications– Trade Journals– Conferences– Periodicals


Search Results

Who are your potential customers?Where do they live, what will they

buy?What are their favorite activities?Are you offering what they want at

the right price?What can you do to “target” these

folks?


Craft Retailers with Web Sites

Source: The Crafts Report, 2004

2001Surveyed 91

Websites 64

2002Surveyed 68

Websites 53

2003Surveyed 149

Websites 102


Looking at the Competition

New products, marketing ideas, news

Search engine specialties– Google - Lycos– Yahoo - AltaVista – Excite - Hotbot– Infoseek - Northern light

www.searchenginewatch.com/


Find Your Competition

List competitorsList keywords to describe your

products/servicesUse metasearch engine to search

keywords http://dogpile.com Use other search engines:

www.ceoexpress.com


Activity

List the key information about your competitors:– Advertising – Prices – Packaging – Hours of operation– Target market


Artists On-Line


Media of Artists with Web Sites in2003

Full Time Part TimeClocks NeedleworkPaper PaperBook Art Book ArtGarden Art Garden ArtMetal J ewelryJ ewelry GlassFurniture BasketsWood WoodBasketsToysFiberLeather

Media of Artists Selling Online in 2003

Full Time Part TimeClocks NeedleworkGarden Art PaperToys CeramicsCeramics J ewelryMetal Book ArtJ ewelry GlassFurniture WoodWood Baskets



Craft Producers (Artisans) Using E-commerce In Business


Reasons for Not Having Web Page

No knowledgeLack of resourcesInability to connect store and webLack of trainingNo planLack of flexibility


An Example Of A Log Analysis

www.HerbalTurtle.com


Log Analysis from Herbal Turtle

Discuss service with Web Host


Check This…

www.clickz.com/stats/sectors/software/print.php/3578366


Are You Ready to Expand The Business?

CostsPersonnelInventorySalesTime/energy


Art Organizations as Promoters

www.artofohio.comwww.tamarackwv.comwww.arts.state.tx.us/txoriginal/index.aspwww.niche.com Other: Depts. of Tourism, Art

Commissions, Guilds, Cooperatives, Art Associations, Colleges/Universities


Doing Good Business Practices

www.newyork.bbb.org/goodbusinesspractices/?lid=1&page=sell

www.artofohio.comwww.bbb.govwww.thecraftsreport.comwww.ftc.gov


Market Venues

Selling retail vs. wholesaleExclusivityTrade ShowsSales Reps


Market and Price Potential: The Marketing Plan

•Define market area

– County, state, region, nation, globe

•Who is most likely to use or purchase your product or service?

• Know your break even point/compare

• Know the price points that WILL sell

• Include profit!• Evaluate/adjust


“The Internet has been the source of much of our business. Patrons find us in a search of rocking chairs. When someone calls from

Jerome, AZ or Ketchikan, AK and says, “I found you on the web and I’d like to order a chair,” it feels a little like hitting a line drive into the gap

in left field.”

Gary Weeks, OwnerGary Weeks and Company, Furniture makers

www.garyweeks.com


Summary

Customers And Competition: Know BOTH or lose!

It’s your jobStay currentListen to both customers and

competitorsBe flexible

Documents

Community Resources & Economic Development Helping Artisans Reach Global Markets Pamela J. Brown, Ph.D. Associate Professor & Extension Entrepreneurship