Helping Artisans Reach Global Markets Pamela J Brown

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 Community Resources & Economic Development

Module 3* How To Market Your Craft Business Online Objectives – 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, lovell@tarleton. edu Draft 052907 Community Resources & Economic Development

Marketing My Business Ø List all the different kinds of marketing you do for your business 10 minutes Community Resources & Economic Development

Are You Flying Blind? Community Resources & Economic Development

Do You Have a Plan? The product The industry The customer The strategy Marketing is EVERYTHING you do on behalf of the business Community Resources & Economic Development

Hobby Or Business? Ø Are you a hobbyist – making craft that you hope will sell, OR Ø are you an artisan that makes what will sell? As an artisan, the answer should shape your marketing plan! Community Resources & Economic Development

Doing Your Homework? ØDevelop your marketing plan. ØDo it before going online! Community Resources & Economic Development

Know Your Industry Ø Hobby crafts Ø Fine art Ø Tourist souvenirs Ø Museum art Ø Furniture Ø Interiors Ø Toys Ø Gifts Ø Folk art Ø Wearables Activity: Search for information: Size, location, support, competition, trends, types of ecommerce Community Resources & Economic Development

Read About an Artisan Go to these sites: http: //craftsreport. com/october 05/oe. html Or www. gourmasque. com Or www. garyweeks. com/global_village. htm Community Resources & Economic Development

Define The Handcraft Consumer • Demographics • Identifying AND defining your market 30 -50 Affluent Urban Educated • Psychographics – how people use/spend time • Targeting your customer • Form • Function Quality Travel Community Resources & Economic Development

More Resources for Artisans Ø Texas Commission on the Arts – www. arts. state. tx. us/craft/ciform. asp • A registry for Texas artisans Ø American Crafts Council – www. craftcouncil. org Ø Craft Organization Directors Association – www. coda. org Community Resources & Economic Development

Who is Using the Internet? GLOBAL Ø 445 Million people Ø 51% of most developed countries Source: www. clickz. com U. S. Ø 81% of teens Ø 63% of adults • • 18 -29 30 -39 50 -64 65+ 80% 74% 60% 26% Ø 60% women Ø 66% men Ø Ethnicity • Whites -68% • Blacks -42% • Hispanics -60% Source: www. pewinternet. com Community Resources & Economic Development

Internet Usage by Age Group. . . Who Are YOUR Customers? Primary purchasers of craft *Pew/Internet, Pew Internet and American Life Project www. pewinternet. org Community Resources & Economic Development

Target ‘Everyone’ - NO Segment customers to understand what they want Caution - Don’t assume potential customers value: Good design Quality materials High prices Unique design Time for creativity/process Demographics of online purchasers will change as online use and access increases! Community Resources & Economic Development

The “New Normal” American Way of Life Total U. S. online: >70 million Broadband access will change who and how people use the Internet Source: Pew. Internet. org, 2005 Community Resources & Economic Development

How Are People Buying? Ø 28% of online consumers do not buy online Ø 59% search aggregate sites, not merchant sites Ø Value the in-store, personalized experience Ø Delivery costs and time Ø Credit security Ø Delay in purchase satisfaction Ø No credit Ø Seeing is believing Ø Too complicated Community Resources & Economic Development

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? ? ? Community Resources & Economic Development

Why Consumers Don’t Buy On-line Ø Cost of connectivity Ø Access at work? Ø Disrupts home/work routines Ø Too complicated Ø Communication challenging Ø Ordering not dependable Ø Trust Ø Overall consumer-buying experience Community Resources & Economic Development

Will Customers Be E-loyal? Ø Multiple retailers Ø Price Ø Good service Ø Emotional connection/loyalty Ø Relevance to customers Ø Keep customer as central focus of e-commerce Community Resources & Economic Development

Build customer loyalty – good/bad? Community Resources & Economic Development

Activity Ø 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 Ø Resources to learn about customers – – Research publications Trade Journals Conferences Periodicals Community Resources & Economic Development

Search Results Ø Who are your potential customers? Ø Where do they live, what will they buy? Ø What are their favorite activities? Ø Are you offering what they want at the right price? Ø What can you do to “target” these folks? Community Resources & Economic Development

Craft Retailers with Web Sites 2001 Surveyed Websites 91 64 2002 Surveyed Websites 68 53 2003 Surveyed Websites 149 102 Source: The Crafts Report, 2004 Community Resources & Economic Development

Looking at the Competition Ø New products, marketing ideas, news Ø Search engine specialties – Google – Yahoo – Excite – Infoseek - Lycos - Alta. Vista - Hotbot - Northern light www. searchenginewatch. com/ Community Resources & Economic Development

Find Your Competition Ø List competitors Ø List keywords to describe your products/services Ø Use metasearch engine to search keywords http: //dogpile. com Ø Use other search engines: www. ceoexpress. com Community Resources & Economic Development

Activity List the key information about your competitors: – Advertising – Prices – Packaging – Hours of operation – Target market Community Resources & Economic Development

Artists On-Line Source: The Crafts Report, 2004 Community Resources & Economic Development

Craft Producers (Artisans) Using E-commerce In Business Source: The Crafts Report, 2004 Community Resources & Economic Development

Reasons for Not Having Web Page Ø No knowledge Ø Lack of resources Ø Inability to connect store and web Ø Lack of training Ø No plan Ø Lack of flexibility Community Resources & Economic Development

An Example Of A Log Analysis www. herbalturtle. com Community Resources & Economic Development

Log Analysis from Herbal Turtle Discuss service with Web Host Community Resources & Economic Development

Check This… Ø www. clickz. com/stats/sectors/software/prin t. php/3578366 Community Resources & Economic Development

Are You Ready to Expand The Business? Ø Costs Ø Personnel Ø Inventory Ø Sales Ø Time/energy Community Resources & Economic Development

Art Organizations as Promoters Ø www. artofohio. com Ø www. tamarackwv. com Ø www. arts. state. tx. us/txoriginal/index. asp Ø www. niche. com Ø Other: Depts. of Tourism, Art Commissions, Guilds, Cooperatives, Art Associations, Colleges/Universities Community Resources & Economic Development

Doing Good Business Practices Ø www. newyork. bbb. org/goodbusinesspracti ces/? lid=1&page=sell Ø www. artofohio. com Ø www. bbb. gov Ø www. thecraftsreport. com Ø www. ftc. gov Community Resources & Economic Development

Market Venues Ø Selling retail vs. wholesale Ø Exclusivity Ø Trade Shows Ø Sales Reps Community Resources & Economic Development

Market and Price Potential: The Marketing Plan • Define market area • Know your break even point/compare – County, state, region, • Know the price nation, globe points that WILL sell • Who is most likely • Include profit! to use or • Evaluate/adjust purchase your product or service? Community Resources & Economic Development

“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, Owner Gary Weeks and Company, Furniture makers www. garyweeks. com Community Resources & Economic Development

Summary Customers And Competition: Know BOTH or lose! Ø It’s your job Ø Stay current Ø Listen to both customers and competitors Ø Be flexible Community Resources & Economic Development