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Helping Artisans Reach Global Markets PowerPoint PPT Presentation


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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 .

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Helping Artisans Reach Global Markets

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Helping artisans reach global markets l.jpg

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


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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, [email protected] 052907


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Marketing My Business

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

    10 minutes


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Are You Flying Blind?


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Do You Have a Plan?

The product

The industry

The customer

The strategy

Marketing is EVERYTHING you do on behalf of the business


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Hobby Or Business?

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

    OR

  • are you an artisan that makes what will sell?

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


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Doing Your Homework?

Develop your marketing plan.

Do it before going online!


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Hobby crafts

Fine art

Tourist souvenirs

Museum art

Furniture

Interiors

Toys

Gifts

Folk art

Wearables

Know Your Industry

Activity: Search for information:

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


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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


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Define The Handcraft Consumer

  • Demographics

    • Identifying AND defining your market

      30-50Urban

      Affluent Educated

  • Psychographics – how people use/spend time

    • Targeting your customer

      • Form Quality

      • Function Travel


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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


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Who is Using the Internet?

GLOBAL

  • 445 Million people

  • 51% of most developed countries

    • Source: www.clickz.com

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


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

    Primary purchasers of craft

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


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    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!


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    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: PewInternet.org, 2005


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    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


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    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???


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    Why Consumers Don’t Buy On-line

    • Cost of connectivity

    • Access at work?

    • Disrupts home/work routines

    • Too complicated

    • Communication challenging

    • Ordering not dependable

    • Trust

    • Overall consumer-buying experience


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    Will Customers Be E-loyal?

    • Multiple retailers

    • Price

    • Good service

    • Emotional connection/loyalty

    • Relevance to customers

    • Keep customer as central focus of e-commerce


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    Build customer loyalty – good/bad?


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    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


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    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?


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    Craft Retailers with Web Sites

    Source: The Crafts Report, 2004


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    Looking at the Competition

    • New products, marketing ideas, news

    • Search engine specialties

      • Google- Lycos

      • Yahoo- AltaVista

      • Excite- Hotbot

      • Infoseek- Northern light

        www.searchenginewatch.com/


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    Find Your Competition

    • List competitors

    • List keywords to describe your products/services

    • Use metasearch engine to search keywords http://dogpile.com

    • Use other search engines: www.ceoexpress.com


    Activity26 l.jpg

    Activity

    List the key information about your competitors:

    • Advertising

    • Prices

    • Packaging

    • Hours of operation

    • Target market


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    Artists On-Line

    Source: The Crafts Report, 2004


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    Craft Producers (Artisans) Using E-commerce In Business

    Source: The Crafts Report, 2004


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    Reasons for Not Having Web Page

    • No knowledge

    • Lack of resources

    • Inability to connect store and web

    • Lack of training

    • No plan

    • Lack of flexibility


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    An Example Of A Log Analysis

    www.HerbalTurtle.com


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    Log Analysis from Herbal Turtle

    Discuss service with

    Web Host


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    Check This…

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


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    Are You Ready to Expand The Business?

    • Costs

    • Personnel

    • Inventory

    • Sales

    • Time/energy


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    Art Organizations as Promoters

    • www.artofohio.com

    • www.tamarackwv.com

    • www.arts.state.tx.us/txoriginal/index.asp

    • www.niche.com

    • Other: Depts. of Tourism, Art Commissions, Guilds, Cooperatives, Art Associations, Colleges/Universities


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    Doing Good Business Practices

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

    • www.artofohio.com

    • www.bbb.gov

    • www.thecraftsreport.com

    • www.ftc.gov


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    Market Venues

    • Selling retail vs. wholesale

    • Exclusivity

    • Trade Shows

    • Sales Reps


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    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

    Market and Price Potential: The Marketing Plan


    Gary weeks owner gary weeks and company furniture makers www garyweeks com l.jpg

    “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


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    Summary

    Customers And Competition: Know BOTH or lose!

    • It’s your job

    • Stay current

    • Listen to both customers and competitors

    • Be flexible


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