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The major contributors to the increase business costs are

inventory costs – 79%

materials and supplies – 45%%

marketing expenses – 41%%

The economic pressures have forced respondents to take a number of actions to offset the

expense increases, including:

Reduce travel expenses – 57%

Reduce marketing budget – 35%

Reduce stock on hand – 39%

Reduce prices – 39%

Change product offerings – 36%

Marketing the Business

Overall, 43% of reporting businesses invest less 5%, or less of their annual sales into

marketing and advertising. Nearly 22% however, invest over 10% of their annual sales

into marketing and advertising, with 4% reporting marketing and advertising expenses

exceeding over 15% of annual sales. The retail sector is the most aggressive sector in the

American Indian Art industry in terms of marketing investment.

Marketing as % of Sales

2012

2011

-5%

43%

50%

10%+

22%

29%

15%+

4%

11%

The three most important tools that retailers consider the most effective in gaining new

customers are:

Word of mouth

Radio

Public Relations

On-line marketing is an important part of marketing the American Indian Art business.

The three leading tools used in the business include:

Website

E-Mail Marketing

FaceBook

On-line tools typically are handled in-house, although many businesses will go outside

for help on some things.