16
The major contributors to the increase business costs are
inventory costs – 68%
materials and supplies – 37%
marketing expenses – 37%
travel and expenses – 37%
The economic pressures have forced respondents to take a number of actions to offset the
expense increases, including:
Reduce prices – 44%
Reduce stock on hand – 41%
Reduce travel expenses – 36%
Reduce marketing budget – 35%
Change product offerings – 31%
Marketing the Business
Overall, 39% of reporting businesses invest less 5%, or less of their annual sales into
marketing and advertising. 15% however, invest over 10% of their annual sales into
marketing and advertising which is a sharp downturn from the 2012 responses. 4% report
marketing and advertising expenses exceed 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
2013
2012
-5%
39%
43%
10%+
15%
22%
15%+
4%
4%
The three most important tools that retailers consider the most effective in gaining new
customers are:
Radio
Direct Mail
Word of Mouth
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
FaceBook
e-Mail Marketing
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