IACA 2014 Industry Attitudinal Survey - page 17

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The major contributors to the increase business costs are
inventory costs – 68%
marketing expenses – 52%
materials and supplies – 42%
travel and expenses – 31%
The economic pressures have forced respondents to take a number of actions to offset the
expense increases, including:
Reduce travel expenses – 44%
Reduce prices – 42%
Reduce marketing budget – 39%
Reduce stock on hand – 37%
Change product offerings – 37%
Marketing the Business
Overall, 47% of reporting businesses invest less 5%, or less of their annual sales into
marketing and advertising. 19% however, invest over 10% of their annual sales into
marketing and advertising which is an uptick from the 2013 responses. 5% 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
2014
2013
-5%
47%
39%
10%+
19%
15%
15%+
5%
4%
The most important tools that retailers consider the most effective in gaining new
customers are:
Public Relations
Radio
Word of Mouth
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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