Taito Marketing project

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1 Taito Marketing project SUMMARY The Taito Marketing project is part of the Finnish Crafts Organization Taito s development project for the craft branch , which is based on the Ministry of Trade and Industry strategy on the development of craft and design entrepreneurship (Käsillä yrittäminen: käsityöalan yrittäjyyden kehittämisstrategia, Ministry of Trade and Industry publications 36/2006, in Finnish). This project focused on the development of marketing by companies. The actions have centred on conducting surveys, developing Taito business services, strengthening the marketing skills of craft and design entrepreneurs and Taito business advisors, producing new study materials, content production for and development of the Finnish Craftnet service and information dissemination. The target groups of the project included craft and design enterprises, craft and design association business advisors and various experts in the branch. The project has been financed by the Ministry of Employment and the Economy and the European Social Fund. Duration: Objectives The objectives of the Taito Marketing project were: to implement surveys on the marketing of craft and design enterprises in Finland and in Europe to start measures to collect and distribute research data, and create a method for providing research results on the web to develop and test business service packages related to marketing to enhance and deepen the expertise of business advisors through education and training to coach craft and design entrepreneurs in marketing skills through training and online education to produce study materials for an open website and learning environment to maintain a web service that introduces companies and their products and contains information on events and marketing. The service includes open study materials and a web learning environment. to relay information on new services, study materials and reports. Main results The main results, in accordance with the objectives of the project, can be divided into six groups: 1) marketing surveys, 2) operation model for disseminating research results, 3) new business services: Taito marketing I and Taito Start Online, 4) new study material on e-commerce and, for Taito Campus, a distance learning environment for craft and design enterprises on e-commerce, 5) a website for Taito business services and renewal of the classified ad service of the Finnish Craftnet web service, and 6) a web service containing Taito business services, reports, studies, study material on e-commerce and information on marketing by craft and design enterprises

2 Results, evaluation and development needs Surveys on the marketing of craft and design enterprises in Finland and in Europe Käsityö- ja muotoiluyritysten markkinointi Suomessa report published (in Finnish) (pdf) Käsityön ja muotoilun markkinointi Euroopassa / Craft and Design Marketing in Europe report published (in Finnish and English) (pdf) In June and July 2007, the project implemented online surveys on the marketing of products and services targeting craft and design entrepreneurs, consumers, buyers and management consults. The web survey attracted 292 responses from entrepreneurs, buyers and business advisors. Ten craft and design entrepreneurs participated in the group interviews. The consumer survey attracted 220 responses. An international survey studying craft and design marketing was sent to European organisations in the branch in September Invitations were sent to 20 countries and 14 different organisations in 13 countries responded. The international marketing survey showed that marketing methods and challenges are similar in different parts of Europe. Operating in electronic networks was considered particularly important in Finland. The survey clearly demonstrated the need for renewal of the product portfolio. In the international survey, 86% of respondents considered it important, and in the Finnish survey, 67% of buyers and 80% of business advisors agreed while only 33% of entrepreneurs thought so. The renewal of the service portfolio was considered important or very important by 70% of the respondents to the international survey, 66% of Finnish buyers and business advisors and 17% of entrepreneurs. Respondents to the international survey were asked to assess the product and customer know-how of craft and design entrepreneurs. The strongest know-how was deemed to be in quality of products and services (71%), while the weakest know-how was in development of products and services (7%) and customer orientation and identifying customer groups (8%). Nordic respondents felt that entrepreneurs are fairly strong on quality of products and services while most weaknesses can be found in customer orientation and identifying customer groups and, secondly, in product development. Respondents to the Finnish entrepreneur survey felt that they were fairly strong on these issues, but, according to business advisors, there is need for improvement, particularly in customer orientation, product development and the ability to deliver the goods as agreed. The Finnish survey showed that craft and design entrepreneurs need education and training in identifying new markets and customer groups and drawing up marketing plans. Improving communications was also felt to be a big challenge. Entrepreneurs felt that their weakest points were online communications and communication to the media. Improving the marketing capabilities of the entrepreneurs is deemed very important. More than half of the respondents to the international survey responded to nearly all questions related to the development of marketing stating that it is important or very important. Identifying new markets and customer groups was considered the most important issue. Next came developing the image of the enterprise and identifying its strengths, commercialisation and productisation of the products, for instance for tourism needs, communication skills, product packaging and product information, pricing and utilising the web in marketing. Development targets were associated with the development of the company and its products, and marketing and web skills. The willingness of European craft and design organisations to engage in co-operation was a positive surprise. Thirteen of the organisations that responded to the survey were interested in co-operation. In future, data and

3 information can be collected and exchanged via the Internet (surveys, newsletters, sharing best practices). Later, it will be necessary to monitor the changing significance of e-commerce in marketing and sales in the craft and design branch. Furthermore, it will be necessary to monitor changes in product and marketing development needs from the point of view of entrepreneurs, buyers and consumers. Web surveys will be used as a tool to collect data and information. The kind of co-operation European craft and design organisations are interested in will also be studied in more detail. The aim is to find a way to collect and share best practices in business development. Co-operation partners will be sent newsletters. Operation model for disseminating research Web service to contain a section on surveys and reports, with a link to theses and research publications Three articles (in Finnish): Yhteistyö ja tutkimustietoa käsityöläisille (Pirita Seitamaa- Hakkarainen), Esineet kodin peilinä (Sinikka Olkola), Muotoiltuja matkakokemuksia palvelumuotoilu työvälineenä (Satu Miettinen) Operation model for disseminating research results Making university and polytechnic research results available to people who work in the branch is a challenge. It has often been discussed, but well-working practices remain to be discovered. Universities do not have the resources to inform a wider public about the research carried out and it is usually left to the motivation and possibilities of individual researchers to do so. There is much research in craft science and the cultural sector, which could be of interest to craft and design entrepreneurs, but they do not have the means to access this information. The Taito Marketing project decided to address this issue and experiment with a model that would enable research and practical work to meet. The short project only made a start, but was nevertheless able to pioneer an activity that can become an interactive meeting place. The first measure in collecting and distributing research results was to set up a research and reports section in the Craftnet web service. The aim is to continue the work and collect links to theses and research publications in the field. Expanding co-operation with people who conduct research in the field will be important. Popularising research results for craft and design entrepreneurs requires more resources. If the Finnish Crafts Organization Taito s website is to include scientific articles, there should be resources for editing and preparing them for the website. Achieving this goal requires further action. The web service can relay news on Master s theses and doctoral dissertations in the field if the authors send information on them to the web service. To promote co-operation between craft science and craft teacher education on the one hand and entrepreneurs on the other, Taito will design a form with which entrepreneurs can suggest research topics to students. Information on entrepreneurs seeking co-operation with students will automatically be sent to the partner universities. The operational model requires further experimentation and development with co-operation partners. Development of marketing business services Two marketing business services have been created for craft and design entrepreneurs: Taito marketing I and Taito Start Online (including four sections: harnessing , designing an electronic corporate image, creating websites and setting up online shops). The project saw the

4 renewal of the Taito business services website (brochures on services and order and information forms). The Taito marketing I business services were enhanced by a workbook. A virtual workshop learning environment for craft and design entrepreneurs has been created at Taitocampus ( The project developed two Taito business services. Entrepreneurs were offered the Taito marketing I and Taito Start Online services at a campaign price between 11 February and 11 April Guidance was provided for entrepreneurs in the provinces of Uusimaa, Pirkanmaa, Keski-Suomi and Keski-Pohjanmaa. The most popular services were Taito marketing I and the Taito Start Online section on establishing an online shop. The development of Taito marketing I was continued on the basis of feedback from customer and evaluation surveys. Enterprises that had received Taito marketing I and Taito Start Online consulting were sent a web survey. Eight entrepreneurs responded to the survey. The average score for customer feedback was 5.65 (6 excellent 1 poor). The customer survey evaluated the following issues: how well the Taito business service corresponded to my expectations, the content of Taito business services, the expertise of Taito business advisors, interaction during the consultation, and the organisation and information dissemination of the service. One of the best features of the Taito marketing I business services was Collecting and reviewing thoughts and plans with an expert and stopping to think about what I am doing and what actions would be worthwhile. Business advisors helped to gain new perspectives on products and customer relationship management. Customers wished a follow-up on whether development targets have been achieved and marketing measures been implemented. The duration of the consultation was deemed appropriate. Taito business advisors who had provided Taito marketing I and Taito Start Online consulting were sent an evaluation survey. They rated their success as experts in the Taito marketing I consulting with a score of 5.50 (6 excellent 1 poor). They felt that benefits that the enterprises gained from the consultation could be summarised as follows. Opportunity to confidentially talk with an expert in the field about the problems one s own company is facing. Quick practical advice and tips on how to work, more general information and information on the services available. Business advisors are able to tell about recent research results. Entrepreneurs learn to analyse their actions, draw up summaries before coming to a consulting meeting, stop to think about their development targets, and that alone is felt to be a good thing. The feedback from the training revealed that entrepreneurs wished for guidance in developing their products and marketing, improving their websites and implementing online shops. According to the study, the development needs of enterprises comprised 1) identifying new markets and customer groups and planning marketing, 2) a communication plan and information campaigns to the media and customers, and 3) coaching in turning ideas into products. The companies need for help with business expertise is evident in the fields of financing and financial management and pricing. The entrepreneurs new needs regarding the business services concerned preparation for fairs, the agent manager producer chain and finding co-operation partners. It will be necessary to continue service development, enhancement of the business advisors virtual guidance skills, study material production for the service, and marketing of Taito business services. Enhancement of the expertise of Taito business advisors Training has supported the development of Taito business services. Brochures for the Taito business service packages were completed during the project. The expertise of nine Taito business advisors has been enhanced. A team room for Taito business advisors has been created at Taitocampus. It provides different materials for guidance and training.

5 Taito business advisors were given training related to the service packages. The average score given in the training feedback was 5.1 (6 excellent 1 poor). The participants felt that one of the positive aspects of the training was getting to know the new services and discussing the services with colleagues. They expected the training to provide more practical exercises of carrying out the consulting. The average score for Taitocampus training was The best aspects of the training were recapitulated as The training can be applied in practice to the business services. It also immediately stirred new ideas that can be used in the organisation s other activities. The training also inspired discussion on how the electronic environment of the service packages works in practice. The enhancement of expertise within the Taito business services continues. It includes 1) turning Taito business services into clear packages, 2) development of online Taito business services, 3) strengthening Taito business advisors expertise and coaching them, 4) improving communications, 5) building networks and cooperation with domestic and international partners involved in the development of the creative branch, and with national organisations providing business advice services. Improving marketing and e-commerce by the enterprises Training has improved the marketing know-how of 50 enterprises. The marketing and e-commerce skills of enterprises have been improved through training. The target for the number of companies participating in the training within the project was achieved (target 40, actual participation 50 entrepreneurs). The themed training days attracted 32 entrepreneurs and 18 entrepreneurs participated in the training and guidance on establishing an online shop. The average score given for the training in the feedback was 5.16 (6 excellent 1 poor). The average score given to the themed training days was 4.94 and the average score given to the virtual workshop distance learning was 5.50 (6 excellent 1 poor). The feedback from the Taito marketing themed training days revealed that the entrepreneurs considered topical issues to be important. They included marketing, web communications and the practical experiences of marketing as told by entrepreneurs themselves in their talks. One participant summarised the best offering of the training day as Utilising the Internet for marketing in other ways besides and websites, and a wake-up call to search for sales channels and evaluate my own products critically. The feedback also commended the Taito Craftnet workbook and the Taito marketing report included in the material that the participants received. Participants also said that it was very nice to meet other entrepreneurs in the branch and talk with them. The results of the marketing survey, and particularly the way how the responses by entrepreneurs and other respondent groups differed, served to alert the training day participants to customer and buyer feedback. The training day gave me new ideas, particularly on the significance of the web in creating communities. It is not only a marketing tool. Distance guidance was praised for several things, including discussing matters that were current in the particular company at the time, constructive feedback on issues directly preoccupying the entrepreneurs, and expert help in making websites and marketing mail more polished. Furthermore, participants were happy about receiving feedback on their own texts, pictures and existing websites, and suggestions for improvement and refining the content. Distance guidance was also considered easy and comfortable because studying could take place at a time that was most convenient for the student. The experts who participated in the distance learning part of the virtual workshop rated their success in distance guidance with the average score of 5.0 (6 excellent 1 poor). The functionality of Taitocampus as a distance guidance environment was rated as 5.0 (6 excellent 1 poor). The suitability of Taito Craftnet study materials for distance guidance was given the score 5.5 (6 excellent 1 poor). The grounds of successful distance guidance were summarised by one business advisor: The key prerequisite for success is careful, company-specific tailoring. This process enabled us to fully concentrate on the needs and topical

6 issues of each entrepreneur. The role of a tutor promoted the co-operation: she was a link between us and the entrepreneurs. She helped to clarify and strengthen the link between us and the entrepreneurs. One expert commented that the best aspect of the distance guidance period was the intensive contact with the entrepreneurs. Being on-call at Taitocampus, with the entrepreneurs logged in and discussing, being present simultaneously. It created a positive flow and gave a sense of dialogue to our work. According to experts involved in the distance guidance period, entrepreneurs need help in honing marketing messages and in strengthening and clarifying a customer-oriented approach in their online communications. The ability to see one s own products and services from the point of view of potential customers is crucial. Marketing demands the daring of expressing individuality. The workshop periods revealed a particular need to help entrepreneurs in improving their texts targeted at their customers. The Craftnet Product of the month and its maker interviews reveal the importance of web communication as a tool for marketing. The report and feedback on the themed training days showed that companies need new markets and customer groups. Craft and design enterprises are interested in marketing methods that produce maximum results with minimum investment. They need marketing coaching and guidance from experts, as well as peer support from other enterprises in the branch. They want more opportunities for networking at training events. Study materials on open websites and learning environments New study materials on e-commerce have been created for entrepreneurs: the Taito Craftnet workbook for the Taitocampus online learning environment and a pdf-workbook for the open website. 12 Product and company of the month stories (best marketing practices) The public website on craft and design enterprise marketing updated. The site contains marketing stories by craft and design enterprises, study materials and exercises in e-commerce and communication. The project produced new material for the Taito Craftnet workbook and the craft and design enterprise marketing website. The material focuses on craft and design marketing and e-commerce planning and development. Furthermore, 12 Craftnet Product of the Month and its Maker stories were published in Finnish, Swedish and English. These stories market craft and design entrepreneurs and highlight the company s product development, co-operation activities, marketing measures and the importance of online marketing. Study materials have received much praise from the companies that participated in the project. The study materials available on the Craftnet website have been actively used. The Taito Craftnet workbook has been downloaded 20,500 times during the project. The project s e-commerce coaching method and the associated study materials have also attracted attention in other branches. Craftnet makes much of the study material produced by the project available to the public at large. E-commerce progresses at such a pace that the study material need to be updated regularly. Craftnet: a marketplace and an information network Craftnet presented products, services and companies. Entrepreneurs have been informed about product searches made on the Artenet site and by international buyers. Marketing by entrepreneurs has been supported by Craftnet Product of the Month and its Maker stories, published in Finnish, Swedish and English.

7 The Taito business services website (in Finnish, Swedish and English) has been updated A new section focussing on research and reports has been added to the website Reports, study materials and information on events in the craft and design branch has been made publicly available on the Craftnet. Craftnet is a showcase of handicrafts, in Finnish, Swedish and English. The web service provided a classified ads service for entrepreneurs and shops. Craftnet introduced a product of the month and its maker each month. The web service collected and displayed information on exhibitions and sales events. The Taitomedia project of the Finnish Crafts Organization Taito focussed on updating the Taito Group and Craftnet websites and switching over to a new content management system. Content pages and service order forms for both the old and new system were made during the project. The new web service, Taito.fi, will be launched on 30 May Craft and design entrepreneurs have appreciated the web service for providing visibility to the enterprises and bringing new contacts. Members newsletters have also helped entrepreneurs to keep abreast with current events. The number of visitors to the site has increased year by year. The number of survey, project report and study material downloads in particular, shows a strong growth trend. Maintaining and improving the status of Craftnet requires development activities and creating new functions and interaction opportunities in the service. Work on these continues. Enhanced co-operation creates new opportunities for the web service. The aim is to compile an extensive database of entrepreneurs in the craft and design branch for the web service. In future, entrepreneurs can add and update their information on the Craftnet for free. In addition, there will be a Craftnet service, subject to a fee, in which a company can showcase its products. Communications and information dissemination The project has informed players in the craft and design branch about the results of the surveys, new business services and study materials by organising three themed training days and employing . The web service contains information on the project as well as reports and study material. The most important means of disseminating information on new operational models, practices and study materials employed by the project were Taito marketing theme days, stories in the magazine Taito, newsletters, direct marketing and the website In addition, the project s activities have been publicised at various events and the Taito business service at the Kädentaidot fair in It is important for the future development of the branch that themed training days where entrepreneurs, representatives of training bodies and those involved in developing the branch can meet. The latest research results and new marketing opportunities will inspire joint efforts for development. In future, the goal could be to organise more themed training days together with the various players in the field and informing about them within the network. Could craft and design entrepreneurs be reached even better than now in this way? Futher information The Finnish Crafts Organization Taina Tervonen taina.tervonen@taito.fi