Marketing Crafts and Visual Arts: The Role of Intellectual ...

[Pages:150]International Trade Centre

U N C TA D / W T O

Marketing Crafts and Visual Arts: The Role of Intellectual Property

A practical guide

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ABSTRACT FOR TRADE INFORMATION SERVICES

2003

SITC 896 MAR

INTERNATIONAL TRADE CENTRE UNCTAD/WTO (ITC) WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO) Marketing Crafts and Visual Arts: The Role of Intellectual Property: A practical guide Geneva: ITC/WIPO, 2003. xiii, 135 p.

Guide dealing with the relationship between successful marketing of crafts and visual arts, and the appropriate use of intellectual property (IP) system instruments - points to situations where obtaining formal IP protection ought to be considered; explains how to implement marketing and IP strategies within a business framework and marketing management process; presents case studies and examples of managing IP assets in marketing from the craft and visual arts sectors in developing countries; includes bibliographical references (pages 134?135).

Subject descriptors: Works of Art, Crafts, Intellectual Property.

English, French, Spanish (separate editions)

ITC, Palais des Nations, 1211 Geneva 10, Switzerland WIPO, 34 chemin des Colombettes, 1211 Geneva 20, Switzerland

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre UNCTAD/WTO and the World Intellectual Property Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

Mention of firm names, commercial products and brand names does not imply the endorsement of ITC and WIPO.

Digital image on the cover: Front cover photo composition by Laurena Arribat, ITC Multimedia Consultant, using photographs courtesy of: Serigne Mor Niang (`Mara'), centre bottom left pictures of `Gangunaay' and `Pile of shells'; Moussa Mballo (through Youssou Soumar?), centre bottom right picture of his painting `Debbo'; Christian Planchette, ITC, centre top right pictures of Mauritanian bangles; Mar?a-Mercedes Sala, ITC, the other craft and art pictures in both the central part and the frame of the composition.

? International Trade Centre UNCTAD/WTO and World Intellectual Property Organization 2003

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, electrostatic, magnetic tape, mechanical, photocopying or otherwise, without prior permission in writing from the International Trade Centre and the World Intellectual Property Organization, except to the extent specified on page 3.

ITC/P159.E/PMD/MDS/03-XI

ISBN 92-9137-264-1 United Nations Sales No. E.03.III.T.8

Preface

With the continuing liberalization and deregulation of the world trading system freeing the flow of goods and services, the international business environment is becoming increasingly competitive for creators and providers of all kinds of craft and visual arts products. Consumers now have tremendous choice. Artisans, craft entrepreneurs, visual artists and all the intermediaries in the supply chain must constantly strive to improve the quality of their products and services, the production processes, their brand identity and the effectiveness of their marketing strategies, if they wish to improve their business performance, productivity and competitiveness and win the hearts and minds of customers. Understanding the market, particularly the behaviour of consumers and competitors, is the key to success for any business. Identifying a demand and then working backwards ? before making a product ? is a must. This is where marketing comes in.

Marketing implies a market-driven, customer-centred approach. This is the reality for most categories of goods and services. For the craft and visual arts sectors, the marketing challenges come from many directions. At first sight, it would seem that machine-made products could easily be substituted for these essentially hand-made ones, especially in our knowledge-driven high-tech times: modern industry is enabling an increasing degree of mass customization and personalization of product offerings. Another challenge may come from the fact that the products of craftspeople and visual artists are not generally basic needs for consumers. As a result, consumption of these products may decline if consumer spending is down, especially during economic downturns.

A key strength of artisans and visual artists lies in their creativity and craftsmanship in expressing it. This gives their output a distinct traditional, cultural or symbolic flavour, which arouses the interest and matches the emotional needs and aesthetic tastes of discerning customers in specialized niches of domestic and export markets. Even so, attracting and retaining consumers is a daunting task in an overcrowded marketplace, where consumers find ample choice and alternatives and where competitors are constantly searching for successful product trends.

Given today's instant information and communication facilities, coupled with the ease and speed of copying and imitation, the market can simply get flooded with look-alike products or downright copies, which are also known as `counterfeits' or `forgeries'. The real challenge for artisans and visual artists is thus not just to produce and market winning new products that cater to changing consumer tastes, but also to prevent ? or if unable to prevent then to effectively deal with ? unfair competition or theft of their creative ideas. The intellectual property (IP) system is the best available tool for creating and maintaining exclusivity over creative and innovative output in the marketplace, albeit for a specified maximum period of time. The effective use of IP can also help artisans and visual artists to develop networks and relationships not only with end consumers, but also with all the links in the supply and demand networks.

If artisans and visual artists are to get a fair return from their creativity in the marketplace, it is important for them to follow a planned and systematic marketing strategy which integrates the use of the tools provided by the system of IP rights. This must begin with a basic understanding of the principles of marketing and of the IP system, along with a broad recognition of the value of IP assets in marketing and practical guidance in making proper use of them.

The highly competitive nature of the marketing process compels each country to protect culture-based goods as a substantial part of its national cultural heritage. This is especially relevant for many developing countries and countries in transition, in which the role of the craft and visual arts sectors can prove to be pivotal for sustainable development and poverty reduction. For policy-makers in government, business and civil society in these countries, defending the interests of artisans, craft entrepreneurs and visual

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artists against unfair competition is becoming critical in order to underpin their commercial success and their contribution to individual and collective wealth creation, as well as to preserve cultural identity and diversity.

WIPO and ITC have joined hands to improve information dissemination, awareness creation and capacity building in their client countries, to explain the decisive links between successful marketing and the appropriate use of the tools of the IP system. In this spirit, this Guide attempts to demystify marketing and IP by underlining the practical relevance of both ? and their interdependence ? in responding to the economic or business needs of artisans, craft entrepreneurs and visual artists. This understanding should allow them to create and retain a competitive edge in the marketplace and to make meaningful profits based on their creativity, expertise, skills and enterprise ? and by using fair means.

Kamil Idris Director-General World Intellectual Property Organization

J. Denis B?lisle Executive Director International Trade Centre

Acknowledgements

John Ballyn, consultant to ITC and main co-author of the Guide, carried out research and wrote the core text on marketing issues.

Juan David Castro, consultant to WIPO, carried out research and wrote the initial draft text on intellectual property issues.

Lien Verbauwhede, WIPO Consultant, Small and Medium-Sized Enterprises Division, and main co-author of the Guide, carried out research, wrote the core text on IP issues, coordinated the WIPO input, and consolidated the work of the entire Guide on behalf of WIPO.

Mar?a-Mercedes Sala, ITC Senior Market Development Officer for artisanal products and cultural industries, provided John Ballyn with technical and overall advice, carried out research, contributed text and case studies, and coordinated the preparation and editing on behalf of ITC.

Guriqbal Singh Jaiya, WIPO Director, Small and Medium-Sized Enterprises Division, spearheaded research, provided strategic guidance, contributed text and case studies, and harmonized other contributions on behalf of WIPO.

Marie-Claude Frauenrath, ITC Associate Expert, provided assistance.

The contributions of the following people are much appreciated.

For drafting background texts for the case studies:

Suman Dhakwa, the proprietor of `Valhalla Enterprises', a Nepalese silversmithing business;

Nadim Michel Kalife, the proprietor of `Le Petit Prince', a Togolese wooden craft entrepreneur and exporter;

Serigne Mor Niang ( `Mara'), a Senegalese plastic artist and designer; and Youssou Soumar?, a Senegalese jurist and copyright specialist.

For providing technical written comments:

Philippe Baechtold, WIPO Head, Patent Policy Department, Patent Law Section;

Susanna Chung, WIPO Consultant, Traditional Creativity and Cultural Expressions Section, Traditional Knowledge Division;

Denis Croze, WIPO Head, International Law Development Section;

Candra N. Darusman, WIPO Consultant, Cooperation for Development Bureau for Asia and the Pacific;

Martha Parra Friedli, WIPO Senior Legal Officer, Trademarks, Industrial Designs and Geographical Indications Department;

Rosina Pi?eyro, WIPO Programme Officer, Copyright Collective Management Division;

Wolfgang Starein, WIPO Director, Enforcement and Special Projects Division;

Wend Wendland, WIPO Head, Traditional Knowledge Division; and

Heike Wollgast, WIPO Associate Officer, Administrative Support Services and External Relations.

Alison Southby edited the Guide. Isabel Droste was responsible for copy preparation and final copy editing. Both are ITC staff members.

Contents

Preface

iii

Acknowledgements

v

Note

xiii

CHAPTER 1

Introduction

1

About this Guide

1

The intended audience

2

Using the Guide

2

CHAPTER 2

Definitions and outline

4

Crafts and visual arts

4

Definition of craft products

5

Characteristics of an artisan and a craft enterprise

6

Definition of visual arts

7

Characteristics of visual artists and their work

7

Intellectual property

7

Definition of intellectual property

7

Some key characteristics of intellectual property

8

Overview of the types of intellectual property

9

How to convert intellectual output into intellectual property

11

CHAPTER 3

Understanding the value of intellectual property

12

Challenging business and market environment

12

Basic ingredients of business success

13

What is a quality product?

13

What is a distinctive brand?

13

What is effective marketing?

14

Access to knowledge as added value

14

Knowledge and its relevance to business

15

What is the problem with knowledge?

15

What is special about IP?

16

Preventing others from free-riding on one's own knowledge

17

Why is intellectual property crucial in crafts and visual arts marketing?

17

Basic requirements for enjoying the benefits of IP assets

18

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CHAPTER 4

Linking intellectual property to business development

and marketing throughout the business cycle

19

Marketing defined ? an outline

19

Marketing fundamentals

20

Marketing fundamentals for artisans and craft enterprises

22

Marketing fundamentals for visual artists

22

Using an artist's agent

22

Marketing alone

23

Exhibitions

23

Applying for commissions or entering competitions

23

Relevance of intellectual property at the various stages of the business cycle

24

Market research

24

Market research for artisans and craft enterprises

25

Identifying new markets

26

Locations

27

Consumer types

28

Seeking out market niches and product ideas

28

Identifying promotional materials and methods

29

Market research for visual artists

29

Desk research

29

Research in target countries

30

Marketing strategy

30

Marketing strategies for artisans and craft enterprises

30

Marketing strategies for visual artists

31

Intellectual property in marketing strategies for artisans, craft enterprises and visual artists

32

Business, marketing and product development planning

34

Business plan

34

Planning a distinctive image or identity

38

Creating labelling, packaging and promotional materials

39

Labels

39

Packaging

39

Promotional material

40

Product development and adaptation

42

Product design process

43

Sample making stage

45

Product costing and pricing

45

Costing

45

Pricing

46

Test marketing

48

Product promotion and product launch

49

Order processing, customer relations and quality

51

Analysis of product sales and new market research

53

CHAPTER 5

How to protect crafts and visual arts

56

Copyright

56

What is copyright?

56

What rights does copyright grant? Why is copyright relevant for artisans and visual artists?

56

What are the requirements for obtaining copyright protection?

57

Are crafts and visual arts works covered by copyright?

58

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