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Breathitt County Small Business
Digital Marketing Case Studies: EPG
    Exploration into integrating
 traditional and online marketing

               Peter H. Hackbert
  Entrepreneurship for the Public Good Program
            Berea College, Berea KY

             Jackson Kiwanis Club
              November 20, 2012
Small Rural Appalachian Community
               Economic Development (CED)
Traditional ED Strategy / Tool                Direct, Short-term
    •   Industrial development                                                        Economic
    •   Business retention / expansion                                                Outcomes
    •   Workforce development                                                           • jobs
    •   Tourism                                                                         • firms
                                               Economic Development                     • prosperity
                                                                                        • wealth
                                               Approaches
Alternative ED Strategy / Tool
    •   Entrepreneurship                       1. Recruit firms from the outside
    •   Downtown development                   2. Strengthen/expand existing firms
    •   Arts / Creative economy                3. Promote development of new firms
    •   Cluster-based development                                                    Other
    •   Residential development
                                                                                     Outcomes
                                                                                        • social
                                                                                        • civic
                                                                                        • environmental
CD Capacity Building Strategy /
Tool
                                              Indirect, Long-term
    •   Transportation
    •   Broadband / Internet / Social Media
    •   ED finance
    •   Philanthropy
    •   Strategic planning
    •   Leadership development
    •   Organizational development
EPG Small Rural Appalachian Community
        Economic Development Model
Traditional ED Strategy / Tool    Direct, Short-term
                                                           Economic
    • Tourism
                                                           Outcomes
                                                             • jobs
                                   Economic Development      • firms
                                   Approaches
                                   e
Alternative ED Strategy / Tool     1. Strengthen/expand
    • Entrepreneurship economy
                                     existing firms
    • Cluster-based development
    • Local Living Economies       2. Promote new firms   Other
    • Residential development                             Outcomes
                                                             • social / civic
CD Capacity Building Strategy /                              • environmental
Tool
                                  Indirect, Long-term
    • Transportation
    • Broadband / Internet /
    Social Media
23M Small Businesses in the USA
• 90 percent of the businesses in the Commonwealth
  have fewer than 50 employees.

• In 2008, small businesses totaled 339,747 .

• 69,175 were employers, and they accounted for 49.2%
  of private-sector jobs in the state.

• Small firms (less than 500 employees or no employees)
  made up 96.7% of the state’s employers.
EPG Service Area 2010 County Business
   Patterns – Total Establishments
           Madison     1,559

           Breathitt   211
           Lee         98
           Leslie      113
           Letcher     702
           Knott       189
           Owsley      44
           Perry       702
           Wolf        84
“Uneven Ground”




UK Professor of
History: Ronald Eller
                               www.google.com/images
…growing popularity of ecotourism and
heritage tourism…contained the potential for
building an alternative economy, one that
promised greater monetary returns for local
residents, the preservation of rural traditions,
and the protection of sensitive natural
resources.

        - Ronald D. Eller, Uneven Ground, The University of
                                 Kentucky Press, 2008: 256.
Key Question

   Can Social Media be a tool to
develop an alternative economy in
    Appalachian communities?
Case 1

  They asked us to expand the
traditional definition of tourism.
Berea, Kentucky -
500 Cultural Assets
Case 2

They asked us to find out how
travelers navigate the region?
Case 3

They asked us how much travelers
      spend and on what?
Research Team
Total Expenditures for the 4,000
Out-of-Towners Knott County Trail
             Riders
 Items                             Expenditures
 Entrance fees                         $19,492
 Food and Beverage                     162,435
 Retail Shops                          207,916
 Private Auto and Other Expenses       259,896
 Total                                $649,740
Case 4

They asked us what can we do to
    keep them here longer?
Along come
cell phones
Cultural Heritage Cell Phone Tour
Case 5

They told us
Small Rural Town Program
   Rural Populations
       1,602
          357
          175
       1,764
          747
        1,081
We traveled and we interviewed
    small business owners.
Small Business Using Social Media in
           North Carolina




        The Blue Ridge Soap Shed
Case 6

We listened
….”achieving Certification as an Entrepreneurial
    County, recognized the commitment to
encourage and support entrepreneurship while
  improving the business climate for existing
                 companies. ."
Peer to Peer KRADD Workshops
Case 7

Online Advertising for small
        businesses
Average Time Spent: 5.4
 Hours/Month

          38.1%


                                                     32.5%
 30.1%




                                    21.4%
                          18.1%
                                                                16.5%

                                                                                     12.8%
                                                                                                      11.2%
                                                                             10.2%
                                                                                              9.1%




     Europe                    N. America               Asia-Pacific          Latin America   Mid East-Africa
                                            Share of visitors    Share of minutes




The Social Media Data Stacks
                                                                30
The Facebook User: 5 More
   Hours on Site per month

           Facebook                                                   7:46
          AOL Media                                            2:53
               Yahoo                                       2:12
              Google                                    1:48
MSN/Windows Live/Bing                                   1:44
            YouTube                                    1:41
           Wikipedia                                 1:18
                Apple                              1:06
           Microsoft                             0:45
             Amazon                             0:31

  Source: HubSpot (2011) The Social Media Data Stacks
                                                        31
Case 8

Social Media in the KRADD
We observed and we listened to
 the KRADD business owners,
  attraction and destination
           operators
They use
Facebook
Google Search   Website
Case 7

Summer 2011 - We organized 7
KRADD Social Media Workshops
We designed Digital Yellow Pages
           Workshops
• Digital Yellow Pages = Review sites, search engines and social
  media
   – Ex.: Facebook, Google places, Yelp, Trip Advisor
We designed Company (not
personal) Facebook pages
Case Study: The Courthouse Cafe
Summer 2012 - We researched
    Kentucky Tourism
Kentucky Visitor Profile Study
Daniel Boone Country Region
    September 2010 – August 2011 Visitors
                 Prepared for:
         The Commonwealth of Kentucky
         Department of Travel and Tourism


                     Prepared by:
3rd largest industry in Kentucky,
 Tourism is the

providing $3.3 billion in salaries annually


 This is despite  only 34%         of first-time Kentucky
visitors actually recalling seeing any advertisements or
      promotions for Kentucky prior to their visit.
The tourism and travel industry contributed
  nearly   $11.7 billion to Kentucky’s economy
     in 2011.—an increase of   3.0 percent
In the Daniel Boone Region, where the KRADD is
     located, there was a   1.6% increase
Key Facts

Visitors come to Daniel Boone Country Region


•It is peaceful/relaxing (81%),
• It is a safe destination (74%),
•   There is plenty to see and do (72%),
•    It is a good value for the money (71%)
•       The clean unspoiled environment (72%)
The Daniel Boone Country Visitor
Average Income   : $68,560

Average Age: 50.8


Average Travel   Group Size: 3

69% short pleasure trip

53% use internet
Recommend their visit to others:   96%
Imagine


How would you spend 36 hours in
     the KRADD region?
"The traveler/tourist persona
 profile gives you a chance to truly
   empathize with target market
segments, stepping out of the role
as someone who wants to promote
  a product and see, through your
          travelers' eyes…”

                  Peter H. Hackbert
36 Hours in the
KRADD Region
Online consumer recommendations are
 the second most trusted source of brand
         advertising, second only to
“recommendations from people I know” in
a global 2012 study of 28,000 consumers in
                56 countries

Source: Nielson, “Consumer Trust in Online, Social and Mobile advertising Grows, 2012
34 Personas
1. Traveler and Tourist Personas
Meet the Weston’s
Lifestyle
Limitations
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Breathitt County KY Small Business Digital Marketing Case Studies: EPG Exploration into Integrating Traditional and Online Marketing

  • 1. Breathitt County Small Business Digital Marketing Case Studies: EPG Exploration into integrating traditional and online marketing Peter H. Hackbert Entrepreneurship for the Public Good Program Berea College, Berea KY Jackson Kiwanis Club November 20, 2012
  • 2. Small Rural Appalachian Community Economic Development (CED) Traditional ED Strategy / Tool Direct, Short-term • Industrial development Economic • Business retention / expansion Outcomes • Workforce development • jobs • Tourism • firms Economic Development • prosperity • wealth Approaches Alternative ED Strategy / Tool • Entrepreneurship 1. Recruit firms from the outside • Downtown development 2. Strengthen/expand existing firms • Arts / Creative economy 3. Promote development of new firms • Cluster-based development Other • Residential development Outcomes • social • civic • environmental CD Capacity Building Strategy / Tool Indirect, Long-term • Transportation • Broadband / Internet / Social Media • ED finance • Philanthropy • Strategic planning • Leadership development • Organizational development
  • 3. EPG Small Rural Appalachian Community Economic Development Model Traditional ED Strategy / Tool Direct, Short-term Economic • Tourism Outcomes • jobs Economic Development • firms Approaches e Alternative ED Strategy / Tool 1. Strengthen/expand • Entrepreneurship economy existing firms • Cluster-based development • Local Living Economies 2. Promote new firms Other • Residential development Outcomes • social / civic CD Capacity Building Strategy / • environmental Tool Indirect, Long-term • Transportation • Broadband / Internet / Social Media
  • 4. 23M Small Businesses in the USA • 90 percent of the businesses in the Commonwealth have fewer than 50 employees. • In 2008, small businesses totaled 339,747 . • 69,175 were employers, and they accounted for 49.2% of private-sector jobs in the state. • Small firms (less than 500 employees or no employees) made up 96.7% of the state’s employers.
  • 5. EPG Service Area 2010 County Business Patterns – Total Establishments Madison 1,559 Breathitt 211 Lee 98 Leslie 113 Letcher 702 Knott 189 Owsley 44 Perry 702 Wolf 84
  • 6. “Uneven Ground” UK Professor of History: Ronald Eller www.google.com/images
  • 7. …growing popularity of ecotourism and heritage tourism…contained the potential for building an alternative economy, one that promised greater monetary returns for local residents, the preservation of rural traditions, and the protection of sensitive natural resources. - Ronald D. Eller, Uneven Ground, The University of Kentucky Press, 2008: 256.
  • 8. Key Question Can Social Media be a tool to develop an alternative economy in Appalachian communities?
  • 9. Case 1 They asked us to expand the traditional definition of tourism.
  • 10. Berea, Kentucky - 500 Cultural Assets
  • 11. Case 2 They asked us to find out how travelers navigate the region?
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  • 14. Case 3 They asked us how much travelers spend and on what?
  • 16. Total Expenditures for the 4,000 Out-of-Towners Knott County Trail Riders Items Expenditures Entrance fees $19,492 Food and Beverage 162,435 Retail Shops 207,916 Private Auto and Other Expenses 259,896 Total $649,740
  • 17. Case 4 They asked us what can we do to keep them here longer?
  • 20.
  • 22. Small Rural Town Program Rural Populations 1,602 357 175 1,764 747 1,081
  • 23. We traveled and we interviewed small business owners.
  • 24. Small Business Using Social Media in North Carolina The Blue Ridge Soap Shed
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  • 27. ….”achieving Certification as an Entrepreneurial County, recognized the commitment to encourage and support entrepreneurship while improving the business climate for existing companies. ."
  • 28. Peer to Peer KRADD Workshops
  • 29. Case 7 Online Advertising for small businesses
  • 30. Average Time Spent: 5.4 Hours/Month 38.1% 32.5% 30.1% 21.4% 18.1% 16.5% 12.8% 11.2% 10.2% 9.1% Europe N. America Asia-Pacific Latin America Mid East-Africa Share of visitors Share of minutes The Social Media Data Stacks 30
  • 31. The Facebook User: 5 More Hours on Site per month Facebook 7:46 AOL Media 2:53 Yahoo 2:12 Google 1:48 MSN/Windows Live/Bing 1:44 YouTube 1:41 Wikipedia 1:18 Apple 1:06 Microsoft 0:45 Amazon 0:31 Source: HubSpot (2011) The Social Media Data Stacks 31
  • 32. Case 8 Social Media in the KRADD
  • 33. We observed and we listened to the KRADD business owners, attraction and destination operators
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  • 36. Google Search Website
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  • 38. Case 7 Summer 2011 - We organized 7 KRADD Social Media Workshops
  • 39. We designed Digital Yellow Pages Workshops • Digital Yellow Pages = Review sites, search engines and social media – Ex.: Facebook, Google places, Yelp, Trip Advisor
  • 40. We designed Company (not personal) Facebook pages
  • 41. Case Study: The Courthouse Cafe
  • 42. Summer 2012 - We researched Kentucky Tourism
  • 43. Kentucky Visitor Profile Study Daniel Boone Country Region September 2010 – August 2011 Visitors Prepared for: The Commonwealth of Kentucky Department of Travel and Tourism Prepared by:
  • 44. 3rd largest industry in Kentucky, Tourism is the providing $3.3 billion in salaries annually This is despite only 34% of first-time Kentucky visitors actually recalling seeing any advertisements or promotions for Kentucky prior to their visit.
  • 45. The tourism and travel industry contributed nearly $11.7 billion to Kentucky’s economy in 2011.—an increase of 3.0 percent In the Daniel Boone Region, where the KRADD is located, there was a 1.6% increase
  • 46. Key Facts Visitors come to Daniel Boone Country Region •It is peaceful/relaxing (81%), • It is a safe destination (74%), • There is plenty to see and do (72%), • It is a good value for the money (71%) • The clean unspoiled environment (72%)
  • 47. The Daniel Boone Country Visitor Average Income : $68,560 Average Age: 50.8 Average Travel Group Size: 3 69% short pleasure trip 53% use internet Recommend their visit to others: 96%
  • 48.
  • 49. Imagine How would you spend 36 hours in the KRADD region?
  • 50. "The traveler/tourist persona profile gives you a chance to truly empathize with target market segments, stepping out of the role as someone who wants to promote a product and see, through your travelers' eyes…” Peter H. Hackbert
  • 51. 36 Hours in the KRADD Region
  • 52. Online consumer recommendations are the second most trusted source of brand advertising, second only to “recommendations from people I know” in a global 2012 study of 28,000 consumers in 56 countries Source: Nielson, “Consumer Trust in Online, Social and Mobile advertising Grows, 2012
  • 54. 1. Traveler and Tourist Personas