When you're starting out, marketing is about getting your name out there at minimum cost, so here are some basics to get you started.
Get yourself a Blog! It's free and you can post (advertise) specials and Giveaways! Everyone loves free stuff! That way you get your name in the Google arena and the more people who visit your blog and follow you, the higher up in the Google ranking you get.
Join Twitter and Facebook! You may already be blogging and tweeting and if you are, then you should have links on your website. (You need a website). The more places that link to you online, the more Google likes you.
Add a 'how to' video to You Tube, which is the 2nd largest search engine to Google (that's why Google bought it).
You need to search out handmade related groups, message boards and lists and get yourself in their directory like UK Handmade, Misi, Etsy or Ugly Be Gone. Add your profile everywhere.
Then host a Giveaway and people will participate, and they'll ask their friends to go to your blog and enter too, which will bring you more traffic.
You'll need a Flickr account to host your pictures, which will bring you some traffic as well if you upload images of your handmade items there. (Check out the terms of Flickr because they shut you down if you try to mention your shop there).
Remember marketing is probably 40% of your working time and is essential to get your name known and therefore lots of lovely sales!
What I love about 'Handmade/Crafters' online is that there is a great community spirit and everyone helps each other. So be sure to help others along the way and they'll help you in return.
I really hope these tips are of some help.
Do you know of any really smashing examples of marketing that I haven't even touched upon? Please let me know and I'll add them with a link to your site. ;)