Marketing of Cultural Heritage Art Marketing
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Transcript of Marketing of Cultural Heritage Art Marketing
Marketing of Cultural HeritageArt MarketingRadka Johnová, [email protected]
Cultural Heritage, Tourist Attractions
Impact on the state economy Visitors Taxis Income for the city
Marketing helps toexplain and deliver a product
to the right segments of customers at the right time and to the right place at a corresponding price (comparing with
the quality) with the support of publicity in the competitive environment
Marketing tools - 4Ps + 4Cs (or Cs)
Product Price Place Promotion
People Packaging
Customer / Consumer Convenience Cost Channels Communication Competition Cooperation Context Company skills Collaborators
Concepts The production concept - products available
and inexpensive (library, museum) The product concept - quality, performance,
innovations (gallery, theater) The selling concept - aggressive selling,
promotion effort - for unsought goods, in the non-profit area by fund-raisers, crowdfunding
The marketing concept - business philosophy The holistic concept
Integrated marketing Relationship marketing Internal marketing Social responsibility marketing
Customers
Strategic Museum Challenges, Mission, Visitors, Funding, Audience Building
Mission Collect objects Preserve objects Research objects Interpret objects Show objects Educate people Inspire people to support museumObjectives of Museums Attracting Building Retaining an audience
Audiences, Constituenciesvs. Conflict of Interests Visitors Directors Patrons Donors Members Governmental constituencies Corporate and business support
constituencies
Attributes that influence leisure choices Feeling comfortable and
at ease in one's surroundings
Recreation Learning Experience Doing something
worthwhile Participating actively Aesthetic Experience Celebrative Experience Enchanting Experience Sociability; Being with
people, or having social interaction
Audiences Categories Emotional ("feeling
comfortable")
Rational ("having an opportunity to learn")
Sensory ("having a challenge of new experiences")
Audience Development
Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program quality
Audience Building Frequent visitors value most highly these attributes:
The opportunity to learn To undertake new experiences To do something worthwhile in their leisure time Temporary exhibitions and programs
Occasional visitors seek after Active participation Social interaction Entertaining experiences Relaxing experiences Comfortable settings Interaction with other people
Visitors Community residents
Repeat visitors Expect temporary exhibitions and programs
Tourists Are first-time visitors Plan their destination Seek particular kinds of experiences Have high expectations Spend more money Purchase gifts Are attracted to so-called blockbuster exhibitions
Typology of Visitors Professionals Hobbyists Explorers – curiosity driven Facilitators Sheep (Black sheep, Naughty child) Experience seekers Spiritual pilgrims (Numen seekers) Consumers Reviewers Snobs
Consumer Behavior Influence
Marketing stimuli Other stimuli
(external) Cultural factors Personal factors Psychological factors Social factors
Social factors Reference groups Membership groups Aspirational groups Dissociative groups
Opinion leader
Competition
Cooperation
Competition
Desire Generic Form
Enterprise
Stay-at-home behavior Free-time activities Cultural and educational
activities Other museums
Market Segmentation
Targeting and Positioning
Requirements for Effective Segmentation Substantiality (group big enough to be worth
attracting) Measurability (clearly defined) Accessibility Approaches to Markets
Mass marketing Segmentation marketing Niche marketing Segment-of-one marketing
Geographical Segmentation
Local visitors Short-distance visitors Long-distance domestic visitors European visitors Overseas visitors
Demographic Segmentation Age Sex Family size Family income Education Occupation Religion Race Ethnicity
Organizational Segmentation Foundations Government agencies Corporations Company Segmentation Size Location Product lines Resources Personal variables
Owners’ personal preferences Human relations
Product
Developing Attractive Offerings
Product Goods Services
Intangibility Inseparability Variability Perishability
Events Experiences
Organizations Places Building Persons Information Ideas
Demarketing
Museum's Offerings Exterior and interior architecture Objects, collections, exhibitions Programs; lectures, performances, tours Events; social, opening-night, seasonal Museum services, such as reception and orientation,
food service, shopping, and seating Interpretive materials; labels, texts, catalogues Supporting services Organization of the visitor's time, activity, and experience Be informed about a visitor's expectations, needs, and
preferences Keep the visitor from being bored
Remember the Audience Exhibitions don't tell, they show Exhibitions are provocative, not comprehensive Effects affect Match media with message Exhibitions should not remain unchanged Upgrade existing exhibitions and programs Develop new offerings Rotate, modify exhibitions Refresh and plan new exhibits Structure exhibitions with themes, contexts, points of
view A good question is better than a declaration Interaction, unexpected connections, surprises, humor
address people
Purchasable Products and Services Souvenirs, books, guides, art catalogues Art reproductions and prints, posters Clothing with the museum's name or logo Children's games , learning games Guided tours Refreshment , restaurant Commercial services
Expert evidence by authorized expertsRental of facilitiesSocial and business events
Place
Distributing the Museum’s Offerings and Services
Distribution channels depends on Physical accessibility Time accessibility Attractiveness Atmosphere Interior and equipment Architecture Features Surroundings Internal factors
Balance the value of distributing
collections to a large number of people in the present day
against the value of conserving these collections in the best state for future generations
Ways to Distribute a Museum’s Offerings The main facility, building, place, expositions Traveling exhibitions and loans
Growing visibility of museums Reduce storage costs Reciprocity New offerings Sponsors Press attention
Off-site programs; Curators lectures Cooperation; City Culture Card, Reciprocal memberships Museums can have branches Publications and guides to museums Partnerships with hotels, restaurants, airlines, public
transport organizations Electronic distribution
Electronic Distribution Up-to-date information; annual reports, newsletters Cyberspace visitors; digital visits to exhibitions Audio-assisted guides to download Real-time discussions with curators Setting up a "chat room" to communicate with other
members on-line Response to followers who live at a distance from the
museum Social network, blog… The cost effectiveness Web sites provide feedback Experience far away from the traditional museum-going E-shop
Price
Setting Pricing and Revenue-Building Strategies
Pricing Pricing admission
Remain free to the public Request a donation at the door Charge admission
Setting prices for other services Pricing loaned objects and traveling exhibitions Pricing special exhibitions and events Pricing memberships Pricing items in the gift shop Pricing rental of museum facilities Pricing donor support
Price Elasticity Price sensitivity of the target market Break point beyond which its public showed resistance The rate of customer turnaround Alternative leisure-time activities Barriers to visitation besides admission fees
Objectives for Setting Admission Fees
Charging to maximize the number of visitors Charging to maximize cost recovery Surplus building Charging what comparable museums charge Charging what other leisure activities charge Charging a single, uniform price Charging to maximize revenue Charging the socially justified price
Pricing ExtrasPricing Special Exhibitions Expense often establish a special admission fee Balance not discourage citizens of limited means Pricing Special Events and Rental of Museum Facilities Good opportunity for earning additional income It would take a lot of visitor admission fees to equal the level of
revenue arising from a special event Events show diminishing returns Corporations pay a premium price to host a social or business
event Standard markup over the actual cost for sponsors or local
government social event Not to rent facilities out too frequently (Scarce goods) Museum's facilities experience excessive wear-and-tear
Pricing Sponsoring Assets for sponsor Publicity and its effectiveness Informal contacts Pricing Membership Programs Standard and higher membership levels Pricing donations and gifts from individuals
and companies on principles of segmentation Donor Benefits
Pricing Membership Programs Standard membership levels 1. Single memberships 2. Family memberships 3. Students membership
unlimited free admission a discount on museum gift shop purchases
Higher membership levels Invitations to special programs Behind-the-scenes tours Meetings with directors and curators Free exhibit catalogues and other gifts
Marketing Communication
Promotion
Communicating and PromotingHow to find customers
How customers will find us
Image and brand building
Public relations Advertising Sales promotion Direct marketing
Events & experiences E-marketing Viral marketing Guerilla marketing Social network
Participants Visitors and non-visitors Employees State and local governments Artists Professionals Critics Journalists Sponsors, donors
Image Building and Brand Identity
Attracts attention Builds familiarity and trust Conveys a promise Conveys expectation of benefit Attracts people to the museum
Advertising - Designing the Message
AIDA
Capture attention Hold interest Arouse desire Elicit action
Public Relations Unpaid promotion Media relationsThe task of public relations is to form, maintain, or change public attitudes toward the organization or its products, attitudes that in turn will influence behavior
Tools of PR - Events Events are planned happenings that aim to
communicate or deliver something to target audiencesPress conferencesGrand openings (first night performances)Public toursSponsor events, programs, including
Exhibition openings First-night performances Art fairs Art competitions
Community Relations
Identify local opinion leaders Make museum facilities available for
community events Tours for local residents Host special community events Educational programs
Advantages of Direct Marketing Prospect selectivity Personalization Relationship building Timing Attention Research opportunities Target group: members, sponsors
Sales Promotion
Temporary price reductions Admission free Late evening hours
Sponsoring
Attracting Resources
Membership Programs and BenefitsAttracting and Motivating Donors Attracting Members Mass marketing
approach Segmenting and
targeting approachHigh actives Moderate actives Inactives
Free admissions Discounts Conveniences Social events Education Information Recognition Gifts
Sponsoring is not a donation
Relationship between equal partners sponsor and sponsored
Both of them are seeking to gain an advantage
Triangle SponsorSponsoredMedia
Sponsor vs. Donor
Gaius Cilnius Maecenas (70 – 8 BC) Confidant and political advisor to Octavian
(Emperor of Rome as Caesar Augustus) Synonym to "patron of arts" Famous literary circle, which included
Horace, Vergil, and Propertius
Sponsored organization
Offers Image Product Audience (customers)Publicity
Is seeking Money Goods Services
Sponsoring Targets (1)
Familiarity Favorable attitude Image Goodwill Breaking through
communication barrier Motivation of employees Impress partners
Conditions of Concept Credibility Uniqueness Publicity
Sponsoring Targets (2)
Can be sponsoredPerson (artists)Group, teamOrganizationExhibition, programEventArcheological research
Target GroupsConsumersGovernments and authoritiesEmployeesMediaGeographical TargetWorld Country Region Local
Types of Sponsoring
One-time or long-time Money or barter Investments Co-sponsoring Exclusive sponsoring Name holders
Sponsor Chooses One or more projects Target groups Number of addressed Visibility in media Publicity and its effectiveness Methods of presentation Breaking through
communication barrier Assets for sponsor Informal contacts
Marketing Strategies
Analyses, Planning
Marketing Plan Structure Introduction
Executive summary Main goals and
recommendations Current marketing situation
Problems to solve Objectives
Analyses, marketing audit SWOT (PEST) Customers - Segmentation Competition - Cooperation
Marketing strategy; mix 4P Budget Controls Implementation Conclusion
Marketing strategy Product Price Place Promotion
Public relations Advertising Sales promotion Personal selling Direct marketing Event marketing E-marketing Viral marketing Guerilla marketing Product placement
SWOT Analysis
Internal Resources Analysis Strengths Weaknesses
External Resources Analysis Opportunity analysis Threat analysis
Programs Museum reputation Core product quality (exhibits) Interpretative quality Orientation quality Volunteer services quality New exhibit developmentAudience development Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program qualityMarketing Image effectiveness Product mix Pricing effectiveness Public perceptions of accessibility Promotion effectiveness Image
Finance Cost/availability of capital Cash flow Financial stability Fundraising effectiveness Government support Earned income support Corporate support Individual giving Grants Organization Visionary, capable leadership Dedication of employees Entrepreneurial orientation Innovativeness Staff responsiveness to public
service, educational outreach Flexibility and responsiveness
Market Environment
Museum visitors Members Community residents Stakeholders Volunteers and activists Donors Media
AnalysesPEST Political Economic Social Technological
SLEPT Legal
PESTLE Environmental
STEEPLE EthicsSTEEPLED Adding
Demographic factorsDESTEP Demographic Economic Social Technological Ecological Political
Offerings ► Existing Modified New
Markets ▼Existing 1. Market
penetration4. Modification for existing markets
7. Product innovation
Geographical 2. Geographical expansion
5. Modification for dispersed markets
8. Geographical innovation
New 3. New markets
6. Modification for new markets
9. Total innovation
Conclusion Marketing's role has to be seen as one
of supporting a museum's objectives. Marketing does not define the
museum's objectives. Marketing assists an organization in
achieving its objectives towards customers.
Thank you for your attention Tak for opmærksomhedenMore detailed information can be found on the Internet:http://info.sks.cz/users/jo/ For English click to:ENGLISH PAGES - ART MARKETINGReferences: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, Inc. 2008. 288 p. ISBN 978-80-247-2724-0.(The book Marketing of Cultural Heritage and Art. Practical Art Marketing. is available in Czech only)
© Radka Johnova, 2015