Transcript Document
Marketing of Cultural Heritage Radka Johnová, PhD. [email protected] Marketing helps to explain 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 Product Price Place Promotion 4Cs (or Cs) Customer / Consumer Convenience Cost Channels Communication Competition Cooperation Context Company skills Collaborators Concepts The production concept - products available and inexpensive The product concept - quality, performance, innovations The selling concept - aggressive selling, promotion effort - for unsought goods, in the non-profit area by fund-raisers The marketing concept - business philosophy The holistic concept Holistic Marketing Concept Relationship marketing Integrated marketing Internal marketing Social responsibility marketing Customers Visitors, Audiences Mission vs. Conflict of Interests Collect objects Preserve objects Interpret objects Show objects Educate people Inspire people to support museum Objectives of Museums Attracting Building Retaining an audience Audiences, Constituencies Visitors Directors Patrons Donors Members Governmental constituencies Corporate and business support constituencies Needs Wants Demands Stated Real Unstated Delight Secret Types of Museum-Going Experiences Recreation Sociability Learning Experience Aesthetic Experience Celebrative Experience Enchanting Experience 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 Frequent Visitors Value most highly three attributes: The opportunity to learn To undertake new experiences To do something worthwhile in their leisure time The Occasional Visitors Seek after active participation social interaction entertaining experiences relaxing experiences comfortable settings interaction with other people The Nonparticipants tend to value being together with other people engaging in high levels of activity feeling comfortable in their surroundings Visitors Community residents repeat Tourists visitors 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 Consumer Behavior Influence Marketing stimuli Other stimuli (external) Cultural factors Social factors Personal factors Psychological factors Social Factors Reference groups Membership groups Aspirational groups Dissociative groups Opinion leader Competition Competition Desire Generic Form Enterprise Competition Stay-at-home behavior Free-time activities Cultural and educational activities Other museums Benefits, Attractions, and Experiences In-house concerts Theatrical performances Poetry readings Lectures by famous personalities Continuing education Study tours Book signings Food-tasting events Social receptions Environmental Analysis Internal environment Market environment Visitors and members Community residents Stakeholders, collectors and patrons Media Regulatory environment Competitive environment Macroenvironment Attributes that influence leisure choices Being with people, or having social interaction Doing something worthwhile Feeling comfortable and at ease in one's surroundings Having a challenge of new experiences Having an opportunity to learn Participating actively Market Segmentation Targeting and Positioning Segment Group big enough Clearly defined 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 Psychographic Segmentation Social class Lifestyle Personality characteristics Behavioral Segmentation Occasion Benefits sought User status Loyalty status Stage of adopter readiness Attitude Organizational Segmentation Foundations Government agencies Corporations Company Segmentation Size Location Product lines Resources Personal variables Owners’ personal preferences Human relations Requirements for Effective Segmentation Measurability Substantiality (large enough to be worth attracting) Accessibility Positioning Strategies Attribute positioning Benefit positioning User positioning Product Developing Attractive Offerings Product Goods Services Events Experiences Persons Organizations Places Building Information Ideas Demarketing Museum's Offerings Exterior and interior architecture Objects, collections, exhibitions Interpretive materials such as labels, texts, and catalogues Museum programs such as lectures, performances, and social events Museum services, such as reception and orientation, food service, shopping, and seating Organization of the visitor's time, activity, and experience Organizing a visitor's time Welcome Orientation Services that will facilitate the museum-going experience Keep the visitor from being bored Offer a friendly and comfortable setting Maintain a clean environment Watch over the visitor Undertake extensive research Be informed about a visitor's expectations, needs, and preferences. The museum-going experience includes Make a decision Leaving home Driving/transport to the museum Parking/walking, being greeted at the entrance The visit itself Refreshment, lunch Souvenirs The return home Collections and Exhibitions Encyclopedic collections Specialized collections Structuring exhibitions with themes contexts points of view Remember the Audience Exhibitions don't tell, they show Exhibitions are provocative, not comprehensive A good question is better than a declaration Interaction, unexpected connections, surprises, humor Match media with message Exhibitions should not remain unchanged rotate exhibitions modify exhibitions refresh exhibits regularly plan new exhibits upgrade existing ones Programs Programs Musical Theatrical Film Lectures Classes Education classes Workshops Tours Events Events and happenings Social Recreational Celebratory Holiday and seasonal events Opening-night events Social gatherings Developing New Offerings Upgrading existing exhibitions and programs New forms of exhibitions and programs Services Orientation and way finding information Places to sit and relax Food services Shopping in gift shops Restrooms / toilets Facilities to change infant's and children's clothes Water fountains Lost-and-found Main Characteristics of Services Intangibility Inseparability Variability Perishability Specific Museum Services Visitor orientation and information service Seating and relaxation spaces Courses and research services Food service Purchasable Products Souvenirs Books Art reproductions and prints, posters Clothing with the museum's name or logo Museum pamphlets and guides Jewelry Children's games Art catalogues Rocks and minerals Science learning games Purchasable Services Guided tours In foreign languages Commercial services Expert evidence by authorized experts Rental of facilities 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 Ways to Distribute a Museum’s Offerings Off-site distribution Reciprocal memberships Curators offer lectures Museums can have branches Publish guides to museums and cultural institutions City Culture Card Partnerships with hotels, restaurants, airlines, public transport organizations On the Web 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 Key Questions What are the goals of outreach and distribution? What are the target audiences for outreach and distribution? What types of distribution (or channels) are most appropriate to the goals and the target audiences? How well are the distributed offerings working? Whom are they reaching? How is effectiveness measured? What are the relative costs and benefits of several distributional methods? Major Distribution Channels The main facility, building, place Expositions Branch museums Traveling exhibitions and loans Off-site programs Publications Electronic distribution The Main Facility Accessibility Attractiveness Atmosphere Building External factors Internal factors Architecture Entranceways Features Corridors Surroundings Stairs Physical Physical accessibility accessibility Galleries and other display spaces Storage Museum's Interior Design Two basic views: Secular church Inviting Informal appearance Functional User-friendly design Old-fashioned institutions Modern facilities Lighting Ventilation Wayfinding Functionality Access for handicapped individuals Options for Interior Show more of its collections Fewer paintings commands greater attention Benches in every gallery Leave visitors standing Silent exhibits or noisy exhibits Fill interior with neon lights Stimulating graphics Create multiple theaterlike spaces for demonstrating science Atmosphere Sensory Auditory Visual visitor orientation and way finding color-coded directional signs computer screens orientation galleries electronic aids that print out customized maps Traveling Exhibitions and Loans Growing visibility of museums Reduce storage costs Reciprocity New offerings Sponsors Press attention Financing Museums have to cover the cost of loans shipping conservation exhibit costs costs of technical assistance sharing of curatorial expertise ensure the care of objects Museum Without Walls No building of its own No permanent collection Organize exhibitions across the city, at places ranging from schools libraries community centers to corporate headquarters and municipal buildings Special Places Train (Artrain) Bus (Bibliobus) Ship Airplain Subway, underground Open space Off-site Programs Distributing Materials to other locations Loans and exhibitions Lectures by visiting curators Workshops for educators Technical and consulting services Instructional materials to schools Off-site museum stores Publications Books describing a museum's history and illustrating its collections and departments Books, pamphlets, and catalogues on special exhibits Travelers guides Card and board games based on the museum's collection Members' newsletter A magazine or journal Children's guides to museums Annual reports, distributed to sponsors and donors Catalogues Electronic Distribution Up-to-date information Cyberspace visitors Available via the Internet Digital visits to exhibitions Audio-assisted guides to Internet visitors 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 Experience far away from the traditional museum-going E-shop Advantages The cost effectiveness Web sites provide feedback Museum managers can learn how many "hits" the site has had which parts of the site command the most attention, how long visitors stay at the site, and Museums should be able to finance their Web sites by advertising and finding sponsors Price Setting Pricing and RevenueBuilding Strategies Admission Fees Remain free to the public Request a donation at the door Charge admission Setting prices for other services Pricing Pricing admission 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 Setting Admission Fees Charge the same price to every visitor Charge different prices to different classes of visitors (multiple pricing, discriminatory pricing) Establish a membership program Request voluntary contributions Post suggested admission prices or donation levels Charge a price, but establish free days or blocks of time Charge different rates for different seasons Regularly Occasionally 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 Distinction between: Nonintenders Nonattenders – pricing is not the central issue Intender-rejecters – as a result of pricing policy Barriers to Visitation besides Admission Fees Traffic conditions and parking Distance Long line Hiring a babysitter Paying admission fees for children Physical barriers 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 Objects Loaned to Other Museums Loans involve expenditures staff time costs of packing, shipping, and insurance Art museums do not charge lending fees Charge lending fees to cover in-house costs to discourage the frequency of loan requests Pricing Special Exhibitions Expense often establish a special admission fee Balance not discourage citizens of limited means Events Events present good opportunities for earning additional income Opening night receptions and dinners Social gatherings for young professionals Anniversary parties Celebrity receptions Seasonal events Themed events Musical and theatrical events Holiday events Pricing Special Events Good opportunity for earning additional income These prices cover the cost of keeping the hiring staff purchasing museum open and serving food Expenses amount to half of the price charged It would take a lot of visitor admission fees to equal the level of revenue arising from a special event Special Social Events Special social events do not interfere with customary museum operations and hours Participants typically represent a segment different from the regular museum-going visitor. NOTICE Events show diminishing returns Museum's facilities experience excessive wear-and-tear Membership Programs Purposes Actively attending the museum Supporting the museum Provide an independent revenue stream Pricing Membership Programs 1. 2. 3. Standard membership levels Single memberships Family memberships 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 Gift Shops Near museum entrances Prominent locations Expanding in size Gift Shops - Special Market for Souvenirs Books Gifts; glassware, tableware, clothes Art Educational games Reproductions of museum objects Pricing Gift Shop Items Items priced on the high side Items priced at the level of museum-goers' expectations Items also found in department stores Another pricing principle - offering a discount to museum members Pricing Rental of Museum Facilities Facilities are attractive to a variety of groups and organizations Receptions and corporate dinners Corporations pay a premium price to host a social or business event Standard markup over the actual cost for local government social event Not to rent facilities out too frequently (Scarce goods) Pricing of Donor Support Raise money from Individuals Foundations Corporations Government agencies (Government and EU grant proposals) Donor Benefits Names on individual or group plaques Names as sponsors of special events or as patrons Names of specific museum galleries Names on galleries for a limited period or permanently Pricing donations and gifts from individuals and companies on principles of segmentation, positioning, and tailoring incentives to donations. Marketing Communication Promotion Communicating and Promoting Image and brand building Advertising Public relations Sales promotion Direct marketing Events & experiences E-marketing Participants Visitors and non-visitors Employees State and local governments Artists Professionals Critics Journalists Sponsors, donators Questions Economics What How For whom Marketing Why Who are customers When What price Promotion / Communication How to find customers How customers will find us Image Building and Brand Identity Attracts attention Builds familiarity and trust Conveys a promise Conveys expectation of benefit Attracts people to the museum Stages and Objectives Awareness Knowledge Liking Preference Intention Purchase Designing the Message AIDA Capture attention Hold interest Arouse desire Elicit action Advertising Budget Objective-and-task approach Affordable method Percentage-of-sales method Competitive-parity method Choosing the Execution Style Slice of life Lifestyle Fantasy Mood or image Evidence of expertise Testimonial Public Relations Unpaid promotion ??? The 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 PR Categories Image PR Routine PR Crisis PR Tools of PR - Events Events are planned happenings that aim to communicate or deliver something to target audiences Press conferences Grand openings Public tours Sponsor 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 Sales Promotion Temporary price reductions Admission free Late evening hours Sponsoring Attracting Resources Membership Programs High actives Moderate actives Inactives Membership Benefits Free admissions Discounts Conveniences Social events Education Information Recognition Gifts Attracting Members Mass marketing approach Segmenting and targeting approach Attracting and Motivating Donors Stages of Fundraising: Begging Collections Campaigning Development 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 Sponsoring is a relationship between equal partners sponsor and sponsored both of them are seeking to gain an advantage is not a donation Sponsor is seeking Image Publicity Contacts Sponsored is seeking Money Goods Services Sponsored organization offers Image Product Audience (customers) Publicity Triangle Sponsor Sponsored Media Can be sponsored: Person (artists) Group, team Organization Exhibition, program Event Sponsoring Targets Familiarity Favorable attitude Image Goodwill Breaking through communication barrier Motivation of employees Target Groups Consumers Governments and authorities Employees Media Geographical Target World Country Region Local Conditions of Concept Credibility Uniqueness Publicity Ethics Types of Sponsoring One-time Long-time Money Barter Investments Co-sponsoring Exclusive sponsoring Name holders Sponsor Chooses One or more projects Target groups Number of addressed Visibility in media Methods of presentation Breaking through communication barrier Pricing Sponsoring Unimportant cost Assets for sponsor Publicity and its effectiveness Informal contacts Marketing Strategies Analyses, Planning Strategic Planning The strategic market planning process (SMPP) allows museums to shape, plan, and implement their missions, offerings, and the markets to be served. SWOT Analysis SWOT Analysis Internal Resources Analysis Strengths Weaknesses External Resources Analysis Opportunity analysis Threat analysis Environmental Analysis Internal environment Market environment Regulatory environment Competitive environment Macroenvironment Competitive Environment Desire competitors Generic competitors Form competitors Enterprise competitors O-T Market Environment Museum visitors Members Community residents Stakeholders Volunteers and activists Donors Media Internal Resources Analysis Strengths Weaknesses S-W Programs Museum reputation Core product quality (exhibits) Interpretative quality Orientation quality Volunteer services quality New exhibit development Audience development Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program quality Marketing Image effectiveness Public perceptions of accessibility Promotion effectiveness Pricing effectiveness Product mix Finance Cost/availability of capital Cash flow Financial stability Fundraising effectiveness Government support Earned income support Corporate support Individual giving Organization Visionary, capable leadership Dedication of employees Entrepreneurial orientation Innovativeness Staff responsiveness to public service, educational outreach Flexibility and responsiveness Offerings ► Existing Modified New 1. Market penetration 4. Modification for existing markets 7. Product innovation Markets ▼ Existing Geographical 2. 5. Geographical Modification expansion for dispersed markets 8. Geographical innovation New 9. Total innovation 3. New markets 6. Modification for new markets Marketing Plan Structure Introduction Executive summary Main goals and recommendations Current marketing situation Problems to solve Objectives Analyses SWOT Customers Competition Marketing strategy Budget Controls Implementation Conclusion Marketing strategy Product Price Place Promotion Advertising Sales promotion Public relations Personal selling Direct marketing Event marketing E-marketing 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 Rotate, modify exhibitions Refresh and plan new exhibits Upgrade existing ones A good question is better than a declaration Interaction, unexpected connections, surprises, humor 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 More detailed information can be found on the Internet: http://info.sks.cz/users/jo/ For English click to: ARTMARKETING_Presentation or in the book: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, a.s., 2008. 288 s. ISBN 978-80-247-2724-0. (The book is available in Czech only) © Radka Johnova, 2011