Transcript Marketing

Art Marketing
Marketing of
Cultural Heritage
Radka Johnová, Ph.D.
[email protected]
Cultural Heritage, Tourist Attractions
Impact on the state economy
 Visitors
 Taxis
 Income for the city
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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
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Marketing tools – 4 Ps + Cs
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Product
Price
Place
Promotion
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People
Packaging
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Customer / Consumer
Convenience
Cost
Channels
Communication
Competition
Cooperation
Context
Company skills
Collaborators
Concepts
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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 Challenges
Visitors, Audience Building
Mission
Collect objects
 Preserve objects
 Research objects
 Interpret objects
 Show objects
 Educate people
 Inspire people to support museum
Objectives of Museums and Galleries
 Attracting
 Building
 Retaining an audience
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Audiences, Constituencies
vs. Conflict of Interests
Visitors
 Directors
 Patrons
 Donors
 Members
 Governmental constituencies
 Corporate and business support
constituencies
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Attributes that influence leisure choices
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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
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Emotional ("feeling
comfortable")
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Rational ("having an
opportunity to learn")
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Sensory ("having a
challenge of new
experiences")
Audience Development
Visitorship level
 Visitorship diversity
 Repeat visitorship
 Visitor service quality
 Membership program quality
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Audience Building
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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
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Community residents
 Repeat
visitors
 Expect temporary exhibitions and programs
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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
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Professionals
Hobbyists
Explorers – curiosity driven
Facilitators
Sheep (Black sheep, Naughty child)
Experience seekers
Spiritual pilgrims (Numen seekers)
Consumers
Reviewers
Snobs
Consumer Behavior Influence
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Marketing stimuli
Other stimuli
(external)
Social factors
 Reference groups
 Membership
groups
 Aspirational groups
 Cultural
factors
 Personal factors
 Psychological factors
 Social factors
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Dissociative groups
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Opinion leader
Competition
Cooperation
Competition
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Desire
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Free-time activities
 Stay-at-home
behavior
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Generic
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Form
Cultural and educational
activities
 Art
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Enterprise
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 Book,
lecture, workshop, gallery,
Internet
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
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 Mass
marketing
 Segmentation marketing
 Niche marketing
 Segment-of-one marketing
Segmentation
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Geographical
Segmentation
Local visitors
Short-distance visitors
Long-distance
domestic visitors
European visitors
Overseas visitors
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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
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Product
Developing Attractive
Offerings
Product
Goods
 Services
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 Intangibility
 Inseparability
 Variability
 Perishability
Events
 Experiences
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Organizations
 Places
 Building
 Persons
 Information
 Ideas
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Demarketing
Museum's Offerings
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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
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Exhibitions don't tell, they show
Exhibitions are provocative, not comprehensive
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
Effects affect
Address people with interaction, unexpected
connections, surprises, humor
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
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 Expert evidence by authorized
 Rental of facilities
 Social and business events
experts
Place
Distributing the Museum’s
Offerings and Services
Distribution channels depends on
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Physical accessibility
Time accessibility
Attractiveness
Atmosphere
Interior and equipment
Architecture
Features
Surroundings
Internal factors
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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
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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
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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 museumgoing
E-shop
Price
Setting Pricing and RevenueBuilding Strategies
Pricing
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Pricing admission
 Remain
free to the public
 Request a donation at the door
 Charge admission
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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
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Objectives for Setting Admission Fees
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Charging to maximize the number of visitors
Charging the socially justified price
Charging what other leisure activities charge
Charging what comparable museums charge
Charging a single, uniform price
Charging to maximize cost recovery
Surplus building
Charging to maximize revenue
Pricing Extras
Pricing 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
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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
Marketing
Communication
Promotion
Communicating and Promoting
How to find customers
How customers will find us
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Image and brand
building
Public relations
Advertising
Sales promotion
Direct marketing
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Events & experiences
E-marketing
Social network
Viral marketing
Guerilla marketing
Product placement
Participants
Visitors and non-visitors
 Employees
 State and local governments
 Artists
 Professionals
 Critics
 Journalists
 Sponsors, donors
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Image Building and Brand Identity
Attracts attention
 Builds familiarity and trust
 Conveys a promise
 Conveys expectation of benefit
 Attracts people to the museum
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Advertising - Designing the Message
AIDA
Capture attention
 Hold interest
 Arouse desire
 Elicit action
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Public Relations
Unpaid promotion
 Media relations
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
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Tools of PR - Events
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Events are planned happenings that aim to
communicate or deliver something to target
audiences
 Press conferences
 Grand openings (first night performances)
 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
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Advantages of Direct Marketing
Prospect selectivity
 Personalization
 Relationship building
 Timing
 Attention
 Research opportunities
 Target group: members, sponsors
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Sales Promotion
Temporary price reductions
 Admission free
 Late evening hours
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Sponsoring
Attracting Resources
Membership Programs and Benefits
Attracting and Motivating Donors
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Attracting Members
Mass marketing
approach
Segmenting and
targeting approach
 High actives
 Moderate actives
 Inactives
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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
Sponsor
Sponsored
Media
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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
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Sponsored organization
Offers
 Image
 Product
 Audience
(customers)
 Publicity
Is seeking
 Money
 Goods
 Services
Sponsoring Targets (1)
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Familiarity
Conditions of Concept
Favorable attitude
 Credibility
Image
 Uniqueness
Goodwill
 Publicity
Breaking through
communication barrier
Motivation of employees
Impress partners
Sponsoring Targets (2)
Can be sponsored
 Person (artists)
 Group, team
 Organization
 Exhibition, program
 Event
 Archeological
research
Target Groups
 Consumers
 Governments and
authorities
 Employees
 Media
Geographical Target
 World
 Country
 Region
 Local
Types of Sponsoring
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One-time or long-time 
Money or barter
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Investments
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Co-sponsoring
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Exclusive sponsoring 
Name holders
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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
Instructions for Use
Marketing Plan Structure
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 Marketing strategy
Introduction
 Product
 Executive summary
 Price
 Main goals and
 Place
recommendations
Current marketing situation  Promotion
 Public relations
 Problems to solve
 Advertising
 Objectives
 Sales promotion
Analyses, marketing audit
 Personal selling
 SWOT (PEST)
 Direct marketing
 Customers - Segmentation
 Image and brand
 Competition - Cooperation
building
Marketing strategy; mix 4P
 Event marketing
Budget
 E-marketing
Controls
 Social network
Implementation
 Viral marketing
Conclusion
 Guerilla marketing
 Product placement
SWOT Analysis
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Internal Resources Analysis
 Strengths
 Weaknesses
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External Resources Analysis
 Opportunity
analysis
 Threat analysis
Programs
Finance
 Museum reputation
 Cost/availability of capital
 Core product quality (exhibits)
 Cash flow
 Interpretative quality
 Financial stability
 Orientation quality
 Fundraising effectiveness
 Volunteer services quality
 Government support
 New exhibit development
 Earned income support
Audience development
 Corporate support
 Visitorship level
 Individual giving
 Visitorship diversity
 Grants
 Repeat visitorship
Organization
 Visitor service quality
 Visionary, capable leadership
 Membership program quality
 Dedication of employees
Marketing
 Entrepreneurial orientation
 Image effectiveness
 Innovativeness
 Product mix
 Staff responsiveness to public
 Pricing effectiveness
service, educational outreach
 Public perceptions of accessibility
 Flexibility and responsiveness
 Promotion effectiveness
 Image
Market Environment
Museum visitors
 Members
 Community residents
 Stakeholders
 Volunteers and activists
 Donors
 Media
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Analyses
PEST
 Political
 Economic
 Social
 Technological
SLEPT
 Legal
PESTLE
 Environmental
STEEPLE
 Ethics
STEEPLED
 Adding Demographic
factors
DESTEP
 Demographic
 Economic
 Social
 Technological
 Ecological
 Political
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
New
3. New
6.
markets
Modification
for new
markets
8.
Geographical
innovation
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.
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Thank you for your attention
Takk fyrir athyglina
More detailed information can be found on the Internet:
http://info.sks.cz/users/jo/
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For English click to:
ENGLISH PAGES - ART MARKETING
References: 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