Transcript Price

Marketing of
Cultural Heritage
Art Marketing
Radka Johnová
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
Integrated marketing
 Relationship marketing
 Internal marketing
 Social responsibility marketing

Customers
Visitors, Audiences
Cultural Heritage, Tourist Attractions
Impact on the state economy
 Visitors
 Taxis
 Income for the city

Mission vs. Conflict of Interests
Collect objects
 Preserve objects
 Interpret objects
 Show objects
 Educate people
 Inspire people to support museum

Audiences, Constituencies







Visitors
Directors
Patrons
Donors
Members
Governmental constituencies
Corporate and business support constituencies
Objectives of Museums
 Attracting
 Building
 Retaining
an audience
Types of Museum-Going
Experiences
Recreation
 Sociability
 Learning Experience
 Aesthetic Experience
 Celebrative Experience
 Enchanting Experience

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
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
Typology of Visitors










Professionals
Hobbyists
Explorers
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
 Social factors
 Personal factors
 Psychological factors
Social Factors

Reference groups
 Membership
groups
 Aspirational groups

Dissociative groups

Opinion leader
Competition
Cooperation
Competition
Stay-at-home behavior
 Free-time activities
 Cultural and educational activities
 Other museums

Competition
Desire
 Generic
 Form
 Enterprise

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

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

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
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
Programs

Programs
 Musical
 Theatrical
 Film


Lectures
Classes
 Education
classes
 Workshops

Tours
Events
Opening-night events
 Events and happenings

 Social
 Recreational
 Celebratory
Holiday and seasonal events
 Social gatherings

Developing New Offerings
Upgrading existing exhibitions and
programs
 New forms of exhibitions and programs

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 services
Shopping in gift shops
Cloakroom
Restrooms / toilets
Facilities to change infant's and children's
clothes
Water fountains
Lost-and-found
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









The main facility, building, place, expositions
Traveling exhibitions and loans
Off-site programs. Curators lectures
Reciprocal memberships
Cooperation; City Culture Card
Museums can have branches
Publications and guides to museums
Partnerships with hotels, restaurants, airlines,
public transport organizations
Electronic distribution
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
Traveling Exhibitions and Loans
Growing visibility of museums
 Reduce storage costs
 Reciprocity
 New offerings
 Sponsors
 Press attention

Special Places
Train (Artrain)
 Bus
(Bibliobus)
 Ship
 Airplain
 Subway, underground
 Open space
 Museum without walls

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

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 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
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

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

Advertising
Designing the Message
AIDA
Capture attention
 Hold interest
 Arouse desire
 Elicit action

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

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 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
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:
ENGLISH PAGES - ART MARKETING
or in the book: 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, 2011