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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 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 – 4 Ps + 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 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 Audiences, Constituencies vs. 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) Social factors Reference groups Membership groups Aspirational groups Cultural factors Personal factors Psychological factors Social factors Dissociative groups Opinion leader Competition Cooperation Competition Desire Free-time activities Stay-at-home behavior Generic Form Cultural and educational activities Art Enterprise 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 Mass marketing Segmentation marketing Niche marketing Segment-of-one marketing Segmentation 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 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 Expert evidence by authorized Rental of facilities Social and business events experts 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 museumgoing E-shop Price Setting Pricing and RevenueBuilding 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 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 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 Image and brand building Public relations Advertising Sales promotion Direct marketing 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 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 (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 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 Benefits Attracting and Motivating Donors Attracting Members Mass marketing approach Segmenting and targeting approach High 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 Sponsor Sponsored Media 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 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 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 Instructions for Use Marketing Plan Structure 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 Internal Resources Analysis Strengths Weaknesses 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 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. Thank you for your attention Takk fyrir athyglina More detailed information can be found on the Internet: http://info.sks.cz/users/jo/ 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