marketing of cultural heritage radka johnová, phd
DESCRIPTION
MARKETING TOOLS - 4Ps Product Price Place PromotionTRANSCRIPT
Marketing of Cultural Heritage
Radka Johnová, [email protected]
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
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 experiencesTo do something worthwhile in their
leisure time
The Occasional Visitors Seek after
active participation social interactionentertaining experiences relaxing experiences comfortable settings interaction with other people
The Nonparticipants tend to value
being together with other peopleengaging in high levels of activity feeling comfortable in their surroundings
Visitors Community residents
repeat visitors Tourists
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 factorsSocial factorsPersonal factorsPsychological 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 residentsStakeholders, 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 preferencesHuman 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
themescontextspoints 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 InseparabilityVariabilityPerishability
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 expertsRental 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
Architecture Features Surroundings Physical accessibility
Internal factors Entranceways Corridors Stairs Physical accessibility Galleries and other
display spaces Storage
Museum's Interior DesignTwo basic views:
Secular church Inviting Informal
appearance Functional User-friendly
design
Old-fashioned institutionsModern 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 shippingconservationexhibit costscosts of technical assistancesharing of curatorial expertiseensure 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 curatorsWorkshops for educatorsTechnical 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 Revenue-Building 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 dinnersSocial gatherings for young professionalsAnniversary partiesCelebrity receptionsSeasonal 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 museum open hiring staff purchasing 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 museumProvide an independent revenue stream
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
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 MessageAIDA 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 audiencesPress conferencesGrand openings 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
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-TMarket 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
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
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_Presentationor 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