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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
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
Customers
Visitors, Audiences
Objectives of Museums
Attracting
Building
Retaining
an audience
Audiences, Constituencies
Visitors Directors Patrons Donors Members Governmental constituencies Corporate and business support constituencies
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
opportunity to learn To undertake new experiences To do something worthwhile in their leisure time
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
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
Cultural
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
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
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
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
Positioning Strategies
Attribute positioning Benefit positioning User positioning
Product
Developing Attractive Offerings
Product
Goods Services Events Experiences Persons Organizations
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
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.
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
of view
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
exhibitions modify exhibitions refresh exhibits regularly plan new exhibits upgrade existing ones
Programs
Programs
Musical Theatrical Film
Lectures Classes
Education
classes Workshops
Tours
Events
Celebratory
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
Variability
Perishability
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 Museums Offerings and Services
Physical accessibility Time accessibility Attractiveness Atmosphere Interior and equipment Architecture Features Surroundings Internal factors
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
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?
Building
External factors
Architecture Features Surroundings Physical
Internal factors
Entranceways Corridors Stairs Physical
accessibility
Secular church
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
Financing
conservation
exhibit
costs costs of technical assistance sharing of curatorial expertise ensure the care of objects
No building of its own No permanent collection Organize exhibitions across the city, at places ranging from
schools libraries community
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
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
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
to
Events
Good opportunity for earning additional income These prices cover the cost of
keeping
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
Membership Programs
Purposes
Actively
attending the museum Supporting the museum Provide an independent revenue stream
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
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
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
Advertising Budget
Objective-and-task approach Affordable method Percentage-of-sales method Competitive-parity method
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
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
of Fundraising:
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
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
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
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
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
S-W
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
Markets Existing
Existing
1. Market penetration
Modified
4. Modification for existing markets
New
7. Product innovation
8. Geographical innovation
New
3. New markets
9. Total innovation
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
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.
More detailed information can be found on the Internet: For English click to:
http://info.sks.cz/users/jo/
ARTMARKETING_Presentation
or in the book: JOHNOV, Radka. Marketing kulturnho ddictv a umn. 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)