Marketing of Cultural Heritage 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 Company skills Convenience Channels Collaborators Cooperation Competition Communication Context Cost

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

Audiences Categories Emotional ("feeling comfortable") Rational ("having an opportunity to learn") Sensory ("having a challenge of new experiences")

Types of Museum-Going Experiences Recreation Sociability Learning Experience Aesthetic Experience Celebrative Experience Enchanting Experience

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 visitors Tourists

Spend more money Purchase gifts Are first-time visitors Plan their destination Seek particular kinds of experiences Have high expectations Are attracted to so-called blockbuster exhibitions

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

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 residents  Stakeholders, 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 preferences  Human 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 Places Organizations Information Ideas Building 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 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  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 Inseparability Variability Perishability

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 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 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 Design Two basic views: Secular church Inviting Informal appearance Functional User-friendly design

Old-fashioned institutions Modern 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  shipping  conservation  exhibit costs  costs of technical assistance  sharing of curatorial expertise  ensure 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 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 Cyberspace visitors Available via the Internet Digital visits to exhibitions and views of objects in the collections Audio-assisted guides to Internet visitors Real-time discussions with curators Setting up a "chat room" to communicate with other members on-line An excellent response to followers who live at a distance from the museum even across the globe, who want to maintain contact with the museum The museum experience far away from the traditional museum-going Offers of special merchandise that can be purchased at the Web site

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 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 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 museum  Provide 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 Message AIDA 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 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 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

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-T Market 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 ► ExistingModifiedNew Markets ▼ Existing1. Market penetration 4. Modification for existing markets 7. Product innovation Geographical2. Geographical expansion 5. Modification for dispersed markets 8. Geographical innovation New3. 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: 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, a.s., s. ISBN (The book is available in Czech only)