Marketing of Cultural Heritage Art Marketing Radka Johnová, Ph.D.

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

Cultural Heritage, Tourist Attractions Impact on the state economy Visitors Taxis Income for the city

Marketing tools - 4Ps + 4Cs (or 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 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  Integrated marketing  Relationship marketing  Internal marketing  Social responsibility marketing

Customers Visitors, Audiences

Audiences, Constituencies Visitors Directors Patrons Donors Members Governmental constituencies Corporate and business support constituencies

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

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)  Cultural factors  Personal factors  Psychological factors  Social factors Social factors Reference groups  Membership groups  Aspirational groups Dissociative groups Opinion leader

Competition Cooperation

Competition Desire Generic Form Enterprise Stay-at-home behavior Free-time activities Cultural and educational activities 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

Geographical Segmentation Local visitors Short-distance visitors Long-distance domestic visitors European visitors Overseas visitors

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 Effects affect 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 Interaction, unexpected connections, surprises, humor address people

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 experts  Rental of facilities  Social and business events

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 The cost effectiveness Web sites provide feedback Experience far away from the traditional museum-going E-shop

Price Setting Pricing and Revenue- Building 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 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 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)

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

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

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 Viral marketing Guerilla marketing

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  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 Familiarity Favorable attitude Image Goodwill Breaking through communication barrier Motivation of employees Impress partners Conditions of Concept Credibility Uniqueness Publicity

Sponsoring Targets 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 Plan Structure Introduction  Executive summary  Main goals and recommendations Current marketing situation  Problems to solve  Objectives Analyses, marketing audit  SWOT  Customers  Competition Marketing strategy; mix 4P Budget Controls Implementation Conclusion Marketing strategy  Product  Price  Place  Promotion Public relations Advertising Sales promotion Personal selling Direct marketing Event marketing E-marketing Viral marketing Guerilla 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 ΣΑΣ ΕΥΧΑΡΙΣΤΏ ΓΙΑ ΤΗΝ ΠΡΟΣΟΧΉ ΣΑΣ More detailed information can be found on the Internet: For English click to: ENGLISH PAGES - ART MARKETING References: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, Inc p. ISBN (The book Marketing of Cultural Heritage and Art. Practical Art Marketing. is available in Czech only) © Radka Johnova, 2013