Marketing of Cultural Heritage Art Marketing 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 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 Integrated marketing Relationship marketing Internal marketing Social responsibility marketing

Customers Visitors, Audiences

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

Mission vs. Conflict of Interests Collect objects Preserve objects Interpret objects Show objects Educate people Inspire people to support museum

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

Objectives of Museums Attracting Building Retaining an audience

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

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

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 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

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 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  Social factors  Personal factors  Psychological factors

Social Factors Reference groups  Membership groups  Aspirational groups Dissociative groups Opinion leader

Competition Cooperation

Competition Stay-at-home behavior Free-time activities Cultural and educational activities Other museums

Competition Desire Generic Form Enterprise

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

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

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  themes  contexts  points of view

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

Programs  Musical  Theatrical  Film Lectures Classes  Education classes  Workshops Tours

Events Opening-night events Events and happenings  Social  Recreational  Celebratory Holiday and seasonal events Social gatherings

Developing New Offerings Upgrading existing exhibitions and programs New forms of exhibitions and programs

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 services Shopping in gift shops Cloakroom Restrooms / toilets Facilities to change infant's and children's clothes Water fountains Lost-and-found

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 The main facility, building, place, expositions Traveling exhibitions and loans Off-site programs. Curators lectures Reciprocal memberships Cooperation; City Culture Card Museums can have branches Publications and guides to museums Partnerships with hotels, restaurants, airlines, public transport organizations Electronic distribution

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

Traveling Exhibitions and Loans Growing visibility of museums Reduce storage costs Reciprocity New offerings Sponsors Press attention

Special Places Train (Artrain) Bus (Bibliobus) Ship Airplain Subway, underground Open space Museum without walls

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 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

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 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

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

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

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

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 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

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, Inc p. ISBN (The book Marketing of Cultural Heritage and Art. Practical Art Marketing. is available in Czech only) © Radka Johnova, 2011