Entepreneurship Conservatorium Utrecht 10/11 Meeting 2: Strategy, SWOT and consumer behavior Volgende week read up to page 96, make worksheet 2,3,4

Planning Situation analyse Strategic aims and objectives Action plan Where are we now? Where do we want to go? How do we get there? What do we do if something happens? How do we measure succes? How long will it take? Situation analyse Strategic aims and objectives Action plan Contingency plans Monitoring and evaluation Timeframe for achieving objects Let´s recapitulate from last week: How does a marketingplan look like

Step 2: Analysis Micro, (Meso) Macro environment Micro-environment: Everything within your organisation, what you are able to influence. Meso-environment: your direct environment, customers, suppliers etc. Very little influence possible Macro-environment “the world”: no influence: DEPEST: Demografics, Economics, Politics, Ecology, Social/juridical, Technology

External environment What are the most important trends in: Demografics Economics Politics Ecology Social/Juridical Technologics How does this influence your situation? Where do you find information about your environment? And if you consider these trends, are they a threat or an opportunity? Demographics: older people, more foreigners Economics: cut downs, not such a good economy Politics: right wing government, local: chaotic, but ok for culture Ecology: Schiphol, air pollution, sound pollution Social/juridical: self- employed have to pay less tax, BV even less, less Bijstand, les WAO, working longer. Artists rights, copy protection etc. Technological: internet, new media, Where do you find information: Library, CBS: website Branche organisations like KNTV/NTB/kamervraag Newspaper

The Market and the Competition Different levels of competition Need competition Product competition Brand competition What kind of market are you in? What do you consider as competition for your product? How do you deal with it? Why bother about the competiton? Talk about worksheet Nr 1: What kind of market are you in? Refer to the exercise: describe your ideal customer Explain the procedure of reaching your customers: Segmenting Targetting Positioning What kind of competition can you think of considering your product?

Micro environment Market position Organisation Procedures Finance Systems Market share target group Marketing policy Price Promotion Personnel-management Organisation-structure Culture Production policy Assortment Stock Distribution Financial policies Balance Index numbers ICT What About Musical Environment ? If you look at this scheme from your own point of view, what can you tell about your own business Marktaandeel: hoe zit de markt in elkaar: ben jij een van de vele kleine spelers, of is er bijvoorbeeld een organisatie die een aantal concurrenten in zich heeft, en daardoor veel meer naamsbekendheid heeft (muziekschool, impresariaat) Doelgroep: op wie richt je je eigenlijk: voor welke mensen maak je je muziek, of aan wie geef je les. Belangrijk om te weten hoe groot is je doelgroep, en hoeveel van die doelgroep weet je te bereiken. Prijs: Hoe is je prijsstelling: premium price of budget price Promotie: wat doe je eraan om je potentiële klanten te laten weten wat je voor hen kan doen. Organisatie: Hoe zit je organisatie in elkaar, flexibiliteit, betrouwbaarheid, met hoeveel mensen doe je het werk enz Procedures: Hoe behandel je een vraag om informatie, hoe handel je rekeningen af etc. Financieel: Hoe is je financiele situatie: zit je krap bij kas, heb je geld genoeg: ben je liquide, heb je reserves of noodoplossingen Systems: Heb je bepaalde dingen geautomatiseerd: je boekhouding, je database, je administratie Behalve de 4 p’s zitten hier nog een aantal andere dingen in waar je naar kijkt. Je kunt ipv de 4 p’s ook de 3 erren beschouwen: Ruil, Reputatie en Relatie

Micro environment What makes a musician succesfull? Benchmarking Best Practice Long Tail Theory Lower search and lower sales costs mean more business in niche-sellings (long tail) Superstar Theory More income means choice for better products Layered Siefe, influenced by non musical factors Famous artists are better because it’s easier to talk about: frame of reference. Referenties over superstar theory opzoeken Stukje over de Long Tail van Chris Andersson vertellen?

SWOT analysis Strengths: What are the things in which you excel Weaknesses: What are the things that you could do better Opportunities: What happens around you that could be of interest for you Threats: What happens around you that could be hurtfull for you

Alternative for SWOT: Impact analysis: Development Quantify (what is the form of the trend, quantify, and what will happen coming 3 years) Impact (what is the influence in cost/turnover/profit) Action (yes or no, is yes who and how) New subsidy system Grey wave (more old people) More inhabitants Economic crisis

Understand your customer: How does Mr Dutch Average spend his time? www.cbs.nl Spare time http://statline.cbs.nl/StatWeb/publication/?VW=T&DM=SLNL&PA =37881&D1=29-39&D2=a&D3=a&D4=(l-0)-l&HD=080910- 0950&HDR=T&STB=G3,G2,G1

Target group segmentation Who is your audience? What criteria do you use to divide into target groups? Which target groups do you choose? Demographics Geografic Needs/behavioral New Users?

Maslows Hierarchy of Needs Status, prestige, position Self-fulfillment Self-actualisation needs Companionship. family Esteem needs Warmth, safety, security Social needs Safety needs Fysiological needs Food, water, shelter

Buying behaviour: Classical 5 (6) phase model Identify a need, problem recognition, (2)want Gather information Asses options and alternatives Decide and act, purchase Use, review overall satisfaction

Other models How do you buy toiletpaper? How do you buy a new pair of trousers? How do you buy new sheetmusic? How do you buy a set of strings?

Koopgedrag Extensive problem solving behaviour Specialty goods (car) Limited problem solving behaviour Shopping goods (clothing) Routine problem solving behaviour Convenience goods (food, toilet paper) Unsought goods Things you don’t know or don’t want!

AIDA attention interest desire action (evaluation) Is ook klassiek model, wat aansluit op het 5 fasenmodel: maar dan vanuit de aanbieder bekeken. Dit is een communicatiemodel wat rekening houd met de verschillende fasen in het keuzeproces. Nog even over die computer: stel je moet die computer verkopen: hoe kun je dan de verschillende fasen beschrijven?

Sensitivity for Promotion How much can you influence somebody with communication? Depends on: Sort of product How new is the product How much info is around already Can you make someone who hates classical music buy a Beethoven CD? Can you make someone who doesn’t know Beethoven buy this record? Can you make someone who loves Mozart buy this record? Can you make someone who loves Beethoven buy this record?

Reference groups or social influence Imagine going to a concert: how much of this decision is influenced by others? Do you go alone to a concert? What about buying a CD? What about music lessons? Think a moment about this when you want to sell your tickets/lessons/music!

Perception Selective attention Selective distortion: You notice the things you are familiar with easier. Selective distortion: you see the things the way you want them to see Selective retention You remember stuff that fits with your believes and other knowledge much easier Cognitive Dissonance You try to avoid or solve conflicting idea’s and believes by transforming the truth

Ganzeboom: James Last Classical music complexity Conventional, Non complex Conventional, complex conventionality Unconventional, non-complex Unconventional, complex In Nederland is er in de culturele sector onderzoek gedaan naar de hoe je indelingen kunt maken voor culturele producten. Ganzeboom gaat er van uit dat mensen hun keuze maken aan de hand van complexiteit en conventionaliteit. Volgens Ganzeboom kiezen mensen aan de hand van de 4 kwadranten. Hij gaat er vanuit dat mensen die kiezen voor Theater van de Lach ook naar een concert van De Zangeres zonder Naam gaan, maar niet naar moderne dans. Zo zou iedereen in een kwadrant blijven qua keuze. Is gebaseerd op de Wundt curve. De theorie is in Nederland vrij wijdverspreid: Er zijn theaters die op die basis hun marketing hebben gebaseerd. Modern dance popmusic