Marketing of Cultural Heritage Art Marketing Radka Johnová

Social Definition Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Managerial Definition (American Marketing Association): Marketing (management) is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.

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

Product - Tangible, Intangible Goods Services Events Experiences Persons Places Properties Organizations Information Ideas

Place Time Electronic channels

Price Limiting external factors Economic Legal Social (merit goods) Customer Cost

Promotion PRs  Sponsoring Advertising Sales promotion Direct marketing Events & experiences Guerilla and viral marketing E-promotion

Additional Ps Progress People Perfection Psychology Participation Partnership Potential possibilities Packaging

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

History Ancient markets, medieval age: The seller knew personally his customers. Industrial revolution - mass production - mass communication - printed press and posters. 20th century - radio broadcasting, TV transmission - mass communication by mass media Return to the roots - close to customers - satisfying solutions to their needs

Societal Marketing Concept ´60s creativity ´70s strategic planning ´80s perfection and quality, technology ´90s customer oriented marketing 21st century information society – IMC ´10 holistic concept

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

Needs Wants Demands Stated needs Real needs Unstated needs Delight needs Secret needs

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

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

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

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

Audience Development Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program quality

Visitors Community residents  repeat visitors Tourists

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

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

Environmental Analysis Internal environment Market environment  Visitors and members  Community residents  Stakeholders collectors and patrons  Media Regulatory environment Competitive environment Macroenvironment

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

Marketing Information and Research

Gathering Information a cross between  what information managers think they need  what information they really need  what is economically feasible

Marketing Research Process Defining the problem and the research objectives Developing the research plan Designing the questionnaire Collecting and analyzing the data Preparing and presenting the research report Evaluating and implementing the findings

Main Types of Museum Research Exhibition Evaluation Research  Front-end evaluation  Formative evaluation  Summative evaluation Visitor Studies Development Research Organizational Research

Secondary Data Advantages :  Quick  Cheap  Easy to get Disadvantages:  Inaccurate  Incomplete  (out)dated  Unreliable  Available for all

Can be divided into two groups: Internal  Invoices  Sales figures  Balance sheets  Sales reports  Visitors reports External  Government publications  Statistics  Periodicals  Books  The Internet  Commercial data  Competitors’ annual reports

Primary Data Original information Gathered for the specific purpose Collected in three ways: through  exploratory research  descriptive research  experimental research

Uses of Marketing Research Description Explanation Causation

Exploratory Research Observation Individual in-depth interviews Focus groups

Descriptive Research Surveys Conjoint research Panel studies

Experimental Research The most scientifically valid research Capture cause-and-effect relationships

Semantic Differential

Product Developing Attractive Offerings

Product Goods Services Events Experiences Persons Places Properties 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

Brand

Art of Branding Brand is major enduring asset and a marketing tool  name  term  sign  symbol  design  combination

Brands Identify  Organization  Goods  Services  Seller  Producer

Brands promise to deliver a specific set of Features Benefits Services Warranty of quality Brand is complex symbol Subject od author‘s rights

Levels of meaning Attributes Benefits Values Culture Personality User

Brand equity Amount of power Value in the marketplace  Brands not known by most buyers  High degree of brand awareness  Brand acceptability  Brand preference  Brand loyalty

High brand equity provides a number of competitive advantages: Reduced marketing cost because of consumer brand awareness and loyalty Better position in bargaining with distributors – consumers expect them to carry the brand Charge a higher price – brand higher quality Launch extensions – brand name carries high credibility Defense against price competition

A Brand Name Requires Improving brand awareness Perceived quality Functionality Positive associations Continuous research and development Investments Skillful advertising Excellent trade Consumer service

Branding gives several advantages Easier to process orders Brand name and trademark provide legal protection of unique product features Attract loyal customers Attract profitable set of customers Brand loyalty - protection from competition Helps segment markets Build corporate image But brand ladder replaced by brand parity – many brands are equivalent – consumers are more price sensitive

To brand or not to brand Return to no branding of certain consumer goods Lower price Lower cost (quality ingredients, labeling, packaging, minimal advertising) Standard or lower quality

Types of Brand manufacturer brand = national brand licensed brand distributor brand = reseller, store, house or private brand  large quantity  low cost  more profitable  no need – research development, advertising  simple packaging and labeling  good quality  supermarkets charge a slotting fee for accepting a new brand

Brand Name Decision Individual names Blanket family names Separate family names for all (or group of) products Company trade name combined with individual product names Cobrands

Choose the Right Specific Brand Name Product’s benefits Product qualities Action Color Taste Easy to pronounce Easy to recognize Easy to remember Short names help Should be distinctive Not carry poor meanings in other countries and languages

Name Search Procedures Include Association test – what images come to mind Learning test – how easily is the name pronounced Memory test – how well is the name remembered Preference test – which names are preferred Make sure the chosen name hasn’t already been registered Brand name that will become intimately identified with the product category

Brand Strategy Line extension Brand extension Multibrands New brands Cobrands Brand repositioning

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

Branch museum  Guggenheim Museum Museum complexes  Louvre

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 or 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 How to find customers How customers will find us

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

Image Building and Brand Identity Attracts attention Builds familiarity and trust Conveys a promise Conveys expectation of benefit Attracts people to the museum

Advertising Paid form of nonpersonal presentation and promotion of  products,  services,  ideas,  persons, or  organizations by an identified sponsor.

Advertising can add value Institutional advertising Product advertising Classified advertising Promotional advertising

Advantages High level of control  over the message content  over the choice of the medium  substantial control over the scheduling of the message Allows to repeat a message It lets the receiver compare the messages of various competitors Says something positive about the advertising organization Advertising is expressive, Dramatizes its products through the artful use of print, sound, and color Advertising can reach masses of geographically spread out people at a relatively low cost per exposure

Shortcomings It reaches many people quickly, but it is impersonal. It cannot be as persuasive as a personal communication It reaches far beyond an organization's targeted audiences Advertising carries on only a one-way communication Audience does not feel that it has to pay attention or respond Advertising also can be costly Difficult to assess the actual impact of paid media Feedback is usually delayed Other factors can affect consumer response

Steps of Effective Advertising Program Setting the advertising objectives Deciding on the advertising budget Designing the message Deciding on the media Deciding on media timing Evaluating advertising effectiveness

Setting the Advertising Objectives The target The position Response desired Time horizon

Stages and Objectives Awareness Knowledge Liking Preference Intention Purchase

Advertising Budget Objective-and-task approach Affordable method Percentage-of-sales method Competitive-parity method

Designing the Message AIDA Capture attention Hold interest Arouse desire Elicit action

Rules for Effective Ads Strong Single theme Simple language Leave a picture in the viewer's or listener's mind End dramatically

Formulating the Appeal Appeal Theme Idea Unique selling proposition Capture a person's attention Offer reasons why person should respond Motivate person to respond in desired ways

Formulating the Message What to say (message content) How to say it (message structure) How to say it symbolically and imaginatively (message format) Who should say it (message source)

Appeals Rational (directed at a person's self- interest) Emotional (emphasizing such feelings as desire, nostalgia, or pride) Moral (reinforcing a person's sense of what is right and proper)

Choosing the Execution Style Slice of life Lifestyle Fantasy Mood or image Evidence of expertise Testimonial

Designing Print Ads Logo Picture Headline Copy are important, in that order.

Designing Radio Ads Name Addressing one person alone Only one message Deadline Repeat Ending

Deciding on the Media Choosing media categories  newspapers, television, direct mail, radio, magazines, and outdoor advertising Choosing specific vehicles Scheduling

Media Categories should be examined for their capacity to deliver: Reach is the number of different persons or households exposed to a particular message at least once during a specified time period. Frequency is the number of times within the specified time period that an average person or household is exposed to the message. Impact is the qualitative value of an exposure and the fit with a target audience.

Media Timing Macroscheduling  cyclical  seasonal Microscheduling  Burst advertising  Continuous advertising  Intermittent advertising Flighting Pulsing

Strengths and Weaknesses of Television Strengths High impact Audience selectivity Schedule when needed Fast awareness Sponsorship availability Merchandising possible Weaknesses High production costs Uneven delivery by market Up-front commitments required

Strengths and Weaknesses of Radio Strengths Low cost per contact Cheap transmission Audience selectivity Schedule when needed Length can vary Personalities available Tailor weight to market Address people both nationally and locally Actual Can be changed Weaknesses Nonintrusive medium Audience per spot small No visual impact High total cost for good reach Clutter within spot markets

Strengths and Weaknesses of Magazines Strengths Audience selectivity Editorial association Long life Large audience per insert Excellent color Minimal waste Merchandising possible Weaknesses Long lead time needed Readership accumulates slowly Uneven delivery by market Cost premiums for original or demographic editions

Strengths and Weaknesses of Newspapers Strengths Large audience Immediate reach Short lead time Market flexibility Good upscale coverage Weaknesses Difficult to target narrowly

Strengths and Weaknesses of Posters, Billboards Strengths High reach High frequency of exposure Minimal waste Can localize Immediate registration Flexible scheduling Weaknesses Posters have only local impact

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

Tips for Working with the Media Do advance planning Prioritize the events and issues that best meet the organization's goals. Know the media  read  watch  listen and become familiar with  style  orientation  strengths  limitations

Body Copy Include all the critical information (the who, what, when, where, and why) in the lead or opening paragraph, Then move through the rest in descending levels of importance, Concluding with the least essential points in the shortest paragraphs at the end. This structure is helpful to copyeditors, who, when pressed for space, can simply cut copy from the bottom, assured that the crucial information will remain intact.

Advantages of Direct Marketing Prospect selectivity Personalization Relationship building Timing Attention Research opportunities

Sales Promotion Temporary price reductions Admission free Late evening hours

Creativity Methods

A Technique for Producing Ideas – by James Web Young (1940) Gathering raw materials - the specific and the general Working over the materials in the mind The incubation stage, latency time - subconsciousness is synthesizing the information The birth of the idea The final shaping and development of the idea

Composition Theory by Arthur Koestler Called The Act of Creation (of new ideas) Based on bisociation as an opposite or contrast to (word) association

Lateral Thinking by Edward de Bono Based on horizontal thinking Horizontal thinking should break the firm construction of vertical thinking

Lateral Thinking Vertical thinking classical selective steps continue one after another analytical sequential may use negation logical uses categories and classifications follows the most likely paths, the most probable direction finite process with conclusion Horizontal thinking unconventional creative, generative seeks new ways provocative can make jumps breaks all bans illogical disturbing elements are welcome explores the least likely prefers the most improbable way original ideas never ending process, probabilistic

Synectics - William J. Gordon Program to train creative thinking Takes the idea from one context and place it into another Uses metaphors and analogy Associative Based on metaphor Direct analogy Personal analogy - personified analogy Compressed conflict - collision of contradictions

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.

Marketing takes place when following conditions are met: At least two parties are involved Value to offer the other party Ability to deliver the value Benefit or satisfaction from the exchange Each party is free to accept or reject an offering Appropriate and desirable to deal with the other party

SWOT Analysis

Internal Resources Analysis  Strengths  Weaknesses External Resources Analysis  Opportunity analysis  Threat analysis

Programs Museum reputation Core product quality (exhibits) Interpretative quality Orientation quality Volunteer services quality New exhibit development

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

Environmental Analysis Internal environment Market environment Regulatory environment Competitive environment Macroenvironment

Market Environment Museum visitors Members Community residents Stakeholders Volunteers and activists Donors Media

Competitive Environment Desire competitors Generic competitors Form competitors Enterprise competitors

Macroenvironment Threat analysis Opportunity analysis

Internal Resources Analysis Strengths Weaknesses

SWOT 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

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)