Marketing of Cultural HeritageArt MarketingRadka Johnová, Ph.D.johnova@gmail.com

Cultural Heritage, Tourist Attractions

Impact on the state economy Visitors Taxis Income for the city 

Marketing helps toexplain 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 + 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 (library, museum) The product concept - quality, performance,

innovations (gallery, theater) The selling concept - aggressive selling,

promotion effort - for unsought goods, in the non-profit area by fund-raisers, crowdfunding

The marketing concept - business philosophy The holistic concept

Integrated marketing Relationship marketing Internal marketing Social responsibility marketing

Customers

Strategic Museum Challenges, Mission, Visitors, Funding, Audience Building

Mission Collect objects Preserve objects Research objects Interpret objects Show objects Educate people Inspire people to support museumObjectives of Museums Attracting Building Retaining an audience

Audiences, Constituenciesvs. Conflict of Interests Visitors Directors Patrons Donors Members Governmental constituencies Corporate and business support

constituencies

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

Demographic Segmentation Age Sex Family size Family income Education Occupation Religion Race Ethnicity

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 expertsRental of facilitiesSocial 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 Social network, blog… 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 ExtrasPricing 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) Museum's facilities experience excessive wear-and-tear

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 PromotingHow 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 Social network

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 relationsThe 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 audiencesPress conferencesGrand openings (first night performances)Public toursSponsor 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 BenefitsAttracting and Motivating Donors Attracting Members Mass marketing

approach Segmenting and

targeting approachHigh 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 SponsorSponsoredMedia

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 (1)

Familiarity Favorable attitude Image Goodwill Breaking through

communication barrier Motivation of employees Impress partners

Conditions of Concept Credibility Uniqueness Publicity

Sponsoring Targets (2)

Can be sponsoredPerson (artists)Group, teamOrganizationExhibition, programEventArcheological research

Target GroupsConsumersGovernments and authoritiesEmployeesMediaGeographical TargetWorld 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 Strategies

Analyses, Planning

Marketing Plan Structure Introduction

Executive summary Main goals and

recommendations Current marketing situation

Problems to solve Objectives

Analyses, marketing audit SWOT (PEST) Customers - Segmentation Competition - Cooperation

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 Product placement

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 developmentAudience development Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program qualityMarketing Image effectiveness Product mix Pricing effectiveness Public perceptions of accessibility Promotion effectiveness Image

Finance Cost/availability of capital Cash flow Financial stability Fundraising effectiveness Government support Earned income support Corporate support Individual giving Grants Organization Visionary, capable leadership Dedication of employees Entrepreneurial orientation Innovativeness Staff responsiveness to public

service, educational outreach Flexibility and responsiveness

Market Environment

Museum visitors Members Community residents Stakeholders Volunteers and activists Donors Media

AnalysesPEST Political Economic Social Technological

SLEPT Legal

PESTLE Environmental

STEEPLE  EthicsSTEEPLED Adding

 Demographic factorsDESTEP  Demographic Economic  Social   Technological   Ecological Political

Offerings ► Existing Modified New

Markets ▼Existing 1. Market

penetration4. Modification for existing markets

7. Product innovation

Geographical 2. Geographical expansion

5. Modification for dispersed markets

8. Geographical innovation

New 3. New markets

6. Modification for new markets

9. Total innovation

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 Tak for opmærksomhedenMore detailed information can be found on the Internet:http://info.sks.cz/users/jo/ For English click to:ENGLISH PAGES - ART MARKETINGReferences: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, Inc. 2008. 288 p. ISBN 978-80-247-2724-0.(The book Marketing of Cultural Heritage and Art. Practical Art Marketing. is available in Czech only)

© Radka Johnova, 2015