Marketing of Cultural Heritage Radka Johnová, PhD

Marketing of Cultural Heritage

Radka Johnová, PhD.johnova@gmail.com

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

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 Relationship marketing Integrated marketing Internal marketing Social responsibility marketing

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 Real Unstated Delight Secret

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")

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 experiencesTo do something worthwhile in their

leisure time

The Occasional Visitors Seek after

active participation social interactionentertaining experiences relaxing experiences comfortable settings interaction with other people

The Nonparticipants tend to value

being together with other peopleengaging in high levels of activity feeling comfortable in their surroundings

Visitors Community residents

repeat visitors Tourists

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

Consumer Behavior Influence Marketing stimuli Other stimuli (external)

Cultural factorsSocial factorsPersonal factorsPsychological factors

Social Factors Reference groups Membership groups Aspirational groups Dissociative groups

Opinion leader

Competition

Competition Desire Generic Form Enterprise

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

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

Environmental Analysis Internal environment Market environment

Visitors and members Community residentsStakeholders, collectors and patrons Media

Regulatory environment Competitive environment Macroenvironment

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

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 preferencesHuman relations

Requirements for Effective Segmentation

Measurability Substantiality (large enough to be worth

attracting) Accessibility

Positioning Strategies

Attribute positioning Benefit positioning User positioning

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

themescontextspoints 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 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 InseparabilityVariabilityPerishability

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 expertsRental 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

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 DesignTwo basic views:

Secular church Inviting Informal

appearance Functional User-friendly

design

Old-fashioned institutionsModern 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

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 shippingconservationexhibit costscosts of technical assistancesharing of curatorial expertiseensure 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 curatorsWorkshops for educatorsTechnical 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

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 dinnersSocial gatherings for young professionalsAnniversary partiesCelebrity receptionsSeasonal 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 museumProvide 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

Questions

Economics What How For whom

Marketing Why Who are

customers When What price

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

Stages and Objectives Awareness Knowledge Liking Preference Intention Purchase

Designing the MessageAIDA Capture attention Hold interest Arouse desire Elicit action

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

Choosing the Execution Style

Slice of life Lifestyle Fantasy Mood or image Evidence of expertise Testimonial

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 audiencesPress conferencesGrand openings 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

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 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.

SWOT Analysis

SWOT Analysis

Internal Resources Analysis Strengths Weaknesses

External Resources Analysis Opportunity analysis Threat analysis

Environmental Analysis Internal environment Market environment Regulatory

environment Competitive

environment Macroenvironment

Competitive Environment Desire competitors Generic competitors Form competitors Enterprise competitors

O-TMarket Environment Museum visitors Members Community residents Stakeholders Volunteers and

activists Donors Media

Internal Resources Analysis Strengths Weaknesses

S-W 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 ► 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

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

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:http://info.sks.cz/users/jo/ For English click to:ARTMARKETING_Presentationor in the book: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, a.s., 2008. 288 s. ISBN 978-80-247-2724-0.(The book is available in Czech only)

© Radka Johnova, 2011