Blueprint For Building Audiences - Chorus America · 1. Business Review 2. SWOT Analysis 3. Environmental Analysis 4. Quantifiable Marketing Objectives 5. Target Markets 6. Strategies

©Arts & Business Council of Americans for the Arts 1

Blueprint For Building Audiences:

How To Write A Marketing Plan

Chad Bauman

Managing Director

Milwaukee Repertory Theater


Healthy Arts Organization

Balances:

Managerial

Soundness

Artistic Excellence

Customer Input


What is marketing?

It ISN’T “selling” or “telling”

It’s the process by which you come to understand the relationship between your product and the customer.

Vehicle for demonstrating value to the consumer.


What’s its role in a mission driven organization?

Translates the artistic vision into language consumers understand

Keeps you abreast of consumer trends

Acts as the liaison between the consumer and artist


Finds/captures paying customers

to support the artistic mission.

4 elements:

Build Awareness

Create Interest

Stimulate Trial

Build Loyalty


Promotion

Product People

Price Position

Place Politics

What are the key tactical

elements of marketing?


Your Goal?

attracting new people in a meaningful way to your venue or programming over the long-term.


New Audiences: Deploy the Marketing Trifecta

Precise Targeting

Relevant Benefits

Creative Communications


How does the planning process work?

1. Business Review

2. SWOT Analysis

3. Environmental Analysis

4. Quantifiable Marketing Objectives

5. Target Markets

6. Strategies

7. Tactics

8. Channels

9. Communications goals/strategies

10. Budget

11. Action Plan

12. Evaluation Plan


Where are we?

Unique mission?

Who is our customer?

Who are our new targets?

Growth potential?

Where are we going?

Measurable Objectives?

How will we get there?

Appropriate strategies?

What will we say, to whom and how?

What will it cost?

Who will do what and when?

How will we know it’s working?


Where are we?

What is our mission?

Who is our current customer?

Who else could be a potential customer

for us?

Who do we compete with for our

customer’s time and money?


Where are we? What are the key issues facing my

organization, my industry and my

community currently and in the near

future?

What are our internal strengths and

weaknesses (assets, financial resources,

management, volunteers, corporate

culture, etc..)?

What are our external opportunities and

threats?


Where do we want to go?

What three key objectives should I

focus on that are:

Measurable

Attainable

Financially viable

Socially significant?


How will we get there? What strategies and tactics will I

employ that address opportunities

uncovered in Section I?

Practice 360° Marketing

How do those learnings apply to:

Product Price

Place Promotion

People Positioning


What will we say, to whom and how?

Who does the promotions plan target?

What message will motivate them to buy?

Where do they get their messages about leisure time activities?


Who will do what, when & with what resources?

What can and should I pay for, and

what can and should I find pro bono?

Does this growth strategy require

adding staff?

What is our internal approval

process for marketing materials?


What will it cost?


What will it cost?

6:1 Rule

Spend six times more to acquire new audiences than to keep old audiences.


How will we measure progress and when?

Are the systems in place to track new

audience members as they come into

our organization, and the source of

their interest in our organization?

Do we have a process for

encouraging their continued interest

in our organization?


Did we achieve our goals? What did we learn in the process? Does our analysis include all seven of the

Arts Marketing Ps or are we just focused on

promotion?

What did we learn about our suppositions

regarding new audiences that we made in

the first section of the planning model?

What did we learn about timing, or internal

processes, that could help us in planning

or execution of our marketing plans next

year?


Where are we?

Mission

Current customers

Potential customers

Environmental Analysis

Competitive Analysis

S.W.O.T. Analysis

Arts Usage Data


Who are we?

Mission Inside view looking out: artist’s

perspective

Statement of Purpose Why you exist

Statement of Ambition Defines what drives the artistic product

Statement of Values What you believe in


Typical problems with missions

Unoriginal

Ineffective

A talisman hung in public places to ward off evil spirits.

Eileen Shapiro

“Fad Surfing in the Boardroom”


Typical problems with missions

Abstract

Bare

Generic

Don’t provide daily guidance

Product of compromise

Precise

Lush

Unique

Visionary

Specific


Can everyone on your

board and staff define the

organization’s mission

and its activities?


Bad Mission

We produce plays which span the full spectrum of theatrical genres but share a common impulse: to celebrate the human spirit’s endurance and capacity.


Good Mission

Black Storytelling embodies the history, heritage and culture of African Americans. It preserves, perpetuates and passes-along the folklore, legends, myths, fables and morés of Africans, their descendents, and ancestors. Our mission is to establish and maintain a network of individuals and groups to preserve the African Diaspora Oral Tradition.


What is a brand?


What is a Brand?

More than your logo

Trusted promise

Encapsulates a Big Idea

Conveys the Nature of the Experience

Promise/Big Idea are Translated through Customer Experience at every Touch Point


Customer Contract

Brand Truth

Facts that Support

Claims

Right of Entry

Intangible Attachment

Emotional Connection

Personal Significance


Alignment

What the customer thinks

What the

organization says


Consumer insight

Purchase decisions are made in the unconscious mind. Repetition implants the purchase idea in the unconscious mind.

Jay Conrad Levinson, Guerrilla Marketing


Who you Target

What differentiates you

from competition

Who you are: Mission

What you’re good at


Myths of Branding

1. Branding is easy

2. Your logo is your Brand

3. Brands live only on TV

4. The crafted experience is always valid to customers

5. Brands are built on gazillion-dollar marketing budgets

6. Brands are permanent


Functions of a Brand

Communicates Four Aspects of You:

1. Reputation: How well known

2. Esteem: How highly rated

3. Relevance: How important

4. Differentiation: How different


Functions of a Brand

Create value by meeting real consumer needs

Promises you are unique and different

Binds people together

Celebrates differences

Allows for new, creative ideas


What’s the Brand?

Is it:

Mass Merchandise

Or

Affordably Hip Stuff


What’s the Brand?

Is it:

Coffee

Or

Sociability


Where are we?

Mission

Current customers

Potential customers



S.W.O.T. Analysis

Arts Usage Data


The Customer

Who are they, demographic description?

What are their wants, needs, desires, attitudes, interests, barriers, concerns, pressures?

How could you benefit them? Solve a problem?

What, if any, position or image do you conjure in their minds?


Why Segment Your Potential Audience?

You can market to all of the

people some of the time, and

some of the people all of the

time, but you can’t (effectively)

market to all of the people all of

the time.

To Paraphrase . . .


Why segment the market?

“Segmentation is saying something to somebody instead of saying nothing to everybody.”

Jay Conrad Levinson

Guerilla Advertising, 1994


Demographics Are Not Enough

Typical Demographic Profile Female

Caucasian

Age 50 to 64

High Income

Professional Career

Adult Children

Politically Active


IDENTIFYING CHARACTERISTICS

Traits that put people into categories

Demographics Geography Usage or

Behavior

Attitudes,

Beliefs or

Opinions

Future

Intentions

or Interest


ENRICHING CHARACTERISTICS

Traits that "Paint a Portrait“ of the segment

Interests

Related Behavior

Personal Values

Psychological Characteristics

Life Stage


Starts with current audience

One time attendees

Multiple/repeat attendees

Subscribers/members

Group attendees


Targeting

Season TxSingleTxAA Women


Customer Segments

Seg. %Aud %Pop Index Trend

SeasonTX

60% 50% 120 -

Single TX

40% 39% 102 +

AA Women

6% 13% 46 +


Existing Audiences

More often Different things Quality of experience


New Audiences

More of the same New groups


Better audience surveys

Customer Data

Get demographics

Get name, address, phone

Sort single from season ticket buyers

Did you attend because of the show/performance or the organization?


Better audience surveys

Competitive Data

What else do you do with your leisure time?

What do you get out of those activities? List three adjectives to describe their benefits.

Core Competency Data

List three adjectives that describe tonight’s performance/the organization.


Where are we?

Mission

Current customers

Potential customers



Arts Usage Data

S.W.O.T. Analysis


The Organization Competitive

Framework

Successful Marketing Plans Look Beyond “Us”

Prospect Traits Environmental Trends


Research Analysis Process

What can I learn about the industry?

What can I learn about my audiences compared to averages?

How would I apply these learnings to the Marketing Ps?


How to get the information

General research (US. Census, economic development agencies, small business administration, tourism dept., etc.)

Industry studies (NEA, Arts Marketing Center)


How to get the information

Your own research (Observations, informal contact with customers, surveys, focus groups, etc.)

Mail list analysis, internet tracking, prize give-aways, community meetings, etc.


How do you interpret the data?

Combine findings from many sources

Look for the story

Ask questions

Why?

If ... Then ...?

What If?


DEMOGRAPHIC TRENDS

Populations are shifting toward suburbs/exurbs, but older couples are moving back into central urban areas.

Boomer retirees are creating new population centers (Arkansas, NC, etc.)


DEMOGRAPHIC TRENDS

Generation X-ers and other younger audiences demand “unique experiences,” and process selling information very differently (read skeptically) than Boomers.

Gen X & Y get their info from new media.

Decreases in arts education/diversity mean less familiarity with and a redefinition of the standard arts repertoire.


Aging Baby Boomers

Projected % Change by Age

2015 - 2000

-3%

2%

64%

14%

51%

25-39 40-54 55-69 70-85 85+

Age GroupSource: US Census


Boomers b. 1946-1964

Rewinding not winding down Open minded and will try new

brands $1 T in buying power = age

50-60 Use internet to plan outings;

not surfers Like to try before they buy

Boomer Project, Richmond, VA


Gen X: Alpha Moms

Blackberry in one hand, baby on the hip

Spend 7% more shopping online

87 minutes a day online

Luxury conscious

BlogHer


Supporting Gen X Moms

Comprehensive educational materials

Let them be a part of arts education

Parenting Manual

Communication, discipline, confidence-building, relationship-building

Link them together

Blogs, parents groups, coffee klatch


Millennials b. 1982-2000

Hydra-like approach to info gathering

Brilliant multi-taskers, hard-driving, heavily scheduled, team oriented, conventional, bad memories


22.4

35.3

43.7

55.2

68.2

82.7

98.2

29.234.0

37.541.6

45.649.6

53.524.4%

30.9%32.7%

36.2%

39.9%

43.7%

47.2%

0

20

40

60

80

100

120

1990 2000 2010 2020 2030 2040 2050

Po

pu

lati

on

in

Mil

lio

ns

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

All

Min

ori

ties %

of

To

tal

Hispanic African-American % Minority

Increasing Diversity and Difference

Source: US Census


Non White Spending Power

AA $723 BB, will grow 30% by 2009

Hispanic $686 BB, will grow 45%

Asians $363 BB, will grow 45%

Native $48 BB, will grow 1/3rd


Redefinition of Family 24% of HH = traditional definition

Single professional females (tribes)

Newly single middle-agers

Married gays


ECONOMIC TRENDS Decrease in government funding, corporate

and individual giving have put the squeeze on arts organizations for the past several years; although giving is up with large organization and major institutions, smaller and mid-sized organizations still struggle.

Social services are siphoning funds from the arts.


ECONOMIC TRENDS

Hybrid of philanthropy and sponsorship is confusing, time consuming and placing added pressures on arts groups.

Demands for greater accountability/return on investment by sponsors.


Where are we?

Mission

Current customers

Potential customers



Arts Usage Data

S.W.O.T. Analysis


Arts Audience Research

NEA by art form

NEA total arts market

Existing data on leisure activities

Generational marketing

Crossover Audiences


Defining the Arts Experience

Reaches beyond the actual encounter with the art

Begins when the consumer leaves home

Does not end until the consumer reaches home again

Identify what you can control within this window


Defining the Art Forms

Theatre - anything that occurs within a theater building

Dance - often includes folkloric or musical theatre performances


Defining the Art Forms

Music - spans pop to classical

Visual Arts - extremely broad

festivals and fairs

any museum

historic sites, architectural tours


Total Benefit - Total Cost = Total Value


Typical Benefits/Barriers Need/Benefit

Stimulation

Freedom/Escape

Exposure/Discovery

Connection

Expression/Sharing

Status attainment

Special Occasion

Edutainment

Family Activity

Overcome Barrier Unfamiliar with

venue/neighborhood

Unfamiliar with offering

Lower awareness of options

Big Deal Extensive

planning/expense/ effort

Feel like an outsider


Light Users Are Casual Consumers

More likely to have children under age 6

More likely to be younger (2/3 of group are under 45)


Light User Required Benefits

Easy, fun entertainment

Accessible, both in content and logistics

Safety in choice

Social cachet/prestige

Family activity


Light User Motivations

Celebration of a Special Occasion

“Must See” Blockbusters

Family Activity


Where are we?

Mission

Current customers

Potential customers



S.W.O.T. Analysis



Competition is a major feature of the external environment


Types of Competition

Direct competition from similar art forms

Possible substitutes -- other art forms and leisure options

All competition for leisure dollars


Compare yourself to:

2 direct competitors -- similar art form

1 likely substitute -- other art form or leisure option

Be cognizant of overall competition for customers’ dollars


What to compare?

Annual Revenues

Revenue Sources

Growth/decline

Geographic region

Products

Seasons

Target Audiences

Prices

Venues

Customer Service

Positioning

Promotional mix


What are you looking for?

Competitive advantages = Meaningful benefits you offer versus them

Competitive weaknesses = Meaningful benefits they offer versus you

…but meaningful to whom?


Look at yourself/the competition

through the customer’s eyes.

Play “secret” shopper

Employ an objective observer

Analyze the total customer experience


Internal Analysis (S.W.O.T.)

Internal Factors

External Factors

Strengths

Weaknesses

Opportunities

Threats


Use S.W.O.T. Analysis to:

Unearth important issues

Brainstorm and get input from others in your organization

Pinpoint internal and external factors affecting your growth


Marketing “P’s” Guide Strengths/Weaknesses Analysis

Product

Price

Place

Promotion

People

Positioning


Types of Opportunities

Large growing markets

Unique niches

Virgin territory

Seasonal programs

Geographic expansion

Trends

New audience segments

Collaborations


Types of Threats

New/strong competitors

Economic downturns

Community changes

Changes in funding patterns


SWOT Analysis

Strengths Weaknesses

Opportunities S/O W/O

Threats S/T W/T


Summing It Up

All things are not equal

Narrow down analysis to factors most relevant to solving your business problem

Hone in on significant insights

Follow the rule of 3’s


Where do we want to go?

Set three key objectives

Measurable

Attainable

Financially viable

Socially significant - fits within organization-wide objectives


Well defined objectives have…

A target group named

A verb

A numeric goal


Examples

Bad objective

Increase participation in and earned income from all ABC Museum activities.

Good objective

To increase urban audiences at XYZ Dance Company’s urban-based performances by 30% for the 1999/2000 season.


Arlington Symphony

Stretch Goal

Eventually sell out each concert in our new 1000 seat hall.

Incremental Goals

This year, sell 383 subs; sell out the opening night concert at 1000 seats; and sell average of 235 single tickets for each remaining concert.

Next year, sell 425 subs and an average of 340 single tickets per concert.


How will we get there?

Strategies - 4 Ps

Communications Strategy

Communications Mix


Strategies

Product

Price

Place

Promotion


PRODUCT What kinds of products or activities are

we offering?

When and where do we offer them ?

Are there other products we could be offering, based on our strengths and gaps in the marketplace?

Is there a way to make our product more appealing, helpful or fulfilling for users?

Are we using appropriate consumer language to describe our product?


Product Strategies

Consumer language

New products developed


Biggest Product Mistake

Using exclusionary language to describe the product

Focusing on facts, not benefits


PRICE

How much does it cost to participate (time and money) from the time customers leave home until they return?

How easy is parking, dining, other amenities?

How is our ticketing and customer service?

How does our cost compare to competing arts and non-arts options?


Price Strategies

Price promotions

Creating packages - value added


Biggest Pricing Mistake

Overused or too significant discounting

Remember, price=value to consumers


PLACE

Is our location attractive and comfortable for our public?

Does the signage make the most of our identity?

Is it easy or difficult to reach?

Can we bring the product to the public in some other way?


Place Strategies

Ambience

Accessibility

Customer Service


Biggest Place Mistake

Hiding

Arts dirty, broken, unsafe, unfriendly

Organization-focused customer service


PROMOTION

What are we saying about ourselves?

What communications tactics are we currently using?

Which have worked best/least?

What other messages and media could we be using?

Are we budgeting enough for marketing to be effective?

Are we capturing the data to know what’s working and what’s not?


Promotion Strategy

Say what?

To whom?

How & Where?


Biggest Promotion Mistake

Jumping into promotion without planning


3 Keys to a Powerful Message

Intimate understanding of the target

Product positioned to address consumer needs and desires

Solid communications strategy



Objective - What do you want the communication to do? Raise awareness? Make people buy?

Target - Who are we trying to reach with the message?

Message - The promise; one concise statement



Support - The facts and features that support the promise; the reason to believe the message is true

Tone - Feeling inspired by the message; the product’s personality


Find the Communications Strategy in this ad.


Communications Strategy - Freak: John

Leguizamo

Objective

To convince the target to come to see John Leguizamo in Freak.

Target

Hip young adults, or those who still believe they are (Boomers), who are looking for entertainment on the edge

Message

John Leguizamo is a hip, one-of-a -kind, off-the-wall comedian who will freak you out . . . and your date as well

Support

The critics from the biggest New York newspapers (and CBS-TV) were really enthusiastic about him; quotes from Boomer icons

Tone

Appeal to hip, young, ‘with it’ crowd by reflecting their attitudes and speaking their language. . . and standing out on the page


Communications Mix

Brochure Reminder Card Posters Ticket Inserts Direct Mail Radio ads Print ads TV ads E-blasts MySpace page

Billboards Yellow Pages Special Event Public Relations Telemarketing Sampling Coupons Point-of-purchase

Displays


Budgeting for Marketing


Encompasses Two Concepts

Action Planning

Monetary Budgeting


Who will do what, when & with what resources?

What can and should I pay for, and

what can and should I find pro bono?

Does this growth strategy require

adding staff?

What is our internal approval process

for marketing materials?


What will it cost?


Action Planning

Item Action Time Allowed

Due Date

Resp? Approv.


Tests of a Good Action Plan

Highly detailed

Agreed upon by all interested/responsible parties

Highly detailed


What will it cost? (Budget)

Be sure to include costs for all aspects of plan - new programming, market research, creative materials, distribution, media space, public relations, etc.

Create separate budgets for each target/objective


Goal based budgeting

What has it cost to fill current seats?

What has it cost to develop current level of awareness?

If sales are to double, then spending must double


Judging budget levels

Budget is too high if payout is higher than 1:1

Budget is too low if:

not spending 15-25% of revenues on marketing

not spending 6:1 to acquire new audience as to keep old ones


Contingency Planning

Expect +10-15% line item overages.

Expect production problems, rate increases, last minute opportunities

Track results of various media and drop those not working


How will we know it’s working?

Results to be tracked and why

How they will be tracked and by whom

Timeframe of tracking

Results reporting

Action plan


Results Tracking

Outputs

Outcomes


Outputs: Can be Counted

Customer Numbers

Demographics

$$ Sales

etc


Outcomes: Expected Changes

What change are you trying to affect in the consumer?

Learning

Leisure

Restoration


Failures are required for success

Picasso sketched or painted more than 10,000 works, yet discarded 2 out of 3

Edison tried over 1,000 types of filaments before he found the proper one for a reliable light bulb

More successful companies experience more failure…but incorporate the learnings

Source: Winning New Product and Service practices for the 1990s from T. Kuczmarksi & Associates


Contact me!

Chad Bauman

[email protected]

Documents

Blueprint For Building Audiences - Chorus America · 1. Business Review 2. SWOT Analysis 3. Environmental Analysis 4. Quantifiable Marketing Objectives 5. Target Markets 6. Strategies