Marketing of Cultural Heritage

Radka Johnov, PhD. johnova@gmail.com

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

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 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

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

factors Social factors Personal factors Psychological 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 residents Stakeholders, 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 preferences Human 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

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

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

Place
Distributing the Museums 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 Museums 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

Internal factors
Entranceways Corridors Stairs Physical

accessibility

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

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

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 RevenueBuilding 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 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

1. 2. 3.

Standard membership levels Single memberships Family memberships 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 Message AIDA

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 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

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

Internal Resources Analysis

Strengths Weaknesses

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

S-W

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
Markets Existing

Existing
1. Market penetration

Modified
4. Modification for existing markets

New
7. Product innovation

Geographical 2. 5. Geographical Modification expansion 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: For English click to:

http://info.sks.cz/users/jo/

ARTMARKETING_Presentation
or in the book: JOHNOV, Radka. Marketing kulturnho ddictv a umn. 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