Marketing of Cultural Heritage Art Marketing

Marketing of Cultural Heritage Art Marketing
Radka Johnová, Ph.D.

Cultural Heritage, Tourist Attractions
Impact on the state economy Visitors Taxis Income for the city

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 + 4Cs (or Cs)
Customer / Consumer Convenience Cost Channels Communication Competition Cooperation Context Company skills Collaborators Product Price Place Promotion People Packaging

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 museum Objectives of Museums Attracting Building Retaining an audience

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

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

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 Tourists 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 Stay-at-home behavior Generic Free-time activities
Form Enterprise Stay-at-home behavior Free-time activities Cultural and educational activities Other museums Museums should be aware of four major types of competitive pressure and competitors: Desire competitors—the range of general desires and preferences that potential consumers might have (for example, traveling, reading, watching television) Desire What desire do I want to satisfy? Work exercise Household Entertainment Learning experience Aesthetic experience Generic competitors—the range of ways potential consumers can satisfy a particular need or desire (for example, learning something by attending a lecture instead of visiting a museum) Generic Competition How do I want to have an aesthetic experience? TV at home Art on video Viewing art on the Web Movie Experience Art in a public place Form competitors—the range of alternative services that would satisfy the particular type of leisure activity selected (for example, viewing a museum's art collection on the Internet instead of viewing it at the museum) Form Competition What form of art experience do I want to have? Theater Symphony Rock concert Dance performance Museum Outdoor art fair Enterprise competitors—the range of other types of organizations that can satisfy the needs of potential consumers (for example, visiting a major downtown art museum rather than visiting a smaller neighborhood art museum or going to a theme park or a shopping center for recreation) Enterprise Competition do I want to go to museum? Big downtown museum. Smaller neighborhood museum University art gallery Private gallery The most intense competition in the business world usually is at the enterprise level. However, the most intense competition for museums is likely to be at the desire and generic levels. Each museum has to understand who its competitors are, how people perceive their needs for particular types of services, and what the museum's specific organizational strengths and weaknesses are.

Targeting and Positioning
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

Developing Attractive Offerings
Product Developing Attractive Offerings

Product Goods Services Events Experiences Organizations Places
Intangibility Inseparability Variability Perishability Events Experiences Organizations Places Building Persons Information Ideas Demarketing Markets Product is not only physical goods that constitute the bulk of most countries’ production (such as food, commodities, clothing etc.) There are other types of entities understood as product. Services Advanced economies are focused on the production of services. A growing proportions of services is typical for EU, even for the new countries, and for example the US economy consists of services-to-goods mix. But many market offerings consist of a variable mix of goods and services Compare Mc Donald’s and wine cellar. Events time-based events such as the Olympic Games, trade shows, sports events, artistic performances Experiences (bungee-jumping, rafting ) Persons celebrity marketing has become a major business. artists, actors, musicians, writers, politicians, some high-profile lawyers, doctors, CEOs . They all have their agents and personal managers. Each person of the VIPs has become a „brand“ Places cities, states, regions, whole nations to attract tourists, new residents, company headquarters or factories, museums, galleries libraries to attract visitors etc. Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds) Organizations actively work to build a strong, favorable image in the mind of their publics. We can see corporate identity ads by companies seeking more public recognition (Phillips: Let’s make things better). Non-profit organizations need to have good public image to get funds. Information can be produced and marketed as a product. The Theory of Rational Expectation, Portfolio Theory, Theory of Rational Consumers’ Behavior are based on information Ideas Every market offering includes a basic idea at its core. The chief executive of cosmetic factory Revlon observed: “In the factory we make cosmetics, in the store we sell hope.” The buyer of a drill is really buying a hole or hanging picture on the wall. We must search for the core need we are trying to satisfy. A church for example must decide whether to market itself as a place of interest (Stephansdom in Vienna) or a community center (some local church in a small town). The communication of the church will be different depending of the choice.

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 All museums face the challenge of deciding what to offer to their visitors. After all, there are a variety of ways to design an exhibition hall or to present objects. Museums have choices of the programs they offer and the services they provide. A museum's offerings consist of a mix of at least five basic elements. First, there is the museum setting itself, the exterior and interior architecture and designed space Second, there are the objects, collections, exhibitions. Third, there are interpretive materials such as labels, texts, and catalogues. Fourth, there are museum programs (sometimes called ancillary services), such as lectures, performances, and social events. Fifth, there are the museum services, such as reception and orientation, food service, shopping, and seating. the extent to which the museum organizes or fails to organize the visitor's time, activity, and experience.

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 experts Rental of facilities Social and business events Purchasable products Many visitors like to leave a museum with a souvenir of their visit. It could be a book illustrating the museum's collection, an art poster, a T-shirt with the museum's name on it, or some other memento. Museum pamphlets and guides often make good souvenirs. the shops added more items—a wider selection of books, jewelry, children's games, Art museum shops specialize in art catalogues and books and personal items bearing images from famous artworks. Natural history and science museum shops tend to specialize in rocks and minerals, specimens, microscopes, telescopes, and science learning games. Not surprisingly, museums established gift shops early on. They were typically small, out-of-the way places managed by volunteers and offering limited merchandise reflecting the museum's collections. what had begun as a small service to museum-goers became a major activity and a significant source of income The gift shops at large museums have become large-scale operations, often employing professional managers and buyers. Museums offer a broad range of merchandise connected to the collections and exhibitions or else bearing little connection. The shop offer ample spaces for browsing and buying and well-lit and well-designed areas for shopping. Divided into a series of boutique-like areas, it contains a bookstore, a gift shop, a jewelry shop, a section selling personal items such as ties, scarfs, and clothing, a section with art reproductions and prints, and other areas. Today, major museums have opened shops in off-site locations, such as airports, train stations, and shopping malls. They also have mail-order catalogues and e-shops to reach a geographically broader audience.

Distributing the Museum’s Offerings and Services
Place Distributing the Museum’s Offerings and Services Place – Distributing the Museum’s Offerings and Services Travelers disembarking at Airport passed a full-size museum exhibition as they moved toward the baggage claim area. Museum has occupied the upper store of the Shopping Mall. Although the museum lacks permanent collections, it organizes an average of eight exhibitions a year and attracts an estimated fifty thousand visitors annually. People usually think of a museum as a physical entity located in a specific place, whose benefits are primarily available to those who make the effort to visit its premises. But this is too limited a view of a museum's distribution possibilities. A museum's main facility must be designed to offer maximum accessibility and convenience to visitors. At the same time, museums have the opportunity to deliver their offerings and services far beyond the bounds of that physical structure. A museum's ability to distribute its resources depends on the type of museum it is and the nature of its collections. Science centers, for example, often have an easier time transporting a selection of their resources than art museums whose old, rare, or high-priced art requires climate-controlled environments, specialized packing, arid high rates of insurance. Nothing, of course, prevents art museums from distributing reproductions of great artworks, on the theory that reproductions in classrooms are much preferable to having no artworks at all. Museums can make their exhibitions, programs, and other offerings available in a variety of ways.

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 Ways to distribute a museum’s offerings Art museums offer their members the benefit of reciprocal memberships at other leading art museums. This gives a museum member options as a tourist and builds the museum's visibility. Corporations, serving as sponsors of museum programs or as marketing partners, offer their employees gift memberships or free passes to a museum. Curators offer lectures and slide shows at downtown; headquarters of participating corporations and associations. " Employees get together with a curator over a lunch to discuss a collection, exhibit, or other museum attraction. Employees are offered free passes, discounts in the museum shops, or discounted memberships. Thousands of schoolchildren visit the National Museum every year on field trips. To bring home to parents, each student is given a "family pass" that is good for free admission for two adults and up to four children. Museums can have branches to reach larger and more variegated audiences. The museum's collection can circulate among the branches. The Guggenheim Museum, on Fifth Avenue in New York City, has a branch in lower Manhattan called the Guggenheim SoHo. It also has branches in Venice, Italy; Bilbao, Spain; and Berlin, Germany. Cities, counties, and regional governments, as well as tourist associations, publish guides to museums and cultural institutions in their localities. The city government, along with the tourist bureau, the mass transit agency, and other entities, makes available different brochures promoting city's cultural life, including the "Culture Card" (a pamphlet describing and listing museums, performing arts organizations, and recreational offerings) and the mass transit (public transport) system's map, which identifies the location of museums and their proximity to transit stations and bus lines. Museums organize marketing partnerships with hotels, airlines, restaurants, and other organizations to build a critical mass of culture and recreation to attract tourists. A special museum exhibition can serve as a hook for a partnership program. Tourists can obtain a package of benefits, including discounted rates on hotel rooms, discounts at restaurants, discounted tickets to concert or theatrical performances, and free admission to museums. A museum can distribute its offerings on the World Wide Web and reach a large number of people anywhere in the world. A museum home page on the Web can include general museum information, educational materials, images from the collections, maps of galleries for future visits, and even merchandise for sale in the museum shop that can be ordered directly on-line. Distributing museum offerings as far and as wide as possible is highly desirable and goes to the heart of a. museum's educational mission. Large numbers of people are not able to visit museums. Museum resources in many countries are concentrated in urban centers, at a distance from the suburban, exurban, and rural communities where the majority of people live. A lot of people even today do not feel comfortable visiting museums. To change these patterns and make museums more accessible, museum leaders have taken actions to eliminate barriers, including programs to bring resources to where people live and work. museum, buildings are objects and they shape the ways visitors see things. The museum experience, is foremost a visual learning experience made available through design, training, and professional skills. The museum experience can conceivably take place in any time or setting. There are good reasons to justify the cost and trouble in moving around and dispersing museum collections and exhibits. Yet there are critics of off-site distribution. Their argument against moving highly fragile objects has credibility. Every time a fragile object is moved, some deterioration takes place. Certain art objects, such as works on paper, would be better off in proper storage, with occasional displays under controlled conditions.

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 Electronic distribution cyberspace visitors available via the Internet offers of special merchandise that can be purchased at the Web site, and digital visits to exhibitions and views of objects in the collections, along with audio-assisted guides to Internet visitors. real-time discussions with curators and setting up a "chat room" to communicate with other members on-line. an excellent response to devoted museum 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 encounter in viewing rare objects in person in a museum setting Museum is extending its offerings and services to a much broader audience, in fact, a world audience. Any person who has access to the Internet and the World Wide Web can visit many of the world's great art museums on the computer. Web sites ("homepages") enable people anywhere in the world to visit museums digitally, tour the facilities, view collections, and even make purchases on-line In one sense, people are able to do the same thing by purchasing a museum catalogue or visiting the public library. A museum catalogue can provide a more comprehensive and in-depth view of a museum than a Web site can. But the Internet makes the museum's information available twenty-four hours a. day, seven days a week, anywhere in the world. Home pages can supply images of superb quality and even videos, sound, and other multimedia applications. Furthermore, the browser can visit many more museums than are likely to be found on the shelves of a public library. střetnutí, setkání

Setting Pricing and Revenue-Building Strategies
Price Setting Pricing and Revenue-Building Strategies Pricing Setting Pricing and Revenue-Building Strategies There was a time when pricing was not a relevant or important tool for museums. Most museums opened their doors to the public without a charge; they were sufficiently funded by government agencies and donor groups, in recent years, under the pressure of declining grants and subsidies, rising costs, and the need to expand private revenues, museum administrators have begun to examine the ways of raising revenue through earned-income sources, notably admissions, special exhibit and event fees, and gift shop sales. Pricing has also influenced museums to think more clearly about the benefits they offer the public and what the public perceives as the value of a visit or a membership. Museums serve public and educational purposes and have to protect national and local treasures for future generations. Therefore museums are public assets to which the public has the right of free and unlimited access. ??? Museums have adopted admission fees. museums remain free to the public, majority of museums now charge admission or else request a donation at the door. Museums have discovered that charging an admission fee and setting prices for other services can be compatible with keeping their organizations accessible to people with limited means; free days, passes, and discounts can be used to maintain access for all people. Moreover, earned income for many museums no longer is a discretionary choice but rather a matter of necessity. Earned income has become an important source of financial stability. The question then is not whether to raise earned income but how to do it in ways that are congruent with a museum's mission and needs and the community's expectations.

Pricing Pricing admission Setting prices for other services
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 The pressure for attracting more revenue has led museums to exercise pricing decisions in a number of areas: 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, and pricing donor support. Museums, like public libraries and public schools, look upon themselves as performing valuable public-interest activities that deserve community support. The fact is, however, that both public treasuries and donor groups are under intense pressure to support many worthwhile causes. As museums and other nonprofit organizations respond by developing additional revenue-generating sources, one of their first steps is typically to establish an admission fee.

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 Price elasticity. That is, the museum's revenue may be greater if the museum charges a low price but receives many visitors than if it charges a high price but receives fewer visitors. The relationship between price and demand has not yet been sufficiently researched. There is some evidence, however, that the public reacts negatively to frequent price changes and to overly complex pricing systems. And there is evidence that when a major museum first introduces admission fees, a drop-off in visitation takes place that may last several months, after which visitation levels return to pre-admission fee levels. Much depends on the price sensitivity of the target market. To reduce visitor price sensitivity, a museum may decide to introduce several small price increases instead of one large one. Small price increases are hardly noticed and seem justified in the face of rising costs. Most organizations prefer to pass on small price increases on a regular basis than to make large price increases on an infrequent basis. Some museums have set up a process for monitoring and revising their pricing It found admission price that was the break point beyond which its public showed resistance. One means of researching such price inhibition is to observe the rate of customer turnaround: namely, how many visitors enter the museum and upon seeing the admission charge, decide to leave. This tends to happen more in locations where there are alternative leisure-time activities at hand. The museum could set a lower price and then observe whether the number of turnarounds decreases significantly. Performing arts studies show that price is typically a second-tier issue. If the subject matter, performance, and performers are of high quality, then price is less of a barrier. At the same time, price increases can have a significant impact on certain audience segments (groups with moderate or low interest), who react to price increases by attending fewer performances.

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 Many museums favor the objective of audience maximization because it is likely to create two additional benefits Charging to Maximize the Number of Visitors. Alternative objectives for setting admission fees The larger audience will generate more positive word of mouth—assuming that the museum experience meets or exceeds expectations. A larger audience also increases the number of people who might make purchases in the museum gift shop and restaurant, take out memberships, or make donations to the museum. Most museums prefer the tangible revenue flow from a solid admission charge to the less tangible revenue effects of word of mouth. Moreover, audience maximization may not be a sound objective if crowds create a lot of property wear-and-tear and if they rob visitors of a satisfying experience due to long queues, less visible exhibits, noise, and other inconveniences. Art museums, particularly, guard the quality of the setting and the ability of audiences to take long, comfortable, leisurely views of exhibitions. These considerations favor higher admission charges to restrain visitor levels. However, too high an admission charge could lead to criticism that a museum is exclusive and elitist. Charging to Maximize Cost Recovery or Surplus Building The museum's admissions revenue is its price times the number of visitors: the issue, then, is visitor sensitivity to price. When the museum is trying to maximize its cost recovery or even build up a surplus, price setting is a matter of viewing price for its impact on revenue and demand. If the museum has great treasures, offers a lot of experiences, and attracts many out-of-town visitors, it is able to charge a higher price and not lose visitors than a museum in the opposite circumstances. In fact, the more the museum can build up its visibility and reputation for being distinctive, the higher the price it can charge. Moderating the temptation so set a high admission fee is the nonprofit, publicly funded museum's vulnerability to criticism that low-income people (especially with large families) cannot afford visits and therefore the museum is behaving inappropriately to the extent that it impedes access. Although there is understanding, among the public as well as government officials, that subsidies cannot cover all the revenue museums require, the environment and set of expectations in which museums operate serve to place limits on the amount that can be charged for admission, alongside the constraints the market itself places on admission fees. It is important for museums to recognize that, whatever the level of admission fees, visitation rates will have an effect on other sources of revenue. Visitors typically enjoy having a meal or making purchases in a museum gift shop as well as visiting galleries and exhibits. For this reason, price setting has to take into account the effects of an admission price on both visitor levels and visitor propensity to make purchases. A museum might want to take its pricing cues from what comparable local museums are charging. If most local museums charge $6 for admission, another museum can feel justified charging $6—but not much more. The museum-going public will be accustomed to paying $6 for admission to comparable museums but may balk if one or another of the museums charge more. Charging What Comparable Museums Charge, Charging What Other Leisure Activities Charge, Another approach to admission. price setting is to examine what other leisure-time activities and organizations charge. People are quite willing to spend $7 to see a ninety-minute movie. the value of their offerings to alter perceptions and expectations. The question becomes, What is the museum experience comparable to? visit tends to be only a few hours long, and that includes dining, shop, rest room stops as well as viewing exhibits. Visitors relate the admission price to the length of their museum visit Museums that have found ways to encourage visitors to spend more time than the average are therefore in a position to raise their fees accordingly. Museums could segment their pricing (for admissions or for special exhibitions and events), tailoring prices to the capability of various segments to pay and to the perceived value of benefits. Charging a single, uniform price overlooks the ability to pay and fluctuations in demand. If benefits were differentiated, each might command a separate price. Second is the idea of unbundling or uncoupling prices and benefits. Museums have a variety of offerings and services, each of which, if appropriately communicated, could be perceived as having a particular value and benefit. Similarly, a museum that offers a package of benefits tied to admission is offering extra value that can be perceived as justifying a higher price. Such product bundle pricing is a means to boost incentives, although the price charged for each individual benefit in the bundle would be less than if priced separately. Bundles or packages are similar to the subscription tickets used by performing arts organizations and season tickets used in professional sports. a museum can set an admission price (say $10) that includs a certificate worth $4 either for purchases in the gift shop or restaurant at a certain level. Alternately, visitors could be charged $7 for entry without the certificate, establishing a $4 value for a $3 incremental fee. Those visitors who pay the $10 fee, and use the gift shop or restaurant, would probably spend more than the $4, the equivalent of the certificate, and would perceive a greater value in the higher fee, based on experience. Suggestions:, for example, At the same time, the museum derives considerable benefit from generating incremental income from those visitors using the certificates to make purchases they might not otherwise have made. On its free day, a museum can organize a jazz concert to attract different visitor segments and capture additional revenue. museum admission prices can be higher on weekends because people have a greater need then for cultural and recreational activities. Moreover, competitive offerings, such as movies, theater, and concerts also command higher prices Charging to Maximize Revenue. a leading arts marketing consultant is a strong advocate of arts organizations and museums charging admission fees at a level comparable to other leisure activities. We should always charge as much as we can get. If we charge more than people will pay then we get nothing and that is very uncommercial. Because we are supported by public subsidy we also have an obligation to the community at large [and] to those who want what we have to sell but cannot afford to buy it at prices that are acceptable to the majority. The mistake which is sometimes made is to behave as though the whole community cannot afford to pay our prices and so to keep prices far below the level of general public acceptance. people, especially in certain segments, tend to undervalue services provided free or nearly free; cost-free and low-cost museums are generally thought to be of less value than destinations or activities that command a price. most people most of the time have few incentives to visit a museum (especially one that is free or lacks special exhibitions) because it can be visited at any time at the same cost and for the same experience. That explains why a museum visit tends to be treated differently from a performing arts event, which is scheduled for a particular time and for which tickets may be purchased in advance. A performing arts event, in addition, occurs in a place that has a limited number of seats. Once a ticket is purchased under conditions of scarcity, the ticket holder is likely to attend the event at the given time. Museums can match the characteristics of performing arts organizations by offering special exhibitions and events. He advises museums to accept the idea of charging for admission, treat, programs as scarce events, tailor prices to various segments, and link incentives to the prices charged. Further, museums should adopt the habit of requiring tickets for admission and of scheduling events and selling tickets in advance. This gives potential visitors an incentive to schedule a visit soon rather than delay it and to take advantage of programs that have a limited life, thereby raising the perception of scarcity in relation to museum offerings. Museums can then transform permanent exhibitions into special, changing, short-term exhibitions for which tickets are required. Museums can also organize special tours of the collections led by curators, behind-the-scenes visits, or lectures by well-known authorities, each of which constitutes an event that can be perceived as having added value and for which a price can be charged. To attract low-income groups and others lacking the means to pay, museums can offer vouchers or discounts. Building demand for participating in events, using tickets, and charging fees requires, to be sure, prudent planning and image building along with advertising and promotion. Charging the Socially Justified Price. Even when charging admission, museums carry a social and public purpose. Normally, they do not intend to make a profit or to recoup total museum costs but to meet a fraction of their many expenses. Museums would normally rather charge on the low side than the high side, given that they believe this will attract more people to enjoy their treasures. the museum has an obligation to generate fiscal stability and at the same time keep its visitors and supporters. Museums should be especially sensitive to the admission price they charge school tours and young people generally. The museum of course wants to encourage students to visit. Most museums establish lower admission prices for students in groups than for individual students,

Pricing Extras Pricing 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 special exhibitions and events Museums that have mounted a special exhibition at considerable expense often establish a special admission fee beyond the general admission charge. Museum members can view the special exhibition at no cost (one of the privileges of membership), but nonmembers must pay a separate charge. The special exhibition charge will vary with the quality and prestige of the show. viewing audience is predominantly upper-income and devoted to art. However, from a broader perspective, and considering the balance of constituencies and interests that a museum represents, the price for a blockbuster show has to be calculated at a level that will not unduly discourage citizens of limited means, or some proportion thereof, from visiting.

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 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

Marketing Communication
Promotion

Communicating and Promoting How 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 relations
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

Tools of PR - Events Events are planned happenings that aim to communicate or deliver something to target audiences Press conferences Grand openings (first night performances) 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 Target group: members, sponsors

Sales Promotion Temporary price reductions Admission free
Late evening hours

Sponsoring Attracting Resources

Membership Programs and Benefits Attracting and Motivating Donors
Attracting Members Mass marketing approach Segmenting and targeting approach High 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 Sponsor Sponsored Media

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) Target Groups Consumers
Governments and authorities Employees Media Geographical Target World Country Region Local Can be sponsored Person (artists) Group, team Organization Exhibition, program Event Archeological research

Types of Sponsoring Sponsor Chooses One-time or long-time
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 One-time or long-time Money or barter Investments Co-sponsoring Exclusive sponsoring Name holders

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 External 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 Audience development Visitorship level Visitorship diversity Repeat visitorship Visitor service quality Membership program quality Marketing 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

Analyses STEEPLE PEST Ethics Political STEEPLED Economic
Adding Demographic factors DESTEP Demographic Economic Social Technological Ecological Political PEST Political Economic Social Technological SLEPT Legal PESTLE Environmental

Offerings ► Existing Modified New Markets ▼ 1. Market penetration 4. Modification for existing markets 7. Product innovation Geographical 2. Geographical expansion 5. Modification for dispersed markets 8. Geographical innovation 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 opmærksomheden
More detailed information can be found on the Internet: For English click to: ENGLISH PAGES - ART MARKETING References: JOHNOVÁ, Radka. Marketing kulturního dědictví a umění. Art marketing v praxi. Praha: Grada Publishing, Inc p. ISBN (The book Marketing of Cultural Heritage and Art. Practical Art Marketing. is available in Czech only) © Radka Johnova, 2015

Marketing of Cultural Heritage Art Marketing

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