MARKETING FOR CULTURAL ORGANIZATIONS Daria Kuchařová Culture and Mass Media Economy 1 Content I. Marketing in cultural organizations II. Cultural consumers and purchasing process III. Market segmentation IV. Promotion Culture and Mass Media Economy 2 MARKETING IN CULTURAL ORGANIZATIONS Culture and Mass Media Economy 3 Challenges cultural organizations face  Decreased consumer time for leisure  Various entertainment options  Consumer’s exposure to the world’s cultural products  Blurring of the distinction between high and pop culture  Changing patterns of public funding Culture and Mass Media Economy 4 Reality in culture sector  Art can no longer be treated as having sacred right for public support  Culture organizations can no longer assume that they know what consumer wants  Consumers living in multimedia and cross-cultural environment want more combinations of art forms and delivery methods  Cultural events must provide multiple benefits to meet consumer needs, while fitting in their time and budget constraints  + Current generation doesn’t view high art as inherently more valuable than pop culture that shapes their lives Culture and Mass Media Economy 5 Marketing in cultural organizations  Marketing – “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals” (Bennet, 1995) ◦ Negative view in cultural organizations ◦ But, both sides (individual and organiuzational goals) Culture and Mass Media Economy 6 Marketing focus  Product focus ◦ Quality product will attract customers by itself ◦ Inward orientation ◦ Organizations determine what to product based on its ideas and capacities  Sales focus ◦ Convince consumers to purchase ◦ Aggressive sales techniques Culture and Mass Media Economy 7 Marketing focus  Consumer focus ◦ Product that meets needs and desires of customers ◦ In cultural organizations, product  for organization –art itself (core product)  for consumer – total package of experience (entertainment, learning, social, etc.) ◦ Right communication, presentation an packaging of the total experience Culture and Mass Media Economy 8 CULTURAL CONSUMERS AND PURCHASING PROCESS Culture and Mass Media Economy 9 Types of cultural consumers (involvement)  Consumer: light and generalized use  Fan: focused on specific authors, cultural goods  Cultist: heavy, specialized use with associated social activities  Enthusiast: serious interest entire cultural stream, participated in structured activities  Petty producer: collector, amateur producer of art form Culture and Mass Media Economy 10 Types of cultural consumers (examples)  Consumer: any museum on a free weekend  Fan: attends Monet exhibitions  Cultist: joins local museum association, attends education events on Monet  Enthusiast: studies Impressionism art movement, travels to other museums, joins “friends” of a museum  Petty producer: collects paintings Culture and Mass Media Economy 11 Types of cultural consumers (cont.)  Cultural organizations employees – enthusiasts or petty producers  Most people will remain on consumer level (consumption of cultural goods – an occasional activity) Culture and Mass Media Economy 12 Types of cultural consumers (cont.)  Cultural organizations: ◦ Accept the culture of consumers as they are, rather than as people with the need for improvement, ◦ Provide cultural events for different groups, ◦ Serve two distinct groups: cultural enthusiasts (small, aging) and culture consumers (wants to be entertained) Culture and Mass Media Economy 13 Reasons for attendance  Interest in particular artist,  Leisure and entertainment,  Social ritual,  Self improvement. Culture and Mass Media Economy 14 Purchase process 1. Problem/need recognition 2. Information search ◦ Information should be in a convenient form and place 3. Evaluation of alternatives ◦ Need all necessary information 4. Purchase 5. Post-purchase evaluation ◦ Important! Repeat the experience? Culture and Mass Media Economy 15 Factors influencing consumer choice  Internal ◦ Values and beliefs  Negative beliefs in attending cultural events?  External ◦ Education ◦ Family ◦ Social class ◦ Ethnic culture ◦ Reference groups Culture and Mass Media Economy 16 MARKET SEGMENTATION Culture and Mass Media Economy 17 Market segmentation  Goal – expose as many people as possible to their art product  Cultural organizations may target: ◦ Entire public ◦ Specific segment (small organizations) ◦ Multiple segments  Different “packages”  Same product, different message to consumer Culture and Mass Media Economy 18 Market segmentation  Market depth ◦ Attract more members from the current segment ◦ Limited growth – most people from the segment already decided  Market breadth ◦ Attract members from new segments ◦ Important! Market to new segment and retaining current audience Culture and Mass Media Economy 19 Segmentation process 1. Define current segment 2. Define new/potential segments to target ◦ Product => Consumer ◦ Consumer => Product Culture and Mass Media Economy 20 Methods of segmentation  Demographic segmentation ◦ Gender, age, education level, occupation, marital status, income, and ethnicity  Geographic segmentation ◦ Local audience vs audience outside local area (+tourists)  Benefit segmentation ◦ Different benefits depend on lifestyle, usage rate and pattern, motivation,psychographic characteristics ◦ Factors that actually motivate consumer to attend a cultural event ◦ Information difficult to obtain and analyze Culture and Mass Media Economy 21 Targeting cultural tourists  Cultural tourists: ◦ Most tourists travel for enjoyment (not to understand foreign culture) ◦ Limited time ◦ Often visit out of feeling of obligation  Issues: ◦ Conflicting goals ◦ Art form too culturally distinctive to be attractive to tourists ◦ Responsibilities to local market segmetns Culture and Mass Media Economy 22 PROMOTION Culture and Mass Media Economy 23 Marketing to segmented market  Define product benefits fro each segment  Determine message – communicate benefits, necessary information +emotions!  Determine communication style attractive to the segment  Find audience, motivate to attend Culture and Mass Media Economy 24 Promotional tasks  Informative  Persuasive – attract consumers  Reminder (when and where product is available) – for enthusiasts who already attend Culture and Mass Media Economy 25 Promotional methods  Advertising  Sales incentives (discounts, coupons, etc.)  Personal selling (by members of organization)  PR (maintaining favorable image)  Direct marketing (phone, email)  Websites  Email clubs (“opt-in” emails)  Integrated marketing communications (IMC) – using more than 1 promotional method Culture and Mass Media Economy 26 Sources  Marketing for Cultural Organisations. 2nd edition. Bonita M Kolb, 2005. Culture and Mass Media Economy 27 THANKYOU FOR ATTENTION! Culture and Mass Media Economy 28