Introduction to Marketing: Why is marketing good for the

arts? Marketing approaches

Understanding marketing in a strategic context

Lidia Varbanova

15 October 2011Belgrade

By Lidia Varbanova

Cultural markets

Demand factors Supply factorsPurchasing power of the populationEconomic welfare and living standardsAnnual incomes in a householdBuyers preferences/needsNational and family traditionsMedia coverage

Funding system for culture in a countryEducation and training in the artsCultural infrastructureIntermediates/arts dealers/producersPersonal artistic motivationBuyers as active participants

Markets-a general economic overview

Open market is the opposite of a monopoly Market’s great advantages: fosters variety,

keeps art lively, creates healthy competition Market responds to the demand, on

consumers’ needs What is “good” and what is “bad”

changes over time and is not fixed Not everything commercial is of bad quality

and all subsidized is of a good quality Who decides on the arts’ quality: artists,

politicians, audiences, arts managers?

Marketing: definitions

“Marketing is the creation and distribution of customer satisfaction for an appropriate return of resources and effort."

"Marketing is human activity directed at satisfying needs and wants through exchange process."

“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements, profitability." - Chartered Institute of Marketing, UK

"Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others." – Kotler

Essential elements

Marketing is a process Mutual satisfaction Fulfilling needs and creating needs The customer is in the centre Influence and change customers’

behaviour

Brief historical overview

Start-up tools and theories-”transaction” marketing

Marketing in the service area Marketing in the non-profit sector

and other areas (politics) Marketing in the cultural sector “Relationship” concept of

marketing

Marketing of the arts-definitions

“Marketing refers to the complex of exchanges in which the aesthetic product of painting, story, song and performance is offered to the audience for a price - a price of attention, emotion and action.Philip Kotler

“Marketing is a process of exchange between individuals and groups, each of whom wants something and offers something.” Michael Mokwa

“Cultural Marketing is the art or reaching those market segments likely to be interested in the product while adjusting to the product the commercial variables-price, place, and promotion-to put the product in contact with a sufficient number of consumers and to reach the objectives consistent with the mission of the cultural enterprise.”Francois Colbert

Marketing is a function that acts as interface between an organization and its environment.

Possible resistance

“If we offer high quality of art, the audiences will come anyway.”

“Marketing tools are always commercial and they destroy high quality art.”

“The arts are about creativity, inspiration, muse and can’t be closed within pragmatic frames.”

“Culture and the arts should be supported by the state and dependent on commercial principles. Therefore any marketing intervention is wrong as it aims to generate profit.”

“The arts are about leading and opening audience tastes while marketing fulfils existing needs. Therefore both are incompatible”.

Why marketing helps cultural organisations and projects?

Helps the organisation to compete successfully for the audiences’ attention, time and money

Allows programme development based on constant feedback from clients and customers.

Helps generate support and revenues: fundraising campaigns and marketing

Improves visibility of arts works and cultural products. Helps to decision-making in a constantly changing

environment. Decreases risks: helps to predict future behaviour of

clients and competitors

Important questions

How can we better know, attract, satisfy and educate our audiences, buyers, clients?

What methods should we use in the overall process of audience development?

How are our artistic programmes and projects orientated towards the needs and expectations of our audiences?

How can we ensure that we are selling the right programmes and projects to the right people, in the right place, at the right time and using the right communication tools?

What are the most efficient ways to connect audiences’ expectations and motivation with the right communication tools?

How can we increase the public image of our organisation and visibility of our programmes?

Balancing programming and marketing

Framework Foundation - Timeraiser program

http://frameworkfoundation.ca

Facilitate connections between a variety of groups including young citizens, businesses, charitable and not-for-profit agencies and emerging artists.

A comprehensive volunteer engagement process that makes it easier for individuals to find meaningful and relevant volunteer opportunities.

The eight executed Timeraisers have:

- generated 38,000 volunteer hours

- engaged 2,300 Canadians  

- benefited 200 non-profits organizations

- invested $190,000 in emerging Canadian artists

Les Journées de la culture

www.journeesdelaculture.qc.ca

All types of art forms present in 3 days of festivity all across the city

For all ages Free access Active involvement of

audiences and participants: workshops, discussions, interactive installations, exploring diverse art techniques.

Education elements: lectures and debates, public rehearsals, presentations, demonstrations, hands-on experiences.

MAI (Montréal. arts interculturels)

www.m-a-i.qc.ca

Meeting point for artists from diverse cultural background

Multidisciplinary art projects

Personal promotion of projects by presentation

Reflection and dialogue Networking and

partnership building

Marketing strategies; Ansoff matrix

Market penetration strategies

A strategy for growth ‘Business as usual’ – focusing on well-known

markets and products ’Easily applicable’ strategy, with no additional

investment or specific market research needed Provides opportunities to increase the quality of the

products and services and to work with regular clients

Potential problem: inability of the organisation to provide a response to competitive strategies and new products due to its relatively conventional production and distribution methods

Market development strategies

Aims to seek new markets for the sale of existing products and services

Requires investment in new distribution channels, changes in pricing policies to attract different clients or the creation of new market segments.

Requires implementation of market surveys Examples:

A special offer of a series of symphonic orchestra evenings with a regular audience, or for students and young people

Increased sales of paintings in a private gallery among tourists in a city that until now have not been regular clients

Lower price leadership strategies

Aim: to secure competitive advantage through lower costs (or higher subsidies) which allow the organisation to offer programmes and products at much lower prices than those offered by the competitors.

In business companies: re-evaluating the cost structure

In subsidized organisations: increasing outside support and subsidies

Differentiation strategies

Emphasise on unique and non-conventional characteristics of the product

Important: added-value of the outcomes which justify the higher prise or utilize a higher subsidy to perform the activities.

Example: Utilising a state subsidy to invest in a new technical requirements of a dance production: the regular audience may contribute more through increased ticket sale revenues.

Specialisation strategies

The key to create competitive advantage Specialisation can occur by:

hiring highly specialised or skilled personnel or contractors;

employing new/innovative technology or methods;

pursuing a strong branding of products; engaging distribution methods and audience

development techniques