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Lidia Varbanova
15 October 2011 Belgrade By Lidia Varbanova
Cultural markets
Demand factors
Supply factors
Purchasing power of the Funding system for culture population in a country Economic welfare and living Education and training in standards the arts Annual incomes in a Cultural infrastructure household Intermediates/arts Buyers preferences/needs dealers/producers National and family Personal artistic motivation traditions Buyers as active participants Media coverage
Open market is the opposite of a monopoly Markets 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
Start-up tools and theoriestransaction 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 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 cant 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.
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?
Marketing aims
http://frameworkfoundation.ca
The eight executed Facilitate connections Timeraisers have: between a variety of groups - generated 38,000 including young citizens, volunteer hours businesses, charitable and - engaged 2,300 not-for-profit agencies and Canadians emerging artists. A comprehensive volunteer - benefited 200 non-profits organizations engagement process that makes it easier for individuals - invested $190,000 in emerging Canadian to find meaningful and artists relevant volunteer opportunities.
Meeting point for artists from diverse cultural background Multidisciplinary art projects Personal promotion of projects by presentation Reflection and dialogue Networking and partnership building
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
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
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
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