Art &MarketingDyakov, Ermolina, Sokolenko, Takhirova
Main points1. History2. Environment3. Marketing Issues4. Understanding the performing arts audience5. Segmentation6. Identifying the сompetitors and potential collaborators7. Positioning and promoting the product offering8. Art as a tool of marketing
Obstacles for growth:1950s -1980s •Growing competition •Audience size is stagnant or decreasedunprecedented •Lifestyles are changinggrowth •Costs increase •Funding is cut •Difficult to find the resources • Funding and grants for specific purposes • Tough competitive • Spiraling expenses Nowadays • Small audience • Lack of time • Lack of arts education at schools Marketing tools
High culture Popular culture (Fine art) (Mass culture)
Art vs Entertainment“Nobility” “Vulgarity”
Painting by AzizaBeyond price
Art-centeredversusMarket-centered product choice A market-centered approach calls forsatisfying the customer. But, in the arts, isSatisfaction the goal? A serious artistic organization that ignoresthe market place is lying – pure and simplelying.People who govern, manage or market the arts should not suggest thatthe product be changed to make it sell better.
The main ideaCompany should determine what consumers need and want, andtry to satisfy those needs and wants, provided that doing so isconsistent with the company’s strategy and that the expected rateof return meets the company’s objectives.
The complexities ofmarketing the artsA middleman A middleman A middleman should find should expand should keep a market the market its consumers
DefinitionMarketing is the process by which an organization relates creatively,productively, and profitably to the marketplace, with the goal ofcreating and satisfying customers within the parameters of theorganization’s objectives. The key feature is that it focuses on exchange
The evolution ofmarketing philosophy• The product orientation• The sales orientation• The customer orientation
Case #1 1. Atlanta Ballet 2. Need to develop new audiences 3. Created a direct-mail 4. The mailing had generated $92,000 from the sale of 1,360 season tickets, compared to $51,025 What was in the letters?
Case #11. An avid runner and Braves fan who marvels at the dancers’ athleticism2. A lot of us are just pedestrians who can’t do anything ourselves, but we love to watch those who can3. When my parents take me to the ballet, it makes me fell loved4. With all the bad news today – the rushing and the deadlines and the crisis – it’s wonderful to be able to sit back and immerse yourself in a thing of beauty
Case #2 We can’t go because we don’t have the proper clothes. We would feel really uncomfortable around all those fancy-dressed people. What did Buffalo Philharmonic Orchestra do in order to attract new consumers?
Case #21. Orchestra section members began playing shirt-sleeved chamber music programs at neighborhood art fairs and other local outdoors events2. The orchestra itself even performed a half-time show at a Buffalo Bills football game3. The conductor began appearing on local television and giving brief, informal talks to audiences
Common errors• The organization considers its offerings to be inherently desirable• A minor role is afforded to customer research• Marketing is defined primarily as promotion• One “best” marketing strategy is typically employed in approaching the market and is viewed as being all that is needed• Generic competition is ignored or misunderstood
AccessibilityThe key is how to make the product more accessible to the viewer,not how to change the artist’s vision or the organization’s mission.
#4Understandingthe performingarts audience
Ways of segmentation• Geoclustering• Gender segmentation• Lifestyle segmentation• Usage segmentation• Benefit segmentation• Segmentation by aesthetics
Different types ofcompetitionIntratype competition Intertype competitionThe Pushkin Fine Arts Museum Concert “Moscow Virtuosi”vs vsTretyakov State Gallery Opera “Boris Godunov”Substitute competition Indirect competitionOpera “Traviata” in Bolshoi Photo ExhibitionTheatre vsvs Spartak - LokomotivCD record of this opera
CollaborationInterdisciplinary crossoversDiscipline CrossoversBallet Art museums, opera, classical music, theaterModern dance Art museums, theaterOpera Art museums, dance, classical music, theaterArt museums All other disciplinesScience organizations Classical musicArboreta Opera, classical music, theaterClassical music Art, dance, opera, theaterNew music Art, dance, theaterTheater Art, history, cultural museums, opera, classical music
#7Positioning andpromoting theproduct offering
Formulating the communicationstrategy
AdvertisingPublic presentation Advertising is a highly public mode of communication. Many people receive the same message, buyers know that their motives for purchasing the offering will be publicly understoodPervasiveness Advertising is a pervasive medium that permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors.Amplified expressiveness Advertising provides opportunities for dramatizing the organization and its offerings through the artful use of print, sound, image, and color.Impersonality The audience does not feel obligated to pay attention or respond to advertising.
Personal sellingPersonal interaction Personal selling involves a living, immediate, and interactive relationship between two or more persons.Cultivation Personal selling permits cultivation of relationships, ranging from matter-of0fact selling relationships to deep personal friendship.Response Personal selling makes the target audience member feel under some obligation to respond, even if the response is only a polite “thank you”.
Sales promotionCommunication Sales promotion gain attention and usually provide information that may lead the consumer to the product.Incentive They incorporate some concession, inducement, or contribution that gives value to the consumer.Invitation They include a distinct invitation to engage in the transaction
Public RelationsHigh credibility News stories and features seem more authentic and credible to readers than to advertisements. PR can reach many prospects who might avoid salespeople and advertisements.Dramatic appeal PR, like advertising, has the potential for dramatizing and building the image of an organization of offering.Low cost The costs for PR efforts undertaken by any organization with an in- house communication manager are relatively low.