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Political
Economic
Social
Technological
Legal
Environmental
Alison O‘Hara
Chief Executive
Audiences North East


                       1
Political




The Big Society
Philanthropy




                          2
The Big Society

•www.cabinetoffice.gov.uk
Building the Big Society
•Five priorities:
     — Give communities more power
     — Encourage people to take an
       active role in their communities
     — Transfer power from central to
       local government
     — Support co-
       ops, mutuals, charities and
       social enterprises
     — Publish government data




                                          Jay Gunn brings his animal encounters
                                          to Centre for Life Halloween 2010
The Big                                   • State of the Arts conference February 2011

Society                                     •   Definitions:
                                                   • ―Not difficult but different‖
                                                   • ―It‘s not the individual and not the state‖
                                                   • ―Giving something back‖
                                                   • ―Valuing the individual contributions to
                                                     work and the community‖
                                                   • ―‗Edge to centre‘ – moving people from
                                                     the edge of activity to centre stage‖

                                            •   Liverpool abandoned its Big Society pilot
                                                project as the cuts have hit voluntary
                                                groups who were to take over some of
                                                the services under the programme
                                            •   Voluntary sector faces estimated £1.14bn
                                                cut in local government grants this year

Tyneside Cinema. Image: Ronnie Hackston



                                                                                                   4
Culture Forum report
December 2010
• 26 cultural leaders   • Education         • Streamlining the
  representing all                            government‘s
                        • Contribution to
  regions of England                          involvement in
                          new economic
  and all major                               arts and
                          growth
  artforms                                    heritage
                        • Social
• Established by Arts                       • Working with
                          enterprise
  & Business and                              reduced public
  National Campaign     • Scaling up          funds
  for the Arts
                        • Clarifying the    • Developing
• How the arts and        state‘s role on     corporate
  heritage contribute     arts and            support and
  to the Big Society      heritage            philanthropy


                                                                 5
Philanthropy
•£80m match funding scheme
    — Government review of how
      it can encourage
      philanthropy
    — More visible recognition of
      philanthropy – thanking
      donors
    — Developing fundraising
      skills and capacity
    — Promoting and increasing
      planned giving
    — Supporting long-term          — Increasing giving from
      development of                  international donors
      endowments                    — Strengthening links
    — Harnessing digital              between culture and other
      technology to boost             sectors which are
      philanthropy                    supported through
                                      philanthropy eg
                                      charities, community groups
                                      or social enterprises
What does this mean for us?

 •Address fragmentation amongst sector?
 •Collaborations?
 •Upskilling eg tapping into philanthropy?
 •But earned income ↑16% whilst
 philanthropy/sponsorship/trusts ↓10%
 •Focus on demand (ie audiences‘ desires)?
                                             7
Economic




           Great Street Games part of Great North Run
           Cultural Programme and Juice – Newcastle
           Gateshead‘s festival for children and young people
           2009. Image: NorthNews


                                                            8
Downturn   •   North East prevalence of public sector
               jobs
           •   Reduced support for tourism
           •   Local authority cuts
           •   Funding cuts
           •   Less disposable income
           •   Business investment in the arts and
               heritage at its lowest point since 2004
               (falling by 12% last year to £144m from an
               all-time high of £172m in 2006/7).
           •   In-kind sponsorship and corporate
               memberships increased (8% and 2%) but
               cash fell by 18%
           •   Arts & Business Private investment in culture 2009/10




                                                                       9
Downturn

• Unemployment          — Number of men          • Increased use of
 — 2.5m people over       claiming                 volunteers (30%
   16 are                 unemployment             increase on previous
   unemployed, 7.9%       benefit fell by 5.4k
                                                   year). Employed/
   of the workforce     — Number of women          contractual staff
 — 21.2m full-time        rose by 7.8k
                                                   grew by only 3%.
   workers (down 5k     — One in five 16-24
                                                 •   ACE RFO key data Jan 2011
   on previous            years olds are out
   year), 7.9k part-      of work
   time workers (up     —   ONS December 2010

   224k on previous
   year)
 — Less public sector
   jobs


                                                                                 10
What does this mean for us?

 •Creative approaches to fundraising?
 •Organisational development?
 •Sweating our cultural assets?




                                        11
mima   • Art lovers invited to play a part in
         commissioning and creating a
         new exhibition
       • mima has teamed up with an arts
         website ‗we did this‘ to raise funds
         for a piece of work by Richard
         Forster
       • Target of £15k has been set for
         the online appeal
       • 90 days to raise funds
       • Those donating a sum such as
         £20 will be able to join in
         discussions between the artist
         and curator and those contributing
         £100 can have a say in the
         creative process by asking
         questions and making
         suggestions                          12
Royal &    • Designated Regional Theatre of
             the Year by The Stage
Derngate   • In the last year the management
             team has developed a new
             organisation, Northamptonshire
             Arts Management Trust, to deliver
             finance, administration, sales,
             marketing, human resources, IT
             programming and management
             services for both Royal &
             Derngate and a new theatre, The
             Core that opened in November
             2010




                                                 13
The Bowes   • 15 weddings held in the past year
Museum      • Significant contribution to income
              stream with plans to extend

            • Images from 450-guest Asian
              wedding, extensive liaison with
              London-based wedding
              planner, coverage in the Journal




                                                   14
Live Theatre   • Since 2002 running an annual
                 Introduction to Playwriting course
               • Always oversubscribed so created an
                 online version to cope with demand and
                 generate income
               • Exclusive videos and advice from award-
                 winning writers including Lee Hall and
                 Alan Plater
               • Five step-by-step modules
               • Two levels of entry – ‗solo‘ £95 and
                 ‗interactive‘ £495
               • Most of solo version is additional income
               • Interactive version more resource heavy
                 still sees c60% of the fee form additional
                 income
               • Video extracts will be updated 3 times a
                 year
               • Liaising with UK Trade and Investment
                 with view to developing a US audience
                 for the project

                                                          15
Social




         Star and Shadow Cinema




                             16
2011’s big event?




                    17
The Royal Wedding




                    18
• Flurry of furniture and TV buying in the
  first few days of 2011 lifted retail sales in
  January – furniture and electricals
                                                       Shopping
• UK retail sales ↑2.3% on last January                   habits
  helped by discounting ahead of VAT rise
  and December weather prevented
  shopping
• However, industry beginning to suffer –
  comparison to snow-hit performance in
  2009
• Later in the month, sales of non-food
  goods slowed
•   British Retail Consortium and KPMG February 2011
• Housing Market 7%↓ in demand in
  January – E Midlands, Yorkshire and
  Humberside suffered most drops
•   RICS January 2011




                                                               19
• Clubbing together to get the best
                                   deals
                                 • Online collectives eg
                                   incahoot.com, groupon.com using
                                   bulk buying to negotiate special
 Value for                         rates and discounted deals
 money                           • Co-operatives – not a new idea,
                                   government White Paper on
                                   proposals to encourage everyone
                                   to join their local co-operatives eg
                                   to buy groceries
                                 • Local discounts – old fashioned
                                   face recognition (eg Starbucks,
                                   the Scarf Shop, Petals) or apps
                                   such as Vouchercloud
Newcastle City Hall Sunday for
Sammy                            • Flash sales – time limited offers
                                   that encourage impulse buys
                                                                          20
• Generation G
• Random acts of kindness – consumers‘
  cravings for realness, the human touch
• Brands randomly picking up the tab to
  sending a surprise gift
• Actually need to know what is happening
  in consumers‘ lives – tapping into social
  networks to find this out
• Interflora launched a social media
  campaign in the UK designed to brighten
                                              Random acts
  up the lives of Twitter users by sending
  them flowers. As part of the
                                               of kindness
  campaign, Interflora monitors Twitter
  looking for users that it believes might
  need cheering up. Once found, the users
  are contacted by tweet and sent a
  bouquet of flowers




                                                         21
• Status symbol? Olympics? Can be
Wellthy     cheap!
          • Mobile healthcare applications – 17k
            healthcare apps
          • Heaviest use of healthcare apps is by
            young adults aged 18-29
              • Strollometer – new mother‘s strolling
                routine, Fit4Mum.com
              • Sleep on it – tracks nightly sleeping
                patterns
              • DirectLife – builds up detailed record
                of daily activities
          • Park runs
              • Free, weekly, 5km timed runs, open
                to everyone, free, take place in
                pleasant parkland surroundings and
                encourage people of every ability to
                take part www.parkrun.com



                                                     22
• Education Secretary Michael
                         Gove announced in
 Arts                    December that performance
 education               tables would measure
                         performance in five subjects
                         – English, maths, science,
                         foreign language and
                         humanities
                       • Sidelined art, music, design,
                         technology and RE
                       • Music Review February 2011
                         with national plan to be
                         published later this year
Image: David Arandle



                                                    23
What does this mean for us?
 •Jump on the Royal Wedding (gravy) train?
 •Awareness of value for money? Not just ticket price but whole
 cost
 •Segmentation – looking for the easy wins?
 •Rewarding loyal customers?
 •Genuine random acts of kindness?
 •Tapping into getting fit/participation in ‗active‘ artforms?
 •Alternatives to classroom learning for the arts?


                                                                  24
Technological




Freshest Bairns at Dance City. Image: Barry Self




                                                   25
Customer         • Acquiring and maintaining
service is the     customers – approach that
new                boosts profit by acquiring
                   and maintaining customers
marketing          through trust, great
                   customer experience, a
                   tailored service and lots of
                   positive customer buzz in
                   the digital arena

                 • Reactive and proactive
                  The Marketer March 2011


                                                  26
Facebook   • 633 million users by October 2010

           • UK‘s largest display advertising
             publisher

           • Third highest number of video
             viewers behind YouTube and the
             BBC

           • Facebook products include
             photos, gaming with many inter-
             connected TVs with built in
             Facebook

           • The Social Network

           • Research Information Network
             Social Media – A Guide for
             Researchers

                                                 27
Dell



• One frustrated customer            • Dell Idea Storm was created as a channel for
  managed to create such a             customers to make suggestions to Dell and has
  social media buzz about Dell‘s       been used by thousands of customers since
  poor customer service that at        then
  one point the Dell Hell site was
  dominating the search engines,
  overshadowing the official site




                                                                                 28
Marks &
Spencer

    Busts 4 Justice


• Busts 4 Justice facebook
  groups was set up by 26-year-
  old who was fed up of paying        • Marks & Spencer launched full-page ads in
  extra for her 30G bras                national newspapers to apologise for its
                                        decision to add a £2 surcharge on the price of
• 15k followers                         larger bras
• Group members bought M&S            • The ad says that the company had decided to
  shares and had planned to             charge more on the basis that larger bras cost
  tackle the company‘s CEO on           more to make, but admitted they were wrong
  the issue of the ‗tit-tax‘ at the
  company‘s AGM                         ―so as from 9 May the storm in a D cup is over‖
                                      • M&S reduced the price of its larger bras by £2
                                        and offered 25% off all bras for a two-week
                                        period (May 2009)                            29
• New ways of delivering library services to
                remote communities and making reading
                more accessible through digital technology
              • Trial community ‗book points‘ and e-book
New             readers will be piloted in Northumberland and
                County Durham – book clubs, book donations
approaches      and informal book swapping

to location   • The two county councils joined forces on the
                Future Libraries Programme and their joint
                bid – Going Digital, Going Local – was one of
                10 chosen from across the country as pilot
                schemes
              • Local people will be able to request books by
                phone or using the library online
                catalogue, email and text messaging will be
                heavily used by the library service to keep in
                touch with customers
              • The scheme will also assess the
                effectiveness of e-books in providing the
                reading needs of over-60s and low-income
                families
                                                             30
What does this mean for us?
 •Planning approach to social media?
 •Resources for reactive and proactive?
 •Identifying opinion formers?
 •Defining your organisation‘s ‗voice‘ in social media?
 •Infrastructure for IT in rural locations?
 •New locations for public engagement?



                                                          31
Legal




Performance at Durham Streets of Play 2010.
Image: Martin Cunningham



                                              32
Social Media           Editorial or marketing?

                       Celebrity endorsement of
                        products and companies
                        on blogs

                       Facebook promotions
 Like It and Land It
                        guidelines




                                                  33
What does this mean for us?
 •Acknowledging influence celebs can have?
 •Paid bloggers?
 •Facebook rules?
 •Competitions?




                                             34
Environmental




Tall Ships Race 2010, Hartlepool


                                                   35
Eco superior                    • Ever present quest for more
                                   environmentally sustainable societies
                                 • Rise in eco-superior products – not just
                                   eco-friendly but superior in other ways
                                 • Consumers actively seeking out green
                                   products reaching a plateau
                                 • Mainstream consumers question value
                                   and efficiency of going green
                                 • While 40% of consumers say they are
                                   willing to purchase green products, only
                                   4% of consumers do when given a
                                   choice (Journal of Marketing September
                                   2010)




Audience interaction with a
water sculpture at The Alnwick
Garden


                                                                          36
What does this mean for us?
 •Responding to funders to be eco friendly?
 •Reactive or proactive?
 •Links with ‗wellthy‘ trend?
 •Complete offer – eco friendly and high quality?




                                                    37
2011’s big event?




            ‗Temenos‘ by Anish Kapoor and Cecil Balmond, the
            first of the ‗Tees Valley Giants‘, the biggest public
            art project in the world. Image: Alan Jukes


                                                              38

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New developments in marketing pestle 2011 march 2011

  • 3. The Big Society •www.cabinetoffice.gov.uk Building the Big Society •Five priorities: — Give communities more power — Encourage people to take an active role in their communities — Transfer power from central to local government — Support co- ops, mutuals, charities and social enterprises — Publish government data Jay Gunn brings his animal encounters to Centre for Life Halloween 2010
  • 4. The Big • State of the Arts conference February 2011 Society • Definitions: • ―Not difficult but different‖ • ―It‘s not the individual and not the state‖ • ―Giving something back‖ • ―Valuing the individual contributions to work and the community‖ • ―‗Edge to centre‘ – moving people from the edge of activity to centre stage‖ • Liverpool abandoned its Big Society pilot project as the cuts have hit voluntary groups who were to take over some of the services under the programme • Voluntary sector faces estimated £1.14bn cut in local government grants this year Tyneside Cinema. Image: Ronnie Hackston 4
  • 5. Culture Forum report December 2010 • 26 cultural leaders • Education • Streamlining the representing all government‘s • Contribution to regions of England involvement in new economic and all major arts and growth artforms heritage • Social • Established by Arts • Working with enterprise & Business and reduced public National Campaign • Scaling up funds for the Arts • Clarifying the • Developing • How the arts and state‘s role on corporate heritage contribute arts and support and to the Big Society heritage philanthropy 5
  • 6. Philanthropy •£80m match funding scheme — Government review of how it can encourage philanthropy — More visible recognition of philanthropy – thanking donors — Developing fundraising skills and capacity — Promoting and increasing planned giving — Supporting long-term — Increasing giving from development of international donors endowments — Strengthening links — Harnessing digital between culture and other technology to boost sectors which are philanthropy supported through philanthropy eg charities, community groups or social enterprises
  • 7. What does this mean for us? •Address fragmentation amongst sector? •Collaborations? •Upskilling eg tapping into philanthropy? •But earned income ↑16% whilst philanthropy/sponsorship/trusts ↓10% •Focus on demand (ie audiences‘ desires)? 7
  • 8. Economic Great Street Games part of Great North Run Cultural Programme and Juice – Newcastle Gateshead‘s festival for children and young people 2009. Image: NorthNews 8
  • 9. Downturn • North East prevalence of public sector jobs • Reduced support for tourism • Local authority cuts • Funding cuts • Less disposable income • Business investment in the arts and heritage at its lowest point since 2004 (falling by 12% last year to £144m from an all-time high of £172m in 2006/7). • In-kind sponsorship and corporate memberships increased (8% and 2%) but cash fell by 18% • Arts & Business Private investment in culture 2009/10 9
  • 10. Downturn • Unemployment — Number of men • Increased use of — 2.5m people over claiming volunteers (30% 16 are unemployment increase on previous unemployed, 7.9% benefit fell by 5.4k year). Employed/ of the workforce — Number of women contractual staff — 21.2m full-time rose by 7.8k grew by only 3%. workers (down 5k — One in five 16-24 • ACE RFO key data Jan 2011 on previous years olds are out year), 7.9k part- of work time workers (up — ONS December 2010 224k on previous year) — Less public sector jobs 10
  • 11. What does this mean for us? •Creative approaches to fundraising? •Organisational development? •Sweating our cultural assets? 11
  • 12. mima • Art lovers invited to play a part in commissioning and creating a new exhibition • mima has teamed up with an arts website ‗we did this‘ to raise funds for a piece of work by Richard Forster • Target of £15k has been set for the online appeal • 90 days to raise funds • Those donating a sum such as £20 will be able to join in discussions between the artist and curator and those contributing £100 can have a say in the creative process by asking questions and making suggestions 12
  • 13. Royal & • Designated Regional Theatre of the Year by The Stage Derngate • In the last year the management team has developed a new organisation, Northamptonshire Arts Management Trust, to deliver finance, administration, sales, marketing, human resources, IT programming and management services for both Royal & Derngate and a new theatre, The Core that opened in November 2010 13
  • 14. The Bowes • 15 weddings held in the past year Museum • Significant contribution to income stream with plans to extend • Images from 450-guest Asian wedding, extensive liaison with London-based wedding planner, coverage in the Journal 14
  • 15. Live Theatre • Since 2002 running an annual Introduction to Playwriting course • Always oversubscribed so created an online version to cope with demand and generate income • Exclusive videos and advice from award- winning writers including Lee Hall and Alan Plater • Five step-by-step modules • Two levels of entry – ‗solo‘ £95 and ‗interactive‘ £495 • Most of solo version is additional income • Interactive version more resource heavy still sees c60% of the fee form additional income • Video extracts will be updated 3 times a year • Liaising with UK Trade and Investment with view to developing a US audience for the project 15
  • 16. Social Star and Shadow Cinema 16
  • 19. • Flurry of furniture and TV buying in the first few days of 2011 lifted retail sales in January – furniture and electricals Shopping • UK retail sales ↑2.3% on last January habits helped by discounting ahead of VAT rise and December weather prevented shopping • However, industry beginning to suffer – comparison to snow-hit performance in 2009 • Later in the month, sales of non-food goods slowed • British Retail Consortium and KPMG February 2011 • Housing Market 7%↓ in demand in January – E Midlands, Yorkshire and Humberside suffered most drops • RICS January 2011 19
  • 20. • Clubbing together to get the best deals • Online collectives eg incahoot.com, groupon.com using bulk buying to negotiate special Value for rates and discounted deals money • Co-operatives – not a new idea, government White Paper on proposals to encourage everyone to join their local co-operatives eg to buy groceries • Local discounts – old fashioned face recognition (eg Starbucks, the Scarf Shop, Petals) or apps such as Vouchercloud Newcastle City Hall Sunday for Sammy • Flash sales – time limited offers that encourage impulse buys 20
  • 21. • Generation G • Random acts of kindness – consumers‘ cravings for realness, the human touch • Brands randomly picking up the tab to sending a surprise gift • Actually need to know what is happening in consumers‘ lives – tapping into social networks to find this out • Interflora launched a social media campaign in the UK designed to brighten Random acts up the lives of Twitter users by sending them flowers. As part of the of kindness campaign, Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet and sent a bouquet of flowers 21
  • 22. • Status symbol? Olympics? Can be Wellthy cheap! • Mobile healthcare applications – 17k healthcare apps • Heaviest use of healthcare apps is by young adults aged 18-29 • Strollometer – new mother‘s strolling routine, Fit4Mum.com • Sleep on it – tracks nightly sleeping patterns • DirectLife – builds up detailed record of daily activities • Park runs • Free, weekly, 5km timed runs, open to everyone, free, take place in pleasant parkland surroundings and encourage people of every ability to take part www.parkrun.com 22
  • 23. • Education Secretary Michael Gove announced in Arts December that performance education tables would measure performance in five subjects – English, maths, science, foreign language and humanities • Sidelined art, music, design, technology and RE • Music Review February 2011 with national plan to be published later this year Image: David Arandle 23
  • 24. What does this mean for us? •Jump on the Royal Wedding (gravy) train? •Awareness of value for money? Not just ticket price but whole cost •Segmentation – looking for the easy wins? •Rewarding loyal customers? •Genuine random acts of kindness? •Tapping into getting fit/participation in ‗active‘ artforms? •Alternatives to classroom learning for the arts? 24
  • 25. Technological Freshest Bairns at Dance City. Image: Barry Self 25
  • 26. Customer • Acquiring and maintaining service is the customers – approach that new boosts profit by acquiring and maintaining customers marketing through trust, great customer experience, a tailored service and lots of positive customer buzz in the digital arena • Reactive and proactive The Marketer March 2011 26
  • 27. Facebook • 633 million users by October 2010 • UK‘s largest display advertising publisher • Third highest number of video viewers behind YouTube and the BBC • Facebook products include photos, gaming with many inter- connected TVs with built in Facebook • The Social Network • Research Information Network Social Media – A Guide for Researchers 27
  • 28. Dell • One frustrated customer • Dell Idea Storm was created as a channel for managed to create such a customers to make suggestions to Dell and has social media buzz about Dell‘s been used by thousands of customers since poor customer service that at then one point the Dell Hell site was dominating the search engines, overshadowing the official site 28
  • 29. Marks & Spencer Busts 4 Justice • Busts 4 Justice facebook groups was set up by 26-year- old who was fed up of paying • Marks & Spencer launched full-page ads in extra for her 30G bras national newspapers to apologise for its decision to add a £2 surcharge on the price of • 15k followers larger bras • Group members bought M&S • The ad says that the company had decided to shares and had planned to charge more on the basis that larger bras cost tackle the company‘s CEO on more to make, but admitted they were wrong the issue of the ‗tit-tax‘ at the company‘s AGM ―so as from 9 May the storm in a D cup is over‖ • M&S reduced the price of its larger bras by £2 and offered 25% off all bras for a two-week period (May 2009) 29
  • 30. • New ways of delivering library services to remote communities and making reading more accessible through digital technology • Trial community ‗book points‘ and e-book New readers will be piloted in Northumberland and County Durham – book clubs, book donations approaches and informal book swapping to location • The two county councils joined forces on the Future Libraries Programme and their joint bid – Going Digital, Going Local – was one of 10 chosen from across the country as pilot schemes • Local people will be able to request books by phone or using the library online catalogue, email and text messaging will be heavily used by the library service to keep in touch with customers • The scheme will also assess the effectiveness of e-books in providing the reading needs of over-60s and low-income families 30
  • 31. What does this mean for us? •Planning approach to social media? •Resources for reactive and proactive? •Identifying opinion formers? •Defining your organisation‘s ‗voice‘ in social media? •Infrastructure for IT in rural locations? •New locations for public engagement? 31
  • 32. Legal Performance at Durham Streets of Play 2010. Image: Martin Cunningham 32
  • 33. Social Media Editorial or marketing? Celebrity endorsement of products and companies on blogs Facebook promotions Like It and Land It guidelines 33
  • 34. What does this mean for us? •Acknowledging influence celebs can have? •Paid bloggers? •Facebook rules? •Competitions? 34
  • 35. Environmental Tall Ships Race 2010, Hartlepool 35
  • 36. Eco superior • Ever present quest for more environmentally sustainable societies • Rise in eco-superior products – not just eco-friendly but superior in other ways • Consumers actively seeking out green products reaching a plateau • Mainstream consumers question value and efficiency of going green • While 40% of consumers say they are willing to purchase green products, only 4% of consumers do when given a choice (Journal of Marketing September 2010) Audience interaction with a water sculpture at The Alnwick Garden 36
  • 37. What does this mean for us? •Responding to funders to be eco friendly? •Reactive or proactive? •Links with ‗wellthy‘ trend? •Complete offer – eco friendly and high quality? 37
  • 38. 2011’s big event? ‗Temenos‘ by Anish Kapoor and Cecil Balmond, the first of the ‗Tees Valley Giants‘, the biggest public art project in the world. Image: Alan Jukes 38