Art & MarketingDyakov, Ermolina, Sokolenko, Takhirova

1. History

2. Environment

3. Marketing Issues

4. Understanding the performing arts audience

5. Segmentation

6. Identifying the сompetitors and potential collaborators

7. Positioning and promoting the product offering

8. Art as a tool of marketing

Main points

#1History

1950s -1980s unprecedented growth

Obstacles for growth:•Growing competition•Audience size is stagnant or decreased•Lifestyles are changing•Costs increase•Funding is cut•Difficult to find the resources

Marketing tools

Nowadays

• Funding and grants for specific purposes• Tough competitive• Spiraling expenses• Small audience• Lack of time• Lack of arts education at schools

#2Environment

High culture(Fine art)

Popular culture(Mass culture)

Art vs Entertainment“Nobility” “Vulgarity”

Painting by AzizaBeyond price

#3 MarketingIssues

A market-centered approach calls for

satisfying the customer. But, in the arts, is

Satisfaction the goal? A serious artistic organization that ignores

the market place is lying – pure and simple

lying.

Art-centered versusMarket-centered product choice

People who govern, manage or market the arts should not suggest thatthe product be changed to make it sell better.

Company should determine what consumers need and want, and try to satisfy those needs and wants, provided that doing so is consistent with the company’s strategy and that the expected rate of return meets the company’s objectives.

The main idea

The complexities of marketing the arts

A middleman should find a market

A middleman should expand the market

A middleman should keep its consumers

Marketing is the process by which an organization relates creatively, productively, and profitably to the marketplace, with the goal of creating and satisfying customers within the parameters of the organization’s objectives.

Definition

The key feature is that it focuses on exchange

• The product orientation

• The sales orientation

• The customer orientation

The evolution of marketing philosophy

Case #1

1. Atlanta Ballet2. Need to develop new

audiences3. Created a direct-

mail4. The mailing had

generated $92,000 from the sale of 1,360 season tickets, compared to $51,025

What was in the letters?

Case #1

1. An avid runner and Braves fan who marvels at the dancers’ athleticism

2. A lot of us are just pedestrians who can’t do anything ourselves, but we love to watch those who can

3. When my parents take me to the ballet, it makes me fell loved

4. 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 #2

1.Orchestra section members began playing shirt-sleeved chamber music programs at neighborhood art fairs and other local outdoors events

2.The orchestra itself even performed a half-time show at a Buffalo Bills football game

3.The conductor began appearing on local television and giving brief, informal talks to audiences

• 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

Common errors

The 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.

Accessibility

Objectives

#4 Understanding the performing arts audience

Audience segments

#5Segmentation

• Geoclustering

• Gender segmentation

• Lifestyle segmentation

• Usage segmentation

• Benefit segmentation

• Segmentation by aesthetics

Ways of segmentation

Factor 1. Bold, exiting, thrilling, crowded, active (retiring, peaceful, soothing, alone, leisurely)

Factor 2. Familiar, real, symmetrical, matching, (strange, fanciful, asymmetrical, contrasting)

Factor 3. Hard, sturdy, practical, technical, powerful, profitable, (soft, delicate, decorative, emotional, graceful, social)

Factor 4. Stage play, curved, paintings (movies, angular, photographs)

Factor 5. Sophisticated, outstanding, luxurious (sentimental, customary, comfortable)

Factor 6. Dramas, serious, dramatic, alone (musicals, funny, pretty, crowded)

Segmentation by aesthetics

#6 Identifying the сompetitors and potential collaborators

Different types of competitionIntratype competition

The Pushkin Fine Arts MuseumvsTretyakov State Gallery

Intertype competition

Concert “Moscow Virtuosi”vsOpera “Boris Godunov”

Substitute competition

Opera “Traviata” in Bolshoi TheatrevsCD record of this opera

Indirect competition

Photo ExhibitionvsSpartak - Lokomotiv

Interdisciplinary crossovers

CollaborationDiscipline Crossovers

Ballet Art museums, opera, classical music, theater

Modern dance Art museums, theater

Opera Art museums, dance, classical music, theater

Art museums All other disciplines

Science organizations Classical music

Arboreta Opera, classical music, theater

Classical music Art, dance, opera, theater

New music Art, dance, theater

Theater Art, history, cultural museums, opera, classical music

#7Positioning and promoting the product offering

Formulating the communication strategy

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 understood

Pervasiveness 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 promotion

Communication 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 Relations

High 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.

#8Art as atool of marketing

Art as a tool of marketing

Art as a tool of marketing