gold strategy 2010

MORRIS HARGREAVES McINTYRE

Strategic Marketing and Audience Development for Cultural Organisations September 2010

Strategic Marketing and Audience Development for Cultural Organisations


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© 2007 MORRIS HARGREAVES MCINTYRE

50 Copperas Street, Manchester, UK M4 1HS Telephone 0161 839 3311 Fax 0161 8393377 Email [email protected] www.lateralthinkers.com



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Contents

1 What is marketing? 4

2 The Marketing Planning Process 13

3 Marketing and corporate strategy 6

4 Situational Analysis 15

5 Competition 21

6 The Market 22

7 Implications for Marketing Strategy 45

8 Developing the right product 56

9 Marketing strategies 60

10 Positioning 64

11 Branding 67

12 Marketing Tools 70

13 Measuring success 77

14 References Error! Bookmark not defined.



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1 What is marketing?

Marketing as a term stimulates much debate and a good deal of confusion. The debate is in part prompted by the fact that marketing has represented, for some, something sinister and unwelcome in the economy; the confusion because it is difficult to arrive at a satisfactory explanation of exactly what marketing is. The fact is that marketing has increased in importance as organisations have found themselves in more crowded and consequently competitive markets and have had increasingly to rely on the market for their continued existence. It is the recognition of this dependence upon the market for the achievement of objectives that helps us understand what marketing is. Marketing is three things: A philosophy that holds that focusing upon the market is the best route to survival for an organisation; A management concept that provides a process of analysis, planning, implementation and control which enables an organisation to operate efficiently and effectively; A functional activity which offers a variety of tools from selling, advertising, production, publicity, public relations to pricing and distribution which enables the organisation to meet customer needs and communicate this more effectively than competitors.

1.1 Definitions of Marketing

There are many definitions of marketing.

Marketing is a management process whereby the resources of the whole organisation are utilised to satisfy the needs of selected customer groups in order to achieve the objectives of both parties. Malcolm H B McDonald



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At its simplest, marketing can be described as:

Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements efficiently and profitably. Chartered Institute of Marketing

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. Phillip Kotler, Gary Armstrong, Principles of Marketing

Marketing is the process of planning and executing the conception, pricing, promotion and distributing ideas, goods and services to create exchanges that satisfy individual and organisational objectives. American Marketing Association

A management process whereby we meet the organisation’s

objectives by satisfying the needs of the market



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2 Marketing and corporate strategy

2.1 Corporate strategy

Or, more simply:

Strategic management is then:

2.2 Role of marketing in corporate strategy

While marketing might be an overall philosophy of the organisation, it is clear that corporate strategy is about more than marketing alone but understanding of the market environment and customer needs and motivations will underpin all aspects of corporate strategy.

Strategy is the direction and scope of an

organisation over the long term: which achieves advantage for the organisation through its

configuration of resources within a changing environment, to meet the needs of markets and to

fulfil stakeholder expectations Johnson & Scholes, Exploring Corporate Strategy

Strategy is the determination of long-term

objectives and the means of achieving them Connor, Marketing and Corporate Strategy

An act of synthesis.

It brings together and co-ordinates the various functions of the business,

in a coherent, synergistic approach to achieving long-term objectives

Connor, Marketing and Corporate Strategy



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Ultimately, marketing connects the organisation to its audience.

2.3 The evolution of marketing in cultural organisations

While it does operate on three levels, marketing is often seen by organisations only as a function and having little to do with management. Marketing cannot serve an organisation efficiently unless it comes from the top; marketing decisions start with management decisions. Marketing is one of a number of approaches to management and marketing planning is the application of marketing principles to a strategic planning process. In understanding what marketing means as a management approach, it is helpful to look at the evolution of marketing and how it differs from other approaches to management. The diagram on the following page charts the evolution of marketing through: Product focus Selling focus Marketing focus Audience focus. Outcome focus Product Focus

Philip Kotler in his book 'Principles of Marketing' describes the Product Concept of management and the Selling Concept: "The Product Concept holds that customers

onably priced."

The Product Concept holds that customers will

respond to a product that is good and reasonably priced.

Marketing provides the sensitising antennae…

which pick up signals from the environment

The purpose of marketing is to understand potential and to promote the creativity required for

product and service development Connor, Marketing and Corporate Strategy



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Most service industries and particularly the arts industries have followed and still follow the Product Concept - as long as we produce a good public service; entertainment; preservation of heritage; libraries; information etc, people will continue to use it. The assumption is that the product is inherently desirable. There is nothing inherently wrong with this concept if the organisation can survive by it. Unfortunately, in recent years this has not been the case. Marketing in this context is primarily about information and promotion; marketing resources are relatively low and marketing has low status within the organisation. There is little knowledge within the organisation about users or potential markets. Selling Focus

In the UK the arts were generously funded between 1948 and 1980, but since then public sector funding has declined. This has meant that arts organisations have had to generate more of their income from the market place, through fundraising and ticket sales. Once an organisation can no longer survive by being product oriented, they tend to become Selling oriented. "The Selling Concept holds that customers will _ h substantial selling effort." The assumptions here are that: - the product is still desirable but won’t sell without substantial sales effort - we have to work hard to reach and keep the market - we differentiate the product - we sell the benefits of the product - we build the brand and focus on general awareness. In this scenario increasing resources are devoted to marketing and marketing begins to achieve management status, albeit tactically. There is increasing awareness of the need for market knowledge – primarily to know where to find the market. The Marketing Focus

Having experimented with and achieved some limited successes with the Selling Focus, most organisations begin to recognise that customers have their own needs and that the selling focus often suits organisations much more than it suits the customers. This recognition takes a long time to develop in most arts organisations and the extent to which organisations are able to recognise

The Selling Concept holds that customers will not buy enough of a product

unless they are approached with substantial selling effort



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customers’ needs remains limited. The next stage of development is what we term the Marketing Science Focus. This stage is a more sophisticated version of the Selling Focus than an indication that the organisation is now responsive to the needs of its customers. ."

The assumptions here are that: - the product is still desirable - but needs the appliance of marketing science to reach the market efficiently - we enhance the product by services and by developing ‘relationships’ with users - significant focus is also on existing customers. In this scenario marketing is about the medium rather than the message – using databases, direct mail, subscription, friends and loyalty schemes. There is increasing emphasis on communicating efficiently with customers and of the need to feed market intelligence into the company – to find out both how existing and potential customers view the brand and the products and to understand the behaviour of existing customers. More resources are devoted to marketing. Resources begin to be allocated to market research. Marketing achieves strategic management status. The Product and Selling concepts focus on the needs of the producers and the sellers. Through the marketing concept the organisation begins to focus more directly on the customers. For those arts organisations that have reached the marketing focused phase there is a danger of introspection, over reliance upon database marketing and of under-development of users and potential users. Customers may be being reached efficiently but more often than not the message is not being conveyed effectively. Prolonged operation in this phase often results in a decline in audiences. This prompts the move into the next phase. The Audience Focus

The Audience Focus (otherwise known as market or customer focus) holds that it is only by understanding and meeting the needs and wants of current and potential attenders and users that organisation can successfully achieve their own objectives. It is essentially this

The Marketing holds that the key task of an organisation is to identify and communicate with the target markets more efficiently than its competitors



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change of focus which makes marketing management different from what we have been doing up until now. The public perceives the services we have to offer as packages of benefits that they see as being able to meet their needs and wants. Successful marketing lies in our being able to match the benefits we can offer with people's needs and wants, and in so doing achieve our own objectives. The assumptions here are that: - the product can reach wider audiences if we adopt different marketing strategies to fit different audiences’ needs, wants, attitudes, motives and benefits sought - the organisation as a whole becomes audience focused with shared responsibilities and philosophy. In this scenario marketing becomes a two-way process of communication with customers. It is not just about identifying and targeting them but about understanding them. The acquisition of market knowledge is taken a step further to include an understanding of the needs, wants, attitudes of and benefits sought by customers. Resources are allocated as appropriate to achieve objectives. Allocation of resources to market research becomes increasingly important. Arts organisations find themselves at particular points along this evolutionary continuum. Whatever the stage of development, basic principles of marketing can be applied to make the organisation more effective at reaching and communicating with its markets.

The Outcome Focus

A more recent development is for organisations to move from being audience-focused to being outcome focused. This means taking concern for audiences their needs to a point where planning evolves around defining what period, learning and social outcomes and impact, or benefits the organisation seeks to effect through its activity. Success is measured according to the extent, to which those impacts are achieved.

The Audience Focus holds that the key task of an organisation is to determine the needs and wants of

the target market and to adapt the organisation to delivering the desired satisfaction more effectively

and more efficiently than its competitors



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2.4 The purpose of marketing

Marketing helps you to: Set realistic organisational objectives Identify clear targets for achievement Evaluate the performance of your organisation Get to know your particular market Get to know your product Understand what influences the effectiveness of the organisation both within your organisation and outside in the market environment Communicate effectively and efficiently with your market Monitor and evaluate your progress Marketing Planning Is a process, which helps an organisation to market itself successfully, encouraging a methodical consideration of all the factors that can affect the organisation's effectiveness in relation to the market. Much of this process is, as will become apparent, based upon common sense and a great deal of it is already being practised within organisations. By explaining the process this document will hopefully help to slot the right pegs into the right holes and clarify some terms.



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2.5 WHAT IS AUDIENCE DEVELOPMENT?

Audience development describes an audience-focused approach to arts development. As a term and a process it can be interchangeable with that of marketing, when marketing is regarded holistically.



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3 The Marketing Planning Process

ANALYSIS What are you here for? What are your expectations? Where are you now?

How well are you doing?

PLANNING Where do you want to get to?

How do you plan to get there?

IMPLEMENTATION What will be done? When and by who?

How much will it cost? How will you monitor the

progress?

EVALUATION Starting again… What have you learnt?

Situational Analysis Marketing Audit & SWOT

Marketing Mission Objectives & SWOT

Marketing Strategies

Monitor

Devise & Implement Plans

Review

Organisation Purpose



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4 Purpose and aims of the organisation

What are we here for? The answers to this question have to be the first step in devising your Marketing Plan. Reviewing the basic purpose of your organisation, its stated policy and what it is trying to achieve are crucial for a thorough and objective analysis of the performance of the organisation. Marketing is based upon the principle that each organisation is guided by a basic purpose and that there are people who are sympathetic with that purpose and whose needs and wants the organisation can satisfy. These are the people who make up the market for that organisation. Without clarity of purpose it is difficult to identify and locate the market. Answering the following questions will help arrive at a clear definition of purpose: What do we do? Who do we do it for? How do we do it? Why do we do it? Mission

- overriding purpose of the organisation - in line with the values and expectations of stakeholders Vision or Strategic Intent

- desired future state of organisation - main intentions and aspirations - reasons why organisation exists - the logic and the dream Reviewing previous achievements and milestones will add context to this appraisal.



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5 Situational Analysis

Where are we now?

How well are we doing?

5.1 Situational and SWOT Analysis

Before deciding on an appropriate marketing strategy it is important to know what the starting point is. The Situational Analysis is a critical review of the current situation of your organisation. This is determined both by the internal and external environments in which the organisation operates. Indeed this is sometimes called the ‘Environment Analysis’. There are three stages to the Situational Analysis: 1. Marketing Audit This is a snapshot of where the organisation is now. To review the current situation and performance of an organisation requires a Marketing Audit. Done properly this can take a significant amount of time, but gives you invaluable information for the future management of your organisation. 2. SWOT Analysis This is a summary of the key factors arising from the Marketing Audit presented as the strengths and weaknesses of the organisation and the opportunities and threats facing the organisation. 3. Implications The final stage of the Situational Analysis is a statement of the implications arising from the findings in the Audit. These findings must be evaluated and prioritised to provide direction for the Marketing Strategy. The diagram overleaf illustrates the range of factors considered within the Situational Analysis.



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Situational Analysis

Internal Environment

External environment

Controllable Operational variables

Uncontrollable Environments Market Variables

Organisation

Mission, Objectives and goals

Product

Income

Sales / attendances

Audiences / customers

Marketing Approach Marketing Resources

Marketing Activity

Monitoring & Evaluation

Potential Markets

Competition

Macro-environment Social Technical Economic Political Legal Cultural Demographic

Strengths

Weaknesses

Opportunities

Threats



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5.2 Internal environment

The Organisation

Statement of Purpose – Mission / Vision Aims - how the Mission will be achieved Objectives - actual goals for achievement History and structure Board and management structure The Product

Nature of services; Programming policy The site and its buildings; Quality of customer care; Knowledge and manner of staff, Atmosphere and ambience, External aspect and accessibility. Facilities

Services; Toilet facilities; Access and parking; Cafe, Restaurant, Bar Car Parking: You are reviewing anything that can affect the experience of the attender or user. Income

You need to analyse your income levels and income sources: Income by attendances / usage of different facilities; grant-aid; sponsorship; fundraising education; cafe; merchandise; services; special events: office rentals. These figures need to cover at least the last three years, longer if appropriate. You are looking for trends, are figures rising or falling, are they rising in places and falling in others? Can you explain the trends?



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Attendances / usage

You need to give annual figures for as many years as you can, by year and by month, by courses, performances, hires, events, exhibitions, and other categories appropriate to your own organisation. Again, you are looking for trends: Have figures gone up or down or stabilised? Which weeks or months, categories of product are the busiest, Which are the quietest? Attenders / users

Detailed knowledge of attenders / users requires audience surveys, although a substantial amount of data can often be gathered ‘in-house’. However knowledge of users is essential for informed analysis and planning. You want to know: who your attenders / users are; where they come from – geographically and by type of origination; who they come with; what age they are; what made them come; how long they stayed; what they liked best about their visit; what they didn’t like; how they found out about you. This is all crucial information to your marketing plan: knowing who already comes can help you identify the markets you need to attract in the future; knowing what makes them come tells you which publicity method is most effective, and where you are wasting money. Knowing what they like best tells you whether you are promoting the features of your products that mean the most to people in terms of benefits. Market research data can also help you distinguish between your attendances and your attenders. Do you have a small existing market of individuals who come very often, or do you reach a great many people who come only once or twice a year? You can estimate the approximate size of your existing audience by asking people in a questionnaire how often they come. By calculating the average frequency of attendance and dividing the total attendances by this figure, you have the estimate for total number of users.



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Marketing Resources

What is your marketing budget? What staff are there to work on the marketing effort? What are their levels of skills and experience? Do you have any volunteers to help with any aspect of marketing? What physical equipment and resources do you have? Do you have external / collaborative help with marketing?

Marketing Approach

Stand back and take a cold critical look at your present marketing effort. How strong and appropriate is your corporate identity? Does it communicate your purpose and speak to the right people? What marketing tools do you use? Does your print / e-media/ other tools do you justice? Is it saying enough about you, is it taking user’s / potential user’s familiarity too much for granted? What about your distribution - are you getting your marketing communications to as many places as possible, or could you do better? Are you spending too much, or enough on marketing – what effect can you see from that expenditure? Marketing Activity

Outline your regular marketing activity. What do you do and when, and how often? Include: Print; Distribution; Press Activity; Direct marketing – mail / telephone / e-media; Previews; PR; Talks / tours; Special events: E-media etc. Anything else you carry out which you feel contributes to informing the public about you. Depending on the complexity of your range of products / activities you may find you need to undertake this separately for different areas of work. When you have addressed all of these points and come up with answers in the form of statistics or qualitative analysis you have completed Part 1 of your Marketing Audit.



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It is far simpler to conduct a marketing audit if there are research and intelligence systems in place or available to plug into. These can be simple and inexpensive. A large amount of data is often available in-house. The systems can include: Putting out simple survey forms, which you analyse on a regular basis can tell you about your users. Being on other organisation's mailing lists can keep you informed; Computerised accounts systems, databases and Box Offices now store enormous amounts of invaluable data. Undertaking evaluation interviews with key users can yield valuable feedback. More detailed comments on Marketing Information are included in ‘Monitoring The Marketing Plan’ further on in the document.

5.3 External environment

Organisations do not operate in isolation, but are affected by what is going on in the external environment. The key external factors affecting any organisation are Competition and the Potential Market. In the wider, macro-environment, factors that can influence organisations both positively and negatively are known as the STEP factors: Social Technological Economic Political plus Legal, Cultural and Demographic. The more aware you are of the effects these factors can have on your organisation, or on the market, the easier you will find it to anticipate and plan for those effects. Thus, an anticipated drop in funding, a new source of potential users, the opening of a similar organisation, an up-turn in the economy, changes in education etc all need to be considered as potential Opportunities or Threats to the organisation.



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6 Competition

Understanding the competitive environment. How desirable are we? What market are we operating in? Who or what is our competition?

6.1 Market position

Where your organisation sits in relation to other organisations in the market / potential competitors is known as your Market Position. You determine this by finding out: Which organisations do you see yourself as being in competition with? How many similar organisations are competing for your users? How many similar organisations and issues are competing for funders’ and sponsors’ money and goodwill? What are competitors’ resources like in relation to yours? How does their performance compare to yours? To what extent are potential competitors’ actually collaborators?

6.2 Analysis of Competitor Strategies

It is important to analyse the organisations competing successfully for your target market's time and money in order to be aware of the impression held of these organisations by the target market, the most attractive and unattractive characteristics of these organisations, what it is that makes them successful or otherwise. Competitor

Strengths

Weaknesses

Strategies

Plans

This analysis is used to inform the market position you choose to adopt, which is discussed in Section 10: Positioning.



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7 The Market

Having identified who is visiting, now is your opportunity to explore who you might attract. What does your internal analysis / audience survey tell you? Are there large geographical areas that you realise are under-represented in your analysis of attenders? Are there age brackets that you feel are missing, or groups - do you feel that school, adult or family users have adequate representation? If you have social or community policies are you achieving them? Can you identify groups of people who you feel will help you achieve your aims? What is the size of your catchment area and the size of your potential market?

7.1 Potential market

The Market for our product consists of people whose needs and wants we can satisfy. This is generally a relatively small proportion of the total available population. In the arts we are involved in niche marketing. The potential market for your particular organisation or artform can be defined as those who: Two factors prevent us from making our product available to the whole market: We have limited resources of product, people and money People have very different tastes, needs and values For this reason, in order to channel our resources at the segments of the public whose needs best match our aims, we divide the public up into market segments.

have a potential interest in the product and the ability to gain access to it



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Definition The task in segmenting markets is to channel resources at the people most likely to respond to your message, and not to waste valuable effort on the people who are unlikely to have any interest in your organisation or its products. You identify target groups as those who: • are sympathetic with the aims of the organisation • are responsive to the product • are able to be reached within the resources of the organisation. • are able and willing to respond to the offer

It is also important to remember that not all target segments are customers. We might need to reach: • Funders • Stakeholders • Donors • Clients • Sponsors • Decision- influencers • Consumers or End-Users.

7.2 Bases for Market Segmentation

There are many different ways of segmenting markets. Traditionally, the arts have used demographic and behavioural segmentation models. Increasingly, organisations are turning to psychographics. Demographic Segmentation

by age group by geographical location by social status by occupation by ethnic origin by sex by marital status

For example you might isolate as a target segment women, as you feel that your product will appeal more to women than to men or children or teenagers etc or that women will make the decision within family parties or groups or couples to visit.

A market segment is a group of people with shared needs



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Behavioural Segmentation

Relationship to organisation Frequency of attendance This is an approach to segmentation widely adopted by arts organisations, which separate people out according to their loyalty to the organisation. The more loyal people are, the more frequently they are likely to attend. A factor often overlooked is that, in concentrating on those who already attend and in trying to increase their frequency levels, we often forget that there is a large potential market which is ‘Open to Persuasion’.

Benefit Segmentation

Another approach to segmentation is to segment by the benefits that customers seek from the product. For example we might identify people who seek family entertainment, challenging, thought provoking entertainment, or a complete night out with food and parking package. Benefits sought reflect the needs that customers have.

Psychographic Segmentation

• by lifestyle • by attitudes • by interests • by media orientation • political orientation • religion A psychographic approach to market segmentation is based in understanding customers’ needs and wants. For example you might isolate as a target segments anyone interested in contemporary issues, or by the fact that people are



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innovative in their tastes and are therefore fashion-leaders, as has been proved to be successful in targeting potential art purchasers. An approach which we are increasingly using is to segment people according to how open they are to risk. This is based on the model of the Diffusion of Innovation which identifies the number of people in any group who are open to adopting new ideas, as opposed to those who wait to adopt something once it is well established in the market.

Using this principle we can identify those in our audience who are open to new or contemporary work as opposed to those who prefer to see work which has been well endorsed and is established as a safe choice. Here we are segmenting people according to the degree of risk they are willing to take with their choice of event or artform.



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The process of segmenting customers is a fluid, flexible one. Approaches to segmentation might include one or a combination of methods. The correct approach is whatever offers you the best proxy for clustering people according to their needs as it is only by understanding and grouping people according to their needs that we can really be effective with our marketing strategies and communications. Targeting

Targeting is a fundamental principle of marketing. Having identified the market segments the aim is to direct your resources at those segments that stand the best chance of responding to your offer. This involves literally targeting your resources as if at the centre of a bulls-eye. The best approach to this exercise is to see the segments you are targeting as not so different from you or your existing customers, they just require a little extra effort, the further out from the centre they are.

Attenders

Committed

Intenders

Semi-committed

Dead-enders

Non-committed

Developing New Attenders?

For many arts organisations, it isn't those who are already interested who are the problem, it's the ones who are not, but who the organisation is supposed to be serving by providing a community resource, who pose the challenge. Or else there is an awareness that the present attenders are under-represented in one particular segment such as families, young people or ethnic groups, and it is also the purpose of the organisation to reach these groups.



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Targeting helps organisations reach these people by approaching the task in a different way. Instead of focusing the marketing or publicity activity on those people whose needs the organisation already meets, targeting new areas of the market involves identifying the new segment and researching the needs of this segment in order to develop new services or highlight existing services that reflect these needs, and establish new ways of communicating this information to these customers. If you are developing new markets it is necessary to review the whole marketing mix and introduce new elements which are perceived as benefits to those target segments, for example interactive displays if you wish to attract more families; baby changing rooms; black outreach workers. Identifying and promoting the organisation through benefits as opposed to features not only helps in establishing a distinct market position, this process is also essential for focusing on the most relevant factors in creating effective publicity literature. Very often segments are identified by a combination of these considerations, for example a segment might be young men aged 18-35, living within 20 miles of a venue, who are interested in contemporary issues. Or else, for campaign purposes, a large target segment of anyone interested in contemporary issues might be broken down into smaller segments like students in full-time education; the thirty-something generation; retired people etc. Establishing the needs of these segments involves research; asking people, surveys, looking at what other venues offer which can attract these people, comment and suggestion boxes needn't cost a great deal, but help you make informed decisions based on more than just gut instinct. Criteria for segmentation

Segments should: • Have similar needs • Identified differences • Be reachable through communications • Be able to respond in a desired way • Be able to respond in different ways to different marketing mixes



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Segmentation approaches should allow for: • Measurability – segments should be capable of being quantified • Mutual exclusivity – segments should be sufficiently

differentiated and distinguishable to justify different treatments • Accessible and actionable – the segment should lend itself

having its specific needs met and being reached through communication media

• Size or substantiality – the segment should be large enough to

promise a worthwhile return on investment.

7.3 Market Trends

Demographic and psychographic market trends will affect consumption of culture in the future, including: Limited and competing leisure time

The UK has the longest working week in Europe: UK adults have 60 hours of free time per week on average. The average number of hours of free time has reduced over the past three decades. People consequently seek to balance the exertion of work by seeking and enjoying leisure time as an end in its own right (Henley, 2000).

Free time is particularly squeezed for some. Women now constitute almost 50% of the workforce. Those working full-time and those with dependent children, particularly women, have significantly less free time per week than other groups. Time is becoming a precious resource. Lots of leisure pursuits are now competing for this limited free time and time has become a currency for many people; value for time is just as important as value for money. (Henley, 2005)

At the same time, working structures are less rigid. The typical 9-5 working week is changing, with a growth in part-time, flexible and contract working forecast.

Multiplication and fragmentation of leisure market

More time spent in 'third spaces' than ever before We spend an ever-growing proportion of our leisure time ‘out and about’. Time not spent at home, at work or travelling has more than doubled since 1960. 60% of the population agree that they enjoy a wide range of culture and entertainment, from serious culture to light entertainment. Variety and personal fulfilment are leisure goals. (nVision)



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We pack a wider range of leisure activities into a similar amount of time: the leisure market is becoming increasingly fragmented. The number of different leisure activities engaged in during 12 month period has increased from 5.5 in 1970, to 10.3 in 2000.

Mintel (2006), in a 2005 study of day trips, estimated that there were an estimated 492 million visits to attractions in the UK during 2005, spread across approximately 7,000 attractions for which visitor figures are available. Mintel define ‘days out’ as ‘a visit made to an attraction or place that takes up a substantial portion of the day, typically three hours or more’, so this clearly does not include all museum visitors. However, what is important, is that the figures show that museums / galleries were seventh on the list of places visited, accounting for 26m visits annually, an increase of 2% on 2004.

Places visited for a day in the past 12 months

% of adults aged 15+



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Travel-time a key determinant in trip taking

Travel time is of key importance on day trips – the availability of attractions in the vicinity of the consumer's home has considerable bearing on their activities. Attractions view residents living within one hour's drive time as being their core days out customers, with those living between one and two hours away as the next most important. The proximity and site of a local attraction is often a stronger factor than its actual character in influencing the decision to visit. (Mintel, 2006).

Recent future casting research suggests that increased time pressure and advances in communication technology have created shortened planning horizons: visitors are deciding to attend leisure attractions later than they were. (nVision).

Propensity to visit cultural attractions

According to DCMS’ Taking Part research, nine out of ten UK adults had engaged in at least one form of cultural or sporting activity during the past 12 months. Cultural attractions are defined by DCMS as including museums and galleries, historic environment, libraries, archives, arts and participation in arts or active sports.11. 42% have visited a museum or gallery, 69% have visited an historic environment site and 66% have attended an arts event. (DCMS)

More older people, and more active older people

The UK has an aging population: by 2010 there will be nearly three million more 45-64 years olds and two million fewer 25-34 year olds. This Baby-boomer generation will be wealthy, active and celebrating their age. By 2010, 40% of the population will be aged 50+. By 2050, the median age of the UK population is projected to be 46 years old compared to 38 years old in 2005. (Henley, 2000)

Less traditional family units

Non-traditional households are showing the fastest growth, particularly one person, multi-person, lone parent and co-habiting households. Only 1 in 3 households are ‘nuclear families’. 1 in 4 women born in 1972 will not have children. (Henley, 2000)

More wealth, and more disposable income

In the last five years, the upper socioeconomic groups (AB and C1) have expanded by almost 12% and 10% respectively. This is good news for the days out market, which relies on disposable income. These groups will continue to grow over the next five years at a slower rate. Real incomes have grown considerably in the past



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decades and the majority of the UK is getting richer. Disposable incomes have doubled since 1971. (Henley, 2000)

Increasing inequality and the ‘rise of rights’

At the same time, there is increasing disparity between the richest and poorest in society, which results in inequality of access. This has resulted in increased government and funder focus on access for all to public services. (Henley, 2000)

City centred

Increasingly mobile workers, regeneration and city living has seen a gravitation towards cities. Cities are viewed as tolerant and outward looking with good public spaces and culture.

More graduates

Trend data shows increases in the number of graduates in the UK and in the proportion of the population in the higher socio-economic groups, potentially increasing the proportion of the population who have the propensity to take part in cultural leisure activities. In 2005, 35% of 24 year olds were graduates. (Henley, 2000)

Desire for wellbeing and rich quality of life

As people’s basic material needs are satisfied we are moving up the hierarchy of needs, from wants to desires. (Henley, 2000) At the same time, people are less happy overall - over half of adults say they are unhappy with their standard of living and 38% would take a pay cut for less stress. (Henley, 2005) Wellbeing is becoming more important than affluence.

Rising expectations and willingness to pay

People are becoming more demanding. Expectations of quality, value, friendly and flexible customer service are rising.

People are prepared to pay more for experiences than goods. Consumers are looking for a range of leisure experiences, including those that offer an ‘oasis’ from their busy lives: experiences that provide a counterbalance to hectic work and leisure activity. (nVision).

Marketing savvy

Consumers are now bombarded with choices. They are 'commercials veterans', inundated with up to 1,500 pitches a day. Far from being gullible and easily manipulated, they are cynical about marketing and less responsive to entreaties to buy. Some of the most cynical consumers are the young. Nearly half of all American college students have taken marketing courses and ‘know the enemy'.



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Increased distrust in corporate messages

A recent survey shows that people's trust has shifted away from authority figures and towards 'average people, like you'. 58% of Americans trust only the opinions of medics and academics more than they trust the opinions of people like themselves (68%). This means that people are increasingly disinterested in neatly packaged marketing messages, and want to engage and be engaged in conversations. (Edelman)

Personalisation and DIY media

Globalisation and affluence create a world of endless choice. Consumers are becoming increasingly selective and greater expectations that what they access and purchase can and will be personalised to their needs and interests. This includes development of personalised ‘DIY media’ where consumers create and schedule their own sources of information. (Edelman)

Polyglotting

The erosion of traditional social structures of gender, religion class and education means that individual identities are becoming increasing complex. Media and technology means that people now have access to a more diverse range of influences, lifestyles and cultures than ever before. People seek to actively self-define their identity through reference to these plural sources, meaning that identity itself is becoming increasingly diverse. The implications of this for the arts are:

• People will dabble more, 'snacking' on bitesized pieces of culture. Organisations therefore need to offer experiences appropriate to this mode of consumption.

• Diversity and speed become key to attracting audiences.

• There will be great competition for the attention of these consumers. (Henley, 2000)

This leads to what have been described as ‘modal consumers’, who negotiate multiple roles such as self, family, citizen, worker, friend, consumer. (Henley, 2005)

Authentiseeking

Decline in trust in global companies and the desire to be individual combined with the growing experience economy and the proliferation of virtual experiences has produced a growing desire to obtain the original against a mass market filled with falseness. Implications for the arts and heritage include:

• Increasing importance of seeing 'the real thing' against backdrop of virtual access and screen-based museum exhibits. Morris



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Hargreaves McIntyre has observed this trend in a number of recent projects, for example where there has been strong interest amongst general visitors in visiting museum stores to see real objects. It seems that digital access to collections can never be a replacement for the resonance of a real object.

• Increasing importance of live and original experiences to those who choose them. (Henley, 2000)

Cult of self-improvement

Aligned to this is increasing desire for self-improvement as illustrated by increasing interest and take-up of life coaching, evening classes, learning holidays, ‘bibliotherapy’ and growing interest in books and book clubs. (Henley, 2005)

Connoisseurship

Rise in disposable income and the increased need to actively create and assert individual identity combined with easier access to information and increasingly limited time means that people are looking to add value for time by becoming connoisseurs – in any subject, however obscure. Implications for the arts and heritage could be:

• Increase in interest from small specialist audiences for specific cultural products

• Increase in commitment to specific field of interest – increase in frequency but not necessarily loyalty to specific organisations

• Heightening exclusivity of some cultural activities (Henley, 2005)

Perfect moments

Growing wealth and shrinking spare time together with heightened aspirations due to the exposure to celebrity lifestyles means that people are increasingly seeking experiences that offer fantasy as reality as an antidote to the pressures of modern life. Implications for the arts include:

• Increasingly demanding consumers who will expect all elements of the experience (including the toilets) to live up to their high expectations.

• Interest in value for time experiences – a market for concentrated (short, extreme) performances.

• Increasing need for flexible opening hours and programming times.



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• The need for guarantees and risk-free choices.

• It may become more difficult to market 'difficult' and less immediate experiences. (Henley, 2005)

People as 'players'

Satisfaction of human needs at the lower level due to increasing income means that people are now looking to fulfil their wants – to escape from the increasingly pressurised daily grind, and are turning to play as a way to self-define. The implications for the arts include:

• High demand for interactive experiences.

• Growing interest in participation.

• Increased spending on leisure time, but more competition between leisure activities for customers. (Henley, 2005)

Communal yearning

Consumers long to connect with each other, but the decline of traditional social structures, increased mobility, technology and less leisure time mean that the idea of 'community' is being defined. Implications include:

• Growing importance of social networking sites and social network marketing in targeting potential audiences.

• Growing importance of word of mouth recommendation.

• Trends of communities forming to participate in the arts.

• Trends of communities forming as a result of artistic engagement. (Henley, 2005)

‘Always on’ society

Increased use of mobile phones means ‘Always on’ is becoming the default – switching off is now a choice. This is leading to similar expectations around access to services, particularly among younger people. (Henley, 2005)

Multiple market segments

All these factors illustrate that people have multiple ‘identities’ and operate in different modes depending on their role and needs at any particular point in time. The same consumer can vary in behaviour more on two different occasions than two different consumers on the same occasion. This has implications for how we group identify different groups or ‘segments’ of consumers. The same person for example might be an independent adult visitor on one occasion and a family visitor on another or a connoisseur in one context and a self-



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improver in another and in each guise will have different needs, motivations and expectations.2

Personalisation and participation

From the trends highlighted above, there is a clear move towards customised experiences, accessed at a time and in a way that suits the consumer and tailored to suit the consumer's needs. These together with the impact of information and communication technology, and the imperative for publicly-funded arts organisations to prove their value to the public, point to a clear trend towards personalised services and user participation.

The prospect of greater choice and personalised services is being used by the government to drive improvements in many areas of the public services, partly by raising voters' expectations for better, faster personalised services. This involves two main strands – equipping the user to tailor the experience to their needs, and allowing the user to co-produce the experience by actively participating in its production.

Cultural organisations are therefore coming under increasing pressure to become responsive, customer-focused organisations and to engage customers in dialogue and collaboration. Some argue that personalisation could be a key source of product innovation for the arts, helping to ensure the visit experience is tailored to the needs of potential users. However, most arts organisations still offer predominantly preset programmes at fixed times and a single location.



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8 The Challenges Of Audience

Development

The people who do attend the arts do so because they recognise that the arts can meet needs and wants that they have: needs for:

• Social interaction • Doing something different • Escapism • Entertainment • Education • Self-improvement • Stimulation • Inspiration • Creativity • Self-expression • Shared experience • Celebration • Spirituality • Relaxation

and many more. These are very human needs that the majority of human beings feel.

Hierarchy of Motivation to Visit Museums3

Morris Hargreaves McIntyre has identified and quantified the range of motivations that people hold for visiting museums, galleries and other arts activities. This model is a useful way to divide visitors by their principal motivation i.e. by the needs they are satisfying by visiting.

Based on the degree of engagement, the ‘needs’ are arranged into the following hierarchy;



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Hierarchy of motivation

© MORRIS HARGREAVES MCINTYRE

Spiritual – seeking a place for transcendental experience and soul food, likened to a church

Emotional – visitors looking for somewhere for essential, regenerative therapy, likened to a spa

Intellectual – seeking a resource to feed their formal or informal studies visitors, regarding the museum/ gallery as almost an archive

Social – museum as a visitor attraction, a place to see, to ‘do’

Examples of particular visitor motivations detailed in a range of different reports and studies include:

Intellectual – Museums can enable visitors to deepen their understanding of a subject area, ‘I am interested in historical and military issues, I would come here to do research and listen to the lectures…4

Emotional – Museums at a site that is part of the whole experience, e.g. industrial heritage museums, old reconstructed factories with working equipment, ‘These kind of museums provided a sense of



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discovery, a range of different experiences and gave visitors the chance to explore for themselves’5

Spiritual – Museums and galleries can be inspirational, stimulating creativity, ‘I saw work by Andrew Logan …it was made with smashed mirrors and beads and it inspired me to go home and play with materials, to create similar things myself’6

Research tells us that the reason why people don’t attend the arts is because they cannot see arts activities meeting these needs, or because specific factors prevent them from feeling able to use the arts to meet their needs.

A great deal of research has been carried out into identifying these ‘obstacles’ or ‘barriers to attendance’.

Understanding The Barriers To Attendance

The first step in considering what cultural organisations should or could do to combat access problems is to recognise the barriers that, it has been suggested, prevent their inclusive use; for example museums and galleries need to ‘examine the circumstances of their communities, and the reason why some people do not make full, if any, use of their services’.

The barriers to use of museums have been analysed in both the DCMS report and in Dodd and Sandell’s ‘Not for the Likes of You’.7 The DCMS report identifies them as;

• Institutional

• Personal and Social

• Related to Perceptions and Awareness

• Environmental

DCMS Barriers to Museum Usage

Institutional: These are the barriers that museums and their staff create that discourage usage by certain people or sections of the community. They include:

• Unsuitable or unduly restrictive opening hours, or restrictions upon the availability of services

• Inappropriate staff attitudes and behaviour



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• Direct and indirect discrimination

• Inappropriate rules and regulations

• Charging policies that disadvantage those on low incomes

• Acquisition, exhibition and cataloguing policies which do not reflect the needs or interests of the actual or potential audiences

• Lack of signage in buildings, so that people cannot easily find their way around

• Lack of sense of ownership and involvement by the community

• Lack of adequate provision of services or facilities for people with disabilities

Personal and Social: These possible causes of social exclusion can be experienced by individuals, or as a result of cultural or community circumstances. They include:

• Lack of basic skills in reading, writing and communication

• Low income and poverty

• Lack of social contact

• Low self esteem

• Lack of permanent fixed address

Perceptions and Awareness: The notion that museums are ‘not for us’ exists in both community and individual terms. This perception causes difficulties for:

• People who are educationally disadvantaged

• People who live in isolation from wider society

• People who don’t think museums are relevant to their lives or needs

• People who lack a knowledge of facilities and services, and how to use them

Environmental

• Difficult physical access into and within buildings

• Problem estates and urban decay

• The isolation experienced by people in rural communities



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• Poor transport links

Other Studies

Other studies have been undertaken to try and understand why people do not visit museums and galleries and these echo those identified by DCMS and Dodd and Sandell. Physical Barriers

• Physical i.e. disabled access, people with prams, cost, travel, childcare8

• Other physical barriers include: transport – access to public and private, availability of information, lack of time and no-one to go with9 as well as effort to go10

• Lack of awareness i.e. that a museum exists or a limited awareness, e.g. a large national museums against (and at the expense of) local museums11 (especially in London)

• Information gaps i.e. how to get to a museum, opening times, suitability of content, facilities for families, where to find information12

• Lack of facilities e.g. for people with physical and sensory disabilities, resources that do not cater for particular groups or minority communities and facilities for young children and toddlers13

• Cost is a barrier but ‘short term initiatives such as free or cheap tickets, have little long-term effect and cannot be the basis for a relationship with an audience for whom price is a genuine obstacle to participation’14

• Management ethos e.g. inappropriate staff attitude, inappropriate rules and regulations, inadequate staff training to address groups with specific needs, inadequate organisational practice, direct and indirect discrimination by management, other users or wider society. ‘Management ethos has the most detrimental effect upon; low income households, socially disadvantaged/ low achievers, people lacking basic skills, ethnic minorities, teenagers, unemployed, disabled and C2DE socio-economic groups’15

Perceived lack of relevance

Moore’s study in Ireland identifies five barriers; financial, practical, social, physical and cultural, ‘people living in poverty were unlikely to attend even those events which were free… The social and cultural



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barriers are the most difficult to remove …the arts are inaccessible, therefore irrelevant’16

Arts has little connection with everyday life17

Cost and inconvenience mask a more deep seated discomfort with the arts18

Lack of interest, i.e. museums and galleries do not house collections that are relevant, people have stereotypical ideas about what a museum is, a bad experience of an earlier museum trip informs an opinion and deters from further visits to other sites19

Only for ‘boffins’ i.e. people with specific interests20

Lack of confidence

• The perceived risk of attending an arts event against other forms of entertainment for non-attenders is very high; 60% of non-attenders in London stated that they did not like going to see things that they did not know much about21

• Fear of not understanding – those people who do not think they will understand what they are seeing are more likely to believe they will find the trip boring, ‘Some people believe that museums and galleries require specialised knowledge, e.g. history, context, and importance of exhibits, how and why they were created and what stories about the past they embody22

• ‘[Some] people are ‘socialised’ into visiting museums …they have been almost pre-destined (by family and education) to visit because they have been socialised into accepting the value of such cultural institutions from an early age.’23 Those that have not experienced this socialisation process do not view museums as part of their life

Research into Specific Audiences

Studies have also been undertaken that examine the attitudes and needs of particular groups of people.

Cultural identity

A report commissioned by the Museums and Galleries Commission (MGC) entitled Cultural Diversity: attitudes of ethnic minority populations towards museums and galleries24 explored the barriers that exist for a range of ethnic minorities and what organisations



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could do to remove these barriers and meet the needs of these visitors. These findings were also supported by the London Museum Service report ‘Dingy places with different kinds of bits25.

• Black and South Asian people in particular felt that few museums

contained displays which related to their cultural backgrounds

• Many Black people felt that their contributions to British society were ignored

• Lack of racial representation inhibits attendance and sensitivity to where artefacts are derived and presenting a colonial view of history26

• Images of their homelands were often negative and they were keen to seen positive presentations to redress this balance

• Some considered the interpretation of the past was colonial and biased rather than accurate

• Access to information about museums and galleries and interpretation contained within the venues was difficult for people who spoke little or no English

• Some Black and Asian visitors felt unwelcome in museums – these feelings were also found amongst young people and other potential visitors

Families

The single most important issue for families is the view that the arts in general are not perceived as ‘family entertainment’27 Families have a particular set of needs that must be met before they choose to visit museums and galleries. Research undertaken by Morris Hargreaves McIntyre28 and Harris Research Centre29 found that families were concerned that:

• Children would not be made welcome in a museum or gallery and

they would disrupt other visitors

Children by their very existence are noisy things ….It doesn’t bother me but I think it might bother other people and that is the perspective I have’30

• There would not be enough to entertain and engage children and

the family as a whole



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‘Lack of activities to engage the child when you get there – children don’t just like looking, they want to get involved31

• Museums and galleries are not perceived to offer a day out, in terms of the activities and facilities available

Other studies of family behaviour identify the need for participation, involvement and engagement; physically, intellectually and emotionally

‘Inter-active displays – ‘Children liked to make things happen and see what was going on’32

Family events - ‘This could get round the parental concern that their children might be too boisterous for the quiet atmosphere of a museum or that they might get bored’33

Content and collection as well as the style of delivery are the key success factors34; museums whose displays ‘brought the past to life’ are popular with parents and children, e.g. reconstructions of rooms or houses as they would have been, displays which showed things working such as engines at industrial sites and staff in character or in period costume.35

Young People

• Young people feel that museums and galleries hold nothing of interest are dull and uncomfortable, they felt museums had nothing of interest to them36

• Displays are perceived as ‘static’37

• Museums are seen by the young as ‘mazes’38 with poor signage and orientation

• 15-19 year olds had a negative association that the arts were primarily for older, middle class people and ‘uncool’39

• The arts are not perceived by young people to be entertaining a good night out, being value for money and an enjoyable social event40



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Older people

The main barriers amongst older people tend to be physical and psychological41 and these issues can determine their leisure activities in general not just their attitudes toward museums

• Ill health ‘I am retired through ill health and there is not a lot I can do’

• The cost of transport and general difficulties of ‘going out’

• Fears about safety

These references provide an analysis of reasons why people may not use museums and galleries. Similar factors prevent the use by more people of theatre, orchestral music, dance and all of the other cultural offers. For an audience development strategy to work effectively, and be sustainable, it is essential to understand the barriers to attendance and address these in the way in which the product and service are designed and in communications with the target groups.



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9 Market Research

Why conduct Market Research?

Market research is an important tool in understanding the market It can inform: • Organisational planning and development • Product planning • Marketing planning • Promotional planning • Audience Development Destroying the myths: • It need not always involve additional time and money • Often tells you more than you think you already know • The only way to explode myths and misconceptions • Need not result in streams of statistics • Dispels uncertainty



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The Process

Take a systematic approach:

Stage One: Setting Your Objectives

Most important element Required to give the research direction Consider: • What information you need • Why you need it • How you will use it • What you would do without it (1) Business Objectives - what you aim to achieve. To understand whether current promotional activities are cost effective (2) Research Objectives - what you want to find out. To establish which information sources are being used and which would increase awareness Ensure they are: • Understood and agreed by everyone in the organisation • Simple and clearly defined • Measurable



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• Achievable (timescale and resources) The Need For Research

Before embarking on any market research find out if the data already exists – internally or externally (Secondary Research) Secondary or Desk Research

Data already in existence but has not been collected in direct response to a problem that has arisen Invaluable exercise - can save time and money Vital for establishing potential market size Internal

• Talk to people in the organisation – FOH staff, volunteers • Read comment books and analyse sales records • Previous research reports External

• Funding bodies – ACE, RAB, bfi • Local authorities, BTA, Regional Tourist Boards • Other RFTs • Generic data - Dodona, CAVIAR, TGI, ONS, PSI Still may require data to be collected specifically to meet your objectives (Primary Research)

9.1 Stage Two: Writing A Research Plan

Three key elements: (1) The Sample and Sample Frame Who you will talk to and when (2) The Methodology How you will consult them (3) The Questionnaire What you will ask them The Sample

‘The people you want to consult’



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Described as the population – the whole of the material from which a sample may be taken. e.g. all bookers from the past 12 months Census = survey of all members of the population Sample = survey of a representative part of the whole Sample Size

Depends on: • Level of detail required – sub sets • Range of people you want to consult • Time and resources available Robust minimum sample size - 100-150. 200-250 recommended for quantitative research Sample frame – Criteria for the sample

Quotas – age, gender Timetable and deadlines - snapshot survey, 12 months

9.2 The Methodology

Making an informed decision depends upon: • Understanding your range of options – what methods exist and their advantages and disadvantages • Deciding who you will collect information from and what might be the most appropriate method for this group • Are there any time or resource issues? – Can you do the research in-house? Can you commission an agency? Have you got time to complete a postal survey?

Methodologies

Primary Research consists of: Quantitative Research Conclusive research on relatively large samples for measuring the incidence of views For example:



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• In home surveys • Telephone surveys • On-street surveys • In-venue surveys • Postal surveys • Self completion surveys Qualitative research: Exploratory research on small samples using unstructured or semi-structured techniques For example: • Focus groups – re-convened, extended, mini groups • Depth interviews – individual, paired, trio



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9.3 Quantitative vs Qualitative Research

Quantitative Research

Quantitative Research Uses Qualitative Research Uses Generating quantifiable data Image, positioning and brand

development Market size Attitude and motivations Some qualitative data Product development Advertising and promotional

developments Advantages Advantages Statistically robust Dynamic and creative Representative Depth of understanding Helps identify trends and patterns Rich source of ideas Wide variety of techniques

Different Quantitative Methods

Face to face interview Pros

Cons

Personal approach Interviewer influence High quality data No anonymity for respndant Probe responses The cost Longer interview High participation Stimulus materials Telephone interview Pros

Cons

Quick Absence of face-to-face contact Cost effective Is it a representative sample Less personal Limited duration Co-operation Lack of visual stimulation Self-completion questionnaires Pros

Cons

Geographic coverage Unrepresented samples Low cost Low response rates Respondent convenience Absence of interviewer Anonymity of respondent Standardized questions Length of questionnaire Time Each technique has its advantages and disadvantages. Cost, timescale and sample make-up must be considered – but don’t go for the cheapest option, or the quickest return.



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Different Qualitative methods

Focus groups (8-10 people recruited to a set criterion, 1.5 hours long, led by a moderator, explore experiences, attitudes, beliefs, motivations) Pros Cons Dynamics generate creativity Inhibits openness Shows consumer differences Dominant participants Sponaneity of response Lose minority viewpoints Observations Hot-housing - lose perspective Can be expensive

A skilled moderator can overcome most weaknesses

Variations Mini-groups (4-6 people) intimate subject matter, adolescents or children, difficult samples to recruit. Extended discussions ( 3 hours) good for ‘blue-skying’, using projective techniques, more complex issues. Accompanied visits, good for pre and post visit expectations and experience Re-convened groups/panels, useful for exploring responses to changes in the organisation eg: testing brand identity Observation (overt or covert) assessing responses to facilities, services and the visiting experience. Depth interviews (1-3 people in depth semi-structured interview, can be tape-recorded, penetrates below question and answer format) Pros Cons Intimate / personal information Time consuming Geographical spread Costly Range of sample Little opportunity for idea

generation and creativity Sense of perspective Variations Paired/trio depth ( 2 – 3 people), good for children, adolescents and couples.



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Mystery shopping – participants asked to visit the venue and complete a number of tasks. Detailed questionnaire used to record their experience.

9.4 Designing the Questionnaire

The business objectives and research objectives will, largely, determine your questions. Types of questions:

Closed – dichotomous (2 options), multi-code or single code Open ended – elicits a free response The Rules:

1. Does the question add value? – if not leave it out 2. Will the respondent understand the question? - avoid jargon & complex language - avoid skirting around the question – get to the point - avoid asking two questions in one - avoid making assumptions - maintain a common standard – define your terms, be consistent to aid benchmarking 3. Can the respondent answer the question? 4. Will the respondent answer the question? avoid questions that may cause embarrassment or offence Question sequence • Questions that are easy to answer at the beginning • Questions that will interest the respondent should go early • Personal, emotional or complicated questions at the end Before a change of topic insert an introductory phrase e.g. before asking personal questions say ‘Now I would just like to ask you a few questions about yourself’ Questionnaire layout • Allow adequate space in the layout for recording the answers. • Needs to be clear and well spaced (postal/self completion) • Include lots of very clear instructions Remember to pilot



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Test the questionnaire on colleagues, and respondents to make sure it works. Taking the time to get this part of the process right will reap rewards during the data collection and analysis stage. Asking the Essential Questions and Being Creative

Some questions are vital if you are to develop a deeper understanding of your market Market size Current attenders - ask attendance and frequency Potential attenders – collect data from screening questions gauging degree of interest and propensity to attend Go beyond demographics Attitudes, motivations, knowledge and confidence



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10 Implications for Marketing Strategy

10.1 SWOT analysis

A short- hand summary of a Situational Analysis, the second stage of a Marketing Audit and another useful exercise in its own right is the SWOT Analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses

These are internal aspects of your organisation which are helping you or preventing you from achieving your objectives. They might relate to: • staff skills and numbers • volunteers • range or quality of product • facilities • capacity achieved / available • income • fundraising success • marketing activity • press relations • management processes • planning systems – marketing / information

Each aspect needs to be considered and listed as either a Strength or a Weakness. The idea is to establish ways of exploiting the strengths and overcoming the weaknesses. Opportunities and threats

These are external considerations which have an influence on the organisation but over which you have no direct control: • sector changes • funding • Local Authority changes • competition • urban development • demographic changes The idea here is that you consider strategies for overcoming threats and making the opportunities work for you.



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Having completed the Situational and SWOT Analysis it is time to make this information begin to work for you by drawing out the conclusions and implications. These implications form the starting point of the marketing plan. At this stage you have gained an idea of the present performance of your organisation . Before a plan can actually be devised it is important to go into greater detail in analysing and deciding upon: • Who your customers are now • Who and where your potential customers are • What it is you are offering them • Who or what you are competing against • How you want to be seen as an organisation.

Simple SWOT analysis

INTERNAL

EXTERNAL

Strengths

Opportunities

Weaknesses

Threats

10.2 Conclusions and implications

The implications of the data gathered in the situational analysis and summarised in the SWOT now need to be identified so that the marketing strategies are informed by this evidence.

SWOT Factor Possible Explanation Implication



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11 Developing the right product

An Audience focused organisation adapts the product offering to suit the needs of the target market. For many in the arts this sounds like the start of the slippery slope towards theme parks, once again this needn't be the case as long as the developments are compatible with the organisation achieving its own aims. It is possible for the organisation to continue to be led by a strong artistic vision but still be audience focused. Equally it is possible for an organisation to be chiefly led by social policies and adapt the artistic offering specifically to meet the needs of those people it is trying to reach.

Broadly we adopt an approach in reaching our audiences which is either Product-led or Market-led. If we are product-led the marketing task is to identify those who are most receptive to the product, locate them, identify the benefits they respond to and design appropriate means of communicating these benefits that stimulate them to attend.



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This approach tends to rely most heavily on marketing communications and price promotions. If we are market-led then we identify the people we wish to reach, identify their needs and wants and develop the product offering or service, the process of interaction, and the communications methods that meets the needs of the target market and our own objectives. This approach tends to use the whole of the marketing mix to meet people’s needs. The process of designing elements of the product to match the needs of target segments is known as developing the Marketing Mix. Marketing management acknowledges that the core product alone is not the sole cause of the success or failure of a product, in arts organisations this would be the productions, performances, services or exhibitions. As far as the customer is concerned it is the quality of the complete experience that influences their impression on whether the visit was a success or a failure; whether their needs have been met and whether they will wish to return or to recommend the place to their friends. For arts organisations the Marketing Mix comprises seven elements which correspond to different types of needs that that customers have. These can be seen as benefits sought and benefits offered:



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Product The customer has functional needs such as to be entertained, educated, inspired etc., these needs are met through the product element of the marketing mix. The artistic programme and physical characteristics of the organisation including quality of building and facilities The customer needs to feel that what they are paying for represents value for money to them. This is reflected through the pricing strategy. Price Represents fees, entrance charge, ticket prices, hire fees. Specific customer needs can be addressed through discounts, subscriptions, concessions Pay What You Can Nights and special offers. Customers increasingly expect to see the core products enhanced by value-added extras. This added value is introduced through the Process by which the customer is encouraged to interact with the product. Process Represents aspects of the service which enhances the visitor experience such as information material; interpretation; talks and lectures; events; workshops; classes; Friends scheme a web-site etc. Quality of service and customer care is central to the customer’s experience and crucial in making them feel that their needs are understood and are being met. People Meet this aspect of customers’ needs. The staff involved in delivering or interpreting the product for the customers e.g. box office, front of house staff, education liaison staff, guides, attendants. Their approach, demeanour and commitment to customer satisfaction can have a resounding effect on the overall visitor experience. Place Availability at a time and place which meets needs will also determine whether people attend or not. Within the marketing mix represents the opening times, touring venues, seasonality and any peripatetic or out-reach work. i.e. how the product is made available in order to meet the needs of market segments. Branding Many people feel intimidated by arts venues, or by the people who they think attend them. They might also feel that they may stand out from the crowd for being too old or too young or not trendy enough.



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People want to feel that the venue or event they are attending will complement their own self-image. Branding is our way of communicating that our identity will meet our target segments’ self-image needs. We can project a specific personality, benefits and values through our brand identity. Guarantees Any expenditure on a non-tangible product represents a risk. Our customers want to minimise that perception of risk. We address this need by offering guarantees. We can provide guarantees through our reputation, track record, press endorsements, word of mouth etc. Marketing Planning involves consideration of all elements of the Marketing Mix in order to develop a complete product offering which can meet the needs of the target market enabling an organisation to make the most efficient use of its resources and achieve its own objectives. Any aspect of the Marketing Mix might be adapted to help meet the specific needs of separate market segments. We communicate the fact that we are meeting these needs through: Promotion The means of communicating with the potential market and the method, choice and style of publicity and advertising media. Positioning This is the way in which the organisation is perceived in comparison to competitors, the distinctive characteristics which set it apart from the competition.

Persuasion This is the power of the selling message, which encourages the potential customer to recognise that their needs are being met.



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12 Marketing or audience development

strategies

12.1 Strategic options

Thorough knowledge of the existing and potential market segments for your organisation and a full appraisal of the product or service are essential before marketing planning can proceed. With this knowledge we can consider which marketing objectives to set and which strategy to adopt. Marketing objectives are related broadly to products and markets; which products will be targeted at which markets in order to achieve the overall corporate objectives of the organisation. A model which helps in this decision-making process is Ansoff's matrix. Here we are presented with four strategic options: Targeting existing products at existing markets - this is a strategy of market penetration; getting existing attenders to come more often, or getting new visitors from within the same market segment. Targeting existing products on new market segments - this is a strategy of market development; reaching new market segments for example young people, families etc with the existing product. Developing new products or product features in order to attract existing market segments by better meeting their needs - this is a strategy of product development. It may become necessary to develop an entirely new product in order to meet corporate objectives, This might be developing new aspects of the artistic product to meet the needs of specific markets for example an Asian element to the programme to meet the needs of Asian audiences, or it might mean branching into entirely new business such as conference management, developing outdoor recreation or garden features - this is a strategy of diversification.



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Ansoff Matrix 1 – 4 = degree of difficulty

12.2 Setting marketing objectives

Using the Ansoff matrix helps you to define the broad strategic approach for the Marketing Plan and set the broad marketing objectives, for example if, on analysis of the size of the potential market, you discover that only 20% of that market has attended your venue your marketing objective might be to increase that figure to 30%, which would mean pursuing a strategy of market penetration. Tactics Strategy Implication Tactics

Market Penetration Increase use by

existing users; Users of competitors to use you

More promotion; Improved image; Special events PR

Market Development

New market segments to use existing product

Revised corporate image Re-branding Re-positioning New promotion plans New services Outreach work Different venues

Product Development

Attract existing segments by

Membership schemes Incentives

PRODUCTSExisting New

Existing

New

MarketPenetration

ProductDevelopment

MarketDevelopment

Diversification

1 3

2 4



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improving / adding to product

New product features Special events Loyalty schemes

Diversification Attracting new market

segments with new products and services

New collection; new artforms; new staff team to focus on needs of new segments; new services and operations

Whilst broad marketing objectives relate to the corporate direction of the organisation, sub-objectives relate more to the marketing operation, or tactical management of the marketing operation. Marketing sub-objectives might relate to increasing awareness; the amount of media coverage being sought in one year, income figures within one area of business etc. and are a reflection of the broad strategy being adopted:

Marketing Objectives should be SMART:

• Specific • Measurable • Achievable • Realistic • Timed - set within a timescale

Example Marketing Objectives might be to:

• Increase attendances by 10% within 2 years • Increase box-office income by 15% in one year • Increase fund-raising income by 20% within 3 years

These might be accomplished through a broad strategy of market development.

This strategy gives rise to sub-objectives related to the individual market segments to be targeted and the changes in the Marketing Mix elements made to reach those segments. For example, if it is decided to increase overall attendances by targeting family groups this gives rise to another objectives:

• To increase number of families by 5% per year by x (no/%) to x (no/%) by y (time)

This might be accomplished through raising awareness, increasing the number of family-orientated events and facilities and converting more school-associated visits into family visits. These actions are the tactics. Whereas tactics change often and are planned in the short-term, strategies are longer term and should ultimately all serve to accomplish long-term objectives.



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Further Sub-objectives might be:

• To convert each school party into at least three family visits • Obtain 25 press articles in the local papers aimed at women

and children • Ensure that 80% of the local population is aware of us

The result is a hierarchy where for every objective there is a strategy and for every strategy there are tactics.

Objective A stated target for achievement: Should start with the word 'TO..........'

Strategy The broad approach to achieving the

objective : Should start with the word 'BY..........."

Tactics The individual actions making up the

strategy.

Associated with any objective should be a means of measuring achievement



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13 Positioning

Positioning relates to the perception the target market has of a product or organisation.

Positioning is the act of designing the organisation’s image and value offer so that the organisation’s markets understand and appreciate what the organisation stands for in relation to its competitors.

It is desirable for an organisation to hold a clear and distinct market position in relation to other competing organisations in the minds of its public. Deciding on the position is related to the setting of marketing objectives and strategies. Establishing a market position is achieved through analysing the features and benefits your organisation has to offer, and giving greater emphasis to those benefits, which are not to be found within other competing organisations, which make your organisation distinctive or unique.

13.1 Mapping market position

Your own and competitor positions can be mapped to show relative positioning, to help identify the best position of your organisation if it is to be clearly differentiated within the market place. It is best to avoid holding a similar market position as a competitor as this means you are competing for the same market on the basis of offering the same benefits. Intimate ● Venue B ● Venue C Expensive Affordable ● Venue A

Formal



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Working up a positioning map using as axes the benefits you are wanting to position your organisation on helps to establish how much work is needed in altering the public perception. Organisations should take a conscious and determined approach to developing a strong market position based on how the organisation wants to be perceived by the target segments.

13.2 Competitive positions

Kotler identifies four main competitive positions based on the roles organisations play in the market: Market leader: largest market share Market challenger: the runner-up, closing the gap Market follower: runner up Market nicher: serve small / niche segments



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13.3 Classic competitive strategies

Market leader Expand the market New users New usage More usage

Protect market share Position defence

Flanking defence: protecting vulnerable areas

Counteroffensive defence

Mobile defence: broaden market

Contraction

Market challenger Attack Frontal Flanking: weaker positions Encirclement Bypass Guerilla

Market follower Follow closely Follow at a distance

Emulate Differentiation

Market nicher Speclialisation End-use Customer-size Specific-customer Geographic Feature specialist Quality Price Service



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14 Branding

A brand is an expression of a vision. A brand is a promise - a combination of functional attributes (what you get) and emotional associations (how you feel) Successful brands articulate the promise clearly

and even more importantly, deliver the promise

each and every time the customer comes into contact with you

Brand Perceptions

A set of beliefs held about a particular brand. Consumer beliefs may vary from true attributes because of their experience and the effect of selective perception, selective distortion or selective retention Or Perceived impressions of a brand by market segment frequently related to abstract associations. These may be the result of contrived marketing action, inaction or an accident of market perception. Brand Positioning

Development of a perception of a brand such that it occupies a distinctive niche in the minds of customers / potential customers in relation to competitors - thus it might be seen to have a high rating in terms of quality, reliability, credibility, innovation etc.

Brand Positioning Map

Brands can be positioned / mapped in the same way as competing organisations in the section above.



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Importance of Brands Every communication about you and every experience the market has of you is filtered through their perception of your brand. And these communications and experiences are constantly revising your customers’ perceptions of your brand. So actively managing their brand perceptions is a vital task shared between product and communications. It’s all in the mind…

A brand only exists in the mind of the customer It is the result of assumptions, received messages and experiences It can be exactly what you intended, a partial version or a distorted version It is the result of specific actions you do take (with the product and communications) OR of actions you fail to take OR of actions others take OR of unintended accident How Brands Work

If we want to change our customers’ behaviour, we have to change their attitudes. Brands are designed to work at this level. If you don’t know what is in the audience’s mind… Then you don’t know what your brand is currently. If you don’t know what the brand is… Then you don’t know what action to take to reposition it closer to your ideal.

PURPOSE How we see ourselves

IDENTITY How we see the world

VALUES Our beliefs

ATTITUDES What we think about ‘x’

BEHAVIOUR What we do and don’t do (what we buy)

LANGUAGE How we articulate

OPINIONS Simplex, under-developed attitudes

Level 1

Level 2

Level 3

Level 4

Level 6

Level 7

Level 5



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The brand can be perceived to have qualities which are transmitted in three different ways: Intrinsic Through a well known building, reputation, name,

logo or simply what the organisation is known to stand for.

Communicated What you say and do through publicity media,

signage and public relations. Experienced How the public’s perception of you is formed

through direct experience with your organisation and the service you offer.

It is important that the brand image is consistent across all three. The brand identity comprises five elements. Good brand management requires the management of these elements across all aspects of the marketing mix. Brand Model



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15 Communication Strategies

Strategy is implemented through changes and adaptations to the Marketing Mix. This has resource and staff implications and changes might be slow in coming due to the capital and revenue costs needed. The area in which progress can be made most quickly is in the area of promotion and publicity. This part of marketing planning is often the area mistakenly considered to be all that the process is about. Effective communication of the benefits to the target markets is a crucial area but it cannot be isolated from the rest of the management function. What might prevent people from attending arts events?

• Fear that it will be too expensive • Fear that there will be nobody else like them there • Concerned that they will not like it • Concerned that their friends/ family won’t like it • Worried they will not understand it • Belief that it won’t be relevant to them • Unsure what the benefits might be Advertising, print, direct mail, posters, press relations, promotions, telephone sales, public relations, education liaison, outreach work, signs, word-of-mouth, e-media and many more are all effective in their own way at getting some messages across to some target segments. The challenge in marketing planning is to select the most appropriate method for gaining access to and communicating with your target segments.

In implementing any publicity campaign a worthwhile checklist is:

• Why are we doing this - what are our objectives? • Who is our target market? • What are we saying? • Where will our message be seen? • How will we get our message across creatively? • When will the campaign take place • How Much will it cost • Who is responsible for implementation? • How well is the campaign doing - evaluation?



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The point of publicity to create impact, attract attention, arouse interest, stimulate desire and offer information in order to ensure that people take action. Steps in Planning a Publicity Campaign

• Set publicity/ communications objectives

• Evaluate resources

• Identify target segments

• Identify the most appropriate publicity communications tools or media

• Identify the most appropriate message

• Develop action plan

• Agree what, how, when, where action will be taken,

• Who is going to do it, and

• How much it will cost

• Monitor the results



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15.1 Publicity and Communications Objectives

The purpose of all communications activity is to: • Raise awareness • Generate interest • Stimulate desire • Call to action

The task of raising awareness is likely to require a broadcast message and medium, whilst the task of persuading someone to act is likely to require narrowcast message and medium. We can also use communications to help us achieve a variety of marketing objectives: Speak to new audiences

• Encourage existing audiences to attend more often • Stimulate loyalty • Inform • Educate about new services, products, venue developments • Remind • Strengthen image • Alter perceptions • Re-position • Build brand identity



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Each of these has strengths and weaknesses depending on the task they have to fulfil. We have to select our medium and message to ensure they help us meet our objectives

15.2 How to reach your target segment

Who are you communicating with ? Clearly identify who you are trying to reach as this will affect your tone of voice; vocabulary; use of jargon ; images and colour; graphic style ; assumptions you make; benefits you identify. Is the person you are writing for traditional or unconventional; a parent or a single adult; old or young; local or a visitor? What media are they likely to use? Leaflets; local evening newspaper; libraries; parish notice boards; supermarket community information board; posters in shops; flyposters; postcards; novelty gimmicks; word of mouth Where do they go ? Clubs or societies they might belong to; other venues they attend; places they meet; places they eat and drink; schools and colleges; bus stops and gathering places. How do they behave? Are they Innovative or traditional; will they book in advance or leave things to spontaneous last minute decisions; do they graze for leaflets; rely on freinds recommendations or like to be the one passing on word of mouth; do they like sophisticated images or trendy street-wise images; do they respond to prestige or to grass-roots realism? These questions will help you match the appropriate message and medium to your target segment. The answers will inform your choice of media, method of distribution, choice of outlets, tone of voice in the words you use, colour and images in the print design. Features or Benefits In order to attract people to our events we need to spell out the benefits that we can offer them. We are often so close to our products that we only ever see them in terms of their features – the factual or physical attributes that we know they possess. Benefits are what the user derives from the experience, the factors that reassure them that their needs are being met.



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We need to assess the benefits we can offer at this early stage of product analysis so that we can add them to our awareness of the strengths and weaknesses and match the benefits with potential target markets. Features Benefits Coca Cola Sweet, brown, fizzy liquid

Thirst quenching, young, cool, what life is about

Retrospective exhibition Insight, inspiration, something to talk about

Festival of Street Theatre Excitement, spectacle, shared experience, community well-being, improves quality of life

Orchestral concert Escapism, spiritual experience, emotionally moving

Classic Play Entertaining, re-enforces traditional values, moral tale, thought-provoking, up-lifting, opportunity for self-improvement

Having identified the benefits we can offer our potential audiences we can add them to our list of Strengths and, within the campaign, we will need to translate them into an attractive proposition through our persuasive publicity material.

15.3 Marketing communications tools

There is a wide range of tools we can use to communicate efficiently and effectively: • Printed leaflets

• Posters

• Diary brochures

• Newspaper Advertisements

• Press editorial and photographs

• Direct mail letters

• Newsletters

• Telephone selling

• Personal selling

• Outreach work

• Television advertisements



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• Radio coverage

• Word of mouth recommendation

• Merchandise

• Free samples

• Publicity stunts

• Displays

• Videos and CDs

• Listings

• E.mail

• Website

We have to select the most appropriate tool to help us reach our target segment and achieve our communication objective. Some tools are better for broadcast messages, some are better for narrowcast. Some are better for raising awareness whilst some are better for stimulating desire.

Select the most appropriate tools by developing a matrix with communications objectives along one axis and communicatuions tools along another:

Posters TV Press

editorial Direct Mail

Email Telephone

Raise awareness ✔ ✔ Generate interest ✔ Stimulate desire ✔ ✔ ✔ ✔ Inform ✔ ✔ Call to action ✔



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16 Effective Communications

Golden Rules of Effective Copywriting for brochures, letters, leaflets

In writing the sales copy to help you sell seats you need to put yourself in the position of your target segment and consider all the factors that might deter them from attending your event and what benefits they will recognise in your proposition.

Imagine this person sitting in front of you and write in a way that you feel could persuade them to attend.

Consider your tone of voice – does it have to be informal and friendly, or formal to appeal to their status? Can you imagine yourself saying what you have written? Does it sound genuine and convincing?

Speak to the artists involved, artistic director or curator. What makes them passionate about this show? How can you communicate their enthusiasm to your target segments?

Do you have access to any other famous or influential people whose enthusiasm can both endorse and persuade others to see this show?

Avoid listing the features – try to convert them to benefits.

DON’Ts

1 Don’t assume prior knowledge. You say, ‘following last year’s

triumph with La Republica…’. They read, ‘if you didn’t come last time, it’s not for you’.

2 Don’t use jargon – You say, ‘Mozart Piano Concerto No. 25 in C, K503’. They think, ‘which one’s that – what does it sound like?’.

3 Don’t sell – just tell. Too many adjectives and superlatives make you sound like a desperate salesman.

4 Don’t use too many exclamation marks. You’ll sound like Tony the Tiger – “they’re Grrreat!!!”

5 Don’t quote only fantastic snippets of reviews. The longer and the less… dots between, and the more measured they are, the more credible impact they have.

6 Don’t just give a plot synopsis. Describe what it will actually be like.



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7 Don’t use every typeface and point size you own. It doesn’t grab their attention, it just gives them a headache.

8 Don’t just list the features. It may be ‘the oldest working theatre in Vietnam’, but it’s the unique, historic atmosphere that’s the benefit.

9 Don’t use PSs. They may be textbook, but they’re hackneyed and false.

10 Don’t shout. Interrupting the flow of your letter with a screaming press review is like suddenly yelling at someone in the middle of a conversation.

So what works? Well, here are some of the things that made them want to reach for their money:

DOs

1 Be personal. But instead of pretending it’s a personal to them,

make it a personal letter from you. People buy from people.

2 Be conversational. We need to talk to people, not at them. That means informal, short sentences.

3 Quote the fanatic. Every show has a director, curator, writer, actor, or artist that really believes in it. What inspires them will inspire the audience.

4 Be evocative. Tell them how it will make them feel. Use script quotes or anything that gives insight and a real feeling for the work. It’s art, so be creative.

5 Endorse it. Most bookers are risk-averse, so emphasise familiar names, reputations and reviews. They love audience quotes – ‘people like me ’like it.

6 Dumb up. Assume they’re just as intelligent as you are, they just lack knowledge.

7 Reveal a little magic. Give them a peek behind the scenes: the set, costumes, rehearsals and how artists work.

8 Use popular culture references. When obscure jazz was described as ‘making you think of tango and Fred Astaire dancing in films’ they got it straight away.

9 Sell the whole night out. That’s what people want to buy.

10 Tell them where the No 7 bus stops. And every other detail imaginable.



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16.1 Action Plans

The action identified in the communications plan, as well as the selling strategy needs to be set out in a timescale to ensure that everything fits into the time available. (See example marketing campaign plan in the appendix).

Each step in that activity needs to be costed to ensure that it fits into the budget.

If you find you can’t carry out everything you want to then rationalise the plan, don’t abandon it completely. If you can argue that you need to carry out a minimum of activity to achieve the objectives then see if the marketing budget can be increased.

Only increase the objectives if you are confident that the marketing activity you can afford to undertake is capable of achieving them.

Each step also needs to be allocated to a person to carry out so that it is clear how the plan will be implemented and by whom.

The sales targets need to be inserted into this action plan so that the impact of the plan is being monitored against the objectives in the weeks and days leading up to the final deadline.

16.2 Contingency Planning

Having a clear system of monitoring against objectives will enable you to see if there is a need to implement a contingency plan. If you aim to have sold at least 30% of your tickets in advance and by the week before the event only 10% of the tickets are sold then there is a clear need for a contingency plan. The contingency plan might be to use another database for an extra direct mail shot, it may be to use hand-to-hand leaflet distribution in the venue or outside another similar venue, it may mean additional telephone sales. The whole intention should be to push up sales to as close to the targets as possible and to monitor and modify the marketing campaign throughout the build-up and run of the event so that the overall objectives are achieved.



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Get up that Ladder! Teleprompt and Test-Drive:

Audience Development that works We all want to attract new audiences and we all want our current audiences to attend more often. Teleprompt and Test-Drive are two schemes developed to do just that. They are affordable, practical and above all, proven to be successful, the result of several years development and refinement. Imagine your audience are on a giant ladder. At the top of the ladder are your members, below them are subscribers, below them in turn are frequent attenders and so on down to the non-attenders beneath the bottom rung. Audience Development is all about getting people further up this ladder whatever their starting point. Teleprompt does this by turning infrequent attenders into regulars, Test-Drive turns potential attenders into attenders. Both schemes work by not only providing the initial push needed to move people up the ladder, but supporting them so they stay there. And the schemes really work. We have witnessed first hand remarkable results at Buxton Opera House, Royal Liverpool Philharmonic Orchestra and Halle Orchestra.

Andrew McIntyre Morris Hargreaves McIntyre

& Helen Dunnett

Royal Liverpool Philharmonic Orchestra



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Membership

Membership schemes are already well established and well developed. For this reason we have concentrated our research and thinking on the lower rungs which promise greater returns.

Subscription

As with membership, subscription schemes are well established and well developed.

Customer Relationship Management

Morris Hargreaves McIntyre are currently working with the Royal Liverpool Philharmonic Orchestra as well as Royal Exchange Theatre, Bristol Old Vic, Customs House (South Shields) and Citizen’s Theatre to produce a Customer Relations Management scheme that is implementable across the performing arts. Teleprompt

Teleprompt turns infrequent attenders into regulars. Traditional press and publicity is not effective at the persuading patrons beneath the top rungs to attend more than once or twice a year. Teleprompt is a telephone information service which overcomes these problems, by speaking directly to infrequent attenders. Simple to set-up and operate, the scheme quickly breaks even. At Buxton Opera House every £1 invested produced £3 additional income at the box office. For details of how this scheme worked contact Helen Dunnett at the Royal Liverpool Philharmonic. Test-Drive

Test-Drive gets people onto the ladder and guides them upwards. For the vast majority of performances, concert halls and theatres have empty seats. Test-Drive uses this valuable resource to enables non-attenders to try the arts for free. This is not mere altruism. Performances with the broadest appeal are selected whilst the initial free offer is followed by staggered discounts.



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Not only does Test-Drive increase the size of audience constituency, but it also usually turns a profit within a year.

16.3 Teleprompt

Activating Infrequent Attenders

Typically, half the patrons on a theatre database only attend once a year. Research shows that they generally get the ‘What’s On’ info but that it doesn’t persuade them to book. They tend only to book for major shows or ones they already know they’ll like.

TelePrompt is a free information service to activate infrequent attenders.

Patrons are telephoned periodically and given a menu of shows about which they can order more information. The information sent is written to be more persuasive.

Teleprompt uses a deliberately ‘soft sell’ approach designed to build up a trusting relationship. Typically,

• 70% of patrons join the scheme.

• Calling them can DOUBLE participation rates.

• Attendance keeps on rising in response to calls for up to 3 years.

For every £1 invested, patrons have spent £3 at the box office.

Taking Teleprompt Further

The original Teleprompt programme at Buxton Opera House developed by Helen Dunnett concentrated on delivering solicited information. However the programme could still be developed further.

• Added Value: Exclusive open days, backstage tours or pre-performance talks to strengthen the personal link

• Introduce a Friend: Providing incentives for participants to introduce new people.

• E-prompt: Teleprompt using Email, a cost-effective option.



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• Crossover Encouragement: Information on ‘entry-level’ productions of say opera or dance could be supported with incentive or special packages.

• Frequency Packages: Multi-buy offers to increase frequency.

TelePrompt Practical Guidelines

Objective Don’t Do

Get the right people Call people who live 50 miles away.

Call people in the catchment area.

Keep it legal Dive in without informed consent.

Ask for telephone consent as Q1 in the call if you don’t have it.

Explain the scheme Assume people will want to join - the scheme is unusual and they might worry there’s a catch.

Use a clear, reassuring script that allays their fears - people are then very positive.

Build a personal rapport

Be an anonymous voice reading from a pre-printed script.

Introduce yourself and make sure it’s you that calls this patron next time round.

Record their preferences

Just tell everyone about everything every time.

Find out what they’re interested in and tailor the info to their interests.

Solicit feedback Just transmit info in one way - from you to them.

Encourage dialogue, ask questions, get feedback, comments and suggestions. Record what they say and act on complaints.

Arrange the next call

Call again out of the blue.

Agree when you’ll call them again.



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Dispatch the info quickly

Wait until there’s enough for a batch mailing.

Send the requested info 1st class next day.

Keep it soft sell Check up whether they went to any of the shows you told them about last.

Check the box office records. Ask for feedback on the info you sent.

Confirm their continuing interest

Just keep calling. Positively confirm that they still want to be part of the scheme.

Develop their interests

Always just tell them about things they already like.

Suggest and recommend shows that you think they might like.

Move people off the scheme!

Call them forever. Aim to move 50%+ onto e-prompt info by email. Suggest others might be OK on own two feet.

Try to deepen relationships

Limit the relationship to occasional calls about single shows.

Sign letters from the caller, invite members of the scheme to open days and special events, move onto loyalty cards and first time subscriptions.

Evaluate scientifically

Just monitor the bookings of those called.

Establish a ‘control’ group’ of similar patrons and measure the ‘uplift’ caused by TelePrompt.

Evaluate qualitatively

Just judge by statistics.

Get feedback from staff who call - they are listening to the audience and you can learn a lot from these debriefs



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16.4 Test-Drive the Arts

Empty seats are a precious resource

There are 6 million empty theatre seats each year. If sold, they would be worth £80 million, unsold they are worth nothing.

There are more than 6 million potential attendees. We have not managed to persuade then that attending will meet their needs.

What could be more persuasive than actually attending a performance?

Giving these Cautious Gamblers free tickets for our empty seats costs little from the marketing budget and nothing at the box office. But this is not ‘papering’, it’s strategic.

The free Test-Drive is followed by rapidly decreasing discounts to increase commitment. Typically,

• 30-35% return and pay full price.

• Over 40,000 people have been through Test-Drive.

• Over 13,000 have been retained.

• Many more say they may return in the future.

Most schemes make a profit within a year

16.5 Taking Test-Drive Further

Test-Drive was initially developed to attract the most likely potential attenders into the arts. However at Buxton Opera House the scheme has been tailored for the purposes of social inclusion. Using the scheme 782 non-attenders from rural deprived communities were given the opportunity to attend the theatre.



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17 Test Drive The Arts

Practical Guidelines

Objective Don’t Do

Get the right people Broadcast free tickets offer - it alienates current attenders and attracts freeloaders.

Screen potential attenders by phone to establish qualification and genuine interest. Consider explaining the scheme to current attenders and ask for their help.

Make them feel welcome

Assume new attenders know where you are.

Give full directions, send a ma, give details of transport ad parking, arrange parking.

Assume they understand the routine and etiquette.

Explain the format of the evening, timing, intervals, (even when to clap); remember basic things like cloakroom and interval drinks.

Leave them to fend for themselves.

Set up a welcome desk or have welcome staff in the foyer.

Devalue sense of occasion.

Make them feel like VIP guests with valuable tickets.

Reassure them Arrange ticket pick up on the door - they won’t come

Send tickets out in advance with a personal letter.

Assume they know the play, writer, actors etc.

Send them a specially written ‘Facts About Show’ sheet so they know what they’re going to get.

Choose the right play Offer tickets for the show even regular won’t attend.

Choose accessible ‘entry level’ shows even if this means you’ve only got a few spare ticket seats.

Choose the seats Sit them in the gods.

Give them the best available seats in the house.

Follow up promptly Let people’s initial enthusiasm wane.

Follow up with a letter and a new offer.



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Identify the best leads Try to retain everyone - it doesn’t work.

Make offers that demand a commitment - e.g. ‘2 shows in 2 months for £6’ or a reasonable financial outlay ‘£3 off next show’. These offers will sort out the definites from the maybes.

Give people a 2nd chance

Assume failure to take up first offer means no interest.

Make a 2nd offer to those who didn’t respond first time.

Then cut your losses Give people a third chance

Spend your money on the plenty more fish in the sea that have more potential.

Get feedback Assume you know how people reacted.

Ring a few up, send out some feedback forms, listen and learn.

Make it viable Give them seats you could have sold - turning away current attenders is the opposite of audience development and financial suicide.

Set aside only the number of seats you know will be free. Just 10 seats at each performance could be 1,500 a year.

Make it manageable Bite off more than you can chew with an over ambitious scheme.

Start small and grow if you can. Test Drive is scaleable - it makes money with 10 or 1000.

Administrate it properly

Let lists get out of hand.

Code respondents on the office box database and manage the leads efficiently.



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18 MARKETING PLANNING CHECKLIST

The steps to developing a marketing plan:



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Market segment 1

Market segment 2 Market segment 3

Name of segment

Vocationals CVA interest gallery attenders

Local people

Description People working in the visual arts sector in UK and Europe

Non-specialist gallery attenders who like contemporary art

People living within 3 miles of gallery who may have passing or on-going interest

Quantification Estimate 5,000 of whom we presently reach 1,500

Estimate 25,000 in catchment area of whom we presently reach estimate of 10,000

Estimate 30,000 of whom we presently reach 5,000

Needs and wants

Straight forward factual information in advance. Good shop

Attractively presented information with background on artists and their work and as much endorsement as possible. Access and facilities information.

Awareness and information: feeling welcome; child-friendly ambience and facilities; toilets and café; friendly customer care. Opps for interaction

Obstacle to attendance

Insufficient advance warning

Lack of awareness and insufficient enticement

Feeling that the place is not for them and irrelevant

Objectives Attract at least another 500 within next 2 years

Increase penetration by 10% within 2 years

Develop 10% additional local audiences within 2 years

Strategy Market penetration

Market penetration Audience development

Product Continue with programme

Continue with programme

Continue with programme

Price Free entrance Free entrance Free entrance



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Market segment 1

Market segment 2 Market segment 3

Place Introduce late night opening on Thursdays

People Train FOH staff in customer care

Train FOH staff in customer care

Process Introduce artists’ talks on Thursday nights

Increase amount of interpretation and train gallery staff in talking about exhibitions

Introduce childrens’ Saturday workshops; Art for the Terrified talks

Publicity Develop emailing list

Increase print-run and distribution. Re-design diary brochure. More information inside and explanatory copy on front.

Larger signs and banners around venue. Local leaflet drop. Posters in schools and local venues.



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Planning Grid 1

Planning grid 2

Chart to tie communications and sales activity to objectives

Task Action Timing Budget PersonTo raise

awareness

Press conference

Press release

Trailer leaflet

Distribution to bars/ clubs

Posters around town

Week 12

Week 12

Week 12

Week 11

Week 8

£200

£1500

£ 100

Me

To encourage

advance sales

E- Mail trailer leaflet to

following databases:….

Follow-up phone calls to

following databases…..

Week 11

Week 10

£200

£150

To encourage

positive word of

mouth

Visit community associations Week 8 £100

Planning grid 3 - Gantt Chart

Costed Action Plan

Task Week

12

Week

11

Week

10

Week

9

Week

8

Week

7

Week

6 etcBrief designer

Write copy

Write press release

Design proofs

Print delivery

Follow-up press calls

Distribution



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19 Measuring success

Control is a vital principle of Marketing Planning, from the setting of initial objectives, through the planning and operation of a strategy and individual campaigns, it can only be of long-term use and benefit if the progress and activity is constantly monitored against the objectives and time-scale. This is even more the case for outcome focused organisations which are having to evaluate their success against the outcomes they generate. It does not matter so much if objectives are not achieved as long as the reason for that under-achievement is understood and that knowledge fed into future plans. Marketing management requires monitoring procedures to be established and agreed before plans and campaigns are implemented so that a controlling process is in place at the start. This establishes a constant learning process which informs future planning. Organisations gain from the accumulation of intelligence, rather than received wisdom and gut instinct, on which to base decision-making. As well as monitoring the individual plan it is vital to evaluate the success of the planning process – did it do what was intended. Was everything covered?

19.1 Purpose of Monitoring & Evaluation

• Monitor performance • Inform planning and decision making • Evaluation in light of aims and objectives • Evaluation of outcomes and impacts.

19.2 Mechanics

• Gather as much information internally / automatically as possible • Include budget heading for market research • Devise mechanisms for proper evaluation / feedback • Determining Monitoring & Evaluation Needs • What type of decisions are you regularly called on to make? • What information do you need to make these decisions? • What information do you have / get regularly now? • What other information would you like to get that you are not now

getting? • With what frequency do you need this information



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• What specific topics would you like to be kept informed of? • What do you think would be the three most helpful improvements

that could be made in the present information system?



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Morris Hargreaves McIntyre is a creative and intelligent arts management consultancy working in the interests of audience and organisational development. The company combines thorough project planning with incisive, deep analysis, lateral thinking and detailed, intelligent strategic planning to produce relevant, helpful and high quality reports with practical recommendations.

Our services include:

• strategic analysis, planning and development

• product and service development

• feasibility studies

• market appraisals

• marketing audits, strategies and plans

• audience development strategies and implementation

• access strategies

• in-service training

• training needs analysis

• training programmes

• organisational development

• change management

Most of our projects are research-based. We have a fully integrated market research service that undertakes:

• quantitative research

• qualitative research

• telephone marketing

• community consultation



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1 Connor, Tom (2007) Marketing and corporate strategy – a response to ‘let marketers reclaim corporate strategy’, Journal of Strategic Marketing, 15:4, 369-374 2 Kotler, P., Armstrong, A., Principles of Marketing, Prentice-Hall 3 Morris Hargreaves McIntyre, Ironbridge Branding Project, December 2001 4Morris Hargreaces McIntyre, Imperial War Museum Visitor Research, October 2003 5 Morris Hargreaves McIntyre, Ironbridge Branding Project, December 2001 6 The Research Practice, Results of Research into the Contemporary Visual Arts, Arts Council, May 1992 7 Dodd, J. and Sandell, R., ‘Not for the Likes of You’, MLA, 2001 8 Harris Research Centre, 1993 cited in Dodd J. and Sandell, R., Including Museums, op cite 9 Harris Research Centre, 1993, Mass Observation Study cited in Harland, J. and Kinder, K., Crossing The Line: Extending young people’s access to cultural venues, Calouste Gulbenkian Foundation, 1999 10 Desai, P. and Thomas, A., Cultural Diversity: Attitudes of Ethnic Minority Populations Towards Museums and Galleries, Museums and Galleries Commission, January 1998 11 Desai, P. and Thomas, A., Cultural Diversity: Attitudes of Ethnic Minority Populations Towards Museums and Galleries, Museums and Galleries Commission, January 1998 12 Robertson Bell Associates, The Views of Users and Potential Users, Nottingham City Museums and Art Gallery 13 Robertson Bell Associates, The Views of Users and Potential Users, Nottingham City Museums and Art Gallery 14 National Campaign for the Arts, 1999, quoted in Harland, J. and Kinder, K., Crossing the Line, op cite 15 PLB Consulting, New Audiences for the Heritage, Heritage Lottery Fund, April 2001 16 Moore, J., Poverty: Access and Participation in the Arts, Dublin: Combat Poverty Agency, 1997 17 Moore, J., Poverty: Access and Participation in the Arts, Dublin: Combat Poverty Agency, 1997 18 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991 19 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991 20 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991 21 Harris Research Centre, 1993, Mass Observation Study cited in Harland, J. and Kinder, K., Crossing The Line: Extending young people’s access to cultural venues, Calouste Gulbenkian Foundation, 1999 22 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991 23 Davies, S., By Popular Demand: A Strategic Analysis of the Market Potential for Museums and Galleries in the UK, Museums and Galleries Commission, London, 1994 24 BMRB International, Cultural Diversity; Attitudes of ethnic minority populations towards museums and galleries, MGC, 1998 25 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991 26 ‘Representing Ethnic Minority Communities in Museums’ in Museum Practice, 8 vol. 3, number 2, 1998, pp. 23-24 27 Harris Research Centre, 1993 cited in Dodd J. and Sandell, R., Including Museums, op cite 28 Morris Hargreaves McIntyre, Market Research Report for Manchester Art Gallery, 2001 29 Harris Research Centre, 1993 cited in Dodd J. and Sandell, R., Including Museums, op cite 30 Morris Hargreaves McIntyre, Market Research Report for Manchester Art Gallery, 2001 31 Morris Hargreaves McIntyre, Market Research Report for Manchester Art Gallery, 2001 32 Morris Hargreaves McIntyre, Market Research Report for Manchester Art Gallery, 2001



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33 Morris Hargreaves McIntyre, Market Research Report for Manchester Art Gallery, 2001 34 MORI, Visitors to Museums and Galleries in the UK, Museums and Galleries Commission, May 1999 35 Desai, P. and Thomas, A., Cultural Diversity: Attitudes of Ethnic Minority Populations Towards Museums and Galleries, Museums and Galleries Commission, January 1998 36 Fowle, K., quoted in Harland, J. and Kinder, K., Crossing the Line, op cite 37 Selwood, S. et al, An Inquiry into Young People and Arts Galleries, Art and Society, 1995 38 Selwood, S. et al, An Inquiry into Young People and Arts Galleries, Art and Society, 1995 39 Marketing in the Arts, Oxfordshire, 1998, cited in Harland, J. and Kinder, K., Crossing the Line, op cite 40 Harland, J. and Kinder, K., Crossing the Line, op cite 41 Trevelyan, V., ‘Dingy Places With Different Kinds of Bits’: An Attitudes Survey of London Museums Amongst Non Visitors, London Museums Service, 1991

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