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Art &
Marketing
Dyakov, Ermolina, Sokolenko, Takhirova
Main points
1.   History
2.   Environment
3.   Marketing Issues
4.   Understanding the performing arts audience
5.   Segmentation
6.   Identifying the сompetitors and potential collaborators
7.   Positioning and promoting the product offering
8.   Art as a tool of marketing
#1
History
Obstacles for growth:
1950s -1980s            •Growing competition
                        •Audience size is stagnant or decreased
unprecedented           •Lifestyles are changing
growth                  •Costs increase
                        •Funding is cut
                        •Difficult to find the resources




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




                  Marketing tools
#2
Environment
High culture   Popular culture
 (Fine art)     (Mass culture)
Art vs Entertainment
“Nobility”   “Vulgarity”
Painting by Aziza
Beyond price
#3
Marketing
Issues
Art-centered
versus
Market-centered product choice
   A market-centered approach calls for
satisfying the customer. But, in the arts, is
Satisfaction the goal?
   A serious artistic organization that ignores
the market place is lying – pure and simple
lying.


People who govern, manage or market the arts should not suggest that
the product be changed to make it sell better.
The main idea
Company should determine what consumers need and want, and
try to satisfy those needs and wants, provided that doing so is
consistent with the company’s strategy and that the expected rate
of return meets the company’s objectives.
The complexities of
marketing the arts



A middleman     A middleman    A middleman
 should find   should expand    should keep
  a market       the market    its consumers
Definition
Marketing is the process by which an organization relates creatively,
productively, and profitably to the marketplace, with the goal of
creating and satisfying customers within the parameters of the
organization’s objectives.




                      The key feature is that it focuses on exchange
The evolution of
marketing philosophy
• The product orientation
• The sales orientation
• The customer orientation
Case #1
          1. Atlanta Ballet
          2. Need to develop new
             audiences
          3. Created a direct-mail
          4. The mailing had
             generated $92,000
             from the sale of 1,360
             season tickets,
             compared to $51,025
          What was in the
            letters?
Case #1

1. An avid runner and Braves fan who marvels
   at the dancers’ athleticism
2. A lot of us are just pedestrians who can’t do
   anything ourselves, but we love to watch
   those who can
3. When my parents take me to the ballet, it
   makes me fell loved
4. With all the bad news today – the rushing
   and the deadlines and the crisis – it’s
   wonderful to be able to sit back and
   immerse yourself in a thing of beauty
Case #2
          We can’t go because
          we don’t have the
          proper clothes. We
          would feel really
          uncomfortable around
          all those fancy-dressed
          people.


          What did Buffalo
          Philharmonic Orchestra
          do in order to attract
          new consumers?
Case #2
1. Orchestra section members began
   playing shirt-sleeved chamber music
   programs at neighborhood art fairs and
   other local outdoors events
2. The orchestra itself even performed a
   half-time show at a Buffalo Bills football
   game
3. The conductor began appearing on
   local television and giving brief, informal
   talks to audiences
Common errors
• The organization considers its offerings to be inherently desirable
• A minor role is afforded to customer research
• Marketing is defined primarily as promotion
• One “best” marketing strategy is typically employed in
  approaching the market and is viewed as being all that is
  needed
• Generic competition is ignored or misunderstood
Accessibility
The key is how to make the product more accessible to the viewer,
not how to change the artist’s vision or the organization’s mission.
Objectives
#4
Understanding
the performing
arts audience
Audience segments
#5
Segmentation
Ways of segmentation
• Geoclustering
• Gender segmentation
• Lifestyle segmentation
• Usage segmentation
• Benefit segmentation
• Segmentation by aesthetics
Segmentation by
aesthetics
Factor 1. Bold, exiting, thrilling, crowded, active (retiring, peaceful,
soothing, alone, leisurely)
Factor 2. Familiar, real, symmetrical, matching, (strange, fanciful,
asymmetrical, contrasting)
Factor 3. Hard, sturdy, practical, technical, powerful, profitable,
(soft, delicate, decorative, emotional, graceful, social)
Factor 4. Stage play, curved, paintings (movies, angular,
photographs)
Factor 5. Sophisticated, outstanding, luxurious (sentimental,
customary, comfortable)
Factor 6. Dramas, serious, dramatic, alone (musicals, funny, pretty,
crowded)
#6
Identifying the
сompetitors and
potential
collaborators
Different types of
competition
Intratype competition          Intertype competition

The Pushkin Fine Arts Museum   Concert “Moscow Virtuosi”
vs                             vs
Tretyakov State Gallery        Opera “Boris Godunov”


Substitute competition         Indirect competition

Opera “Traviata” in Bolshoi    Photo Exhibition
Theatre                        vs
vs                             Spartak - Lokomotiv
CD record of this opera
Collaboration
Interdisciplinary crossovers
Discipline              Crossovers

Ballet                  Art museums, opera, classical music, theater

Modern dance            Art museums, theater

Opera                   Art museums, dance, classical music, theater

Art museums             All other disciplines

Science organizations   Classical music

Arboreta                Opera, classical music, theater

Classical music         Art, dance, opera, theater

New music               Art, dance, theater

Theater                 Art, history, cultural museums, opera, classical music
#7
Positioning and
promoting the
product offering
Formulating the communication
strategy
Advertising
Public presentation        Advertising is a highly public mode of
                           communication. Many people receive
                           the same message, buyers know that
                           their motives for purchasing the offering
                           will be publicly understood
Pervasiveness              Advertising is a pervasive medium that
                           permits the seller to repeat a message
                           many times. It also allows the buyer to
                           receive and compare the messages of
                           various competitors.
Amplified expressiveness   Advertising provides opportunities for
                           dramatizing the organization and its
                           offerings through the artful use of print,
                           sound, image, and color.
Impersonality              The audience does not feel obligated
                           to pay attention or respond to
                           advertising.
Personal selling
Personal interaction   Personal selling involves a living,
                       immediate, and interactive
                       relationship between two or more
                       persons.
Cultivation            Personal selling permits cultivation
                       of relationships, ranging from
                       matter-of0fact selling relationships
                       to deep personal friendship.
Response               Personal selling makes the target
                       audience member feel under
                       some obligation to respond, even if
                       the response is only a polite “thank
                       you”.
Sales promotion
Communication      Sales promotion gain attention
                   and usually provide information
                   that may lead the consumer to
                   the product.
Incentive          They incorporate some
                   concession, inducement, or
                   contribution that gives value to
                   the consumer.
Invitation         They include a distinct
                   invitation to engage in the
                   transaction
Public Relations
High credibility    News stories and features seem
                    more authentic and credible to
                    readers than to advertisements. PR
                    can reach many prospects who
                    might avoid salespeople and
                    advertisements.
Dramatic appeal     PR, like advertising, has the
                    potential for dramatizing and
                    building the image of an
                    organization of offering.
Low cost            The costs for PR efforts undertaken
                    by any organization with an in-
                    house communication manager
                    are relatively low.
#8
Art as a
tool of marketing
Art as a tool of marketing
Art as a tool of marketing

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Art & Marketing

  • 1. Art & Marketing Dyakov, Ermolina, Sokolenko, Takhirova
  • 2. Main points 1. History 2. Environment 3. Marketing Issues 4. Understanding the performing arts audience 5. Segmentation 6. Identifying the сompetitors and potential collaborators 7. Positioning and promoting the product offering 8. Art as a tool of marketing
  • 4. Obstacles for growth: 1950s -1980s •Growing competition •Audience size is stagnant or decreased unprecedented •Lifestyles are changing growth •Costs increase •Funding is cut •Difficult to find the resources • Funding and grants for specific purposes • Tough competitive • Spiraling expenses Nowadays • Small audience • Lack of time • Lack of arts education at schools Marketing tools
  • 6.
  • 7. High culture Popular culture (Fine art) (Mass culture)
  • 11. Art-centered versus Market-centered product choice  A market-centered approach calls for satisfying the customer. But, in the arts, is Satisfaction the goal?  A serious artistic organization that ignores the market place is lying – pure and simple lying. People who govern, manage or market the arts should not suggest that the product be changed to make it sell better.
  • 12. The main idea Company should determine what consumers need and want, and try to satisfy those needs and wants, provided that doing so is consistent with the company’s strategy and that the expected rate of return meets the company’s objectives.
  • 13. The complexities of marketing the arts A middleman A middleman A middleman should find should expand should keep a market the market its consumers
  • 14. Definition Marketing is the process by which an organization relates creatively, productively, and profitably to the marketplace, with the goal of creating and satisfying customers within the parameters of the organization’s objectives. The key feature is that it focuses on exchange
  • 15. The evolution of marketing philosophy • The product orientation • The sales orientation • The customer orientation
  • 16. Case #1 1. Atlanta Ballet 2. Need to develop new audiences 3. Created a direct-mail 4. The mailing had generated $92,000 from the sale of 1,360 season tickets, compared to $51,025 What was in the letters?
  • 17. Case #1 1. An avid runner and Braves fan who marvels at the dancers’ athleticism 2. A lot of us are just pedestrians who can’t do anything ourselves, but we love to watch those who can 3. When my parents take me to the ballet, it makes me fell loved 4. With all the bad news today – the rushing and the deadlines and the crisis – it’s wonderful to be able to sit back and immerse yourself in a thing of beauty
  • 18. Case #2 We can’t go because we don’t have the proper clothes. We would feel really uncomfortable around all those fancy-dressed people. What did Buffalo Philharmonic Orchestra do in order to attract new consumers?
  • 19. Case #2 1. Orchestra section members began playing shirt-sleeved chamber music programs at neighborhood art fairs and other local outdoors events 2. The orchestra itself even performed a half-time show at a Buffalo Bills football game 3. The conductor began appearing on local television and giving brief, informal talks to audiences
  • 20. Common errors • The organization considers its offerings to be inherently desirable • A minor role is afforded to customer research • Marketing is defined primarily as promotion • One “best” marketing strategy is typically employed in approaching the market and is viewed as being all that is needed • Generic competition is ignored or misunderstood
  • 21. Accessibility The key is how to make the product more accessible to the viewer, not how to change the artist’s vision or the organization’s mission.
  • 26. Ways of segmentation • Geoclustering • Gender segmentation • Lifestyle segmentation • Usage segmentation • Benefit segmentation • Segmentation by aesthetics
  • 27. Segmentation by aesthetics Factor 1. Bold, exiting, thrilling, crowded, active (retiring, peaceful, soothing, alone, leisurely) Factor 2. Familiar, real, symmetrical, matching, (strange, fanciful, asymmetrical, contrasting) Factor 3. Hard, sturdy, practical, technical, powerful, profitable, (soft, delicate, decorative, emotional, graceful, social) Factor 4. Stage play, curved, paintings (movies, angular, photographs) Factor 5. Sophisticated, outstanding, luxurious (sentimental, customary, comfortable) Factor 6. Dramas, serious, dramatic, alone (musicals, funny, pretty, crowded)
  • 29. Different types of competition Intratype competition Intertype competition The Pushkin Fine Arts Museum Concert “Moscow Virtuosi” vs vs Tretyakov State Gallery Opera “Boris Godunov” Substitute competition Indirect competition Opera “Traviata” in Bolshoi Photo Exhibition Theatre vs vs Spartak - Lokomotiv CD record of this opera
  • 30. Collaboration Interdisciplinary crossovers Discipline Crossovers Ballet Art museums, opera, classical music, theater Modern dance Art museums, theater Opera Art museums, dance, classical music, theater Art museums All other disciplines Science organizations Classical music Arboreta Opera, classical music, theater Classical music Art, dance, opera, theater New music Art, dance, theater Theater Art, history, cultural museums, opera, classical music
  • 33. Advertising Public presentation Advertising is a highly public mode of communication. Many people receive the same message, buyers know that their motives for purchasing the offering will be publicly understood Pervasiveness Advertising is a pervasive medium that permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors. Amplified expressiveness Advertising provides opportunities for dramatizing the organization and its offerings through the artful use of print, sound, image, and color. Impersonality The audience does not feel obligated to pay attention or respond to advertising.
  • 34. Personal selling Personal interaction Personal selling involves a living, immediate, and interactive relationship between two or more persons. Cultivation Personal selling permits cultivation of relationships, ranging from matter-of0fact selling relationships to deep personal friendship. Response Personal selling makes the target audience member feel under some obligation to respond, even if the response is only a polite “thank you”.
  • 35. Sales promotion Communication Sales promotion gain attention and usually provide information that may lead the consumer to the product. Incentive They incorporate some concession, inducement, or contribution that gives value to the consumer. Invitation They include a distinct invitation to engage in the transaction
  • 36. Public Relations High credibility News stories and features seem more authentic and credible to readers than to advertisements. PR can reach many prospects who might avoid salespeople and advertisements. Dramatic appeal PR, like advertising, has the potential for dramatizing and building the image of an organization of offering. Low cost The costs for PR efforts undertaken by any organization with an in- house communication manager are relatively low.
  • 37. #8 Art as a tool of marketing
  • 38. Art as a tool of marketing
  • 39. Art as a tool of marketing