Marketing summary – Creative arts marketing
WEEK 1
Introduction
Marketing = recognition by organizations that without customers they have nothing but costs.
Quality is essential to marketing success.
Product-led businesses maintained that if a product was of sufficiently high quality, people
would flock to buy it on its own merits.
Sales-led businesses maintained that the key to success lay in an organization’s ability to sell its
goods to customers. The principles of selling have an essential role in the way that arts
organizations service their customers. Genuine success in the arts lies in seeing customers as
partners rather than targets.
The whole organization should adopt he marketing, otherwise it wouldn’t work. Also, the job of
marketing never ends, it needs to find new improvements over and over again.
Around 1970 marketing spread into the service sector (arts, medicine, tourism, transport, etc.).
These organisations offer their customers an intangible service rather than a product.
Stakeholder = any group/individual who has an interest (‘a stake’) in the success of an
organization.
The emphasis in businesses has moved from recruiting new customers and hoping they will stay
(transaction based), to analysing and managing long-term relationships with existing customers
to try and make sure of keeping them (relationship marketing).
Chapter 1 – the evolution and context of arts marketing
Arts marketing is an integrated management process which sees mutually satisfying exchange
relationships with customers as the route to achieving organizational and artistic objectives.
In its commercial incarnation, marketing dictates the nature of a product or service through
conforming it to the requirements of the customer. The artist, on the other hand, needs to create
independently of such conformance, because of the special nature of cultural goods. Marketing’s
role is therefore not to influence the kind of art produced, but solely ‘to match the artist’s
creations and interpretations with an appropriate audience’.
STEP-model: reveals long-term trends and forces which help explain the opportunities and
threats facing arts organizations.
• Socio-cultural factors – the arts are part of leisure trends/activities. Age, gender and
ethnicity are factors that decide what people choose to do. But also gender roles have an
effect on marketing in the arts.
• Technological environment – developments in information and communication
technology have caused a revolution in arts marketing, computers and phones opened up
new forms of audience contact and sales channels. The internet is a powerful tool for
organizations.
• Economic environment – commercial vs. subsidized sector. Arts belong to the category of
discretionary purchases – what people spend their leftover money on.
• Political environment – exists at three levels:
1. Local – important source for subsidized arts.
, 2. National – value the arts as something worth promoting, seen as ‘merit good’ =
something of social value but which people might not be prepared to pay for if left
to themselves. Therefore the government tends to support it.
3. International – important to touring companies and exhibition organizers, and
also more relevant for the sector as a whole. International political groupings see
the arts as an essential tool in cultural development, and it is likely that this trend
will continue to offer increasing opportunities for arts marketers to extend their
audience reach.
Arguments against the subsidized arts sector: Arguments for the subsidized arts sector:
• Individual is free to buy whatever he/she wants at • Education
a competitive market price, implies no subsidy • Inspiration
• Individual is the best judge for what he/she wants, • Urban regeneration, employment and
no hierarchy of taste preferences. community growth
• If the individual is not a good judge, no one else is • The hallmark of a civilized nation
necessarily better.
Arm’s-length principle = holds that the organizations which distribute the funds remain
independent of local or central government and do not seek to bend creativity or artistic
interpretation to party politics.
• Excellence vs. accessibility
• Professional vs. amateur
• Traditional vs. new art forms
Marketing – lecture 1
Marketing & the arts and culture
“Marketing is still often confused with sales – the two terms become interchangeable. And in
popular terms, both become less than honourable professions with less than honourable
intentions – selling us something we do not want to buy”.
Marketing is not sales, definitely not in the arts and culture sector. It’s not about selling. But how
can artists survive while making art.
Marketing: a bit of context (1)
Modern marketing started after WWII – manufacturers realise that having (a lot of) products or
even strong sales tactics was not enough.
Marketing comes from the word market – the set of people that are a potential buyer of the
product. How many people would be interested in buying a certain product = your market.
In terms of marketing there are a few associations. It’s an activity about management. Planning,
pricing, promotion, distribution of goods, organizational objectives (not just the customer but
also the organization). Each form of these definitions have different perspectives, but they are all
based on the idea ‘customer’ (the person, you orient your thought towards the customer).
Product-led business = people buy it on the product own merits
Sales-led business = ability to sell goods to customers
Marketing: a bit of context (2)
• 1950’s and 1960’s: geographical spread of marketing, spread in different sectors beyond
manufacturing industries.
• 1970’s: marketing spreads to service sector (medicine, transport, tourism, arts &
culture)
, • 1980’s: some principles of the marketing approach are questioned, in particular when
applied to the service sector.
➢ Customer = commercial exchanges
➢ Who are the ‘customers’ in health, education and arts?
➢ Making profit + organisational objectives (non-profit and public sector
organizations)
• 21 century: retaining customers more than getting new ones (customer loyalty)
st
➢ The influence of technological developments on improving relationships with
customers.
➢ Relationship marketing – long-term value of customers
Marketing & arts and culture
Marketing not as a little department that somebody does in one organization, but you have to
think of all the parts of an organization. Your strategies change sometimes, marketing is a good
tool to do that.
Non-profits often have ambiguous goals and objective which leads to internal disagreements.
Who is the customer?
Stakeholder = any group or individual who has an interest (a ‘stake’) in the success of an
organization; stakeholders affect the organization’s access to resources and support.
Activity
Examples of stakeholders: stakeholders of museum (board) or arts venue: investors/sponsors.
Community, artists, consumers.
Creating value
We are the cultural marketer. Bridging between the artists and the customers.
“Marketing’s role is, therefore, not to influence the kind of art produced, but solely ‘to match the
artist’s creations and interpretations with an appropriate audience”.
Asking customers?
Marketing research = when you try to understand who are your customers and what they want.
Experience economy
“Arts marketing needs to communicate an experience; and an experience that can be elusive,
indescribable, transformative, or simply bloody good fun”.
Experience/ transformation/ meaning/ sharing (collaborative) economy.
• Coffee = extract commodity
• Coffee packs = make goods
• Selling coffee = deliver services
• Star bucks = provide experiences.
Meaningful experience
Characteristic of a meaningful experience:
• One is touched emotionally
• There is heightened concentration and focus
• They involve all one’s senses
• One’s sense of time is altered
• The process is unique for the person and has intrinsic value
• One has contact with one’s environment by doing things and undergoing things