Previous Publications

Transcription

1 Standing Room Only

2 Previous Publications Standing Room Only: Strategies for Marketing the Performing Arts, coauthored with Philip Kotler, Arts Marketing Insights: The Dynamics of Building and Retaining Performing Arts Audiences, 2007.

3 Standing Room Only Marketing Insights for Engaging Performing Arts Audiences Second Edition Joanne Scheff Bernstein

4 STANDING ROOM ONLY Copyright Joanne Scheff Bernstein, All rights reserved. First published in 1997 by Harvard Business Review Press, Boston, MA. First published in 2014 by PALGRAVE MACMILLAN in the United States a division of St. Martin s Press LLC, 175 Fifth Avenue, New York, NY Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN ISBN (ebook) DOI / Library of Congress Cataloging-in-Publication Data Bernstein, Joanne Scheff, 1945 Standing room only : marketing insights for engaging performing arts audiences / Joanne Scheff Bernstein. Second edition. pages cm 1. Performing arts Marketing. I. Kotler, Philip. Standing room only. II. Title. PN1590.M27B dc A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: May

5 For Jacob May the arts offer you a lifetime of delights and inspiration This book is also dedicated to the many artists of generations past and present whose work inspires, challenges, and sustains me

6 Contents List of Tables and Exhibits Foreword Philip Kotler ix xi Introduction 1 1. The Performing Arts: History and Issues an Ongoing Crisis? A Growing Crisis? 9 2. The Evolution and Principles of Marketing Understanding the Performing Arts Market: How Consumers Think Exploring Characteristics of Current and Potential Performing Arts Attenders Planning Strategy and Applying the Strategic Marketing Process Identifying Market Segments, Selecting Target Markets, and Positioning the Offer Conducting and Using Marketing Research Using Strategic Marketing to Define and Analyze the Product Offering Managing Location, Capacity, and Ticketing Systems Focusing on Value and Optimizing Revenue through Pricing Strategies Identifying and Capitalizing on Brand Identity Formulating Communications Strategies 241

7 viii Contents 13. Delivering the Message: Advertising, Personal Selling, Sales Promotion, Public Relations, and Crisis Management Harnessing and Leveraging the Power of Digital Marketing Methods Building Audience Frequency and Loyalty Focusing on the Customer Experience and Delivering Great Customer Service Audiences for Now; Audiences for the Future 357 Notes 371 Index 395

8 Tables and Exhibits Tables 5.1 Subscription drive expenses at the Steppenwolf Theatre Example of a program budget and line-item budget combined Lifetime value of subscribers: Example A Lifetime value of subscribers: Example B 317 Exhibits 5.1 An arts organization s publics Types of survey questions 163

9 Foreword When Joanne and I published the first edition of SRO in 1997, we recognized an intense need among performing arts managers and marketers to increase their understanding and practice of the principles, strategies, and tactics that would help them to improve their effectiveness and efficiency in developing and retaining audiences. Since that time, there have been significant changes in the lifestyles, behavior, and preferences of current and potential audiences that have made it increasingly difficult to fill seats for performances. People want to select exactly which programs to attend and, as a result, subscriptions have declined dramatically. People are more spontaneous and more commonly make their purchase decisions within a short time before the performance, making it harder for managers to plan. Pricing strategies have become complex. With the advent of dynamic pricing in the arts world, and trends to deeply discount ticket prices, a strong emphasis on price has obfuscated the true value of attending performing arts events. It is crucial that arts marketers fully understand pricing principles and options and how best to employ them. Digital marketing has become central to the marketer s communication efforts. Arts marketers must know how best to leverage the power of the Internet, , social media, and big data. People have come to expect personalized offers and great customer service. Performing arts organizations need to train their staff in a thoroughgoing customer service philosophy. In the light of these developments, many of the audience development strategies that worked in the past are no longer as viable as they once were. A mark of sound management of any organization is to review the new market conditions, the competition both inside and outside of the arts world and the mind-set of consumers, revise old assumptions, and develop new marketing initiatives for breathing fresh life into the performing arts business.

10 xii Foreword We know that a significant proportion of the population truly enjoys attending arts events. They look forward to their visits to symphonies, theaters, operas, and dance companies. They need reliable information describing the art and performers in order to select carefully among the many offerings. Today s art goers are price and time conscious and everything must be done to give them a picture of what to expect with any performance. Performing art organizations face tight budgets. They need to set their prices carefully in relation to the value of the experience. They need to improve their fund-raising by satisfying their audiences and other potential donors. Marketing is the art of creating genuine customer value. The marketer s watchwords are quality, service, and value. Joanne Scheff Bernstein has not only taught arts management and marketing at Northwestern University, but has also consulted with many arts organizations throughout the United States and in many other countries. She also ran an orchestra for two years and improved its income and capital, and importantly, greatly increased its audience size. She is one of the most effective consultants and educators on the performing arts. She is the best person I know to guide you to the new market factors and the new strategies, based on sound marketing principles. Her advice in the book will improve your audience development results now and into the future. She will help you to understand the changing customer mind-set and to leverage the many new opportunities created by the digital revolution and its manifestations in web-marketing, , and the use of social media. I encourage every arts manager and marketer, student and teacher of arts management, board members of arts organizations, and other stakeholders in the performing arts to read this book and discuss every chapter with their peers. New ideas are bound to emerge to help your arts organization build your brand and deeply satisfy your target customers. Philip Kotler S. C. Johnson & Son Distinguished Professor of International Marketing Kellogg School of Management Northwestern University