MARKETING RESEARCH AND STRATEGIC MARKETING PLAN: …
Transcript of MARKETING RESEARCH AND STRATEGIC MARKETING PLAN: …
i
NOVA Information Management School
MARKETING RESEARCH AND STRATEGIC
MARKETING PLAN: LISBON ART WEEKEND
Engin Deniz Gürler
Lisbon Art Weekend Internship Report
Internship report presented as partial requirement for
obtaining the Master’s degree in Information Management
ii
Instituto Superior de Estatística e Gestão de Informação
Universidade Nova de Lisboa
LISBON ART WEEKEND INTERNSHIP REPORT
by
Engin Deniz Gürler
Internship report presented as partial requirement for obtaining the Master’s degree in Information
Management, with a specialization in Marketing Intelligence
Advisor: Pedro da Costa Brito Cabral
June 2021
iii
ABSTRACT
This internship report is about the Lisbon Art Weekend (LAW), which is an annually held event in
Lisbon. This yearly event is managed by a non-profit organization, which has both advantages and
disadvantages in Lisbon’s art market. In this internship, I had the opportunity to have a closer look at
Lisbon’s contemporary art scene, and also to put my background knowledge in marketing into
practice in order to come up with several strategic goals for the LAW. I have benefited from the
“Marketing Mix” and the SWOT analysis, both of which are commonly used in marketing research.
The SWOT analysis results led to the development of 10 strategic goals, all of which are expected to
solidify LAW’s position in the market. By implementing these plans, LAW would strengthen its
relations with the public and its customers, while being able to reach out to more sponsors and
generate revenues more easily.
KEYWORDS
Nonprofit Organization; Marketing Research; Strategic Marketing Planning; Event Marketing
iv
INDEX
1. Introduction .................................................................................................................. 1
1.1. Problem Description .............................................................................................. 1
1.2. Scope of this work ................................................................................................. 3
1.3. Objectives .............................................................................................................. 3
2. Methods ....................................................................................................................... 5
2.1. Marketing Mix ....................................................................................................... 5
2.2. Swot Analysis ......................................................................................................... 7
3. Results .......................................................................................................................... 9
3.1. Lisbon Art Weekend and First Edition of Law ....................................................... 9
3.2. Outcomes of Marketing Mix................................................................................ 10
3.3. Results of Swot Analysis ...................................................................................... 11
3.3.1. TOWS Analysis .............................................................................................. 14
4. Conclusion .................................................................................................................. 17
v
LIST OF FIGURES
Figure 1. Marketing Mix Cycle .................................................................................................... 6
Figure 2. Lisbon Art Weekend’19 Map, Part 1 ........................................................................... 9
Figure 3. Lisbon Art Weekend’19 Map, Part 2 ......................................................................... 10
Figure 4. TOWS Analysis ........................................................................................................... 15
vi
LIST OF TABLES
Table 1. SWOT table created by LAW team’s insights ............................................................. 12
vii
LIST OF ABBREVIATIONS AND ACRONYMS
AMA American Marketing Association
LAW Lisbon Art Weekend
NPO Non-profit Organization
SG Strategical Goals
1
1. INTRODUCTION
1.1. PROBLEM DESCRIPTION
Art marketing has been developing remarkably since the 1990s. Many marketing scholars have
shown interest in the sector of art and culture, and some have considered this as a branch of non-
profit marketing (Lee, 2005). The structure of the art market had gone through some substantial
changes as online sales got a boost from the widespread use of internet. More specifically, the
accumulation of art investors and mutual funds led to the creation of more than 260 art fairs held
annually (Art Marketing Trends, 2011). Today, the art market consists of artists, art audiences /
buyers / collectors, curators, art critics, art consultants, art galleries, auction houses and museums,
as well as many basic actors such as art fairs and biennials (Ağlargöz & Öztürk, 2015).
The globalization of the art market has driven up the number of art fairs. This, in turn, caused some
alterations in the classical art market, while paving the way for new concepts like 'fair fatigue' (Mun-
Delsalle, 2016; Schachter, 2018). The most important change that “fair fatigue” brought along was
the emergence of gallery/art weekends. Therefore, it is necessary to segregate art fairs and
gallery/art weekends, in order to understand the “fair fatigue” concept. While art fairs exhibit
properties of a trade show where artists, collectors and curators gather in the same place, art/gallery
weekends take place as alternative events that allow people see art exhibitions in separate places
such as galleries, museums, or artist run spaces. In other words, art/gallery weekends are extremely
disaggregated in terms of location. Parties engaged in the art market need to travel among those
different spaces, which brings some disadvantages like the “fair fatigue”. In order to catch up with all
these major art events held in many different places, art lovers unintentionally enter a marathon.
This intense circulation eventually results in overwhelming (Kennedy, 2015; Winkleman, 2006),
elevated costs (stand prices, stand designs, tickets) and tiredness.
On the other hand, previous research mentions that participants perceive information they receive
as more deep when they see see artworks in their own places. These places also allow a better
perception of the relationship between artists and galleries. In addition, free access to artwork is also
a great advantage for the participants (ArtSpace, 2013; Mun-Delsalle, 2016; Schachter, 2018).
All type of events require project planning in order to meet the relevant market targets (Glenn, Allen,
O’Toole, Harris, & McDonnel, 2006). In line with the aforementioned background information, the
main goal in this internship was to seek out new opportunities and to find new marketing practices
for Lisbon Art Weekend (LAW). To do that, the organization needs to take the appropriate steps in
their marketing strategy because its competing decisions (where and how to compete) are related to
present and/or planned marketing behaviors (Varadarajan, 2010).
Although marketing is a frequently used term, it has no universal definition. According to the Charted
Institute of Marketing (2020), the term marketing means ‘The management process responsible for
identifying, anticipating and satisfying customer requirements profitably’. American Marketing
Association (AMA) adopts a similar definition: ‘Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large’ (American Marketing Association, 2020). Those
2
definitions demonstrate that marketing goes beyond providing communication to customers, it also
has a role in the creation of the provided good or service and how it is delivered to customers (Miller,
2010). Over time, new developments and changes have integrated the term and reconfigured the
factors related to marketing as follows (Glenn et al., 2006):
• Need of different marketing approaches for the growth number of varied services that are different from goods
• Realization of the special marketing requirements for nonprofit organizations
• Increasing power of different actors that has power on organization such as sponsors, media, governement
• Technologic developments
• Increasing global opportunuties with internalization
All in all, marketing aims to satisfy consumer needs by developing a related series of ideas
(Hannagan, 1992c). Each business unit develops its own way to specify and implement its marketing
strategy. The strategies developed in this internship are in reference to ‘’event marketing’’ and
‘’marketing in non-profit’’. This is because if the adopted marketing strategy is not suitable for
nonprofits, it would be inconsistent with LAW’s organizational structure and therefore, some
budgetary issues might emerge. Also, focusing on “nonprofit marketing” brings up new topics such as
sponsporship.
Application of marketing in the non-profit context came into the scene in the period 1960-1980.
According to Hannagan (1992a), marketing is related to profitability and is expected to provide a
competitive advantage. However, this explanation is only valid for for-profits. In the non-profit
marketplace, the essential connection between the customer and organizations is the costumer
service (Hannagan, 1992a; Pope, Sterrett Isely, & Asamoa-Tutu, 2009). The urge of organizations to
satisfy similar customer needs or to increase the commitment of time and energy from the same
targets cause a competition between organizations. Competition occurs in the non-profit sector
when several actors target the same segment of customers, or service providers (Ritchie & Weinberg,
2000). Business-like techniques were brought into effect by nonprofits in order to combat the ever-
expanding competition, therefore leading to the adoptation of marketing strategies by nonprofits.
The business structure of nonprofits restrict their flexibility for adapting to changing market
conditions. That means the orientation according to demands of marketplace is quite hard for
nonprofits to implement. However, nonprofits can use a variety of marketing instruments without
compromising its mission (Dolnicar & Lazarevski, 2009). Nonprofits can use marketing as a tool for
finding volunteers, raising awareness, motivating behavioral change (Miller, 2010).
According to Business Dictionary (2019), event marketing is defined as ‘’ The activity of designing or
developing a themed activity, occasion, display, or exhibit such as a sporting event, music festival,
fair, or concert) to promote a product, cause, or organization’’(Business Dictionary, 2019). In order to
combine the right activity and the right people under the right context, there are different marketing
tools put to use, such as Business to Business event marketing (B2B) and Business to Consumer (B2C)
marketing. In this event, the focus is on B2B for galleries and sponsors, and B2C for attendance.
Difference between these two approaches is the tone of voice. On the business side (B2B), the main
objectives are helping a business to increase revenue, generate leads or gain a competitive
advantage. On the other hand, personal interests and benefits that improve with experience are at
3
the heart of the consumer side (B2C) (“B2B vs B2C Event Marketing: Strategies and Tips,” 2018). In
this internship, all type of attendants will be evaluated according to this theory.
According to Hoyle (Hoyle, 2002) every type of event shares the three critical Es of event marketing,
which are explained in more detail in the upcoming paragraph:
• Entertainment;
• Excitement; and
• Enterprise.
To start with, entertainment is something that can be easily reached from homes nowadays. Because
of that, for a successful event, a different and unique element should be present in order to attract
attention from the audience so that they decide to participate in the event. Second, excitement is an
important part of an effective marketing plan, and it can be provided in different ways with several
activities. Lastly, enterprise in marketing refers to pioneering, going into unexplored territories and
taking initiative. The goal of the enterprise is to get inside the mind and imagination of the target
audience (Hoyle, 2002). These aforementioned items (i.e., the 3 Es) constitute the basis of the
marketing plan suggested at the end of this internship.
1.2. SCOPE OF THIS WORK
According to the data obtained from Mapa das Artes, Lisbon nests more than 100 art spaces (2019).
Lisbon Art Weekend (LAW) is established for letting art lovers discover Lisbon’s contemporary art
scene. By enabling this, LAW help artists and art venues become more aware of the art market, as
well as improve their marketing practices. Here, what is meant by marketing practices does not refer
to sales. Art must be seen to be sold, and for this to happen, the work needs to be known and seen
by people which put the art marketing into practice.
Major cities like Lisbon offer many choice options for their residents to spend their disposable
income and leisure time. Therefore, events in such cities need to be prepared according to the needs
of target consumers. In order to understand its target market and satisfy their consumers’ needs, all
events need to implement the principles of marketing while meeting the needs of their targets.
That’s what makes marketing salient in the organization field, and therefore it is also crucial for LAW
(Glenn et al., 2006). LAW needs to improve its marketing plan to obtain more satisfied consumers.
1.3. OBJECTIVES
This report aims to analyze the first edition of Lisbon Art Weekend and find applicable strategic goals
to be usen in future events. LAW is a non-profit organization that provides a special weekend event
for art lovers coming from all around the world. Via this event, Lisbon’s contemporary art scene is
introduced to this vast audience. The event is occurring in several venues such as galleries, artist-run
spaces, private art collections, and museums. This variety also allows the audience to observe the
diversity of art spaces in Lisbon. In this internship, I have learnt to put my marketing research and
planning skills into practice. Initially, LAW did not have any specific marketing plan. Later, after the
4
first event took place in between 15-17 November, 2019, results showed up. These results were
subsequently used in the marketing research I conducted and yielded some marketing solutions for
LAW. These solutions can only be used by LAW during the upcoming events. In the final stage of this
internship, related researches and methodologies used led to the determination of suitable strategic
marketing, which would enable LAW to gain more awareness for its future projects.
5
2. METHODS
Any business can have a coherent marketing strategy after learning its position in the marketplace
(by both identifying internal and external dimensions) and an idea about its customers' needs and
demands (Hannagan, 1992b). To find the most appropriate strategies, a business should follow these
steps: first, information gathering about the market and the company, and second, creating the best
solutions in accordance with the challenges encountered. Before diving deeper into the
methodology, it is necessary to clarify the meaning of the word ‘strategy’. Globalization and its
influence on the intensification of competition have had put strategic planning under the spotlight.
Strategy can be considered as a universal concept where a single definition would be insufficient
(Karakaya & Çoban, 2010). According to Webster's dictionary, strategy is the science and art of
placing the military power of the sides suitably in accordance with the conditions to reach a better
result in a war (Merriam-Webster Dictionary, 2020). However, when the economic, political and
administrative aspects are considered, the concept of strategy gains a different meaning. In
management science, the concept of strategy is referred to as the ways or tactics an organization
follows to achieve its purpose. Strategy in marketing is defined as the achievement of a long term
advantage via the usage of related tools such as 4 P’s to come up with tactics (Varadarajan, 2010).
Previous literature mentions that, there are different points of view that demonstrate a diverse
comprehension of marketing strategy and tactics, and marketing strategy and marketing
management. In this internship report, the focus is on “marketing strategy and tactics”, in which
marketing behaviors of companies are investigated (Varadarajan, 2010).
The methodologies used to achieve this internship objectives are explained in detail in the upcoming
sections.
2.1. MARKETING MIX
A concept founded by Neil H. Borden, “Marketing Mix” exhibits an ideal combination of all marketing
basics that would enable companies realize their business goals and their position in the market. A
sustainable marketing strategy necessitates the usage of a marketing mix, which can be categorized
into four elements; Product, Price, Place and Promotion (Figure 1). All of these four variables are
dependent to each other and need to be considered jointly during the pursuit of customer
satisfaction. A combination of these elements harbor the essences of marketing, and therefore helps
the company formulate its strategic decisions. Moreover, a clear definition of the four Ps (product,
price, place and promotion) reveals any vague aspect of the business, thus allows the evaluation of
marketing practices while keeping an eye on the organization’s existing resources. Schematization of
these aspects further eases the management of marketing tools. Companies can create a longer or a
shorter list of variables depending on their classification of demands (Borden, 1964; Hannagan,
1992b; Singh, 2012). An organizational point of view is introduced in a study by Hannagan (1992b),
stating that the capabilities of an organization need to be compatible with the promotion and
distribution of the products/services while reaching potential customers, and with the range and
price of products/services that enable the organization to meet customer needs. Lastly, combining
the marketing mix with other techniques yields better results since a mere implementation of the
marketing mix overlooks the target consumers, as it focuses only on the company and its resources.
Here, we intend to eliminate this deficiency by applying the SWOT method, which takes into
6
consideration some other factors. More detailed information regarding the SWOT analysis is
presented in the following sections.
Figure 1. Marketing Mix Cycle
Product
Just as in the for-profit sector, the non-profit sector tries to provide their customers a different and
unique experience in order stand out among its rivals. Product is the core element of the marketing
mix, that refers to a physical good or service provided by the company (Singh, 2012). In this case, as
an event, LAW offers its services to the event participants attending to many different art spaces. In
other words, the “product” of LAW is the opportunity provided to the public so that LAW’s attendees
from different backgrounds can get familiar with Lisbon’s ever growing urban contemporary art
scene, including the experience they can gain while enjoying artworks and performances.
A clearly identified mission and vision statement would be highly useful for an organization to
increase its reputation. Besides, LAW includes series of events that give both direct and indirect
allowances to its customers (attendees) through the collaboration with art spaces. Events such as art
talks and guided tours are also present in the LAW. Apart from those, art spaces create their own
events like exhibition openings, performances and studio visits. Having a variety of activities shows
that LAW has a product/service mix. Considering the information mentioned above, LAW already
offers different quality programs in order to satisfy both the needs of its attendees and the
participant art spaces.
Price
Price is another element of marketing mix, which might be confusing when it comes to nonprofits. In
this organization (LAW), price structure is comprised of funds and personal costs. While
implementing programs, funds play an important role in determining the organization’s price
structure. In the first event, no participants were charged, since funds obtained from several
business units and personal spending by founders compensated all expenses. However, there is a
7
non-negligible confusion about LAW’s budgeting. Since this organization was preliminary, there is not
much attention given to pricing yet, but different income sources need to be unlocked in order to
make the event program more efficient in the future.
Promotion
This element provides clear information about the message delivered to the target audience and
represents the suitability of the delivery channel of that message (Miller, 2010). As a powerful
element of promotion, Advertising focuses on creating and establishing the image of the product in
the market and shows the position of the product in the target market which also makes it one of
the most important tool as outlining the competition (Singh, 2012). LAW use several ways to
promote its event which includes having brochures at galleries and sponsored places (such as
Fundaçao Calouste Gulbenkian and Tourismo Lisboa) and social media. Being a part of Art Across
Europe (https://www.artacrosseurope.com) also helped LAW to make its name.
Place
Place is all about the accessibility of the provided service. It is important to ensure that customers
know where and how to access the service/product (Singh, 2012). Since the LAW takes place in
several location, “placement” yields a certain advantage to the organization. Equipping participants
with event maps and giving them online access to acquire information on the details of the event
program would help attendees develop their own visiting plan. Besides, the participants can benefit
from guided tours according to their preferences. In guided tours, several art spaces can be visited
with a tour guide who explains the details.
2.2. SWOT ANALYSIS
All companies come across to internal and external forces that affect their future goals that sets
invisible and unexpected potential limitations. To develop a promising strategic plan, these forces
need to be determined (Houben, Lenie, & Vanhoof, 1999). Nowadays, SWOT Analysis is one of the
most used tool that help companies to understand the dimensions of their company with two
approaches; Market Research and Strategy Development (Leigh, 2010).
Many organizations engage in strategic planning based on the results coming from the evaluation of
internal and external conditions. SWOT Analysis is a practical technique to identify and fill out the
variables that define the company’s business (Steiss, 2003). This methodology also helps businesses
understand their strengths and weaknesses, enables them to recognize the surrounding
opportunities and let them be aware of the potential threats. SWOT analysis helps the organization
detect the right paths to follow by assessing potential opportunities in the face of threats, as well as
gives the organization an overview on its strengths and weaknesses. It can also be used as a risk
determining tool by assigning variables as follows:
• Strengths and Weaknesses as internal risks; and
• Opportunities and Threats as external risks. All four variables have different intentions. External variables, namely opportunities and threats are the ones that exists outside of the company and have short term impacts. On the other hand,
8
internal variables are directly related to company itself and include company structure, culture and resources (Houben et al., 1999).
In this regard, by ensuring essential information collection, SWOT analysis is a very useful tool to
form a base for the establishment of a strong marketing strategy because strategic goals must
develop for the sake of minimizing weaknesses, figuring out how to use the strengths of the
organization, also for avoiding threats and taking advantage of opportunities (Glenn et al., 2006).
LAW can build a marketing strategy by taking insights from its list of strengths as well as weaknesses,
which helps the organization to have a clear vision of the opportunities ahead. These opportunities in
turn form a basis for the business strategy and strategical goals to be pursued.
9
3. RESULTS
3.1. LISBON ART WEEKEND AND FIRST EDITION OF LAW
Marc Kean Paker and Merve Pakyürek are the coordinators (founders) of Lisbon Art Weekend. They
explained their reason(s) for choosing Lisbon to do this gallery weekend and gave some extra details
to Myles Francis Browne from Umbigo magazine. According to this interview, the co-founders of the
LAW state that while they were visiting gallery weekends and contemporary art fairs throughtout
Europe, they realized the absence of such an event in Lisbon despite the shiny city’s developing
contemporary art scene. Bringing their contribution in life with reshaping the stance towards a more
inclusive format turned the project from its starting point 'Gallery Weekends' to 'Art Weekend'.
These two concepts have several differences such as hosting nonprofit art spaces, or taking
commission from participants. Merve and Kean opted for a committee for them to undergo an
unprejudiced and well done selection process. Participants that applied over open call were chosen
by the following selection committee: Carolina Pimenta, Adelaide Ginga, Carlos Durán, Deborah
Harris and Luiza Teixeira de Freitas.
During the three-day event, 19 participants held at least one event in 22 different locations and kept
their doors open for the public. The names of these 22 art spaces can be listed as follows: 3+1 Arte
Contemporânea, AZAN, Balcony Gallery, Bruno Múrias, Carlos Carvalho Arte Contemporânea,
Carpintarias de São Lázaro Centro Cultural, Casa dell’Arte Lisbon, Cristina Guerra Contemporary Art,
Galeria 111 and Galeria Belo-Galsterer. Along with the exhibitions, some other occurences also took
place in the event program such as cocktails, talk panels, and private&public guided tours for visitors
(Umbigo Magazine Interview, 2019).
Figure 2. Lisbon Art Weekend’19 Map, Part 1
10
Figure 3. Lisbon Art Weekend’19 Map, Part 2
In total, LAW was sponsored by 7 different companies:
• Arco
• Tourismo Lisboa
• Heden
• Fundaçao Calouste Gulbenkian
• Coletivo 284
• Viriathus drinks
• Quinta da Chocapalha
These companies were responsible for different activities. To illustrate, Arco supported the public
and private guided tours, whereas Tourismo Lisboa was responsible for marketing activities, and
Heden provided the working place. Fundaçao Calouste Gulbenkian organized an open day for VIP
guests, and Coletivo 284 provided the space for opening cocktail. The last two companies – Viriathus
drinks and Quinta da Chocapalha) were responsible for the beverage products served in the opening
cocktail. Lastly, there were in total 12 volunteers worked for the event, with 7 of them being in
charge of support at the art spaces, and 5 being responsible for the photography.
3.2. OUTCOMES OF MARKETING MIX
As a powerful methodology, the “marketing mix” shows the deficient parts of the organization that
need to be strengthened. In the product part, need of clear mission and vision statement showed up.
The marketing mix facilitates the next steps that LAW should take while presenting and sharing ideas
with its potential sponsors, exhibitors, volunteers and so forth. Mission statements are in principle
about the problems or circumstances that the organization is willing to address and change by
11
showing endeavors. On the other hand, with vision statements, an organization aims to show an
image of success that will motivate people within the its body (Steiss, 2003).
In the view of received information, the mission, vision statements of LAW indicate that;
Mission: Being an event that allows experiencing art in their own habitats.
Creating a unique art experience for everybody
Highlight and support the art scene of Lisbon
Vision: Making art reachable for everyone.
Second point that needs to underline is ‘Promotion’. Since it is an event that take place only once per
year, LAW need to have a long-term social media plan to remembered easily by its followers. For to
be able to do that, getting more visual content from the last event is a good option. These images
have potential to shared by artist and galleries which means to reach more people.
3.3. RESULTS OF SWOT ANALYSIS
The SWOT analysis is very helpful especially in scenario planning and strategy development and its
use is widespread among non-profits (Leigh, 2010). Here, the SWOT analysis that I conducted during
this internship was based on the qualitative information collected from LAW’s insight team.
The SWOT table created by insights from the LAW team is presented below (Table 1);
STRENGHTS Scores WEAKNESSES Scores
1. Free events for visitors
2. Art expertise
3. VIP tours
4. Free of charge for art spaces
5. Absence of such an art event
6. Multi-locations by collaborations with
several art spaces
5
3
3
5
5
5
1. Communication difficulties with art
spaces
2. Lack of organization awareness (Public
Relations)
3. Lack of sponsors
4. Difficulty to measure the impact of
event
3
4
5
4
OPPORTUNITIES THREATS
1. Increased interest in art
2. Lisbon's position as a tourist
destination
4
4
1. Newcomer to the market
2. Difficulty of entering into the emerging
international market
3
3
12
3. Lisbon’s position as a developed art-city
connection
4. Volunteer interest for being a part of
such an event
4
5
3. Losing loyalty of participants 4
Table 1. SWOT table created by LAW team’s insights
Strengths
Being a unique event in Lisbon provides a number of advantages to LAW. In addition, the abundance
of art spaces located all around Lisbon allows attendees to choose the places they want to visit
during the event. As mentioned before, one of the most important features of LAW is that it is free.
This feature is very important for both visitors and exhibitors. While public art tours, art talks and
other events capture a good amount of interest from the visitors, art galleries are also given the
opportunity to use this event as a good chance to promote their spaces and artworks since they also
do not pay any participation fee. Moreover, these spaces also benefit from the VIP tours. Besides,
visitors are affected positively from additional tours and specific group visits. Lastly, there is also no
similar events to LAW held in the Lisbon art scene.
Weaknesses
Communication difficulties cause a problem since they prolong the planning process and create
misunderstandings between parties. Sponsorship is another major issue since it requires a marketing
plan for LAW. As a nonprofit organisation, funding is crucial for future events. Nowadays, lack of
financial support is a very rare phenomenon for any kind of event. Funds provided by companies
have a vital role in an event’s revenue side. Usually, revenues are generated by the association of
different sources. While the primary external source that The main focus of this internship is
sponsorship, a primary external source. However, other external resources such as promotional
partnership, donations and back-end renevues should also take part in this combination (Hoyle,
2002; Wood Schmader & Jackson, 1999). Public relations is a management function that helps an
organization establish and maintain mutual communication, understanding, acceptance and
cooperation with its target audience It also forms a basis for the information provided to the public.
The main purpose of public relations is to enable institutions and organizations to build positive
relations with their respective environments and to create an effective and efficient communication
and interaction atmosphere. In today's business environment, the biggest concern is to design
proper communication strategies by finding and implementing the optimum methods possible. This
puts the public relations departments on a critical position (Karatepe, 2008). In the event marketing
interview series of Benchmark, Alex Burrola from FSB Core Strategies mentions the
interconnectedness between public relations and event marketing;
‘Putting on an event can, of itself, be a stressful and all-encompassing undertaking. Add to
that the need to market the event as an exercise in public relations, and you’ve got a full
scale operation on your hands. It’s not an impossible task, however. From front to back,
successful public relations strategies can be employed to make your event stand out from
13
every other affair vying for your audience’s attention and make them remember it as
something not to be missed next year.’ (Qudosi, 2013)
Assessments with scientific support prompt organizations to take insights regarding the overlooked
aspects of an event. This way, organizations can see the big picture by evaluating their internal and
external resources. This evaluation would then outline and categorize some valuable information for
the organization, and would guide the strategies for next events (Glenn et al., 2006). Since LAW is a
brand-new organization, there are some deficiencies in the business structure like impact
measurements regarding the event. Also, stepping into a vast public scene during the first event
might have some unwanted consequences for LAW like taking wrong decisions for the next event.
Opportunities
Lisbon, a tourism rich city, was named as the 'World's Leading City Destination' by the World Travels
Award (2018). What can be understood from this is that many people want to visit this city, which
creates a huge opportunity for the art scene. In this respect, LAW is a great option for those who
want to explore both the city and its contemporary art elements. An effective staffing plan that suits
to the event’s mission and objectives is the key for success. The biggest opportunity of NPOs is to
work with volunteers, which substantially reduces operational costs. A fair number of volunteers
showed willingness to be a part of this initial LAW event. In addition, the volunteer application period
was quite short. If LAW manages to use the right channels to communicate in the future, the number
of volunteers might increase (Allen, 2010; Glenn et al., 2006).
Threats
The biggest threat that LAW is facing is that it has just entered the art market of Lisbon. Without
proper information use, initiating such a big event poses a danger. As a member of
galleryweekend.org, LAW recognized by internationally. However, since Lisbon Art Weekend is one
of the most premature events in the marketplace, it is still facing a recognition problem in the
international area. Lastly and maybe the most importantly, since LAW does not yet have a big
reputation, the loyalty of its customers is under risk. There is no certainty whether the next event will
have a high retention rate.
The scores attached to each item of the four aspects (strengths, weaknesses, opportunities, and
threats) on a 1-5 scale represent the evaluation of the potential impact of that item on the
organization’s business (Pinto, 2018).
Strengths – results: According to Table 1, LAW gives the highest weight (impact score = 5) on the
items: events being free for visitors, art spaces being free of charge, absence of a similar art event in
Lisbon and inclusion of multiple art spaces by collaborations. The items “art expertise” and “VIP
tours” were given a lower impact score (= 3). Total number of items under strengths aspect was 6.
14
Weaknesses – results: An impact analysis on the defined weaknesses of LAW indicate that a lack of
sponsors has the highest impact on the activities held (score = 5). Lack of public relations and the
difficulty to measure the impacts of the event were both given the score of 4, that still has a
relatively high impact on the business. Lastly, communication difficulties with art spaces was
expected to have some impact on business (score = 3). Weaknesses aspect was comprised of 4 items
in total.
Opportunities – results: The opportunities part includes the evaluation of 4 items, in which the
volunteer interest for the event was evaluated as the most impact creating one (score = 5). Rest of
the items (increased interest in art, Lisbon’s tourist attracting position and the connectedness of art
and city in Lisbon were also scored as 4, expected to have a non-negligible amount of impact on
LAW.
Threats – results: The threats aspect of the SWOT analysis harbors 3 items, where the most impactful
item is chosen as losing loyalty of participants (score = 4). The fact that LAW being premature to the
Lisbon art market also poses a threat, which is scored as 3. Barriers to enter the emerging
international market is also given the score of 3, and therefore is expected to pose a substantial
amount of threat.
3.3.1. TOWS Analysis
As a way to match the variables that are identified in SWOT Analysis, TOWS Analysis can be determined as the next step of SWOT Analysis because by way of combining TOWS Analysis matrix with SWOT Analysis helps companies to take better decisions by reducing the risk of wrong selection of goals. By taking better strategic decisions, companies can move into their future goals easier (Kulshrestha & Puri, 2017). TOWS Analysis is a tool to analyse the environment of a company namely opportunities (O), strengths (S), weaknesses (W) and threats (T). This analysis system brings a shape to the current situation of the company and its future strategic planning. (Kulshrestha & Puri, 2017; Weihrich, 1982). The purpose of TOWS Analysis is to get benefit of advantages while minimizing the impact of weaknesses and keep the company safe from threats (Kulshrestha & Puri, 2017). The results of TOWS matrix based on four basis strategies: - Strengths – Opportunities (SO) Strategies: Using strengths with opportunities to develop strong expansions. - Weaknesses – Opportunities (WO) Strategies: Using opportunities to reduce the effect of weaknesses. - Strengths – Threads (ST) Strategies: Using strengths to avoid the impact of threats. - Weaknesses – Threads (WT) Strategies: Provide a seeing of negative scenarios with using internal and external variables and try to minimize. (Kulshrestha & Puri, 2017) This step is crucial for LAW because connecting these items together reveals some important insights for the development of marketing strategies that can be implemented to improve the impact and quality of future events. Results of this analysis uncovered 10 strategical goals (SG) for LAW, which are presented below.
15
Figure 4. TOWS Analysis
SG1 (S1, O4): Benefit from volunteers to attract visitors, in order to create a positive word of mouth
SG2 (S1, S3, O2): Use social media to promote that the event is free of charge, which is expected to
increase both the international participation rate and the VIP tour attendance
SG3 (S5, O3): Target art-lovers’ needs by selling the uniqueness and importance of such an event
taking place in a city that is strongly connected to art
SG4 (S1, T3): To increase the visitor retention rate, build up relations with visitors by sending them
emails as reminders regarding the upcoming free events that are going to be held by LAW and inform
them about the most mainstream occurrences in the Lisbon art scene
SG5 (S5, T1): Use having no competitors as an absolute advantage during the first phase after the
entry to the Lisbon art market by applying supply quotas or price floors
SG6 (W2, T3): Strengthen public relations by bonding with visitors on an emotional level (make them
feel that they are cared by updating them on the most current trends in Lisbon’s art market)
Opportunities
StrengthsWeaknesses
Threats
SG1SG2
SG3
SG4
SG5
SG6
SG7
SG8SG9
SG10
16
SG7 (W1, W4, O4): Use volunteer support to have a better communication with the art spaces, and
to increase the impact of the event. Moreover, volunteer skills in spoken Portuguese as well as in
organizing the features of the event program can be beneficiary. In order to measure the impact,
volunteers can be given the duty of summing up the number of visitors participating in the opening
events in multiple galleries. Forming a volunteer team to count heads on the opening day would also
leave a good impression of the LAW on different art spaces.
SG8 (W3, O2, O3): The problem of having a lack of sponsors for the LAW can be eliminated through
pointing the importance of art-city connection in Lisbon. Putting this subject forward would give the
management team of LAW team the advantage of reaching out to more sponsors. Along with
pointing out the ever-increasing number of art related spaces in Lisbon, prompting individuals to
assess the city from a touristic point of view, as well as presenting them the art-related environment
in Lisbon would constitute the fundamentals of a solid marketing plan that would capture the
attention of sponsors.
SG9 (W2, O2, O3): It would be wise to use Lisbon’s advantageous position in both tourism and art
while raising LAW’s awareness regarding its public relations. A properly planned publicity campaign
initiated through social media channels might receive support from other organizations that are also
a part of the same group as LAW, and thus would keep attracting people to Lisbon.
SG10 (W1, W2, T2): The same publicity campaign mentioned in SG9 can be implemented to expedite
LAW’s entry to the international market. Especially a plan with a B2C focus would help LAW to gain
awareness on the market conditions.
TOWS matrix (Figure 4) analysis results led to the development of 10 different strategic goal plans for
LAW to implement in the future projects (Table 1). This analysis is extremely important for LAW to
build up on its deficiencies in business. By implementing these strategic plans stated above, LAW can
not only use its strengths as opportunities, but also can turn its weaknesses into advantages. Since
LAW is a non-profit, the SWOT analysis draws attention on making proper use of volunteers to
attract visitors, to improve the communication with art spaces, and to measure the impact of the
event. Moreover, using social media to strengthen the public relations side is highly important, since
it would enable LAW to communicate its advantageous position in tourism and art, and to build up
closer relationships with its visitors. This would in turn help LAW find more sponsors and increase the
visitor retention rate. Building up relations with visitors by sending them reminders and updating
them on the most current trends would help the art-lovers identify themselves better with the
annually held event of LAW, and create a positive word of mouth. A good publicity campaign would
also increase the overall awareness regarding the art market conditions, and catalyze LAW’s entry to
the international art market.
17
4. CONCLUSION
During this internship, I had the chance to have a close look at the Lisbon’s contemporary art scene,
from the point of view of a non-profit organization that has no competitors, and many advantages in
this market. However, the business model of LAW is not very developed since it only had a first
edition, and therefore there is a need for improvement in its marketing plan to have a better impact
in the future events. The marketing mix is a commonly used method in marketing that helps
organizations realize their state in the market, guiding them to develop strategic goals so that they
can improve their position and benefit from potential advantages or opportunities. The marketing
mix cycle includes taking the following factors into consideration while developing marketing
strategies: product, place, promotion and price. LAW also needs to account for these factors while
making plans for its future events.
Although it was an instructive and exciting experience, I had some difficulties due to being a part of
its 1st edition. The biggest challenge of this internship was that there was not enough data. The aim
of this internship was to determine the place of the organization in the market and also create a path
to help the organization to reach where they want to be by multiple information source features of
Marketing Intelligence. Since it was the 1st edition and there was a lack of data to analyze, I
preferred Marketing Mix and SWOT Analysis to determine the organization's position in the market
and its future goals. The strategic goals determined as a result of the SWOT will help the organization
strengthen its position in the market in accordance with its structure.
SWOT analysis is a similar technique that is used in marketing that helps businesses understand their
strengths (S), weaknesses (W), opportunities (O) and threats (T). It is an essential tool that uncovers
some important strategic paths for the businesses to follow. In this work, the emphasis was on the
TOWS technique, since LAW does not have a clear definition of its elements. The analysis results
show that LAW can adopt 10 different strategic goals. By doing that, the management team of the
LAW would focus on strengthening its public relations, while bonding with its customers and helping
them identify themselves better with the yearly event’s concept. More importantly, the adoption of
these strategic goals would also make LAW realize that it is a unique entity in the Lisbon art market,
and there are some absolute advantages like having no competitors at this point. Last but not least,
by maximizing the efficiency of volunteer work, LAW can minimize its operational costs while
reaching out to more potential sponsors.
Although this work presents a comprehensive SWOT analysis for Lisbon Art Weekend, there were
some limits for determining the factors that define LAW’s strengths, weaknesses, opportunities and
weaknesses. First of all, the brainstorming activity while creating the SWOT was only inclusive to the
management team. In LAW’s case, opinions of volunteers also matter since they would also bring
different points of view to the table. Furthermore, since the event was the first edition, the impact
that LAW creates is still unknown, and further observations are needed. Only after a second event a
comparison can be made in terms of impact and participation/retention rate. Lastly, the SWOT
analysis usually includes survey preparation or other qualitative data collection techniques, which
could not be implemented in this work, due to time limits and language restrictions.
In order to improve its position in the market, to form better connections and to realize its
opportunities LAW needs to implement the 10 different strategic goal outcomes of the SWOT
18
analysis. All of these marketing strategies are not costly to implement, since they involve the use of
volunteers and social media channels to reach out to more sponsors and find new revenue sources.
After implementing these strategies, LAW can conduct some future work on the outcomes of its new
marketing tactics. Future studies including further SWOT analyses would help LAW to have a clear
vision on its business trends and what to improve next.
For future works, to see the results and determine goals clearly, more data needs to be collected and
analyze by LAW team. This data might include Attender data, Attender preference data (based on the
events, openings that they prefer and so on), data from art spaces which includes attender/buyer
preferences, feedback form both art spaces and attenders. This data might collect during and at the
end of event via forums, online surveys. Collecting more data in every year can show the areas that
needs to be more focused and work on.
19
REFERENCES
AĞLARGÖZ, F., & ÖZTÜRK, S. A. (2015). Sanat ve Pazarlamanın “Sıra Dışı” Birlikteliği *. İleti-ş-Im, 23, 169–189. Retrieved from http://iletisimdergisi.gsu.edu.tr/tr/download/article-file/267692
Allen, J. (2010). Event planning : the ultimate guide to successful meetings, corporate events, fund-raising galas, conferences, conventions, incentives and other special events (2nd Editio). Retrieved from https://epdf.pub/event-planning-the-ultimate-guide-to-successful-meetings-corporate-events-fundra.html
American Marketing Association. (2020). What is Marketing? — The Definition of Marketing. Retrieved January 8, 2020, from https://www.ama.org/the-definition-of-marketing-what-is-marketing/
Art Marketing Trends. (2011). Art Marketing Trends 2010. Retrieved from https://imgpublic.artprice.com/pdf/trends2010_en.pdf
ArtSpace. (2013). Everything You Need to Know About Art Fairs (But Were Afraid to Ask) | Art for Sale | Artspace. Retrieved November 28, 2019, from https://www.artspace.com/magazine/art_101/art_market/a_beginners_guide_to_art_fairs1-5958
B2B vs B2C Event Marketing: Strategies and Tips. (2018). Retrieved November 25, 2019, from Audiencetools website: https://www.audiencetools.io/how-to-market-b2c-and-b2b-events/
Borden, N. H. (1964). The concept of the marketing mix. Journal of Advertising Research, 4(2), 2–7.
Business Dictionary. (2019). What is Event Marketing? Retrieved from http://www.businessdictionary.com/definition/event-marketing.html
Dolnicar, S., & Lazarevski, K. (2009). Marketing in non-profit organizations: An international perspective. International Marketing Review, 26(3), 275–291. https://doi.org/10.1108/02651330910960780
Glenn, B., Allen, J., O’Toole, W., Harris, R., & McDonnel, I. (2006). Events Management (2nd ed.). Great Britain: Elsevier.
Hannagan, T. (1992a). The Marketing Activity. In Marketing for the Non-profit Sector (pp. 17–32). https://doi.org/10.1007/978-1-349-11632-4_2
Hannagan, T. (1992b). The Marketing Mix. In Marketing for the Non-profit Sector (pp. 94–101). https://doi.org/10.1007/978-1-349-11632-4_7
Hannagan, T. (1992c). What Is Marketing? In Marketing for the Non-profit Sector (pp. 1–16). https://doi.org/10.1007/978-1-349-11632-4_1
Houben, G., Lenie, K., & Vanhoof, K. (1999). A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Decision Support Systems, 26(2), 125–135. https://doi.org/10.1016/s0167-9236(99)00024-x
Hoyle, L. H. (2002). Event Marketing: How to Successfully Promote Events, Festivals, Conventions, and Expositions (J. GOLDBLATT, Ed.). Retrieved from https://pdfs.semanticscholar.org/bfc0/83a85050c954d752ed993812fd638f5b93d8.pdf?_ga=2.1
20
48263927.1712523599.1574601677-2045530856.1574601677
Karakaya, Y. E., & Çoban, B. (2010). STRATEGIC MANAGEMENT AND SWOT ANALYSIS IN PLANNING THE FUTURE: CONCEPTUAL APPROACHS. In Journal of New World Sciences Academy. Retrieved from www.newwsa.com
KARATEPE, S. (2008). REPUTATION MANAGEMENT: CONFIDENCE CREATION IN PUBLIC RELATIONS Doç.Dr. Electronic Journal of Social Sciences [email protected] Kış-2008 C.7 S, 23, 77–97. Retrieved from www.esosder.org
Kennedy, L. (2015). How to avoid art fatigue. Retrieved December 3, 2019, from BBC Culture website: http://www.bbc.com/culture/story/20150317-how-to-avoid-art-fatigue
Kulshrestha, S., & Puri, P. (2017). Tows Analysis for Strategic Choice of Business Opportunity and Sustainable Growth of Small Businesses. Pacific Business Review International, 10(5), 144–152. Retrieved from http://www.pbr.co.in/2017/2017_month/Nov/15.pdf
Lee, H.-K. (2005). WHEN ARTS MET MARKETING Arts marketing theory embedded in Romanticism. International Journal of Cultural Policy, 11(3), 289–305. https://doi.org/10.1080/10286630500411309
Leigh, D. (2010). SWOT Analysis. Handbook of Improving Performance in the Workplace, 1–3, 115–140. https://doi.org/10.1002/9780470592663.ch24
Mapa das Artes. (2019). Mapa das Artes. Retrieved December 3, 2019, from http://mapadasartes.pt/desktop/
Merriam-Webster Dictionay. (2020). Strategy | Definition of Strategy by Merriam-Webster. Retrieved January 4, 2020, from https://www.merriam-webster.com/dictionary/strategy
Miller, K. L. (2010). The nonprofit marketing guide : high-impact, low-cost ways to build support for your good cause (1st ed.). San Francisco: Jossey-Bass.
Mun-Delsalle, Y.-J. (2016). The Art Fair Boom Is Forever Changing the Way the Art Market Does Business. Retrieved November 27, 2019, from Forbes website: https://www.forbes.com/sites/yjeanmundelsalle/2016/04/07/the-art-fair-boom-is-forever-changing-the-way-the-art-market-does-business/#4f643cc26c64
Pinto, D. C. (2018). Marketing Strategy. In Strategic Marketing.
Pope, J. A., Sterrett Isely, E., & Asamoa-Tutu, F. (2009). Developing a Marketing Strategy for Nonprofit Organizations: An Exploratory Study. Journal of Nonprofit & Public Sector Marketing, 21(2), 184–201. https://doi.org/10.1080/10495140802529532
Qudosi, S. (2013). Event Marketing From a Public Relations Perspective. Retrieved December 1, 2019, from https://blog.benchmarkemail.com/event-marketing-from-a-public-relations-perspective/
Ritchie, R. J. B., & Weinberg, C. B. (2000). A TYPOLOGY OF NONPROFIT COMPETITION : INSIGHTS FOR SOCIAL MARKETERS. Social Marketing Quarterly, 6(3), 63–71. https://doi.org/10.1080/15245004.2000.9961122
Schachter, K. (2018). Who Bought That Record-Breaking Jenny Saville? Kenny Schachter Eavesdropped at the Auctions—and Braved Frieze—to Bring You the Scoop. Retrieved November 28, 2019, from Art World website: https://news.artnet.com/art-world/jenny-saville-kenny-schachter-at-the-london-auctions-and-frieze-1367542
21
Singh, M. (2012). Marketing Mix of 4P’S for Competitive Advantage. IOSR Journal of Business and Management, 3(6), 40–45. https://doi.org/10.9790/487x-0364045
Steiss, A. W. (2003). Strategic Management for Public and Nonprofit Organizations (1st ed.; J. Rabin, Ed.). Newyork: Taylor & Francis Inc.
Umbigo Magazine Interview. (2019). Entrevista aos diretores do Lisbon Art Weekend. Retrieved January 10, 2020, from https://umbigomagazine.com/en/blog/2019/11/13/lisbon-art-weekend/
Varadarajan, R. (2010). Strategic marketing and marketing strategy: Domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38(2), 119–140. https://doi.org/10.1007/s11747-009-0176-7
Weihrich, H. (1982). The TOWS matrix—A tool for situational analysis. Long Range Planning, 15(2), 54–66. https://doi.org/https://doi.org/10.1016/0024-6301(82)90120-0
Winkleman, E. (2006). Fair Fatigue. Retrieved December 3, 2019, from https://www.mutualart.com/Article/Fair-Fatigue/BB8611FAF3DE9F00
Wood Schmader, S., & Jackson, R. (1999). Special Events: Inside & Out (2nd ed.). https://doi.org/10.1007/bf00302780