Marketing the Performing Arts: Strategies to address a difficult brand

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Running head: Marketing the Performing Arts 1 Marketing the Performing Arts: Strategies to address a dicult brand Alison Cox Western Kentuck !ni"ersit Abstract

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The performing arts sector can, at times, be difficult to predict in terms of how successful a certain production will be overall. In order to form a positive perception of a performing arts event, a strong marketing plan would need to be implemented. This project examines the ways to maximize the potential of the performing arts through the application of a successful marketing plan. Topics such as establishing an appropriate audience, social media & web marketing, and the marketing mix are discussed as to how they can contribute to a successful performing arts marketing campaign. In addition, a brief case study is presented on a real-world performing arts organization, The Kentucky Center for the Performing Arts, and how it reaches out to the mass market when promoting its brand and productions.

Transcript of Marketing the Performing Arts: Strategies to address a difficult brand

Running head: Marketing the Performing Arts 1Marketing the Performing Arts14

Marketing the Performing Arts: Strategies to address a difficult brandAlison CoxWestern Kentucky University

Abstract The performing arts sector can, at times, be difficult to predict in terms of how successful a certain production will be overall. In order to form a positive perception of a performing arts event, a strong marketing plan would need to be implemented. This paper will examine the ways to maximize the potential of the performing arts through the application of a successful marketing plan. Topics such as establishing an appropriate audience, social media & web marketing, and the marketing mix will be discussed as how they can contribute to a successful performing arts marketing campaign. In addition, a brief case study will be presented on a real-world performing arts organization, The Kentucky Center for the Performing Arts, and how it reaches out to the mass market when promoting its brand and productions. Keywords: performing arts marketing, non-profit organization marketing

Marketing the Performing ArtsAlison Cox

When marketing for any brand or organization, a strong presence is necessary to reach the widest market. Performing arts marketing, specifically, involves influencing the behavior of a market segment. In order to do this, the organization must get the audience to move beyond reviews and into the theatre through the use of advertising, promotions, and public relations strategies. Bringing an audience into a theatre can be a difficult and taxing process, but with an efficient and appealing marketing campaign can increase interest in the performing arts and bring in an enthusiastic audience.

The Role of the Marketing DirectorThe marketing director in a performing arts organization serves as a liaison between the marketing and creative departments. Their sole responsibilities include building an image for the arts organization, getting the best and most appropriately prepared bodies into seats, and bringing the most income possible for the smallest possible expense (Cox 1983). Regular interaction between the marketing director and the artistic director is crucial to a successful and efficient marketing campaign. A close working relationship between the two can allow for better insight into what the overall vision is and how it can be portrayed through a marketing campaign. When developing a marketing campaign for a performing arts production, the marketing director must follow a plan to identify the product and the likely market segments, motivate customers to make the purchase, and maintain and expend the customers commitment to their product (Cox 1983). Each of these steps is vital to not only expanding to a larger target market, but also maintaining the current audience and creating loyal and returning patrons. Long-range and short-range planning are both aspects that are considered by the marketing director when developing and implementing a marketing or branding campaign. For example, the number of events to be produced in a season, the balance of subject matter, and the type of audience that might be sought after are all long- and short-range plans that need to be considered. Also, packaging of ticket and subscription plans is a long-range plan that needs to be recognized by the marketing director in order to maximize ticket sales per performance and for an entire season. Examples of packaging plans could include a subscription plan, single-ticket sales, student and senior citizen discounts, and group sales (Cox 1983).

Establishing an AudienceThe performing arts audience is unique in that it can be divided and segmented in almost an infinite number of ways. This, however, can make it difficult for marketers to select a target market and promote their organization to that one specific segment. To simplify this segmentation tactic, the performing arts audience can initially be divided into two groups: the low involvement audience and the high-involvement audience. The low involvement audience consists of those patrons who only consider a small financial risk when purchasing tickets to a performance and bear an insignificant consequence for an unsatisfying experience. The high involvement audience, however, utilize higher levels of decision making and financial commitment, such as spending $200 on a ticket for a prestigious opera, as opposed to $20 on a small community theatre production of a popular musical. Considerable time is spent researching options prior to the purchase, with a high dependence on reviews, ratings, and word-of-mouth recommendations (Sayre 2008).Whether a performing arts organization is looking to implement a general branding campaign or promote a specific performance, a target audience must be identified. As stated above, an audience can be divided into two categories: high involvement and low involvement. However, within two categories are multiple subcategories that can better specify the audience markets of a performing arts organization. First, the loyalists are those patrons who attend performances regularly. These are usually patrons who purchase season subscriptions and attend nearly every performance. They serve as the primary marketing segment for every brand and genre.Next are the information seekers. The patrons in this subcategory are partial to a particular brand or genre, but are not completely loyal. This is a niche segment that is ideal for targeting genre specific marketing messages. The routine buyers dont necessarily attend every genre specific performance, but are likely to attend performances by a favorite artist. In this case, performer-based brand marketing would be the most efficient and effective in reaching this audience. Finally, the brand switchers are not loyal to one specific genre or performance; they attend whatever their mood dictates. This segment is the hardest to identify and target because genre and brand are insignificant factors in determining choices. In this case, price promotions would be the most motivational tactics (Sayre 2008). Applying the Four Ps of Marketing to the Performing ArtsWhen developing a general marketing plan for any organization, the foundation will most often be found in what are described as the four Ps of the marketing mix: product, price, promotion, and placement. When combined into one marketing campaign, the reach to current and potential audiences is radically increased, creating an overall successful promotional plan for the organization and any current productions. The first component, or P, of the marketing mix is the product. This may be the most important because without a product, there would nothing to promote. The product is simply what the business offers to the consumer in an exchange. In the case of the performing arts, the product could be a production, or any experience or event offered by the organization that brings in an audience. However, consumers dont necessarily buy a product; rather they are purchasing the perceived satisfaction that comes with the purchase of that product. For an arts marketer, this means taking a given product and then identifying what real or imagined needs it satisfies. The presentation of the product is structured to emphasize the real benefits for which the selected markets are willing to exchange. Packaging is a prominent way in which an arts organization can make their product most responsive to the market. The concept of packaging in performing arts marketing is the only way in which the product can be molded to match the real and understood needs of the segmented markets with putting constraint on the artistic vision of the organization (House 1983). Pricing is another important component of the marketing mix in which the goal is to maximize potential income while simultaneously stimulating sales and opening new markets. Pricing structures are generally recognized as capable of addressing many objectives, including generating a cash profit or maximizing profit, covering expenses, stimulating the marketing to make additional purchases, and in rare cases turning off a market. The most favorable pricing strategy for a market is always the low price. Low prices are often set when an organization would like to attract the greatest number of customers in a short period of time. This is also known as market stimulation (House 1983). In a performing arts environment, pricing discrimination is often common to accommodate to the diverse market. For example, there are typically discounted ticket prices for students, military personnel, and senior citizens. Also, there is often location-based pricing, meaning that prices can vary depending on where in the theatre the seats are located. Other pricing discrimination techniques could consist of timing; charging less for weekday matinees than for weekend evening performances, and offering different prices for different products being offered, such as charging more for well-known musicals than for dramas. When dealing with non-profit organizations in general, pricing strategies must be reflective of the realities, behavior, and perceptions of the marketplace in compliance with the objectives, realities, and true costs of the organizations (House 1983). The objective of promotion is to not only inform the public of a product, but also present it in such a way that it speaks directly to the markets wants and needs. In order for promotion to be successful, it must inform the selected markets of who is selling the product, what is being sold, when it is being sold, where it is being sold, and how it can be purchased. Promotion should also make the association between the desire for the product and the satisfaction it can provide. In order to execute a successful promotion, the organization must reach as much of the market as possible and surround them with enough information and stimuli to motivate a purchase decision (House 1983). The final component of the marketing mix is the placement of the product, which incorporates where and how the purchase can be made and where it will be consumed. It can be shown that the easier it is to buy and use a product, the more likely it is to be purchased. For example, if tickets for a performing arts production are easily accessible and readily available for purchase, more people will be willing to buy them. The primary objective of the performing arts marketer should be making sure tickets are within an arms reach of those wanting to make a purchase (House 1983). This can be done so with an efficient and sale-oriented box office. The box-office personnel are often seen as the salespeople of the theatre, therefore they must be competent and confident in dealing with ticket sales and customer inquiries.

Utilizing Social Media and Web-Based MarketingNo matter the organization, a strong social media presence is crucial to a successful marketing campaign. Due to the rapidly growing technological dependence in todays society, more and more consumers are turning to the internet and social media to gain information on products, services, and organizations. In the performing arts, social media can be a very effective addition to an already implemented marketing or branding campaign. As opposed to a traditional broadcast mechanism, social media allows for content to no longer be created and published exclusively by an organization. It is instead created, modified, and disseminated by all kinds of users in a participatory and collaborative fashion (Hausmann & Poellmann 2013). Social media profiles allow audiences to interact with the organization in a more immediate fashion, as opposed to contacting the organization directly.There are numerous social media platforms available to a performing arts organization. Collaborative platforms such as Wikipedia and Yelp allow for users to add, remove, and change information at their leisure. This is beneficial to an organization because it allows their target market to state their personal opinion on how they perceive the organization. In addition to collaborative social media sites, weblogs allow extensive interaction between the blogger and readers via a comments section. Posts on a weblog, or blog, present regular updates on which contributions are published in reverse chronological order. In addition to weblogs, microblogging has become increasingly popular in marketing campaigns. The most prominent microblogging platform, Twitter, is seen a hybrid of blogging, instant messaging, and status notification, like that of Facebook. In order to be successful on Twitter, however, an organization must gain a mass of followers, i.e. people who subscribe to the updates of the user. In order to gauge the success of the content, the number of favorites on a tweet or the sharing of tweets with ones followers, also known as retweeting, is examined and analyzed. Content communities are a useful way to display different types of media developed by an organization to a target audience. YouTube, Flickr, and Slideshare are content communities that focus on content and file sharing between users. YouTube, for example, allows for users to post original videos for anyone to view. Performing arts organizations could use these content communities to their advantage where they provide a relatively inexpensive possibility for visualizing otherwise intangible services such as a concert, dance production, or play. These platforms emotionally activate the user before actually using a cultural service and support their decision in favor of a real visit (Hausmann & Poellmann 2013). From a marketing standpoint, performing arts is considered a difficult brand, meaning it consists of constrained availability and uncertain outcomes. The gaps in time between performance offerings mean that there are limited opportunities to satisfy the consumer, making it difficult to establish salience for the performing arts brand. However, there are times where this can be beneficial to an organization. The scarcity factor, meaning the unique opportunity of the moment, can translate into a heightened sense of urgency and superior value (Johnson & Preece 2011). This can only be achieved, though, if the organization can maintain customer interest between performance opportunities. The most effective way of doing so is having a strong web-based presence in which consumers can still remain connected with the organization during year round. In addition to its constrained availability, the performing arts can struggle with predicting the outcomes of its performances. While it may seem as if a performance will receive a positive acceptance from an audience, it is often unpredictable how it will be perceived. Audience dissatisfaction can result from a lack of appreciation for that type or genre of performance. This could mean that after a single disappointment, a consumer may choose not to return at all. In order to minimize this risk of disappointment, audience members often times choose performance that they are more familiar with, almost guaranteeing satisfaction. In order to reduce any future disappointment, a performing arts organization should accurately represent the performance being offered, as opposed to trying to create hype through misleading promotion. A web presence can reinforce the components that have traditionally served to promote persistent presence such as logos, building appearance, critical reviews, and season descriptions (Johnson & Preece 2011). The internet serves as an interactive medium between an arts organization and its target audiences. It can also, however, serve as a communication source among audience members. It allows them to discuss their perceptions of the organization and its success in effectively and accurately promoting a production or just the brand in general. Online media has the potential to provide persistent presence and to facilitate the small world interaction that is necessary to maintain the connection between an organization and its patrons (Johnson and Preece 2011).

Case Study: The Kentucky Center for the Performing ArtsLocated in downtown Louisville, Kentucky, the Kentucky Center for the Performing Arts, also referred to as simply the Kentucky Center, is home to many of many of the citys major performing arts organizations. It presents the best in music, dance, theatre, and more to the city while remaining one of Kentuckys most popular performing arts venues. Housing the Louisville Orchestra, Kentucky Opera, Louisville Ballet, Stage One, and PNC Broadway Across America, the Kentucky Center promotes arts enrichment in the city of Louisville through its diverse repertoire. As its mission statement articulates, The mission of The Kentucky Center for the Performing Arts is to lead and enrich the artistic, educational and economic vitality of the region by providing unparalleled programming and cultural events (The Kentucky Center for the Performing Arts). Because of the diverse demographics in the city of Louisville, the Kentucky Center has year round productions and events to cater to each of their segmented markets. In order to reach out to the targeted markets, the Kentucky Center works to influence the behavior its audience through promotional and marketing techniques. Take, for example, one of the Kentucky Centers resident organizations, the Louisville Orchestra. The Orchestra is considered a cornerstone of the Louisville arts community. The popularity of classical music is gradually declining, but the Louisville Orchestra strives to bring a fresh perspective to the genre. By offering a wide variety of concert series such as traditional classical programs with world renowned guest artists, lighter classical and pops performances, and educational and family events (Louisville Orchestra), the Orchestra is able to reach all of its segmented markets and possibly even beyond that. A way for the Louisville Orchestra to reach out to its segmented target markets is to appeal to the emotions of the audience. For example, by featuring a star performer or well-known piece, the audience will be more emotionally inclined to attend that event. Also, promotional materials such as brochures and advertising spots should include messages that would be considered favorable towards the audience. They should provide clues as to what the audience should expect out of the performance, all while positioning it as distinctive from its competition (Sayre 2008). Finally, the Louisville Orchestra, and any professional orchestra must focus on what the audience wants. By loosening the definition of classical music and offering more visual stimulation, it is easier to draw in an audience that wouldnt typically be considered a target market segment, such as young adults. The PNC Broadway Across America is one of the most popular organizations within the Kentucky Center. Each year it offers a variety of highly successful Broadway performances. The 2014-2015 season offers productions of I Love Lucy: Live on Stage, Newsies, Once, Disneys The Lion King, and Pippin (Louisville Broadway). In order to promote these stage performances, the Kentucky Center must influence the behavior of the market segment to make a purchase decision. The most efficient way to persuade the audience is through promotional materials that display commanding artwork, such as logos which become the brand idea of the show. Radio and television advertisement spots are also ways to promote the quality of the production values of sets, costumes, and cast (Sayre 2008). Take, for example, the Kentucky Centers production of Disneys The Lion King that runs from March 9-23, 2015. The target audience of this production is predominantly families with younger children, but in reality it has proven to attract audiences of all ages. When developing a marketing plan to promote this production, there are certain aspects that must be considered. Sales packaging is a component that should be evaluated in order to bring in the highest possible income. The most efficient way to do this would be to offer special prices for children, students, senior citizens, and groups. Also, targeting any press announcements towards the target audience is a way to initially bring awareness to the production. An effective advertising schedule is one that is visible throughout the run of the production, most importantly including the pre-opening period. The audience should be aware of the production from its initial announcement to its final performance. Public relations and publicity is very important to the success of the Kentucky Center. Year-round the organization puts on educational events and programs that bring in potential donors and new patrons. For example, the Kentucky Center is home to nationally recognized programs such as Arts in Healing, School Programs, and the Governors School for the Arts which have in turn have served 25,000 patrons in the year 2012 alone (The Kentucky Center for the Performing Arts). Arts education has been shown to have a positive impact on the overall education of young people. The Kentucky Center reinforces that by integrating educational elements into its standard production schedule. This allows for more visibility, especially with young people, on how the Kentucky Center has a positive impact on the city of Louisville, and the Commonwealth of Kentucky as a whole. As this case study has shown, marketing the performing arts can be difficult when the reactions of the public to the brand are somewhat unpredictable. Also, the visibility of the performing arts is considerably low compared to other aspects of the entertainment industry. In order to promote and advertise individual performances and the organization as a whole, it is important to listen to the wants and need of the audience and market to those specifically. Also, developing a marketing plan that encompasses all segments of the target market can be the most efficient way, in terms of cost and time, to expand the audience and bring in new patrons. As a whole, the Kentucky Center does an exceptional job at accomplishing that and should serve as a model for the other performing arts organizations in the area.

Works CitedCox, P. (1983). Marketing the performing arts: A personal view. In J. V. Melillo (Ed.), Market the Arts (pp. 43-51). New York: Foundation for the Extension and Development of the American Professional Theatre.Hausmann, A., & Poellmann, L. (2013). Using social media for arts marketing: Theoretical analysis and empirical insights for performing arts organizations.International Review on Public and Nonprofit Marketing,10, 143-161.House, M. (1983). The marketing mix. In J. V. Melillo (Ed.),Market the Arts (pp. 65-75). New York: Foundation for the Extension and Development of the American Professional Theatre.Johnson, J. W., & Preece, S. B. (2011). Web strategies and the performing arts: A solution to difficult brands.International Journal of Arts Management,14, 19-31.Louisville Broadway: 2014-2015 Season. (n.d.). Retrieved December 5, 2014, from http://louisville.broadway.com/Sayre, S. (2008). Entertainment Marketing & Communication: Selling Branded Performance, People, and Places. Upper Saddle River, NJ: Pearson Education Inc.The Kentucky Center for the Performing Arts. (n.d.). Retrieved December 2, 2014, from http://www.kentuckycenter.orgThe Louisville Orchestra | American Orchestra. (n.d.). Retrieved December 5, 2014, from http://www.louisvilleorchestra.org/