Marketing Culture and the Arts, 4th Edition

François Colbert, C.M., M.B.A., M.Sc., is full professor of marketing at HEC Montréal, where he holds the Carmelle and Rémi Marcoux Chair in Arts Management and is responsible for the Master of Management in International Arts Management, and the Marketing and Management in the Arts, Cultural Industries and Media track in the PhD in administration. He is the Founding Editor of the International Journal of Arts Management.

Professor Colbert has been actively involved in the arts and cultural field for over 35 years. He has served on the board of directors of numerous cultural organizations, including the Canada Council for the Arts. He is the author of over 160 publications on arts management-related issues. In 2002 he was awarded the Order of Canada for his many achievements and for his unique contributions in developing the field of arts management. In 2005 he was named Fellow of the Royal Society of Canada and was appointed UNESCO Chair in Cultural Management in 2012.

Collaborators

Johanne Brunet, M.B.A., Ph.D. (Industrial and Business Studies), University of Warwick (UK), is Associate Professor in Marketing at HEC Montreal. She specializes in international marketing of cultural industries.

Philippe Ravanas, a native of France, is Chairperson of the Arts, Entertainment and Media Management Department at Columbia College Chicago.

Mariachiara Restuccia, M.Sc., is Ph.D. candidate (Marketing) at HEC Montréal, where she teaches marketing and arts management.

J. Dennis Rich, Ph.D., is AEMM Chair Emeritus / Performing Arts Faculty, Entertainment and Media Management Department at Columbia College Chicago. He is a consultant, researcher, and lecturer on the international circuit.

Yannik St.James, Ph.D. (Queens University, Canada), is Associate Professor of marketing at HEC Montréal. She specializes in consumer behavior and brand management.

“Marketing is evil!” How many times have you heard that from a colleague? How many times might you have said it yourself?

This point of view is understandable if one’s experience of marketing reflects only market-driven industries where the product is created solely in response to the demands of the market, where marketing professionals force changes to an established product in order to meet consumer desires or expectations, or where unscrupulous marketers misrepresent the product in order to make a quick sale. Culture, heritage, and the arts – the not-for-profit variety – is a product-driven industry. Our artists envision and create their work with little if any regard for how the market might embrace it; they create in response to their own passions and inspirations.

Successful marketing professionals in cultural enterprises recognize that their work is carried out within an industry that is “product driven but market sensitive and customer oriented.” Product driven: cultural marketers understand the creative product and know why it merits as large an audience as possible. Market sensitive but customer oriented: cultural marketers identify the appropriate target market segments for the work, then design and implement communications campaigns that grab attention, develop interest, and move the targets to take action. The best cultural marketers go even further; they facilitate appreciation for the creative work – not demystifying it but positioning it within the consumers’ interests, experiences and expectations – and they strive to build consumer trust and loyalty, which results in repeat business.

Developing, nurturing, and expanding loyal and active audiences for our arts, culture, and heritage centres is a formidable challenge. How is it done? Painstakingly, with a thorough understanding of marketing theories and practices, careful market research, and a strategic and comprehensive marketing plan. All of this will help us to achieve our goal of a theatre or exhibition space full of informed, engaged, and loyal patrons eager to experience all that our artists have to offer.

“Marketing is evil”? Soon, with the right principles and practices in place, you may be hearing, “Marketing is vital”!

François Colbert’s Marketing Culture and Arts is an important step forward in achieving that goal. This book explains and contextualizes complex and sophisticated marketing principles in a clear, straightforward manner using examples from the cultural sector; it offers readers – both first-year students and working professionals – the critical foundation upon which effective and efficient communications programs are built.

Dan J. Martin
Dean, College of Fine Arts
Director, Institute for the Management of Creative Enterprises
Carnegie Mellon University
Pittsburgh, Pennsylvania, United States

Chapter 1 - Cultural Enterprises and Marketing

Objectives    
Introduction  
1.1 Marketing  
     1.1.1 A Definition of Marketing  
     1.1.2 The Birth and Development of Marketing  
1.2 Culture and the Arts  
     1.2.1 The Position Held by Cultural Enterprises within Society 
     1.2.2 The Artist’s Role within the Cultural Enterprise  
     1.2.3 The Mandate of Cultural Enterprises in Terms of Product 
     1.2.4 Distinctions among Cultural Enterprises  
1.3 Marketing Culture and the Arts: Definitions  
1.4 The Marketing Model  
     1.4.1 The Traditional Marketing Model 
     1.4.2 The Marketing Model for Culture and the Arts  
     1.4.3 Marketing and Cultural Enterprises  
1.5 Components of the Marketing Model  
     1.5.1 The Market  
     1.5.2 The Environment  
     1.5.3 The Marketing Information System (MIS)  
     1.5.4 The Marketing Mix  
             Product  
             Price  
             Place  
             Communication
     1.5.5 Customer Service  
     1.5.6 Two Influential Elements  
             Time  
             Specificity of the Firm  
     1.5.7 The Company and Its Marketing Management  
     1.5.8 The Interdependence of the Elements  
1.6 Ethics in Marketing  
Summary  
Questions   
Notes   
For Further Reference

Chapter 2 - The Product

Objectives   
Introduction  
2.1 Product  
     2.1.1 Defining the Term “Product”  
     2.1.2 The Different Components of a Product  
     2.1.3 The Cultural Product and Its Specific Characteristics  
             Components of the Cultural Product  
             The Cultural Product: A Complex Product 
             The Cultural Product: A Specialized Purchase  
             The Cultural Product: Characteristics of a Service  
     2.1.4 Brand  
             The Characteristics of a Brand  
     2.1.5 Customer Service
2.2 Developing New Products for Arts and Culture (By Mariachiara Restuccia)
     2.2.1 The Innovativeness Spectrum in the Arts
     2.2.2 The Risk of New Products
     2.2.3 The NPD Process for Arts and Culture
             The NPD Process in Cultural Industries
             The NPD Process in the Artistic Sector
             The Importance of Product Life-Cycle Management
2.3 The Product Life Cycle  
     2.3.1 The Concept of a Life Cycle  
     2.3.2 The Product-Adoption Process  
     2.3.3 The Four Stages of a Life Cycle  
             Introduction  
             Growth  
             Maturity  
             Decline  
     2.3.4 The Limitations of the Life Cycle Concept  
2.4 Conclusion
Summary  
Questions   
Notes   
For Further Reference

Chapter 3 - The Market

Objectives    
Introduction  
3.1  The Market  
     3.1.1 The Consumer Market  
     3.1.2 The Partner Market  
             Distribution Intermediaries  
             Co-production  
             Distribution Partners  
             Media  
     3.1.3  The State as a Market  
     3.1.4 The Private-Sector Market  
3.2  Market Demand  
     3.2.1  Defining Demand  
     3.2.2 Market Share  
     3.2.3 The State of the Demand  
             Real Demand  
             Potential Demand  
             Market Demand in Different Situations 
     3.2.4 The Evolution of Demand in the Leisure Market  
             Underlying Trends and Current Challenges  
3.3 Market and Competition  
      3.3.1 A Broad View of Competition  
      3.3.2 The Interdependence of Markets and the Ripple Effect  
      3.3.3 The Effect of Globalization on Competition  
      3.3.4 Industry Fragmentation  
      3.3.5 The Principle of a Competitive Advantage  
3.4  The Market and Macro-environmental Variables  
      3.4.1 The Demographic Environment  
3.4.2 The Cultural Environment  
3.4.3 The Economic Environment  
3.4.4 The Political-Legal Environment  
3.4.5 The Technological Environment  
3.4.6 The International Market  
Summary  
Questions   
Notes   
For Further Reference

Chapter 4 - Consumer Behaviour (by Yannik St.James)

Objectives  
Introduction  
4.1 Background Influences
      4.1.2 Individual Factors
      4.1.2 Interpersonal Factors
      4.1.3 Situational Factors
4.2 Consumption Motives
4.3 Consumer Activities
      4.3.1 Decision-Making
      4.3.2 Consumption Experiences
      4.3.3 Post-consumption Activities
Summary
Questions   
Notes  
For Further Reference

Chapter 5 - The Private Sector Market

Objectives   
Introduction  
5.1 The Donor Market  
5.2 History of Philanthropic Activity in the United States  
5.3 Sponsorship  
      5.3.1 Defining Sponsorship  
      5.3.2 The Importance of the Sponsorship Market  
      5.3.3 The Decision-Makers  
      5.3.4 Benefits Sought by Companies  
      5.3.5 Sponsorship and the Consumer 
      5.3.6 How Sponsorship Is Measured  
      5.3.7 Selection Criteria  
      5.3.8 Successful Sponsorship and Cause-Related Marketing Applications  
      5.3.9 Negotiating the Sponsorship Agreement  
      5.3.10 During and after the Sponsorship  
      5.3.11 Pitfalls and Dangers of Sponsorships from the Perspective of the Arts Organization  
Summary  
Questions   
Notes  
For Further Reference

Chapter 6 - Segmentation and Positioning

Objectives    
Introduction 
6.1 Definition of Segmentation  
6.2 The Functions of Segmentation  
6.3 Market Studies and Understanding Segmentation
     6.3.1 Determinants of Market Segmentation
             The Purchaser/Non-purchaser Dichotomy 
             Frequency or Rate of Consumption
             Degree of Product or Brand Loyalty 
             The Consumer’s Level of Satisfaction  
             The Preferred Brand or Type of Product
     6.3.2 Segment Description  
             Geographic Descriptors  
             Sociodemographic Descriptors  
             Psychographic Descriptors  
             Descriptors Based on Benefits    
6.4 Segmentation Techniques  
     6.4.1 A Priori Segmentation  
     6.4.2 Cluster-Based Segmentation    
6.5 Positioning in Marketing  
     6.5.1 Type of Positioning
             Concentration Strategy
             Diversification Strategy  
             Competitive Positioning
     6.5.2 Product, Market, Competitive Advantage
     6.5.3 Preferences, Perception, Ideal Point
Summary  
Questions   
Notes  
For Further Reference