ffirs.qxd 10/6/06 9:13 AM Page i ARTS MARKETING INSIGHTS ffirs.qxd 10/6/06 9:13 AM Page ii ffirs.qxd 10/6/06 9:13 AM Page iii ARTS MARKETING INSIGHTS The Dynamics of Building and Retaining Performing Arts Audiences Joanne Scheff Bernstein Foreword by Philip Kotler John Wiley & Sons, Inc. ffirs.qxd 10/6/06 9:13 AM Page iv Copyright © 2007 by Joanne Scheff Bernstein. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741 www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748- 6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Bernstein, Joanne Scheff, date. Arts marketing insights : the dynamics of building and retaining performing arts audiences/Joanne Scheff Bernstein ; foreword by Philip Kotler. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-7879-7844-0 ISBN-10: 0-7879-7844-2 1. Performing arts—Marketing. I. Title. PN1590.M227B47 2007 791.069’8—dc22 2006029093 Printed in the United States of America FIRSTEDITION HB Printing 10 9 8 7 6 5 4 3 2 1 ftoc.qxd 10/5/06 7:44 PM Page v Contents Foreword vii Philip Kotler Introduction xi The Author xix Prologue 1 The State of Performing Arts Attendance and the State of Marketing 5 Exploring Characteristics of Current and Potential Performing Arts Audiences 25 Understanding the Consumer Mind-Set 49 Planning Strategy and Applying the Strategic Marketing Process 65 Using Strategic Marketing to Define, Deliver, and Communicate Value 89 v ftoc.qxd 10/5/06 7:44 PM Page vi vi Contents Delivering Value Through Pricing Strategies 117 Conducting and Using Marketing Research 143 Leveraging the Internet and E-Mail Marketing 163 Identifying and Capitalizing on Brand Identity 193 Building Loyalty: Subscriptions and Beyond 209 Valuing the Single Ticket Buyer 235 Focusing on the Customer Experience and Delivering Great Customer Service 249 Epilogue 263 Notes 267 Index 281 flast.qxd 10/5/06 7:44 PM Page vii Foreword The arts are essential to the health of a nation. Just as food, clothing, and housing are essential to physical well-being, art is essential to the social and spiritual nourishing of our lives. Life would be dreary in a society without music, song, dance, film, books, and the visual arts. Joanne and I published our book Standing Room Only in 1997, more than nine years ago. In these times of accelerating change, nine years is like twenty years in terms of sound prescriptions for success. Today discretionary money is scarcer, time budgets are strained, and competitive activities have proliferated, with the result that filling the seats for performances is getting increasingly difficult. Furthermore, in the past several years there have been significant changes in peo- ple’s lifestyles, increased spontaneity in choosing leisure time pursuits, and new expectations in terms of excellent and responsive customer service. Contrary to many people’s belief that interest in the arts is wan- ing, there is and, I imagine, always will be a significant proportion of the population that truly enjoys attending arts events. But many of the audience development strategies that worked in the past are no longer as viable as they once were. Furthermore, marketers’ insensi- tivity to the ways customers prefer to do business and the types of mes- sages that will serve to attract audience members is actually creating barriers to attendance. At best many marketers are perpetually work- ing harder to retain their audiences and attract new ones. At the worst vii flast.qxd 10/5/06 7:44 PM Page viii viii Foreword many symphonies, theaters, opera companies, and dance companies are facing extreme financial difficulties. Marketing is not the art of finding clever ways to fill your seats. Marketing is the art of creating genuine customer value. It is the art of helping your customers become better off. The marketer’s watch- words are quality, service, and value. A mark of sound management in any organization is to review the new market conditions, the competition (both inside and outside the arts world), and the mind-set of consumers, and then revise old as- sumptions and launch new marketing initiatives for breathing new life into the performing arts business. To assist your thinking, Joanne Scheff Bernstein, one of the most effective consultants and educators on the performing arts, offers you a guide to the new market factors and the new strategies, based on sound marketing principles, that will improve your audience devel- opment results now and into the future. She offers not only a review of long-standing best practices but also a multitude of viable alternatives to those practices that no longer attract and retain audiences as they formerly did. She helps you to understand the customer mind-set and to leverage the many new opportunities created by the digital revolu- tion and its manifestations, especially Web-marketing and e-mail. I view this new book, Arts Marketing Insights,as the performing arts bible for the times. I encourage every arts manager and marketer, student and teacher of arts management, and board member of an arts organization to read this book and discuss every chapter with their peers. The dialogue alone will spark new ideas in your arts organiza- tion for substantially increasing attendance and funding and for cre- ating better satisfied customers. Philip Kotler Kellogg School of Management Northwestern University flast.qxd 10/5/06 7:44 PM Page ix This book is dedicated with boundless love to my wonderful husband, Bob, who shares my love of the arts, and to my darling grandchildren, Cecilia, Daniel, Ryan, and Harper, who have just begun to experience the delights and inspiration the arts will offer them throughout their lives.
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