Fundamentals of Business Session III

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Fundamentals of BusinessSession III

• September 17, 2003
• Presented by
• Diane Mielnikowski
• dmielnikowski_at_msn.com

Sponsored by
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What is marketing?

• Marketing is the process by which you come to
  understand the relationship between your product
  and your customer.
• Source http//www.artsmarketing.org

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What is marketing?

• Starts with the recognition of customer needs
• Connecting what you have to offer with people who
  want/need/value your offering
• Focus is on building long term relationships
• The link between your organization and the
  marketplace

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Take Home Assignment

• Check out the arts marketing site
• www.artsmarketing.org
• Go to Marketing Resources

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Where do you begin?

• With a clear understanding of
• Who you are and what you have to offer
• Who your customers are and what they need, want,
  value

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Ingredients for success

• 1. Clarify Vision/Mission
• What is it that you want to communicate?
• 2. Identify Target Market/Audience
• Who do you want to reach?
• 3. Specify Marketing Goals
• What results do you want to end up
  with?
• 4. Prioritize Ways to Implement Goals and Set
  Budget
• How will you get the word out and
  what will it cost?
• 5. Create Action Plan to Achieve your Goals
  How to accomplish goals?
  And who? And when?

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Vision

• Clarify Your Vision/Mission
• "Vision is a love affair with an idea."
• Source The Leaders Voice, Clarke and Crossland

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Mission

• Clarify Your Vision/Mission
• A true mission is a clear and compelling goal
  that focuses people's efforts. It is tangible,
  specific, crisp, clear and engaging. It reaches
  out and grabs people in the gut.

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Mission

• Clarify Your Vision/Mission
• Passion that drives the artistic product
• Why we exist
• Purpose and values
• Includes your key constituencies

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Examples of mission statements
"This nation should dedicate itself to achieving
the goal, before this decade is out, of landing a
man on the moon and returning him safely to
Earth."
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Examples of mission statements
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Examples of mission statements
About Face Theatre is committed to the creation
of performances that examine and participate in
the development of gay, lesbian, and bisexual
communities. Since our founding in 1995, we have
made a strong commitment to artistic innovation
and excellence within the various and emergent
modes of gay and lesbian theater, working to
challenge our artists' and audience's intellects,
imaginations, self-conceptions, moral
expectations, and ideas about gender and
sexuality in contemporary and historical
contexts. About Face has three programming
arms its award-winning Mainstage Season, its
innovative New Works Program, under the direction
of Resident Artist Jim Grimsley, through About
Face's participation in the National Theatre
Artist Residency Program of Theatre
Communications Group, and our nationally
recognized Education Programs, including the
celebrated About Face Youth Theatre and
Educational Outreach tour that collectively reach
over 10,000 Illinois students and teachers each
year. About Face has emerged as one of
Chicago's most respected theatres, and is quickly
emerging as a national center for the development
of gay and lesbian theatre.
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Examples of mission statements

• The mission of Bella Voce is to entertain,
  inspire, and educate through the performance of
  choral chamber music. We are committed to giving
  historically informed, professionally polished
  performances in original languages, and to
  keeping the art of polyphonic, a cappella singing
  alive and flourishing. Bella Voce places a
  special emphasis on bringing little-known pieces
  and neglected composers to our audiences. Our
  wide-ranging repertoire includes a cappella
  literature of the mid- and late-twentieth
  century, works commissioned from American
  composers, and sacred music of the Renaissance
  and Baroque eras.

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Examples of mission statements
Zephyr is committed to making dance accessible to
diverse audiences, and to the advancement of
women and girls in pursuit of creative endeavors.
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Examples of mission statements

• The mission of Brookfield Zoo is to help people
  develop a sustainable and harmonious relationship
  with nature.
• www.brookfieldzoo.org

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Test of a good mission statement
Can everyone on your board and staff articulate
the organizations mission and its activities?
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Test of a good mission statement
A few last examples . . . The mission of the
Joel Hall Dance Center is to use the arts to
enrich the lives of its community members through
dance education and performance. It reaches out
to the community, targeting those who would not
otherwise be exposed to the arts for classes,
educational outreach programs and local,
national, and international performances
http//www.joelhall.org/jhdc.php Black
Storytellings mission is to maintain the art of
storytelling as a primary source for positive
instruction and reinforcement of the rich beauty
embodied in the telling of "the story"!
http//www.blackstorytellers.com/
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Take home assignment

• With your board, artistic director, executive
  director, and company, put your mission statement
  to the test. Does it meet the following
  criteria?
• In just a few sentences, does your mission
  statement communicate the essence of your company
  to your stakeholders and to the public?
• It is the description of your companys reason
  for existence?
• Does it define the direction in which the
  organization is heading?

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Demographic/ economic environment
Technical/ physical environment
Marketing Intermediaries
Suppliers
Publics
Competitors
Political/ legal environment
Social/ cultural environment
From Marketing Management by Philip Kotler
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The Marketing Planning Process

• Establishing Objectives
• Financials, forecast, budgets
• Selecting the Target Market
• Customer needs, market size, growth profile
• Marketing Mix
• Product, place, price, promotion, positioning
• Implementation Control
• Measure Results
• Market research

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The Marketing Planning Process

• Establishing Marketing Objectives
• Financials, forecast, budgets
• Selecting the Target Market
• Customer needs, market size, growth profile
• Marketing Mix
• Product, place, price, promotion, positioning
• Implementation Control
• Measure Results
• Market research

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The Marketing Planning Process

• A successful plan must be
• Simple, easy to understand and communicate
• Clear, precise and detailed
• Practical, realistic in its application and goal
  attainment
• Flexible, adjusting to changing conditions
• Complete, covering all significant marketing
  factors
• Workable, identifying responsibilities

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Marketing Plan Components

• Objectives
• Strategies
• Tactics
• Budget
• Timeline

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Marketing Objectives

• Reasonable based on the realities of the market
  and capabilities of the firm
• Obtainable within reach of the company given
  its resources and personnel
• Measurable yielding results that can be
  measured against projections or some accepted
  company yardstick

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Marketing Strategies Tactics

• Strategies
• How you plan to accomplish your objectives
• Determine the overall design or program for
  achieving goals
• Tactics
• The stuff you will do - posters, press
  releases, newspaper ads, etc.

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Marketing Mix

• Product
• Place
• Price
• Promotion
• People
• Promotion

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• Marketing Strategy
• Defining who you are Positioning

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Marketing StrategyDefining who you are -
Positioning

• Understanding where a brand sits in the mind of
  the consumer.
• It is the relationship which the consumer forms
  with the product, even though it may be
  functionally based, will include powerful
  emotional ties together these help to transform
  a product into a brand.

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Marketing StrategyDefining who you are -
Positioning

• Jack Trout's "five basic principles of the mind,"
  from The New Positioning
• Minds are limited. Even a little information is
  too much.
• Minds hate confusion. The only solution to
  over-communication is over-simplification.
• Minds are insecure. They're emotional, not
  rational.
• Minds don't change. A made-up mind is a closed
  mind.
• Minds lose focus. Don't expect one to understand
  why your department store also sells insurance.

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Marketing StrategyDefining who you are -
Positioning

• The key to positioning, Trout says, is
• owning one word in your
• customer's mind.

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Marketing StrategyDefining who you are -
Positioning

• For example
• Fedex owns
• the "overnight," position
• Crest owns
• the "cavities" position
• Volvo owns
• the "safety" position
• even if you never buy these products.

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Marketing StrategyDefining who you are -
Positioning

• Distinctive positioning
• Target audience
• Frame of reference/competitive set
• Point of difference/whats unique about you?

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Marketing StrategyDefining who you are -
Positioning
What is The product? Benefits? Reasons to
believe? Personality?
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Marketing StrategyDefining who you are -
Positioning
What is The product? Benefits? Reasons to
believe? Personality?
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Marketing StrategyDefining who you are -
Positioning

• Distinctive positioning
• Target audience
• Frame of reference/competitive set
• Point of difference/whats unique about you?

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Identify Your Target Market

• Who is your audience?
• Who do you want to reach?
• Are they the same as your customer?

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Identify Your Target Market

• Who is my audience/are my customers?
• How many live in a market?
• Where can I find them?

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Target market

• How can you define your audience/target market?
• Demographics (age, income, gender, geography)
• Life-stage (young, old, cohort veteran, boomer,
  gen x, gen y)
• Wants, needs, desires, attitudes, interests
  (dance enthusiasts)
• Barriers, concerns, pressures

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Target market

• How could your offering benefit them? Solve a
  problem?
• What is your image with them?
• How do you reach them?
• How can you segment?

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In Class Exercise

• Take 5 minutes to describe your audience in
  writing
• Discuss in class

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Marketing StrategyDefining who you are -
Positioning

• Distinctive positioning
• Target audience
• Frame of reference/competitive set
• Point of difference/whats unique about you?

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Competition

• Competition compare to other groups or
  activities

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Competition

• Who are your competitors?
• What are their strengths? Weaknesses?
• How do you compare? Contrast?
• Have you considered other kinds of competition?

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Other kinds of competition

• Sports events
• TV
• Restaurants
• Leisure Activities

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In Class Exercise

• Take 5 minutes and define your competition

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Marketing StrategyDefining who you are -
Positioning

• Distinctive positioning
• Target audience
• Frame of reference/competitive set
• Point of difference/whats unique about you?

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In Class Exercise

• Take 5 minutes and define what is Unique about
  you.
• Remember, positioning is the essence of
  sacrifice. Select only one unique point of
  difference relative to your competition, that is
  relevant to your target audience.

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Marketing StrategyDefining who you are -
Positioning

• Distinctive positioning
• Target audience
• Frame of reference/competitive set
• Point of difference/whats unique about you?
• PUTTING IT ALL TOGETHER

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Marketing StrategyDefining who you are -
Positioning

• To ________ (target audience) xyz (your company)
  is the ___________ (frame of reference) that
  ________ (point of difference/what is
  compelling/unique about you?)
• To music enthusiasts, Bella Voce is the premier
  choral chamber group that provides a wide-ranging
  repertoire including a cappella literature of the
  mid- and late-twentieth century, works
  commissioned from American composers, and sacred
  music of the Renaissance and Baroque eras.

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Breakout

• 20 minutes
• Partner with someone in the workshop
• Each develop your groups positioning
• 15 minutes
• Present and discuss

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Marketing StrategyDefining who you are -
PositioningTake home assignment

• Discuss and test your positioning with your
  Board, Artistic Director, and Executive Director

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Marketing StrategyDefining who you are -
PositioningTake home assignment

• To do this, everyone must understand
• Your offering
• Its benefit(s)
• The benefit(s) should be unique to the brand and
  will distinguish it from its competitors. It
  will have both functional and emotional values.
• Reasons to believe
• The reasons why the consumer should believe that
  the brand can deliver the benefit.
• Brand personality
• The personality of the brand is shaped largely by
  its advertising. It should permeate all forms of
  brand communication in a consistent manner no
  part of a brands communication should be out of
  character.

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Take home assignment Compare
your distinctive positioning with positioning of
competition.
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• Branding

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Strong brands

• Brand is the relationship you have with your
  customers, and
• Its the relationship your audience has with
  your organization, and your productions
• Emerges from the experience they have

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Importance of Brand

• Makes you unique and different
• Represents a trusted promise, encapsulates a big
  idea
• Distinguishes your organization from its
  competitors in the eyes of the customers.
• Repetition implants the purchase idea in the
  unconscious mind where purchase decisions are
  made.

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Strong Brands

• Are unique and visible. They catch the eye and
  stays in the customer's memory.
• Can be emotional or image-driven (Club Med
  transports me to a fantasy place) or factual
  (Kraft Macaroni Cheese is the cheesiest)
• Source www.artsmarketing.org

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Strong brands
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Example of arts brands
Joel HallDancers Center
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Developing Strong Brands

• Consistency in communication
• Positive experience
• Relevant to your audience
• Delight your customer!

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• The Attendance Equation

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The attendance equation

• Benefits of the arts experience
• ( or ) the costs of the experience
• (including ticket price, parking, time spent,
  effort, babysitter, etc.)

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The Experience Economy

• Starbucks enjoys profit and growth from their
  mastery of the experience economy
• Cost of coffee bean when harvested 0.50/lb.
• Value realized by Starbucks from selling cup of
  coffee 230/lb.

AN INCREASE OF VALUE OF 46,000.
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The Experience Economy

• Understanding your audience
• Your audience as customer
• Understanding the value that you offer
• Consistently delivering on that value

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Segmenting your audience

• Sub-segments by attendance
• One time
• Multiple/repeat
• Subscribers/members
• Groups

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Learning more about attendees

• Use surveys, questionnaires
• Report on subscribers single sales
  patterns
• Build a customer database
• Talk with audience members
• Conduct focus group
• Observations!

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Other ways to segment

• Attendees (one-time, multiple, subscribers)
• Arts usage (heavy, medium, light users)
• Age (generational marketing)
• Ethnicity
• Affinity

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Building audience

• Retention and renewal
• New single and group sales
• New services or products

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Key concepts in retention

• Audience knowledge - info from sales, surveys,
  class registration
• Recognition
• Belonging, sense of ownership
• Consistency
• Communication - curtain speech, mailing, telephone

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• The Financial Link

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• Specify your Marketing Goals
• What do you want to end up with?

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End results

• What will success look like? (define it)
• Why do you want this? (reality check goals)
• How will you know when youve succeeded? (define
  measurable results)

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Examples of marketing goals

• Increase single ticket sales by ___
• Draw 50 people from Carol Stream area
• Book 3 additional contracted performances
• next season
• Update logo

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Turning marketing goals into Action Items

• Bus seniors to one concert
• Give a preview talk at the library
• Use paid ads in the newspaper

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Prioritize, Set Budget, Implement

• Prioritize Ways to Implement Goals and Set Budget
• How will you get the word out?
• What will it cost?

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Getting the word out

• Whats the best way to reach audience?
• Can we afford this?
• What can and should I pay for?
• What can and should I find pro bono?
• Do our goals require additional staff?

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What will it cost?

• How much time?
• How many people?
• How much money?
• How much of (what) other resources?

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Go where your target is

• not just where other artists are.
• Join local business organizations, womens groups
  (barter)

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Reach your targetaudience with your message

• Take advantage of free publicity
• Who are your targets?
• What is your story?
• How can I get the word out?

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Free publicity opportunities

• Press Releases to Newspapers and Magazines
• Usually need to submit 2 - 4 weeks prior to
  event
• Use specific format
• Send information to local arts/entertainment
  editor
• Calendar Listings to Newspapers and Magazines
• Usually need to submit 2 - 8 weeks prior to
  event
• Send information to attention of the calendar
  editor

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Also free

• Public Service Announcements (PSAs)
• to Radio Stations Cable/Community Access TV
• Check with individual stations for deadlines,
  usually at least 4 weeks prior to event
• Send to Community Relations Director
• Write copy as you want it read include
  pronunciations

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More free

• Cultivate Feature Articles w/ Newspapers
  Magazines
• Write press release 6-8 weeks prior to event
• Call arts/entertainment editor pitch story
• Arrange interviews, as needed
• Photo Opportunities w/ Newspapers Magazines
• Call editor 4-6 weeks prior to event
  request/schedule
• Meet photographer on-site

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Still more free

• Internet Listings
• Growing number of websites w/ cultural calendars
• Listings are almost always free of charge
• Illinois Tourism site is an excellent resource
• Community Newsletters
• Business employee newsletters
• School publications
• Church bulletins

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Evaluating budget levels

• Budget is too high if you spend more than you
  make in return.
• Budget may be too low if
• not spending 15-25 of revenues on marketing
• not spending 61 to acquire new audience as to
  keep old ones
• Expect the unexpected

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Creating an Action Plan

• How to accomplish goals?
• And who?
• And when?

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Tests of a good action plan

• Highly detailed
• Agreed upon by all interested and responsible
  parties
• Measurable results
• Who
• By When!
• Accountability

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Action plan
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Ingredients for success

• 1. Clarify Vision/Mission
• What is it that you want to communicate?
• 2. Identify Target Market/Audience
• Who do you want to reach?
• 3. Specify Marketing Goals
• What results do you want to end up with?
• 4. Prioritize Ways to Implement Goals and Set
  Budget
• How will you get the word out and what will
  it cost?
• 5. Create Action Plan to Achieve your Goals
  How to accomplish goals?
  And who? And when?

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Contacts

• Arts Business Council of Chicago
• info_at_artsbiz-chicago.org
• Websites
• www.artsmarketing.org
• www.artsbiz-chicago.org

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Attracting your Audience MARKETING 101

• Illinois Arts Alliance Conference
• September 17, 2003
• Presented by
• Diane Mielnikowski
• dmielnikowski_at_msn.com