Strategic Marketing in Performing Arts

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Questions and Answers

What factor related to Perlman contributes to audience attendance?

  • The venue's historical significance
  • The cost of the tickets
  • The duration of the performances
  • Perlman's name as an enticement (correct)

What does the core product choice of a performance primarily relate to?

  • Artistic director's vision (correct)
  • Audience demographic analysis
  • Publicity and marketing strategies
  • Financial sponsorships

Which of the following statements best describes the programming selection process?

  • It focuses exclusively on increasing ticket sales.
  • It involves collaboration between the artistic and managing directors. (correct)
  • It is driven by financial gain over artistic value.
  • It solely reflects the community's artistic vision.

What dual aspect is important in designing a season for an arts organization?

<p>Artistic exploration and audience satisfaction (D)</p> Signup and view all the answers

How does the nature of entertainment differ from art according to the content?

<p>Entertainment prioritizes customer satisfaction as its core goal. (B)</p> Signup and view all the answers

What challenge does the artistic director face in programming?

<p>Maintaining a balance between artistic integrity and audience expectations (B)</p> Signup and view all the answers

Why might some patrons choose to attend performances at Ravinia?

<p>The unique ambience of summer picnicking (A)</p> Signup and view all the answers

Which best describes a characteristic of art based on the content provided?

<p>Art is meant to challenge and provoke thought. (A)</p> Signup and view all the answers

What marketing strategy did Piccolo Teatro di Milano implement to enhance audience development?

<p>A web-based marketing plan with an interactive website (C)</p> Signup and view all the answers

What unique feature did Piccolo Teatro introduce in 2009?

<p>The first theater web.tv in Italy (D)</p> Signup and view all the answers

Which of the following is NOT part of Piccolo Teatro's web.tv offerings?

<p>Live performance tickets sales (D)</p> Signup and view all the answers

How does Piccolo Teatro's web.tv contribute to the theater's mission?

<p>By building accessibility and promoting interest (D)</p> Signup and view all the answers

What is emphasized about the nature of services provided by performing arts organizations?

<p>Services are intangible and do not result in ownership (B)</p> Signup and view all the answers

What does the web-based marketing plan include for Piccolo Teatro?

<p>An interactive website and multimedia archives (A)</p> Signup and view all the answers

What auxiliary benefit does Piccolo Teatro's web.tv provide beyond marketing?

<p>Information and education for various publics (A)</p> Signup and view all the answers

Which audience is NOT specifically mentioned as a target for Piccolo Teatro's web.tv content?

<p>Local government officials (C)</p> Signup and view all the answers

What strategy did Piccolo adopt to respond to the economic crisis?

<p>Focusing on flexible season ticket options (C)</p> Signup and view all the answers

What type of system did Piccolo introduce to enhance customer interaction?

<p>Customer relationship management (CRM) system (C)</p> Signup and view all the answers

How many tickets did Piccolo sell in the 2012-2013 season?

<p>288,000 (C)</p> Signup and view all the answers

What proportion of the sold tickets came from groups and students?

<p>Around half (C)</p> Signup and view all the answers

Which of the following educational activities is included in Piccolo's offerings for students?

<p>Theater discipline workshops (A)</p> Signup and view all the answers

What was the significance of the 22,000 season tickets sold in Piccolo's history?

<p>It represented the highest number of season tickets ever sold. (D)</p> Signup and view all the answers

What variety of performances did Piccolo stage in 2012?

<p>Classical and contemporary drama, dance, music, and opera (D)</p> Signup and view all the answers

What is the primary challenge during the introduction stage of the product life cycle?

<p>To build awareness of the organization and its product offerings (C)</p> Signup and view all the answers

What strategy is often emphasized during the growth stage of the product life cycle?

<p>Developing patron loyalty and enhancing product features (C)</p> Signup and view all the answers

What aspect of technology did Piccolo focus on enhancing?

<p>Web system development (A)</p> Signup and view all the answers

Which factor is NOT mentioned as an ongoing change affecting marketing and positioning strategies?

<p>Stable economic conditions (D)</p> Signup and view all the answers

What might require an organization to adjust its marketing strategies?

<p>A major internal change or life cycle stage shift (B)</p> Signup and view all the answers

What is a common promotional approach for new organizations in the introduction stage?

<p>Public relations and low-cost promotions (D)</p> Signup and view all the answers

Which life cycle stage comes immediately after the introduction stage?

<p>Growth (C)</p> Signup and view all the answers

What role does customer service play during the growth stage of an organization?

<p>It becomes a greater focus to foster loyalty. (A)</p> Signup and view all the answers

In which situation might an organization undergo a change in marketing strategy?

<p>When the audience shows decreased interest in the product (A)</p> Signup and view all the answers

What has caused many orchestra managers to reevaluate their organizations’ roles?

<p>Declines in full-season subscriptions (A)</p> Signup and view all the answers

What alternative strategies have some organizations implemented to maintain audience size?

<p>Mini-plans and single ticket sales (D)</p> Signup and view all the answers

According to the content, which approach is most likely to help arts organizations avoid decline?

<p>Innovatively attracting new audiences (A)</p> Signup and view all the answers

What is indicated as a pervasive issue in the performing arts industry?

<p>Erosion of full-season subscriptions (C)</p> Signup and view all the answers

What was the purpose of the PiccoloCard loyalty card?

<p>To accumulate points for future purchases and provide discounts (D)</p> Signup and view all the answers

What mindset is suggested for arts managers to adapt effectively to changes?

<p>Imagining broad and innovative changes (C)</p> Signup and view all the answers

How many PiccoloCard holders were there by July 2012?

<p>50,000 holders (C)</p> Signup and view all the answers

What does the content suggest regarding the artistic integrity of organizations facing decline?

<p>Artistic integrity can be maintained amidst changes (B)</p> Signup and view all the answers

What impact did moving 4,000 ticket sales from the Community site to the PiccoloCard site have?

<p>Increased revenue due to full price ticket sales (B)</p> Signup and view all the answers

What often leads to a 'death knell' for an arts organization?

<p>Inability to adapt to changes (A)</p> Signup and view all the answers

By how much did the average price of tickets increase from 2008 to 2011?

<p>24 percent (C)</p> Signup and view all the answers

What potential benefit can arise from considering how artistic integrity relates to changes?

<p>Avoidance of organizational decline (C)</p> Signup and view all the answers

What was the change in total online sales from 2008 to 2011?

<p>Increased by 47.4 percent (B)</p> Signup and view all the answers

What was the role of the PiccoloCard site in relation to the Community channel?

<p>It was developed to complement the Community channel (B)</p> Signup and view all the answers

What type of tickets primarily moved from the Community site to the PiccoloCard site?

<p>Discounted tickets (A)</p> Signup and view all the answers

What was required from purchasers to use the PiccoloCard site?

<p>Free registration (A)</p> Signup and view all the answers

Flashcards

Performance Components

A combination of factors that influence a customer's decision to attend a performance, such as the performer's name, musical selections, orchestra quality, overall ambiance, and more.

Artistic Director's Role

The artistic director's primary responsibility is to create a program that aligns with the organization's mission, artistic vision, and audience preferences.

Programming Challenge

The process of developing a series of performances that balances artistic merit with audience satisfaction, taking into account the organization's resources and the community's interests.

Entertainment Focus

The primary goal of entertainment is to satisfy the audience, often by providing familiar and enjoyable content.

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Art's Provocative Nature

Art is often thought of as provocative, challenging, and even unsettling, aiming to inspire thought and discussion.

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Balancing Art & Audience

The balance between prioritizing artistic exploration and ensuring audience engagement is a key challenge for arts organizations. They need to select programs that are both stimulating and accessible.

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Performance Value

The combination of factors like performer recognition, musical selection, and the overall ambiance of the venue.

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Artistic Merit

A term used to refer to the artistic value and quality of performances, taking into account elements like the orchestra's skill, the composer's reputation, and the overall artistic merit.

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Web-based Marketing Plan

A strategy of using a website, virtual communities, and online services to reach and engage audiences.

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Theater Web.tv

A website that offers deeper content like interviews, backstage footage, and previews, providing a more immersive experience.

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Product Extension

Extending the core product (theater performances) by creating additional value through media content like videos and documentaries.

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Accessibility

The ability for audiences to easily access performances and information, such as through online streaming or digital platforms.

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Interest and Enthusiasm

Enthusiasm and excitement generated by activities that connect audiences with performances.

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Information and Education

Providing information about performances, artists, and the theater to various audiences, including journalists, members of the community, and online fans.

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Service Business

The core business of performing arts organizations focuses on providing a service rather than selling a tangible product.

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Intangibility of Services

Services are intangible, meaning they cannot be physically held or owned, and they result in an experience rather than a physical item.

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Introduction Stage

The initial stage of an organization's life where the main focus is on building awareness and introducing the product (e.g., a performance) to the target audience.

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Growth Stage

The stage where an organization sees rapid growth with increasing audience interest and demand. It's a time to expand offerings and build customer loyalty.

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Maturity Stage

The stage where an organization has achieved substantial success and market share, with more stable operations, but potential for declining interest.

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Early Stage Promotion

Strategies and activities used to build brand awareness in the early stages of an organization.

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Growth Stage Strategies

Actions taken to grow an organization's reach and audience engagement in the growth stage.

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Life Cycle Analysis

The process of analyzing an organization's progress through different stages of its life cycle (introduction, growth, maturity) to identify trends and adapt strategies.

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Adapting to Changing Needs

Theaters develop new ways to reach audiences, for example, by developing flexible season ticket options, offering educational activities, and utilizing customer relationship management systems to gather feedback.

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Educational Focus

Piccolo uses its shows to educate students about the different theater disciplines and immerse them in the theater experience.

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Building Community Through Theater

Theaters are not just about performances, but also about fostering a sense of community by engaging audiences and students.

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Digital Engagement in Theater

Theaters utilize online platforms to reach wider audiences, share content, and engage with their community.

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Variety in Theatrical Programming

Theaters aim to create a diverse range of programming that appeals to different audiences, including classical and contemporary drama, dance, music, and opera.

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Outreach to Educational Institutions

Theaters use a variety of outreach methods, including workshops and training programs, to educate students and their teachers about theater.

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Accessibility of Theater

Theaters aim to reach a wider audience, including students and groups, through special programs and affordable ticket options.

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CRM in Theater Management

Theaters use customer relationship management (CRM) systems to gather audience feedback and improve their offerings.

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Changing Audience Preferences

Changes in audience behavior, like the decline in full-season subscriptions, have forced arts organizations to adapt their strategies and offerings.

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Alternative Packages

Offering shorter, more flexible packages, like mini-plans and single ticket sales, helps attract a wider range of audiences.

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Adaptation is Key

Organizations that embrace change and adapt their programs to attract new audiences are best positioned to survive.

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Eroding Subscriptions

The decline in full-season subscriptions is a major trend impacting the performing arts industry.

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Creative Marketing

Creative and innovative marketing strategies are crucial for attracting new audiences and building frequency among existing ones.

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Imagination & Change

The success of arts organizations depends on their ability to imagine and implement changes that resonate with their audiences.

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Future at Risk

The future of arts organizations is uncertain for those who don't adapt to evolving audience preferences.

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What was PiccoloCard?

Piccolo Teatro launched an online sales channel, "PiccoloCard", which mirrored their customer relationship management system. This online platform allowed customers with PiccoloCards to purchase tickets, earn points, and access discounts and special services.

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When did Piccolo Teatro begin online ticket sales?

In 2008, Piccolo Teatro began selling tickets directly through the PiccoloCard platform. This move was a key strategy to expand their sales reach.

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What was a key difference between tickets sold on PiccoloCard and the Community site?

PiccoloCard offered full-priced tickets compared to the discounted offers on the "Community" site. This resulted in higher revenue per ticket.

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What was the impact of online sales and higher ticket prices for Piccolo Teatro?

The rising price of tickets, coupled with increased online sales, resulted in a significant boost for Piccolo Teatro. Between 2008 and 2011, online sales grew nearly 50%, while ticket prices increased by 24%.

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Before the creation of PiccoloCard, how did Piccolo Teatro sell tickets?

Prior to opening their online sales channel, Piccolo Teatro relied on the "Community" site to reach a large audience. This site offered discounts and promoted engagement through the "Community" loyalty program.

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Despite offering full-priced tickets, what impact did PiccoloCard have on the "Community" site?

The success of PiccoloCard, which offered full-priced tickets, drove more members to register on the "Community" site. This suggests that the direct sales channel (PiccoloCard) had a positive spillover impact on broader customer engagement.

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How did Piccolo Teatro leverage online sales and higher prices to achieve growth?

Piccolo Teatro's successful online sales initiative, PiccoloCard, was driven by a shift from relying on community channels to a focused direct sales approach. This move, coupled with higher ticket prices, contributed to a significant increase in both revenue and customer reach.

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What key takeaway can be derived from the success of the PiccoloCard platform?

The PiccoloCard site's success demonstrated that offering a platform for direct ticket sales created a profitable opportunity for Piccolo Teatro. This successful approach led to a strategy focused on digital sales and customer engagement.

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Study Notes

Using Strategic Marketing to Define and Analyze the Product Offering

  • Performing arts organizations define their product not just by the performance, but the complete experience offered
  • Consumers seek products, services, and experiences that satisfy their desires and solve problems
  • Value is defined by the buyer, and how the product helps solve their problems
  • For audiences, the key aspects of a play are entertainment, aesthetics, intellect, emotion and/or social experience
  • Frequent attenders value the show itself most, infrequent attenders value the overall atmosphere and environment more
  • Different segments of audiences have different needs and desires
  • A first-time attendee experiences a performance differently from a repeat attendee
  • Customer tastes and interests change over time due to repeated experiences and changing generations
  • A total product concept includes not just the performance, but all offerings by the organization

Total Product Concept

  • The definition of the total product offered by an arts organization goes beyond the work on stage and includes all the organization's offerings
  • A product can be described in two levels

Core Product

  • The core product is what the target market is purchasing /consuming
  • Examples: a single musical piece, the entirety of a concert program, or a series of programs for an entire season
  • People value different aspects of the core product (e.g. musician's name, orchestra's quality, or the atmosphere)

Augmented Product

  • The augmented product consists of all the extra features and benefits created by marketers to enhance the consumption of the core product
  • Examples: subscription packages, ticket exchanges, pre/post show lectures/videos, blogs and social media interaction, educational programs, and special events

Services as Intangible Products

  • Performing arts organizations are in the service industry, thus, their product is intangible
  • Services can't be felt, heard, tasted or physically seen before being bought
  • Marketing for services must provide evidence of quality (e.g. big names, reputations, good reviews.)
  • The quality of a service (e.g. a performance) can vary depending on the provider and when it is provided
  • Services are perishable because they cannot be stored and can only be consumed when it's offered

Determining the Product Offering

  • Programming decisions need to balance artistic merit, organizational mission/competencies, constraints, and community needs
  • Programming can be thematic (e.g. "Romantic Music," "Sounds from Norway") or benefit the community (e.g. "New York Avant-Garde," focusing on specific eras/styles)

Managing Product Life Cycle Stages

  • Organizations need to adapt to changing consumer preferences, internal changes, and the product life cycle itself
  • Introduction stage: build awareness of the organization and its products using PR and low-cost promotion
  • Growth stage: focus on audience loyalty and add product features to increase value
  • Maturity stage: maintain audience, convert non-users, encourage frequent attendance, or improve the product

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