MARKETING STRATEGY FOR A PUBLIC SECTOR MUSEUM.
1.1Definitions of marketing
1.3Marketing in not for profit organisations
1.4The social market
2.1Types of market
2.2Responses to segmented markets
2.3Product & service development
1.1Definitions of Marketing
The UK Chartered Institute of Marketing definition is
'The management process responsible for matching resources with opportunities, at a profit, by identifying, anticipating, influencing and satisfying customer demand.'
Clearly this definition reflects the aspirations and interests of an organisation that is run for profit as opposed to a museum that is run primarily for objectives other than profit generation. Considering marketing in terms of a broader range of organisations there are many different academic definitions of marketing but what they all have in common is emphasis on the interaction between an organisation and it's customers or between and organisation and it's stakeholders.
For a museum the customers could be considered to be the visitors whilst the stakeholders are less obvious and wide ranging. Mercer discusses three elements of the marketing triad: -
·Dialogue - to establish what is required
·Relationship - exchange process
·Co-ordination - organise to deliver
Which applies equally well for customers or stakeholders.
A museum is a type of public good (actually something which has common ownership) for which the free market with its considerations of supply & demand and competition does not operate. The current policy of not charging for entrance makes the museum a non-excludable common good. That is, no one is excluded from partaking of the offering (all can benefit from government provision of funds) there is no incentive to seek profit through charging. If a change in policy were to result in charging entrance fees then it would become an excludable common good. However, entrance fees would be top up funding rather than the museum being run for profit. As use of the museum is rivalrous, individual users may be in competition as exemplified by noisy school children in conflict with individual private viewers, people may be prepared to pay to obtain a reduction in conflict and hence a more pleasurable experience.
1.3 Marketing in not for profit organisations
The stakeholders, or interested parties, in an organisation, which does not have profit generation as an objective, may or may not be customers. For a museum typical stakeholders could include private individuals, educational establishments, employees, cultural societies, city administration, regional government, central government, EU regional funding body, other funding bodies...