E & The Arts

1. E & The Arts Chapter 3 The Market

2. The Market • Four Distinct Groups • The Consumer Market • Distribution Agents • The State • Sponsors • Each needs specific strategies

3. Terms • Globalization • Competition • Industry Fragmentation

4. One Company, Four Target Markets • Consumer Market • Individuals who buy a specific good or service • Comprised of virtually 100% of the population • However, not everyone buys everything • Market segmentation does occur

5. Market Segmentation • Four known segmentation factors • Family values • Education and the value it places on art • Past experiences with art • Amateur art practice • You can get far more detailed than this in your attempt at segmentation

6. The Distribution Market • An agent or intermediary • Performing arts--- a presenter

7. The State as a Market • Federal • Regional • Local • Support cultural enterprises in a variety of ways • In US only 6% of budget comes from public sources

8. Cause Related Marketing • Benefits to giver • Elevated social status • Visibility • Advertising • Goodwill • More attractive workforce

9. Market Demand • May be expressed either; • Quantitatively • Monetarily • Demand expressed quantitatively is usually more realistic and comparable over time and geography

10. A Definition • There is a distinction made between Market Demand (MD) and Corporate Demand (CD) • CD= The business done by one company (perhaps yours) • MD= The sum total of all CD.

11. Market Share • A particular business’ share of the overall demand for its product.

12. Demand Real and Potential • Real Demand= overall sales volume in a specific time period • Potential Demand= The maximum level that may be reached by a product in a given context • If the real and potential demand are equal, the market is said to have reached the saturation point

13. Changes in Market Demand • World Leisure Market, Tremendous growth between the 60’s and the 80’s • Reasons • Women's liberation • Larger population • More leisure time • Higher incomes • Higher education levels • Baby boomers

14. Competition • Who is the competition? • Other cultural products • Other products designed to occupy the consumer’s free time, such as sports, travel, continuing education, hobbies, etc.

15. Competition • Three types • Competition within the category • Competition between genres of cultural products • Competition between cultural products and leisure products

16. Globalization • Makes it possible to both export and import many cultural products • While exporting the product gives additional venues, importing the product creates increased competition

17. Industry Fragmentation • Porters 5 Forces

18. Industry Fragmentation • Occurs when competitors are small yet numerous • Barriers to entry are small or nonexistent • Buyers/Suppliers are strong • Little possibility of differentiation

19. Competitive Advantage • Company must stand out • Must do something better than all the others • This competency must be positively viewed by consumers • If it is rare, un-imitable, un-substitutable, and valuable then it has the strong possibility of leading to a sustained competitive advantage

20. The Macro-Environment • The Demographic Environment • The Cultural Environment • The Economic Environment • The Political-Legal Environment • The Technological Environment