Today was my first day at the National Arts Marketing Project Conference in Houston. I opted to come in a day early to participate in the pricing institute, and although they presented some interesting information, I feel like they condensed their overall presentation down so far to fit into one day that it lost some of its value.
I did have one insight and a good reminder today. The insight: at the pricing institute, we discussed values based pricing. What value do you bring to your customer, and the importance of comprehending, creating and communicating your value. However, Tim Baker (one of the presenters) said something that really resonated with me about organizations that do a lot of new work. He said "if the customer doesn't know the play they are going to see, it is extremely difficult for them to evaluate value, so the value equation must rest on the reputation of the institution." I took that sentence to read that if you want to do a substantial amount of new work, you must increase your institutional marketing to brand the institution because the customer cannot make a values based decision on a product that is unknown to them. This coincides with a main argument that Michael Kaiser makes in his new book The Art of the Turnaround. Mr. Kaiser's main mantra: good art, marketed well. And he says one of the major mistakes we make as arts marketers is concentrating too much on product marketing and not enough on institutional marketing.
I had dinner this evening with several respected colleagues, one of which being Kory Kelly, the new Director of Marketing and Communications at Actors Theatre of Louisville. Actors Theatre does quite a bit of new work, especially when it comes time for their Humana Festival of New American Plays. As a consumer, I don't have to know anything about the titles or the specific products because that festival is so well branded. I feel like I could buy tickets to any of the Humana Festival productions and see a high quality production. In this instance, Actors Theatre has done a great job of institutional marketing around the festival to boost sales for individual products.
I was also reminded today that you have to sell the experience. People don't buy the product in many cases, they buy the experience, and for many different reasons. At the pricing institute, we discussed the many "types" of values that one could assign to an arts experience including educational, spiritual, therapeutic, ritual, social interaction, and relationship enhancement values. The guy who purchases tickets to the opera for his girlfriend for a special night on the town purchases for relationship enhancement and ritual value (getting dressed up, heading out for a night on the town, etc). The parent who brings his teenager to see Death of a Salesman is probably looking for an educational value. I remember while living in London that if I was having a bad day, I would pop on over to RENT and purchase a 10 pound ticket to escape life. Even though I had seen the show numerous times, it provided me an escape from everyday life. We have to communicate the intrinsic and extrinsic values of our product by selling the experience.
Tomorrow I give my first of two presentations. So off to bed to get a good night's sleep...
Just landed in Houston...
I just touched down at George Bush International Airport in Houston, and I couldn't help but think that I am pretty sure the celebratory atmosphere that I left in DC following the election of Barack Obama probably wouldn't be the same here.
I am in town for my fourth National Arts Marketing Project Conference, where I will be presenting two sessions, leading a round-table discussion and hosting a dine-around. A packed schedule, but I like it that way. I have met so many interesting people at this conference over the years.
A highlight of this year's conference is a convening of marketing experts from major regional theaters that I have been invited to on Monday, November 10. Jim Royce, Director of Marketing, Communications and Sales at Center Theatre Group and Rodi Franco, Director of Communications at the Alley Theatre are hosting the dinner. The group includes Alan Brown (WolfBrown), Mary Trudel (Wallace Foundation), Tim Baker (Baker Richards Consulting), Bil Schroeder (South Coast Rep), Linda Garrison (Steppenwolf Theatre), Anne Trites (Yale Repertory Theatre), Kory Kelly (Actors Theatre of Louisville), Chad Peterson (Northlight), Nella Vera (CTG) and myself representing Arena Stage.
The main topic of conversation will focus on how our institutions are addressing the current economic crisis. The group has agreed to let me blog about the conversation. I must say that I am incredibly excited to be at the table with this group of folks, and I hope some interesting ideas are floated.
Just today, two major opera companies announced huge changes that were blamed on the current economy. The NY City Opera announced that it has separated ways with its incoming artistic director Gerald Mortier, and the Washington National Opera announced that it has abandoned its plans to present the Ring Cycle next year. I have also heard from my colleagues around the nation at some of the largest theaters in the country that they are preparing to make substantial changes in their season. The first out of the box seems to be Seattle Repertory Theatre.
We are all in the same boat, so hopefully we can create an agenda to address this crisis together.
I am in town for my fourth National Arts Marketing Project Conference, where I will be presenting two sessions, leading a round-table discussion and hosting a dine-around. A packed schedule, but I like it that way. I have met so many interesting people at this conference over the years.
A highlight of this year's conference is a convening of marketing experts from major regional theaters that I have been invited to on Monday, November 10. Jim Royce, Director of Marketing, Communications and Sales at Center Theatre Group and Rodi Franco, Director of Communications at the Alley Theatre are hosting the dinner. The group includes Alan Brown (WolfBrown), Mary Trudel (Wallace Foundation), Tim Baker (Baker Richards Consulting), Bil Schroeder (South Coast Rep), Linda Garrison (Steppenwolf Theatre), Anne Trites (Yale Repertory Theatre), Kory Kelly (Actors Theatre of Louisville), Chad Peterson (Northlight), Nella Vera (CTG) and myself representing Arena Stage.
The main topic of conversation will focus on how our institutions are addressing the current economic crisis. The group has agreed to let me blog about the conversation. I must say that I am incredibly excited to be at the table with this group of folks, and I hope some interesting ideas are floated.
Just today, two major opera companies announced huge changes that were blamed on the current economy. The NY City Opera announced that it has separated ways with its incoming artistic director Gerald Mortier, and the Washington National Opera announced that it has abandoned its plans to present the Ring Cycle next year. I have also heard from my colleagues around the nation at some of the largest theaters in the country that they are preparing to make substantial changes in their season. The first out of the box seems to be Seattle Repertory Theatre.
We are all in the same boat, so hopefully we can create an agenda to address this crisis together.
Arena Stage's NEW DEAL
As the anemic economy lingers, I have gotten more and more questions, from press, board members and colleagues, about what I believe the impact will be of the worsening economic crisis. As I wrote in an earlier post, the honest answer is -- I don't know. Truth be told, the first several shows of Arena's season have performed on par with previous seasons, and Wishful Drinking was one of our best performing productions in the past decade.
That being said, I am not so optimistic about the future. Money is getting tight, and some of the most talented forecasters in the retail industry are calling for an incredibly rough holiday season.
As a preemptive strike, Arena Stage announced its New Deal program today. At its core is a huge one day only sale. For one day, Friday, November 14 from 12:00am until 11:59pm, Arena Stage will place 25,000 tickets on sale for $25 each, which represents 60% off regular ticket prices. I believe we owe it to our community to make ticket prices more reasonable during these times, and this is the program we have developed.
I also believe that we have to give customers a reason to buy, and buy now. To a lot of people, a great product is no longer enough -- they need a deal that they feel they can't pass up in order to purchase. In turn, I need them to purchase their tickets now far in advance for shows months away. I refer to this as my security blanket in case the economy gets worse--almost like a subscription in a way.
Round 1 begins...
That being said, I am not so optimistic about the future. Money is getting tight, and some of the most talented forecasters in the retail industry are calling for an incredibly rough holiday season.
As a preemptive strike, Arena Stage announced its New Deal program today. At its core is a huge one day only sale. For one day, Friday, November 14 from 12:00am until 11:59pm, Arena Stage will place 25,000 tickets on sale for $25 each, which represents 60% off regular ticket prices. I believe we owe it to our community to make ticket prices more reasonable during these times, and this is the program we have developed.
I also believe that we have to give customers a reason to buy, and buy now. To a lot of people, a great product is no longer enough -- they need a deal that they feel they can't pass up in order to purchase. In turn, I need them to purchase their tickets now far in advance for shows months away. I refer to this as my security blanket in case the economy gets worse--almost like a subscription in a way.
Round 1 begins...
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