AGAC Arts Organization Marketing - Case Study Example

AGAC Arts Organization Marketing Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 4 2.0 Marketing Objectives 4 2.1 Low Costing Approach 5 2.2 Distribution Efficiency 5 2.3 Strong Talent Management 6 2.4 Low Cost Marketing 6 3.0 Target Market Consumers 6 3.1 Art and Cultural Organizations 7 3.2 Designers 7 3.3 Final Consumers 8 4.0 Budget Breakdown 8 4.1 Marketing Strategies 9 4.2 Marketing Programs 9 4.3 Emergency Funds 9 5.0 Marketing Campaign Materials Samples 10 5.1 Print Advertisement targeting the Artists 10 5.2 Advertisement Targeting the Consumers 11 5.3 Emails 11 6.0 Tactical Measures in Marketing Strategies 11 6.1 Social Media 12 6.2 Endorsements 13 6.3 Partnerships and Strategic Alliances 13 7.0 Performance Evaluation Process 14 7.1 Cost-Benefit Analysis 14 7.2 Balanced Score Card Evaluation 15 7.3 Market Surveys and Benchmarking 16 References 17 1.0 Introduction The arts industry is gradually developing. This is more so enhanced by growing globalization as well as the integration of increased cultures across the globe. In this regard, developed infrastructures have led to the emergence of new international and foreign cultures that were initially not thought to be in existence (Stromquist and Monkman, 2000, p.84). Therefore, it was imperative to develop a platform and opportunity through which these cultures could be demonstrated. This led to the development of the All Global Arts Center (AGAC). The organisation is an online platform in which different individuals can demonstrate and show case their art works. The mission on the overall statement of the organization is to provide the indigenous cultures with an opportunity to showcase their aspects and talents to the global market. This is a major mitigation from the current arts organisations that focus on developing exhibitions. Due to the distance and high costs of participating in such exhibitions, the foreign artists lack the opportunity to showcase their talents and products (Liu, 2004, p.11). Therefore, the low costs involved in showcasing such art works and talents online offers the artists with an alternative platform through which the artists can benefit from their works at reduced costs of production consequently allowing for the selling of artworks at reduced costs, thus providing sustainability and affordability of such artworks in the global market. 2.0 Marketing Objectives In order to market the AGAC organization a range of marketing approaches and practices can be applied. This involves audience specific approaches in which the organization directly market and present the goods to the potential consumer base. 2.1 Low Costing Approach The price element as Ivy (2008, p.291) in an evaluation of the higher education sector argued, is a crucial marketing mix element. This implies that a manipulation of the element causes changes on product market success and influence. A current major problem in the artworks industry is the high selling costs of the artworks due to the associated high operational costs mainly in marketing the works. However, as already discussed under the organizational mission AGAC targets at reducing the costs through the use of an online showcasing and selling platform for the artists. Therefore, this will allow the venture and its suppliers to imperatively reduce on the selling prices (Kalyanam and McIntyre, 2002, p.487). Consequently, the approach will offer the organization an imperative market competitive edge over other physical market organizations that operate under high costs lending to higher artworks selling prices in the long run. 2.2 Distribution Efficiency Once purchases have been made online, the organization will provide efficient distribution channels. In this case, it will liaise with respective regional leaders in the logistics and transportation industry. Through these alliances and outsourcing practice, the organization as Sheehan and Cooper (2011, p.746) argued will ensure increased products delivery on time. Consumers’ confidence and willingness to do repeat business is based on the nature and timeline for deliveries on already purchased products. Therefore, it seeks to build a market reputation and success competitive edge through on time deliveries to the consumers as well as impromptu payment processing for the artists to allow for their continued artworks supply to the venture in the long run. 2.3 Strong Talent Management One of the key pillars and components f a marketing mix is the presence of qualified personnel and qualified HR in organisations. In this case, as Peter and Eunice (2014, p.21) stated, the presence of experienced and qualified workforce enhances quality products and services delivery to the consumers. Based on this theoretical argument, one of the strategic marketing objectives by AGAC is the development and empowerment of global artists. As such, the empowerment is intended to be achieved through the provision of an opportunity to showcase their products and artefacts as well as offering them the platform to sell and earn revenues from their talents. This is expected to increase their financial abilities resulting to increased quality and talent development among the artists. 2.4 Low Cost Marketing Although the organizational a strategic objective f marketing its model and supplied and showcased artefacts, it intends to reduce the overall marketing costs. In this regard, the approach will allow for increased organizational revenues as well as profit margins to the artist supplying their products through the organization. The application of this marketing objective is based on an argument developed by Lee (2001, p.201). In this case, the authors argued that marketing costs serve as a great proportion of the overall production costs. Therefore, reducing the marketing costs would essentially reduce the overall production costs in the arts and culture industry and thus promoting increased profit margins opportunities in the long run. 3.0 Target Market Consumers Cheron, Kohlbacher and Kusuma (2012, p.359) in an evaluation case study of marketing in Japan argued that for any organization to succeed in its marketing endeavours it should focus and seek to expound and appropriately establish as much information on the target consumers as much as possible. Therefore, based on this argument, AGAC organization conducted a secondary data evaluation on its target consumer base. This evaluation was based on existing arts industry statistics and theoretical reviews in the market specific to the industry. As such, it established that the organization has three main target consumer segments as discussed below. 3.1 Art and Cultural Organizations One of the largest portions of the organizational target consumer base is the arts and cultural organisations across the globe. This was based on a review developed by Hopkins, Friedman and Friedman (199, p.18). In the analysis, the authors argued that the global market is experiencing an increased desire to learn on the foreign cultures as well as retain them. Therefore, this has led to the establishment of numerous learning institutions and cultural and artworks conservation organizations. As such, these organisations eek to acquire wide diverse artworks relating to diverse cultures in order to enrich their heritage and attractiveness in the long run. Thus, due to the diversity of artworks available in the organization the consumer base is bound to be drawn onto the organizational online platform to purchase the goods and have them delivered to their premises. 3.2 Designers One of the emerging consumer bases in the global platform is the designers’ especially internal décor designers. Over the years, the internal designing industry has acquired increased need to blend the interior décor needs to suit a majority of the consumers. In this regard Manroe in the Traditional Home website (2014) depicts, the consumer base is turning to traditional interior décor aspects in the move to uphold and appreciate cultures and traditional artworks. As such, the designers are increasing sourcing and seeking alliances and partnerships with able and capable artists who can offer and enable them provide such internal décor ambiance in the ventures. Therefore, with the availability of an increased number of artists with the capability of supporting such designers through service delivery, they will form part of the organizational consumer base. This information on designers changing needs is drawn form a range of the industry literature materials as well as practical observations on the changing interior décor aspects in a majority of the commercial and social ventures across the globe (Kleinberg and Breen, 2011, p.116). 3.3 Final Consumers The last category of the target consumers for the AGAC arts centre is the final consumers. This as Ching, Porter, Smoak and Ziegeler (2009, p.23) described is comprised of the traditional industry consumers who are generally the interested individuals who wish to support and retain cultural heritage. As such, this consumer base category, as already evidenced from other arts centres purchase the artefacts and subsequently retain them as a form of aesthetic or class and social status demonstrations. Although orders from this consumer category are a high and numerous, their values are often low and purchased products are often in the single unit thus considerably reducing their overall profitability levels as compared to the designers and arts organisations. 4.0 Budget Breakdown In the current financial year, the AGAC marketing function was financed with a $25,000 budget for its annual programs and strategies execution. Although the budget allocation is relatively low, the function has developed a series of cost efficient programs to ensure conformance and operation within the budget provisions and allocations in the market. 4.1 Marketing Strategies On one hand, the function allocated $15,000 to financing its marketing strategies. In this regard, the endorsement program was allocated $10,000. This high value allocation is based on the fact that for each o the three consumer segments, the organization will utilize three different endorsement celebrities, thus the high costs. Moreover, the function allocates $3000 to strategic alliances and partnerships in the industry. In this regard, the funds will be utilized in the process of financing respective negotiation meetings with the partners as well as allowances for the function staff directly involved in forging these relationships. Further, an additional $2000 of the marketing straggles will be channelled towards the social media platform. As such, among the allocated areas will be social technology management staff expenses as well s the development of an appropriate support infrastructure. 4.2 Marketing Programs The function allocated $5,000 to different marketing programs. In this case, the advertising program, which focuses on both print and electronic marketing, was allocated a huge proportion of $3,000. Moreover, the function allocated $2000 to individual marketing programs such as email processing as well as allowances to the organizational marketing staff involved directly in the structuring and executing of the respective programs. 4.3 Emergency Funds The global market is highly dynamic and as such imperatively unpredictable. In this regard, changes in the global market structures as well as influential factors such as inflation may implicate on increased marketing costs. Therefore, in order to mitigate these challenges, the venture allocated $5,000 as an emergency marketing fund, to ensure that any unexpected market dynamic changes do not forestall the marketing function operations. However, if unused, the kitty will be channelled towards the endorsement strategy in the next financial year as a balance brought down. Marketing Budget Plan Marketing Strategies Endorsements 10,000 Social Media marketing 2,000 Strategic alliances 3000 15,000 Marketing Programs Advertisements 3,000 Individual marketing 2,000 5,000 Emergency Fund 5,000 5,000 Total 25,000 5.0 Marketing Campaign Materials Samples 5.1 Print Advertisement targeting the Artists The AGAC organization presents all the artists with an opportunity to showcase and sell their respective artefacts. Based on its online operation model and its sustainable relationships approach with the artists associations, the venture ensures on low marketing and supply costs for the artefacts provided. If you are a talent artist across the globe, with artefacts you believe to be unique, hesitate not contacting our customer case desk for more information on how partner and sell your art products through our online platform. You can reach us through www.AGAC.org.com Or you can also contact us through email infoo@agac.com 5.2 Advertisement Targeting the Consumers Interested in artefacts at an affordable price? Search no more. AGAC art centre is an online platform that offers you the ultimate opportunity for developing and managing a wide range of artefacts stock to suit your needs. The organizational online portal and the door step delivery model ensure convenience and comfort in your Endeavour to support the arts industry. For more information you can reach us through www.AGAC.org.com Or you can also contact us through email infoo@agac.com 5.3 Emails Besides the use of print media, the organization uses individual emails to the existing consumers and partners. In this case, the emails are raised to inform them of new artefacts on showcase as well as on new orders for artefacts the partners could avail respectively. The application and use of the model ensures that the respective stakeholders are up to-date on the various information needs and updates required for increased organizational operation success. 6.0 Tactical Measures in Marketing Strategies This evaluation has offered three strategic marketing approaches and strategies through which the AGAC organization expects to influence and capture the arts industry market especially in the support of talents through the sale of developed artefacts to allow for increased development and production of more. However, the strategies execution and success requires a series of support systems through tactical activities that help and support ventures to achieve them. This evaluation segment outlines the various strategic tactical practices and approaches through which the marketing objectives will be achieved 6.1 Social Media On one hand is the use of social media. The social media as Sarah, Contogiannis and Jembere (2013, p.371) in an evaluation of marketing in the South African banking industry argued, is an increasing growing marketing component. In this regard, the development of virtual communities as well as its increased use and application has exponentially expanded its overall use and application in the market. Therefore, the application of this marketing approach will ensure that the organization reaches out to a large consumer base. Moreover, the social media is considered informal. Therefore, it will allow and provide an opportunity through which grapevine on the organizational art products can be spread across the market, thus expanding and increasing its influence in the industry. Different studies have established and assured of the existing link between social media and marketing success. In this regard, the application considerably educes the marketing costs and budgetary allocations. Therefore, through this approach, the organization will achieve its strategic marketing objective of delivering the products at relatively cheap and reduced prices to allow and increase market affordability of the artefacts supplied. 6.2 Endorsements An additional approach marketing strategy available for the AGAC is the use of endorsements. Ogunsiji and Sola (2012, p.141) classified endorsements as a marketing approach through which organisations use industry professionals and role models to influence the consumers. The use of endorsements has a stimulating effect on the consumers’ decision making process. In this case, such moves increase the need for the art works as well as influence the consumers’ information search and alternative evaluation inclining to the endorsed brand or organization. Therefore, this marketing strategy review argues that with increased endorsements use, the AGAC online platform will draw an increased consumer base to both offer their artworks as well as purchase the provided artworks. Thus, the platform will acquire n increased number of both suppliers and buyers upon authenticity verification in the market. Through endorsements, the organization will achieve increased reputation (Barnett and Pollock, 2011, p.397). Under the endorsement, the organization will seek to attract its three target consumer bases. Thus, under this approach, reputable internal designers will be used as well as arts museums and organisations seeking to preserve artefacts and also individual renowned for their culture and arts preservation and regard in the global market. 6.3 Partnerships and Strategic Alliances An additional strategic approach through which the organization can achieve its marketing objectives is through the application and use of alliances and partnerships. In this case, the partnerships should be with the talented artists across the globe. In this regard, it encourages the development of unions and associations by the artists through which it conducts business and relates with them. Kauser and Shaw (2004, p.22) argued that such partnerships allow for increased and continues products supply thus hedging against shortages. Moreover, the organization focuses on establishing strategic alliances with its consumers. In this regard, the alliances ensure that the consumers remain loyal and thus enhance stable incomes and revenues to the venture profits both in the short and long run operational periods. 7.0 Performance Evaluation Process Any marketing strategy success is based on the nature and approaches applied by respective organisations to control and regulate its execution. Gilley, Walters and Olson (2002, p.97) discussed on the need for evaluation and control under strategic management. In this regard, the authors conducted a review on the organizational merits on management for increased use and application of evaluation and performance control tools. In its analysis, the study concluded that organisations applying this principle registered increased performance and market relevance due to the application and use of sustainable competitive edges in the industry. Therefore, based on this theoretical review, AGAC arts centre applies a series of performance evaluation tools as discussed below. 7.1 Cost-Benefit Analysis The cost benefit analysis is an approach through which respective organizational strategy gains and success are based and evaluated against the incurred expenses. Theoretically, Sunstein (2002, p.191) argued that the cost benefit analysis approach applies the matching concept accounting principle. In this regard, the concept dictates on the need to match organizational gains against the costs incurred in achieving them over a specific period of time. Through this approach, organisations attain the ability to distinguish between profitable and non-profitable activities and strategies. Similarly, the application of the approach enables AGAC evaluates the various marketing strategies and how each serves to achieve the enumerated marketing objectives. Consequently, if any of the strategies and tactics is established as non profitable and not contributing to the overall mission of the art venture, they are either restructured or essentially removed from the organizational marketing system. The application of this system ensures that the venture acts proactively and mitigates any potential losses well in advance to enhance market performance and profit margins stability in the long run. 7.2 Balanced Score Card Evaluation Current global market changes in the industry have led to an increased gains diversification. As such, besides the financial gains form a venture; current practices evaluate on the non-financial gains aspects of an organization. In this regard, the balanced score card approach the evaluation focuses on the implications of its marketing strategies on the societal well being as well as on the consumers and the suppliers respectively. Therefore, the only criteria for retaining a marketing strategy are not based on its financial performance. Thus, as Jalaliyoon, Baka and Taherdoost (2012, p.271) in an evaluation of performance evaluation in the manufacturing industry argued, organisations evaluate and retain marketing plans based on a combination of their financial and non financial gains. For instance, if the endorsement marketing strategy leads to increased financial gains and sales but has a negative implication on the relationship between the organization and the artists who serve as the suppliers, then such a marketing strategy is dropped. Moreover, if a strategy yields average financial returns but have a great positive implication towards developing and growing the organizational market reputation and brand image in the long run, then such a strategy is retained and efficiency in its execution facilitated to promote its financial gains. 7.3 Market Surveys and Benchmarking The last approach through which the organization controls and evaluates on the performance of its respective marketing strategies is through surveys and benchmarking. In this regard, upon the roll out of every marketing strategy, the marketing function sets targets that the strategy must achieve both financial and non-financial over a specific period of time. Therefore, once the stipulated time period elapses, the marketing function evaluates the performance and gains of the strategy against the forecasted values. This is referred to as benchmarking. As Wai and Kuan (2008, p.27) discussed, benchmarking allows for increased evaluation on the actual performance of strategies. For the AGAC organisation, if the actual strategy performances exceed the benchmark, then such strategies are retained. On the other hand, if the actual performances fall short of the expectations, then the strategy is either restructured or entirely eliminated from the organizational system operation. References Barnett, M. L., & Pollock, T. G. 2011, The Oxford handbook of corporate reputation, Oxford University Press, Oxford. Chéron, E., Kohlbacher, F. & Kusuma, K. 2012, "The effects of brand-cause fit and campaign duration on consumer perception of cause-related marketing in Japan", The Journal of Consumer Marketing, vol. 29, no. 5, pp. 357-368. Ching, M. O., Porter, B., Smoak, W. & Ziegeler, C.,. 2009, Apache Maven 2 effective implementation: Build and manage applications with Maven, Continuum, and Archiva, Packt Publishers, Birmingham, UK. 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