cultural entities which are located in smaller cities often do not have adequate training in the field of strategic or marketing management, and their activities are limited to the development of promotional programs or the distribution of tickets. The situation is much better in institutions located in big cities or important cultural centers, but here there are often problems with the funding of marketing activities, with the effect that the staff is unable to effectively ―sell‖ their activities, and this in turn means that the employees lack confidence in themselves. As they do not feel that they could have an effect on the success of their institution, they put less emphasis on the implementation of the marketing strategy and monitoring its implementation. In consequence, without the full implementation of the marketing strategy and the effective monitoring of its implementation, there is no method to convince top management to conduct marketing activities (develop, implement, and consistently maintain the marketing strategy). As a result, management becomes more and more skeptical about the contribution of the marketing department and the advisability of investing funds into it. This results in insufficient resources being allocated for this purpose, and the whole process repeats itself.

# **References**

Abell D.F. (1980), *Defining the business: the starting point of strategic planning*, Prentice Hall, Englewood Cliffs

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects*

Guiltinan J.P., Paul G.W. (1994), *Marketing management: Strategies and programs*, McGraw-Hill, New York

Steinmann H., Schreyogg G. (1995), *Zarządzanie: Podstawy kierowania przedsiębiorstwem*, Oficyna Wydawnicza Politechniki Wrocławskiej, Wrocław

Styś A. (1996), *Marketing usług*, Wydawnictwo AE we Wrocławiu, Wrocław

Wrzosek W. (ed) (2004), *Strategie marketingowe*, PWE, Warszawa

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects* **110** Logos Verlag Berlin – Academic Books for Sciences and Humanities

# **Chapter 4**

# **Marketing strategies based on relationships with key market participants**

*Marketing strategies based on relationships with key market participants*

# **1 The process of forming relationships**

Changes taking place in the cultural sector (growing competition, the virtualization of consumption, development of new technologies, and globalization) clearly show that cultural institutions must create long-term relationships with both customers of culture, as well as other market participants (e.g. donors or employees), in order to secure their future existence. The traditional concept of marketing is increasingly being criticized. The cultural institutions which use classic marketing primarily focus on acquiring as many new customers or donors as possible, often neglecting their present, often most valuable customers. The concept of relationship marketing enables us to take a modern look at the nature of the interactions and relationships between the cultural institution and the various entities occupying its environment, and therefore is well suited for use in the cultural sector (Sobocińska 2015, Peck et al. 2013, Wróblewski 2012, Palmatier et al. 2008, Grönroos 2004).

Relationship marketing is a marketing concept which has been developing since the early 1980s and is currently considered to be the dominant paradigm in this field, gradually displacing the concept of transaction marketing (Hollensen 2015, Egan 2008). In relation to the services market, the change in marketing towards building lasting relationships with customers came in 1983 when Berry (1995: 236) first described the whole concept of relationship marketing as a concept for the management of a services company. He distinguished five strategic elements of the application of relationship marketing, which today represent the theoretical basis of the concept: developing core services, adapting the offer to the expectations of the individual customer, enriching the core service with special benefits (added value), pricing to stimulate consumer loyalty, and undertaking intensive marketing activities in regard to one's own employees.

Building lasting relationships is a continuous process and does not end when a customer is persuaded to participate in an artistic event, a donor to give his support, or an artist is persuaded to become involved in a particular project. Forming long-lasting relationships goes beyond a single transaction and is cyclical in nature. This means that the cultural institution and its clients (consumers of the cultural offer, donors, employees) pass through successive, repeated stages. If the course of a given cycle of the relationship is undisturbed, the partners in the exchange start a new cycle. Passing through subsequent cycles is a prerequisite for the continuation of the relationship (Claycomb and Martin 2013). The process of cultural institutions building long-term relationships with the consumers of cultural offers, donors, and employees is presented in Figure 4.1.

In the process of building long-term relationships, we can distinguish two main phases: the initial phase - the creation of a relationship (this phase ends when a customer is persuaded to participate in an artistic event, a donor gives his support to the institution, or a contract is signed by an artist with the cultural institution) - and the main phase of strengthening of the relationship (which is a closed cycle and continues for a longer time). The main objective of the initial phase is for the cultural institution to establish ties with selected customers (consumers of the offer, donors, employees). This phase can be divided into three stages: the first stage consists of identification of target customers, the second stage of offering value to potential customers (the main benefit), and the third stage of acceptance of the cultural institution's offer by the customer (or its rejection) and their decision to purchase the services, grant support, or sign a contract with the cultural institution. The initial phase of building a relationship is therefore synonymous with the classic marketing process.

**Figure 4.1** The process of cultural institutions building long-term relationships with the consumers of artistic offers, donors and employees

A characteristic feature of the main phase is the cyclical implementation of subsequent stages of relationship marketing: creation and delivery of value, re-offering value, accepting value, creation of and delivering value, etc. This is the basis on which the relationship is continued and deepened. In this phase, the consumers of the cultural offer, donors and employees, beside the main benefits are offered additional benefits by the cultural institution, such as a special acknowledgement or distinctions for the sponsors, or loyalty programs and prizes for employees. Breaking this cycle means breaking the relationship between the cultural institution and the client. Therefore, it is important to constantly monitor the process of relationship marketing, and not only the achievement of the objectives of the cultural institution, but also to constantly monitor the so-called critical moments, such as the rejection of the value offered by the cultural institution (Kinard and Capella 2006). Source literature provides a rich set of measures for strengthening relationships (Hollensen 2015, Peck et al. 2013, Palmatier et al. 2008, Egan 2008, Grönroos 2004). The most important of them are presented in Table 4.1.

**Table 4.1** Definitions of the measures of the strength of a relationship between cultural institutions and the consumers of the offer, donors, and employees

The inclination of the consumer of the artistic offer, donor or artist to develop the relationship is determined by their beliefs and emotions regarding the cultural institution and has been shaped by the previous interactions. Therefore, the creation of long-lasting relationships in cultural institutions requires a departure from the traditional way of doing

business. The basis of such a system is to create exceptional values for the consumer of the artistic offer, donor, or artist, rather than maximizing profits.

# **2 Shaping relationships with consumers of the cultural offer**

In the cultural sector, the consumer of the cultural offer is the ultimate verifier of the efficiency and effectiveness of the cultural institution. The opinions, attitudes, and behaviors of customers in the market determine the position of a cultural institution. The customer's decision-making process is affected by the overall evaluation of the cultural institution, in regard to, for example, the program it offers, the efficiency of the service, and the efficiency of the communication system. Information about the factors which affect the customer's selection process is particularly important. This information is collected by the cultural institutions in order to serve as many satisfied customers as possible. Only a sufficiently high level of satisfaction with the cooperation leads to maintaining contacts, repeated purchases and, as a result, customer loyalty to the artistic organization. Hence, building long-term and lasting relationships with consumers of the artistic offer is a special area of interest for cultural institutions (Ha and Stoel 2008, Palmatier et al. 2007, Ndubisi 2006).

The building of lasting relationships by a cultural institution with the consumers of its offer is a process that may take the form presented in Figure 4.1. In the initial phase of the process of building relations, in order to make the correct identification of target groups, it is necessary to carry out customer segmentation. The example of the segmentation of consumers of musical institutions (e.g. opera, concert hall), presented in Figure 4.2, shows the desired structure of current and potential consumers of the cultural offer.

**Figure 4.2** Pyramid of opera and concert hall goers

This form of segmentation allows the most valuable (profitable) consumers of the cultural offer to be distinguished. Commercial companies are, of course, familiar with the Pareto principle and consciously focus efforts on those customers who generate the most income. However, it seems that a significant number of cultural institutions do not benefit from this knowledge. If some segments of the population can be considered as regularly attending symphony concerts, opera, or theater, they should be the object of special efforts. Such segments, by their very nature, are the easiest to encourage to participate and they can develop properly over time. However, Dawson (Mokwa et al. 1980: 7) draws attention which can be considered a paradox in marketing culture - to missionary efforts which aim to develop the audience among those marginally interested in art and almost neglect efforts to ensure the strongest possible reaction from that segment of society which would be most

willing to support it. Many cultural institutions still do not see the need to focus on those customers who represent the greatest potential for them. Sargeant (2004: 236) points out that the client who spends nearly 500 pounds per year on culture is worth more than one that spends five pounds during the same time period. Unfortunately, many conservative artistic directors regard this as heresy, but wrongly so. Carefully winning over the most valuable customers can bring valuable income which can be allocated to the more missionary aspects of the organization.

A key element of the initial phase of building lasting relationships with customers is the concept of value (benefits). Once the target audience of the cultural offer has been correctly identified, they should be offered a certain value. It should be remembered that value is determined not only by the service the customer receives. Equally important is the way the service is received, and to be precise, the quality of the process of interaction and dialogue with the customer (Grönroos 2004, Furtak 2003). The effect of the exchange of tangible and intangible values is customer satisfaction, trust, and commitment to the service provider. The perceived value of maintaining a relationship with a cultural institution is therefore the sum of the basic and additional value. The basic value concerns the most important benefits which are experienced from contact with the cultural institution. For example, in the case of a concert hall, the sense of basic value, the most important benefit, can be understood by answering the question of what the consumer of a cultural offer actually buys or what are the basic needs he intends to satisfy when selecting a symphonic concert. It turns out that the basic value (most important benefit) that is offered by a cultural institution is linked very strongly with the core of the product and, depending on the consumer's needs, can take different forms. Examples of linking the core of the product with the main motive for participating in a symphonic concert (the most important benefit) are presented in Table 4.2.

**Table 4.2** Relationship of the core of the concert hall's product with the basic value for the listener

As shown in Table 4.2, depending on the listener's preferences, the basic value for the consumer of a cultural offer might be not only the opportunity to become acquainted with a specific musical masterpiece, but also, at the same time, to hear an eminent virtuoso playing or taking part in a concert by a renowned symphony orchestra.

Added value is, however, associated with additional services and the process of interaction. It is a set of characteristics and conditions which are expected by customers who decide to buy a particular product. Customers can expect the possibility to book tickets over the phone or via the Internet from a cultural institution. They can expect various forms of payment for tickets, the availability of parking spaces near the building, functioning airconditioning in the concert hall, etc. Of course, as in the case of basic value, the consumers' expectations can also be very different in this respect. For example, in the opera, theater, or concert hall, for some listeners a decisive factor may be the acoustics of the concert hall, while for others more important is the availability of parking near the institution. The main advantage and its associated additional services (added value), delivered in a sequence of episodes within the interaction process, shape the value perceived by the consumer.

When the customer decides to purchase a ticket for a certain artistic event (accepts the value offered by a cultural institution), we move to the main phase of the process of relationship marketing - a bond is established between the cultural institution and the client. Ballantye (1999) draws attention to the role of dialogue in maintaining relationships. Satisfactory contacts between the institution and the consumers of a cultural offer result in increasing customer confidence, their attachment to the institute and the gradually climb to the top of the ―loyalty ladder‖ (Figure 4.2). A necessary condition for deepening the relationship is offering value once again to these specific customers (Grönroos 2004). For example, some cultural entities (opera, theaters, museums, concert halls), in seeking to strengthen ties with their customers, invite them to fan clubs, offer special passes (subscriptions) at very attractive prices, or send special newsletters via the Internet from which customers can get information about the cultural institution or the artistic season. In addition, information is sent by mail about the current repertoire, and the most devoted customers are invited to open rehearsals, meetings with artists, and special balls held at the cultural institution (e.g. the opera, concert hall, theater) where they can meet renowned artists, for example.

# **3 Developing relationships with donors**

As in the case of consumers of the artistic offer, the process of shaping the relationship between cultural institutions and donors (patrons, sponsors) must start with their segmentation. A donor, patron, or sponsor (generally a donor) are concepts which emerged as early as in Classical times and which still exist in modern dictionaries. Their application relates to similar areas, but the specific meaning has changed. Nowadays, sponsoring is a term which describes the nature and purpose of activities which support various areas of life in order to achieve one's own benefits, and this distinguishes it from patronage or charity the domain of philanthropists (Figure 4.3).

Biegluk points out the differences between charity, sponsorship, and patronage. According to him, charity can be described with the words ―I give so you'll have‖, sponsorship as ―I give, so you give‖, and patronage as ―I give so you'll exist‖ (Grzegorczyk 2003: 47).

**Figure 4.3** Types of donors of cultural institutions

From the very beginning, donors have been connected with cultural institutions. One example is New York's Lincoln Center with the famous Metropolitan Opera. In 1966, architect W.K. Harrison and acoustician C. Harris built the new Metropolitan Opera (MET) as part of the Lincoln Center, which also includes the New York City Ballet and the Avery Fisher Hall. Maintained in its traditional red, white, and gold colors, the Metropolitan Opera has the shape of a five-story horseshoe with rows of boxes on the sides. This arrangement takes into account the will of the donors, who, in contrast to the state-subsidized European stages, financed the entire project and did not want to give up their reserved boxes. These days the Lincoln Center also benefits from the generosity of its donors, who maintain such respected arts organizations as the Metropolitan Opera, New York City Ballet, and New York Philharmonic. Each of these organizations has hundreds of donors who give from several dozen to more than two million dollars a year. Therefore, it is in the interest of this organization to maintain the greatest possible number of loyal sponsors, especially corporate sponsors (businesses, corporations, foundations, etc.), as it is they who transfer the greatest amounts to the New York Lincoln Center. Without these funds, artistic events like the free

concerts of the MET or the New York Philharmonic in urban parks, as well as numerous educational projects designed for children, would not be possible.

The Metropolitan Opera in New York has divided its donors into two main groups individual donors and corporate donors. The first group is made up of as many as 22 sections which define the level of involvement in the financing of the opera (Table 4.3), whereas the group of corporate donors is made up of nine sections (Table 4.4).

**Table 4.3** Guild Member benefits by tier

*Marketing strategies based on relationships with key market participants*

*Source* http://www.metopera.org/Support/Join-The-Met/Become-a-Guild-Member/ (accessed 21 Sep 2016)

**Table 4.4** Corporate patron benefits by level

*Source* http://www.metopera.org/Support/Corporate-Partnership/Corporate-Partnership/ (accessed 21 Sep 2016)

Such a precise breakdown of individual and corporate donors required the preparation of a separate offer for each group which would not be possible without regular market research (Kolb 2005). In the case of the sponsors of cultural institutions, the basic parameters of the companies which are sought as sponsors must first be determined. Standard criteria which are taken into consideration in this type of analysis are the location and geographic coverage, turnover and the level of promotional spending, the standard duration of promotional campaigns and their cyclical nature, the expected way of receiving benefits by the sponsor (in kind, service, financial), and the nature of promotion objectives. From the point of view of the potential effectiveness of acquiring sponsors the characteristics of the target group of the sponsoring company should be determined. The geographical strategy for the selection of sponsors can be based on many observations of their activities. Often, supporting cultural development in the region is the main incentive for sponsors to make a decision about sponsoring (Grzegorczyk 2003: 202). Permanent sponsors of the Polish Baltic Philharmonic in Gdansk are, for example, the EDF Group or the Energa Group (large power companies), which are based in Gdansk.

In the case of the patrons and donors of cultural institutions, the basic value is prestige in itself, the satisfaction of belonging to a group of philanthropists. This value satisfies the

need for respect and recognition. A cultural institution, in order to establish a long-term relationship with this specific group of donors, also offers added value. For example, the National Philharmonic in Warsaw gives its donors and patrons membership to the National Philharmonic Friends Club, which enables the wider involvement in the activities of the concert hall (Table 4.5).

**Table 4.5** Additional benefits offered to selected consumers of the cultural offer of the National Philharmonic in Warsaw

*Source* Regulations of the National Philharmonic Friends Club http://filharmonia.pl/sponsorzy-ipartnerzy/klub-przyjaciol-filharmonii-narodowej/regulamin-klubu-przyjaciol-filharmonii-narodowej/ (accessed 21 Sep 2016)

The members of this club participate in, among other things, open rehearsals, which gives them the opportunity to lead an interesting social life. Every year there are Christmas parties and meetings to celebrate the end of the artistic season, where the club members (Gold and Platinum Cards) can meet with the conductor of the orchestra, soloists, musicians, as well as personalities of the world of culture. Such events are very prestigious.

The Polish Baltic Philharmonic in Gdansk, in order to establish long-term relationships, offered so-called ―Music Lover's Seats‖ to its patrons and donors. These seats feature a special plaque with the donor's name. The donor receives an additional pass - a subscription, with a certificate and an ID card, with which he can participate in all artistic events branded by the Polish Baltic Philharmonic.

A perfect example of an institution that has successfully built long-term relationships with its patrons and donors is the New York Philharmonic. Proof of this is the fact that its programs are chock-full with the names of patrons and donors. Donors belonging to the socalled ―Leonard Bernstein Circle‖ in sections ―Maestro‖ and ―Concertmaster‖ are invited to receptions, dinners, and lunches with the biggest stars of the New York Philharmonic, as well as guest stars. Moreover, they can choose one concert a year which will be dedicated to them or can be dedicated to a selected person. This system allows the fulfillment of the snobbish needs of these groups who, dressed in tuxedos, arrive at the concert in Rolls Royces and mingle with people of similar status. Treating selected donors in such a special manner brings valuable income that can be spent, for example, on organizing free concerts in public places, e.g. on the lawn in Central Park.

Logos Verlag Berlin – Academic Books for Sciences and Humanities **131** However, in many cases, just the prestige and satisfaction of belonging to a group of philanthropists is not enough. When a donor wants to receive specific benefits (values) in exchange for their support (financial, material, service), we are dealing with sponsorship. The offer for this type of donors must focus on specific proposals of promotional solutions which are presented to a potential sponsor and these should be individual in nature, taking into account the specificity of the industry and the market conditions of the sponsor. The offer must convince the potential sponsor that, for his money, he is given the opportunity to have a more effective impact than in the case of other forms of promotion (Farb 2004, Laura and Sally 2000). One group of institutions deeply believing in the sense and importance of sponsoring culture (especially high culture) are banks and insurance companies. They are fully aware that sponsorship is commercial in nature and as such it should appeal to their clients. Banks and insurance companies wish to be associated with the image of an institution which is friendly, serious, and trustworthy. According to the management of Bank Handlowy w Warszawie S.A., this image is obtained by sponsoring concert halls, concerts, opera performances, and recordings of classical music. The authorities of the Bank of Scotland agree with this approach and traditionally support two musical groups: the Scottish Chamber Orchestra and the National Youth Orchestra of Scotland (Górzyński 2000: 54). Companies presenting other areas of business also promote cultural institutions. Volvo, as a company which builds its image on the elements of durability, safety, and ecology, has been sponsoring the Gothenberg Philharmonic Orchestra since 1979. It is accepted that there is no contradiction in this, since the orchestra hall adheres to the highest values, like Volvo. It is important, therefore, that cultural institutions make a thorough analysis of the needs or preferences of a potential sponsor, as confusion in this area means that the potential sponsor may receive an unattractive offer, which it will not choose. We must also remember that when obtaining funds, a specific product is being sold. A potential sponsor must know exactly what can be purchased and for how much. For example, the Krakow Philharmonic, in exchange for monetary or in kind contributions, offers the opportunity for sponsors to have their company logo on the façade of the concert hall building, concert posters (more than 800 posters per month with the size of 70 x 100 cm), season programs (5000 copies each season), concert programs (an average of 300 copies per concert), and on the website; as well as the possibility to place company advertising leaflets in the lobby of the concert hall, available before the concert and during the intermission, to display sponsors' advertising spots on LCD screens, direct presentation of the brand during concerts, and the presence of the sponsor in the media during press conferences and other accompanying events. This package is agreed and negotiated individually, depending on the amount transferred to the concert hall.

It is very important that each element of contact, which a cultural institution tries to establish with a potential sponsor, is maintained at a level corresponding, as much as possible, to the competence of such a person in the sponsoring institution. It is also necessary to remember that when a contract is signed the sponsor becomes a client of the cultural institution and should therefore be able to participate and observe, as well as receive evidence that his interests are being well cared for. The range of services provided to the sponsor should go beyond the provisions of the agreement whenever possible (Shani and Chalasani 1992, Grzegorczyk 2003).

**132** Logos Verlag Berlin – Academic Books for Sciences and Humanities At the moment of the decision to transfer funds or make an in-kind contribution, we move on to the main phase of the relationship marketing process - a bond between the cultural institution and its donors is established. Satisfactory contacts between the cultural institution and donors result in increasing their confidence, where they may become attached to the institution and gradually climb to the top of the ―loyalty ladder‖. A necessary condition for deepening the relationship is re-offering value to these specific customers. The National Philharmonic, in seeking to strengthen ties with the most generous donors, awards its donors with statuettes of the patron of the year and the sponsor of the year during an annual gala. This form of distinction certainly has a positive impact on the image of the patron or sponsor and, at the same time, motivates those who have been honored to continue their activities and maintain the relationship. The Krakow Philharmonic, in order to deepen its relationships with patrons, donors, and sponsors, sends them invitations to concerts along with the program, offering the especially meritorious ones personal seats in the sponsors' lodge, or awards them, for example, with the ―Honorary Badge of the Philharmonic.‖

However, there are often situations when the value is rejected and the relationship is weakened or broken. It must be remembered that both the needs of the donors and the values offered by cultural institutions are dynamic. For example, this can happen because of fluctuations in the level of the quality of services or the level of the value perceived by the donor. If the distance between the offered and the desired value exceeds a critical point, this is usually followed by the rejection of the offer. Therefore, it is important to constantly monitor the process of relationship marketing and not only the achievement of the objectives of the cultural institution, but also the so-called critical moments, such as the rejection of the value offered by the artistic organization.

# **4 Developing relationships with employees**

Another important group of participants in the cultural sector are the employees of cultural institutions, in particular the artists. Just a dozen years ago, a great talent and masterful craftsmanship placed a number of stage artists as if above the laws applicable to people in other professions. Artists often took advantage of these privileges, tyrannizing mercilessly the managing bodies of operas, theaters, concert halls, impresarios, and even other artists (Kański 1974: 418, Bing 1982, Kaczyński 1992). When the famous prima donna Maria Malibran allowed herself to replace a whole scene in one opera with a fragment from the work of another composer, the unfortunate author, who was present at the show, dared not even protest. The great Adelina Patti travelled to concerts in a luxury private train with her family, servants, and a large number of her favorite dogs and birds. For her performances she collects staggering fees, and when one of the concert agents dared to mention that not even the President of the United States earned this much, Patti replied imperturbably: ―If the president is cheaper then let the president sing‖ (Kański 1974). Today, the order of things has changed and the living conditions of artists have also changed significantly. Despite the fact that the time has passed when the cultural sector was reigned over by artists like operatic prima donnas, building lasting relationships with key employees is still very important to a cultural institution.

The process of building long-term relationships (Figure 4.1), much as in the case of consumers of the artistic offer or donors, should begin with carrying out a segmentation of the institution's employees. The market success of cultural institutions is often decided by its employees, in particular the artists who often endorse the institution with which they are associated with their name. Every major cultural institution has weak, average, and excellent employees, so it is very important to determine which employees are of the highest value for the organization (Barlow 2006, Bhattacharya et al. 2008, Cheese 2008, Clayton 2007, Garrow and Hirsh 2008, Grzegorczyk and Kopeć 2013, Maxwell and Farquharson 2008, Pocztowski 2008, Ulrich 2008, Zheng et al. 2008, Szczepańska-Woszczyna and Kurowska-Pysz 2016). Managers of cultural entities do not always dedicate enough time and attention to distinguishing the best employees, and therefore, according to Luecke (2003: 134), they should at least make a list of people who:

It is also important for managers to identify the most important categories of employees. To do this, the following questions should be answered (Luecke 2003, Szczepańska-Woszczyna et al. 2015):

In cultural institutions two basic groups of employees can be distinguished: artists and organizational employees. An example of employee segmentation in cultural institutions might look like this:

Following the guidelines presented by Luecke (2003), there is no doubt that the key employees of cultural institutions are the artists, especially the big personalities, whose talent and fame often determine the market success of the cultural institution in the art market. The long-time director of the Metropolitan Opera in New York - Rudolf Bing (1982: 34) argues that working with artists is fundamentally different from working with people of all other professions. In his opinion, the administrative staff also undoubtedly have their own ambitions, but they do not necessarily have to put everything on the line every day and fight for their existence every night. Therefore, artists are exceptional - sensitive and irritable, nervous and somewhat crazy. However, we must not forget about the organizational employees (mostly managers) whose organizational skills and ingenuity often mean that the given artistic project can come to fruition.

As in the case of consumers of the artistic offer or cultural institution donors, in order to establish long-term relationships with key employees, an organization must offer them a certain value (benefit). A set of core benefits sought by artists is presented in Table 4.6.

**Table 4.6** Key benefits sought by artists

When on April 10, 1973 Maria Callas took the trouble to put on an opera in the newly rebuilt Teatro Regio in Turin for the first time, the management of the theater, in order to win over the famous prima donna so she would appear in their artistic venture, had to recruit

artists directly indicated by her, which meant that the music management by the renowned conductor Gianandrea Gavazzeni was even handed over to another great conductor, Vittorio Gui (Kaczyński 1992).

When we manage to hire the artist or manager desired by the cultural institution, we may proceed to the next phase of relationship marketing, the phase of strengthening the bonds. The cultural institution, which wants to retain the most valuable employees and create a strong artistic team, must allocate some funds for the individual professional development of artists and other key employees. It must ensure that the employee always feels that he is constantly learning something and that he is facing challenges posed by new responsibilities. An artist should feel excited about the job, and should not feel that he has stopped in his development, as this could lead to his departure from the institution (Zieliński 2005). Therefore, managers of cultural institutions should (Luecke 2003: 163):

The cultural institution will never be able to retain everyone, and should not try to do so. Some staff turnover (of artists and managers) can actually improve the condition of a cultural institution, by breathing new energy and ideas into it. Yet the turnover of valuable employees is costly, disruptive, and negatively correlated with customer satisfaction. If the employees feel connected with the cultural institution, it is more likely that they will share their positive feelings towards the institution with the clients and this, in turn, will significantly improve its image.

# **References**

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects*

Hollensen S. (2015), *Marketing management: A relationship approach*, Pearson Education, London

Kaczyński B. (1992), *Dzikie orchidee,* Orfeo Fundacja im. Bogusława Kaczyńskiego, Warszawa

Kański J. (1974), *Mistrzowie sceny operowej,* Polskie Wydawnictwo Muzyczne, Warszawa

Pocztowski A. (ed.) (2008), *Zarządzanie talentami w organizacji*, Oficyna Wolters Kluwer Polska, Warszawa

Regulations of the National Philharmonic Friends Club, http://filharmonia.pl/sponsorzy-i-partnerzy/klubprzyjaciol-filharmonii-narodowej/regulamin-klubu-przyjaciol-filharmonii-narodowej/ (accessed 21 Sep 2016)

Sargeant A. (2004), *Marketing w organizacjach nonprofit*, Oficyna Ekonomiczna, Kraków

	- between Dragons and Tigers?', Journal of Manufacturing Technology Management, Vol. 19

# **Chapter 5**

# **New media and technology in the strategic activities of cultural organizations**

# **1 Websites in the marketing activities of cultural organizations**

With the development of the Internet, not only is the number of users is increasing, but the range of solutions offered is also becoming wider. Websites set up by cultural institutions or companies in the cultural industries are often the first element which a potential customer encounters (a buyer of goods and services, a member of an organization, a volunteer, or a donor). Therefore, full use of this particular tool in the marketing activities of cultural organizations is very important. The main reasons for the active use of websites by the entities in the cultural sector are:

*New media and technology in the strategic activities of cultural organizations*

The active use of the Internet in the culture sector is also supported by the results of research conducted among customers and potential customers of the offer of cultural institutions in Euroregion Śląsk Cieszyński. 71.1% of respondents declared that they get information about the cultural institutions' offers from the Internet (Figure 5.1).

**Figure 5.1** Method of obtaining information by respondents about the cultural institutions' offer in Euroregion Śląsk Cieszyński. *Source* Wróblewski (2016: 204)

A well prepared website can have a very beneficial effect on the functioning of entities in the cultural sector. According to the surveys, it enables:

In organizations in the cultural sector, websites are opening up new communication channels (e.g. Facebook profile, YouTube channel, blog, online shop), which often give them direct access to consumers and opinion-forming centers. It should be noted, however, that a well-designed website with a profile, e.g. on Facebook, is something more than just a communication tool. It allows for a new mode of action, which requires different information flows. These, in turn, have an impact not only on communication, but also form new distribution channels and have an overall impact on the shape of the entire marketing mix (Lupa 2014: 94). The Internet also creates good opportunities for advertising by operators in the cultural sector. It is possible to advertise events in the area of culture and products offered by companies in cultural industries, both at the headquarters of the organization, as well as on the website, e.g. in an online shop (Figure 5.2).

**Figure 5.2** Online shop of the Metropolitan Museum of Art in New York. *Source* http://store.metmuseum.org/bracelets/tibetan-dragon-cuff/invt/09064411 (accessed 20 Aug 2016)

As a result of twenty-first century market demands in the cultural sector, it has become almost necessary to use online systems for the reservation and purchase of tickets (Figure 5.3). These systems are designed to increase the volume of sales, as well as reduce the costs associated with sales. In their databases, online reservation systems collect data on the organizers of exhibitions, concerts, theatrical and opera performances, film screenings, and other entities in the cultural sector. Thus the customer can choose a cultural event from a variety of offers presented in a uniform manner, often on a single website. The use of such online systems makes it possible to reserve and purchase tickets at any time and from any location, eliminating the need to personally visit the institution at a specific time. In addition, the systems send notifications by e-mail or text message (Carr 2004). These systems, in addition to improved customer service, enable the use of reporting functions, e.g. concerning the popularity of certain products offered by cultural institutions.

**Figure 5.3** A screenshot of the online shop of The Metropolitan Opera. *Source* http://www.metopera.org/ (accessed 20 Aug 2016)

Websites have become a very effective tool in building an organization during its learning process, among other things by providing often ready-made solutions to improve the operation of the organization, the implementation of innovative ideas shaping the product offered by the organization in the cultural sector, and finally by providing new knowledge about the environment of the organization as part of public relations activities, including the development of relations with journalists. Activities aimed at building good relationships with the media very often take the form of a subpage performing the function of an online press office (Figure 5.4).

**Figure 5.4** Virtual press office of the Louvre Museum in Paris. *Source* http://presse.louvre.fr/en/ (accessed 20 Aug 2016)

Communication which uses the Internet provides a wide flow of information and the possibility of communicating with customers or other organizations, also developing their flexibility (Gargiulo and Benassi 2000: 194). A look at the organization and its existing problems from different points of view develops thought processes and improves creativity and the quality of problem solving (Nemeth 1997: 55-59). Educational projects can be an example of communication on the Internet between cultural entities and the youngest consumers of the cultural offer. These are mostly special educational subpages for children which, in a very attractive way - through games, or short animated films – educate and present the cultural institution and its products, literally ―pulling in‖ the young to the world of opera, theater, a concert hall, or other cultural institution (Figure 5.5).

**Figure 5.5** ―Kidzone‖ - an educational project of the New York Philharmonic. *Source* http://www.nyphilkids.org/composition/main.phtml (accessed 3 Feb 2016)

An example of a very interesting multimedia educational project for children is the series ―Moni i Uszko‖ posted on the official website of the National Opera in Warsaw (Figure 5.6).

―Moni i Uszko‖ is a multimedia series in which young viewers are exposed in a very accessible way to a lot of important information about the opera. What to wear? How to get to the place without using GPS? Why is it better to arrive at the theater too early than too late, or what to do if your stomach starts to rumble during a show? These and many other often embarrassing questions are answered by animated characters - Moni and Uszko siblings who love the opera, but even more, they love getting in to trouble... The website features a booklet about the adventures of the characters, an animated series about their greatest blunders, as well as unique games, thanks to which young opera lovers will find that the Grand Theater can be very interesting for them as well.

**Figure 5.6** ―Moni i Uszko‖ - a multimedia series for kids from the National Opera in Warsaw. *Source* http://katila.com.pl/TeatrWielki/GraMoniUszko-wTeatrze/ (accessed 3 Feb 2016)

# **2 Social media as a tool for marketing communication of entities in the cultural sector**

The development of new media and modern information and communication technologies contributes significantly to changes in the forms of satisfying needs and the participation of individuals in social life, including in culture (Sparacino 2004, Scott 2011, Karaman et al. 2013, Barrera eta al. 2013, Jones 2016, Rialti et al. 2016). This is reflected in the development of the information society and a society based on knowledge. This state of affairs has established new opportunities for creativity, distribution, and importantly, the marketing communication of cultural institutions. This has been accompanied by a change in the role played by the consumer of culture, who through the use of modern technology and new media is no longer only a consumer, but also becomes an active participant in the processes of the creation and dissemination of works of art (Figure 5.7).

**Figure 5.7** New look at the role of a participant in culture in the process of value management. *Source* Sobocińska (2015: 139)

The presence of entities from the cultural sector in social media in the twenty-first century has therefore become very important. It offers new possibilities for communication and allows the involvement of selected segments of Internet users in interacting with the profile associated with a given cultural institution. These interactions can of course take a different character, depending on the nature of the given social media and its options (for example following a page or a profile, giving a ―like‖, or subscribing). These interactions in the cultural sector are gaining in importance each year as they combine the advantages of mass communication and direct communication, allowing for contact with many customers and potential customers at the same time, while personalizing individual messages.

# *2.1 The goals and importance of using social media in the marketing communication of cultural entities*

The cultural sector is using new media more and more, especially the Internet, which has been growing continuously for over twenty years (Figure 5.8). In an era of increasing competition and technological and technical progress, it has become a marketing tool used by virtually all organizations, including entities in the cultural sector.

**Figure 5.8** Trends in the growth of the Internet. *Source* Sznajder (2015: 208)

As shown in Figure 5.8, the number of Internet users is increasing regularly. There are also important qualitative changes which have an impact on new possibilities for the marketing communication strategy. Websites, Facebook profiles, or YouTube channels are becoming the foundation of building long-term relationships, creating the image of a cultural institution, and the primary source of information about the organization, its activities, and offer. However, a study conducted by Sobocińska (2015: 214) shows that not all managers of cultural institutions are fully aware of these facts. Although almost all of the Polish cultural institutions which participated in the study (451 institutions) have their own website (99.1%), only 77.4% of them have a Facebook profile. An even smaller proportion of the institutions get their customers involved in the promotion and sales on the Internet (54.3%). At the same time, Sobocińska's research (2015) confirms that social media are gaining in importance and are becoming a more important tool in communication with the market. The same conclusions can be drawn from the research I carried out on a group of 230 consumers of the offer of cultural institutions in the area of the Euroregion Śląsk Cieszyński in 2015 and 2016 (Wróblewski 2016). Table 5.1 presents the most important goals in the use of social media in the cultural sector, which were indicated by the surveyed managers of 451 entities in the cultural sector in Poland.

**Table 5.1** Objectives for the use of social media in various types of cultural institutions

The results do not add up to 100% because respondents were able to select three answers. *Source* Sobocińska (2015: 209)

As the main goals of using social media, those who manage the cultural institutions which were subjects of the analysis mentioned the creation of the cultural institution's image, developing relationships with consumers of culture, and advertisement of the cultural institution. This was indicated by 71.2%, 51.3% and 44.9% of the respondents, respectively.

 In recent years, the range of applications of the Internet in the marketing activities of cultural institutions has increased. This can be seen in the high percentages of Polish cultural institutions which, for at least one year but not more than 10 years, have been advertising on the Internet (71.2%), have their own website (68.5%), have a Facebook profile (62.5%), or sell cultural goods via the Internet (56.8%) (Sobocińska 2015). This should be seen as a response of entities in the cultural sector to new trends in consumer behaviors that are associated with a virtualization of the consumer's decision-making process relating to purchases in the cultural sector.

It is hard to overestimate the importance of the group of solutions which is growing on a daily basis, covering a wide range of different, often intersecting tools, based on the philosophy of Web 2.0. The most popular modern tools of this type include (Kaplan and Haenlein 2010, Kopera 2009: 422, Woodcock et al. 2011: 64, Baird et al. 2011: 4):

In cultural institutions, the most frequently used social media include profiles on Facebook, Twitter, YouTube channels, and blogs. Confirmation of this is the fact that these tools (except for blogs) have been used for years by all the theaters in Warsaw (Table 5.2).

*New media and technology in the strategic activities of cultural organizations*

The managers of Warsaw theaters are aware of the great importance of social media. Facebook profiles are the most popular among the theaters - only the Dramatic Theater of the Capital City of Warsaw does not have one. The Musical Theater ROMA has the most likes for this type of profile - more than 52,000. This theater also has the largest number of subscriptions to its YouTube channel (1,252 subscribers) and the highest (among Warsaw theaters) number of views of this channel - more than 760,000. A Twitter profile is definitely less popular among Warsaw theaters - the highest number of likes for this type of profile was achieved by the Theater of the Little Spectator (718 likes).

When using social media in the cultural sector we should be aware that they are governed by somewhat different rules than the typical marketing communication tools. The particularly important ones are: openness, transparency, informality, and equality of users. An important implication of these characteristics is a willingness for sincere dialogue with users. We must understand that interactions with the community (often anonymous) can be both positive and negative. The latter ones, criticizing the cultural institution and initiatives and subjects presented, are especially difficult. Examples include harassing comments on posts made by artists appearing on social networks, or often non-related comments on film materials posted on YouTube. In addition, there still remains the rational and substantive criticism of the material which has been published and related activities, which often cannot be simply ignored. Its existence requires the cultural institution to determine appropriate guidelines in such cases. Of course there is also the option of disabling the possibility to comment, but this takes away invaluable feedback, thanks to which the institution can improve its operations and adapt them to the needs of its customers (Kopera et al. 2014: 55- 72).

# *2.2 Segmentation of social media users in relation to cultural institutions*

Consumers of culture use new media and new technologies in varying degrees. The development of the information society and its associated civilizational changes are accompanied by the formation of new class divisions which reveal the attitudes of different social groups to new technology. In a report published in March 2014 in the *Journal of Advertising Research* researchers from universities in Ireland, the UK and Spain presented four categories of people who use the social networking profiles of different organizations and their motivation for liking content on Facebook (Wallace et al. 2014: 92-109). Research carried out on a sample of 438 individuals can be extended to the users of other social networks and these segments, after relevant modifications and additions, can be transferred to entities in the cultural sector. The characteristics of the segments are based on several factors: actual interest in the content on the page, the need to create one's own image, incentives proposed by the website (promotions, competitions etc.), the strength of social relationships, homophily (liking things similar to oneself), self-control, being a leader of opinions or searching for recommendations from others, and degree of materialism and selfesteem. The differentiated segments of Internet users who use the profiles of cultural institutions on social media are:

in events ―which are worth participating in‖, or comments left are the means to achieve this objective.

The segmentation of Internet users using the cultural institutions' social media is a clear manifestation of a focus on the market and one of the main stages in the development of online marketing strategy. The use of new technology in the management of cultural institutions is seen as a factor stimulating their further development because it means that consumer needs are met in a better way by increasing the availability of cultural goods and information about them.

# *2.3 Fan pages in the marketing activities of cultural institutions*

The aim of marketing activities which are implemented by cultural institutions through social networking sites (fan pages) is primarily cultural education, connected to improving the image of the cultural institution, shaping relationships with the consumers of culture, as well as activities that promote the institution and its offer. This form of marketing communication is used, without exception, by the most significant cultural institutions in the world - proof of this is are the fan pages of the largest and most renowned opera houses (Table 5.3).

**Table 5.3** Facebook and Twitter in the activities of the leading opera houses in the world, as of 04.02.2016

―People talking about it‖ counts all actions (events) carried out in relation to the page on the basis of which the activity on the user's profile was created. The data refer to the last seven days.

The definitive leader in terms of the number of likes, number of people talking about it, and the number of people registered on Facebook is the Sydney Opera - respectively 634,583, 14,519 and 1,498,469. Almost all the opera houses analyzed also have a Twitter account as well as a fan page on Facebook, except for the National Opera in Warsaw and the Gran Teatre del Liceu in Barcelona.

Facebook and Twitter are growing and with them the objectives of activities in social media should also change. We cannot, or at least should not, look at them in the light of the past years. If, regardless of the chosen target, a cultural institution only pays attention to the number of likes, subscriptions, or shares, the official profiles of these institutions will ultimately become meaningless. It is consequently vital that social profiles are seen as a comprehensive tool that when properly used can increase the efficiency of operations. Therefore, the quality of the content created which is built day by day is invariably the most important and actually that is the main, non-negotiable criterion, which should guide us in conducting any activities on Facebook. A social profile also very often acts as an additional contact point and a customer service point. Such a function cannot be underestimated. Thanks to a fan page, entities in the cultural sector can test the moods prevailing among their customers and fans. Fan pages can help diagnose what they particularly like or not in order to react appropriately. Cultural institutions - especially those financed from the state or local budget - will, however, need to alter the way they think when it comes to investing in this medium. Large institutions - such as the opera houses listed in Table 3 - are already well aware of this, but a significant portion of smaller, local cultural institutions have yet to learn that social media is not an addition which can be ―looked after‖ by anyone who can create their own Facebook profile.

# *2.4 The possibilities of using YouTube in the promotion of entities in the cultural sector*

Entities in the cultural sector carry out incredibly diverse, multi-directional activities for the promotion of culture in social media. Increasingly, these activities also include an official video channel on YouTube. YouTube is a web service (created in 2005), which allows users to post and play videos for free (Walotek-Ściańska 2015: 176). This channel is part of a wider, coherent set of activities and is used by the institution in various areas of its activity. Entities in the cultural sector can, for example, show trailers, excerpts of performances, concerts, interviews with artists, or can run a video blog. They can also broadcast live selected events to audiences around the world. YouTube is the ideal platform for entities in the cultural sector with an extensive number of video content, or - even better - the means for their production (e.g. opera houses, concert halls, theaters, film studios). It has an enormous power of influence, especially on young consumers of the cultural offer, of which the most renowned cultural institutions of the world are fully aware (Table 5.4).

**Table 5.4** YouTube in the activities of leading opera houses, as of 04.02.2016

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects*

Indicator 1 - Averaged number of subscriptions to the opera house's YouTube channel per month since the launch of the channel (total number of channel subscriptions divided by the number of months since the launch of the channel). Indicator 2 - Averaged number of views of the opera house's YouTube channel per month since the launch of the channel (total number of channel views divided by the number of months since the launch of the channel). Indicator 3 - Averaged number of videos uploaded to the YouTube channel by the institution per month since the launch of the channel (total number of all videos uploaded divided by the number of months since the launch of the channel).

The official YouTube channel of the Royal Opera House in London (Figure 5.9), which contains nearly 1000 videos, has been viewed over 43 million times, and the number of channel subscriptions is close to 164,000. The average monthly number of channel views since its launch by the institution in June 2007 has totaled over 415,000. The Gran Teatre del Liceu in Barcelona has the greatest number of videos posted on YouTube (on average per month since the launch of the channel).

**Figure 5.9** YouTube channel of the Royal Opera House in London. *Source* https://www.youtube.com/user/RoyalOperaHouse (accessed 20 Aug 2016)

Videos posted on YouTube can relate to various aspects of the institution, supporting the implementation of its objectives in a comprehensive manner. The materials posted can inform viewers about the activities of the organization, its offer, its projects and initiatives, thereby facilitating more informed decision-making by the persons concerned. It is also worth noting the image-enhancement aspect of this enterprise, both for the cultural entity, as well as the city or region in which it operates.

# *2.5 Blogs as a specific tool for the communication of cultural institutions with the market*

A blog as a communication tool is by assumption an honest form, resulting from the very real need to make contact with another person who is interested in the same things and cares about what the blogger has to say: individual stories, events, thoughts, meetings, passions. A blog is a form of a commentary, essay, or magazine article, but it is never simply the sum, selection, and compilation of traditional genres (Kawka 2010: 64-65). It is a text about various topics which has a variety of forms. It assumes interactivity, not anonymity or intimacy. It consists of a number of posts (messages), marked with a date and arranged chronologically. The reader sees the latest post at the top. A blog can be run in the ―traditional‖ form, or also in the form of a video blog, audio blog, micro blog, or moblog (mobile blog) (Walotek-Ściańska 2015: 180-181). This tool is also worth using by entities in the cultural sector because people are often more willing to trust another person than the institution itself. If a blogger, who should be an authority to the consumer, makes use of the offer of a specific cultural institution, then this is definitely a stronger incentive to try it yourself than an ordinary advertising message. When planning a campaign, a cultural institution should, however, specify exactly its main purpose and who it wants to reach. Only on this basis is it possible to select the author, the blog's moderator, and its target audience (a blogger is to no avail, and may even be the cause of unwanted confusion, if he is not the right person for the task). As a result, there is a very high probability that the institution's message will reach the target customer profile, those most likely interested in the topic. An additional benefit of this type of action is the ability to get feedback (statistics regarding page visits, addresses, and number of guests) as well as opinions for building the image of the cultural institution online. A well-run blog, which effectively builds a community around the institution, is a storytelling type of blog. It cannot be reduced solely to reporting what is currently taking place in the cultural institution, or presenting the offer of the cultural institution. It is rather a space where readers are offered a compelling and personal story on a given topic. An example of such a blog is ―Weissblog‖, which is run by the Director of the Baltic Opera in Gdańsk (Figure 5.10). Mr Weiss runs his blog in a very professional manner, because each post is related to the subject of the opera, but it also touches on the personal life of the author, politics, and social issues. In addition, blog posts are in the form of essays, which means that the posts read like a good novel.

**Figure 5.10** Weissblog - blog of the Baltic Opera. *Source* http://www.operabaltycka.pl/blog/ (accessed 8 Feb 2016)

A well-run blog is a great tool for building long-term relationships between a cultural institution and the consumers of its offer. It is a tool focused on communication and based on the belief that consumers are capable of promoting something well - for example, they will start to comment on posts in large numbers, and more importantly will link to them on their blogs or on social networking sites. However, blogs are rather suitable as a complementary campaign, especially where the institution is very confident of the quality of its products and is also certain that reviews of the bloggers will be positive.

# **3 Possibilities of using holograms and virtual advisors in the cultural sector**

The advanced development of technological systems brings with it the possibility of applying new solutions in the cultural sector. There is no doubt that today, in many cases, the promotion of cultural entities and their offer is possible through the use of ICT, which often eliminates the need for direct contact and increases the speed of the execution of tasks. New ideas and solutions that until recently were regarded only as scenarios for science fiction films are beginning to take the form of real activities. An example of this might be the dissemination of so-called virtual advisors or the commercialization of holograms in the cultural sector, which had previously been absorbed by the entertainment industry (Lehman and Roach 2011, Neuhofer et al. 2014, Walmsley 2016).

A virtual advisor (correspondent, presenter, assistant) is a computer program designed to conduct an intelligent conversation using text or speech. The aim of these programs is to conduct a conversation in such a manner that the user thinks they are talking to a human, not a machine. Virtual advisors don't have their own consciousness, but in a sense, they have understanding and form their answers. A virtual advisor often consists of elements such as a visualization of the character, a machine generating speech and - in the expanded version other additional elements (e.g. a speech recognition module, tracking the user's eyes) (Gołuchowski and Spyra 2014: 339-340). A virtual advisor not only accompanies the Internet user during their visit to the website, but it is also connected to the knowledge database of the cultural entity (this is usually a set of standards and responses of the virtual advisor to the given pattern) and the CRM system. It conducts a conversation using an appropriate strategy aimed at helping navigation, giving information about the cultural institution and its offer, product sales, etc. In the cultural sector we can indicate the following areas of the application of virtual advisors in an online customer service:

 The transaction area (for example, a virtual salesperson helping internet users to go through the complex process of buying tickets online for a concert at the concert hall or opera).

The Polish Cluster of Culture and Industrial Tourism is an example of an entity in the cultural sector which uses a virtual advisor (Figure 5.11).

**Figure 5.11** Virtual advisor of the Cluster Culture and Industrial Tourism screenshot. *Source* http://klasterkultury.pl/index.php?option=com\_content&view=article&id=209:wirtualny-doradcamobilnie&catid=8&Itemid=110# (accessed 30 Jan 2016)

An advisor can be installed on mobile devices: mobile phones, tablets, smartphones, etc. The application is available free of charge and its use provides easy access from anywhere to the knowledge database available to the virtual advisor.

The creation of a holographic image (avatar) according to the method developed by Dennis Gabor - a Nobel laureate - can be briefly described as follows: the object is displayed using monochromatic and consistent light so as to form a diffraction image, which interferes with a strong coherent wave forming a background; this image is fixed on a photographic plate. The Gabor method therefore consists of projecting the diffracted image of an object on a photographic plate with a background of coherent light used to produce the diffraction. The resulting photograph will contain information about the intensity of the diffracted beams, and their phase, that is, all the information needed to restore the image of the object. Then the hologram is illuminated using coherent light. A lens placed behind the hologram collects the curved beam together with the coherent wave, forming a background. Wave surfaces are reconstructed and a faithful optical image of the object is created. Holography uses the principle of interferometry in two-stage mapping (Kłóska 2015).

Holograms were used in the cultural sector for the first time in 2010, when a concert of a holographic character Hatsune-Miku was organized in Japan (Figure 5.12).

**Figure 5.12** Holographic concert of Hatsume-Miku on YouTube. *Source* http://www.polskieradio.pl/23/267/Artykul/275769,Gwiazdy-pop-przyszlosci-to-hologramy (accessed 1 Feb 2016)

Miku, an electronic creation singing with a synthesized computer voice, was accompanied by ―real‖ musicians. The performances were accompanied by the applause of thousands of fans gathered at the concert, awed by the effect. The avatar was created on the Japanese website Vocaloid where users arrange songs for fictional characters. The Japanese company Crypton Future Media decided that it would create a hologram of such a character and organize its holographic concerts.

More spectacular, however, was the Coachella festival which was organized in California in April 2012 and which featured a ―performance‖ by an avatar of Tupac Shakur, who died in 1996. After the success of this performance, Digital Domains Media Group

announced that Marilyn Monroe and Elvis Presley would also ―return‖ (Kłóska 2015). Holograms can be widely used in cultural entities, promoting events, institutions, or entire cities. It is possible to create a hologram of literally any person or fictional character, a wellknown artist, actor, or a composer. For example, in order to promote the city of Vienna in Poland Digital Emotions from Warsaw created an interactive version of the statue of Johann Strauss which gathered crowds of intrigued passers-by in Warsaw. The hologram also conducted a conversation with a hologram of Frederic Chopin (Figure 5.13).

**Figure 5.13** Hologram of the statue of Johann Strauss promoting the city of Vienna in Warsaw. *Source* http://www.digitalemotions.pl/projekty/ (accessed 1 Jan 2016)

The virtual presenter, advisor, or interlocutor, who is a holographic presentation of a person, gives the impression of a real person with whom we can talk. A hologram presents the offer of the cultural entity; it is intelligent and is able to give a precise answer to questions asked by the customer. Its advantage is that it is ―always in a good mood‖, ―willing to help‖, and has a ―permanent smile.‖ A virtual presenter never loses his patience, has no ―bad days‖, and never raises his voice, even when customers keep asking the same questions. On the contrary, rather than overwhelm customers with information, it just asks what the customer needs and gladly helps. Due to its interactivity, it attracts attention and makes a positive impression on customers. A virtual presenter presents the organization and its products in an innovative way. Such a modern and interactive form of communication enables the presentation of any product anywhere (in a museum, theater, or film première), and guarantees huge interest among the public.

The initiative to use holograms in the cultural sector is often described as highly controversial and extroverted, but not impossible. We must remember that the practical use of holograms brings many ethical dilemmas: most significantly, it increases the conflict regarding the commercial character of an organization. Having a three-dimensional technological lookalike, contemporary music bands will be able to give concerts in several places simultaneously, without the need for direct involvement in any of them. This means that for people who are still alive holograms generate passive income, but on the other hand, they are an alternative to expensive and inaccessible idols.

# **4 Virtual tours as a modern form of presentation of cultural institutions**

A virtual tour or a virtual walk is the representation of a specific location in virtual reality. It is a collection of photographs of selected spots at the location of a cultural entity which is being presented, combined using an application so that interactive browsing is possible. Virtual walks (spherical panoramas) are multiple shots combined together into a series. Their number depends on the focal length of the lens - the lower it is, the less images are required. The best results can be achieved using a ―fisheye‖ lens. Using a number of spherical panoramas, you can link them together and thus create a virtual tour. Panoramas are connected to each other via a network of dependencies. Such a network is created by adding active links to the panoramic images, which, when clicked, take the user to a specific area. A virtual tour usually consists of a map, photos, basic information about the place being presented, a description of the presented locations or exhibits, audio materials, and video files. The use of a virtual tour has the following advantages:

Virtual tours are most commonly used in museums, galleries, theaters, or concert halls. They are also used in historic buildings such as churches. For example, St Mary's Church in Krakow - one of the most beautiful and famous churches in Poland - has created a virtual walk using gigapixel technology. This allows for high quality images and a high zoom ratio, which is a great advantage in the case of buildings with such a large number of details. Many design elements such as pulpits and altars have additional descriptions, from which you can often find out more than during a visit in person (Figure 5.14).

**Figure 5.14** Virtual tour of St. Mary's Church in Krakow. *Source* http://www.pajorama.eu/wirtualnymariacki/mariacki.html#/Prezbiterium/ (accessed 21 Aug 2016)

Another example of a ―virtual tour‖ is the 3D visualization which appeared on Cultura.pl before the Chopin Competition in 2010. In connection with the 200th anniversary of the birth of Frederic Chopin, which took place in 2010, the Adam Mickiewicz Institute, in cooperation with the OGX Group (Institute of Micromechanics and Photonics), carried out a project involving the multimedia visualization of the historic Ignaz Pleyel piano on which Chopin played and worked in Paris in the last years of his life (Figure 5.15).

**Figure 5.15** Virtual piano of Chopin. *Source* http://ogx.mchtr.pw.edu.pl/images/projects\_chopin\_3.jpg (accessed 3 Feb 2016)

The 3D digitization of the object was constructed using the scanning system 3DMADMAC developed by the OGX Group. A unique feature of the presentation is a fully interactive model of the piano with a detailed representation of its geometry, texture, the movement of individual elements, and the actual sounds it makes. By using 3DVIA Virtools technology, it is possible to explore the virtual object in an individual manner, selected by the user, and to enter into various interactions with three-dimensional objects. The main features of the presentation include:

The multimedia presentation allows lovers of Chopin's music to listen to four compositions: Prelude in E minor, Op. 28 No. 4, and Prelude in A major, Op. 28 No. 7 performed by Wojciech Świtała, Etude in E major, Op. 10 No. 3 performed by Tatiana Shebanova, and Polonaise in A-flat major, Op. 53 played by Janusz Olejniczak. The visualization is available in four languages: Polish, English, Japanese, and Chinese.

# **5 Mobile applications in the cultural sector - case studies**

A mobile application is software designed for mobile devices, for example smartphones and tablets, typically distributed via online stores (e.g. Google Play, App Store, and Windows Phone Store). The uses of the applications change with the development of technology and user needs. Initially they fulfilled the function of office tools (e.g. a calendar, e-mail) or provided information (e.g. weather forecasts, stock quotes). As a result of further technological development and the popularization of smartphones and tablets, applications using, for example, geolocation (beacons) have been created and developed. A beacon is a transmitter which makes it possible to precisely locate the user within the building. It communicates wirelessly with a smartphone or tablet (within 70 meters). Through the application, content is sent to the device, which precisely matches the user's location and situational context. For many years, these applications have been used successfully as a tool for mobile marketing in various sectors, including, for several years, the cultural sector. A mobile application, supported by a system of wireless devices, can act as a guide to the museum building, deliver multimedia content, or co-create a gameplay. It can offer many unconventional features, for example, e-coupons, elements of rivalry, or navigation to the nearest museum, etc. And most importantly, it can effectively support cultural institutions in carrying out their missions, including carrying out their educational function. In Poland, the first to apply this technology was the Warsaw Neon Museum. Using the application we can access the gallery of archival images, videos, or a take a virtual tour. The MOCAK Museum of Contemporary Art in Krakow offers a mobile application to their visitors which, in conjunction with a network of beacons and QR codes, provides additional information about the painting which the visitor is standing in front of.

There is no simple, single recipe for a good mobile application. This does not mean that we have to create one blindly. It is definitely worth looking at products which have received awards from the interactive industry that have gotten users interested, as well as to reading experts' comments about their functions. Therefore, this section presents examples of selected mobile applications that can serve as an inspiration or a model to be used by entities in the cultural sector. These applications for the most part have been developed by Moiseum from Warsaw, which has won numerous awards for its solutions.

# *5.1 "DailyArt" mobile application*

DailyArt is an application designed for iPhones, iPads, and Android phones which publishes one work of art a day with a brief interesting fact about it. This is something for those who do not have time to frequently visit museums and those who would like to refresh their knowledge of art. Although this is a very simple idea, it has turned out to have a gigantic effect - the application has been downloaded by thousands of people worldwide (80,000 as of March 2014) and has gained a wide fan base. The majority of visitors come from the United States (Figure 5.16).

**Figure 5.16** DailyArt application screenshot. *Source* http://www.moiseum.com/pl/project/dailyart-aplikacjamobilna/ (accessed 30 Jan 2016)

Very good reviews of DailyArt have been published by large international technology websites, for example Next Web, TUAW, Mashable, and VentureBeat. In addition, Next Web described DailyArt as one of the 12 best educational applications of 2012. The main objective of the application is to popularize art but not in an encyclopedia version. Each image hides a story behind it - the texts published in the application tell the story of the picture and the life and passions of the artists. DailyArt is available in two versions - free and pro, which work on the iPad, and has been expanded with the option of searching for works of art and adding them to your favorites. Texts in the application are published in English.

Two years after the release of the English version of DailyArt, a version of the application was introduced in Polish. It features Polish works of art. It is available in the App Store for free and it is intended for iPhones and iPads. Thanks to DailyArt PL, we can receive a Polish work of art regularly (twice a week) with a short story about it on our iPhone or iPad. This is not, however, a typical catalogue description, but a story which can be remembered for a long time. DailyArt PL is a completely free application designed for anyone who is interested in art and culture, including students.

# *5.2 "Wilanów Live" mobile application*

Cultural institutions that have successfully implemented mobile applications include Polish museums: the Museum of King Jan III's Palace at Wilanów, the Museum of the History of Polish Jews, and the Łódź City Museum. These institutions' applications largely serve the function of a mobile guide of the facility, providing additional information on the exhibit (e.g. using a built-in QR code scanner).

The mobile application ―Wilanów Live‖ for iPhones and Android phones, created for the Museum of King Jan III's Palace at Wilanów, premièred in March 2014 (Figure 5.17).

**Figure 5.17** ―Wilanów Live‖ mobile application of the Museum of King Jan III's Palace at Wilanów. *Source* http://www.moiseum.com/pl/project/wilanow-live-aplikacja-mobilna/ (accessed 21 Aug 2016)

Logos Verlag Berlin – Academic Books for Sciences and Humanities **175** The museum has been implementing its strategy of creating mobile projects for many years. The palace can be visited using the application with an audio guide, while signs with QR codes are scattered throughout the park. The museum needed an application that would somehow link existing projects together which visitors would download immediately after arriving at Wilanów or even during the visit. The Wilanów Live application shows all the information that museum visitors would want to have before and during the visit. This is standard information about the opening hours and ticket prices, news from the life of the museum, information about the events, exhibitions and activities taking place in Wilanów, a brief guide to the ten buildings located in the park and the palace, a map of the park, as well as links to the two existing guide applications. The iOS application uses a visual novelty parallax scrolling visible on the main screen and in the guide. The application uses push notifications, so the museum can directly communicate with users. In addition, the project included App Store Optimization and advertising visuals.

# *5.3 "My Warsaw" mobile application*

In connection with the celebration of the Janusz Korczak Year, the Museum of the History of Polish Jews with the History Meeting House decided to implement a project with a mobile application ―My Warsaw‖ (iOS/Android) which is a combination of a guide to the life of Janusz Korczak and a city game (Figure 5.18).

**Figure 5.18** ―My Warsaw‖ - a mobile application, Museum of the History of Polish Jews and the History Meeting House. *Source* http://www.moiseum.com/pl/project/my-warsaw-warszawa-jest-moja-aplikacjamobilna/ (accessed 30 Jan 2016)

The application includes two thematic routes related to the life of the Old Doctor, which together have 49 points located on the map of Warsaw. Each point contains several archival photos, information about Janusz Korczak, and a quote from his works, also available as an audio version. In addition, each of the points contains one photo which can

be viewed in Augmented Reality, not previously used on such a scale in Poland. By superimposing a semi-translucent archival image, we can get as close as possible to seeing the capital during the 1930s and 1940s. The application is also a city game - some of the points are locked. To see them, you must complete the tasks presented to you at unlocked points - you have to answer a question, choose the correct answer, or take a picture in a designated place. The application has been integrated with social media (Facebook, Twitter, Foursquare).

# *5.4 Mobile application of the Łódź City Museum*

In December 2014, a project of two applications intended for interactive kiosks based on Android tablets was implemented for the Łódź City Museum. It was a big challenge because the tablets were the largest available on the market at that time in terms of the screen size of 21.5 inches. At the same time they were not very efficient devices. The applications were to deepen the visitors' knowledge of the famous Łódź composer Aleksander Tansman. One of them is a calendar of the musician's life, presented in the form of an interactive lifeline, with photos, a voice-over, and music. The application is bilingual. Further functionalities of this application include a gallery of scores, where you can take a look at scans of the original scores of Tansman's works and listen to recordings, as well as three unique scores. Looking at the score while playing back a recording, the user can keep track of which notes are being played at a given moment. The effect is a bit like playing karaoke and thanks to this, the user can consciously keep up with a complicated musical piece.

**Figure 5.19** Mobile applications from the Łódź City Museum. *Source* http://www.moiseum.com/pl/project/my-warsaw-warszawa-jest-moja-aplikacja-mobilna/ (accessed 30 Jan 2016)

The second application is a music mixer (Figure 5.19), by which the users can come to understand the basic laws of physics that govern music. By modifying Tansman's selected works, you can change the tempo, intensity, add effects, and record your own voice.

# *5.5 "Archimapa" and "Via Ducalis" mobile planners*

Mobile travel planners and guides are becoming increasingly popular (e.g. Archimapa - a mobile guide to Warsaw architecture, or Via Ducalis - the ―princely route‖ which takes the tourist on a trail of the monuments of Cieszyn Silesia, associated with the princely Piast and Habsburg dynasties), offering among other things a rich database of information about places, an events calendar and an access map.

The Archimapa application is a mobile guide to the architecture of Warsaw, which is available in Polish and English. It is based on an acclaimed series of maps published by the Warsaw Uprising Museum in printed form. Archimapa shows the seven most interesting often previously undescribed issues related to Warsaw's 20th century architecture, each of which is a thematic proposal for city exploration. With this application anyone can plan their route (sightseeing, trips, walks), finding not only information about architecture, architects, and the history of over four hundred buildings, but also details about their availability.

**Figure 5.20** ―Archimapa‖ mobile application - screenshot. *Source* http://www.moiseum.com/pl/project/aplikacje-mobilne-archimapa/ (accessed 21 Aug 2016)

Geolocation allows the users to easily find undiscovered places and move with greater freedom in the urban space. By using offline maps the application can be used without access to the Internet. Numerous illustrations facilitate the identification of the buildings and places marked on the map. The texts in the Archimapa have been written by eminent scholars and critics of Warsaw architecture, as well as writers and popularizers of knowledge about the city. Archimapa features the following texts: ―Warszawa niezaistniała 1944‖, ―Architektura Warszawy 20-lecia międzywojennego 1918-1939‖, ―Warszawski socrealizm 1949-1956‖ – Grzegorz Piątek, Jarosław Trybuś, ―Dziedzictwo architektury Warszawy 1945-1989‖ – Maria Sołtys, Marek Kuciński, ―Żydowskie dziedzictwo. Warszawa, Falenica, Otwock‖ – Beata Chomątowska, ―Ancymapa. Warszawa dla dzieci‖ – Sylwia Chutnik, ―Mozaiki warszawskie‖ – Paweł Giergoń.

―Droga Książęca - Via Ducalis‖, an application for mobile devices which is a multimedia guide to the ―princely route‖, takes the tourist on a trail of monuments associated with the princely Piast and Habsburg dynasties. The application can be downloaded for free from Google Play, available for the Android system. It is to be available soon for other systems.

The scope of the application includes monuments located in the historical part of Cieszyn Silesia, i.e. not only in Poland but also in the Czech Republic. The beautiful monuments are located in such places as Cieszyn, Czechowice-Dziedzice, Frydek-Mistek, Skoczów, or Bielsko-Biała (Figure 5.21).

**Figure 5.21** ―Droga Książęca - Via Ducalis‖ application for mobile devices – screenshot *Source* http://cieszyn.naszemiasto.pl/artykul/kolejna-aplikacja-mobilna-powstala-w-naszym powiecie,3364424,art,t,id,tm.html (accessed 11 Aug 2016)

The application is very transparent. Among the tabs such functions as a map can be found, on which all the monuments on the trail are marked. To make it easier to reach them, you can use the navigation available in the application that guides tourists to the various monuments. Each of the buildings included in the application has a short description including the most interesting information about it. In addition, the application features four routes that can be covered on foot, by bike, or car. The last tab ―events‖ contains information about the most interesting cultural events in the Cieszyn Silesia region. The application also has a QR code scanner, the option to share on social networks, and a directions module. Continuous access to the Internet is not required - it is only needed to perform updates or get driving directions. The mobile guide also has a Czech language version.

# **References**

Archimapa mobile application screenshot, http://www.moiseum.com/pl/project/aplikacje-mobilne-archimapa/ accessed 21 Aug 2016

*New media and technology in the strategic activities of cultural organizations*

http://www.polskieradio.pl/23/267/Artykul/275769,Gwiazdy-pop-przyszlosci-to-hologramy accessed 1 Feb 2016

Kidzone - an educational project of the New York Philharmonic,

http://www.nyphilkids.org/composition/main.phtml accessed 3 Feb 2016

Sparacino F. (2004), ‗Museum intelligence: using interactive technologies for effective communication and storytelling in the ―Puccini Set Designer‖ exhibit', Archives & Museum Informatics Vol. 2, pp. 1-40

Sznajder A. (2015), *Marketing sportu*, PWE, Warszawa 2015

Virtual advisor of the Cluster Culture and Industrial Tourism – screenshot,

http://klasterkultury.pl/index.php?option=com\_content&view=article&id=209:wirtualny-doradcamobilnie&catid=8&Itemid=110# accessed 30 Jan 2016

Virtual piano of Chopin, http://ogx.mchtr.pw.edu.pl/images/projects\_chopin\_3.jpg accessed 3 Feb 2016

Virtual press office of the Louvre Museum in Paris, http://presse.louvre.fr/en/ accessed 20 Aug 2016 Virtual tour of St. Mary's Church in Krakow,

http://www.pajorama.eu/wirtualnymariacki/mariacki.html#/Prezbiterium/ accessed 21 Aug 2016

Wallace E., Buil I., Chernatony L., Hogan M.J. (2014) ‗Who ―Likes‖ You...and Why? A typology of Facebook Fans', Journal of Advertising Research, Vol. 54, pp. 92–109

Walmsley B. (2016), ‗From arts marketing to audience enrichment: How digital engagement can deepen and democratize artistic exchange with audiences', Poetics, doi:10.1016/j.poetic.2016.07.001

Walotek-Ściańska K. (2015), *Teatry publiczne w województwie śląskim a social media,* Wydawnictwo Naukowe Śląsk, Katowice

Weissblog - blog of the Baltic Opera, http://www.operabaltycka.pl/blog/ accessed 8 Feb 2016

Wierenko T. (2005), Internet jako nowoczesne medium. Zeszyty Naukowe Uniwersytetu Szczecińskiego. Marketing przyszłości 414, Szczecin

Wróblewski Ł. (2016), Marketing strategiczny w sektorze kultury Euroregionu Śląsk Cieszyński. Wydawnictwo CeDeWu, Warszawa

YouTube channel of the Royal Opera House in London, https://www.youtube.com/user/RoyalOperaHouse accessed 20 Aug 2016

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects* **184** Logos Verlag Berlin – Academic Books for Sciences and Humanities

# **Summary**

The beginning of the twenty-first century has brought significant changes in the functioning of cultural institutions, but above all in the mentality of people - artists, creators, and especially the heads of arts organizations. They must confront new market realities, such as globalization, increasing competition within the sector, the wider sphere of entertainment, and the increasingly accelerated deployment of new technologies. The customers are also changing, ceasing to be merely the recipients of art and becoming the creators of the market. Both these circumstances, as well as the high competition in other spheres, the wider sphere of entertainment in general, and leisure activities has meant that a large number of cultural institutions have changed their product orientation and began to operate in accordance with market orientation. This change, however, still raises a lot of controversy and is met with opposition from many representatives of the so-called ―art world‖. The adoption of a marketoriented approach is for many heads (especially artistic directors) of cultural institutions still synonymous with the creation and dissemination of culture under the dictation of its recipients. Of course, the possibility of applying many model solutions known from source literature, i.e. strategies that are perfect for large corporations, are limited in the activities of cultural institutions. Some of them, however, can be modified and successfully used in cultural institutions. It should be remembered that the product offered by cultural institutions is very specific, so we must make sure that a balance is maintained between opinions about culture, with its inherent value and the need to protect it at all costs, and also the opinion that - like any other form of human activity - it should be profitable. Appropriate strategic or marketing management in the activities of cultural institutions can significantly contribute to the maintenance of this balance.

*Summary*

*Łukasz Wróblewski: Culture Management. Strategy and marketing aspects* **186** Logos Verlag Berlin – Academic Books for Sciences and Humanities

# **Tables and Figures**

### **Tables**

*Tables and Figures*

### **Figures**

# **Biographies**

**Łukasz Wróblewski, Ph.D.** specializes in theoretical and practical issues relating to marketing and strategic management. He has authored over 50 scientific publications, mostly concerning issues of management and marketing in cultural organizations. He has been a speaker and participant in more than one hundred scientific conferences, numerous training courses and workshops. He has also organized several symposiums and conferences on this management and marketing specialty in Poland and the Czech Republic. Currently he is lecturer of marketing and marketing management at the University of Dąbrowa Górnicza (Poland).

### **Sample Publications**

 Marketing strategiczny w sektorze kultury Euroregionu Śląsk Cieszyński (Strategic Marketing in the Cultural Sector of the Euroregion Cieszyn Silesia), Wydawnictwo CeDeWu, Warsaw 2016.

*Biography*

**Bonita M. Kolb, Ph.D.** is Emeritus Professor of Business Administration at Lycoming College, Williamsport, USA. She has also taught business classes to graduate students in cultural management, art, and music programs at the Pratt Institute in New York, the Sibelius Academy in Helsinki, and the Estonian Academy of Theater and Music in Tallinn. She has conducted marketing research with cultural institutions in both the USA and Europe such as the Brooklyn Museum of Art, Opera Ebony, the London Philharmonic Orchestra, and the BBC Proms. Currently she works as consultant and keynote speaker.

### **Sample Publications**

 Tourism Marketing for Cities and Towns: Using Social Media to Co-Create Authentic Tourism Experiences, 2nd Ed., Routledge, London, New York 2017.

Łukasz Wróblewski, Ph.D. specializes in theoretical and practical issues relating to marketing and strategic management. He has authored over 50 scientific publications, mostly concerning issues of management and marketing in cultural organizations. He has been a speaker and participant in more than one hundred scientific conferences, numerous training courses and workshops. He has also organized several symposiums and conferences on this management and marketing specialty in Poland and the Czech Republic. Currently he is lecturer of marketing and marketing management at the University of Da˛browa Górnicza (Poland).

"Dr Łukasz Wróblewski's book *Culture Management: Strategy and Marketing Aspects* clearly recognises that the pressures on the cultural sector in the 21st Century are greater than ever before. Based on robust academic research within a practical industry context, this book addresses all the key issues related to marketing strategy and planning for the cultural industries. It will be an invaluable tool for managers, policy-makers and all those working in the creative and cultural world, and will help them to develop sound strategies for the future."

*Dr Kim Lehman* • Tasmanian School of Business and Economics, University of Tasmania

"Dr Wróblewski's book explains clearly what has changed to make the use of business models necessary, even in organizations which might have resisted in the past. Globalization has resulted in a population which understands and appreciates art and culture created in other countries. While it might be agreed that this is beneficial for society, it means that cultural arbitrators within a country no longer have the authority to dictate what is accepted as culture. Managers now understand that to gain the support of the public they must explain the benefits of consuming their cultural product."

*Dr Bonita M. Kolb* • Professor Emeritus of Lycoming College in Pennsylvania

"A thoughtful and penetrating analysis of culture management addressing marketing strategies and cultural institutions. An important 'must read' book for those involved in this exciting sector."

*Prof Adrian Payne* • University of UNSW Business School, University of New South Wales

**Logos Verlag Berlin ISBN 978-3-8325-4378-5**