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Report (2007): 'Analysis of Score!'s Marketing Activity for 2005/06'

Report (2007): 'Analysis of Score!'s Marketing Activity for 2005/06'

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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

1.1

Introduction

Score! is a school of composition and a venue for the performances of new classical music, and is based in Ealing, West London. The organisation was founded in April 2005 and is managed by a voluntary Board of Directors currently made up of 8 members and a triumvirate managerial structure comprised of an Artistic manager, General manager and Marketing and Sales manager under the regulation of an Executive Manager. The main driving force behind the organisation's foundation was to fill a gap in the national curriculum for music. The art of composition is often neglected as a specialist area and music teachers in schools frequently have little experience in the subject, despite its importance within the curriculum. Score! exists to offer specialist and high quality tuition by experienced composers. Located in London Score! is based in the country's capital for new music and has therefore established strong links to the world of composition, this not only has helped the continued development of its student's talents but has also increased its reputation as a performing venue for new music. This is summarised by Score!'s mission statement of encouraging 'the creating and performing of new music'. 2.1 Marketing Activity from the Year 2005/2006

Score!'s marketing plan for the previous year is based upon two strategic theories; product development and diversification (appendix 8). Due to the multi-purpose organisation that Score! operates as (a venue and a school) both strategies are adopted. Product development is used to market the venue of the company, and product diversification to the school service offered. Figure 1 shows the marketing activity costs from the financial year 2005/2006. Score!'s marketing budget accounts for 15% of the total annual budget for the company. In the 2005/2006 financial year this gave a marketing budget of £72,500, the mechanisms used are outlined below. Direct mail was sent to to the Head of Music at all schools and colleges in the London boroughs of Brent and Ealing as well as youth and community groups within the catchment area. Advertisements were placed within the local press and specialist magazines, including the Harrow
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

Observer, The Wembley Observer, Harrow Times, The Ealing Gazette, SPNM, and MUSO. Posters were distributed to schools, conservatories and other arts organisation, and music shops. Where the materials were placed in appropriate positions, such as notice boards and front enterences. Advertisements were aired on specialist radio stations including, classic FM and local radio station Sunrise Radio. Flyers were distributed at concerts and in other arts organisations as well as being placed at the counters of selected music shops in the area. D-mail, the equivalent to direct mail but by electronic mail means, was sent to attenders of 'new music', classical music, local music performances, as well as those associated with traditional music groups.

Mechanism Print- leaflets Print- brochures Print- flyers Print- posters Advertising- press Advertising- broadcast Direct mail (including d-mail) Sales promotions Special offers Other tools GRAND TOTAL

Cost (£) 7,250 11,600 9,425 13,050 5,800 2,175 18,125 2,900 725 1,450 72,500

Results of spend (income and attendance) £4,350 (6%) £15,225 (21%) £3,760 (5%) £10,150 (14%) £5,800 (8%) £5,075 (7%) £17,400 (24%) £7,250 (10%) £2,900 (4%) £725 (1%)

FIGURE 1- Marketing Activity Costs

2.2

Market Overview

As Score! is currently at the end of its first financial year history of attendance and usage levels are inconclusive. In its first year the company attracted a total of 57 students to its schooling facility, and the company have targeted an increase of 20 students in the next financial year. Score! received £9,120 from students annual fees, £15,900 from its external workshops and £37,400 from its ticketed concerts in the year. A detailed list of these figures is shown in appendix 1. Other income sources, such as the IT suite and practice rooms provide the company with considerable income, totaling £60,853 for the 1st year. Sponsorship and grants are also a key area of income for the company raising over £17,000 for the financial year. These details are, again, outlined in appendix 1.
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

2.3

Marketing Objectives 1. To raise the profile of Score! as a school of composition 2. To have students taking weekly individual composing lessons 3. To have regular outreach workshops in state and independent Secondary school in Brent and Ealing 4. To widen the access to new music through promoting Score!'s activities 5. To introduce and maintain new audiences to new works completed by students of Score! 6. To raise the profile of Score!'s role as a concert venue for new music 7. To introduce and maintain new audiences to works by external composers

3.0

Analysis of the Marketing Activity from 2005/2006

In order to critically analyse Score!'s marketing activity it is necessary to understand the process of devising the original marketing strategy. Figure 2 shows a flow diagram which demonstrates the planning of a marketing strategy.

Situation Analysis: The Target Market

objectives

Situation Analysis: The Product

Situation Analysis: The Environment strategies

evaluation

Implementation

budgeting

FIGURE 2: PLANNING OF MARKETING COMMUNICATIONS (source: Brassington and Pettitt, 2003; p.577)

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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

3.1

The Marketing Environment

3.1.1 PEST Analysis A PEST analysis of Score! was conducted to understand the political, economic, social and technological environment in which the organisation operates. The PEST analysis enables us to identify the competitive factors, forces and trends from the environment. Appendix 2 shows the full PEST analysis from which the following implications were found. The social barriers which face potential users, especially those from ethnic minorities, could prove a disadvantage to the future operations of Score!. However, Brent and Ealing local authorities seem to have recognised these threats to the arts in their retrospective areas and are working towards including all local residents in arts activities, which subsequently will prove a huge benefit in the long term operations of the company. 3.1.2 SWOT Analysis Figure 3 shows the SWOT analysis which was conducted for Score!. It shows the position at which the company currently stands and potential position it could achieve in the future.
FIGURE 3: SWOT ANALYSIS OF SCORE!
● ●

● ● ● ● ● ●

STRENGTHS Premises consist of a modern building Excellent location, in close proximity to Ealing Broadway London Underground station, and a wide range of schools Individual tuition completed works are performed by competent musicians state of the art equipment large area for performances 5 sound-proof recording studios No other organisation provides the same services OPPORTUNITIES

WEAKNESSES As no other organisation provide the same services there is no guidance or precedent to follow location is in London which is an expensive city and isolates it from the rest of the UK

THREATS
● ● ● ●
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● ● ● ●

Encouraging and promoting the art of composition amoung people of all ages funding centre of excellence national recognised qualifications

may be perceived as an elitist service perceived as being expensive music teachers, already established in schools, may feel threatened negative perceptions of 'new music'

Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

In the future, in order to fulfill its aims and objectives, Score! must work to overcome the threats and weaknesses that are identified. To do this they must minimise the risk of these factors and maximise their already implemented strengths and emphasising the potential opportunities for growth in the sector. 3.2 The Target Market

It is essential that Score! target the right audiences for the entirety of its marketing activity, otherwise the activity may well not be as effective as it should be. The target audiences are those individuals that should be targeted in order to match the company's overall objectives. In order to form the market segments a market segment audit was conducted, which is shown in appendix 3. When Score!'s facilities are being used as a venue it is important to understand audiences and their views. Diffusion theory (Rogers, 1962) is a key concept in understanding how the potential audiences first enter the market, depending on their attitude to innovation and new products, and their willingness to take risks. Customers can thus be classified as innovators, early adopters, early majority, late majority and laggards (Brassington and Pettitt, 2005). The marketer can use these concepts to consider the factors when developing products and their marketing mixes. Market research can help to define the compatibility and to determine the most attractive relative advantage. Diffusion theory is explained fully in appendix 4. It is therefore essential that the early majority and late majority are effectively communicated to, both the benefits of the schooling facility at Score! and the potential shows that are shown at the location. The diffusion process is closely linked
FIGURE 4: CUSTOMERS IN RELATION TO THE DIFFUSION PROCESS source: http://www2.gsu.edu/~wwwitr/docs/diffusion/

to the product lifecycle (appendix 4) of the services offered, and therefore it is a necessity to continually change the marketing
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

activities to match the product lifecycle and its related audience. If this is effectively followed then the products and services are more likely to attract more customers and in turn raise the profile, and profits, of the organisation. 3.3 Buyer Behaviour

It is important for the marketing team to understand the way that consumers react to messages. Score! follow the theory outlined by Strong's (1925) AIDA model, shown in figure 5. As a new organisation offering new services, the awareness raising stage is essential to the
cognitive

Awareness

success of the company. The cognitive stage of the Strong Theory is strongly linked to the promotion stage of the promotional stage of the marketing mix. As aforementioned Score! used several marketing tools to raise the awareness of the services, such as direct mail, broadcast and press advertising. The affective stage of the process arises when an interest is seen and attitude change is developed. It is important to maintain communication with the audiences in this stage to increase the desire to attend

Interest
affective

Desire
behaviour

Action

FIGURE 5: Strong's Theory (1925)

Score!'s services. Score!'s success in its first year is based upon the development of this stage, with posters and flyering used to provide the target market with further information as to the benefits of the services offered. 3.4 The Marketing Mix (McCarthy, 1994)

3.4.1 Product
“a product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile or satisfying that they are prepared to exchange money, patronage or some other unit of value in order to acquire it” (Brassington and Pettitt, 2003; p.268)
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

As has been mentioned previous, the services that Score! offer its customers are somewhat innovative, with no other organisation within the catchment area offering a similar educational facility. The company offers a service rather than a product, and as such is an intangible service. The product mix that Score! offers is shown in figure 6.

SCORE! Venue School of composition

The product aspects, full product mix, and Score!'s products position on the Boston Box are noted in Appendix 7.
FIGURE 6: PRODUCT MIX OF SCORE!

School of Composition During the year Score! offered the following package to its customers for an annual fee of £160. Individual tuition, the company offer students hour-long tuition in the art of composition to those aged 11-19 years old each week. Group workshops take place each week on Saturdays, and are led by one composer and given in specific age groups. Guest speakers from the world of composition are invited to give talks on a specific area of interest in an area of the facility which holds 50 people. Outreach programmes provide at least 15 annual day workshops per annum in secondary schools within the specific target areas, during term time. There are also 6 weekend workshops annually within the target area. As a venue for performance Score! have offered the following events over the past year; pupil's showcase concerts, where students of Score! write and perform their own work to an audience, the concerts are advertised to the public. There are also concerts for external works, which take place on the first Thursday of each month, and are presented in the performing space of the facility which can host 200-500 people. Concerts from the previous year included 'Classical Infused with Reggae' and 'Indian Film Music'. Positioning of the products is essential to Score!'s success in the market, in order to evaluate the positioning of the brand a positioning map was conducted, shown in figure 7.
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing
KEY: A- Philharmonic Orchestra at Royal Institute of British Architects B- young composers at a drama theatre C- works at Wigmore Hall D- Lady Blacksmith Mambazo at the Barbican Centre E- Concert at Wembley Arena F- concert at St Barnabus Church, Ealing G- class at the Royal Academy of music H- 'Stomp' at the Vaudeville Theatre I- Guys and Dolls at the Piccadilly theatre J- production at Questor's theatre Ealing K- Chior at Brent Town Hall

highbrow

C G D

A

SCORE!
classical

contemporary

I F J
lowbrow

H K B E
FIGURE 7: SCORE!'s POSITIONING AS A VENUE

A

B C D F

highbrow

J K G I E SCORE! H
lowbrow contemporary

classical

KEY: A- The National Youth Orchestra B- The National Youth Choir C- Ealing Youth Orchestra D- Harrow Youth Orchestra E- Brent Youth Wind Band F- Brent Youth String Orchestra G- Ealing Junior School of Music H- Brent Youth Music Service I- St. Augustines Prior Saturday School of music J- The Royal College of Music Junior Orchestra K- The Suzuki School of Music

FIGURE 8: SCORE!'s POSITIONING AS A SCHOOL

Score! has successfully managed to position themselves away from other organisations as an education facility. Score!'s desired image is that they are an 'inspiring, high quality experience that will make you proud' and that they offer 'cutting edge and inclusive' services to their customers. The fact that they are positioned on their own in the market means that they are in an ideal position to maximise their brand. Score!'s position in the market also enable it to fulfill its marketing objectives, outlined earlier, in that they are in a favourable position to widen the access to new music, and also in an excellent position to raise their profile as a school of composition, as they have very little competition. Figure 8 also shows that there are further gaps in the education music marketplace.
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

Score!'s positioning as a venue shows that it is neither highbrow nor lowbrow, as shown in figure 7. Again, no other organisation is located with Score!, it is therefore in a good position to fulfill its marketing strategy to create a positive perception of new music. There could be potential competiton from organisations that are considered contemporary, but are perceived as having less highbrow programmes, such as Wembley Arena and Earls Court Olympia. 3.4.2 Pricing Strategies “Price impacts upon financial performance and has important influence on buyers' perceptions and the positioning of the brand” (Vignali, 2001). Score! operates a standard ticket pricing scheme with a concessionary option for students, pensioners and those receiving job seekers allowance. This psychological pricing strategy appeals to the vast majority and eliminates any superiority, or inferiority, issues that may arise. Figure 9 shows the pricing strategy in detailed form, to which Score! operated in the previous year.

Year 2005/2006 Individual tuition in composition - £55 (per annum) Group workshops - £55 (per annum) Guest speakers - £55 (per annum) Outreach workshops - £25 (per participant) Library collection - £1.50 (sheet music), £2 (audio CD) Practice rooms - £25 (per hour) IT Suite - £2 (per hour) Recording studio - £180 (8 hours)/£90 (4 hours) Concert tickets - £8/ £6 concessions

FIGURE 9: PRICING AT SCORE!

Score! do not hold any long term concerts or performances, hence ticket pricing on this front is fairly set in stone. The company offer concessions of £6 to certain publics, outline previously. There is a wider range of pricing for the educational services that Score! offer. Much of the pricing strategy that Score! incorporate is dependent upon the demand for its services, rather than being price monitoring and changing prices in line with competitors, this is due to the lack of competition
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

within the specific field. If the demand is low for the products then the price will have to drop and vice versa. Odd pricing produces greater demand than a slightly higher price (Gendall et al, 1997). Gendall (1997) produced a study which shows that psychological pricing can produce a stepped demand curve shown in figure 10.
price £55 £45 £35

quanitiy FIGURE 10: STEPPED DEMAND CURVE

3.4.3 Promotion
“...much of the problem...lies with the way it is marketed...the risk adverse attitude of many programmers and promoters contributes to an environment in which classical music marketers rarely make the most of opportunities presented by contemporary work... we regularly come up against the problem, having convinced an artistic director or a venue to take on a particular work, of their marketing staff not knowing how to sell it to the public” (Stewart, 2006; p.21).

The promotion stage of the marketing mix is essentially the creative section of the whole marketing campaign, and is derived after the marketer has a sound understanding of their publics, messages and overall objectives. The promotional activities that Score! fulfilled in the previous year are outlined in section 2.1.
Advertising Personal Selling

Sales Promotion

Direct Marketing

The Promotional Mix Public Relations

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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

Figure 11 highlights the areas of Score!'s promotional activity which are deemed most useful, based upon their effectiveness and the ability to control the messages which are being sent to the audiences.

High

Posters Advertising in local press Advertising on local radio Advertising on specialist radio

Direct M ail D-M ail Advertising in specialist publications Direct selling through schools Season Brochure

Ability to control the message

Bulk distribution of flyers Free CD promotion

M edia Coverage

M edia Promotions

Low

Ability to measure effectiveness

High

FIGURE 11: PROMOTIONAL ACTIVITY MAP

3.4.4 Place Appendix 5 shows in detail the issues that can prevent the selected market segments, outlined earlier, from attending activities at Score!. Score! has made attempts to ensure there is maximum accessibility to the facilities, these activities, and distribution outlets, are shown in appendix 5. 3.5 Competitor Mapping

It is essential, for any company, to be aware of it's competitors, to maintain a competitive advantage over them. Figure 11 shows a list of the organisations that are in direct competition with Score!, and also shows those organisations, that could potentially have an advantage over the company.
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

Direct Competitors The Barbican Arts Centre Brent Music Service Questor's Theatre The Guildhall College of Music and Drama The Royal Academy of Music The Royal College of Music Trinity College of Music

Potential Competitors Brent Youth Wind Band Brent Youth String Orchestra Ealing Youth Choir Ealing Youth Orchestra Harrow Youth Orchestra

FIGURE 11: SCORE!'s COMPETITIORS

Despite the potential competitors targeting the same groups of people as Score!, they are targeting individuals with different interests hence it could be more effective if Score! targeted these organisations to form strategic collaborations. Appendix 6 maps these competitors by the extent to which they offer similar products to similar audiences that Score! do. 3.6 Evaluation

The most important part of Score!'s marketing strategy is that they have managed to position themselves away from potential competitors in the market place, which means that they have a distinct competitive advantage over other organisations offering similar services. Score! Achieve this competitive advantage based upon a theory of differentiation (Porter, 1985). By being unique in the market the company is able to market it self as an educational facility and also as a venue. The added benefits of this show in the financial figures of the company, which are excellent for a small organisation in its first year. Score! does not have an active pricing strategy due to the nature of its services, it employs a psychological pricing policy which is aimed at optimising accessibility by charging affordable prices. The marketing objectives are mostly fulfilled through the policies outlined in this report. It is
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Leeds Metropolitan University BA(Hons) Public Relations, Arts Marketing

difficult to judge whether it has been a successful year for the company as it is the first year of operation, however, all the aims were met, in each category of the business, which suggests that the year was a success. The marketing activity, although very basic, was successful it meeting the objectives outlined. In the future the marketing strategies may have to change to accommodate new competitors into the industry, due to the barriers to entry (Porter, 1979) being small. The marketing activity may have to be much more aggressive in targeting the market segments outlined within the report, in order to increase the number of students attending classes, and also to maintain high levels of attendees at events held within the facility. The future success of the company hinges on culture within the organisation, and whether the marketing managers ambitions match those of the organisations. However, at present the company's strategy is positive and has been successful in achieving the goals and aims. Targeting the right audiences is an essential part of any marketing strategy, for it to be successful. I feel that Score! has done extremely well in attracting a wide, diverse, range of people to both the schooling facilities, and more significantly to event held at the venue. The social diversity, outlined earlier, in Brent and Ealing could pose a huge problem to the company, the fact that Score! offer a multi-cultural range of performances shows that they are aware of this problem and have made effort to overcome the problem, the printing of literature in other languages is also a major step in overcoming these issues. At present, however, I believe they are attracting only the innovators and early adoptors (Rogers, 1962) to performances, hence only a small proportion of the market. I believe that for the future success of the company, marketing activity focusing on the early and late majority (Rogers, 1962) must be initiated, this will subsequently bring in a larger, and more diverse crowd. Pricing strategy and the placement of advertisements are two areas where the marketing department will have to change strategies, perhaps offering lower prices, or offering promotional discounts. All in all, I feel the strategy has been effective and has most importantly fulfilled its objectives. 4.1 Recommendations for the future

The recommendations for the the coming 12 months are outlined in a marketing plan which has been created with the view of continuing, and improving, the marketing objectives from the past year. This marketing plan is shown in appendix 9.
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