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 GABRIELE TROILO

MARKETING IN CREATIVE INDUSTRIES

VALUE, EXPERIENCE AND CREATIVITY
CONTENTS

List of figures VIII PART 111CUSTOMER VALUE CREATION

List of tables x 7 IDENTIFYING TARGET MARKETS AND
Preface XI CREATING VALUE PROPOSITIONS 175
Acknowledgements XIII 8 CREATING VALUE WITH THE
PRODUCT, THE BRAND,
PART I THE ROLE OF MARKETING IN
AND THE PRICE 217
CREATIVE INDUSTRIES
PART IV CUSTOMER VALUE DELIVERY
1 CREATIVE INDUSTRIES 3
9 DELIVERING VALUE TO TH E
2 A CUSTOM ER-CEN TRIC MARKETING
CUSTOM ER: MANAGING A
MODEL FOR CREATIVE INDUSTRIES 21
MULTI-MEDIA, MULTI-CHANNEL
PART II CUSTOMER VALUE ANALYSIS
ENVIRONMEN T 275
3 THE CONSUM ER SIDE OF TH E
10 MANAGING CUSTOMER VALU E OVER
MARKET: THE CONSUMPTION
TIME: CUSTOMER RELATIONSHIP
EXPERIENCE 53 MANAGEMENT 312
4 THE CONSUM ER SIDE OF TH E
PART V ORGANIZATIONAL ISSUES
MARKET: THE OTHER STAGES OF
11 INTEGRATING MARKETING
THE EXPERIENCE 78
AND CREATIVITY 335
5 THE BUSINESS SIDE OF
THE MARKET 113 Notes 350
6 METHODS FOR DEVELOPING Bibliography 355
MARKET KNOWLEDGE 137 Index 365

VII
LIST OF FIGURES

1.1 The distinguishing features of creative 7 .3 An example of the calculation for

industries 11 the market potential gap 185
2.1 The value network in the music industry 24 7 .4 Comparison between a priori and a
2.2 Potential causes of misalignment posteriori segmentation: a fictitious
between organization and market 35 example in the performing arts 195
2.3 Forms of consumer participation in 7 .5 Differential impact of benefits on
co-production processes 38 customer satisfaction 204
2.4 The value network in the tecnobrega sector 49 7 .6 An example of a snakeplot 208
3.1 Experience-value- satisfaction 7 .7 An example of a perceptual map 209
relationships 63 7 .8 An example of a preference map 210
3.2 A classification of experiences 70 7 .9 Superimposing a perception map and
3.3 An interpretative model of aesthetic a preference map 210
experience 71 7 .10 Evolutionary paths for managing a
4.1 The determinants of expected value 79 value proposition 212
4.2 The means-end chains for professional 7 .11 The MTV Italy network 215
wrestling on TV 93 8 .1 Different strategies for managing the
4.3 Determinants of the complexity of the product lifecycle 221
purchase experience 104 8 .2 The importance- performance matrix 231
4.4 A summary of the different stages of 8 .3 The relationships between the brand
consumer experience 108 identity-positioning-image 241
5.1 Revenues of the top 20 European football 8 .4 Types of brand associations 242
clubs (2012/2013, ml/€) 116 8 .5 Managing brand positioning
5.2 The types of value of creative products throughout its lifecycle 243
for corporate clients 118 8 .6 The demand curve 250
5.3 Audiences of main UK newspapers 119 8 .7 The curve for total revenues 250
5.4 Total monthly reach of main UK 8 .8 Price thresholds along the demand
newspapers (2006- 2012) 120 curve 252
5.5 The transfer of meaning in the 8 .9 Example of an actual demand curve 256
endorsement process 128 8 .10 Example of demand-backward
5.6 Levels and goals of Vodafone Group's priong 261
sponsorship strategy 134 8 .11 Shakhtar Donetsk: Main revenue
6.1 The circular process of market sources for 2010- 2013 266
knowledge generation 139 8 .12 Shakhtar Donetsk: The team logo (2006) 268
6.2 Different data types in a marketing 8 .13 Shakhtar Donetsk: Lettering options 269
information system 140 8 .14 Shakhtar Donetsk: The new logo 270
6.3 Stages of the marketing research process 142 8 .15 Shakhtar Donetsk: The Donbass
6.4 Primary sampling methods 156 Arena logo 271
7.1 Strategic marketing decisions in the 9 .1 Multi-tasking among the affluent in
value creation process 176 the US 278
7.2 Potential market, current market, and an 9 .2 Major touchpoints 280
organization's market 181 9 .3 Promotional mechanics 282

V I II
 List of Figures IX

9.4 Major retail distr ibution formats 284 9 .11 Piccolo Teatro: An image from
9.5 Stages in the communication process 290 The Legend of the White Snake 311
9.6 A sociogram representing a social 10.1 The vir tuous circle of satisfaction
network 294 from the customer's viewpoint 314
9.7 Types of channels 297 10.2 The double vir tuous circle of
9.8 Multi-channel and multi-media
integration during the stages of
. . .
custom er satisfaction from the
.
organization s perspective 316
customer exper ience 305 10.3 The dual strategy of a creative
9.9 Piccolo Teatro: The system of digital organization 316
touchpoints 308 10.4 The elem ents of relationship s tatus 320
9.10 Piccolo Teatro: An example of 11.1 Integration mechanisms 338
advertising for Odyssey 309 11.2 SWOT matrices 345
LIST OF TABLES

3.1 Types of consumer sacrifices 61 7.4 MUVE: Number of tickets issued

3.2 Some examples of the different types of in 2011 per segment 199
value generated by individual donations 69 7.5 MUVE: The potential of the student
4.1 The AIO Model 83 segment, broken down by scholastic level 199
4.2 Types of exter nal information sources 89 7.6 Cr iter ia for segment att ractiveness 20 1
4.3 An example of the compensatory 8.1 Product P&L: a fictitious example 232
selection process 96 8.2 Attractiveness and market position
4.4 An example of consumer assessment indicators 236
through cutoffs 97 9.1 Contents of a communication brief 292
7.1 A relative market share calculation 185 11.1 Factors that constitute the
7.2 A breakdown of market share 186 macro-environment 342
7.3 The basic principles of segmentation:
individual characteristics 192

x
PREFACE
Many scholars around the globe have been researching
marketing in creative industr ies for years. Despite this,
compared to research in other fields of the business
world, these efforts are relatively limited. In particular,
most are devoted to specific sectors within the broader
set of creative industries (movies, music, performing
arts, tourism, heritage, and the like), giving emphasis
to the specificity of each one. However, far fewer stud·
ies consider the similarities across those industr ies and
leverage these to identify and recom mend appropriate
managerial models. This is the main impulse that
drove m e to write this book.
I've been researching, teaching, and consulting in
the field of marketing in creative industr ies for many
years now. My aim here is to provide a marketing
model that is effective given the specificities of the
organizations t hat I've known throughout the years,
operating in industries that can be defin ed as creative,
whichever they may be.
The three key words of this model are: value, experi·
ence, and creativity. In fact , my point is that marketing
in creative industries deals with creating customer value
through the experience of creativity. In other words,
the main objective of marketing in these industries is
to transform the creativity of creative producers into an
experience for customers, so that this experience is of
some value for them . The link between creativity, cus·
tamer experience, and custom er value is what informs
and distinguishes a marketing model that is effective for
those industries from others for other industries.
Specifically, this book is divided into five parts. The
first is devoted to delineating the borders of those indus·
tries that I consider creative and providing an overview
of the marketing model detailed in the rest of the book.
In drawing these borders my ambition is not to play
an in-out game. On the con trary, what I wish to do is
to provide a map of industry characteristics that are so
peculiar as to require a specific marketing m odel, and
then apply that map to suggest which industries share
those characteristics: the final list is what I consider
creative industries.
Then, I will describe what to me is a customer·
centric model of marketing, that is to say, a managerial
model that places at its center the customer and his
or her satisfaction as the beacon for all organizational
decisions. I will rely on a contemporary view of mar·
keting that considers customer value management as
the specific job of marketing people within an organi·
zation, and detail the four major processes that are
their responsibility: custom er value analysis, custom er
value creation, custom er value delivery, and custom er
relationship managem ent.
Customer value analysis will be the them e explored
in the second part. In particular, I will separate the
consumer side of the market of organizations operating
in creative industries (the C·side) from the part made
up of business customers (the B·side). In fact, produc·
ers create value propositions that are of value for both
end consumers and corporate customers. The for mer
get value from the consumption of these value proposi·
tions, the latter from their inclusion in productive and
com municative processes. For this reason, I decided to
distinguish the different stages of the consumer expe·
rience - through which end consumers extract value
from creative value propositions - from the productive
and communicative processes that are specific to how
business customers use creative products.
The second part concludes with a description of the
most typical marketing research methods and tools
that creative organizations can use for their custom er
value analysis processes.
The third part is devoted to the customer value crea·
tion process. Basically, producers creat e value for their
customers (end consumers or businesses) by realizing a
value proposition that is aligned with the expectations
of the segments of the market they decide to serve. In
other words, an organization must first identify and
select the portions of the market it wan ts to serve, then
design a value proposition that is adequate to satisfy
their needs and desires, and finally realize those propo·
sitions in such a way that customers will prefer them
over alternative ones.
These processes are the realm of strategic market·
ing, which consists of market segmen tation, targeting,
designing propositions, and positioning them into the
market. I will then focus on the three main determinants
XI
XII Preface
of customer value: the product, the brand, and the price,
seeing that value also has a negative component and the
price constitutes the most evident part of it.
Part four is about value delivery. Once the organiza·
tion has created value propositions it has to make
them available - in terms of knowledge and physical
access - to target customers. For creative organizations
today this m eans leveraging a multi-media and multi·
channel environ ment, which requires new mindsets
and n ew competences, in particular the capacity to
share some control over owned processes and activities
with other par ties.
The digital world offers organizations many more
oppor tunities than in the past. However, since that
world is character ized by features that radically change
the way people and organizations share information,
com municate and socialize, a multi-m edia and multi·
channel environm ent may also be rife with threats for
organizations that try to operate using old paradigms.
In this part I will give emphasis to both oppor tunities
and threats.
Creating value propositions for different customer
segments and making them available is not inde·
pendent from the status of the relationship that the
organization has with differen t customers. In every
mom ent of its life, the organization will serve some
customers for the firs t tim e, together with others who
are frequent or loyal customers. This is what customer
relationship managem ent is all about: managing rela·
tions with customers while taking into account the
different stages of these relations, which calls for dif·
ferent decisions. I will conclude part four of the book
by highlighting the m ost importan t ones.
Th e final part is a chapter devoted to the relationship
between Marketing and Creativity, terms that I use to
name the unit/s responsible for marketing decisions
and activities and unit/s responsible for creative - and
often productive - on es. I think this topic is one of the
most fascinating in the context of marketing in crea·
tive industries. In fact, in these industries creativity is
the econ omic engine, and it lies in the domain of taJ.
ented people who are very sensitive to their creativity,
and the judgment and approval of people like them ,
som etimes m ore than that of custom ers.
For this reason the role of marketeers is a very dif-
ficult and peculiar one: always keeping the creative tal·
ent of those people aligned with the desires and wishes
of customers. This requires not only a healthy dose of
personal skills and capabilities, but also organizational
structures and systems that make this task m ore
efficient and effective.
To conclude, a couple of editorial choices. I strongly
believe that research is only useful when combined
with practice and vice versa (or, if you wish, it's not
useful when one of the two is missing). For this rea-
son, in writing the book I took both perspectives under
proper consideration. The readers I had in mind were
scholars, students, and managers: people who research,
work in, or are interested in marketing in creative
industr ies.
My main m essage to them is that managerial
practice will be strengthened if it is anchored to
solid theoretical learning. For this reason the book is
crowded with mentions of solid research work (which
also make a rich bibliography at the end) and interest·
ing case histories. The former are dispersed throughout
the chapters with syst ematic references, and snapshots
of specific topics identified by what I called Research
Focus (research boxes). The same is true for the second,
with examples and real-life profiles that I called Case
History (case boxes). Furthermore, all chapters (with
the exception of the last one) conclude with a major
case study, which represents an example of effective
management of one of the topics covered in that
chapter. I have included cases from different industries
and different countries to illustrate the richness of best
practices that can be found in those industries.
Finally, since creative industries host various kind
of actors (be they for-profit or non-profit, individual or
organizational, local and global, or other) I have decided
to use the term 'organization' throughout the book to
mean a generic actor operating in those industries. In
fact, as I will point out very early in the book, in most
cases I will take the perspective of an organizational
actor (and its managers) rather than an individual one,
although I will frequently m ention the case of indi-
vidual creative actors and their activities in the various
chapters.
ACKNOWLEDGEMENTS
Trus book is a typical example of a creative product.
As I will assert in the following chapters, the value of
a creative product is the product of the effor t of a net-
work of actors. Therefore, although this book has one
single author, the knowledge included in it is far from
individual. Writing it has truly been a huge effort that
could not have been under taken without the help of
many others whom I sincerely want to thank now that
trus effor t has been concluded.
A generic but genuinely wholehearted thanks goes to
my students in the 'Marketing in Creative Industries'
course that I've taught at Universita L. Bocconi over
the last ten years. They have been - and still are! - a
continual stimulus to deeper investigation, sharper
clarification, and above all, systematic questioning of
long-held conventional wisdom. This book includes
reflections stimulated by many years of interactions
with them .
To two of them I'm particularly grateful. Both have
decided to proceed with an academic career, and now
they are involved in a Ph .D. program. Maria Cristina Cito
and Elena Fumagalli helped me a great deal with some
of the case histories, with the bibliography, and above
all with hours of discussions about interesting topics
regarding creative industries and their actors. Some of
the issues raised and covered in this book are products
of challenging discussions with Cristina and Elena.
I also owe so much to Marilia Sciulli, Davide Neri
and Elisa Moro. Marilia did research on tango danc-
ers for her graduate dissertation, which we worked
on together to write one of the major case studies
reported in the book. The same is true for Davide, who
helped me with the 'Magic: The Gathering' case study,
which he initially investigated in his graduate disserta·
tion. Finally, Elisa helped me with the data analysis
of box office revenues used in some of the chapters,
saving m e a lot of time in finding the right sources and
the most interesting data.
For some of the editorial work I could rely on the pre·
cious help of Chiara Solerio, a research assistant at my
department. Without Cruara all the time needed to write
the book would have been much longer. She made an
invaluable contribution to the revision of some chapters,
the bibliography, and many of the figures included in the
book.
Th roughout the years I had the chance to meet,
work and share mutual knowledge with many brilliant
managers in var ious organizations operating in crea-
tive industries. It would be too long a list to mention
them all. Still, this book is r ich with case studies, short
and long. The majority of them could only have been
written with the gracious collaboration of many man-
agers working in interesting organizations in various
industries and countries. I interviewed all of them ,
some of them wrote parts of the cases and all revised
their own . Without their time, open-mindedness, and
genuine appreciation for my research work these cases
simply would not be such an interesting part of the
book. Listing their names below, and thanking each of
them for the great help they gave me, is my personal
way of thanking all the managers from whom I learned
so much over the years:
Andrea Beloni, Head of Digital Com munication,
Events & Sponsorship, Vodafone Italy; Almudena
Bermejo Sanchez, Director of Espacio Fundaci6n
Telefonica, Madrid; Silvia Caselli, Ex Chief Marketing
Officer, Feltrinelli Group; Monica da Cor ta Fumei,
Marketing and Com munication Director, Fondazione
Musei Civici Ven ezia; Antonella Di Lazzaro, Ex Head of
Brand Management, MTV Italy; Andrea Duilio, Head
of Marketing, Consumer Division, Vodafone Italy;
Paola Giunti, Com munication and Public Relations
Director, Teatro Regio di Torino; Lidl Grimaldi,
Head of Consulting, Interbrand Italy; Lanfranco
Licauli, Marketing and Communication Director,
Piccolo Teatro di Milano; Manuela Meunier, Head of
Marketing Research, Musee du quai Branly, Paris; Pepa
Octavio de Toledo, Marketing and Com munication
Director, Matadero Madrid; Pierluigi Parnofiello,
Ex Brand Manager, Wizard of the Coast Europe;
Manfredi Ricca, Managing Director, Interbrand Italy;
Sue Wilkinson, Director of Suppor ter Development,
National Trust, UK; Inna Khmyzova, Marketing
Director, Shakhtar Donetsk, Ukraine.
I wan t to wholeheartedly than k the editorial team
at Palgrave Macmillan with whom I have worked. All
XIII
XIV Acknowledgements
authors know how important t he job of an editor ial
team is . I'm truly t hankful to min e: Martin Drewe,
Ceri Griffith, Rachel Bridgewater, Ursula Gavin ,
Jenny Hindley, Holly Rutter, for their patjence, sup·
port, and advice along the very long process that gave
life to this book. This is a team I'd Uke very m uch to
work with again, alt hough I'm not sure if they feel the
same way!
Th ere are three people who had a special role in this
book. Imma Turbau opened the doors to me of the rich
cultural world of Spain, with her broad knowledge and
long contact list. Im ma is a generous person who is able
to combine her creative talent with a deep understand·
ing of marketing, and her help was indispensible a great
deal in identifying interesting case histories to share
with the readers of this book. Next, Daruela Leone, who
suppor ted me in many ways. First, by providing me
with a long list of contacts in various European creative
organizations, only a few of which, un fortunately, have
been used in the book; then, recommending interest·
ing case histories identified on the basis of her innate
curiosity, many of them, fortunately, included in this
book; and most importantly, sharing tons of optimism
and smiles, fantastic fuel for creativity! Last is Joanne
Sykes. Jo is a brilliant manager with a deep knowledge
of the marketing world, who helped me navigate the
amazing and hyper-dynamic UK media and cultural
system. Most of the UK data and cases come from her
contacts and suggestions. To Imma, Daniela, and Jo
lots of sincere thanks.
The last person that I want to thank is J ill Connelly,
who translated the book into English. J ill is a perfect
example of how a value relation functions. After
years of joint work, J ill is much more than a transla·
tor. She is a personal trainer and a coach. She helped
me not only in transfor ming the book in a different
language, but in making my thoughts sharper, bolder,
and clearer. I owe Jill not only days and days of patient
Skype calls for the revisions of the chapters, but most
importantly, her persistence in encouraging me to
resist any temptation to bypass the difficulties of the
task, her innate optimism, and many laughs about the
cultural divers ity of the US and Italy. I'm the author of
the book, but without Jill the value of this book would
have been much more limited.
Finally, the value of the network lies in its ties.
And I'm lucky enough to rely on many very strong,
very supportive, non-vir tual ties. Writing this book
has been a much longer task than I had planned and
expected. Therefore, I'm aware I've been a taker much
more than a giver with my beloved family and friends.
To all of them I owe so much. But now I can reply to
all their questions accumulated in the last 18 months
about the end of the book, and I can finally say:
it's over!
•••
The author and publisher would Uke to thank the fol-
lowing for permission to reproduce material:
o Ipsos MediaCT for a figure from "The Pulse of
the Affluen t Market," The Mendelsohn Affluent
Barometer (2013).
o John Wiley & Sons Ltd for a figure from Deeter·
Schmelz and Sojka, "Wresiling with American Values:
An Exploratory Investigation of World Wresiling
Entertainment as a Product-Based Subculture; Journal
of Consumer Behavior, 4.2 (2004): 132- 43; and a figure
from Leder, Belke, Oeberst and Augustin, "A Model
of Aesthetic Appreciation and Aesthetic J udgments;
British Journal ofPsychology, 95 (2004): 489- 508.
o Sports Business Group at Deloitte for a figure from
Football Money League 2014 report.
o National Readership Survey and Newsworks for data
and figures from NRS PADD January 13- December
13 I ComScore November 20 13 .
o Perseus Books Group for a figure from
Csikszen tmihalyi, Finding Flow (1997).
o Pion Ltd for a figure from Leyshon, "Time-Space
and Digital Compression : Software Formats and
the Geographical Reorganisation of the Music
Indust ry; Environment and Planning 33.1 (2001):
49- 77.
o The American Marketing Association for a figure
from Plummer, J., "The Concept and Application of
Lifestyle Segmentation," Journal of Marketing, 38
(1974): 33- 7.
o Uruversity of Chicago Press for a figure from
McCracken "Who Is the Celebrity Endorser? Cultural
Foundations of the Endorsement Process; Journal
Consumer Research , 16.3 (1989): 315.
Part THE ROLE OF
I MARKETING IN
CREATIVE INDUSTRIES
Chapter CREATIVE INDUSTRIES
1
LEARN ING OBJECTIVES
After reading this chapter you should be able to:
o Map the landscape of the creative industries.
o Distinguish a creative industry from a non-creative
one.
o Tap in to the main characteristics of a creative
industry.
o Understand their relevance in today's society.
1.1 A DEFINITION OF CREATIVE
INDUSTRIES
Delineating the boundaries of an industry is an
extrem ely complicated task. Essentially this process
calls for the inclusion of some actors, relationships,
and behaviors while at the same time excluding other
actors, relationships and behaviors that fall within the
confines of other industries. Today the under taking
is even more complex because in m ost of the world's
economies even the borders of the most traditional
industries are becoming blurred. (Can a clear line
be drawn between the food and pharmaceutical
industries, for example, when currently on e of fast·
est growing markets is nutriceuticals, foods with high
therapeutic value?)
A number of phenom ena can explain this escalating
ambiguity: the evolution of production and distribu-
tion technologies, business strategies that trigger
cross-industry competitive dynamics, and changing
consum er n eeds that prompt organizations to bundle
together in single offerings benefits that in the past
were provided by multiple products and services. (How
many technological tools did we once have to have to
get all the functionalities of today's smar tphone?)
To compound the complexity even further, if our
focus is a multi-sector context centered on an ambigu·
ous and seemingly elusive concept like creativity, any
attempt to make any sort of delimitation verges on the
impossible. Can't the origins of all industries be traced
back to a creative act that leads to the realization of
products and services? So aren't all sectors essentially
creative? Then how can we distinguish one from
another on the basis of creativity?
Yet s ince the late 1990s, the term creative industries
has been incorporated into the lexicon of politicians,
public policy makers, entrepreneurs, managers, and
exper ts in a variety of fields, probably thanks to a 1998
publication by the UK Creative Industries Taskforce,
under the Department of Culture, Media and Sports
(DCMS, 1998). This documen t provides a map of the
creative industries, quantifying their size, measuring
their per formance, and identifying their distinctive
characteristics.
With this sem inal work, the British government
began a systematic m onitoring program, underscoring
the critical role these industr ies play in the economic
and industrial evolution of the UK. Here the terminol-
ogy used in that report is wor th m entioning: under
the umbrella of creative industries come the m ore
traditional cultural industries, a term which is a few dee·
ades older (as it was first coined in the 1960s). Beyond
the conceptual and methodological repercussions,
including traditional cultural industr ies in this way
also carries symbolic weight and sends a clear signal:
the time has com e to recognize that traditional cultural
industries are industries in every sense of the word.
More importantly, some of them satisfy similar needs,
though they've always been considered very different
industries (compare fashion to video games or sport).
After the first British DCMS report was released,
other countries followed suit and began studying and
monitoring the impact of creative industries on their
national economies (in many cases, adopting a nearly
identical conceptual and methodological framework).
These countries include South Africa (DACST, 1998),
Hong Kong (CCPR, 2003), Australia (DCITA, 2004), the
US (IIPA, 2006), the European Union (KEA, 2006), and
Italy (San tagata, 2008), as well as the United Nations
(UNCTAD, 2008).1 This investment in developing a
knowledge base on creative industries has on one hand
3
4 Marketing in Creative Industries
contributed to the dissemination of the term, and
on the other has opened the debate on exactly which
industries should be given the 'creative' label.
In light of the aims of this book, I don't see any
point in scrutinizing the similarities and differences
in the various definitions.2 But I do believe it's worth·
while to keep in mind that every attempt to delineate
creative industries is based on specific assumptions and
objectives. To give an example, the goal of the British
government in setting up the Creative Industries
Taskforce, which authored the first repor t mentioned
above, was to identify opportunities for economic
growth in a nation emerging from two decades of deep
de-industrialization . Consequently, the underlying aim
was to glean some useful indications to apply in formu-
lating national industrial policies in the years to follow.
The end result was a definition of creative industries
that dearly reflects an industrial view, focusing on vari·
ables such as the percentage and type of employment
in these sectors, the value added of various phases of
the production and distribution process, the techno·
logical level, and the potential impact on the economic
and social developm ent of Great Britain . The basic
premise of the study was that industries labeled as
'creative' could and should contribute to the well-being
of the country by generating and exploiting intellectual
property. Accordingly, the broad definition of creative
industries used in this report encompassed all sectors
in which the original source of products and services
lies in individual creativity and talent, and in which the
protection of intellectual proper ty is possible.
However, since this is a book on marketing, it takes
a different perspective. The key concept that underpins
this work is value fo r the customer. This leads to my
initial premise: every econom ic phenomenon, and
especially every market phenomenon, should be ana·
lyzed and interpreted from the viewpoint of the cus·
tam er. By customer, I refer to the recipien t of the value
generated by the players who operate in the industry
in question (in other words, the person who evaluates,
appreciates, buys, and uses the product or service). My
purpose in writing this book is to propose an effective
marketing management model built on managing cus·
tam er value, a model that is tailored to the specificities
of creative industries.
This explains why I don't feel a pressing need to
stake out the exact boundaries of creative industries.
What I believe is essential, instead, is to pinpoint their
distinctive features, which have a much greater impact
on typical marketing decisions. So my aim in propos·
ing a possible categor ization is to formulate a working
hypothesis that allows me to fashion a m ore effective
ad hoc marketing management model.
That said, the firs t consideration that will help in
defining creative industries is the relevance that consum-
ers associate with the creative content of the products and
services offered in the industry. In creative industr ies,
the value offered to the customer depends mainly on
the creative content of the offer ing, that is, products
and services are compared, purchased, and evaluated
primarily on their creative content. At the begin ning of
this chapter I presented two questions that commonly
arise in attempting to pinpoint what makes creative
industr ies unique: Aren't all industr ies essentially crea-
tive? How can we differentiat e one from another based
on creativity?
In my opinion, by adopting the perspective of value
offered to the customer and recognizing the impor-
tance of the creative con tent of that offering, we can
resolve these questions by shifting our focus. Instead
of considering creativity as the input of production pro·
cesses, we need to think of creativity as the output. (All
sectors make products and ser vices that spr ing from a
creative idea, but only in certain sectors do customers
associate the value of a product or service primarily
with its creative content.)
Examples are products like washing machines, cars,
body lotion, or laundry detergents on the one hand,
and novels, video games, photography exhibits, or
music on the other. Obviously, the s tarting point for
the first set of products is one or m ore creative ideas
(input) that have led to technical solutions, which in
turn translate into specific per formances. But what the
customer buys is a set of per formances in which the
creative content isn't immediately perceptible or assess-
able. Of course, this doesn't mean that customers don't
recognize or appreciate particularly innovative solu·
tions. But even when there's nothing innovative about
these products, they can still provide the performances
custom ers want. In other words, limit ed creative
content doesn't drastically lessen the value offered to
custom ers.
The same is not true for products and services such
as video games, photography exhibits, or novels for
which the greatest share of value lies in the creative
content, which customers can im mediately perceive
and evaluate. This doesn't mean that they completely
disregard non-creative factors in the value offered (the

bulk of a book, ease of access of exhibition space in a
photography show, the m emory needed to download
and play a video game). But the value of the creative
content outweighs all these considerations. As a result,
for these categories of products and services, limited
creative content means little or no custom er value.
The second aspect we need to consider is the rel-
evance of creativity as a lever of competitive advantage,
as seen by the players in the sector (firms and institutions
that offer products and services). In creative industries,
the basic ingredient in competitive advantage is the
creativity incorporated in products and service through
innovation. In fact, in these contexts, competition
essentially orbits around innovation . This means that
the firms and institutions that succeed in systemati·
cally feeding the flow of innovations to be laun ched in
the market will survive and prosper, while the ones
that fail to do so will disappear.
An obvious example is a publishing company, which
won't last long by relying solely on backlist titles
without regularly publishing frontlists. The same can
be said for record or m ovie companies, as well as muse·
ums, theaters, and fashion companies. For all these
firms and institutions, their competitive advantage -
indeed their very survival - depends on their ability
to systematically channel creativity into innovation to
offer to their customers.
Clearly the two factors are interdependent (the
relevance of creativity both for customers and for
organizations), and there's no way to deter mine which
one drives the other. As in every industry, supply s tim·
ulates demand, which in turn stimulates supply, and
so on and so forth. Similarly, in creative industries, it
is creativity in supply that spurs on the search for crea·
tivity in demand, and vice versa. Basically, creativity is
the fuel that powers the economic engine connecting
supply and demand. Creativity generates differential
value in competitive dynamics, and use-value in con·
sumption processes. In the words of J effcut and Pratt
(2002: 228): 'Creativity is the en terprise:
O n the basis of these two defining features, indus·
tries classified as creative for the purposes of this book
fall into four sub-groups:
o Arts - Production, conservation, and distr ibution
of visual and performing ar ts, including museums,
galleries, theaters, and festivals.
o Media, information, and communication - Production ,
conservation, reproduction, distribution, and trans·
mission of contents (texts, sounds, images, ideas,
Creative Industries 5
and messages), for example publishing, music, film,
and communication.
o Fashion, design, and architecture - Production and dis·
tribution of goods with high symbolic content such
as clothing, accessories, furniture, hom e accents,
and architectural design .
o Entertainment and leisure - Production and distr ibu-
tion of recreational services, for example live shows,
sports, natural parks and amusem ent parks, and
tourism .
Like any classification, this one can't claim to be
exhaustive, but simply effective in light of how I intend
to apply it in the rest of this book. By the same token,
as I m entioned before, I don't want to be too exact in
distinguishing one area from another. So I don't see
much use in debating whether or not live music should
be considered art or live enter tainment, or if live clas-
sical music should be classified as art while musicals or
live rock should be labeled as entertainment.
What's more impor tant, as I see it, is to include all
these sectors under the umbrella of creative industr ies,
because they share certain features that will shape the
design and implementation of marketing strategies.
1.2 THE DISTINCTIVE FEATURES
OF CREATIVE INDUSTRIES
The high creative content of the offerings of these indus·
tries, which generates customer value and a chance for
competitive differen tiation for firms and institutions,
gives rise to certain distinctive traits of supply and
demand. As far as demand goes, creative content affects
consumer decision-making processes (choosing, buying,
and consuming). For supply, this same content shapes
how production and distribution processes are organ-
ized, and triggers unique competitive dynamics. Below
is a list of the most significant specificities that impact
the design and implementation of marketing strategies.
1.2.1 Non-objective preferences
Imagine we're listening in on two teens who are talk-
ing about two videogames and debating over which
on e is best. One teen says that the first game is bet·
ter because it has cooler special effects and a more
exciting, less repetitive storyline. The other teen
prefers the second gam e because it's m ore challeng-
ing, and it allows for multiple players. Who is r ight
6 Mar keting in Creative Industries
about which game is best? It's hard to say - in fact,
it's impossible.
Leaving price aside, in creative industries products
are made up of attributes for which consumer preferences
are not based on objectively quantifiable parameters. To
give an example, when a consumer buys a car, there are
param eters she can use to evaluate and compare dif-
ferent models objectively. For instance, she can look at
engine power, fuel efficiency, and safety features, and
she can measure these attributes object ively in terms
of horsepower, miles per gallon, and number of air-
bags. In other words, for similar products consumers
can base their preferences on objective parameters, so
they tend to prefer the product that offers objectively
better performance at the same price. This proper ty is
what economists call vertical differentiation.
But for products with high creative content, there are
no such objective parameters; consumer preferences vary
widely because they are based on extremely subjective
criteria. Here's another example: if a consumer were
choosing between two contemporary works of art that
are different in sizes, she wouldn't necessarily prefer the
larger one (if they both cost the same amount). Or when
she is deciding between two photography exhibits to see,
one with twice as many pieces on display as the other,
she wouldn't necessarily decide to go to the larger exhibit.
The point is that preferences depend largely on a
combination of personal experience, sensations, and
inclinations which we refer to as taste (which I'll discuss
fur ther in Chapter 3). This property is what economists
call horizontal differentiation. Consumers have subjec·
tive preferences based on their personal taste, which is
why we are inclined to choose certain forms of creative
expression over others, and certain combinations of
product attributes over others. But none of this can be
measured in any objective way.
1.2.2 Experience goods
Let's get back to our two teenagers, and imagine they're
out buying a new game, trying to choose between two
that they've never played before. How do they figure
out which one is better? Which one is more challeng·
ing, m ore fun, more exciting? It's hard to say; in fact, in
many ways it's impossible. Which leads me to my next
point: Creative products are experience products, not search
products.
With a search product, a consumer can get som e idea
of its quality before she uses it by s imply searching for
in for mation on relative product features (hence the
nam e). This process works because the quality of these
goods is associated with attributes that can be objec-
tively measured, so a consumer can find out about
them before she actually uses the product (like with
the washing machine or the laundry detergent).
For experience products, this m echanism doesn't
apply because product attributes can't be objectively
associated with product quality (like the artwork or the
photography exhibit). So the only way a consumer can
get an idea of this quality is through first-hand experi-
ence. Only after she's played the video game, or read
the novel, or seen the exhibit, can she say whether she
liked it or not; in other words, whether she valued its
quality.
There are four consequences that arise from the
'experience' status of goods that are unique to crea·
tive industries. First, consumers can't resort to objec·
tive parameters to predict the quality of a product
before they buy and use it; so to make their buying
decisions, they rely on subject ively defined indicators,
called quality clues. Examples might be comments
on a gamers' blog for a video game, or the author's
reputation for a novel, or the gallery's prestige for a
photography exhibit. When consumers use quality
clues, this further rein forces the chance for horizontal
differentiation by producers, since various dues are
subjectively defined, so they themselves can represent
differentiation factors.
The second consequence of qualifying goods as
'experience' is that in creative industries, consumers
value product trials. Listening to a song on the radio or
during a concert, or reading a few pages of a book in
a bookshop or on an online retailer's website, seeing a
work of ar t on display in a gallery or using a dem o of
a video game: all these tr ials encourage (or discourage)
us from buying the product in question, because these
exper iences constitute an anticipation of the product
exper ience. By trying out the product consumers get a
clue as to the quality they can expect from buying and
consuming it.
The third effect of the 'experience' characteristic is
that the reputation of the players becomes a fundamental
facto r in market relations. The fact is, consumers can't
deduce the quality of experience products before they
use them . So an alternative to actually trying out the
product is to rely on the reputation of the players
involved - the producer, the distributor, the brand,
the critic. This becomes a very effect ive and power ful

quality clue that consumers can instantaneously access
at practically no cost.
Here are some examples: a consumer can make an
educated guess as to the quality of an artist thanks to
the reputation of the gallery hosting her exhibit, or
anticipate the quality of a temporary exhibit based on
the reputation of the museum that has organized it,
or get an idea of the quality of a musical by reading a
review from a reputable critic. As compared to non·
creative industries, with search products and services
as their output, reputation is extraordinarily impor tant
in creative sectors because it's a key quality clue.
The fourth consequence of being an 'experience'
product is that consumers need time to actually experi-
ence the product. Attending a live concert, watching a
volleyball game, reading a book, visiting a museum -
these are all things that take time. Basically, the satis·
faction people get from consuming a product with high
creative content depends on the tim e they dedicate to
consumption. There are two reasons for this, which I'll
delve into fur ther in Chapter 3. The first is that the time
people spend consuming allows them to enhance their
expertise and competence with regard to the product,
refining their tastes and more clearly defining their
preferences. The second is that it takes time to activate
cognitive processes and elicit emotional states by which
consumers can come to appreciate a creative product.
1.2.3 Infinite variety
In 20 12 in India, 1,288 new films were produced
(UNESCO, 2012a). In 2010 in the US, 328,259 new
book titles were sold, of which only 53,139 were fiction
(Bowker, 2012). In 2012, around 20 million songs were
available for download from about 500 legal sites (IFPI,
2012). In 20 12 in the m odem art market, Edvard
Munch's 'The Scream' fetched 192 million US dollars
at auction, and at the sam e time m illions of works by
amateur artists were sold for a few dollars a piece at
local art fairs .
To put it briefly, in creative industr ies, product
variety is practically infinite (Caves, 2000, p. 6). But
if you think about industries like cars, cell phones,
detergents, or any mass market or durable goods, the
number of new product launches in a single year is
much lower than the sam e figure for any given creative
sector.
Let's take a movie, for example. The same screenplay
can generate countless end products, based on all the
Creative Industries 7
possible combinations of directors, actors, sound
tracks, editing, and so on . This illustrates how crea·
tive industr ies are typically hyper-fragmented, both in
terms of supply and demand, but with opposite effects
on either side. For demand, hyper-fragm entation is
the outcom e of unlimited variety in the subjective
tastes of consumers, which leads producers to launch
new products continually. As a result of the massive
number of products available on the market, consumer
decision-making processes have become exponentially
more complex. How can people navigate their way
through the infinite variety of shows, books, exhibits,
and sporting events?
In terms of supply, instead, producers have limitless
possibilities for combining attributes to create products
and services that offer a differential advantage over com-
petitors. Yet all these possibilities generate trem endously
intense competition, because every single product in
any given sector competes with an enormous number
of other products, first to capture consumer attention,
and then consum er preference. How many local sport·
ing even ts can a consumer go to in a week? How many
weekend concerts can she actually find out about? How
many TV programs can she watch on any given night?
1.2.4 Structural failure
Common wisdom among exper ts holds that 70 per
cent of books can be considered flops (Thompson, 2010),
and the sam e percentage of new CDs released on the
market won't be able to cover their production costs
(Wikstrom , 2009).
In creative industries, the market failu re of many
products is inherent to the spedfidty of production and
consumption processes. This characteristic is rooted in
the hyper-fragmentation mention ed above. What
I mean by this is that with such extreme product
proliferation, the fact that many products can't reach
market success is intr insic to the structure of creative
industr ies. Put another way, in these industries, the
failure of scores of products is offset by the market
success of a few.
Hyper-fragmentation prompts consumers to notice
only a tiny fraction of the products available on the
market. Similarly, it's impossible for producers to pay
the same attention to (read: invest the sam e financial
and marketing resources in) all the products they sell.
Clearly, the m ore products an organization has in its
portfolio, the m ore significant this consideration is.
8 Marketing in Creative Industries
That's why in publishing, film, music, and fashion,
structural failure is more obvious than in other sectors
like natural parks and amusement parks, where nor-
mally every company or institution manages a limited
number of 'products'.
What this means in financial terms is that produc·
ers realize that many of the products in their portfolio
won't break even, so the ones that do will have to offset
the losses of the ones that don't. One outcome of this
is that many creative sectors are 'hit-driven' or 'chart·
driven'. In other words, producers focus on making sure
that a certain number of their products become hits,
and break into the charts or bestseller lists, because
these successes provide slack resources that serve to
compensate for losses on less successful products.
In commercial publishing, film, and music, as with
modern ar t exhibits, tourist cities, fashion, and design,
producers need to sell a certain number of products to
millions of consumers in order to generate volum es and
margins that can guarantee economic sustainability for
the entire product portfolio.
1.2.5 Non-utilitarian consumption
If you were to ask som eone why she's reading a mys-
tery by Manuel Vasques Montalban, she'd answer:
because it's exciting! If you ask a visitor at the entrance
to a Damien Hirst exhibit why he's going, he'd prob·
ably answer: because I'm curious! O r, because I've
heard so much about it I've got to go! And if you ask a
heavy m etal fan why she's going to see Metallica's n ext
concert, she'd answer: because they're awesome!
Products in creative industries are consumed primar·
ily for their hedonic, experiential, and symbolic value. The
difference between hedonic and utilitarian consump·
tion (and hedonic and utilitarian products) is by now
consolidated in the marketing discipline. Consumption
is utilitarian when a consumer buys and uses products
to reach a goal. The product provides performance,
and it's product per formance that contributes to
reaching the goal in question. (For example, a moistur·
izing lotion, thanks to its emollient ingredients, gives
consumers softer skin.)
Conversely, hedonic consumption does not serve
to att ain a goal, it is the goal. Hedonic consumption
engenders pleasure, aesthetic appreciation, and gratifi-
cation. (For example, the value in listening to a classical
music CD or reading a comic book lies in the aesthetic
pleasure these activities provide.)
More broadly speaking, consumption in these
industr ies is also experiential and symbolic. The first
refers to the fact that it's not the product in itself that
delivers value to the consumer, but the entire con-
sumption exper ience (see Section 2.1.2). For instance,
when a consumer goes to a stadium to watch a football
match, the value of this experience doesn't depend
exclusively on how well the two teams are per forming.
Other factors also com e into play, like the atm osphere
in the stadium before and during the match, the social·
ity of sharing her passion for football with other fans,
the sense of growing anticipation in the days leading
up to the match, and debates with other fans predict·
ing the possible outcom e. All these factors enhance or
detract from the value of the consumption experience.
Finally, consumption in creative sectors has a high
symbolic value. In other words, it bears the message
that an individual belongs to certain social group and
shares certain values, and conveys the image that she
has of herself or that she wants to transmit to others.
If a consumer reads a newspaper, for example, she can
get up-to-date information on what's going on in her
country and in the rest of the world. But she can also
feel like an active participan t in her country; she can
share and compare her opinions with others; she feels
like she belongs to a certain group.
In describing consumption in creative industr ies as
hedonic, experiential, and symbolic, I don't mean that
all consumption is all three things at the same time, or
that there are no utilitarian factors involved whatso·
ever. (After all, listening to a talk show can satisfy the
utilitarian need to learn more about an issue, as does
reading in-depth coverage of a topic in a newspaper.)
What I do mean is that consumption in these indus·
tries is predominantly characterized by hedonic, expe·
riential, and symbolic elements, unlike non-creative
sectors . What's more, the positioning of every product
category and every single product or brand within a
category centers more on hedonic or experiential or
symbolic traits, or a combination of all three. We'll
discuss this in the next section, and go on to explore it
further in Chapter 3.
1.2.6 Aesthetic value
Why would a consumer buy an ugly shirt (if she could
afford to buy a nice on e at the same price)? Why
would a family buy ugly furniture (again, instead of
beautiful furniture at the same price)? And why would

a teenager download a song she's already heard and
doesn't like?
In creative industries, the aesthetic value of a product
is a fundamental component - if not the sum total - of the
overall value of the offering as perceived by the consumer.
Granted, you might say, but people don't buy newspa·
pers or geography books because they're pretty. In fact,
thanks to our broad definition of creative industr ies,
we can easily asser t that in som e sectors the aesthetic
component isn't all that essential.
What's most impor tant in a newspaper is accuracy
and atten tion to detail, as well as up-to-date content.
And a consumer would rat e a geography book mainly
on how thoroughly topics are covered and how clearly
content is presented. Or take an adver tising campaign,
which more than anything else has to convey a m es-
sage and resonate with a specific customer target.
Therefore, it's reasonable to admit that readers appreci-
ate the graphics in a newspaper, which make it easier
to read; or the quality of the pictures in a geography
book, which makes the content easier to understand;
or aesthetic elem ents of an ad campaign that help
capture the attention of the audience.
In sum, there is evidence that aesthetic appreciation
applies to all the products of creative industries (as
they are defined in this book). However, aesthetics do
not have the same relevance for all products from the
customer viewpoint. It is therefore useful to classify
products on a continuum according to their aesthetic
content (see Charters, 2006, for a similar classification).
At one endpoint there are products that are primarily
utilitarian. For these goods, the aesthetic content is a
secondary benefit within the broader customer value,
without which the overall value would be compromised
but not eliminated altogether. Examples of products
on this end of the spectrum would include daily news-
papers and professional publications or educational
texts.
At the other end, there are aesthetic products (for
example, paintings, live performances, musical com-
positions, novels). For these items aesthetic content
represents an essen tial and even exclusive component
of value perceived by the custom er, without which the
product loses its primary benefit. Aesthetic products
have an intrinsic aesthetic value, which again may
encompass the entire value perceived by the customer.
Yet other factors can also come into play. For example,
when buying a novel a consumer might also consider
the size (easy to carry) or the font (easy to read). But
Creative Industries 9
the bottom line - what delivers value for the customer,
and det ermines (dis)satisfaction - is the aesthetic value
of the content.
Two more categories fall in between these two
extrem es: products that are either primarily experiential
or primarily aesthetic. In the first group are goods that
provide value which is strongly associated with an
exper ience. For these items the aesthetic elem ent
is one of the components of the experience itself; if
it were lacking the value for the consum er would be
diminished, but not cancelled out all together.
Going back to the football match, the atmosphere in
the stadium is a fundamental aspect of the consump·
tion experience, and certain elem ents of this atm os·
phere relate to aesthetics. Just think of the visual
impact of a full s tadium, with all the fans wearing their
team colors, and the sound of music and chanting in
the background. Without these s ights and sounds, the
whole experience would center on the quality of play
alone, which for spectators would probably lessen the
perceived value considerably.
Products which are primarily experien tial are posi·
tioned closer to the utilitarian product endpoin t of the
continuum because aesthetics are important but not
predominant in terms of the value sought after and
supplied to custom ers.
Finally, there are products which are primarily
aesthetic. The product categories positioned on this
segment of the spectrum include clothing, jewelry, fur-
nishings, home decor, and so forth. Here the aesthetic
content is the main benefit, but utilitarian factors
count too; in fact, without them overall product value
would be drastically reduced, to the point of preventing
customers from making the decision to buy.
When shopping for clothes, for instance, people
make their choices mostly based on aesthetics, but also
because the clothing breathes in the summer or protects
from the cold in the winter. Or if they're in the market
for a new home, they choose which house to buy and
how to decorate it based on aesthetics, but faulty wir·
ing or leaky faucets would reduce the perceived value
appreciably.
1.2.7 Multiple product life cycles
How long is the lifecycle of a daily newspaper? A day.
A movie at the cinema? A few weeks. A hit musical?
A few m onths. A fashion collection? A season. After
that, all of these products are replaced by new ones.
10 Mar keting in Creative Industries
But they don't disappear, far from it. They simply
reemerge, perhaps in some other form or on some
other markets providing different benefits.
A single issue of a newspaper ends up in the archives
where it can be recovered for research and reference.
After a run at the theaters, a m ovie is released on DVD
and then gets redistributed for pay TV and broadcast
TV Music from the hit musical is put into a com·
pilation, or it becomes the soundtrack for a film or a
television spot. The fashion collection is sold online or
in factory outlets. In creative industries, products have
multiple life cycles. The first is often shor t, sometimes
extremely so, but later life cycles taken together can be
very long indeed.
Just think of an opera, or classical music in general,
or classics from literature. There are even some con ·
temporary products that can be used as examples. Pink
Floyd's album The Dark Side of the Moon stayed on the
Billboard 200 chart (the ranking of bestselling albums
in the US, published weekly by Billboard magazine) for
815 weeks, and that's not even counting prior sales.
(The album came out before Billboard 200 was first
published.) And with every new LP the group released,
fans kept going back to 'the Moon'. Other classic prod-
ucts are the Keepall and Speedy bags by Louis Vuitton,
created in 1930, but continually updated over the
years. In modern literature, Tolkien's The Lord of the
Rings was firs t published in 1954, but much later it
achieved worldwide success when it was made in to a
series of movies. The list goes on and on .
Some creative industries, it is true, have lifecycles
that are anything but br ief. Many European museums
were founded in the eighteenth cen tury, as were count·
less theaters. Also, since tour ist destinations are on our
list of creative industries, that means the lifecycles of
many 'products' can be measured in centuries or even
millennia .
But as I'll detail in Chapter 8, if we take the example of
a museum , its 'product' isn't the museum itself, but the
pieces on display at any given moment. Over time this
body of art changes with new purchases added to the
collection, or even when the same works of art are exhib·
ited in new ways, conveying different themes. (The
per man ent collection is only one of a museum's prod·
ucts .) Consequently, m useum products have multiple
life cycles, albeit short ones, which taken together can
span centuries.
Today, product life cycles in all sectors are shrinking,
but in creative industries this time span is astonishingly
short. Why is that? The answer lies in the role that
creativity plays in these industries. As far as supply
goes, since competitive advantage is built on innova-
tion competitors are driven to launch new products on
the market continuously. Moreover, since the failure of
many products is structural, products that don't m eet
customer needs must quickly be replaced by others
that have the potential to do so. This makes planned
obsolescence a widespread product strategy in creative
industries: life cycles are purposely designed to be short
so as to ensure a systematic flow of new products on
the market (Section 8.1.5.1).
In terms of demand, short life cycles are rooted in the
variety seeking behaviors of custom ers (Section 4.5.5).
In fact, to satisfy their hedonic needs, customers only
rarely consume the same product more than once.3
(That said, it's not unheard of for people to watch the
same film or read the same book or visit the same col·
lection in a museum several times.) But it's much more
likely that people will buy and consum e other products
within the same category or related categories.
The fact that products in creative industries have
multiple life cycles means the brand is an essential and
increasingly important resource. For producers, in fact,
growing the value of their brands is a way to capitalize on
investments they've already made in individual products,
in communication, in relationships with distributors,
and of course with customers.
In creative contexts, hyper-fragmentation of the offer·
ing, combined with short, multiple life cycles, would
make it financially unsustainable to support marketing
activities for every single item. The chance to capitalize
a portion of these efforts on a broader resource such
as brand constitutes an investment in reputation that
the organization can leverage to support new product
launches. In fact, brand reputation is one of the typical
quality clues that consumers use when they buy experi·
ence goods. So, as we'll see more clearly in Section 8.2,
the brand serves for product endorsem ent, and brand
management becomes a critical competence for success
in creative industries.
1.2.8 Profit and non-profit coexistence
In Europe the vast majority of theaters, opera houses
and museums are State-owned. In fact, in most coun-
tries of the world, the State (central or local govern-
ment) intervenes directly in media sectors as owner of
television and radio stations (UNESCO, 2012b).

Essentially, for organizations in creative industries,
the priority goal is not always, or not only, profit. In
fact, s tate-owned organizations that operate in these
contexts are often non-profits. What's more, in other
industries that are populat ed for the most part by
privately-owned enterprises (for example, publishing,
film, tourism, and sports), the state recognizes the
cultural and social value of the products in question,
and offers direct and indirect subsidies for relative sup-
pliers. (For data on some major European countries,
see the report by Nielsen and Linnebank, 2011.) This
means profit is pertinent, but not a pressing priority.
Finally, in all creative industr ies, both public and
private organizations, whether profit or non -profit, I
believe that a fundamen tal aspect of their mission is
to contribute to the civil, social, and cultural progress
of their country and the world. Consequently, they
give other organizational goals - like promoting new
creative talent, raising the cultural level of the general
public, and enhancing the image of their city or coun-
try - the same (or even higher) priority as profit (or
financial sustainability, in the case of non-profits). If
trus weren't the case, there would be no explanation
for the enor mous number of market and financial
failures in these industries.
Figure 1.1 sums up the distinctive features of creative
industries. Their usage for the inclusion of an industry
Non-
objective
preferences
*
Profit and
non-profit
coexistence
Multiple
..
product life
cycles
• •
Aesthetic
value
Non-
utilitarian
consumption
Fi gure 1.1 - The distinguishing features or creative industries
Creative Industries 11
in the creative group is more effective - I believe - than
any ex ante definition. The more of them an industry
possesses, the more relevant is creativity in giving form
to relative supply-demand dynamics. And the more
necessary is a marketing management model that takes
into account these features when providing recom -
mendations on designing and implementing marketing
strategies and tactics.
1.3 THE INCREASING ECONOMIC
IMPACT OF CREATIVE INDUSTRIES
The world has always had creative industries. Any one
of them included in the definition used here can trace
its origins back several centuries, if not millennia. But
never before have these industries captured so much
attention from institutions and decision makers, both
public and pr ivate.
The first indication that creative industries are taking
the lead on the economic scene comes from economic
data, wruch show that creative industry products (in
other words, the so-called creative economy) account
for a rising percen tage of international commercial
trade. In fact, the average annual rate of increase was
11.83 per cent from 2002 to 2008 (UNCTAD, 2010),
surpassing growt h in trade of other products by far.
Experience
goods
~
Infinite
variety
Structural
failure
Another random document with
no related content on Scribd:
 [268] Compayré, 250.
[269] Compayré, 61.
[270] Crévier, Hist. de l’Université de Paris, vii., 92.
[271] Compayré, 19.
[272] Ibid., 23.
[273] Ibid., 24.
[274] Malden, 15.
[275] Fournier, i., 8, cited by Compayré.
[276] Chevillier, Preface.
[277] Delalain, xi.
[278] Recueil des Priviléges de Paris, 1-9.
[279] Cartulaire de l’Univ. de Paris, i., 59.
[280] Recueil des Priviléges, v., 88.
[281] Recueil des Priviléges.
[282] Pierre de Blois, cited by Vallet de Viriville, 96.
[283] Delalain, xi.
[284] Guérard, Cartulaire de l’Église de Notre Dame de Paris,
iii., 73. 1270.
[285] Chassant, Dict. des Abréviations Latines et Françaises
Usitées dans les Manuscrits, Paris, 1864.
[286] Chevillier, op. cit., 347.
[287] Recueil des Priviléges, 1674, 89, 95.
[288] Actes Concernants le Pouvoir, etc., de l’Université de
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[289] The livre Parisis. De Wailly, cited by Delalain, xxix.
[290] Denifle, iii., 29.
[291] The livre Parisis was the equivalent of twenty sols or
twenty-five francs. The sol equalled twelve deniers or one franc,
or twenty cents. The denier was of the value of one and three-
fifths cents. In considering these “equivalents,” due allowance
must of course be made for the very much larger purchasing
power possessed by money in the fourteenth century than in the
nineteenth. De Wailly, cited by Delalain, xxix., xl.
 [292] Denifle, iii., 280.
[293] This regulation was identical with that of Bologna.
[294] Delalain, p. xxxvi.
[295] Delalain, p. xxxvi.
[296] Du Breuil, op. cit., 608.
[297] Kirchhoff, 68. Delalain (xl.) specifies a limit of 10 sols,
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[298] Lettres Obtenues par des Imprimeurs et Libraires, etc.,
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[299] Thurot, p. 65, cited by Compayré, 188.
[300] Opus Major, cited by Compayré, 188.
[301] Delisle, Cartulaire de Normandie, Mém. des Antiquaires
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[304] The “Stationers or Text-Writers who wrote and sold all
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[305] Kirchhoff, 115.
[306] Kirchhoff, 187.
[307] Paulsen, 41.
[308] Griech. u. Lat. Messen., p. 155.
[309] (V., 4, 22.)
[310] p. 449.
[311] Wipo, Tetralogus, v., 197 ff.
[312] Wattenbach, 450.
[313] Mab. Acta. Ss., ii., 445, Ed. Ven.
[314] Vita Benedicti Abb., c. 4, 6, 9, cited by Wattenbach, p. 450.
[315] Chron. Fontanell., c. 7; Mon. Germ., ii., 274.
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[317] p. 451.
[318] Georg. Cedrenus., i., 444, Ed. Bonn.
[319] Wattenbach, 452.
[320] Grimm, Kleine Schriften, v., 191.
[321] Vita S. Ludovici, Gaufrido de Belloloco, Bouq. xx., 15.
[322] Wattenbach, 457.
[323] Westwood, Miniatures and Ornaments, xxii., 6.
[324] Gesta. Abb. Gemblacensium, Mon. Germ. Ss., viii., 540.
[325] Wattenbach, 459.
[326] Wittwer, in Steichele’s Arch. f. Gesch. der Bisth.,
Augsburg, iii., 164.
[327] Wattenbach, p. 465.
[328] Mone, in der Zeitsch. f. Gesch. der Oberrh., i., 309, 310.
[329] Philobiblon, c. 8.
[330] Iter Ital., iv., 179.
[331] Epp. Leon. Aret., Ed. Mehus., iv., 8.
[332] Ambrogii Epistolæ, Ed. Mehus., p. 517.
[333] The Faculty of theology in Bologna was not established
until 1352, but the statement is sufficiently correct for the period
here referred to.
[334] Blume, Iter, vol. ii., p. 71.
[335] Poggii Florentini, Opera, Argentinæ, 1513, vol. ii., 102.
[336] Schier, De Regia Bibliothecæ Budensis, Viennæ, 1799,
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[337] Denis, tom. i., 849.
[338] Mittarelli, p. 258.
[339] Tiraboschi, ii., 40.
[340] Mittarelli, 383.
[341] Mittarelli, 933.
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[343] Petit-Radel, Recherches sur les Bibliothèques Anciennes,
etc., Paris, 1819, p. 155.
[344] Kirchhoff, p. 40.
[345] p. 41.
[346] Bandini, Codd. Lat., ii., 727.
[347] Pasini, Rivantella et Berta, pars ii., 77.
[348] Endlicher, Catalogus Codd. MSS. Biblioth. Palat. Vendo
Bonensis, tom. i., 89.
[349] Martene et Durand, tom. iii., 536.
[350] Coxe, Coll. Lincoln, tom. i., pp. 31 and 32.
[351] Kirchhoff, Weitere Beiträge, vii., 8.
[352] Filelfo, Epistolæ, x., 25.
[353] Bandini, Codd. Lat., tom. ii., 145.
[354] Bandini, Codd. Lat., tom. ii., 251.
[355] Kirchhoff, p. 55.
[356] History of the Mohammedan Dynasties in Spain. By
Ahmed Ibu Mohammed Al-Makkari, translated by Pascual de
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[357] Géraud, H., Paris sous Philippe-le-Bel, Paris, 1837, iv.,
608.
[358] Petit-Radel, 106.
[359] Kirchhoff, 62.
[360] Catalogue Général des Manuscrits des Bibliothèques
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[361] Chevillier, L’Origine de l’Imprimerie de Paris, 1694, iv.,
346.
[362] Chevillier, 369.
[363] Gesch. der Präger Univers. Bibliothek., Prague, 1851, viii.,
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[364] Denis, part ii., p. 1262.
[365] Denis, part ii., p. 1285, quoted by Kirchhoff, p. 71.
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[367] Adrian, J. V., Catalogus Codd. MSS. Biblioth. Acad.
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[368] Géraud, p. 175.
[369] Bulæus, iv., 62.
[370] Chronique Métrique de Godefroy de Paris, Buchon, Paris,
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[371] De La Caille, Histoire de l’Imprimerie, Paris, 1689, iv., 5.
[372] Garnier, 275.
[373] Bulæus, iv., 449.
[374] Lalanne, 307.
[375] Bibli. de l’École de Chartres, v., 67.
[376] Kirchhoff, 100.
[377] Gesch. der Prager Univ. Biblioth., Prague, 1851, p. 24.
[378] Kirch., p. 112.
[379] Kirch., p. 114.
[380] Delprat, Verhandlung over de Broederschop van G.
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[381] Wattenbach, 476.
[382] Wattenbach, 478.
[383] Haupt, in Der Zeitschrift f. Deutsches Alterthum, iii., 191.
[384] Denis, ii., 2144. Cited by Kirchhoff, 131.
[385] Mone, Zeitschrift f. Gesch. d. Oberrheins, i., 312.
[386] Litterar. Grundiss zur Gesch. d. Deutsch. Poesie, Berlin,
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[387] Kirchhoff, 119.
[388] Kirchhoff, 120.
[389] Gesch. d. Offentl. Bibliothek zu Bamberg, Nurnberg, 1832,
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[390] Kirch., 120.
[391] Kirch., 121.
[392] Else, i., 242.
 [393] Kapp, 18.
[394] Kapp, 20.
[395] Kapp, 21.
[396] Kapp, 24.
[397] Early English Poetry, Introduction, xi.
[398] English Wayfaring Life, 188.
[399] The Old Printer, p. 43.
[400] Literary History, i., 176.
[401] Literary History, i., 182.
[402] Oesterly, Die Literatur der Urkundensammlungen, 2 vols.,
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[403] Selection of Latin Stories from the MSS. of the Thirteenth
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[404] Harrison’s Description of England. Ed. Furnivall. Part i.,
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[405] Roger’s History of Agriculture and Prices in England, iv.,
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[406] Delisle, Hist. Litt. de la France, xxx., 334.
[407] Philobiblon, Lond. 1888, chap. i., pp. 12, 13.
[408] Huber, The English Universities, London, 1840, p. 273.
[409] Hartshorne, C. A., The Book Rarities of the University of
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[410] Coxe, College of Merton, p. 107.
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[453] Humphreys, 124.

Corrections

The first line indicates the original, the second the correction:
p. xvi

The Inventon of Printing and the Work of the First Printers of Holland and
Germany
The Invention of Printing and the Work of the First Printers of Holland and
Germany

p. xx

British Monachisn; Manners and Customs of Monks and Nuns

British Monachism; Manners and Customs of Monks and Nuns

p. xxiv

Geschichte der Enstehung u. Entwickelung der hohen Schulen

Geschichte der Entstehung u. Entwickelung der hohen Schulen

Zeitschrift fur Gesch. des Oberrheins.

Zeitschrift für Gesch. des Oberrheins.

p. xxvi

Iter Litterarium in Alsatiant

Iter Litterarium in Alsatiam

p. xxvii

Geschichte der Erfindung der Buchdrückerkunst

 Geschichte der Erfindung der Buchdruckerkunst

p. 7

“... should stigmatise him as a dangerous and heterodox author.”

“... should stigmatise him as a dangerous and heterodox author.”[5]

p. 15

for the purpose of my narrrative,

for the purpose of my narrative,

p. 144

forms an important contribution to the monastic history of the country and

contain not a few references
forms an important contribution to the monastic history of the country and
contains not a few references

p. 166

as a guide for the same, a work entited Biblionomia.

as a guide for the same, a work entitled Biblionomia.

p. 213

conservés en la jouissance de tours les droicts;

conservés en la jouissance de tous les droicts;

p. 217

found themselves very largely dependent upon the scholary interests

found themselves very largely dependent upon the scholarly interests

p. 221

As Savigny puts its:

As Savigny puts it:

p. 227

In 658, S. Gertrud
In 658, S. Gertrude

p. 238
 Di Sasso who, in 1481, came into asssociation with the Brothers Brushi
Di Sasso who, in 1481, came into association with the Brothers Brushi

p. 245

This codex was completed in the stall of Master Valiaric, bookseller;

This codex was completed in the stall of Master Viliaric, bookseller;

p. 291

and among the citzen class an earlier interest

and among the citizen class an earlier interest

p. 297

between the scholars of Italy and the instructtors

between the scholars of Italy and the instructors

p. 300

At the end of the fourteeth century

At the end of the fourteenth century

p. 302

very largely by means of reciters or ministrels.

very largely by means of reciters or minstrels.

p. 309

prepare plentiful stores of provisons

prepare plentiful stores of provisions

p. 311

with the book-trade by its use as an appelation

with the book-trade by its use as an appellation

p. 390

censorship upon the press which occured

censorship upon the press which occurred

p. 408

Jenson was afforded any opportunity for excercising his art in Paris
 Jenson was afforded any opportunity for exercising his art in Paris

Footnote 320

Grimm, Kleine Schrifter, v., 191.

Grimm, Kleine Schriften, v., 191.

Footnote 452

Lorck, C. B., Handbuch der Gesch. der Buchdrücker-Kunst, 13, Leipzig,

1882.
Lorck, C. B., Handbuch der Gesch. der Buchdrucker-Kunst, 13, Leipzig,
1882.

Errata

p. 255
Ibun-l-abbáns and Ibun-l-abbar should read Ibn al-Abbar
p. xxviii, Footnote 254, 303, 375
Bibliothèque de l’École de Chartres should read Bibliothèque de l’École de
Chartes
p. 462, 463
The address New York: 29 West 23d St. London: 24 Bedford St., Strand
should read New York: 27 West 23d St. London: 24 Bedford St., Strand
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