3. Special Exhibits 4. Private showings/ fundraising 5. Restaurant, gift shops, parking 6. Benefits a. Client (patron) 1) Core – experience art 2) Education 3) Entertainment 4) Socialization 5) Self-esteem b. Contributor (government/organization/member) 1) Core – Fulfillment of cultural mandate 2) Success of local social endeavor 3) Altruism 4) Self esteem and prestige 5) Reciprocity 6) Tax savings 7. PLC – maturity C. Price 1. Public institution – no charge for viewing permanent collection 2. $3. 00 to $5. 00 charged for special exhibitions 3. 2004 MMAH membership CategoryNumberRevenueBenefit Cost
a. Regular $50 13,672$639,664$631,016 b. Associate $100 2,596234,87181,903 c. Collector $25036481,41564,135 d. Patron $50010248,10039,135 e. Partner $1,500 604815,66699,567 f. Director’s Club $5,00091406,67315,975 g. Corporate205125,576 4. Elasticity – relatively elastic to relatively inelastic with price clusters D. Promotion 1. Little promotion of unique aspects of CAM’s collection or emphasis on historical context 2. Promotion of special exhibits and activities via press releases and close relationship with local media 3. Educational outreach programs and lending performance space 4.
Advertisements for special exhibitions aired on local radio and newspapers 5. Member recruitment/renewals a. Mail and telephone solicitations focus on $50 to $250 personal membership categories b. Personal solicitations used for $500 to $5,000 personal and corporate membership categories c. Membership parties, special previews, and inserts in monthly CAM calendar 6. Expansibility – non-expansible E. Place 1. Universal City, Fannel County, a large metropolitan area in the western U. S. 2. Four story building situated in the downtown adjacent to skyscrapers a. Unremarkable structure- “marble box”, unclear to many it is an art musuem b.
Convenient location for shoppers, food, parking 3. Channel a. (Agent ) – CAM – consumer/user [client service channel] b. Manufacturer – Distributor – CAM – consumer/user [products channel] c. Contributor – CAM – Client [contributor channel] F. Other 1. Museum image a. Referred to as “marble box” by its critics b. Building is anonymous c. Public status engenders misunderstanding d. No image in mind of the public (director’s opinion) e. Research revealed two distinct images 1) Nondescript “non-image” 2) Only for specific people f. Viewed by membership as community organization with a cachet of class 2. Membership renewals a.
$50: 70% do not renew after 1st year, 50% of 2nd year renewals renew every year b. $100 – $500: 60% renewal rate c. $1,500 – $5,000: 85% renewal rate d. Corporate: 75% renewal rate for all categories 3. Auxiliary activities a. Gift shop b. Skyline Buffet restaurant c. Parking II. Problem/Opportunity A. Primary – deteriorating financial condition B. Secondary 1. Unclear public image 2. Rely heavily on contributions 3. Membership is suboptimized 4. Narrow target market 5. Unproductive auxiliary services 6. Lack of integrated marketing communication (IMC) program III. Recommended Action A. Primary – Increase incentives to become a member
B. Secondary 1. Undergo minor renovations to outside building to emphasize it is a museum 2. Increase benefits for contributors and higher membership types to ensure members continue to contribute and value the product. 3. Increase benefits for remaining a member such as increased benefits and services with every renewal. 4. Focus on restaurant/ parking/ gift shop to attract a wider local audience since they are attractive items for everyone in a downtown area not only art people. 5. Improve quality and capacity to attract people not necessarily interested in art but in a place to eat/ park/ shop. 6. Market penetration