Cultural Marketing

Cultural Marketing

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n TOC o “1-3” h z u HYPERLINK l “_Toc439835612″Introduction PAGEREF _Toc439835612 h 2

nHYPERLINK l “_Toc439835613″Macro-environmental analysis PAGEREF _Toc439835613 h 2

nHYPERLINK l “_Toc439835614″Micro-Environmental Analysis PAGEREF _Toc439835614 h 4

nHYPERLINK l “_Toc439835615″Target Organization: Crown Fine Art PAGEREF _Toc439835615 h 4

nHYPERLINK l “_Toc439835616″Mission statement/Vision/Aim PAGEREF _Toc439835616 h 5

nHYPERLINK l “_Toc439835617″History PAGEREF _Toc439835617 h 5

nHYPERLINK l “_Toc439835618″Performances PAGEREF _Toc439835618 h 5

nHYPERLINK l “_Toc439835619″Cultural marketing strategies PAGEREF _Toc439835619 h 6

nHYPERLINK l “_Toc439835620″Marketing Segmentation PAGEREF _Toc439835620 h 6

nHYPERLINK l “_Toc439835621″Market Targeting PAGEREF _Toc439835621 h 7

nHYPERLINK l “_Toc439835622″Market Positioning PAGEREF _Toc439835622 h 9

nHYPERLINK l “_Toc439835623″Cultural Offerings PAGEREF _Toc439835623 h 9

nHYPERLINK l “_Toc439835624″Pricing PAGEREF _Toc439835624 h 10

nHYPERLINK l “_Toc439835625″Communication PAGEREF _Toc439835625 h 11

nHYPERLINK l “_Toc439835626″Channels PAGEREF _Toc439835626 h 11

nHYPERLINK l “_Toc439835627″Integrative Analysis PAGEREF _Toc439835627 h 12

nHYPERLINK l “_Toc439835628″SWOT Analysis PAGEREF _Toc439835628 h 12

nHYPERLINK l “_Toc439835629″Key Issues and Implications PAGEREF _Toc439835629 h 12

nHYPERLINK l “_Toc439835630″Conclusion PAGEREF _Toc439835630 h 13

nHYPERLINK l “_Toc439835631″References PAGEREF _Toc439835631 h 14

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nIntroduction

nEnvironmental analysis is a business strategy, which identifies the internal and external factors in a firm. The environmental analysis involves the evaluation of opportunity or threat level these factors may present (Sun and Yearwood 2014). Ultimately, the firm is able to make appropriate decisions and align its strategies to business environment. A wide range of changes happens in business, which may go beyond the firms capacity. The environment in which the business operates greatly influences the firm (Nykiel 2007). The paper will discuss the Crown Fine Art, environmental and integrative analysis of this business.

nMacro-environmental analysis

nA business conducts RESPECTA analysis to identify external factors. RESPECTA analysis stands out for Regulatory, Economic, Social, Political, Ecological, Cultural, Technological and Artistic issues (Hoyer and MacInnis 2010).

nCrown Fine Arts faces a number of regulatory factors, which affects business operations. For instance, government regulations such as customs, import and exportation regulations affect daily operations in the firm. When transporting fine art products across the world, regulatory issues are likely to affect Crown Fine Arts delivery of services (Crown Fine Art 2015). Economic factors encompasses a wide range of factors in the environment, which may include unemployment, growth rate of economy, cost of materials such fuel and energy (Kotler and Armstrong 2010). For instance, during economic depression that affected major parts of Europe and the US, Crown Fine Art may have experienced fewer sales, which reduced profit level. Social factors demonstrate the societys culture in which the organization is operating. Factors such as educational level, wealth level, lifestyle and living conditions are likely to affect businesses operations (Hoyer and MacInnis 2010, p. 10).

nCrown Fine Art faces many political factors especially when transacting businesses in different parts of the world. For instance, some countries are introducing policies that limit businesses among them e.g. Turkey and Russia in Europe. The political factors are likely to affect the decisions made by the firm in terms of delivery of services. Moreover, different countries may have introduced more taxes on artworks such as sculptures, which may affect the importation or exportation. Moreover, the political instability in some countries may affect museum businesses (Dibb 2010).

nEcological issues involve factors such as pollution, waste disposal and climatic conditions. The location of a business is likely to be affected by ecological conditions (Hoyer and MacInnis 2010, p. 16). In addition, changes in the climate affects deliver of goods and services. For instance, Crown Fine Art is likely to be affected by environmental pollution and global warming.

nCultural issues play a role in business development since nations have various cultures. Culture can act as barrier in business (Muhamad, Melewar and Faridah Syed Alwi 2012). Cultural issues such as dress codes, holiday, gestures and languages play a role in Crown Fine Art business. The firm has established major offices in countries with huge cultural adherence such as London, and Hong Kong.

nTechnological forces represent new changes innovations, the Internet, mobile technology, information technology which affect emergence of new business. Businesses are forced to adapt new technology in order to remain competitive (Zimmerman and Blythe 2013). Therefore, Crown Fine Art has adapted the use of new technology in digital marketing, packing artworks, communication and delivery of services aiming to promote. However, constant changes in technology forces many businesses to stay connected in new technology (Crown Fine Art 2015).

nArtistic work must be protected in order to safeguard the copyright. For instance, sculptures, photographs, drawing and paintings should preserve the copyright of the holder. Crown Fine Art must uphold the copyright when dealing with artwork in order protects these materials (Dibb 2010).

nMicro-Environmental Analysis

nMicro-environmental factors are internal issues that affect a business. In addition, these are factors that a business is able to control. They affect the business on short-term basis hence changes are identified instantly. Some of these factors include consumer, and competitors (Sun and Yearwood 2014).

nCustomers play a major role in success or failure of business because if they do not buy its products or services, they may lead to collapse of company (Kotler and Armstrong 2010). Some of the customers in Crown Fine Art are museums, auction house and galleries hence if they have a reason not to buy the product; it may play a role in changing marketing strategies or product provided. Secondly, the competitors have a role to play in business because they determine the product differentiation and pricing.

nThe firm also needs to put into account how the competitors sell their products. Crown Fine Art had to compete with other organizations such as Oxford Exhibition Services in the United Kingdom before it acquired the firm (Young 2011).

nTarget Organization: Crown Fine Art

nCrown Fine Art is one of the subsidiaries of Crown Worldwide Group. The headquarters of is situated in Hong Kong. It offers services in fine art such as in museums, collectors, auction house and galleries.

nMission statement/Vision/AimThe mission statement of Crown Fine Art aims at offering unique services to meet the expectations of its clients. The mission statement also notes that all services provided are important for both the organization and the customers. Its vision is to continuously raise the network for global fine art logistics. The main aim of Crown Fine Art is to establish an international and independent network of fine art. (Crown Fine Art 2015).

nHistory

nAn American entrepreneur James E. Thompson established Crown Fine Art in 1965 in Japan. He realized the importance of developing a global moving service. Between 1970s and 1980s, the firm expanded to other countries such as Hong Kong, Malaysia, Indonesia, Singapore and various Asian Pacific countries (Crown Fine Art 2015). It later expanded its business in Europe, Australia, and America due to demand of these services and higher level of mobility.

nThe firm was established after merging of five fine art companies, which include Lavanchy, Oxford Exhibitions Services, John Nurminen Prima and Gerlach Art Shippers. In 1999, the firm also bought major fine art companies in Europe such as Lavanchy from Swiss and French Fine Art (Crown Fine Art 2015). In 2010, it further bought a company from the UK, Oxford Exhibition Services. The firm has established offices in European countries such as Germany, Belgium, Netherlands, Russia, Luxemburg and Finland (Crown Fine Art 2015).

nPerformances

nThe firm has become a leading company in cultural industry because it provides a wide range of fine art services. In 2014, Crown Fine Art had a value of owned properties of US$ 460 and owned assets of US $ 467 making it one of the leading organizations in this industry.

nMore than US $ 820 was revenue generated by Crown Fine Art in 2012. The firm business strategy is to invest in many new facilities.

nCultural marketing strategies

nCrown Fine Art uses various cultural marketing strategies in order to increase its profits and maximize its growth. In addition, Crown Fine Art uses the three strategies, which include segmentation, targeting and positioning. In this case, it also uses appropriate digital marketing, which helps the firm to establish important digital communications (Crown Fine Art 2015).

nResearch conducted by Hassan and Craft (2012), indicate that using valuable segments in a business helps to establish a marketing mix that enables all segments to provide more business opportunities (Hassan and Craft 2012). Furthermore, through cultural marketing strategies the firm is able to identify specific needs in the market (Hoyer and MacInnis 2010, p. 10). Furthermore, Zimmerman and Blythe (2013) argue that it also helps to identify new customer and communicate efficient messages of marketing (Zimmerman and Blythe 2013).

nMarketing Segmentation

nMarketing segmentation encompasses categorizing different clients into segments that have similar will or needs. In every segment, the firm develop specific marketing strategy. Every segment offers a different opportunity for profits and growth (Dibb 2010). In this case, Crown Fine Art has developed approximately six segments, which include Exhibition logistics, Consultancy, Conservation, Packing and Crating, Shipping, Storage and Staffing Solutions. Segmentation of Crown Fine Art enables it to function in more than 250 locations across the globe. Therefore, it is able to serve its customers who include diplomats, corporations, government agencies and private customers (Crown Fine Art 2015).

nAccording to Sun and Yearwood (2014), marketing segmentation is very important for businesses because it enable the firm to allocate finite resources. Because of limited resources, a firm must make decisions that facilitate delivery of service to specific groups of clients (Sun and Yearwood 2014). In the contemporary world, there is an increase in the diversity in terms of tastes of fans. Crown Fine Art has used market segmentation to develop service differentiation in order to exploit existing market (Crown Fine Art 2015).

nThrough market segmentation, Crown Fine Art has benefited from commercial advantage. It also uses this strategy to invite appealing customers. Furthermore, marketing segmentation helps Crown Fine Art to minimize risk of business when deciding how, when and where its brands would be marketed (Crown Fine Art 2015). Muhamad, Melewar and Faridah Syed Alwi (2012) support the idea of marketing segmentation arguing that it promotes marketing efficiency because it enables a business to focus its energy towards specific segment (Muhamad, Melewar and Faridah Syed Alwi 2012). The study by Hassan and Craft (2012) suggest that market segmentation is important to business because people can be successfully approached by identifying their specific needs and adapting consequently (Hassan and Craft 2012). Crown Fine Art uses this cultural strategy to enhance the exchange process where its services are precisely matched with the wants and needs of its customers.

nA research by Nykiel (2007) shows that marketing segmentation also helps to differentiate a brand from other products in the market (Nykiel 2007). For instance, Crown Fine Art has differentiated its services by establishing various services. On the other hand, the firm understands that customers in the market are diverse hence; effective marketers should react to their differences (Crown Fine Art 2015).

nMarket Targeting

nCrown Fine Art uses cultural strategies such as targeting. In this respect, the firm focuses in identifying the right customers for its products. In addition, through marketing research, the firm is able to know the needs of the target customers before venturing into business. Therefore, it designs a plan on how it will market its services to target group of people (Crown Fine Art 2015). Market targeting enables the firm to identify and maintain its customer base.

nGoyat (2011) argues that market targeting is very important to the business because it ensures that services or products provided for by a firm generate profits. In addition, market targeting help a business to know how many its customers are able and willing to spend on the services or products provided (Goyat 2011). Market targeting also help a firm to establish effective marketing campaign to the right customers. In the same way, Kotler and Armstrong (2010) suggest that market targeting helps to understand the unique expectations and needs of their customers (Kotler and Armstrong 2010).

nCrown Fine Art establishes its target customers who are recipients of marketing efforts. For instance, through fine arts services, the firm targets museums and galleries to provide technical assistance in valuable fine art products. Additionally, the firm conduct marketing research in order to ascertain the assumptions (Crown Fine Art 2015). Furthermore, it helps to understand the prospective customer base. According to Muhamad, Melewar and Faridah Syed Alwi (2012), conducting a marketing research helps the firm to understand how to implement incentives. The information derived from this research is used to develop products or services that are unique from their competitors (Muhamad, Melewar and Faridah Syed Alwi 2012).

nMarket targeting also identify the buying behavior of the customer and challenges they encounter. Finally, the firm should use the findings of the research to improve service delivery and make anticipated changes (Sun and Yearwood 2014).

nMarket Positioning

nMarketing positioning is establishing the brand image in customers mind. In addition, it entails enhancing the perception of customers after selecting the services of a given company. Furthermore, it involves understanding the weaknesses of the competitors (West, Ford and Ibrahim 2013).

nCrown Fine Art is continuously positioning its brands through external and internal initiatives aiming to promote its products. Positioning is very important in Crown Group because there is increasing competitive conditions in the market due to changing preferences of customers, government policies and economic factors. Crown Fine Art is continuously positioning its businesses in order to optimize its opportunities in potential and existing markets (Crown Fine Art 2015). According Goyat (2011), positioning is important for business because it connects brands to corporate identity. The identity is linked to the mind of the target customers as well as stakeholders as compared to competitors (Goyat 2011). Therefore, positioning play an important role because it different Crown Fine Art products from their competitors (Crown Fine Art 2015).

nStrategic marketing communications play an important role because it helps to facilitate change, provide stakeholders and promotes firms sales (West, Ford and Ibrahim 2013).

nCultural Offerings

nCrown Fine Art provides services through segments such as storage, exhibition logistics, consultancy, packing and crating, shipping, staffing solutions and conservation (Crown Fine Art 2015). The organization conducts it businesses in more than 60 countries across the world where it deals with storage, logistics, and transportation services. In major art centres across the world, the firm provides expert care and assistance for precious items. Crown Fine Art also assists artists when they need installations, exhibitions, designing crating and packing. For instance, through exhibition logistics, it offers services in transporting and packing of precious fine art products to nearly all countries in the world (Crown Fine Art 2015). Crown Fine Art have quality facilities which meet the expected standards for museum customers in order to provide long or short-term storage of art items and works of cultural heritage (Crown Fine Art 2015).

nIt also offers services dealing management of projects particularly in exhibitions. In this regard, it provides technical assistance in museums when dealing with artwork handling. Similarly, the firm provide services such as permanent and temporary dismantling or installation of an exhibition. For instance, the firm was actively involved in installation of more than thirty sculptures from Africa to Netherlands in outdoors and museums (Crown Fine Art 2015).

nIt also uses its trucks to convey valuable arts products from one point to another. The management also provide convenient way in handling artworks when travelling by air and during loading (Crown Fine Art 2015). For instance, the firm was involved in transportation of sculpture, paintings and installation from Germany to Brazil.

nMost importantly, Crown Fine Art provides consultancy services to museum community. The fine art experts share information on appropriate building, preservation, special handling, packing, and conservation and collection management. Crown Fine Art also offers exhibitions logistics for different artworks (Crown Fine Art 2015). Execution and planning is more effective because the firm coordinates specialists in the original country to the destinations. It offers services such as delicate unpacking, careful collection and skilled packing of valuable artworks (Crown Fine Art 2015).

nPricing

nCrown Fine Art uses value-based pricing in all its services and products. In this case, the firm sets its prices based on the potential value the service or product is likely to benefit its consumers (Crown Fine Art 2015). The firm does not charge prices based on cost of production. In most cases, the firm assesses the value its services or products will provide to its consumers. Hoyer and MacInnis (2010) argue that value-based pricing should be applied to firm producing artwork. Issues of cultural significance also determine this type of pricing (Hoyer and MacInnis 2010).

nCommunicationCrown Fine Art has developed effective communication in Crown Network. The firm has streamlined communication in order to facilitate shared values and working practices. Effective communication helps the business to explain its services and products to their customers (Young 2011). Therefore, communication enables the firm to accomplish its goals. Most importantly, effective communication helps Crown Fine Art to establish proper working relationship between employees and management that promote efficiency and morale. According to Dibb (2010) communication play a role in increasing sales and open up business to its audiences or customers (Dibb 2010).

nChannels

nCrown Fine Art acts as a channel because it delivers the artwork from the source to the end-user. According to Young (2011), channels are different from intermediaries because the latter buys and sell the artwork. Therefore, Crown Fine Art does not work as brokers or agents who buy products from producers. Instead, the firm provide shipping services of artwork from one point to another (Young 2011). Similarly, it also works as a channel partner because it provides consultancy services to museums, gallery and auction houses. Channel partnership is important because it help to distribute certain products (Hoyer and MacInnis 2010).

nIntegrative Analysis

nSWOT Analysis

nSWOT analysis is an essential technique that is used in business to know the Strengths, Weaknesses, Opportunities and Threats it faces. It helps to promote sustainability in business. It also helps the business to identify opportunities and exploit them. Similarly, after knowing the business weaknesses, the business can eradicate threats. Moreover, strengths and weakness are internal factors while threats and opportunities are external factors (Yuece 2012). Crown Fine Art has a variety of strengths because it provides exhibition logistics, consultancy and storage of artworks. In this regard, this means that it can attract different customers in fine art who need these services. It can use this to increase sales. Weakness in this firm is it does not own some aircraft and sea vessels, which may deal the delivery of artwork to some destinations. Crown Fine Art can take advantage of many business opportunities. For instance, advancement of technology can help the firm to identify customers and market its products. There are also changes in population profile with many people needing fine art products. Services offered by this firm open up more business opportunities due to increasing demands. Crown Fine Art also faces a number of threats. For instance, government regulations sometimes affect the importation or exportation of fine art products. In addition, economic crisis reduces the number of sales in the firm (Crown Fine Art 2015).

nKey Issues and Implications

nCultural marketing strategies enable the firm to establish marketing communications, which promote development of relevant and personalized messages for various customers. According to Nykiel (2007), cultural marketing strategies help a business to deliver crucial messages to commercially viable customers (Nykiel 2007). The strategies also enable the firm to concentrate on commercial effectiveness. Crown Fine Art should use both environmental and integrative analysis to increase sustainability. In addition, effective communication should also be used to help the business to explain its services and products to their customers. Similarly, the firm should use value-based pricing in order to compete with its competitors (Dibb 2010).

nConclusion

nAn organization must use efficient business strategies in order to remain competitive. Some of these strategies include marketing segmentation, targeting and positioning. Crown Fine Art is an organization that provides a wide range of activities in consultation, exhibition logistics, storage and staffing solution with regard to fine arts. Therefore, the firm play a major role in development of culture across the globe (Young 2011).

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nReferencesCrown Fine Art, 2015. About Crown | Crown Fine Art. [online] Crownfineart.com. Available from: https://www.crownfineart.com/en-us/page/about-crown [Accessed 6 Jan. 2016].

nCrown Fine Art, 2015. Art Transportation, Art Shipping, Art Packing, Exhibit Coordinator by Crown Fine Art | Crown Fine Art. [online] Crownfineart.com. Available from: https://www.crownfineart.com/ [Accessed 4 Jan. 2016].

nCrown Fine Art, 2015. What we can do for you | Crown Fine Art. [online] Crownfineart.com. Available from: https://www.crownfineart.com/en-us/page/what-we-can-do-for-you [Accessed 4 Jan. 2016].

nDibb, S., 2010. Market Segmentation Success–Making it Happen!. Strategic Direction, 26(9).

nGoyat, S., 2011. The basis of market segmentation: a critical review of literature. European Journal of Business and Management, 3(9), pp.45-54.

nHassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand positioning strategies. Journal of Consumer marketing, 29(5), pp.344-356.

nHoyer, W. and MacInnis, D., 2010. Consumer behavior. Australia: South-Western Cengage Learning.

nKotler, P. and Armstrong, G., 2010. Principles of marketing. Pearson Education.

nMuhamad, R., Melewar, T.C. and Faridah Syed Alwi, S., 2012. Segmentation and brand positioning for Islamic financial services. European Journal of Marketing, 46(7/8), pp.900-921.

nNykiel, R., 2007. Handbook of marketing research methodologies for hospitality and tourism. New York: Haworth Hospitality & Tourism Press.

nSun, Z. and Yearwood, J., 2014. Handbook of research on demand-driven web services. Hershey, PA: Information Science Reference.

nWest, D., Ford, J. and Ibrahim, E., 2013. Strategic marketing. London: Routledge Publishers.

nYoung, L., 2011. The marketer’s handbook. Chichester, West Sussex, U.K: Wiley.

nYuece, I., 2012. SWOT Analysis of McDonald’s and Derivation of Appropriate Strategies. München: GRIN Verlag GmbH.

nZimmerman, A. and Blythe, J., 2013. Business to business marketing management. New York: Routledge.